End to end business processes - the inseparable future of auditability and business transformation

1. End to end business processes - the inseparable future of auditability and business transformation Welcome and introduction (speaker credentials and role at BTA) The Department of Defense is facing many challenges in this new century. The way we do business – which has been many organizations acting as standalone entities – is no longer effective or efficient. The QDR emphasized that defense business operations must be “agile, flexible, and horizontally integrated to sustain our Nation’s preeminent military power within constrained resource limits.” This presentation highlights how defense business operations are transforming to meet these needs and explains the role of the Business Transformation Agency in spearheading the transition. [QDR = Quadrennial Defense Review] Welcome and introduction (speaker credentials and role at BTA) The Department of Defense is facing many challenges in this new century. The way we do business – which has been many organizations acting as standalone entities – is no longer effective or efficient. The QDR emphasized that defense business operations must be “agile, flexible, and horizontally integrated to sustain our Nation’s preeminent military power within constrained resource limits.” This presentation highlights how defense business operations are transforming to meet these needs and explains the role of the Business Transformation Agency in spearheading the transition. [QDR = Quadrennial Defense Review]

2. The Issue Financial transactions are intrinsically tied to business transactions. DoD spends most of its money on Acquisition Logistics and supply chain Human resources There is no stand alone financial transaction. To achieve auditability, financial and supporting data Need to be captured at the source Tracked end-to-end Tracking data end-to-end is the root-cause solution to symptoms such as lack of Financial transparency, including funds control and detail-backed financial reporting Matched disbursements Cash accountability Point solutions to capture and resolve financial data after the business transaction, have failed

3. The issue (contd) A business system comprises of People Process Technology The technology implementation needs to be driven by a business driven roadmap System implementation per se will not achieve auditability We need an intuitive, business driven framework which ties SMP, auditability, BEA, and financial systems implementation

5. Probability multiplies

6. Linkage of Strategic Goals to Business Processesand DoD Business Systems

8. Case-in-Point – Procure to Pay

9. The Roadmap The critical end-to-end processes to start with are Budget to Report Procure to Pay Order to Cash Acquire to retire Hire to retire Mapping the following for level 1 and 2 for key segments of these processes will have high impact, and is achievable: Performance metric minimum standard data Controls Make these processes the core of implementation-oriented BEA, as well as the FIPs

10. End-to-End Business Flows

11. End to end processes and FIAR The ERPs are targeted as vehicle for FIAR in the long term Make the end-to-end process models the driver The end to end processes provide foundation for SBR based FIAR plan Matrix view of end-to-end processes to SBR line items One to many mapping The FIPs should use end to end process models to link functionality to systems

12. E2E Business Processes support SBR

13. Because of technology upgrades, DOD will be in a continuous cycle of implementation End-to-end process modeling and streamlining, and not systems implementation per se, main objective Target Enviroment and ERPs Integrating business process is not by function or domain (FM, P&R, Acquisition, Real Property, Budget...etc) but is by end-2-end process like B2R, P2P, A2R, etc. Emphasize on the standardization of Data…in order for the different systems to talk to each other (without building crosswalks) the core setups and master data has to be the same Forget my system vs. your system and forget overnight batch processes…all the information is stored in a common relational database…data is entered only once and accessed in real time by all authorized users anywhere in the world.Integrating business process is not by function or domain (FM, P&R, Acquisition, Real Property, Budget...etc) but is by end-2-end process like B2R, P2P, A2R, etc. Emphasize on the standardization of Data…in order for the different systems to talk to each other (without building crosswalks) the core setups and master data has to be the same Forget my system vs. your system and forget overnight batch processes…all the information is stored in a common relational database…data is entered only once and accessed in real time by all authorized users anywhere in the world.

15. Recommendations Make the end to end processes the driver of BEA Drive process model for key end-to-end processes Performance metrics Minimum standard data Controls  Use end-to-end processes to link SMP, BEA, FIAR, and the FIP