The U.S. Army has launched a new strategy to streamline its defense business systems (DBS) that aims to cut costs and boost efficiency, according to a recent directive from Chief Information Officer Leonel Garciga.
The July 31 memo offers classification guidance to determine which systems qualify as DBS, establish updated standards to improve governance, ensure legal compliance, and align with Department of Defense (DoD) enterprise goals to enhance “mission readiness and operational efficiency,” Garciga wrote.
The directive is intended to give the Army a more structured approach to managing its business technologies by enhancing oversight and ensuring that systems critical to operations are properly categorized and certified.
DBS are defined as information systems used to support the Army’s core business functions such as financial management, logistics, contracting, human resources, and readiness. These systems are intended to enhance data-driven decision-making and operational agility. They must comply with DoD requirements for business process reengineering, integration into the defense enterprise architecture, traceable expenditure management, and prioritization of commercial technology solutions.
Under the new guidance, DBS identification will depend on whether a system integrates both front- and back-end technologies to support Army business functions.
“Systems or technologies that do not meet the Information System definition are excluded from consideration as a DBS,” Garciga wrote, citing examples such as static websites or decision aids that simply present existing data.
Additionally, the memo distinguishes between DBS and defense business applications (DB Apps). While both can be authoritative data sources, DB Apps – typically developed on low-code or no-code platforms – are not classified as DBS and must be registered in Army oversight systems such as the Army Portfolio Management Solution and Army Data Catalog.
Garciga also wrote that certification requirements for DBS are based on cost and management structure. Systems costing $25 million or more will require CIO approval, while lower-cost systems are certified by the relevant portfolio manager unless marked as special interest, which also falls to the CIO.
“While not all DBS are authoritative sources, the Chief Data and Analytics Officer (CDAO) (or appointed Data Stewards) can officially designate an authoritative source for specific data domains,” Garciga further explains.
The CIO has final say in any classification disputes.