DIGITALIZATION OF MILITARY PERSONNEL PAY AND ALLOWANCES: IMPLEMENTING AN ERP SYSTEM FOR ENHANCED ACCOUNTABILITY AND ACCURACY

Abstract

This scientific-analytical article investigates the strategic rationale for implementing an Enterprise Resource Planning (ERP) system to manage military personnel compensation within the defense sector of the Republic of Uzbekistan. The primary goal of this study is to analyze the benefits of digitizing military compensation processes and to propose a phased implementation mechanism for an ERP system tailored to the specific context of Uzbekistan. The analysis addresses critical issues of transparency and accuracy inherent in existing administrative processes. The research is grounded in the normative legal framework of the Republic of Uzbekistan, including the strategic roadmap "Uzbekistan – 2030" [1]. By examining international experiences, such as the U.S. Army's Integrated Personnel and Pay System – Army (IPPS-A) and the UK's Joint Personnel Administration (JPA) [2], the study develops practical recommendations, phased mechanisms, and evaluation criteria for successful ERP adoption. Implementing a centralized ERP solution is identified as the single most effective approach to centralize data, automate complex calculations, and ensure a complete audit trail for financial transactions, thereby enhancing accountability and minimizing fraud risk within the defense budget. This strategic investment is critical not only for operational efficiency but also for strengthening social guarantees for military service members and their families.