BTA Established to Advance Defense Business Transformation

1. The BTA: Advancing Defense Business TransformationPresented by:David FisherDirector, Business Transformation Agency

2. BTA Established to Advance Defense Business Transformation On October 7, 2005 the Deputy Secretary of Defense signed a memorandum establishing the Defense Business Transformation Agency (BTA). The Agency is specifically responsible as a corporate- level service organization for the DoD, accountable for successful definition and execution of DoD-wide business improvement initiatives and system investments. The BTA Mission is: to guide transformation of business operations throughout the Department of Defense and to deliver Enterprise-level capabilities that align to Warfighter needs.

3. A C Q U I S I T I O N R E S O U R C E S L O G I S T I C S F I N A N C E Combatant Commands H U M A N What is the “enterprise”?

4. Where BTA Fits in OSD Secretaryof Defense DBSMC Deputy Secretaryof Defense DBSMC Chair NII PA&E Other Defense Agencies USD P&R PSA – HRM USD Comptroller PSA – FM USD AT&L DBSMC Co-Chair PSA – MSSM/WSLM RP&ILM MilitaryDepartments Joint Chiefsof Staff DUSDBusinessTransformation BusinessTransformationAgency

5. Approach to Business Transformation A Cohesive and Responsive Defense Business Mission Area with Optimized Resources, Processes, and Information Management Alignment Delivery

6. Roles and Responsibilities • Stakeholder Relationships - PSAs, Components, External DoD • Enterprise Initiative Oversight • BEA and ETP Support • Component Program Implementation • DBSAE Program Implementation Support • Investment Management Support • Business Enterprise Architecture (BEA) • Enterprise Transition Plan (ETP) • Performance Management & Reporting • ERP Systems • Vendor Relationships • Stakeholder Education • Business Capability Lifecycle (BCL) • External Liaison • Integration Assessment Planning • Communications • Comptroller • Contracting • Facilities • Human Resources Services • IT • Security • PEO: Finance • PEO: Sourcing • PEO: Human Resources • CoCOM Engagement • Economic Roundtable • Warfighter Initiatives

7. Tracking Progress 7

8. Tracking Progress: Enterprise & Component FY07 Milestone Summary(as of September 2007) Total 227 of 282 (81%) of All Milestones Met (Excluding Deletes) Total 227 of 383 (59%) of All Milestones Met (Including Deletes)

9. Key Elements of Change Strategic direction for enterprise-wide decision making in support of overall organizational objectives People’s attitudes and skills as well as organizational dynamics Culture Strategy Alignment Information Process Operating methods, practices, policies and procedures Accurate, reliable, timely data Technology Information systems to enable transformation

10. Process and Information Capability Maturity and Alignment Level 3 Level 4 Level 2 Level 5 Level 1 Strategy Culture Process Information Technology

11. Key Elements of Change Strategic direction for enterprise-wide decision making in support of overall organizational objectives People’s attitudes and skills as well as organizational dynamics Culture Strategy Alignment Information Process Operating methods, practices, policies and procedures Accurate, reliable, timely data Technology Information systems to enable transformation

12. Progress to Date • DBSMC • 4 Strategic Objectives • 6 Business Enterprise Priorities • 5 Investment Review Boards • Enterprise Transition Plan • Business Transformation Agency • Tiered Accountability • 5 End-to-End Core Business Missions • Enhanced focus on Warfighter needs • Need to show tangible production deliverables within 18 months of contract award Culture Strategy Alignment Information Process • Adopted Lean Six Sigma as OSD standard for CPI • Investment review • Business Capability Lifecycle (+ ERAM) • Enterprise Priorities focused on “visibility” • Standards (SFIS, RPIR) • Systems (BEIS, RPAD, DAMIR) Technology • Enterprise (DTS, WAWF, BEIS, DIMHRS, DAI) • Component (ERPs)

13. BTA Focus Areas for FY08 • Implement DIMHRS • Establish BCL as the Accepted Enterprise Approach for Business System Oversight • Enterprise Standards • Process, Data (Common Vocabularies), Integration, and Implementation • Support Implementation of ERPs across DoD • Institutionalize Deployed Warfighter Process and System Improvements

14. www.defenselink.mil/dbt Defense Business Transformation www.defenselink.mil/bta Business Transformation Agency www.defenselink.mil/tfbso Task Force to Improve Business and Stability Operations -- Iraq www.pentagon.mil/dbt/dbaf Defense Business Agility Forum Defense Business Transformation Web Sites 14

15. Back-Up 15

16. Progress to Date: Strategy • Established the Defense Business Systems Management Committee (DBSMC) as the governing body to oversee all aspects of business transformation across the DoD • Established strategic objectives for the business mission area • Support the Joint Warfighting Capability of the DoD • Enable Rapid Access to Information for Strategic Decisions • Reduce the Cost of Defense Business Operations • Improve Financial Stewardship to the American People • Established six business enterprise priorities • Acquisition Visibility, Material Visibility, Personnel Visibility, Financial Visibility, Common Supplier Engagement, and Real Property Accountability • Established five Investment Review Boards • Began utilizing the concept of Tiered Accountability • Began publishing an Enterprise Transition Plan twice per year • Established a new agency specifically focused on enterprise-level business transformation (the BTA) • Established a Lean Six Sigma program office at the OSD level • Adopted the concept that new business cases for business systems must show tangible production deliverables within 18 months of contract award

17. Progress to Date: Culture • Began to align systems, processes, and invest review around five core business mission areas • Human Resources Management • Weapon System Lifecycle Management • Materiel Supply & Service Management • Real Property Installations Lifecycle Management • Financial Management • Enhanced focus on Warfighter needs, in particular in a deployed environment • Examples: • Joint Contingency Contracting System • Direct COCOM engagement • Adopted the concept that new business cases for business systems must show tangible production deliverables within 18 months of contract award

18. Progress to Date: Process • Adopted Lean Six Sigma as the enterprise standard for continuous process improvement within OSD (already well-embedded in the Services) • Established Investment Review processes for business systems investments over $1M for compliance with enterprise architecture requirements • Establishing the Business Capability Lifecycle set of processes to merge the acquisition oversight and architecture compliance oversight within the single construct of the Investment Review Boards for MAIS-level business systems • Includes new processes for system reviews based on fundamental areas of risk (ERAM: Enterprise Risk Assessment Methodology)

19. Progress to Date: Information • Many of the established Business Enterprise Priorities are focused specifically on information visibility • Examples of standards that have been established include: • Standard Financial Information Structure (SFIS) • Real Property Information Requirements (RPIR) • Activities have included: • Defining the data standards and associated business rules • Depicting those standards in the enterprise architecture • Rendering that information in a meaningful/user-friendly way to the Components • Assisting the Components in understanding the requirements at a detailed level • Support the implementation of these requirements in systems • Monitor progress for the implementation of these requirements through the IRB processes • Deployed enterprise information systems that provide standards-based, aggregated data as information for decision makers • Examples include: • Business Enterprise Information Services (BEIS) • Real Property Assets Database (RPAD) • Defense Acquisition Management Information Retrieval (DAMIR)

20. Progress to Date: TechnologyEnterprise Level • Continued to execute DIMHRS program to achieve IOC in October ‘08 for the Army and February ‘09 for the Air Force. • Increased the vouchers processed in DTS by 78% over last year and released the Reservation Refresh module which enhanced the user experience for the book-as-you-go process. • WAWF- defined standard data transactions for passing shipment, acceptance, and accounts payable data to emerging interface partners, further accelerating deployment of ERP systems in the target environment while reducing implementation costs. • Deployed DoD EMALL Version 7.1, providing improved funds checking capabilities and deployed version 8.1 which streamlined the process for users to track status of shipments. • Deployed SPOT version 6.0 which improved the accuracy, timeliness, validity and integrity of contractor deployee data to Combatant Commanders. • With LMD, implemented a single integration point to access logistics master data sources for item, vendor and customer information, two months early. • Achieved FOC for RPUID’s Site Registry and IOC for the Asset Registry. • Implemented SFIS compliant Financial Reporting in BEIS for 5 of 9 reporting entities in Q3 FY07 (Air Force & Marine Corps General Funds and Air Force, Marine Corps, and Navy Working Capital Funds)

21. DoD Planned Spending on ERPs (Source: September 2007 Enterprise Transition Plan)

22. DoD ERP To-Be Landscape • GFEBS: Single instance SAP financial management solution (GF); FOC: FY10 • LMP: Single instance SAP financials and logistics solution for depots (WCF) • GCSS-A: Single instance SAP logistics solution for Materiel Supply and Service Management; FOC: FY14 • Navy ERP: Single instance SAP logistics and financials solution (GF and WCF); FOC: FY13 • GCSS-MC: Single instance Oracle logistics solution; FOC: FY08 • DEAMS-AF: Single instance Oracle financial management solution (GF and WCF); FOC: FY10 • ECSS: Single instance Oracle logistics solution; FOC: FY13 • BSM: Single instance SAP logistics and financials solution (primarily WCF with small GF element); FOC: FY07 • BSM Energy: Integrated Material Management solution for DLA’s fuels business. • DIMHRS: Single instance Oracle (PeopleSoft) integrated military personnel and pay solution; FOC: FY09 • DAI: Financial management solution for all Defense Agencies and Field Activities (except DLA) • DEAMS: Single instance Oracle financial management solution; FOC: FY10 GF = General Fund; WCF = Working Capital Fund