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Architecture led procurement

This document discusses improving the procurement process through architecture-led methods. It acknowledges that many organizations have outsourced IT functions except for architecture and project management, creating architectural risks. The presentation outlines requirements for architectural concepts, techniques, knowledge and skills to exert architectural control over third parties. It proposes using architecture frameworks like TOGAF to drive supplier selection and ensure procurement aligns with enterprise architectures. This can lead to faster, simpler and cheaper procurement.

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Architecture-Led Procurement RICHARD VERYARD EA Forum, March 2012
About this presentation  This is an expanded version  It is acknowledged that many of the slides presented at the organizations have outsourced EA Forum in March 2012. everyone in IT except for the architects and project managers.  Following lively discussion at the event, there was broad  This means there are some complex recognition of flaws in the architectural risks calling for new procurement process, and a architectural concepts, techniques, agreed need for an expanded knowledge and skills. role for architects in this process.  This presentation outlines some of these requirements.
Agenda  The role of solution  Architecture-based and enterprise methods for exerting architecture in the architectural control procurement process over third parties.  And vice versa.
Perspectives on procurement Roles Frameworks  Purchasing, commercial  ITIL / ISPL and legal  MSP  Programme and project management These deal very competently with many of the commercial  Risk management risks, but fail to manage the architectural risks.
Procurement Risks Commercial risks Architectural risks ? ?
Procurement agenda General Objectives Architectural Dimensions Value for money  Short-term // long-term  Cost-quality optimization  Local // global Continuity of Supply  Part // whole  Standard commodity  Integration // differentiation  Supplier longevity Total through-life cost of ownership  Ease of Use  Flexibility
Why should architects lead procurement?  The lifetime costs of a  Architectural requirements complex solution depend should drive supplier critically on its architectural selection and negotiation, and qualities. should be clearly specified  Many organizations outsource and enforced throughout the development to external procurement process. companies, but this only  Any organization that fails to makes sense under strict do this is vulnerable to short- architectural control. term thinking or cynical exploitation by its suppliers.
TOGAF Faster, simpler, and cheaper  Customers who design and procurement: implement enterprise  Buying decisions are simpler, architectures using TOGAF are because the information ensured of a design and a governing procurement is readily procurement specification that available in a coherent plan will greatly facilitate open systems implementation, and will enable  The procurement process is faster the benefits of open systems to - maximizing procurement speed accrue to their organizations with and flexibility without sacrificing reduced risk. architectural coherence  The ability to procure heterogeneous, multi-vendor open systems  The ability to secure more economic capabilities TOGAF 9.1 Chapter 1
TOGAF  The ADM is one of the many  Consider the need for … corporate processes that links to procurement make up the corporate processes (6.4) governance model. It is  Assess and define the complementary to, and procurement requirements supportive of, other standard (7.4) program management processes, such as those for authorization, risk management, business planning and budgeting, development planning, systems development, and procurement. (5.3)
Games people play … Underbidding Winner‟s Curse  The supplier puts in an  The successful bidder artificially low bid for the is driven bankrupt. initial contract, hoping to make money from add-on work and maintenance.  The supplier benefits commercially from inflexibility in the specification.
Calculating Total Cost of Ownership Depends on Who has this sort of  IT architectures information? (legacy, transition and  Bean-counters? target)  Legal department?  Capability profiles  Purchasing clerks?  Usage requirements  Architects?  Interoperability requirements  …
Which procurement method? Traditional Design-and- Management Tri-Partite Build • Design • Designer is • Project precedes responsible for management construction construction coordinates • Complications • Or perhaps design and when design construction is construction. runs parallel to responsible for construction design
Multi-Sourcing Outsource Direct Manage coordination to collaboration interactions a prime between inhouse V contractor V subcontractors
Zero-Based Requirements? Brownfield Zero-Based V Requirements Procurement http://rvsoapbox.blogspot.co.uk/2010/09 /zero-based-requirements.html
Outsourcing and Knowledge Managment
Hedgehogs and Foxes one big lots of small outsourcing deal outsourcing deals
Procurement and innovation Strategy drives procurement Enhanced Services Model "When it comes to procurement, for the better 'In the current model contractor‟s incentives are to part of five decades, the trend has gone towards provide the minimal solution that meets the lower numbers as technology gains made each requirements. As the requirements grow and system more capable. In recent years these change, Engineering Change Proposals (ECPs) are platforms have grown ever more baroque, ever required, resulting in real or perceived “scope more costly, are taking longer to build, and are creep”, and always in cost growth. This results in being fielded in ever dwindling quantities.“ delays in deployment and fielded capability. "The issue then becomes how we build this kind Under the enhanced services model, the contractor of innovative thinking and flexibility into our rigid will be able to exceed the requirements by procurement processes here at home. The key is to providing expanded or additional services. These make sure that the strategy and risk assessment could be “sold” to other users as a common drives the procurement, rather than the other way reusable service that others do not have to around.“ develop. The additional services could also provide US Secretary of Defense Robert M. the basis for further development as the system Gates, September 2008 matures.„ NDIA 2008
Twin Track Approach Mutually Reinforcing Disruptive Innovation Platform Agile “The platform must standardise “For any elements of IT outside and simplify core elements of the platform, new opportunities government IT.” should be explored using agile principles.” “The platform frees up resource … while successful agile to focus on new opportunities … innovations are rapidly scaled up Value for Money when incorporated into the platform” Economics of Scope Economics of Alignment Economics of Scale
On-Demand Services and Open Sauce What if we could buy individual shots Situation of Tabasco on demand …  Millions of homes, bars  Lower (but more regular) and restaurants have a small revenues from existing bottle of sauce - just in customers? case of need  Higher revenues from new  Sauce not used very often - customers? therefore very infrequent  Faster impact of any repurchase perceived taste differential  Growing availability of between Tabasco and its alternative flavours competitors?
Shared Services and Open Sauce “Your older brother owns all the bottles of hot Why does your mom grant a monopoly to your sauce, and your mom makes you buy from him brother? rather than the kid in the next block ... if you  Because it improves your brother's supply-side don't like his taste and choose not to have hot economics. sauce, then he still justifies his existence because  He needs a critical mass of customers to be economically he's still the household standard.” viable. She doesn't think he is ready for the harsh realities of the open market.  Because it improves your own demand-side transaction costs.  Your mom doesn't want you traipsing around the neighbourhood trying out alternative sauces when you should be getting on with your homework. Your mom thinks - argue with her if you dare - that homework is a core activity whereas sauce-procurement is non-core.  Because it reduces the overall complexity of the household, reduces risk and increases accountability.  If you get sick, she knows exactly who to blame.
Shared Services and Open Sauce 2 Do you recognize these issues  Who gets to choose the flavour of sauce? in enterprise shared services? Does the casting vote always go to the loudest or most awkward member of the family?  Do some members of the family go without sauce altogether, rather than use the majority choice?  Does trading sauce with the neighbours have any positive side-effects - for example relationship-building (trust) or learning new recipes (innovation)?  And shouldn't your brother be getting on with his homework as well, instead of wasting his time on a venture that is only viable with Mom's intervention?
MOD Procurement “The Ministry of Defence has a That situation might substantially overheated equipment sound familiar to a lot of managers, not programme, with too many types of just in the defence equipment being ordered for too large sector. a range of tasks at too high a specification. This programme is But often the corporate response unaffordable on any likely projection is to go to the of future budgets.” opposite extreme. [October 2009]
The demand for Agility Managing three diverging tempos Divergence of tempos increases costs Divergence of tempos increases Agility means always able to align Agility means being being able to of alignment align composite capabilities to composite capabilities to costs of alignment demand at campaign tempo demand at campaign tempo Requirement Defence Enterprise Gap = Need Acquisition Demand/ Campaign Threat Acquisition Alignment Tempo (Demand) Tempo Tempo Operational Capability Suppliers Training Operational Equipment Capability Personnel Operational Composite Orchestration Infrastructure Capability Capability Effect Doctrine/Concepts Organization Operational Information Capability Logistics Adapted from: Appropriate Collaboration and Appropriate Competition in C4ISTAR Transformation, Dr Nicholas Whittall RUSI 2007
The Engineering „V‟ and the Alignment „ ‟ supply-side demand-side operational Results from the acquisition space space The variety of compositions is as impossibility of separating Capability important as the most stressing Force design-time from run-time Requirement gaps use for a particular capability Structures Design decomposition Strategic Scenarios Demand/ Effects on Demand/ System Acquisition Tempo Alignment Tempo Threat Threat components Tempo System Synchronization by integration Mission Command Solution Orchestration of Composite Capabilities Operational Capabilities Boxer, P.J. (2007) Managing the SoS Value Cycle, January 2007, http://www.asymmetricdesign.com/archives/85
Modeling across the different scales Demand across a Understanding the alignment processes necessary variety of orchestrations Much greater Afghan border tactical agility Afghan border Kabul Kabul kabu l humi kabul humint isaf hq nt cell bord er isaf hq hale kabul uk gov border isr cell glob humint counter-insurgency domain across a variety of al haw kabul Threat Situations k humint intelligence bord HUMINT would be providing cell the equivalent of the HALE uk gov er hale border kabul input to the Kabul process interdict humint border caoc glob hale intellig ion of border caoc al global tasking kabul border hale ence fleeting atc sync haw hawk humint target cell bm k kabul humint kabul border hale Afghanistan humint kabul humint global on kabul report hawk station intellige nce cell border kabul caoc atc hale border sync tasking hale global border kabul caoc border hawk hale on kabul strike caoc station kabul individual in border intel afghan- disrupting border hale report pakistan command hale global orchestrations. border caoc hawk ato border kabul border caoc caoc kabu kabul sf cell male border l sf caoc ato hale outputs kabu terrorist afghan border kabul l sf escape in strike caoc small boat off kabul ni west coast border sf male Kabul tasking reducing border reaper bord kabul negative strike cell kabul sf er sf political tasking individual in male influence individual in kabul city strik kabul afghan- centre blue e sf on pakistan zone station bord border kabul sf er male kabul sf oper ator border male sf reaper kabul border intelligence border male border report border male drug runners in threat cell male bm strike columbia with deterrence reaper kabul target of value Sea kabul sf border caoc kabul sf tasking intellig tuav strike border kabul ence ato tasking male tuav cell border on tasking male reaper station kabul kabul border tuav sf kabul tuav border strike cell border sf on h450 strike intellige occasional male station nce cell shoot-n-scoot reaper afghan teams in tribal kabul bord report areas kabul tuav tuav er sf h450 prevention bm kabul of tactics border tuav male h450 outputs kabul border tuav maritime cell sf kabul border outputs tuav nimr border sf h450 stinger od intel tasking missiles in border report baghdad city sf centre border border sf cell sf nimrod Otical id substitutes for uav optics… comms goes back nimrod border via their hq sf Terrorist arrest nimrod nimrod on station nimrod nimrod locatin g fleet hq Tribal lands tuav sea ship Like afghanistan… tuav tuav allows us to put video link to sea coastguard to deal with tuav numbers… and provide sea positive id, and also ship PERSISTENCE sea king tuav tuav sea on sea Sea station NB role of AIS to screen stuff tuav sea Air traffic order is tasking sea Air traffic control is king tuav synchronisation sea sea locatin king g arrest sync Put the strike back in so that Baghdad arrest cell close air we can trade immediate patrol torn strike against the team vs sea sea ado take the bunker out arre king on st king station cell tornado Sf will bring the tornado in sea king terrorist ship nimrod arrest escape in tornad tasking sea tasking cell small boat off o king ni west coast locatin g caoc arrest tornado baghdad caoc bomb cell tribal bunker atc sync on uk gov tasking strike target caoc Decisive points baghdad strike baghdad tribal tornado arrest ato coastguard bag hda tribal isaf hq intelligence d hale baghdad baghd fast humint cell tribal isr cell glob baghdad humi cell ad patr nt al intellig bag ol haw ence special branch hda craft k cell d humi tribal baghda baghd fast nt hale baghda d intel ad patrol tribal uk gov d report humint Originating intelligence special craft glob hale tribal caoc branch al tribal hale bm intellige tribal caoc atc global nce cell baghda sync haw baghd hawk d k ad interce humint humint ption baghda stinger coastgu fast tribal tasking da missiles in ard patrol and hale Tribal Lands baghdad humint arrest baghdad city tasking boat global caoc special dependent on the baghda on centre branch hawk d station baghd cell special baghda humint ad branch hale caoc d intel tribal tribal hale on iraq hq humint tasking hale tribal global station bagdha tribal caoc hawk d report tribal baghda hale hale d caoc baghda tribal global d caoc hawk baghda baghda humint ato d caoc d tribal tasking male tuav humint caoc uk gov baghda tribal ato strike hale d tuav caoc tasking tribal tasking ato outputs tribal reaper baghd strike ad baghda d male tuav humint tribal baghdad tuav h450 tasking strike cell baghd strike interdiction of ad tribal reaper strike cell tuav tribal h450 male strik baghdad tuav baghda d tuav e bm h450 baghda d tuav tribal outputs male oper occasional baghda ator shoot-n-scoot d tuav tribal teams in tribal h450 male areas Tribal reaper male intelligence tribal male tribal tribal tribal cell male bm strike reaper tribal sf bunker tribal strike intellig male ence tribal on cell male tribal reaper station fleeting targets tribal intellige tribal nce cell male lands reaper tribal tribal report sf male tribal tribal sf outputs on tribal sf station sf tribal intel tasking tribal report tribal sf Baghdad tribal sf cell tribal sf tribal sf Boxer, P.J. (2009) Valuing Agility; A Demand-led Approach to Capability Management
Analysis across the different scales Cohesion-based costing Modeling the variety of Analysing the relationships between the Generating cohesion orchestrations different layers of alignment costing templates Modeling Alignment Processes Analyzing alignment to demand Costing Cohesion of Mission Capabilities traceventindividual_in_afghan-pakistan_border c_sitnindividual_in_afghan-pakistan_border unitorderborder_reaper_strike_cell traceventborder_male_on_station channelborder_reaper_strike_cell traceventborder_hale_on_station unitorderborder_caoc_atc_sync traceventborder_male_outputs traceventborder_sf_on_station unitorderafghan_border_strike traceventborder_male_strike unitorderborder_male_bm unitorderborder_hale_bm channelborder_male_bm channelborder_hale_bm unitorderborder_isr_cell traceventafghan_report unitorderborder_sf_cell channelborder_isr_cell channelborder_sf_cell 5-6col1 x 5 orchnafghan_border_strike 1 1 1 1 1 1 1 1 1 1 1 outcomeborder_hale_on_station 1 1 1 1 1 1 outcomeborder_male_on_station 1 1 1 1 1 1 outcomeborder_male_strike 1 1 1 1 1 1 outcomeborder_sf_on_station 1 1 1 1 khowborder_sf 1 1 1 1 1 1 khowborder_male_strike 1 1 1 1 1 1 1 khowborder_hale_global_hawk 1 1 1 designborder_hale_global_hawk 1 1 designborder_male_operator 1 1 1 1 1 1 1 capyborder_hale_global_hawk 1 1 capyborder_male_reaper 1 1 1 1 1 capyborder_sf 1 1 1 1 1 systemborder_hale_global_hawk 1 1 systemborder_male_reaper 1 1 1 1 1 1 systemborder_sf 1 1 processborder_hale_global_hawk 1 1 processborder_male_reaper 1 1 1 1 1 processborder_sf 1 1 1 1 1 dprocessborder_hale_global_hawk 1 dprocessborder_male_reaper 1 1 1 1 The ability to analyse across different scales offers two useful outputs:  The cohesion costs of any particular decisive point in a campaign  The range of possible costs across a variety of decisive points across a range of campaigns Boxer, P.J. (2009) Valuing Agility; A Demand-led Approach to Capability Management
The Economics of Agility Observations Challenge Defence acquisition - just like systems acquisition  "Meeting the campaign tempo then depends on the alignment tempo possible, which in most anywhere - operates on a much slower tempo turn depends on the acquisition tempo at than the requirements of the business. which gaps can be filled. Any slowness in  The "business" of a military organization is running acquisition tempo leads to increased bricolage military campaigns; thus when writing for the defence and process short cuts to enable the alignment community, Whittall and Boxer refer to the Campaign tempo to keep up with the campaign tempo. Tempo and the Acquisition Tempo. Thus, „agility‟ finds its richest expression in the ability of the alignment tempo to meet the There is a complex set of activities (such as required campaign tempo at the lowest cost – orchestration, customization, and improvisation) i.e. to maximise the value-for-defence.“ involved in bridging between Demand (the The challenge is then to produce just demands of the campaign or business) and Supply enough variety within the acquisition to (the procurement of specific systems and devices). optimize the economics of alignment. These activities operate on an intermediate tempo.  Boxer has developed a technique of Cohesion-  Whittall and Boxer call this the Alignment Tempo. Based Costing (not yet published), which "offers a means to attach a value to the cost of introducing flexibility".
What do architects need to understand? Economics Systems Engineering  Economies and  System of system diseconomies of scale engineering  Economies of agility  Requisite variety / asymmetric demand  Perverse incentives / moral hazard
Future Events Future Events References / Acknowledgements Pilot Workshop – June Philip Boxer & Nicholas 2012 Whittall (SEI, RUSI) BCS Certification/Diploma Sandy Kemsley under discussion Links Forthcoming book RVsoapbox.BlogSpot.com asymmetricdesign.com leanpub.com/ twitter.com/richardveryard archledprocurement

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Architecture led procurement

  • 1.
    Architecture-Led Procurement RICHARD VERYARD EA Forum, March 2012
  • 2.
    About this presentation  This is an expanded version  It is acknowledged that many of the slides presented at the organizations have outsourced EA Forum in March 2012. everyone in IT except for the architects and project managers.  Following lively discussion at the event, there was broad  This means there are some complex recognition of flaws in the architectural risks calling for new procurement process, and a architectural concepts, techniques, agreed need for an expanded knowledge and skills. role for architects in this process.  This presentation outlines some of these requirements.
  • 3.
    Agenda  The role of solution  Architecture-based and enterprise methods for exerting architecture in the architectural control procurement process over third parties.  And vice versa.
  • 4.
    Perspectives on procurement Roles Frameworks  Purchasing, commercial  ITIL / ISPL and legal  MSP  Programme and project management These deal very competently with many of the commercial  Risk management risks, but fail to manage the architectural risks.
  • 5.
    Procurement Risks Commercial risks Architectural risks ? ?
  • 6.
    Procurement agenda General Objectives Architectural Dimensions Value for money  Short-term // long-term  Cost-quality optimization  Local // global Continuity of Supply  Part // whole  Standard commodity  Integration // differentiation  Supplier longevity Total through-life cost of ownership  Ease of Use  Flexibility
  • 7.
    Why should architectslead procurement?  The lifetime costs of a  Architectural requirements complex solution depend should drive supplier critically on its architectural selection and negotiation, and qualities. should be clearly specified  Many organizations outsource and enforced throughout the development to external procurement process. companies, but this only  Any organization that fails to makes sense under strict do this is vulnerable to short- architectural control. term thinking or cynical exploitation by its suppliers.
  • 8.
    TOGAF Faster, simpler, andcheaper  Customers who design and procurement: implement enterprise  Buying decisions are simpler, architectures using TOGAF are because the information ensured of a design and a governing procurement is readily procurement specification that available in a coherent plan will greatly facilitate open systems implementation, and will enable  The procurement process is faster the benefits of open systems to - maximizing procurement speed accrue to their organizations with and flexibility without sacrificing reduced risk. architectural coherence  The ability to procure heterogeneous, multi-vendor open systems  The ability to secure more economic capabilities TOGAF 9.1 Chapter 1
  • 9.
    TOGAF  The ADM is one of the many  Consider the need for … corporate processes that links to procurement make up the corporate processes (6.4) governance model. It is  Assess and define the complementary to, and procurement requirements supportive of, other standard (7.4) program management processes, such as those for authorization, risk management, business planning and budgeting, development planning, systems development, and procurement. (5.3)
  • 10.
    Games people play… Underbidding Winner‟s Curse  The supplier puts in an  The successful bidder artificially low bid for the is driven bankrupt. initial contract, hoping to make money from add-on work and maintenance.  The supplier benefits commercially from inflexibility in the specification.
  • 11.
    Calculating Total Costof Ownership Depends on Who has this sort of  IT architectures information? (legacy, transition and  Bean-counters? target)  Legal department?  Capability profiles  Purchasing clerks?  Usage requirements  Architects?  Interoperability requirements  …
  • 12.
    Which procurement method? Traditional Design-and- Management Tri-Partite Build • Design • Designer is • Project precedes responsible for management construction construction coordinates • Complications • Or perhaps design and when design construction is construction. runs parallel to responsible for construction design
  • 13.
    Multi-Sourcing Outsource Direct Manage coordination to collaboration interactions a prime between inhouse V contractor V subcontractors
  • 14.
    Zero-Based Requirements? Brownfield Zero-Based V Requirements Procurement http://rvsoapbox.blogspot.co.uk/2010/09 /zero-based-requirements.html
  • 15.
  • 16.
    Hedgehogs and Foxes onebig lots of small outsourcing deal outsourcing deals
  • 17.
    Procurement and innovation Strategydrives procurement Enhanced Services Model "When it comes to procurement, for the better 'In the current model contractor‟s incentives are to part of five decades, the trend has gone towards provide the minimal solution that meets the lower numbers as technology gains made each requirements. As the requirements grow and system more capable. In recent years these change, Engineering Change Proposals (ECPs) are platforms have grown ever more baroque, ever required, resulting in real or perceived “scope more costly, are taking longer to build, and are creep”, and always in cost growth. This results in being fielded in ever dwindling quantities.“ delays in deployment and fielded capability. "The issue then becomes how we build this kind Under the enhanced services model, the contractor of innovative thinking and flexibility into our rigid will be able to exceed the requirements by procurement processes here at home. The key is to providing expanded or additional services. These make sure that the strategy and risk assessment could be “sold” to other users as a common drives the procurement, rather than the other way reusable service that others do not have to around.“ develop. The additional services could also provide US Secretary of Defense Robert M. the basis for further development as the system Gates, September 2008 matures.„ NDIA 2008
  • 18.
    Twin Track Approach Mutually Reinforcing Disruptive Innovation Platform Agile “The platform must standardise “For any elements of IT outside and simplify core elements of the platform, new opportunities government IT.” should be explored using agile principles.” “The platform frees up resource … while successful agile to focus on new opportunities … innovations are rapidly scaled up Value for Money when incorporated into the platform” Economics of Scope Economics of Alignment Economics of Scale
  • 19.
    On-Demand Services andOpen Sauce What if we could buy individual shots Situation of Tabasco on demand …  Millions of homes, bars  Lower (but more regular) and restaurants have a small revenues from existing bottle of sauce - just in customers? case of need  Higher revenues from new  Sauce not used very often - customers? therefore very infrequent  Faster impact of any repurchase perceived taste differential  Growing availability of between Tabasco and its alternative flavours competitors?
  • 20.
    Shared Services andOpen Sauce “Your older brother owns all the bottles of hot Why does your mom grant a monopoly to your sauce, and your mom makes you buy from him brother? rather than the kid in the next block ... if you  Because it improves your brother's supply-side don't like his taste and choose not to have hot economics. sauce, then he still justifies his existence because  He needs a critical mass of customers to be economically he's still the household standard.” viable. She doesn't think he is ready for the harsh realities of the open market.  Because it improves your own demand-side transaction costs.  Your mom doesn't want you traipsing around the neighbourhood trying out alternative sauces when you should be getting on with your homework. Your mom thinks - argue with her if you dare - that homework is a core activity whereas sauce-procurement is non-core.  Because it reduces the overall complexity of the household, reduces risk and increases accountability.  If you get sick, she knows exactly who to blame.
  • 21.
    Shared Services andOpen Sauce 2 Do you recognize these issues  Who gets to choose the flavour of sauce? in enterprise shared services? Does the casting vote always go to the loudest or most awkward member of the family?  Do some members of the family go without sauce altogether, rather than use the majority choice?  Does trading sauce with the neighbours have any positive side-effects - for example relationship-building (trust) or learning new recipes (innovation)?  And shouldn't your brother be getting on with his homework as well, instead of wasting his time on a venture that is only viable with Mom's intervention?
  • 22.
    MOD Procurement “The Ministryof Defence has a That situation might substantially overheated equipment sound familiar to a lot of managers, not programme, with too many types of just in the defence equipment being ordered for too large sector. a range of tasks at too high a specification. This programme is But often the corporate response unaffordable on any likely projection is to go to the of future budgets.” opposite extreme. [October 2009]
  • 23.
    The demand forAgility Managing three diverging tempos Divergence of tempos increases costs Divergence of tempos increases Agility means always able to align Agility means being being able to of alignment align composite capabilities to composite capabilities to costs of alignment demand at campaign tempo demand at campaign tempo Requirement Defence Enterprise Gap = Need Acquisition Demand/ Campaign Threat Acquisition Alignment Tempo (Demand) Tempo Tempo Operational Capability Suppliers Training Operational Equipment Capability Personnel Operational Composite Orchestration Infrastructure Capability Capability Effect Doctrine/Concepts Organization Operational Information Capability Logistics Adapted from: Appropriate Collaboration and Appropriate Competition in C4ISTAR Transformation, Dr Nicholas Whittall RUSI 2007
  • 24.
    The Engineering „V‟and the Alignment „ ‟ supply-side demand-side operational Results from the acquisition space space The variety of compositions is as impossibility of separating Capability important as the most stressing Force design-time from run-time Requirement gaps use for a particular capability Structures Design decomposition Strategic Scenarios Demand/ Effects on Demand/ System Acquisition Tempo Alignment Tempo Threat Threat components Tempo System Synchronization by integration Mission Command Solution Orchestration of Composite Capabilities Operational Capabilities Boxer, P.J. (2007) Managing the SoS Value Cycle, January 2007, http://www.asymmetricdesign.com/archives/85
  • 25.
    Modeling across thedifferent scales Demand across a Understanding the alignment processes necessary variety of orchestrations Much greater Afghan border tactical agility Afghan border Kabul Kabul kabu l humi kabul humint isaf hq nt cell bord er isaf hq hale kabul uk gov border isr cell glob humint counter-insurgency domain across a variety of al haw kabul Threat Situations k humint intelligence bord HUMINT would be providing cell the equivalent of the HALE uk gov er hale border kabul input to the Kabul process interdict humint border caoc glob hale intellig ion of border caoc al global tasking kabul border hale ence fleeting atc sync haw hawk humint target cell bm k kabul humint kabul border hale Afghanistan humint kabul humint global on kabul report hawk station intellige nce cell border kabul caoc atc hale border sync tasking hale global border kabul caoc border hawk hale on kabul strike caoc station kabul individual in border intel afghan- disrupting border hale report pakistan command hale global orchestrations. border caoc hawk ato border kabul border caoc caoc kabu kabul sf cell male border l sf caoc ato hale outputs kabu terrorist afghan border kabul l sf escape in strike caoc small boat off kabul ni west coast border sf male Kabul tasking reducing border reaper bord kabul negative strike cell kabul sf er sf political tasking individual in male influence individual in kabul city strik kabul afghan- centre blue e sf on pakistan zone station bord border kabul sf er male kabul sf oper ator border male sf reaper kabul border intelligence border male border report border male drug runners in threat cell male bm strike columbia with deterrence reaper kabul target of value Sea kabul sf border caoc kabul sf tasking intellig tuav strike border kabul ence ato tasking male tuav cell border on tasking male reaper station kabul kabul border tuav sf kabul tuav border strike cell border sf on h450 strike intellige occasional male station nce cell shoot-n-scoot reaper afghan teams in tribal kabul bord report areas kabul tuav tuav er sf h450 prevention bm kabul of tactics border tuav male h450 outputs kabul border tuav maritime cell sf kabul border outputs tuav nimr border sf h450 stinger od intel tasking missiles in border report baghdad city sf centre border border sf cell sf nimrod Otical id substitutes for uav optics… comms goes back nimrod border via their hq sf Terrorist arrest nimrod nimrod on station nimrod nimrod locatin g fleet hq Tribal lands tuav sea ship Like afghanistan… tuav tuav allows us to put video link to sea coastguard to deal with tuav numbers… and provide sea positive id, and also ship PERSISTENCE sea king tuav tuav sea on sea Sea station NB role of AIS to screen stuff tuav sea Air traffic order is tasking sea Air traffic control is king tuav synchronisation sea sea locatin king g arrest sync Put the strike back in so that Baghdad arrest cell close air we can trade immediate patrol torn strike against the team vs sea sea ado take the bunker out arre king on st king station cell tornado Sf will bring the tornado in sea king terrorist ship nimrod arrest escape in tornad tasking sea tasking cell small boat off o king ni west coast locatin g caoc arrest tornado baghdad caoc bomb cell tribal bunker atc sync on uk gov tasking strike target caoc Decisive points baghdad strike baghdad tribal tornado arrest ato coastguard bag hda tribal isaf hq intelligence d hale baghdad baghd fast humint cell tribal isr cell glob baghdad humi cell ad patr nt al intellig bag ol haw ence special branch hda craft k cell d humi tribal baghda baghd fast nt hale baghda d intel ad patrol tribal uk gov d report humint Originating intelligence special craft glob hale tribal caoc branch al tribal hale bm intellige tribal caoc atc global nce cell baghda sync haw baghd hawk d k ad interce humint humint ption baghda stinger coastgu fast tribal tasking da missiles in ard patrol and hale Tribal Lands baghdad humint arrest baghdad city tasking boat global caoc special dependent on the baghda on centre branch hawk d station baghd cell special baghda humint ad branch hale caoc d intel tribal tribal hale on iraq hq humint tasking hale tribal global station bagdha tribal caoc hawk d report tribal baghda hale hale d caoc baghda tribal global d caoc hawk baghda baghda humint ato d caoc d tribal tasking male tuav humint caoc uk gov baghda tribal ato strike hale d tuav caoc tasking tribal tasking ato outputs tribal reaper baghd strike ad baghda d male tuav humint tribal baghdad tuav h450 tasking strike cell baghd strike interdiction of ad tribal reaper strike cell tuav tribal h450 male strik baghdad tuav baghda d tuav e bm h450 baghda d tuav tribal outputs male oper occasional baghda ator shoot-n-scoot d tuav tribal teams in tribal h450 male areas Tribal reaper male intelligence tribal male tribal tribal tribal cell male bm strike reaper tribal sf bunker tribal strike intellig male ence tribal on cell male tribal reaper station fleeting targets tribal intellige tribal nce cell male lands reaper tribal tribal report sf male tribal tribal sf outputs on tribal sf station sf tribal intel tasking tribal report tribal sf Baghdad tribal sf cell tribal sf tribal sf Boxer, P.J. (2009) Valuing Agility; A Demand-led Approach to Capability Management
  • 26.
    Analysis across thedifferent scales Cohesion-based costing Modeling the variety of Analysing the relationships between the Generating cohesion orchestrations different layers of alignment costing templates Modeling Alignment Processes Analyzing alignment to demand Costing Cohesion of Mission Capabilities traceventindividual_in_afghan-pakistan_border c_sitnindividual_in_afghan-pakistan_border unitorderborder_reaper_strike_cell traceventborder_male_on_station channelborder_reaper_strike_cell traceventborder_hale_on_station unitorderborder_caoc_atc_sync traceventborder_male_outputs traceventborder_sf_on_station unitorderafghan_border_strike traceventborder_male_strike unitorderborder_male_bm unitorderborder_hale_bm channelborder_male_bm channelborder_hale_bm unitorderborder_isr_cell traceventafghan_report unitorderborder_sf_cell channelborder_isr_cell channelborder_sf_cell 5-6col1 x 5 orchnafghan_border_strike 1 1 1 1 1 1 1 1 1 1 1 outcomeborder_hale_on_station 1 1 1 1 1 1 outcomeborder_male_on_station 1 1 1 1 1 1 outcomeborder_male_strike 1 1 1 1 1 1 outcomeborder_sf_on_station 1 1 1 1 khowborder_sf 1 1 1 1 1 1 khowborder_male_strike 1 1 1 1 1 1 1 khowborder_hale_global_hawk 1 1 1 designborder_hale_global_hawk 1 1 designborder_male_operator 1 1 1 1 1 1 1 capyborder_hale_global_hawk 1 1 capyborder_male_reaper 1 1 1 1 1 capyborder_sf 1 1 1 1 1 systemborder_hale_global_hawk 1 1 systemborder_male_reaper 1 1 1 1 1 1 systemborder_sf 1 1 processborder_hale_global_hawk 1 1 processborder_male_reaper 1 1 1 1 1 processborder_sf 1 1 1 1 1 dprocessborder_hale_global_hawk 1 dprocessborder_male_reaper 1 1 1 1 The ability to analyse across different scales offers two useful outputs:  The cohesion costs of any particular decisive point in a campaign  The range of possible costs across a variety of decisive points across a range of campaigns Boxer, P.J. (2009) Valuing Agility; A Demand-led Approach to Capability Management
  • 27.
    The Economics ofAgility Observations Challenge Defence acquisition - just like systems acquisition  "Meeting the campaign tempo then depends on the alignment tempo possible, which in most anywhere - operates on a much slower tempo turn depends on the acquisition tempo at than the requirements of the business. which gaps can be filled. Any slowness in  The "business" of a military organization is running acquisition tempo leads to increased bricolage military campaigns; thus when writing for the defence and process short cuts to enable the alignment community, Whittall and Boxer refer to the Campaign tempo to keep up with the campaign tempo. Tempo and the Acquisition Tempo. Thus, „agility‟ finds its richest expression in the ability of the alignment tempo to meet the There is a complex set of activities (such as required campaign tempo at the lowest cost – orchestration, customization, and improvisation) i.e. to maximise the value-for-defence.“ involved in bridging between Demand (the The challenge is then to produce just demands of the campaign or business) and Supply enough variety within the acquisition to (the procurement of specific systems and devices). optimize the economics of alignment. These activities operate on an intermediate tempo.  Boxer has developed a technique of Cohesion-  Whittall and Boxer call this the Alignment Tempo. Based Costing (not yet published), which "offers a means to attach a value to the cost of introducing flexibility".
  • 28.
    What do architectsneed to understand? Economics Systems Engineering  Economies and  System of system diseconomies of scale engineering  Economies of agility  Requisite variety / asymmetric demand  Perverse incentives / moral hazard
  • 29.
    Future Events Future Events References / Acknowledgements Pilot Workshop – June Philip Boxer & Nicholas 2012 Whittall (SEI, RUSI) BCS Certification/Diploma Sandy Kemsley under discussion Links Forthcoming book RVsoapbox.BlogSpot.com asymmetricdesign.com leanpub.com/ twitter.com/richardveryard archledprocurement

Editor's Notes

  • #5 http://en.wikipedia.org/wiki/Information_Services_Procurement_Library
  • #11 See Wikipedia for types of auction and strategieshttp://en.wikipedia.org/wiki/Auction#Types_of_auction
  • #12 “For large software purchasers, total cost of ownership is a complex formula requiring an analysis that goes well beyond the generic distinctions between OSS and proprietary software. Governments, for example, are run by a multitude of disparate entities, each with its own unique legacy IT architectures, levels of in-house technical expertise, institutional (i.e., personnel) aptitudes for adapting to technology changes, and requirements for technical integration with other governmental entities as well as the public. As such, the total cost of ownership calculus can vary greatly from one agency to another; and procurement officials require the flexibility to pick and choose from among all available IT and software options in order to fashion the best and most efficient solution for the mission at hand.”http://www.willkie.com/files/tbl_s29Publications%5CFileUpload5686%5C3029%5CGovernment%20Procurement%20of%20Software%20Provident%20Policies%20for%20Ensuring.pdf
  • #13 http://www.thenbs.com/topics/ContractsLaw/articles/whichProcurementMethod.asp
  • #15 http://rvsoapbox.blogspot.co.uk/2010/09/zero-based-requirements.html
  • #17 http://rvsoapbox.blogspot.co.uk/2008/10/credit-crunch-soa-outsourcing.html
  • #18 http://rvsoapbox.blogspot.co.uk/2008/10/enhanced-services.htmlhttp://rvsoapbox.blogspot.co.uk/2008/10/defense-procurement.html
  • #19 http://rvsoapbox.blogspot.co.uk/2011/03/twin-track-approach-to-government-it.htmlhttp://rvsoapbox.blogspot.co.uk/2008/10/defense-procurement.html
  • #23 http://rvsoapbox.blogspot.co.uk/2009/10/asymmetric-demand-for-defence-equipment.html
  • #24 Different icons?
  • #25 The bottom V describes the engineering task as currently understood. It proceeds at an acquisition tempo, and operates within a command economy.The top V going ‘up’ aligns the available capabilities to the particular demand at a readiness tempo that constrains how quickly new types of demand can be responded to. With enough products and services in a market economy, this readiness tempo is good enough to meet emerging forms of demand.The demand itself arises at a tempo that may be faster than the readiness tempo, requiring the enterprise to operate within a support economy in which its key challenge is to meet the demand tempo. The engineering task facing the support economy is to manage the double ‘V’ as a whole. The top V coming ‘down’ identifies gaps in the ability of the supporting infrastructures to support new forms of composition/collaboration at an adequate readiness tempo.The double ‘V’ is a response to a problem – the impossibility of separating design-time from run-time…  run-time is always SoS, and costs-of-alignment arise at run-time, not design-time…  this brings in the issue of ‘how dynamic are the forms of demand’…  you need this driver on the enterprise to push it into the double-‘V’ space.This diagram is a way of summarising the changing nature of the demands made on the Enterprise Architect’s modus operandi.For the effects of the three tempos, see Boxer et al (2008) Changing the Value Equation in Engineering and Acquisition to Align Systems of Systems with Dynamic Mission Needs. 11th Annual Systems Engineering Conference, San Diego.
  • #28 http://rvsoapbox.blogspot.com/2009/08/economics-of-agility.htmlhttp://rvsoapbox.blogspot.co.uk/2009/09/economics-of-agility-2.html