Enterprise Services Enterprise Services for Defense Transformation - PowerPoint PPT Presentation

Enterprise Services Enterprise Services for Defense Transformation for Defense Transformation Prof. Paul A. Strassmann George Mason University, February 19, 2007 1 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Case Study Hewlett-Packard Cost Reduction 2 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Example of Application Simplification Domain (All) Primary Y Region (All) Owner GCP Capability Training & Cert Count of Asset Name Dashbd & Reporting Prog adm/compens Data Collection 24 200 24 Portal Newsgram 24 30 30 Marketing Mgt 24 Datawarehouse 23 27 16 22 C&R - deal 150 16 P & S Catalog 27 17 27 17 15 Quote/Config 27 Mkt Dev Fund 13 21 16 13 21 Locator 12 16 15 10 16 Acct Mgt & P. 15 100 10 16 5 11 Profiling 14 8 9 14 12 8 13 Leads Mgt 11 8 13 11 8 10 13 8 5 7 Data cleansing/Std 7 7 6 7 6 12 9 10 9 10 stock protect 13 8 10 6 10 6 7 10 10 7 13 2 7 contract 50 6 7 2 2 10 7 5 7 5 7 6 7 7 8 6 4 2 2 6 5 A2A Integ 2 2 4 4 4 6 7 4 4 2 6 6 6 4 7 6 6 3 5 Pricing Comm 5 6 5 3 5 5 2 4 5 4 2 2 4 2 4 4 2 Content Publi. 5 3 1 3 3 3 3 3 2 2 2 2 2 2 2 2 Fraud Mgt 0 Rebate Comm t 2 3 4 1 2 3 4 1 2 3 4 Control - EUV n Q Q Q Q Q Q Q Q Q Q Q e r r - - - - - - - - - - - u C&R - promo 6 6 6 7 7 7 7 8 8 8 8 C 0 0 0 0 0 0 0 0 0 0 0 Y Y Y Y Y Y Y Y Y Y Y F F F F F F F F F F F Portal Metric 3 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION Period

Transformation Indicators - HP Case 4 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Enterprise Data Warehouse Legacy applications = chaos Enterprise data warehouse = order Production Finance Control Continuity Consolidation Marketing MRP Control Collaboration Inventory Sales Control Parts Accounting Management Management Logistics Single Reporting version of the truth Shipping Engineering Data Warehouse Raw Goods Actuarial Human Order Control Resources Purchasing 5 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

IT Portfolio Scorecard Metric Target Performance % On Time Delivery Annualized Benefit ($B) $3B $2.5B $2B $1B Value-Added/IT Developer % Projects On Quality Target % Innovation vs. Sustaining 2004 2005 2006 2007 6 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Opportunity to Standardize, Consolidate and Integrate 100% 48 5 33 21 44 17 80% 60% Low Commonality High Commonality 40% 20% 67 52 79 56 83 95 0% Marketing Sales Order Supply Chain Finance HR Ops Ops Mgmt 7 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

A Transformation Calculator (See BASELINE January 2007) 8 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Calculating the Transformation % - (Baseline January 2007) 9 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Case Study The Department of Defense 10 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Components of Transformation in DoD Data Strategy Net-Centric Enterprise Operations Services Information Assurance 11 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Organization for Transformation in DoD Warfighter Mission Area Intelligence Business Mission Area Mission Area 12 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Distribution of DoD I.T. Spending 13 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Most DoD I.T. Spending in Infrastructure 14 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Scope of Business Management Systems 15 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Business Mission in Military Services 16 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION Current Organization of I.T. Spending in Services Acquisition - 15 Air Force Infrastructure - 601 Projects Finance - 16 HR - 49 Installation - 13 Logistics - 152 Budgeting - 172 Acquisition - 4 Infrastructure - 181 Projects Finance - 3 Army HR - 49 Installation - 6 Logistics - 47 Budgeting - 2 Acquisition - 45 Infrastructure - 401 Projects Finance - 104 Navy HR - 158 Installation - 21 Logistics - 232 Budgeting - 87 17

Proposed Ultimate Organization of I.T. Spending in Services Air Force Army Navy Portals Acquisition - 4 Installation - 6 Logistics - 47 Budgeting - 2 Finance - 3 HR - 49 Shared Infrastructure - 12 Projects 18 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Organization for Transformation of DoD - As Defined by NII 19 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Potential Cost Reduction Through Consolidation of DoD Systems NOTE: Cost/Function Point = $1,200; Function Points/Application = 20,000; Function Points/Infrastructure = 200,000 20 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

What is Needed: A Business Transformation Engine • Interoperability Interoperability to share data; – Reduce mediation costs • I.T. I.T. cost reduction ost reduction; – Consolidate applications, use shared components • Operating cost reduction Operating cost reduction; – Automate reliability, security and information assurance • Rapid delivery Rapid delivery of new capabilities; – Reduce integration costs for innovation 21 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Functions of the Business Transformation Engine DoD Business Process Models Transformation Engine Services Interoperability Shared Directory Rules Services Legacy Applications Transformed Client Interoperability Services Filter Services Interface Portal Transformed Applications Interoperability Controller Transformation Engine DoD MetaData Directory 22 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

The DoD Policy Context: Data Sharing for Net-Centric Operations 23 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Application Transformation Functions • DoD Business Process Models provide the means for resolving procedural and process issues across different Communities of Interest. • Shared Services include Application Development Services and Application Component Services. • Transformed Services are applications that can be certified as fully compliant with DoD policies. • Services Directory identifies the contents and access processes for delivery of “composite applications” that can utilize parts of available services. • Services Portal provides a standard interface that can be adapted to • Services Portal meeting customers’ requirements. 24 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Case Study Managing Software 25 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Current State of Software According to Capers Jones • Initial requirements are seldom more than 50% complete. • Finding and fi fixing bugs is the most expensive software activity. • Creating documents is the second most expensive software activity. • Most forms of testing touch less than 50% of the code being tested. • There are more defects in test cases than in the software itself. • About 5% of modules in applications will contain 50% of all defects. • About 7% of all defect repairs will accidentally inject new defects. • About 5% of software outsource contracts end up in litigation. • About 35% of projects > 10,000 function points will be cancelled. • About 50% of projects > 10,000 function points will be one year late. 26 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Proliferation of Software Choices • More than 600 programming languages; • More than 40 different formal methods; • More than 38 different kinds of size metrics; • More than 26 named development methods; • More than 25 international standards organizations. 27 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Proliferation of Software Development Methodologies (Partial) • Capability maturity model (CMM); • Capability maturity model integration (CMMI); • CASE tools; • CRYSTAL development approach; • Dynamic system development method (DSDM); • Extreme programming (XP); • ISO 9000-9004 standards; • Personal software process (PSP); • Rapid application development (RAD); • Structured process (TSP); • Unified modeling language (UML). 28 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION

Proliferation of Metrics to Measure Size of Software • IFPUG function points; • Backfired function points; • Cosmic function points; • Engineering function points; • Feature points; • Mark II function points; • NESMA function points; • Object points; • Use-case points; • Web-object points; • Lines of code; • Number of source code logical statements. 29 Prof. Strassmann, GMU, February 2007 Lecture, REPRODUCED BY PERMISSION