Affordability Needs and Challenges (Pete McLoone) • Needs of the enterprise – Structural changes: management, acquisitions, divestitures, facilities, use of IT – A lot of our cost base is in the supply chain • Challenges: – Evolving the culture – Better modeling (full lifecycle) and capturing data needed to calibrate models – Effective partnering with our customers • Understanding value versus cost – A comprehensive understanding of where value is for the customer – A value measure that is not in $ – A value measure that is qualitative in approach for some of the –ilities or other attributes of interest Affordability Needs and Challenges (Pete McLoone) • NeedsWhat do you see as your organization's or your activity sector's (commercial, industrial, DoD, public service) biggest needs in improving affordability (generating more value per unit of expenditure? decreasing strain on limited resources (human, financial, energy)? other?) – Structural changes: management, acquisitions, divestitures, facilities, use of IT – Two thirds of our cost base is in the supply chain • • Challenges: What do you see as your organization's or your activity sector's biggest challenges in improving affordability (quantifying value? reducing cost without reducing effectiveness? transforming people's behavior? other?) – Evolving the culture – Better modeling and capturing data needed to calibrate models – Effective partnering with our customers • Understanding value versus cost