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Everything is on the table” when it comes to
ways to reduce the department’s It costs and improve
the efficiencies of its business systems and processes.
ood people and good ideas have a way
of rising to the top; so the department
of the navy chief Information Officer
is asking stakeholders to come up with
ways to improve the efficiency of the
department’s information technology
and cyberspace-related procurement and business processes
using business case analyses (bcAs). to make this easier for all,
the dOn cIO has recently released a newer and simplified version
of its business case analysis template — the abbreviated
bcA (A-bcA).
the need to transform It business processes is urgent. In
2010, under secretary of the navy robert O. work directed
the dOn cIO to reduce the department’s It bill by 25 percent
over a five-year period. business information technology is
a logical area to achieve savings. As technology is always
improving, the department can leverage these improvements
in a strategic way that meets the needs of the dOn. we need
to ensure that our technology, policy and processes support
efficient behavior and inform the dOn's decision making.
Additionally, purchasers often did not take advantage of
the volume discounting available through enterprise-wide
contracts for software, hardware, It services and telecommunications.
As a result, the dOn was not positioned to
achieve its potential in savings.
since 2010, the dOn cIO has been aggressively leading
efforts to achieve the $2 billion-reduction target and improve
efficiencies through several initiatives, including: data center
consolidation, application rationalization, and the use of bcAs
for all dOn It investments of $1 million or more. use of the
bcA template is mandatory to ensure consistency. It facilitates
comparisons of proposed alternatives and clearly defines antici-
– dOn cIO terry HAlVOrsen
pated costs, benefits, effects on operations and risks. the bcA
template also helps to ensure the best course of action is taken.
the dOn cIO established the A-bcA template for stakeholders
to submit ideas. However, it is not meant to replace
the dOn enterprise It standard bcA template. the abbreviated
version is meant to be a faster, more efficient start to a
structured cost-savings conversation.
the purpose of using the A-bcA is to foster efficient and effective
communications of cost-savings ideas to the dOn cIO
and other leadership, from all sources, including dOn personnel,
industry and academia, by providing a shorter and more
condensed cost-savings focused format. the A-bcA focuses
on the critical elements of a bcA, including a brief discussion
of the problem statement; proposed scope; key assumptions,
constraints and risks; costs, savings and other benefits; and
operational impacts. Although it requires analysis, the A-bcA
does not require the same level of analysis that the full bcA
demands, but should still be based on facts, evidence and
reasonable assumptions.
examples of cost cutting ideas include proposals for reducing
the costs and improving the efficiencies of the department’s
cellular phone services; the It acquisition process; commodity
purchases for enterprise software licensing, hardware and It
services; and cyber/It workforce training. to quote dOn cIO
terry Halvorsen: “everything is on the table” when it comes to
ways to reduce the department’s It costs and improve the efficiencies
of its business systems and processes.
sharing your cost-cutting suggestions presents an exciting
opportunity to transform and modernize the department’s business
It assets and improve processes. since the dOn cIO published
its request for ideas in July, interest has sparked across
the department with three ideas already submitted.
recommendations may be submitted using the abbreviated
bcA template located at www.doncio.navy.mil/
contentView.aspx?id=4056. Please send completed bcAs
to don reiter, lead for cost metrics/savings, Office of the
department of the navy chief Information Officer, at donald.
reiter@navy.mil. �
for more information about department of the navy It
efficiencies and cost-savings policies, visit the dOn cIO website:
www.doncio.navy.mil/efficiencies.
Don reiter is the deputy director, Department of the Navy
Enterprise Commercial IT Strategy and lead for Cost Metrics/
Savings, in the office of the DON Chief Information Officer.
sharon anDerson is the senior editor for CHIPS magazine.
WWW.DOnCIO.naVY.mIL/CHIPS 45