1. Defense Business Transformation
Report on Progress & Challenges

7. Important Progress… DoD Business Enterprise Clarity
Horizontal Business Process Transformation Focus
Business Alignment to Warfighter Needs
Capabilities, not Systems, as Deliverables
Accountability

8. Important Progress… Business Mission Alignment
Real Property & Installation Lifecycle Mgmt
Financial Management
Materiel Supply & Service Management
Weapon System Lifecycle Management
Human Resources Management
Legal IT HR
Plng Budget
Design & Dev
Procure-ment
Storage Transport
Main-tenance
Dispos-ition W A R F I G H T E S
Eliminate stovepipes, drive end-to-end process optimization.

9. Important Progress… Tiered Accountability
DoD-Enterprise Layer
Enterprise Shared Services and System Capabilities
Enterprise Rules and Standards for Interoperability
Navy
Architectures Transition Plans Systems Solutions AF
Army
TRANS COM
DFAS
DLA
DOD Business Transformation Agency
(BTA)
The DoD-Enterprise layer provides the thin “backbone” layer of common services required for full Departmental interoperability – the “corporate requirements” for business operations.
Components design and implement their own solutions within the framework of DoD-Enterprise rules and standards.
We have established the Defense Business Transformation Agency to execute DOD Enterprise Level Transformation.

10. Important Progress… Enterprise Transition Plan (ETP)

11. Our MOST Important Progress… Delivering Business Capabilities
Selected Highlights From Our First Six Months:
Deployed hand-held based common supplier engagement capability for unit level contingency contracting in theater.
Completed initial military equipment valuations for warfighting assets – a major step in financial visibility.
Began implementation of enterprise level spend analysis capability for DOD wide procurement activity.
Completed financial reporting capabilities using Standard Fiscal Codes for the Army and six defense agencies.
Established a DOD wide warehouse for defense civilian personnel data.

12. Business Transformation Agency Roles & Responsibilities
Translating DOD Enterprise Priorities into Technical Requirements
Investment Oversight Ensuring Alignment to Corporate Requirements
Accountability for the DOD Business Enterprise Architecture and Transition Plan
Program Execution for DOD Enterprise Business System Acquisition Programs
Ensure alignment of priorities to warfighter needs

14. Much Work Remains… Establish a culture of continuous improvement
Continue delivering on commitments in the Enterprise Transition Plan
Close remaining open issues in the Business Enterprise Architecture
Build a culture of enterprise business excellence in the newly established Business Transformation Agency
Build momentum

15. Why We Are Succeeding
Joint Warfighting demands integrated operations – including business operations.
Unprecedented senior leadership engagement at the top of the DOD.
Defined DOD Corporate requirements and resultant impact on scope management – a private industry-style approach.
Continuity – ability to leverage learning from past three years and focus now on implementation.

16. BACK-UP
(Financial Audit)

17. Integrated Financial Improvement And Audit Readiness Picture
What about the clean audit? Financial Improvement and Audit Readiness Plan (FIAR)
DoD
FIAR Plan
Roadmap to
Financial
Improvement and
Auditability
Integrated Financial Improvement And
Audit Readiness Picture
Enterprise
Transition Plan and
Initiatives
Component
Financial
Improvement
Plans
OIG
Assessment
and Audit
Plans
Component
Transition
Plans

18. Projected Audit Progress ’05 - ’07
2006
Assets
Liabilities
No Changes
Military Equipment - Baseline
Army - $96, %
Navy - $140, %
Air Force - $92, %
FY 2006 Additions:
Military Retirement Fund
- $197, %
Medicare-Eligible Retiree Health
Care Fund (Qualified) - $60, %
2005
-$895, %
Care Fund (Qualified) -$538, %

19. Projected Audit Progress ’07 - ’08
2007
Assets
FY 2007 Additions:
Fund Balance With Treasury
Air Force GF - $62, %
Liabilities
Army GF- $86, %
Air Force WCF - $1,164.2 – 0.1%
Real Property
DLA - $1, %
No Changes
2008
FY 2008 Additions:
Environmental Liabilities
Navy Ships/Subs - $12, %

20. Projected Audit Progress ’09 - ’10
Environmental Liabilities
Air Force DERP - $6, %
Medicare-Eligible Retiree
Health Care Fund -$538, %
Army DERP & Non DERP
-$40, %
Navy DERP & Non DERP
- $4, %
DLA DERP & Non DERP
- $ <0.1%
Health Care Fund - $60, %
Fund Balance With Treasury
Navy GF & WCF- $86, %
DLA GF & WCF- $ <0.1%
Real Property
Army - $22, %
Navy - $20, %
Air Force CIP -$4, %
(Navy achieves FASAB Compliance for Military Equipment.)
FY 2010 Additions:
2009
Assets
Liabilities
2010
FY 2009 Additions: