Systems Engineering Challenges of the Post SDSR Era

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Overview “We need to transform both the Ministry of Defence itself and the UK Armed Forces…” “We have addressed some complex and sensitive issues that have potentially significant consequences for the Ministry of Defence and the Armed Forces…” “At its heart, Transforming Defence is about delivering a new Operating Model and a smaller, stronger, more efficient Department that takes better, more responsible decisions, that is accountable to, and trusted … for the delivery of modern, well-equipped Armed Forces within an affordable framework which makes every pound spent on Defence count. …” The White Paper Levene Report Blueprint © Crown Copyright 2012

National Security Through Technology – Background • • Buy off the shelf Open competition Open market – diversity of suppliers Increased opportunities for SME – • • • Export successfully Under provision for risk and optimism Need to make difficult decisions – – • • Integrate advanced technologies into standard equipments Sovereignty – – • Flexibility and agility to upgrade Modified off the Shelf – • Intelligent customer Not over-specifying capability requirements Open Systems Common set of open principles & rules – • Innovation, New Entrants, Inward Investment Freedom of action Identify and protect critical areas of technology Working with other countries © Crown Copyright 2012

Some Key Themes • OTS – COTS, Mo. COTS, Mi. OTS, Mo. Mi. COTS !!! – Location of Shelf • Industry, Mo. D, Government – Product Understanding • Don’t Open the Box - wrap environmentally and electronically – Adopt rather than Adapt • Open Systems – Understand Agility • Commercial, Technical, Operational • Key Enablers – Do. D Systems 2020 Report – Model Based Engineering, Platform Based Engineering, Capability on Demand, Trusted System Design • SME / Tier 2 © Crown Copyright 2012

Mo. D SME Procurement – Niteworks Study • Objective – Provide greater understanding of whether wider access to SMEs, technology and innovation can be provided as a result of a greater percentage flow down from the Primes, without adversely impacting the ability of the primes themselves to deliver. – Identify the enablers and blockers • Customised and less onerous supply chain interfaces • Increased use of open systems and architectures • Alternative contracting models that do not preclude SMEs – Background • White Paper, Defence Reform, Materiel Strategy • Mechanism – Niteworks funded activity – pseudo ‘Quick Look’ • 2 workshops with SMEs © Crown Copyright 2012

SME Workshop Insights • Current Situation • Contracting Barriers • Access to Mo. D & Visibility of forward contracts • Mo. D Competence • Implementation of White Paper • SOSA & Open Systems • Breaking systems / contracts into component parts © Crown Copyright 2012

SME Workshop Insights (1) • Current Situation – Better IP protection for SMEs – Mo. D should not try to influence COTS – Bureaucratic • Contracting Barriers – FATS needs refreshing on a rolling basis – Streamline processes • Make small packages of work easier to contract • P 2 P – Simplify List X procedures • Access to Mo. D & Visibility of forward contracts – Publish upcoming contracts – Communications – breakfast briefings, DT published points of contact, open days regardless of PQQ/ITT hurdles © Crown Copyright 2012

SME Workshop Insights (2) • Mo. D Competence – – Implement commercial competency programme Mo. D & Industry commercial dialogue Industry to Mo. D commercial secondments Commercial, PM, engineering training • Implementation of White Paper – Create implementation plan, resource it and monitor progress – Develop KPIs and share with parliament – Capture examples of good behaviour • SOSA & Open Systems – Joint architecture ownership – does Mo. D have the skills – Funded architecture development – SOSA domain champion – key role • Breaking systems / contracts into component parts – Split contracts – modularisation – Engineering processes split © Crown Copyright 2012

SME Workshop Conclusions • Mo. D is not capitalising on its SME resources • Challenges – – – Communications Behaviour & Culture Challenge Commercial Practice Architectural Ownership Skills & Competence • Way forward – Reports available for comment • Tier 1 views – Inject into White Paper Implementation © Crown Copyright 2012

New Operating Model Key Themes • Strengthened financial and performance management • Strengthened decision-making and individual accountability – Service Chiefs empowered to run their Services – Responsibility for setting equipment and support requirements and budgets for DE&S and held to account for providing the forces Defence needs, within budget; • Enhanced joint focus • Improved delivery of enabling services • Getting the best out of people in Defence © Crown Copyright 2012

Future of Systems Engineering in Defence Prime Minister & National Security Council Defence Secretary & Ministers Defence Board Sof. S, Min, PUS, CDS, DGFin, CDM, 3 NEDs Direct Head Office Proposed solution Strategic requirement & budget Agree solution & budget Enable Defence Business Services DE&S Requirement & budget Land Command Air Command Joint Forces Command PJHQ DSF Operations Acquire Operations specific requirement Force Elements DSTL Generate and Develop CDS directive Navy Command Systems & services Industry Defence Infrastructure Requirement Proposed solution Within Joint Forces Command Joint training requirement Account © Crown Copyright 2012

Future of Systems Engineering in Defence • • • Interoperable Capability assurance across and between Command Plans Understanding of Cost System Identification Governance with Authority Agility Engineering Understanding Mo. D – wider Gov, NATO, Comprehensive Approach Defence Secretary & Ministers Defence Board Sof. S, Min, PUS, CDS, DGFin, CDM, 3 NEDs Direct Head Office Proposed solution Strategic requirement & budget Agree solution & budget Enable Defence Business Services Acquire Generate and Develop Ensuring through-life support and an adaptable evolving capability CDS directive Operations specific requirement UOR procurement Operational analysis Understand risk envelope Navy Command DE&S Requirement & budget Land Command Air Command Joint Forces Command Joint training requirement Account Evidence-based decision making support Engineering rigor to the costed and affordable plan PJHQ DSF Within Joint Forces Command Operations DSTL Proposed solution Force Elements Defence Infrastructure Requirement Systems & services Industry Post DE&S Materiel Strategy SE across Delivery Teams • Tech coherence • Gatekeepers with authority • Authoritative tech reviews & repeatable processes Systems thinking across all Government Departments? Systems Thinking educated Treasury? Prime Minister & National Security Council Gap Analysis Understand risk envelope Coherent Capability Planning across all the Front Line Commands • Agility Engineering • TLCM Planning • X-DLOD Trading • JFC Driving Joint Coherence • Understanding cost / value of coherence © Crown Copyright 2012

Future of Systems Engineering in Defence Prime Minister & National Security Council Defence Secretary & Ministers Defence Board Sof. S, Min, PUS, CDS, DGFin, CDM, 3 NEDs Direct Head Office Proposed solution Strategic requirement & budget Agree solution & budget Enable Defence Business Services Acquire Generate and Develop CDS directive Operations specific requirement Navy Command DE&S Requirement & budget Land Command Air Command Joint Forces Command PJHQ DSF Operations DSTL Proposed solution Force Elements Defence Infrastructure Requirement Systems & services Industry Systems Engineering • Enable Exports • Boundary Understanding • Assumption Dependency Mgt • Coherent Knowledge Base • Risk – elicitation • Risk – management • Understanding VFM • Shared Architecture Ownership • Market / COTS Understanding • Change Management Within Joint Forces Command Joint training requirement Account © Crown Copyright 2012

Systems Approach Standard - Contributions Template Evidence-based decision making support ACCOUNT Systems thinking across all Government Departments? DIRECT OPERATE Coherent Capability Planning across all the Front Line Commands Interoperable Capability assurance across and between Command Plans DEVELOP Ensuring through-life support and an adaptable evolving capability Post DE&S Materiel Strategy SE across Delivery Teams ACQUIRE UOR procurement GENERATE Systems Engineering role with S&T and the research programme Engineering rigor to the costed and affordable plan ENABLE An intelligent customer defining open principles and rules Systems Engineering new home? © Crown Copyright 2012

Summary • There is significant change ahead – Skills Required – Behaviours Needed – Federated Collaborative (JSP 906) • Op Model requires FLC (SSC & JFC) – Systems Thinking • Pan DLOD Trading – Architectural & Configuration Understanding • Coherence Essential – SOSA – DIRM – CIO / CTO • Danger of optimising components © Crown Copyright 2012