Department National Defence (DND)

Defence Renewal

Defence Business Management

Capability Transformation (DBMCT)

Proof of Concept (POC)

Agenda

• Background

– Outcomes, Objectives, Contributors

• POC Scenario Overview

• POC Approach

• Environment Overview

• Scenario Walkthrough

• Observations / Key Enablers

2

Challenges

Can we quickly, reliably, and accurately answer these kinds of questions today?...

• How ready is Defence? Is it ready enough? Is it too ready? What are the costs?

• Where do I find a whole-of-Defence business view?

• Why do we have to set-up special teams for issues like SR & SOR?

• How do we know we are being successful and sustainable in Defence Renewal?

• How do I, in real time, plan for and monitor business strategy, risks, priorities

and activity performance ?

• Do I have accurate information that I can trust and use to inform decisions?

• Can we determine future impacts of current business decisions?

Is the business of Defence set up to be understood? ...

3

4

Business Intelligence /

Analytics

Business Cyber Security

Enterprise Architecture

Business Requirements Definition and Prioritization

Business Policy

Formulation and

Integration

Business Systems

Integration

Change Management

Business Design

Modeling and Simulation

Education and Training

Governance and

Accountability

DBM Enterprise Capabilities

POC Objectives In support of Defence Renewal Outcomes

Resources to be focussed

strategically on front-line

capabilities and readiness, and

overhead costs and process

inefficiencies are reduced to the

greatest extent possible

5

A comprehensive regime of

performance metrics and

targets to be in place and

employed to measure and

assess improvements, guide

resource allocation decisions,

and ensure accountability.

A culture of continuous

improvement and renewal will

be instilled and accepted as a

permanent feature of the

defence business

Technology and innovation

will be embraced and used in

ways that support, reinforce

and enable process

improvements

• Demonstrate the value inherent in an Enterprise Architecture driven

approach (single model)

• Demonstrate potential Whole-of-Defence business view

• Demonstrate the direct relationship between FP&R operational activities,

planning, execution and performance management including linkages to PMF

• Confirm suitability and effectiveness of SAP, Microsoft & Qualiware to:

– Enable a Modernized Work Environment

– streamline planning processes

– harness pertinent trusted information for rapid decision making

• Inform on deployment considerations

– Design, dependencies, interfaces, supportability, performance, security,

CONOPS, training, resource impact, etc.

Work

Environment

Programme

Governance

Culture

Architecture

Functional Level Cross-Functional Level Enterprise Level

What did we do? How are we doing? What should we be doing?

Support Business Improve Business Optimize Business

Architected

(Defined)

Constant attention to business

architecture, documentation,

standardization and integration

Defined, cross-functional

oversight

Local decision-making

based on plans & strategy

Focused approach to

Data Integration

End-to-end business

model defined

Cross-functionality

articulated

Common / Shared

approach to BI&A

Agile

(Optimized)

Business constantly

improved to better serve

Defence Team needs

All effort aligned with

Defence Outcomes

Continuous

Optimization

On-going Education and

Learning

Consistent use of

Trusted Information

Business adapts

Strategically

Decision-Making based

on agile foundation

Advanced analytics and

optimization

Constant oversight and

active adjustment

Whole of Defence

perspective

Functional

(Siloed)

Repeatable business

process defined and

documented

Functionally-focused

Decision-Making

Limited / disparate

BI&A services

Disparate, On-demand

Data activities

Local operational

business models

Managed

(Integrated)

Monitor and control business

through data collection and

analysis

Horizontal

Accountability

Cross-functional

decision-making

Integrated Data and

Stewardship

Operating in end-to-end

business model

Horizontally

Integrated

Application integration

with BI&A

Enterprise approach to

business management

Embedded Education

and Training

Business not sufficiently

defined and documented

Informal

(Un-defined)

Ad Hoc solutions

Business models

not defined

Source: Carnegie Mellon

Maturity Model (tailored)

6

Proof of Concept

6

EPM Perspective

DSC Perspective

Business Architecture (OV)

Enterprise Architecture Context

7

Defence Strategy (StratV)

Readiness Targets

Performance Objectives PAA

PMF

Defence Business Model Core Business Processes

Information

Architecture

Application

Architecture

Security

Architecture

Technology

Architecture En

terp

rise A

rch

itectu

re

Informs

ARA

8

Architected Approach – Exercise Defence Renewal Vision POC = Thin-Slice

9

MS-Office Environment

Web Services Files Databases Social ERP

Data Integration Data Analysis Data Quality Data Masking

SAP BusinessObjects Suite

Semantic Layer (Meta Data)

Crystal Web Services Dashboard Data Explorer Analysis Web Intelligence

Universe

SAP Enterprise Performance

Business Planning and Consolidation

(BPC)

Strategy Management

Business Warehouse BW OLAP

Data

Se

cu

rity S

erv

ice

s

Environment

Scenario

10

11

RCN Readiness – FP&R RCN BP Initiation RCN BP Planning RCN Directive

Annual BP cycle RCN &

MEPM Ops Plan

RCN Specific Fit for

Mission

In year activity

performance

RCN PMF Dashboard

RCN Business Use Cases

SharePoint / Office Interface

SAP SM SAP BPC SAP

BI&A

12

Operationalize in

Business Systems

SAP ECC PeopleSoft Other

ERP’s

Enterprise Information

Model in

Qualiware

13

DSC Context

Program Alignment

Architecture (PAA)

Framework to support

governance, planning and

decision-making by

providing both financial and

performance information

ADM(Mat) DSC

Transformation –

Architecture Project

Integrated Defence

Environment (IDE)

delivering the Value Chain

Architecture, which is the

backbone of all DSC

activities

MEPM Strategic

Initiatives (MSI)

Better deliver the naval

products and services as

part of materiel lifecycle

programs for defence

capability elements

14

Strategic

View

Operational

View

Systems View - Data

Systems View - Applications

Transaction

BI Extract

Performance data

PAA Guides

Value Chain KPIs

DSC Architecture

Activities of Logic Model

PMF

MA&S Outcomes

Performance Indicators

Performance Data

Sources

DSC

Logic

Model Guides

15

1 Readiness

2 3 4 5 6 7 8

RCN Readiness – FP&R

Total Cost$418 or Lower At 75% confidence A 25% risk of Readiness falling below .53

Force Units Most Often Experiencing a Shortfall and Least Often Experiencing a Shortfall

Select Force Structure Adjust budget and risk confidence level

0 2000 4000 6000 8000 10000

1a DefendCanada 00%

4b MAJAID 01%

5a/b/c IntlOpExtended 23%

1g NORAD 46%

3a TerroristAttack 00%

1d ArcticResponse 45%

1c NatlDomOps 58%

1b SAR 33%

1h ContinentalOps 89%

1f OGDSupport 87%

4a SpCivilAuthority 94%

6a/b/c IntlCrisisShortterm 98%

2a SpIntlEventCanada 98%

1e Reinforcing 93%

Freq

uenc

y of

Sho

rtfa

ll

Events Occurred Events Short of Resources

CAF Force Structure Readiness Assessment

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

1 2 3 4 5 6 7 8 9 10 11 12

Read

ines

s In

dex

Period

Median Risk Index by Period

FS0 Reference

FS1 Working

Max Zero Risk

Cap Capped Budget

32 33 33 34 34 35 35 35 36 37 37 37

0

5

10

15

20

25

30

35

40

1 2 3 4 5 6 7 8 9 10 11 12

Force Structure Cost by Period

0% 10% 20% 30% 40% 50% 60% 70%

UF15: Air Defence Regiment

UF52: JTF2 TMS

UF43: CBRN TF

UF48: Air Field Medical Station

UF31: TCR Det (Fighter Control Radar)

UF45: Disaster Assistance ResponseTeam (DART)

UF34: CC130 Hercules(T)

UF25: ACCE C2 Det (Command andControl)

UF26: AEW (Airborne Early Warning)

UF49: Role 2

Top Ten Shortfalls

0.0% 0.0% 0.0% 0.1% 0.1% 0.1%

UF14: CBG TBG

UF30: CC188 Hornet

UF51: CBRN Patient Decontam Centre

UF19: Frigates

UF32: CH146 Griffon

UF38: CP140 Aurora

UF29: CC115 Buffalo/CC138 Twin Otter

UF20: Destroyers

UF22: Submarines

UF24: Port Security Units

Bottom Ten Shortfalls

16

1 Readiness

2 3 4 5 6 7 8

• Adopt a Single Business Model

CTG: (POC Example)

2 x Halifax Class Frigates

1 x Iroquois Class Destroyer

1 x Protecteur Class Vessel

RCN Readiness – FP&R

17

POC Environment - Planning

18

RCN BP Initiation • Single process & view

1 2 BP Initiation

3 4 5 6 7 8

19

RCN BP Planning – Cont

1 2 3 BP Planning

4 5 6 7 8

Track & Collaborate

20

RCN BP Directive

1 2 3 4 BP Directive

5 6 7 8

• Connect and Record

21

Environment - Managing

22

Semantic / Universe Concept

Trusted Data

Foundation

Logical Data

Model

Business

Subjects

Semantic Layer

(Universe)

Presentation

Layer

23

Financial Datamart

24

IV-1 Financial Subject

25

Financial Reporting Universe

26

Universe – Data Layer of Design Service Models: Managed Reporting, Self-Serve, Data Svcs

27

Annual BP cycle RCN & MEPM Ops Plan

1 2 3 4 5 MEPM Ops.

6 7 8

Goal: Provide business planning direction to DGMEPM, trigger DGMEPM Operational plan

adjustments as required and identify deltas and impact

HR

28

RCN Specific Fit for Mission

1 2 3 4 5 6 Mission Fit

7 8

Explore inventory by NSN, by location, by time for Mission Fit

“FSC 1550” “Drone, Maritime”

YTD Count by Location

By Time,

By Location By Location,

By Time

NSN Stock Location Month

29

In-Year Program Performance

1 2 3 4 5 6 7 In Year Activity

8

• Analyze & Measure

• Decide & Execute

30

Environment - Performance

31

RCN PMF Dashboard

1 2 3 4 5 6 7 8 PMF Dashboard

• Review & Improve

Observations / Benefits

• Business Architecture Imperative

• A unified business model is implementable

• Demands a business-led paradigm

• Business analyst heavy vs. technology

developer

• Clear that knowledge worker effort will shift to

value-add business analysis

• No Silver Bullet

• Value can be realized incrementally

32

Key Enablers / Pre-requisites

• Executive-level leadership essential

• Change management aspects are foundational

• Clear and co-ordinated effort of Business & IT

• Need to operate in an Enterprise Governance

Model

33

DISCUSSION

34