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Mr. Prashant GaurDirector, Enterprise Integration

Business Transformation Agency

October 2008

DECA

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• DoD is the largest and most complex organization in the world

• DoD personnel are extremely well meaning and dedicated

• Change does happen at DoD

• DoD leads amongst federal agencies in multiple business issues

• The future of business transformation at DoD is strong

“As threats to the nation’s security become more diverse and challenging, it is imperative that the United States’defense business operations perform with greater precision, flexibility, and velocity to support today’s mobile joint forces ”

Gordon R. England

U.S. Deputy Secretary of Defense

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• For the past several decades, DoD’s business model has been configured to support a military dependent on large-scale weapons systems and prepared for sustained, predictable engagements

• A business model to respond rapidly to emerging situations and changing missions, which can change from global conflicts and disaster relief to diplomacy efforts, is required

• Quadrennial Defense Review: DoD must reshape the defense enterprise in ways that better support the warfighter and are appropriate for the threat environment

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Who are our people, what are their skills, where are they located?

Who are our industry partners and what is the state of our relationship

with them?

What assets are we providing to support the warfighter and where are

these assets deployed?

How are we investing our funds to best enable the warfighting mission?

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• Strong continuity of operations of the world’s largest and most critical organization

• Tiered accountability and flexibility

• Integration of roles of financial, logistics, and human resource communities

• Synthesis of roles of acquisition, IT, and functional communities

• Title 10

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Information systems to

enable transformation

People’s attitudes

and skills as well as

organizational

dynamics

Accurate, reliable,

timely data

Strategic direction for

enterprise-wide decision

making in support of

overall organizational

objectives

Operating methods,

practices, policies

and procedures

Strate

gy Culture

Pro

cess

Technology

Info

rmati

onAlignment

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Level 3Level 3 Level 4Level 4 Level 5Level 5Level 2Level 2Level 1Level 1

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Information systems to

enable transformation

People’s attitudes

and skills as well as

organizational

dynamics

Accurate, reliable,

timely data

Strategic direction for

enterprise-wide decision

making in support of

overall organizational

objectives

Operating methods,

practices, policies

and procedures

Strate

gy Culture

Pro

cess

Technology

Info

rmati

onAlignment

Purchase

Requisition

Purchase

Order

Goods

Receipt

Invoice

ReceiptExpenditure

The Purchase Order

can be created from

this Reference info:

PR

PR LineNumber

PR LineFunding ID

A Goods Receipt

needs


PO

PO LineNumber

PO LineFunding ID

An Invoice Receipt

needs


PO

PO LineNumber

PO LineFunding ID

An Expenditure

needs

this Ready to Pay File

Document Number

P U R C H A S E T O P A Y P R O C E S S

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Purchase

Requisition

Purchase

Order

Goods

Receipt

Invoice

ReceiptExpenditure

PR

PR LineNumber

PR LineFunding ID

Any ERP

Contract Writing

System

The VendorThe Vendor

PR

PR LineNumber

PR LineFunding ID

PIIN

CLIN

SLIN

Cross Reference TablePR/PR Line Number/PR Line Funding ID

PO/PO Line Number/PO Line Funding ID

PIIN/CLIN/SLIN

MOCAS System

Entitlement

APVM

(Prevalidation)

PPVM

(Prevalidation)

MATCH

From X-Ref

Ready

To

Pay

File

Obligation

Validation

Confirmation

Blocked

Invoice

Use x-Ref

Receiving

Activity

Material

PIIN-CLIN-SLIN

Receipt

Report

PIIN

CLIN

SLIN

Receipt

Validation

By PIIN

CLIN

SLIN

Receipt

Validation From X-Ref

Invoice

PIIN-CLIN-SLIN

Invoice

PIIN-CLIN-SLIN

Contract Info

PIIN-CLIN-SLIN

Invoice

PIIN-CLIN-SLIN

Invoice

PIIN-CLIN-SLIN

Disbursement

PIIN-CLIN-SLIN

Unblock

Invoice

PIIN-CLIN-SLIN

WAWF

WAWF

Disbursing

System

DisbursementWith Contract

Info Only

Treasury

EDA

MOCAS System

Contract Admin

Manual

Contract Info

PIIN-CLIN-SLINContract Info

PIIN-CLIN-SLIN

Contracting

Outside the

ERP

Goods Receipt

and Invoice

Receipt Outside

the ERP

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Percentage of Successful End To End Purchase To Pay Transactions

90.00%Disbursement Feedback to ERP90.00%Disbursing System to Treasury90.00%MOCAS to Disbursing System90.00%APVM to MOCAS - Validation

90.00%Accounting System to APVM90.00%APVM to Cross Reference Table90.00%WAWF to APVM - PreValidation90.00%WAWF to PPVM - PreValidation90.00%WAWF to MOCAS - Invoice

90.00%Shipping Notice Mapping to Cross Reference Table90.00%WAWF - Shipping Notice to ERP90.00%WAWF to MOCAS - Receipt90.00%EDA to MOCAS90.00%SPS to EDA

90.00%SPS to Vendor90.00%Purchase Order to Cross Reference Table90.00%SPS to Cross Reference Table90.00%SPS to Purchase Order

90.00%Purchase Requisition to Cross Reference Table90.00%Purchase Requisition to SPS

Individual Step Success Rate

Possible Point of Failure in End To End Purchase to Pay Process

12%

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Use end-to-end processes for design,

implementation, and testing:

• Procure to Pay

• Acquire to Retire

• Budget to Report

• Hire to Retire

• Order to Cash

• Plan to Fulfill

• Concept to Product (R&D)

• Service Request to Resolution

• Servicing to Satisfaction

• Cost Accounting

• Proposal to Reward (Grants)

• Market to Prospect

• Prospect to Order

• Deployment to Retrograde

Initial Set

Extended E2E

Set

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Level 1 Process

AssetDisposition

Asset Maintenance

and Improvements

MonitorAssets

Placementinto Service

Procureto Pay

Acquire to Retire

Investment Planning & Life-Cycle

Management

336-14

RecordCommitment

RecordCommitment

RecordObligation

RecordObligation

RecordPayable

RecordPayable

Post PaymentTo WIP

Post PaymentTo WIP

Level 2 Process

Acquisition Logistics Financial Management

Disbursement (Entitlement)

Process Invoice and Matching

Receipt and Acceptance

PurchasingContractingSourcingRequisitioning

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• Establishing Priorities – Support the Defense Business System Management Committee (DBSMC) and Principal Staff Assistants (PSAs) in their efforts to define Department-wide business transformation goals and objectives.

• Enterprise Planning and Investment - Assemble and integrate the Business Enterprise Architecture (BEA) and Enterprise TransitionPlan (ETP). Support the Investment Review Board / certification process which optimizes investments and ensures statutory compliance. Institutionalize a business capability life-cycle (BCL) as different from acquisition of major systems, as well as an effective, efficient, interview based Enterprise Risk Assessment Methodology (ERAM)

• Tactical Business Support – Ensure that business priorities are aligned with warfighter needs

• Focus on Implementation – An implementation driven mind-set makes BTA unique and effective

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• BTA has responsibility for development and implementation of DoD-wide enterprise programs under the Defense Business Systems Executive (DBSAE). These include, for example -

• Financial : BEIS, IGT/IVAN

• Common Supplier Engagement : SPS, WAWF

• Human Resources : DMHRS, DTS

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• BTA works actively with the services for the success of enterprise programs, as well as the integration of component and DoD programs

• Direct involvement with the services and the programs• Expertise

• Domain Integration • Financial, logistics, HR

• Acquisition, IT, financial

• Systems and Technical Integration• Service Oriented Architecture

• Center of Excellence

• Best practices for ERP / SOA / BI implementation• Governance

• Data standards

• BCL and pre-ERAM support

• Active support to rationalize the enterprise

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• Data standards key to integrating heterogeneous enterprises• Financial : SFIS, including chart of accounts

• Native

• Procurement

• Logistics

• Characteristics of data standards• Governance and authoritative sources

• Minimum essential

• Native

• Static, master data information

• Implementation-oriented

• Governance and data Standards key to all major systems initiatives• ERP

• BI

• SOA

$��'��.%,BCL implements tiered accountability by requiring functional sponsors to rigorously define problems before beginning a solution analysis, and institutionalizes enterprise management of business capabilities by consolidating requirements, acquisition, and compliance to BEA oversight into a single governance process.

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Outcomes

Business Case Validation,

Assess Risk & Monitor Metrics

Conduct

Solution

Analysis*

Recommend Solution

Package**

Program Definition

Guidance, Assumptions

Priority

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Business Capability Definition:• Upfront, Operational Analysis

� Identify the root cause of the problem

� Determine a holistic solution set

• High Level Business Case

� Includes problem statement and recommends an approach to solving the problem

� Objectives, metrics and intended outcomes

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Analysis*

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Investment Management:• Justification - Broaden the Business Case

• Materiel solution Analysis of Alternatives(AoA)

� Recommended solution set

• Testing Approach

• Acquisition Approach

� Proposed contracting strategy

• Certification

Execution:• Develop and Field the Capability in

12-18 months

• Re-validate the Business Case

• Independent Risk Assessment (ERAM for MAIS)

• Other Certifications

• Annual Review

www.defenselink.mil/tfbsoTask Force to Improve Business and Stability Operations -- Iraq

www.pentagon.mil/dbt/dbafDefense Business Agility Forum

www.defenselink.mil/dbtDefense Business Transformation

www.defenselink.mil/btaBusiness Transformation Agency

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