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CHIPS Articles: Department of the Navy Electronic Business: A Revolution in Business Process Reengineering

Department of the Navy Electronic Business: A Revolution in Business Process Reengineering
By CHIPS Magazine - April-June 2001
Background

Electronic Business (eB) is defined as the interchange and processing of information via electronic techniques for accomplishing transactions based on the application of commercial standards and practices. Further, an integral part of implementing eB is the application of process improvement or reengineering to significantly improve business processes. Process improvement or reengineering must be accomplished prior to incorporating technology solutions that facilitate the electronic exchange of business information.

Overview

The Department of the Navy (DON) has embraced eB as the singularly most important tool to modernize, streamline and reduce the cost of operations associated with our business processes and systems. It will directly and significantly improve service to the warfighter. Successful eBusiness implementation will require a cultural change in the way the DON thinks and operates. The DON's ultimate goal for eB is to integrate business process improvement efforts with Web enabling technologies and digital marketplace strategies to ultimately provide better support to the warfighters. To this end DON created the eBusiness Operations Office.

The DON CIO (Chief Information Officer) formally established a dedicated eBusiness Team in February 2000 to develop Departmental policy and strategies to integrate the many current ongoing efforts. Also, an eB Working Group (comprised of the Deputy DON CIO for eB and Security, OPNAV (N41), and ASN(RDA)-(Deputy for Acquisition & Business Management)) was established by and reports to the Revolution in Business Affairs Executive Committee. The eB Working Group Charter calls for facilitating the integration of current eBusiness initiatives and developing a roadmap for implementing an integrated business management process for the DON.

Current Status

The DON CIO eBusiness Team has many efforts underway. Specifically, the team manages eBusiness policy and strategies to include Enterprise Resource Planning (ERP), Smart Card Policy, web-enabling policy for the Department; compliance with the Clinger Cohen Act and its business process reengineering requirements; and the FY2000 Defense Appropriations Act (Section 8121 regarding information technology (IT) database and registration process. To date, the team has developed a DON eBusiness Strategic Plan, assisted in establishing the DON eBusiness Operations Office, and planned two eBusiness educational conferences to further communicate to both DON leadership and working levels the importance of an eB transformation to DON success.

At the direction of Mr. Charles Nemfakos,Deputy Under Secretary of the Navy, the DON CIO eB Team worked with stakeholders to create the DON eBusiness Operations Office. The eBusiness Operations Office charter, signed by the Secretary of the Navy in September 2000, charges the eBusiness Office to be the DON eB innovation cell as well as the DON consolidated card management program office. As an innovation cell, the office has evaluated over 300 "Internet-speed" pilot projects and is developing the pilot project investment portfolio strategy for the Department.

The DON CIO eB Team is also developing a balanced scorecard approach to measuring eB transformation progress. Balanced scorecards are carefully selected sets of metrics that measure key areas of business performance to indicate progress towards meeting goals and objectives and reaching the organization's vision. When deployed throughout an organization, the scorecard provides a proven way to translate strategy into daily activity.

The DON CIO is sponsoring two events to accelerate eB concepts and make clear how they can transform the business processes of the DON. First, DON CIO will sponsor an eBusiness Summit for the senior leadership of the Navy and Marine Corps to further inculcate the concept. The event is planned for summer/fall 2001 at Oracl

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CHIPS is an official U.S. Navy website sponsored by the Department of the Navy (DON) Chief Information Officer, the Department of Defense Enterprise Software Initiative (ESI) and the DON's ESI Software Product Manager Team at Space and Naval Warfare Systems Center Pacific.

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