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Transforming the Enterprise Using a Systems Approach

Transforming the Enterprise Using a Systems Approach. James N Martin Systems Engineering Conference SEDC 2012 at GMU Washington, DC 16 May 2012. Topics. What is an Enterprise? What does an Enterprise do? How does the Enterprise do this? How can SE help the Enterprise improve?.

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Transforming the Enterprise Using a Systems Approach

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  1. Transforming the Enterprise Using a Systems Approach James N Martin Systems Engineering Conference SEDC 2012 at GMU Washington, DC 16 May 2012

  2. Topics • What is an Enterprise? • What does an Enterprise do? • How does the Enterprise do this? • How can SE help the Enterprise improve?

  3. What is an Enterprise? • A bold, new business venture • Everything required to accomplish a large, complex undertaking

  4. Organizations Participating in an Enterprise Enterprise Participate in Employs Organization Organization Organization Organization Consists of Manages People Resources Businesses Projects Teams

  5. Example Enterprise – System Developer Enterprise Participate in Prime Contractor Sub-contractors Suppliers Distributors

  6. Example Enterprise – Air Transportation Enterprise Participate in Airplane Builder Airline Operator Airport Operators Flight Safety Authority

  7. Organizational Complexity Enterprise Participate in Organization Organization Organization Organization Enterprise Enterprise Enterprise Organization

  8. Managing Resources Enterprise Participate in Organization Organization Organization Organization Manages Consists of Resources Businesses Knowledge People Other Assets Projects • Explicit Knowledge • Books & Papers • Training Material, etc… • Implicit Knowledge • Lessons Learned • Mental Models, etc… Teams

  9. People & Other Assets Enterprise Participate in Organization Organization Organization Organization Manages Consists of Resources Businesses Knowledge People Other Assets Projects • Managers & Executives • Engineers & Technicians • Business & Support Staff • Facilities & Infrastructure • Operations & Maintenance • Financial Capital & Credits • Equipment, Raw Materials & Finished Goods • Facilities, Land & Leases • Intellectual Property, Patents & Trade Secrets • Reputation & Goodwill Teams • Reputation & Goodwill !!

  10. Consumption & Production Enterprise Participate in Organization Organization Organization Organization Manages Consists of Resources Businesses Knowledge People Other Assets Consumes & Produces Projects Stuff Money Time Energy Material Teams

  11. Enterprise Management  Planning, Organization, Assessment & Control Enterprise Participate in Organization Organization Organization Organization Manages Consists of Resources Businesses Knowledge People Other Assets Projects Consumes & Produces Stuff Teams Money Time Energy Material

  12. Creating Value Value Enterprise Creates Participate in Organization Organization Organization Organization Manages Consists of Resources Businesses Knowledge People Other Assets Projects Consumes & Produces Stuff Teams Money Time Energy Material

  13. What Does an Enterprise Do? • The Enterprise uses available Resources to accomplish its Goals & Objectives • These Resources consist of: • People, Policies, Practices & Platforms • Money, Energy, Time & Material • Equipment, Facilities, Infrastructure & Systems

  14. Individual Competence & Organizational Capability Enterprise Participate in Employs Organization Organization Organization Organization Consists of Manages People Businesses Resources Projects Organizational Capability Individual Competence Teams

  15. System & Operational Capabilities Enterprise Participate in Employs Organization Organization Organization Organization Manages Develops People Systems Resources Operational Capability System Capability

  16. 3 Types of Capability Value Enterprise Creates Participate in Employs Organization Organization Organization Organization Develops Manages People Systems Resources Operational Capability System Capability Organizational Capability

  17. DRIVERS OUTCOMES INPUTS OUTPUTS Systems vs. Enterprises Enterprise System

  18. System Architecture is Like Blueprints for a Building

  19. Enterprise Architecture is Like Urban Planning

  20. An Enterprise Performs Missions, Each with their Own Objectives Enterprise Mission System Systems are Used to Perform these Missions

  21. Users Missions Capabilities Tasks System Functions Systems System Elements Operational Capabilities  System Functions Value Cost = Time + Money

  22. Benefits Users Users Missions Missions Missions Task Outcomes Capabilities Capabilities Capabilities Capabilities Tasks Tasks Tasks Tasks System Functions System Functions System Functions System Functions Systems Systems Systems Systems The “Value Chain” Each System By Itself Has No Value ! !

  23. Benefits Users Sites Operations Office Missions Operators Task Outcomes Capabilities Operational Activities Operational Requirements Tasks MOE’s System Requirements Programs System Functions MOP’s Systems Acquisition Office Projects System Elements Acquisition Elements Architectural Effectivities …and All that Other “Messy” Stuff Domains User Operator System Acquisition

  24. Architecture Modeling & Analysis Enterprise Architecture Mission Architecture System Architecture

  25. Overlapping Architecture Models Enterprise Mission Mission Mission System System System System System System System

  26. System Design Requirements & Opportunities A Concepts (System) Design Requirements High Level Design A Lower Level Design “System” Architecture Deals with Requirements & Design OUTCOMES DRIVERS The most common use of architecture (for developers). A means for transforming requirements into design, and high-level design into lower-level design.

  27. System Design Requirements & Opportunities A Concepts (System) Design Requirements High Level Design A Lower Level Design Where do Requirements Come From ?? OUTCOMES DRIVERS The most common use of architecture (for developers). A means for transforming requirements into design, and high-level design into lower-level design.

  28. Mission Level Enterprise Architecture Mission Architecture System Architecture

  29. Capabilities Mission Effects & Scenarios A Concepts (Operational) Functional & Performance Reqts Capabilities & Operational Concepts A Concepts (Enabling) “Mission” Architecture Deals with Capabilities & Operating Concepts OUTCOMES DRIVERS A very common use of architecture (for operators). A means for transforming operational concepts into functional requirements and system concepts.

  30. Enterprise Level Enterprise Architecture Mission Architecture System Architecture

  31. Business Plans / Strategies Enterprise Vision & Objectives A Concepts (Business & Mission) Missions & Scenarios Business Plans & Mission Needs A Effects & Capabilities Enterprise Architecture Deals with “Getting to the Future” & the “Big Picture” OUTCOMES DRIVERS A growing use of architecture (for enterprises). A means for transforming enterprise objectives into business plans and mission needs.

  32. OUTCOMES DRIVERS Business Plans / Strategies Enterprise Vision & Objectives A Concepts (Business & Mission) Missions & Scenarios Business Plans & Mission Needs A Effects & Capabilities Capabilities Mission Effects & Scenarios A Concepts (Operational) Functional & Performance Reqts Capabilities & Operational Concepts A Concepts (Enabling) System Design Requirements & Opportunities A Concepts (System) Design Requirements High Level Design A Lower Level Design Various Architecting Situations

  33. OUTCOMES DRIVERS Business Plans / Strategies Enterprise Vision & Objectives A Concepts (Business & Mission) Missions & Scenarios Business Plans & Mission Needs A Effects & Capabilities Capabilities Mission Effects & Scenarios A Concepts (Operational) Functional & Performance Reqts Capabilities & Operational Concepts A Concepts (Enabling) System Design Requirements & Opportunities A Concepts (System) Design Requirements High Level Design A Lower Level Design Outcomes Become Drivers for Next Level Down

  34. DRIVERS OUTCOMES INPUTS OUTPUTS Driving the Enterprise to Achieve Maximum Value for Stakeholders Enterprise System

  35. Enterprise State Changes are Achieved Through Work Process Activities • Drivers • Demand • Competition • Laws • Regulations • People • Technology • Investment • Revenues Enterprise State • Outcomes • Products • Services • Revenues • Earnings • Share Price • Market Share • Jobs • Innovation Work Processes

  36. Two Types of Architecture Enterprise Architectures Solution Architectures System Solutions Hardware Software People Non-System Solutions Process Policy Education & Training Organizations Facilities utilize these • Strategic Goals • Capabilities • Segments • Mission Threads

  37. Metrics & Figures of Merit Performance Management Mission Planning Strategic Planning Business Process & Info Mgmt Resource Allocation & Budgeting Program Mgmt Project Mgmt Mission, Goals & Priorities Objectives & Strategies People, Policies, Practices, Money, Platforms, Energy, Facilities & Infra-structure Portfolio Management Systems of Systems Enterprise Systems Engineering & Management

  38. Enterprise Portfolio Management Metrics & Figures of Merit Performance Management Mission Planning Strategic Planning Business Process & Info Mgmt Resource Allocation & Budgeting Program Mgmt Project Mgmt Mission, Goals & Priorities Objectives & Strategies Money, People, Facilities, & “Bandwidth” Portfolio Management Systems of Systems Individual Systems Parts of Systems Platforms & Facilities Land & Rights of Way Intellectual Property

  39. Enterprise SE vs Product SE Enterprise SE Product SE Metrics & Figures of Merit Performance Management Mission Planning Strategic Planning Business Process & Info Mgmt Resource Allocation & Budgeting Program Mgmt Project Mgmt Mission, Goals & Priorities Objectives & Strategies Money, People, Facilities, & “Bandwidth” Portfolio Management Systems of Systems Individual Systems Parts of Systems Platforms & Facilities Land & Rights of Way Intellectual Property

  40. Achieving the Proper Balance Using Enterprise SE • Compromise & Trade-offs • Balance between Complexity & Order • Balance between Effectiveness & Efficiency • Balance between Enterprise Goals & Project Objectives • Balancing Stakeholder Concerns • Predictability & Robustness • Performance & Stability • Security & Ease of Use • Cost & Schedule

  41. Business & SE Process Areas Enterprise Management Vision Goals ConflictMgt Roles & Resp Reqts Dev & Mgmt Risk Mgmt Config Mgmt Tech Project Plng Program Management Quality Assurance System Safety Integ Logistics Spt Traditional Systems Engineering Process Areas Traditional Business Process Areas Restructure The Enterprise Design Implement Transition Diagnostics Integrated Test EnterpriseAssessment

  42. Adding Enterprise SE Process Areas Enterprise Management Vision Goals ConflictMgt Roles & Resp Reqts Dev & Mgmt Risk Mgmt Config Mgmt Tech Project Plng Enterprise SE Strategic Technical Plan Enterprise Architecture Cap. Planning Analysis Technology Planning Quality Assurance System Safety Integ Logistics Spt Traditional Systems Engineering Process Areas Traditional Business Process Areas Restructure The Enterprise Process Improvement (CMMI) Design Implement Transition Diagnostics Integrated Test Evaluation & Assessment EnterpriseAssessment

  43. Enterprise-Level SE Processes • Strategic Technical Planning • Enterprise Architecture • Capabilities-Based Planning Analysis • Technology Planning • Enterprise Evaluation and Assessment

  44. Enterprise Systems Engineering Enterprise SE Product SE Metrics & Figures of Merit Performance Management Mission Planning Strategic Planning Business Process & Info Mgmt Resource Allocation & Budgeting Program Mgmt Project Mgmt Mission, Goals & Priorities Objectives & Strategies Money, People, Facilities, & “Bandwidth” Portfolio Management Systems of Systems Individual Systems Parts of Systems Platforms & Facilities Land & Rights of Way Intellectual Property

  45. Conclusions • Enterprise SE is different from Product SE • Deals with less tangible “things” • Different Knowledge & Skills • Different Tools & Methods • Traditional SE processes are not sufficient for Enterprise-level SE • Enterprise SE Practices • An emerging discipline • Needs expansion of Processes & Standards • Needs training & development of People & Teams • Needs understanding from Enterprise Managers that SE has something useful to contribute

  46. BACKUP

  47. Child Enterprises Enterprise X Parent Enterprise Enterprise A Enterprise Y Enterprise Z

  48. Child Enterprises Enterprise X Parent Enterprise Enterprise A Enterprise Y Enterprise Z

  49. Typical System of Systems Enterprise Span of Control Performance Management Mission Planning Strategic Planning Business Process & Info Mgmt Resource Allocation & Budgeting Program Mgmt Project Mgmt Portfolio Management Enterprise Governance as an Enabler to Manage Progress & Control Changes Enterprise Governance

  50. Performance Management Mission Planning Strategic Planning Business Process & Info Mgmt Resource Allocation & Budgeting Program Mgmt Project Mgmt Portfolio Management Enterprise Architecture Can Facilitate Understanding of Inter-Relationships & Consequences Enterprise Architecture Repository

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