unlocking potential 1 understanding the open business model the value proposition for the government...
TRANSCRIPT
Unlocking Potential1
Understanding the Open Business Model
The value proposition for the government – Learning from industry
DISTRIBUTION STATEMENT A. Approved for public release.
CAPT Paul VanBenthem, Deputy, Navy Open Architecture Implementation, DASN (RDT&E)
The views presented are those of the presenter and do not necessarily represent the views of DoD or its Components.
Unlocking Potential2
DoD and OA
•DoD has long strived to gain benefits from Open Systems Architecture (OSA) approaches•by acquiring data rights and; •contracting with industry to define an open system•Typically resulted in a vendor-specific product line or platform-unique architecture
Unlocking Potential3
DoD Impediments to Transformation•Political contributions help shape policy
• Secure defense contracts/earmarks and influence defense budget to make contracts more likely
• Over $27 million during 2012 campaign cycle• Biggest contributors: L-M, Boeing, GD, NG, UT,
Raytheon• $132 million lobbying dollars spent in 2012
• Biggest spenders: Boeing, UT, L-M
•Acquisition legislative and policy constraints• Stovepipes
• Funding• Program
Source: Center for Responsive Politics, www.opensecrets.org
Unlocking Potential4
Learning from Industry
• DoD can learn from commercial industry's playbook• leverage their “lessons learned” based on product-line
success• Industry has proven that investment in initial
product-line architecture reaps system life cycle cost reductions due to:• integration• Planning for obsolescence• technical refresh• common components and software across platforms
Unlocking Potential5
Typical Industry Standard Practices• Multi-use – multiple levels
• Architecture• Hardware modules and structures• Software• Common core components• Design
• Standardized interfaces• Require use of standard interfaces between modules• Multiple vendors able to produce modules meeting
form/fit/function requirements
Unlocking Potential6
Auto Industry Examples
• Renault• Volkswagen• General Motors
Unlocking Potential7
Renault• “Automakers rapidly are moving toward a new era in
vehicle architectures that promises lower costs, turn-on-a-dime manufacturing and shorter product-development lead times” (WardsAuto, Oct 28, 2013)
Renault CMF architecture concept
Source: http://wardsauto.com/vehicles-amp-technology/big-rewards-hurdles-seen-next-gen-flexible-vehicle-architectures
Unlocking Potential8
Volkswagen•MQB architecture to underpin 39+/- models covering eight size and market segments
•Allows for quicker product development as future vehicles are derived from the existing platform
Photo courtesy WardsAuto, Oct 28, 2013
Source: http://wardsauto.com/vehicles-amp-technology/big-rewards-hurdles-seen-next-gen-flexible-vehicle-architectures
Unlocking Potential9
GM Transformation• GM’s bankruptcy inspired radical change
• GM CEO Fritz Henderson: four core values • customer/product focus• Speed• risk-taking• accountability
• Operating model team• overhauled the company’s bureaucracy• dismantled GM’s bureaucratic “matrix” structure
• Culture transformation team• implemented the new cultural values in the workforce
• Layers of bureaucracy removedSource: http://www.crainsdetroit.com/article/20091109/EMAIL01/911099979/can-a-new-corporate-culture-save-gener
Unlocking Potential10
General Motors• Adopting a more flexible approach
• mixes and matches modules across product portfolio• Modular architectures enable:
• quick reaction to changes in consumer preferences• shorten vehicle development times
• Reduce architectures from 30 in 2010 • to 17 in 2018, core platforms from 39% to 96%• to 99% on core architectures by 2020• to 4 basic vehicle sets in 2025
• Consolidate lead engineering to one center• drive inefficiency out of product-development process
Sources:http://wardsauto.com/management-amp-strategy/gm-vehicle-platform-consolidation-accelerating-product-chief-sayshttp://wardsauto.com/auto-makers/gm-taking-new-approach-global-engineering-vehicle-architectureshttp://wardsauto.com/auto-makers/new-management-team-lifts-veil-gm-strategy
Unlocking Potential11
• Efficient and frequent capability insertion and technology refresh to overcome obsolescence at the lowest possible cost
• Greater mission adaptability and warfighting dominance via re-configuration• Increased efficiencies in ship design, construction, testing, sustainment, and
disposal achieve affordable relevance over the lifecycle
Modular and Open Warship Vision
Top-level Objective: Affordable Relevance over the Life Cycle
Flexible Ship =Platform +Payload +
Growth Margin