DEFENSE LOGISTICS AGENCY THE NATION S COMBAT LOGISTICS SUPPORT AGENCY

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1 DEFENSE LOGISTICS AGENCY THE NATION S COMBAT LOGISTICS SUPPORT AGENCY DLA Information Operations (J6) AFCEA Mr. Robert Foster Deputy Director, DLA Information Operations April 4, 2018 WARFIGHTER FIRST

2 Agenda DLA Mission DLA J6 Mission & Scope J6 Leading Transformation & Reform WARFIGHTER FIRST 2

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4 Mission, Vision and Lines of Effort MISSION Sustain Warfighter readiness and lethality by delivering proactive global logistics in peace and war. VISION The Nation s Combat Logistics Support Agency... global, agile, and innovative; focused on the Warfighter First. WHY To serve the Warfighter and our Nation! PEOPLE AND CULTURE ARE AT THE HEART OF EVERYTHING WE DO WARFIGHTER FIRST 4

5 DLA BY THE NUMBERS End-to-End Global Supply Chain Management $35.3B Revenue & Managing $272B Active Contracts ~98% Military Services Consumables Over 12K Suppliers, 9K Awards per day Manage over 6M line items 27K Workforce, 2K Forward Positioned 229 CONUS & 65 OCONUS Locations Executive Agent - Bulk Fuel, Medical Materiel, Subsistence, Construction & Barrier Materiel Whole of Government - Disaster Relief, Medical Supplies, Firefighting Equipment, Law Enforcement Support, Food Programs & Foreign Military Sales TROOP SUPPORT LAND & MARITIME AVIATION ENERGY DISTRIBUTION Global Supply Chains: Subsistence, Clothing & Textiles, Construction & Equipment, Medical, and Industrial Hardware $15.6B Revenue 51K+ Customers 3 Locations Repair parts for ground-based and maritime systems $3.5B Revenue 13K+ Customers 2K weapon systems 8 Locations Repair parts for aviation systems, nuclear systems, maps and Industrial Plant Equipment $4.6B Revenue 13K+ Customers 2K weapon systems 19 Locations Global fuel and comprehensive energy solutions $9.8B Revenue 4K+ Customers 602 Fuel Locations Global storage and distribution solutions $745M in Revenue 243K+ Customers $105B in Inventory 43 Locations DISPOSITION SERVICES Global solutions for disposal of excess property $323M Revenue 31K+ Customers Reutilization: $2.5B 89 Locations BUY DISTRIBUTE DISPOSE WARFIGHTER FIRST *Year End FY 17 5

6 J6 Enablers to DLA Align our efforts & culture to propel DLA ahead of the exponential pace of innovation & cybersecurity demands 1. Innovation -- Challenge the Status Quo Design Thinking don t preconceive, 80% solution Engage with Workforce for automation & other ideas 2. Data Management maximize use Dashboards Data science publish data & analysis strategic plan Predictive analysis Self-service data visualizations and analysis 3. Technology service, capability focus Reduce Infrastructure, duplication Leverage cloud, other IT as a Service Increase mobility, cybersecurity postures WARFIGHTER FIRST 6

7 DLA Information Operations Leadership DLA Information Operations Director Ms. Kathy Cutler Deputy Director Mr. Bob Foster Program Executive Officer (PEO) Enterprise Applications Mr. Bill Tinston Cyber Security Director Mr. Linus Baker Strategic Technologies & Investments Director Mr. Jeff Charlesworth Customer Experience Director Mr. Eric Fegley Enterprise Infrastructure Services Director Mr. Brad Lantz DISA Liaison & Hosting Director Ms. Michelle Jacobs Research & Development Director Ms. Kelly Morris Strategic Data & Analysis Director Ms. Teresa Smith WARFIGHTER FIRST 7

8 Information Operations Scope Civilians Contractors Military Budget Key Spend Categories: Customer/End User Supt. Business System Acq. Enterprise Data/Data Mgmt. Infrastructure & Hosting DOD/Fed Govt & NATO Support Workforce Customer Profile FY18-23 $10.1B $1.2B $3.7B $2.2B $3.0B $695M 2,555 3, DLA users 32K Federal users 44K DOD users 3M+ Commercial users 640K Other (State/Schools/Police) 37K International 63 Countries Scope of Business 54K total devices supported globally: 24/7 Global Help Desk coverage & end-user support 11 Portfolios / 264+ Applications 170+ Small Business vendors (39.6%) plus an R&D focused Small Business Innovation Program 2 Primary Data Centers (Dayton/Tracy) Hub of logistics data for the department Process and route 7.7B financial, supply, cataloging, etc., data for DOD 99% of order, billing & inventory transactions are automated, plus 92-94% of procurement 2 R&D Program Elements/14 Investment Portfolios: - 75 projects in Logistics Research, Manufacturing Technology & Small Business Innovation Nearly 4M daily customers across 63 countries! WARFIGHTER FIRST 8

9 Transformation MASSIVELY TRANSFORMATIVEPURPOSE EMPOWER the Mission BRAND IT You Don t Have to Think About CHALLENGE "The biggest threat to innovation is internal politics and an organizational culture which doesn't accept failure and/or doesn't accept ideas from outside, and/or cannot change." Gartner Financial Services Innovation Survey, July 2016 WARFIGHTER FIRST 9

10 Top 5 Transformation Drivers 1. Speed of Technological Change 2. Data as a Strategic Asset 3. Skill Gap: Acquiring & Retaining Right Skill Sets 4. Automation 5. Cybersecurity Threats & Posture 10 WARFIGHTER FIRST

11 Moving at the Speed of Technology Embrace Disruptive Technologies Strategically pair technology to business ops Partner with the experts: National Defense University/Berkley Defense Innovation Unit Experimental Increase Speed to Implement Adopt new industry methods for development Deploy Minimally Viable Products (MVPs) Iterate with Customers, pivot early and often Shift the Culture and Paradigm Crowdsourcing mine and reward creativity Create a safe to fail Environment Suppress the immune system Moore s Law: Technology doubled every 2 years for the last 50 years - exponential change is NOW 11 WARFIGHTER FIRST

12 Data: A Strategic Asset Drive Decision making based on Live Data Issue-driven insights New business intelligence Innovative solutions & efficiencies Making data more strategic connecting goals, people, metrics, processes and data! WARFIGHTER FIRST 12

13 Digital Divide & Pace of Change If we fall behind, so does the warfighter! Digital Fugitives Avoids technology Prefers traditional library Direct communication is familiar Digital Immigrants Controlled release of info from limited sources Prefer text to graphics Single or focused tasks Completely foreign Different Language Digital Natives Expect Information Fast Prefer graphics to text Parallel process and multi-task Second Nature Constant Exposure we need to reshape to meet technological change Shift resources to the business we should be in Capability Delivery (lifecycle IT) Data Services Hosting Services Management Cybersecurity Services Reskill the workforce as necessary to meet challenge Target recruitment and contracts to source skills 13 WARFIGHTER FIRST

14 Delivering Innovative Automation Strategies Distribution Modernization Program (DMP) SAP Warehousing Study Wireless Warehousing / Mobile (Tablets, Printers, Voice Pick) Technology Deployments Real Time Location System (RTLS) Enterprise Business System (EBS) Extensive automation for technical and functional capabilities Quick delivery of essential functionality which enables rapid reprioritization and allows for more efficient resource allocation Enterprise Data Analytics Model/Prototype customer requirements to eliminate rework during design/build phase Use of Data Trend Forward Leaning Analysis Inform customer of their business versus waiting for requirements Use of Data as an asset linking siloes of databases and data stores Artificial Intelligence Other Automation DLA CIO Dashboard for Enterprise view on IT health System Tuning to streamline and eliminate duplicative processes which reduce costs Access Management and Provisioning Human Resources and Finance for timekeeping, training and retirement planning Intelligent Automation WARFIGHTER FIRST 14

15 Global Cyber Threat 12 CYBER ATTACK VICTIMS PER SECOND PER DAY, MILLION PER YEAR 132 Custom Definitions Custom Detection Definitions CERT implemented 132 custom definitions in to various cyber tools. Annual cost of global cyber crime: BILLION Cost to the U.S. Economy: More than 120 Nation States have demonstrated Cyber Warfare capabilities & intentions.! BILLION PER YEAR! 15 WARFIGHTER FIRST

16 Learning from our Partners One Grain of Rice: A Lesson in Exponential Growth GE Digital from CPI to Fastworks *MTP = Massively Transformational Purpose *MVP= Minimally Viable Product Foundational Steps Required: Identify a driving purpose; rebrand Align resources for innovation WARFIGHTER FIRST Balance today s needs & tomorrow s imperatives 16

17 Takeaways For Our Industry Partners 1. Everything as a Service (EaaS) 2. Think Capabilities vs Systems 3. Speed, Speed, Speed! 4. Be Ready to Play! 5. Get Serious About Security! 6. Don t Count on FAR/DFAR to Save You! Leveraging Every Opportunity -- Improve Warfighter & Government Support WARFIGHTER FIRST 17

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