New United States Army Business Model to Meet 21st Century Challenges
(MSIAC Success Story)
U.S. Army Enterprise Task Force, Office of Business Transformation (OBT)
The Army would not be able to sustain current and future combat missions without upgrading its business model in order to get the right soldier to the right place at the right time with the proper training and equipment.
The MSIAC is leveraging its expertise in both military and corporate organizational processes to assist OBT in creating an improved Army business model. Subject Matter Experts (SME) handpicked for their in-depth military, as well as corporate experience, blended current industry best practices in a manner to best fit the Army structure to outline a course of action for developing an enterprise assessment framework. The MSIAC applied the solution to the Army’s most critical resource area, the Human Capital Life-Cycle (HCLC), as well as the other Army resource streams. HCLC serves as a basis for refining roles and responsibilities across various agencies within the Army. The MSIAC then conducted comprehensive assessments of the DoD budget process to show how the Army Force Generation (ARFORGEN) model can be better supported. The results were briefed to OBT and will be used across the Army Core Enterprises.
The upgraded business model creates the potential to save lives by enhancing support to the warfighter. From a cost perspective, the US Army has already realized a $40M savings. Investments in enterprise architecture during Fiscal Year (FY) 10 resulted in the identification of redundant architecture tools, the elimination of which resulted in cost avoidance in annual license costs. In addition, FY 10 training fleet readiness averages were a significant improvement over previous years’ averages. The efficiencies developed by using the Lean Six Sigma
approach continue to press for the reduction and elimination of waste and inefficiency. As of January of this year the Army has over 2,000 projects underway that, when implemented under the upgraded business model, recognize a total value of $5.4 billion in financial benefits.
MSIAC is operated by Alion under contract N61339-03-D-0300