1. Large Scale Business Transformation: A Case Study from U. S
Large Scale Business Transformation: A Case Study from U.S. Army Logistics
Thomas Gulledge, President, Enterprise Integration, Inc.
Professor of Public Policy & Engineering, George Mason University

2. Outline: Overview and Background Enterprise Architecture Planning
Achieving the Logistics Vision
Integrated Schedule
Institutionalizing the Methodology
Cost and Benefit Data
Conclusions
Transforming Army Logistics

3. Outline: Overview and Background Enterprise Architecture Planning
Achieving the Logistics Vision
Integrated Schedule
Institutionalizing the Methodology
Cost and Benefit Data
Conclusions
Transforming Army Logistics

4. Guidance from the Executive in Charge
An Integrated Logistics Solution
A solution that aligns with OSD Policy Architectures
A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.)
A solution that addresses technical data integration
A lean architecture that enables a common operating picture.
Minimizes interfaces
Provides for single set of supporting master data
Integrates existing solutions
Transforming Army Logistics

5. 1 1 1 1 1 Initial Tasks Completed
Intensive
90 day Effort
Initial Tasks
Completed 1
High-level Operational Architecture
High-level Systems Architecture
High-level Integrated Schedule
High-level Cost & Benefit Data
Define a Methodology for Institutionalizing the Architecture 1 1 1 1
Transforming Army Logistics

6. Scope Supply processes to include requisitioning, turn-in, loans
Maintenance management to include, at a minimum, induction of materiel into maintenance, maintenance (all levels – current and future), movement of materiel from maintenance activity to user/stock
Packaging, Crating, Handling and Distribution of materiel
Warehousing Functions associated with storage of materiel and readying it for movement
Associated Financial Transactions resulting from the requisitioning, turn-in, maintenance, storage and packaging, and distribution of materiel
Ensuring that Electronic Product Data (up front during design and production, as well as post-fielding) is captured and utilized in our logistics business systems. This includes engineering, configuration management data, and usage/failure factors, for all fielded materiel
Connectivity to Automatic Identification Technologies (AIT) to ensure that our logistics business systems accept and use the information to give us visibility of materiel, enhanced usage data, etc.
Connectivity to Joint Combat Service Support (CSS) systems, transportation, medical, finance, personnel, and legal
Transforming Army Logistics

7. Project Team Membership (roles & responsibilities)
Dr. Gulledge (EII): Senior Lead and relationship with other Enterprise initiatives (FLE, FMEA, etc).
Greg Huntington (EII): Overall Enterprise Architecture / Customer Deliverables/Project Management.
Georg Simon (IDS Scheer): Business Value Chains & Process Architecture
Wael Hafez (IDS Scheer): Business Methods
Kris Pena (SAP): SAP functionality & standards to process architecture (current technology).
David Lincourt (SAP): SAP functionality & standards to process architecture (future technology).
Moses Irubor (SAP): Technical and Systems Architecture.
Bill Bain (Gartner): Governance / Cost and
Dave Walters (Gartner) Benefit Data
Pam Thompson Army Team (LAISO)
Forrest Malcomb (CASCOM)
Maurice McKinney (PEO EIS)
Transforming Army Logistics

8. Chronology In process Reviews Mid-term Quality Review Site Visits:
Ft. Hood, TX (4th ID)
TRANSCOM Scott Air Force Base, IL
LMP Program Office, NJ
LAISO, Redstone Arsenal, AL
CASCOM, Ft Lee VA
ARDEC Picatinny Arsenal, NJ
Interviews:
Transportation, Maintenance, Supply -
LMP Program Office -
GCSS A/T Program Office -
Installation Management Agency (IMA) -
Embedded Diagnostics & Prognostics - (EDAPS) Study Team -
Research:
Objective Force (OF)
Future Combat System (FCS)
Logistics LTTF Study
LMP contract & studies
GCSS-A/T contract & studies
Engineering Product Data (ePDM) Study
In process Reviews
OSD Alignment:
Future Logistics Enterprise (FLE) -
Financial Management Enterprise Architecture (FMEA) -
Enterprise Integrated Data Environment (EIDE) -
Service Data Management (SDM) -
Analyzed:
SAMS, SARSS, ULLS,
ILAP, MTS, STANFINS,
SAAS, PBUSE, etc.
Mid-term Quality Review
Transforming Army Logistics

9. Outline: Overview and Background Enterprise Architecture Planning
Achieving the Logistics Vision
Integrated Schedule
Institutionalizing the Methodology
Cost and Benefit Data
Conclusions
Transforming Army Logistics

10. Enterprise Architecture Planning
Enterprise Architecture Planning is the process of defining and documenting a plan (i.e., a blueprint) for the use of information in support of the business processes of an organization.
Enterprise Architecture Planning also includes the plan for implementing against the requirements as documented in the architecture.
Enterprise Architecture Planning is a business responsibility and it is executed under the auspices of the business process executives within the organization.
“No one would dream of asking an architect to show up one day and just start building.
Even the simplest construction projects include extensive design and planning stages that
ensure success. These same steps are often by-passed in IT projects. But given the proper
amount of time to plan and design a system correctly would dramatically improve success rates.
Matthew Dill, Mandolfo Associates (Computer World, 5 May 2003, p.23)
Transforming Army Logistics

11. Guiding Principles
The Army Logistics Architecture has a business process orientation, aligning with the Future Logistics Enterprise Policy
The Army Logistics Architecture provides a plan for business process integration across all of Army Logistics, including the National Army and the Field Army
A Single Solution
For Garrisoned &
Deployed Forces
Transforming Army Logistics

12. Outline: Study Overview and Background
Enterprise Architecture Planning
Achieving the Logistics Vision
Integrated Schedule
Institutionalizing the Methodology
Cost and Benefit Data
Conclusions
Transforming Army Logistics

13. Army Logistics Enterprise Strategic Vision:
“A fully integrated knowledge environment that builds, sustains, and generates Warfighting capability through a fully integrated logistics enterprise based upon collaborative planning, knowledge management, and best business practices.”
We relate 5 key objectives to achieving this vision
to the Army’s Logistics Architecture …
Transforming Army Logistics

14. Achieving the Logistics Vision: 5 Key Objectives
An Integrated Logistics Solution
A solution that aligns with OSD Policy Architectures
A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.)
A solution that addresses technical data integration
A lean architecture that enables a common operating picture
Minimizes interfaces
Provides for single set of supporting master data
Integrates existing solutions
Meets Objective Force Characteristics!
Responsive
Deployable
Agile
Versatile
Lethal
Survivable
Sustainable
Transforming Army Logistics

15. Achieving the Logistics Vision: 5 Key Objectives
An integrated logistics solution
A solution that aligns with OSD Policy Architectures.
A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.).
A solution that addresses technical data integration.
A lean architecture that enables a common operating picture.
Minimizes interfaces
Provides for a single set of supporting
master data
Integrates existing solutions
Objective #1
Transforming Army Logistics

16. Operational View (OV-1)
(Single Army Logistics Enterprise)
One set of
integrated
end-to-end
business
processes
Links to
more detailed
models
Transforming Army Logistics

17. Single Army Enterprise Operational View (Detailed View)
Achieves
Objective #1
A single set of
integrated business
processes!
Transforming Army Logistics

18. Achieving the Logistics Vision: 5 Key Objectives
An integrated logistics solution
A solution that aligns with OSD Policy Architectures
A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.)
A solution that addresses technical data integration
A lean architecture that enables a common operating picture
Minimizes Interfaces
Provides for Single Set of supporting
Master Data
Integrates existing Solutions
Objective #2
Transforming Army Logistics

19. OSD Future Logistics Enterprise:
Alignment With Policy
OSD
Architecture
Army Logistical
OSD Future Logistics Enterprise:
TLCSM (1)
End-to-End Customer Support
Enterprise Integration
Condition Based Maintenance +
Depot Partnering
Executive Agency
R/3
LMP Initiative
GCSS-A/T Initiative
One Solution Manager …
enabled by multiple
software components …
managed as one!
Achieves
Objective #2
Note: 1 - Total Life Cycle Systems Management (TLCSM)
Transforming Army Logistics

20. Achieving the Logistics Vision: 5 Key Objectives
An integrated logistics solution
A solution that aligns OSD Policy Architectures
A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.)
A solution that addresses technical data integration
A a lean architecture that enables a common operating picture
Minimizes interfaces
Provides for a single set of supporting master data
Integrates existing solutions
Objective #3
Transforming Army Logistics

21. “As-Is” Systems Mapped to “To-Be” Business Process Objects
Transforming Army Logistics

22. Orderly Transition Achieves Objective #3 Transforming Army Logistics
Critical component
of legacy
retirement planning
Provides the capability
to prioritize system
replacements… ensures
commercial software fit …
ensures an orderly transition!
Transforming Army Logistics

23. Achieving the Logistics Vision: 5 Key Objectives
An integrated logistics solution
A solution that aligns with OSD policy architectures
A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.)
A solution that addresses technical data integration
A lean architecture that enables a common operating picture
Minimizes interfaces
Provides for single set of supporting master data
Integrates existing solutions
Objective #4
Transforming Army Logistics

24. Product Lifecycle Management (PLM) Spans The Entire Logistical Architecture
Non-SAP Solution
means many complex
Interfaces!
Management
Transforming Army Logistics

25. Product Lifecycle Management (PLM) within the same Solution
National Supply
Achieves
Objective #4 1
1. Asset turned in for Repair
10. Replace
Carcass Part
7. Order Carcass
from
National Supply
3. Execute
Work
Order 7
12. Close
Work Order
Field Maintenance
5. Order Carcass
from
Field Supply 2 3 12 8
6. Check
Inventory 10 5 6
2. Create
Work
Order
Transportation 9
9. Shipping of
Carcass to
Supply Unit 4 11
Field Supply
Product
Life-Cycle
Management
Tight integration
with SAP PLM!
8. Shipping of
Carcass from CONUS to Theatre
4. View Asset Configuration and
Drawings
11. Update Asset Configuration
Transforming Army Logistics

26. Achieving the Logistics Vision: 5 Key Objectives
An integrated logistics solution
A solution that aligns with OSD Policy Architectures
A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.)
A solution that addresses technical data integration
A lean architecture that enables a common operating picture
Minimizes interfaces
Provides for single set of supporting master data
Integrates existing solutions
Objective #5
a. b. & c.
Transforming Army Logistics

27. Army Logistics Systems Architecture
Achieves
Objective
#5 (c)
The applications
that enable the
architecture
Process Layer
Acquisition
Maintenance
Repair
& Overhaul
Disposal
Personnel &
Organization
Force Planning
Supply
Management
Command and
Control (C2)
Financial
Web Service
SCM
CRM
SRM
NetWeaver
User Management & Security
Portal Infrastructure
Legacy Systems
SAP R/3
PLM
mySAP
Web Application Server
Exchange Infrastructure
Applications Layer
One
integrated
solution!
Mobile Engine Server
Business Process Management
Knowledge Management/ Business Intelligence
One set of data
with multiple
databases
Presentation Layer
Business Layer
Internet Com.Mgmt.
Integration Engine
Database Interface
Master Data Management
Integration Repository
Integration Directory
Integration Server
Integration Monitor
Security
Operating systems/ Domain Mgmt.
Network
Hardware
Encryption
Data Layer DB DB DB
DBMS DB DB DB
Transforming Army Logistics

28. Critical Attributes of the System Architecture
Optimized messaging across all existing SAP programs, including the Logistics Modernization Program, and the Global Combat Support Systems - Army
Master data control at the corporate level
A single point for interfacing (i.e., SAP XI enabled by NetWeaver) with all external constituents, including Defense Finance and Accounting Service (DFAS), the Defense Logistics Agency (DLA), weapon system program office, Original Equipment Manufacturers (OEM), other Services, etc.
Centralized repository management for all technical data, and
Complete feedback to the OEM or any Army level for prognostic and diagnostic data
One integrated
solution!
Transforming Army Logistics

29. Outline: Overview and Background Enterprise Architecture Planning
Achieving the Logistics Vision
Integrated Schedule
Institutionalizing the Methodology
Cost and Benefit Data
Conclusions
Transforming Army Logistics

30. Integrated Schedule Single Army Logistics Solution! Objective Force
FY 04
FY 05
FY 06
FY 07
FY 08
Strategies, Architectures and Standards Group (SASG)
Objective Force
The integrated
Architecture
Logistics Modernization
Program (LMP)
Upgrade & add
Install Maint & Supply
Synchronize with PLM+
Single Army
Logistics
Solution!
Product Lifecycle
Management (PLM) +
Follows SAP Product Release
ver 1.0, 2.0, etc. …
Synchronize with PLM+
Global Combat
Support Systems
Army / Tactical
(GCSS-A/T)
Accelerate
1st Deployment
ver 1.0
Enterprise Integrated Data Environment (EIDE) V 3.0
Transforming Army Logistics

31. Outline: Overview and Background Enterprise Architecture Planning
Achieving the Logistics Vision
Integrated Schedule
Institutionalizing the Methodology
Cost and Benefit Data
Conclusions
Transforming Army Logistics

32. Institutionalizing the Logistics Enterprise Integration Methodology
Three critical success factors consistently make or break enterprise initiatives
The Right Governance Model
Organizational Change Management
The Architecture Team
“Only an enterprise with the discipline to address outdated practices will build a successful architecture and the core business strategies that depend on it.” –
Transforming Army Logistics

33. Outline: Overview and Background Enterprise Architecture Planning
Achieving the Logistics Vision
Integrated Schedule
Institutionalizing the Methodology
Cost and Benefit Data
Conclusions
Transforming Army Logistics

34. Cost / Benefit Data … Bottom-line: Decentralized Solutions Have Higher
Total Cost of Ownership (TCO) for
Centralized vs. Decentralized ERP
Bottom-line:
Decentralized Solutions
Have Higher
Total Cost Of Ownership!
Transforming Army Logistics

35. Cost / Benefit Data …
Centralized ERP TCO does NOT imply a single instance (or project) of an enterprise solution
It does imply a consolidated enterprise-wide architecture that will accommodate all Army Logistical solutions
The recommended goal of “Controlled Redundancy” assures that consolidation supports the end-to-end Army Logistics business processes
A Strategies, Architectures, and Standards Group
(SASG) ensures that the proper design, maintenance, and
execution to the enterprise-wide architecture occurs!
Transforming Army Logistics

36. Outline: Overview and Background Enterprise Architecture Planning
Achieving the Logistics Vision
Integrated Schedule
Institutionalizing the Methodology
Cost and Benefit Data
Conclusions
Transforming Army Logistics

37. Conclusions The solution was approved and fully funded in 2005.
It is now in the DoD budget in a line item that is called the Single Army Logistics Enterprise (SALE).
The SALE struggles, like all modernization initiatives in today’s environment.
Transforming Army Logistics