BMMP DoD’s Business Management Modernization Overview and Update to ASMC Marilyn Fleming, Deputy Director, Enterprise Architecture Business Modernization.

BMMP

DoD’s Business Management Modernization

Overview and Update to ASMC

Marilyn Fleming, Deputy Director, Enterprise Architecture

Business Modernization and Systems Integration

OUSD(C)

November 12, 2003

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Background

What is Business Management Modernization?

The Mission and Vision

Goals and Objectives

Metrics

The Strategy – Our Plan

The Strategic View

Impact

The Enterprise View of Business

Transformation

Agenda

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Background

• Friedman Report– “Transforming Department of

Defense Financial Management”• Lack of Overarching Approach to Financial

Management• Overly Complex Data Requirements• Convoluted Business Processes• Inability to Produce Reliable Annual

Financial Statements• As a result DoD established the

Business Management Modernization Program

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What is Business Management Modernization?

Business Management Modernization is a DoD-wide initiative to:

- Streamline and transform business processes

-Provide timely, accurate and reliable information for decisions

- Enable and integrate information systems using common processes and portfolio management

What Business Management Modernization is not:

- Just a Finance and Accounting effort

- Just a ‘systems’ effort (focus is on transforming

DoD’s business processes & providing good

information; systems simply implement these

improvements)

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Mission - Business Management Modernization Program

Support the Warfighter through world-class business operations

BMMP will help DoD to achieve its vision

- Manage its support operations in an efficient, business-like manner, thus optimizing the combat support infrastructure

- Deliver resources to the Warfighter using the most effective business processes

- Provide accurate, reliable and timely financial information, affirmed by unqualified audit opinions, to decision makers at all levels of DoD

Business Transformation

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BMMP Goals and Objectives

Goal 1: Provide accurate, reliable, and timely information for Business Management Objective 1.1 Achieve unqualified audit opinion on consolidated DoD financial statementsObjective 1.2 Achieve total asset visibilityObjective 1.3 Achieve total personnel visibility Manage DoD’s

business transformation investmentsObjective 1.4 Adopt the Business Enterprise Architecture (BEA)

planning decision and control process that manages DoD Business Operations

Goal 2: Enable improved Business OperationsObjective 2.1 Adopt the BEA for acquiring, managing, and providing material and human assets in support of the WarfighterObjective 2.2 Systematically improve the efficiency of DoD business

operations

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Example of Metrics: Goals, Objectives and Measures

DRAFT

Goal 1. Provide Timely, Accurate, Reliable Information for Business Management

1.1 By 2007, achieve unqualified audit opinion on consolidated DoD financial statements

M1.1.1 Number of material weaknesses eliminated

M1.2.1 Confirmed asset inventory and valuation

M1.2.2 Data accuracy of in-transit assets

M1.4.1 Percent of business information that is updated at a rate sufficient to meet the information recording threshold (Note 1)

M1.4.2 Percent of business information accessible by DoD decisionmakers within the information response time threshold (Note 1)

1.3 By 2007, achieve total personnel visibility to include: military service members, civilian employees, DoD retirees, and DoD contractors

M1.3.1 Confirmed personnel inventory and tracking

M1.3.2 Accuracy of In-transit visibility of personnel

Objective Measured By:

1.2 By 2007, achieve total asset visibility and accurate valuation of property, plant and equipment, to

include real property; military equipment; internal use software; personal property, and property in

possession of contractors

1.4 By 2007, provide DoD decisionmakers timely access to business information

Note 1: Information recording and information response time thresholds will be defined for each major category of business information (e.g., fund balance)

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Strategy for Business Transformation

• Develop DoD-wide BEA and governance methodology,

• Reengineer processes using an incremental approach,

• Use portfolio management to determine information technology investments

• Test and implement systems solutions

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Strategic View

IOC 2008

Increment Focus• Increment 1 Unqualified Opinion – FY07

Financial Statements• Unqualified Audit Opinion (2007)• Plan, Procure, Pay• Asset Accountability• Resolve Material Weaknesses• Other Personnel, Acquisition and TI Improvements

• Increment 2 (Proposed)• Integrated Planning, Programming, Budgeting & Execution

• Increment 3 (Proposed)• Combined Human Resource Management• Integrated Performance Management Reporting

Increment 3

Increment 1

Increment 2

2007

2009

2010

2002-2006

Prototype DoDSolutions

DevelopArchitecture

Deploy DoDSolutions

2004-2008 2005-2010

Incremental approach with emphasis on continuous improvement

Continuous Improvement

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Business Process Reengineering – Logistics– Acquisition– Accounting and Finance– Human Resources Management– Installations and Environment– Strategic Planning and Budgeting–Net Centric Enterprise Services

Impact

Portfolio Management • Comptroller review of Business Systems

• Compliance with Business Enterprise Architecture

BMMPIncrements 1, 2, & 3

• Common business processes

• Net Centric Data

• Integrated systems

• Enable optimal warfighter support

Performance Metrics

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The Enterprise View of Business Transformation

Defense Agencies

Air Force

Navy

Army

Logistics

Acq

uisition

Hu

man

Resou

rces Man

agemen

t

Accou

ntin

g and

Fin

ance

Strategic P

lann

ing &

Bu

dgetin

g

Installation

s & E

nviron

men

t

Tech

nical In

frastructu

re

Standard Technology and Data

Enterprise Integration

Warfighter Requirement

s

Improved Business

Operations

Enterprise transformation requires balancing between the

needs of individual business units and

needs of the enterprise

Enabling Threads

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We Want to Hear from You

• Visit the program website at

http://www.dod.mil/comptroller/bmmp/

• Submit questions and comments from the website or send a message to

[email protected]

BMMP

To support the Warfighter with world-class business operations