ISA 301 Advanced Enterprise Information Systems Acquisition Lesson

ISA 301 Advanced Enterprise Information Systems Acquisition

Lesson 4 – Defense Business Systems (DBS) Acquisition Considerations DBS Acquisition Strategies 2

Learning Objectives Today we will learn to: • Given a Defense Business System (DBS) acquisition scenario, recommend applicable approaches to reduce programmatic risk - Identify major policies governing DBS acquisition - Recall business process reengineering policy and guidance DBS Acquisition Strategies 3

Lesson Overview Lesson Plan • Definition of Defense Business • • Systems (DBS) DBS Governance & Acquisition Process Business Process Reengineering Leading Change Reengineering Air Force Logistics Case Study DBS Acquisition Strategies 4

What is a Defense Business System (DBS)? Business systems are information systems that are operated by, for, or on behalf of the Department of Defense, including: financial systems, financial data feeder systems, contracting systems, logistics systems, planning and budgeting systems, installations management systems, human resources management systems, and training and readiness systems. A business system does not include a national security system or an information system used exclusively by and within the defense commissary system or the exchange system or other instrumentality of the Do. D conducted for the morale, welfare, and recreation of members of the armed forces using nonappropriated funds. - DODI 5000. 75 DBS Acquisition Strategies 5

Lesson Overview Lesson Plan • Acquisition of Defense Business Systems (DBS) • • • Business Process Reengineering Leading Change Reengineering Air Force Logistics Case Study • DBS Governance & Acquisition Process DBS Acquisition Strategies 6

Governance Defense Business Council Co-Chairs: Principal Members: Roles Do. D and Service CMOs Do. D and Service CIOs Functional Sponsor MDA Functional Lead Program Manager PCA Do. D CMO, Do. D CIO USD (A&S) USD (P) Do. D Comptroller USD (P&R) USD (I) Director, CAPE Joint Staff Chief, NGB Service CMOs Service CIOs DBS Acquisition Strategies 7

DOD Business Systems Categories DBS Category determines governance level 8

The Business Capability Acquisition Cycle DBS Acquisition Strategies 9

Acquisition of Defense Business Systems (DBS) • • Defense Business Systems (DBS) do not follow the Joint Capabilities Integration and Development Systems (JCIDS) procedures for the development and validation of capability requirements The only exception to the use of JCIDS is if the Joint Requirements Oversight Council (JROC) designates the DBS as a special interest program If DBS are MDAPs, they only follow the requirements for MDAP reporting, not the JCIDS requirements The mandatory Key Performance Parameters (KPP) used by weapons systems are not mandatory for DBS, except for the Net-Ready KPP (NR-KPP) mandated by Do. DI 8330. 01 DBS Acquisition Strategies 10

Acquisition of Defense Business Systems (DBS) • • DBS uses a tailored approach for all program documentation. Information deliverables (including requirements documentation) will generally not be prepared solely for staff review and approval, but be intended primarily for use within the program either as products used in later phases of the process or as planning and management tools The information produced will be specific to each program and tailored to meet individual program needs. Details will be maintained by the program in a transparent and timely fashion, available for oversight reviews as needed DBS Acquisition Strategies 11

Lesson Overview Lesson Plan • • Acquisition of Defense Business Systems (DBS) • • Leading Change Reengineering Air Force Logistics Case Study DBS Governance • Business Process Reengineering DBS Acquisition Strategies 12

Business Process Reengineering (BPR) Do. D defines BPR as a ―logical methodology for assessing process weaknesses, identifying gaps, and implementing opportunities to streamline and improve the processes to create a solid foundation for success in changes to the full spectrum of operations¹. • • • Goal: eliminate r reduce need to tailor COTS Best Practice: BPR begins prior to but is not completed until a product has been selected so that business processes can be driven by commercial best practices BPR will utilize the Business Enterprise Architecture (BEA) to guide and constrain the effort ¹Do. D Business Process Reengineering Assessment Guidance, Sep, 2012 DBS Acquisition Strategies 13

Why Business Processing Reengineering? • • Subtitle III of Title 40 of the United States Code (AKA Clinger-Cohen Act) requires BPR FY 2016 NDAA and title 10 U. S. C. sec 2222 requires certification (includes BPR) of all covered* DBS programs It’s the Law! * Varies by component: 4 th Estate Army AF DON $1 M $5 M $1 M for FY 18 (TBD FY 19 and beyond) Source – DBSIMG and DUSN(M) DBS Acquisition Strategies 14

Acquisition of Defense Business Systems (DBS) • The Functional Lead is responsible for leading business process reengineering and execution of business process changes • The Chief Management Officer (CMO) validates that sufficient business process reengineering has been conducted to determine that a business system is required DBS Acquisition Strategies 15

Transition Planning “As Is” to “To Be” • • Traditional acquisition is primarily forward-looking DBS acquisition requires looking backward, forward and in between As-Is Transition Plan To-Be Roadway now underground Boston’s Big Dig – Looking Back, During and After 16 DBS Acquisition Strategies

Lesson Overview Lesson Plan • • • Acquisition of Defense Business Systems (DBS) DBS Governance Business Process Reengineering • Reengineering Air Force Logistics Case Study • Leading Change DBS Acquisition Strategies 17

Leading Change from “As Is” to “To Be” 1. Establish Sense of Urgency (50% of change fails here) 2. Form Powerful Guiding Coalition (Change cannot be guided by old hierarchy) 3. Create a Vision (Without direction, change begins to look like change for change's sake) 4. Communicate the Vision 5. Empower Others to Act on the Vision (Helps remove entrenched processes) 6. Plan for and Create Short-Term Wins (These validate urgency and effort) 7. Encourage Additional Change (Don’t declare victory to soon) 8. Institutionalize New Approaches (Changes made should become new processes) Ref: Kotter’s 8 Steps Process DBS Acquisition Strategies 18

Lesson Overview Lesson Plan • • Acquisition of Defense Business Systems (DBS) DBS Governance Business Process Reengineering Leading Change • Reengineering Air Force Logistics Case Study DBS Acquisition Strategies 19

Team Case Study Assignment • • • Read Case Study Reengineering Air Force Logistics Using the Team Prep Summary Sheet (next slide) as a framework, analysis the case and choose one of the approaches for meeting the requirements discussed in the case (e. g. clean-sheet) to advocate. You may also develop your own approach Be prepared to present your recommendation to the class highlighting your decision criteria and actions needed to mitigate risks or more fully take advantage of opportunities DBS Acquisition Strategies 20

Task 1: Critical Thinking Team Prep Summary Sheet – Reengineering Air Force Logistics Stakeholders: Problem Statement: Issues: Alternatives: Decision Criteria: DBS Acquisition Strategies 21

References for Case Exercise • • Reengineering AF Log Case Do. D Business Process Reengineering Assessment Guidance September 28, 2012 – Focus on Appendix B Do. DI 5000. 75 Defense Business Systems Investment Management Guidance Version 4. 0, April 2017 (pg. 17) DBS Acquisition Strategies 22

Summary Today we learned to: • Given a Defense Business System (DBS) acquisition scenario, recommend applicable approaches to reduce programmatic risk • Identify major policies governing DBS acquisition • Recall business process reengineering policy and guidance DBS Acquisition Strategies 23