Problem

1
DoDs Business Management Modernization Overview
and Update to ASMC
Marilyn Fleming, Deputy Director, Enterprise
Architecture Business Modernization and Systems
Integration OUSD(C) November 12, 2003
2
Agenda

• 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

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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 DoDs business processes providing
  good information systems simply implement these
  improvements)

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Business Transformation

• 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

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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 statements
• Objective 1.2 Achieve total asset visibility
• Objective 1.3 Achieve total personnel
  visibility Manage DoDs business transformation
  investments
• Objective 1.4 Adopt the Business Enterprise
  Architecture (BEA) planning decision and control
  process that manages DoD Business Operations
• Goal 2 Enable improved Business Operations
• Objective 2.1 Adopt the BEA for acquiring,
  managing, and providing material and human
  assets in support of the Warfighter
• Objective 2.2 Systematically improve the
  efficiency of DoD business operations

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Example of Metrics Goals, Objectives and Measures
Goal 1. Provide Timely, Accurate, Reliable
Information for Business Management
Measured By
Objective
1.1 By 2007, achieve unqualified audit opinion on
consolidated DoD financial statements
M1.1.1 Number of material weaknesses eliminated
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
M1.2.1 Confirmed asset inventory and
valuation M1.2.2 Data accuracy of in-transit
assets
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
1.4 By 2007, provide DoD decisionmakers timely
access to business information
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)
Note 1 Information recording and information
response time thresholds will be defined for each
major category of business information (e.g.,
fund balance)
DRAFT
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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
Incremental approach with emphasis on continuous
improvement
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

2004-2008
2002-2006
2005-2010
Prototype DoD Solutions
Deploy DoD Solutions
Develop Architecture
2007
Increment 1
Increment 2
2009
Increment 3
2010
IOC 2008
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Impact
Portfolio Management

• Comptroller review of Business Systems
• Compliance with Business Enterprise
  Architecture

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

• Common business processes
• Net Centric Data
• Integrated systems
• Enable optimal warfighter support

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The Enterprise View of Business Transformation
Business Rules and Policies
Enterprise transformation requires balancing
between the needs of individual business units
and needs of the enterprise
Enabling Threads
Army
Navy
Improved Business Operations
Warfighter Requirements
Air Force
Defense Agencies
Standard Technology and Data
Enterprise Integration
Enterprise Information
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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
• askbmmp_at_dfas.mil

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To support the Warfighter with world-class
business operations