FOR OFFICIAL USE ONLY ASMC Luncheon Southside Virginia Chapter January 23, 2014

Agenda Credentials Enterprise Resource Planning (ERP) in the Department of Defense (DoD) About the Defense Agencies Initiative (DAI) Financial Transformation Deep Thoughts 2

Credentials About Me 19 years implementing Enterprise Resource Planning (ERP) Systems 9 years with the Department of Defense (DoD) supporting DFAS, DISA, DARPA, DLA, and DCMA 3

ERP in the DoD Lifecycle Spending (source DoDIG) Army (GFEBS, LMP) Navy (NAVY ERP) Air Force (DEAMS) DoD (EBS, DAI) 4

What ERP should be doing 5 Large School District Delivered eCommerce portal for schools to order supplies and receive orders in one business day. Received 1.5 mm rebate from Office Supplier based on strategic sourcing of supplies Government Agency Delivered enterprise process tools to extract data from airline tickets for managerial analysis Foreign Government Consolidated 20 legacy systems and placed 250,000 employees on single payroll, recouping millions in improper payments

Where are the DoD Stories? 6

About DAI 7 The Mission of DAI (March 2007) “Transform the budget, finance, and accounting operations of the DoD Defense Agencies to achieve accurate and reliable financial information in support of financial accountability and effective and efficient decision making throughout the Defense Agencies in support of the missions of the warfighter.” 9,386 CONUS/OCONUS Users 99.55% System Availability 51 billion Obligations Processed 12 Agencies in Production < 5 seconds Average Response Time 92% Electronic Invoices 200 Work Instructions 3% Manual Journal Vouchers

About DAI 8

DAI Moving to Business Outcomes Old Way We are implementing DAI so we (financial statements) can be “auditable” We are eliminating costly and time consuming reconciliations We want to focus on financial management New Way We are building capabilities to automatically track segregation of duties We are solving “root cause” issues for obligation and expenditure variances We want to extend business processes for maximum integration 10

DAI Moving to Business Outcomes Examples Time and Labor Automated leave requests with full audit trail Procure to pay Improved integration with contracting systems (standard line of accounting) Direct disbursing/collecting with Treasury Eliminate system interfaces, improve FBWT Budget formulation Improved tools, forecasting, automation 11

Financial Transformation Deep Thoughts People Process Technology Strategy 12

Conclusion 13 Thank You!