1. Standardize, Consolidate, and Optimize Financial Management Presented by David M. Fisher Director, Business Transformation Agency Department of Defense
March, 2009

2. BTA Established to Advance Defense Business Transformation
On October 7, 2005 the Deputy Secretary of Defense signed a memorandum establishing the Defense Business Transformation Agency (BTA).
The Agency is specifically responsible as a corporate- level service organization for the DoD, accountable for successful definition and execution of DoD-wide business improvement initiatives and system investments.
The BTA Mission is to guide transformation of business operations throughout the Department of Defense and to deliver Enterprise-level
capabilities that align to
Warfighter needs.

3. BTA’s Six S’s of Success
Strategic Alignment of DoD’s approach to optimizing its business mission area by ensuring a common approach and set of principles that will be consistently governed and evaluated.
Standardize essential operational data, processes, and business rules in order to significantly improve the ability to process and share information throughout the enterprise
Simplify overly complex business rules that unnecessarily complicate operations and lead to expensive and risk-filled solutions
Stovepipe operations must be eliminated from solution design and deployment, so that the historically narrow-focused approach to business gives way to an approach that seeks to optimize end-to-end processes
Streamline core end-to-end business processes to eliminate non-value added activities
Systems and Services must be deployed in a timely and cost effective manner with a conscious focus on sound requirements management and comprehensive risk mitigation

4. Standard Financial Information Structure (SFIS)
Definition: DoD’s common business language that facilitates the consistent collection and reporting of financial information.
Benefits:
Standardizes financial reporting data across DoD.
Enables decision-makers to efficiently compare similar programs and activities across DoD.
Provides decision-makers the level of detail they require for information retrieval and auditability.
Improves the efficiency of maintaining business systems, thereby reducing costly maintenance and translation of non-standard data.
Accomplishments:
Established and maintained SFIS Governance Board that has successfully defined 71 data elements that are engrained in the BEA and IRB process.
Developed SFIS computer-based training application that supports standard implementation and configuration.
Integrated SFIS requirements into the OMB Federal Common Government-wide Accounting Classification (CGAC) requirement.
Next Steps:
Focus on standard implementation and configuration in target business systems.

5. USSGL SFIS Transaction Library
Definition: The U.S. Standard General Ledger (USSGL) SFIS Transaction Library maintains an DoD enterprise-wide standard set of detailed general ledger transaction requirements that incorporate budgetary, proprietary, and memorandum accounts that link to specific business events.
Benefits:
Standardizes account transaction postings across DoD.
Removes interpretation from Treasury’s USSGL high-level guidance.
Decomposes 559 high-level business events and generalized posting guidance from the Treasury Financial Manual into 4,363 detailed business events and specific debit/credit pairings.
Compliant with Treasury, FASAB, OMB and DoD Financial Management Guidance.
Along with SFIS and the BEA, provides an enterprise-wide standard for updating DoD existing and deploying new business systems.
Accomplishments:
Included SFIS element requirements in the USSGL SFIS Library to provide standard implementation guidance.
Updated Library to include all of Treasury’s FY 08 USSGL updates.
Performed Lean Six Sigma analysis to streamline USSGL Library update process.
Next Steps:
Work with Treasury to incorporate these detailed USSGL requirements at the Federal level.

6. DoD Defense Agencies Current Systems Environment
DeCA
(Non-Resales)
DISA
(CS & TSEAS)
DTRA
USUHS
DFAS
CAFRMS
CUFS
DBMS
eBiz
FAMIS
DAU
DTIC
DCAA
DCMA
AFIS
BTA
DARPA
DISA (HQ)
DLSA
WAAS
GAFS
SOMARDS
STANFINS
DoDEA
DoDIG
DPMO
DSCA
DeCA
(Resales)
DSS
MDA
DTSA
JCS
OEA
PFPA
TMA
WHS

7. Target Environment: Organizations and Scope
DAU
DARPA
DeCA
DCAA
DCMA
DFAS
DISA
DLSA
DPMO
Budget-to-Report
Procure-to-Pay
Cost
Accounting
BTA
DSCA
DAI
Acquire-to-Retire
Time
& Labor
DSS
AFIS
Order-to-Fulfill
Budget
Formulation
WHS
DTIC
Management Reporting
DTSA
USUHS
DTRA
DODEA
DODIG
JCS
MDA
OEA
TMA
PFPA

8. Defense Agencies Initiative (DAI)
Program Description
Oracle implementation for Defense Agencies and Field Activities
Pilot site for initial Go-Live: BTA
$400M business annually
~350 users at 4 locations
Contract award to pilot Go-Live in 12 months (October 2008) for ~ $20M
Cost included foundation for the DAI Global Model for all other Agencies
Process-focused teams and scope: Procure-to-Pay; Acquire-to-Retire; Budget-to-Report; Time & Labor; Cost Accounting; Order-to-Fulfill
Approved pilot for all-ERP based Procure-to-Pay including contracts, sourcing, and electronic submission of vendor receipts/invoices
Next round of deployments underway
Success Factors
Program built around horizontal end-to-end processes vice individual functions
Adopt the COTS for scope and approach (only required 7 interfaces for pilot site)
Focus: minimally sufficient solution; can add more complexity later if necessary
Strong, visible, consistent leadership
PM had direct access to Agency Director, who played a hands-on role both during the design and deployment phases
Priority of the program was clear to all agency employees via consistent top-down communications
Strong participation from several Agencies and DFAS for functional expertise, testing, training, data management, and operations
Government ERP experts from BTA assumed leadership for most implementation responsibilities with prime contractor supporting them
Biggest Challenges
Quality of legacy data for conversion
Workforce change management

9. It’s All About Change

10. Referential Integrity in an Exclusively ERP World
P U R C H A S E T O P A Y P R O C E S S
Purchase Requisition
Contract / Sourcing
Purchase Order
Goods Receipt
Invoice Receipt
Expenditure

11. ERP Purchase to Pay Process
Contract Writing System
The Vendor PR
PR Line Number
PR Line Funding ID
PIIN
CLIN
SLIN
Cross Reference Table
PR/PR Line Number/PR Line Funding ID
PO/PO Line Number/PO Line Funding ID
PIIN/CLIN/SLIN
MOCAS System Entitlement
APVM (Prevalidation)
PPVM (Prevalidation)
MATCH
From X-Ref
Ready To
Pay
File
Obligation
Validation
Confirmation
Receiving Activity
Material
PIIN-CLIN-SLIN
Receipt
Report
Receipt Validation By PIIN CLIN SLIN
Invoice
Contract Info
WAWF
Disbursing System
Validation From X-Ref
Unblock
Blocked
Use x-Ref
Disbursement
Disbursement With Contract Info Only
Treasury
EDA
MOCAS System Contract Admin
Manual
Disbursing Outside the ERP
Purchase Requisition
Purchase Order
Goods Receipt
Invoice Receipt
Expenditure PR
PR Line Number
PR Line Funding ID
ERP Purchase to Pay Process
Contracting Outside the ERP
Goods Receipt and Invoice Receipt Outside the ERP