Transforming the
Enterprise Using a
Systems Approach
James N Martin
Systems Engineering Conference
SEDC 2012 at GMU
Washington, DC
16 May 2012
Copyright 2011
James N Martin
Slide 1
Topics
• What is an Enterprise?
• What does an Enterprise do?
• How does the Enterprise do this?
• How can SE help the Enterprise improve?
Copyright 2011
James N Martin
Slide 2
What is an Enterprise?
• A bold, new business venture
• Everything required to accomplish
a large, complex undertaking
Copyright 2011
James N Martin
Slide 3
Organizations Participating
in an Enterprise
Enterprise
Participate in
Organization
Organization
Manages
Organization
Employs
Resources
Organization
Consists of
Businesses
People
Projects
Teams
Copyright 2011
James N Martin
Slide 4
Example Enterprise –
System Developer
Enterprise
Participate in
Prime
Contractor
Copyright 2011
James N Martin
Subcontractors
Suppliers
Distributors
Slide 5
Example Enterprise –
Air Transportation
Enterprise
Participate in
Airplane
Builder
Copyright 2011
James N Martin
Airline
Operator
Airport
Operators
Flight Safety
Authority
Slide 6
Organizational Complexity
Enterprise
Participate in
Organization
Organization
Organization
Organization
Enterprise
Enterprise
Enterprise
Organization
Copyright 2011
James N Martin
Slide 7
Managing Resources
Enterprise
Participate in
Organization
Organization
Organization
Manages
Organization
Consists of
Resources
Knowledge
People
Other Assets
Businesses
Projects
Copyright 2011
James N Martin
 Explicit Knowledge
 Books & Papers
 Training Material, etc…
 Implicit Knowledge
 Lessons Learned
 Mental Models, etc…
Teams
Slide 8
People & Other Assets
Enterprise
Participate in
Organization
Organization
Organization
Manages
Organization
Consists of
Resources
Knowledge





People
Managers & Executives
Engineers & Technicians
Business & Support Staff
Facilities & Infrastructure
Operations & Maintenance
Copyright 2011
James N Martin
Other Assets
 Financial Capital & Credits
 Equipment, Raw Materials
& Finished Goods
 Facilities, Land & Leases
 Intellectual Property,
Patents & Trade Secrets
Reputation &&Goodwill
 Reputation
Goodwill !!
Businesses
Projects
Teams
Slide 9
Consumption & Production
Enterprise
Participate in
Organization
Organization
Organization
Manages
Organization
Consists of
Resources
Knowledge
People
Other Assets
Consumes & Produces
Businesses
Projects
Stuff
Money
Copyright 2011
James N Martin
Time
Energy
Material
Teams
Slide 10
Enterprise Management  Planning,
Organization, Assessment & Control
Enterprise
Participate in
Organization
Organization
Organization
Manages
Organization
Consists of
Resources
Knowledge
People
Other Assets
Consumes & Produces
Businesses
Projects
Stuff
Money
Copyright 2011
James N Martin
Time
Energy
Material
Teams
Slide 11
Creating Value
Value
Enterprise
Creates
Participate in
Organization
Organization
Organization
Manages
Organization
Consists of
Resources
Knowledge
People
Other Assets
Consumes & Produces
Businesses
Projects
Stuff
Money
Copyright 2011
James N Martin
Time
Energy
Material
Teams
Slide 12
What Does an Enterprise Do?
• The Enterprise uses available Resources
to accomplish its Goals & Objectives
• These Resources consist of:
– People, Policies, Practices & Platforms
– Money, Energy, Time & Material
– Equipment, Facilities, Infrastructure & Systems
Copyright 2011
James N Martin
Slide 13
Individual Competence &
Organizational Capability
Enterprise
Participate in
Organization
Organization
Manages
Organization
Employs
Organization
Consists of
Businesses
Resources
People
Projects
Organizational
Capability
Copyright 2011
James N Martin
Individual
Competence
Teams
Slide 14
System & Operational Capabilities
Operational
Capability
Enterprise
Participate in
Organization
Organization
Manages
Organization
Employs
Organization
Develops
Systems
Resources
People
System
Capability
Copyright 2011
James N Martin
Slide 15
3 Types of Capability
Operational
Capability
Enterprise
Value
Creates
Participate in
Organization
Organization
Manages
Organization
Employs
Organization
Develops
Systems
Resources
Organizational
Capability
Copyright 2011
James N Martin
People
System
Capability
Slide 16
Systems vs. Enterprises
DRIVERS
Enterprise
INPUTS
System
Copyright 2011
James N Martin
OUTCOMES
OUTPUTS
Slide 17
System Architecture is Like
Blueprints for a Building
Copyright 2011
James N Martin
Slide 18
Enterprise Architecture is Like
Urban Planning
Copyright 2011
James N Martin
Slide 19
An Enterprise Performs Missions,
Each with their Own Objectives
Enterprise
Mission
System
Systems are Used to Perform
these Missions
Copyright 2011
James N Martin
Slide 20
Operational Capabilities 
System Functions
Users
Missions
Capabilities
Value
Tasks
System Functions
Systems
Cost =
Time + Money
System Elements
Copyright 2011
James N Martin
Slide 21
The “Value Chain”
Benefits
Task
Outcomes
Users
Users
Missions
Missions
Missions
Capabilities
Capabilities
Capabilities
Capabilities
Tasks
Tasks
Tasks
Tasks
System Functions
System Functions
System Functions
System Functions
Systems
Systems
Systems
Systems
Each System By Itself
Has No Value ! !
Copyright 2011
James N Martin
Slide 22
…and All that Other “Messy” Stuff
Benefits
Task
Outcomes
Users
Sites
Missions
Operators
Operations
Office
Capabilities
Operational
Activities
Operational
Requirements
Tasks
MOE’s
System Functions
System
Requirements
Programs
Acquisition
Office
Projects
Acquisition
Elements
Architectural
Effectivities
MOP’s
Systems
System Elements
Domains
User
Copyright 2011
James N Martin
Operator
System
Acquisition
Slide 23
Architecture Modeling & Analysis
Enterprise Architecture
Mission Architecture
System Architecture
Copyright 2011
James N Martin
Slide 24
Overlapping Architecture Models
Enterprise
Mission
System System
System
Copyright 2011
James N Martin
Mission
System
System
Mission
System
System
Slide 25
“System” Architecture Deals with
Requirements & Design
OUTCOMES
DRIVERS
Requirements &
Opportunities
High Level
Design
A
A
System Design
Concepts (System)
Design Requirements
Lower Level Design
The most common use of architecture (for developers).
A means for transforming requirements into design, and
high-level design into lower-level design.
Copyright 2011
James N Martin
Slide 26
Where do Requirements Come From ??
OUTCOMES
DRIVERS
Requirements &
Opportunities
High Level
Design
A
A
System Design
Concepts (System)
Design Requirements
Lower Level Design
The most common use of architecture (for developers).
A means for transforming requirements into design, and
high-level design into lower-level design.
Copyright 2011
James N Martin
Slide 27
Mission Level
Enterprise Architecture
Mission Architecture
System Architecture
Copyright 2011
James N Martin
Slide 28
“Mission” Architecture Deals with
Capabilities & Operating Concepts
OUTCOMES
DRIVERS
Mission Effects &
Scenarios
Capabilities &
Operational Concepts
A
A
Capabilities
Concepts (Operational)
Functional & Performance Reqts
Concepts (Enabling)
A very common use of architecture (for operators). A
means for transforming operational concepts into
functional requirements and system concepts.
Copyright 2011
James N Martin
Slide 29
Enterprise Level
Enterprise Architecture
Mission Architecture
System Architecture
Copyright 2011
James N Martin
Slide 30
Enterprise Architecture Deals with
“Getting to the Future” & the “Big Picture”
DRIVERS
OUTCOMES
Enterprise Vision
& Objectives
Business Plans / Strategies
Business Plans &
Mission Needs
A
A
Concepts (Business & Mission)
Missions & Scenarios
Effects & Capabilities
A growing use of architecture (for enterprises).
A means for transforming enterprise objectives into
business plans and mission needs.
Copyright 2011
James N Martin
Slide 31
Various Architecting Situations
DRIVERS
OUTCOMES
Enterprise Vision
& Objectives
Business Plans / Strategies
Business Plans &
Mission Needs
Mission Effects &
Scenarios
Capabilities &
Operational Concepts
Requirements &
Opportunities
Copyright 2011
James N Martin
High Level
Design
A
A
A
A
A
A
Concepts (Business & Mission)
Missions & Scenarios
Effects & Capabilities
Capabilities
Concepts (Operational)
Functional & Performance Reqts
Concepts (Enabling)
System Design
Concepts (System)
Design Requirements
Lower Level Design
Slide 32
Outcomes Become Drivers for Next Level Down
DRIVERS
OUTCOMES
Enterprise Vision
& Objectives
Business Plans / Strategies
Business Plans &
Mission Needs
Mission Effects &
Scenarios
Capabilities &
Operational Concepts
Requirements &
Opportunities
Copyright 2011
James N Martin
High Level
Design
A
A
A
A
A
A
Concepts (Business & Mission)
Missions & Scenarios
Effects & Capabilities
Capabilities
Concepts (Operational)
Functional & Performance Reqts
Concepts (Enabling)
System Design
Concepts (System)
Design Requirements
Lower Level Design
Slide 33
Driving the Enterprise to Achieve
Maximum Value for Stakeholders
DRIVERS
Enterprise
INPUTS
System
Copyright 2011
James N Martin
OUTCOMES
OUTPUTS
Slide 34
Enterprise State Changes are Achieved
Through Work Process Activities
Drivers
•
•
•
•
•
•
•
•
Demand
Competition
Laws
Regulations
People
Technology
Investment
Revenues
Copyright 2011
James N Martin
Enterprise
State
Work
Processes
Outcomes
•
•
•
•
•
•
•
•
Products
Services
Revenues
Earnings
Share Price
Market Share
Jobs
Innovation
Slide 35
Two Types of Architecture
Enterprise
Architectures
•
•
•
•
Strategic Goals
Capabilities
Segments
Mission Threads
utilize
these
Solution
Architectures
• System Solutions
– Hardware
– Software
– People
• Non-System Solutions
–
–
–
–
–
Copyright 2011
James N Martin
Process
Policy
Education & Training
Organizations
Facilities
Slide 36
Enterprise Systems Engineering &
Management
Metrics & Figures of Merit
Performance
Management
Mission
Planning
Strategic
Planning
Mission,
Goals &
Priorities
Objectives
& Strategies
Business
Process &
Info Mgmt
Portfolio
Management
Resource
Allocation &
Budgeting
Program
Mgmt
Project
Mgmt
People, Policies,
Practices, Money,
Platforms, Energy,
Facilities & Infrastructure
Systems of Systems
Copyright 2011
James N Martin
Slide 37
Enterprise Portfolio Management
Metrics & Figures of Merit
Performance
Management
Mission
Planning
Strategic
Planning
Mission,
Goals &
Priorities
Objectives
& Strategies
Copyright 2011
James N Martin
Business
Process &
Info Mgmt
Portfolio
Management
Resource
Allocation &
Budgeting
Program
Mgmt
Project
Mgmt
Money, People,
Facilities, &
“Bandwidth”
Systems of Systems
Platforms & Facilities
Individual Systems
Land & Rights of Way
Parts of Systems
Intellectual Property
Slide 38
Enterprise SE vs Product SE
Enterprise SE
Product SE
Metrics & Figures of Merit
Performance
Management
Mission
Planning
Strategic
Planning
Mission,
Goals &
Priorities
Objectives
& Strategies
Business
Process &
Info Mgmt
Resource
Allocation &
Budgeting
Portfolio
Management
Copyright 2011
James N Martin
Systems of Systems
Platforms & Facilities
Individual Systems
Land & Rights of Way
Parts of Systems
Intellectual Property
Program
Mgmt
Project
Mgmt
Money, People,
Facilities, &
“Bandwidth”
Slide 39
Achieving the Proper Balance
Using Enterprise SE
• Compromise & Trade-offs
– Balance between Complexity & Order
– Balance between Effectiveness & Efficiency
– Balance between Enterprise Goals & Project
Objectives
• Balancing Stakeholder Concerns
–
–
–
–
Copyright 2011
James N Martin
Predictability & Robustness
Performance & Stability
Security & Ease of Use
Cost & Schedule
Slide 40
Business & SE Process Areas
Enterprise Management
Vision
Goals
Conflict Mgt
Roles & Resp
Traditional
Business
Process
Areas
Reqts Dev & Mgmt
Risk Mgmt
Config Mgmt
Tech Project Plng
Quality Assurance
System Safety
Integ Logistics Spt
Program
Management
Restructure
The
Enterprise
Design
Implement
Transition
Diagnostics
Integrated Test
Traditional
Systems
Engineering
Process
Areas
Enterprise Assessment
Copyright 2011
James N Martin
Slide 41
Adding Enterprise SE Process
Areas
Enterprise Management
Vision
Goals
Conflict Mgt
Roles & Resp
Traditional
Business
Process
Areas
Restructure
The
Enterprise
Diagnostics
Enterprise SE
Strategic Technical Plan
Enterprise Architecture
Cap. Planning Analysis
Technology Planning
Process
Improvement
(CMMI)
Reqts Dev & Mgmt
Risk Mgmt
Config Mgmt
Tech Project Plng
Quality Assurance
System Safety
Integ Logistics Spt
Design
Implement
Transition
Traditional
Systems
Engineering
Process
Areas
Evaluation & Assessment Integrated Test
Enterprise Assessment
Copyright 2011
James N Martin
Slide 42
Enterprise-Level SE Processes
 Strategic Technical Planning
 Enterprise Architecture
 Capabilities-Based Planning Analysis
 Technology Planning
 Enterprise Evaluation and Assessment
Copyright 2011
James N Martin
Slide 43
Enterprise Systems Engineering
Enterprise SE
Product SE
Metrics & Figures of Merit
Performance
Management
Mission
Planning
Strategic
Planning
Mission,
Goals &
Priorities
Objectives
& Strategies
Business
Process &
Info Mgmt
Resource
Allocation &
Budgeting
Portfolio
Management
Copyright 2011
James N Martin
Systems of Systems
Platforms & Facilities
Individual Systems
Land & Rights of Way
Parts of Systems
Intellectual Property
Program
Mgmt
Project
Mgmt
Money, People,
Facilities, &
“Bandwidth”
Slide 44
Conclusions
• Enterprise SE is different from Product SE
–
–
–
–
Deals with less tangible “things”
Different Knowledge & Skills
Different Tools & Methods
Traditional SE processes are not sufficient for
Enterprise-level SE
• Enterprise SE Practices
–
–
–
–
Copyright 2011
James N Martin
An emerging discipline
Needs expansion of Processes & Standards
Needs training & development of People & Teams
Needs understanding from Enterprise Managers that
SE has something useful to contribute
Slide 45
BACKUP
Copyright 2011
James N Martin
Slide 46
Child Enterprises
Enterprise X
Parent Enterprise
Resource
Allocation &
Budgeting
Program
Mgmt
Project
Mgmt
Program
Mgmt
Project
Mgmt
Program
Mgmt
Project
Mgmt
Enterprise A
Performance
Management
Mission
Planning
Strategic
Planning
Business
Process &
Info Mgmt
Portfolio
Management
Enterprise Y
Resource
Allocation &
Budgeting
Enterprise Z
Resource
Allocation &
Budgeting
Copyright 2011
James N Martin
Slide 47
Child Enterprises
Enterprise X
Performance
Management
Parent Enterprise
Mission
Planning
Strategic
Planning
Resource
Allocation &
Budgeting
Program
Mgmt
Project
Mgmt
Resource
Allocation &
Budgeting
Program
Mgmt
Project
Mgmt
Resource
Allocation &
Budgeting
Program
Mgmt
Project
Mgmt
Portfolio
Management
Enterprise A
Performance
Management
Mission
Planning
Business
Process &
Info Mgmt
Strategic
Planning
Business
Process &
Info Mgmt
Enterprise Y
Performance
Management
Mission
Planning
Strategic
Planning
Business
Process &
Info Mgmt
Portfolio
Management
Portfolio
Management
Enterprise Z
Performance
Management
Mission
Planning
Strategic
Planning
Business
Process &
Info Mgmt
Portfolio
Management
Copyright 2011
James N Martin
Slide 48
Enterprise Governance as an Enabler to
Manage Progress & Control Changes
Typical System of Systems
Enterprise Span of Control
Enterprise
Governance
Mission
Planning
Performance
Management
Strategic
Planning
Business
Process &
Info Mgmt
Resource
Allocation &
Budgeting
Program
Mgmt
Project
Mgmt
Portfolio
Management
Copyright 2011
James N Martin
Slide 49
Enterprise Architecture
Can Facilitate Understanding of
Inter-Relationships & Consequences
Performance
Management
Mission
Planning
Strategic
Planning
Enterprise
Architecture
Repository
Copyright 2011
James N Martin
Business
Process &
Info Mgmt
Resource
Allocation &
Budgeting
Program
Mgmt
Project
Mgmt
Portfolio
Management
Slide 50
Executive Concerns & SE Enablers
Executive Concerns
SE Enablers
Identifying ends, means, and scope and
candidate changes
System complexity analysis to compare “as
is” and “to be” enterprises
Evaluating changes in terms of process
behaviors and performance
Organizational simulation of process flows
and relationships
Assessing economics in terms of
investments, operating costs, and returns
Economic modeling in terms of cash flows,
volatility, and options
Defining the new enterprise in terms of
processes and their integration
Enterprise architecting in terms of
workflow, processes, and levels of maturity
Designing a strategy to change the culture
for selected changes
Organizational and cultural change via
leadership, vision, strategy, and incentives
Developing transformation action plans in
terms of what, when, and who
Implementation planning in terms of tasks,
schedule, people, and information
Copyright 2011
James N Martin
Slide 51
Enterprise Entities
Enterprise
Participate in
Organization
Organization
Organization
Manages
Organization
Consists of
Resources
Knowledge
People
Other Assets
Consumes & Produces
Businesses
Projects
Stuff
Money
Copyright 2011
James N Martin
Time
Energy
Material
Teams
Slide 52
Different Groupings and Patterns Revealed
at Different Scales
Scales
Groupings
Enterprise
Systems Engineering
Capabilities
Enterprise &
Sub-enterprise
Broad Descriptions
Net-centric
Capabilities-based
Evolutionary Developm
Emergent Behavior
Tens of
System of Systems
(Mission Strings)
Mission Descriptions
Mission Capabilities-ba
Composition of Sys
…
…
Constraints
System
Engineering
Copyright 2011
James N Martin
Descriptions
Constraints
System of Systems
Engineering
Functionality
Patterns
Hundreds of
Independent
Systems
…
…
Functional Description
Detailed Specifications
Detailed Requirements
Slide 53
Relationships between an Enterprise and SoS’s
Enterprise E1
Enterprise E2
Enterprise E3
SOS1
S1
S2
S3
S4
S5
S6
SOS2
Copyright 2011
James N Martin
S7
S8
S9
S24
SOS3
S10
S11
S12
S31
S32
S33
S20
S41
S21
S22
S23
S51
S52
S53
Slide 54
Context for Enterprise Transformation
Economic Growth,
Laws, Regulations,
Taxes & Incentives
Economy
Trade, Jobs
& Tax
Revenues
Demand,
Competition &
Revenues
Market
Supply of
Products &
Services,
Earnings
Enterprise
Work
Products
& Costs
Copyright 2011
James N Martin
Work
Assignments
& Resources
Intraprise
Slide 55
Risk & Opportunity at the Enterprise
Scale versus the Systems Scale
Copyright 2011
James N Martin
Slide 56
Conclusions
• Enterprise SE is different from Product SE
–
–
–
–
Deals with less tangible “things”
Different Knowledge & Skills
Different Tools & Methods
Traditional SE processes are not sufficient for
Enterprise-level SE
• Enterprise SE Practices
–
–
–
–
Copyright 2011
James N Martin
Useful but still immature
Needs expansion of Processes & Standards
Needs training & development of People & Teams
Needs understanding from Enterprise Managers that
SE has something useful to contribute
Slide 57