A capability based enterprise architecture unlocks the value of the Model Based Enterprise.

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Hector Gaines
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2 Agenda 1: Introduction to Boeing 2: Digitization of the Enterprise: Opportunity 3: Digitization of the Enterprise: Reality 4: Roadmap with Business Architecture 5: Standards 6: Key Take Aways Copyright 2017 Boeing. All rights reserved. 2

3 HISTORY The First 100 Years Founded in 1916 in the Puget Sound region of Washington state Became a LEADING PRODUCER of military and commercial aircraft Completed a series of strategic mergers and acquisitions to become the WORLD S LEADING AEROSPACE COMPANY A heritage that mirrors the history of flight Copyright 2017 Boeing. All rights reserved. 4

WHAT WE DO TODAY The Next 100 Years COMMERCIAL AIRPLANES Boeing 7-series

Financing solutions focused on customer requirements DEFENSE, SPACE &

and major service provider to NASA Large-scale systems integration,

services business focused on the needs of global defense, space and

4 WHAT WE DO TODAY The Next 100 Years COMMERCIAL AIRPLANES Boeing 7-series family of airplanes leads the industry BOEING CAPITAL CORPORATION Financing solutions focused on customer requirements DEFENSE, SPACE & SECURITY World s largest manufacturer of military aircraft and satellites and major service provider to NASA Large-scale systems integration, networking technology and solutions provider GLOBAL SERVICES A dedicated services business focused on the needs of global defense, space and commercial customers Connect and protect people globally Copyright 2017 Boeing. All rights reserved. 5

5 A Business Transformation Opportunity Cultural shift unlocking the value of digital What s out there? Boeing s enablement Voice recognition and natural language processing Social media platforms and content platforms Artificial Intelligence applying the data to solve problems through analytics AI/ML Computers are making a generation design transition Massive service provider function emerging Reduced development time through next generation Dev/Ops Next generation of computing Next generation of systems New and better data systems 2nd Century Enterprise Systems Boeing enterprise digitalization Enterprise function defined through business architecture IOT system everywhere Digital Transformation Environments for Dev/OPs Mobility AnalytX and analytic fabric everywhere Cloud and SaaS Microservices and API interconnected fabrics for automated OSS controls Emerging technologies like BlockChain and others moved to central service delivery Copyright 2017 Boeing. All rights reserved. 6

6 Service Oriented Architecture A transformation journey template for business? Service-Oriented Architecture (SOA) is not a technology it is a design methodology. Microservices are a specialized implementation of SOA for building flexible, independently deployable (DevOps) systems. Copyright 2017 Boeing. All rights reserved. 7

7 PLM Evolution at Boeing Commercial Airplanes Now Now Future State Design 2D Drawings 3D Model + 2D Drawings 3D Model Based Definition Persistent Digital Twin Change Paper Textual based, Boeing built Textual based, Boeing built Model Based; COTS Validation Physical Mockup Spatial Pre Assembly Bill of Material Configuration Paper / Forms on Mainframe Explicit airplane effectivity Teamcenter Enterprise + Specialty PDMs Option driven quantity based Spatial, Functional, Build & Support Pre-assembly ENOVIA LCA / Teamcenter Enterprise + Specialty PDMs Option driven instance based Digital Simulation + IoT Multi-View Tool Agnostic Option driven, analytics enabled Applications Boeing Computing Services Customized COTS + Boeing IT Customized COTS + Boeing IT Platform COTS + Boeing IT Technology Mainframe Unix + Windows, Thick & Thin Windows, Thick & Thin Cloud, SAAS Copyright 2017 Boeing. All rights reserved. 8

As-Is Architecture A System of Systems at incredible scale Comprised of ~3,400 Processes with ~4,100 Applications On ~5,000 Servers using ~14,000 Integrations Affected by ~

8 As-Is Architecture A System of Systems at incredible scale Comprised of ~3,400 Processes with ~4,100 Applications On ~5,000 Servers using ~14,000 Integrations Affected by ~ 900 changes annually Impacting ~ 100,000 Users With ~ 12 copies of the data And maintaining ~ 20 PB of data Across 7 Countries ` Copyright 2017 Boeing. All rights reserved. 9

Leveraging Business Architecture to align our business One Boeing: Systems Engineering

Describes Policies & procedures, Business rules, Requirements.

10 Business Architecture Integrated model of the business Aligns strategy to tactics Components Business capability, Information, Organization, Process. Describes Policies & procedures, Business rules, Requirements. Enables Strategy development & planning Performance assessment and improvement, Integration analysis, Reporting and analytics, Business simulation. Copyright 2017 Boeing. All rights reserved. 11

The One Boeing Capability Map A method to organize the business for digitization Engaged 100+ Boeing SMEs Version 1 - September 2013 Version 6 - August 2016 Decomposed to a maximum of 6 levels Level

11 The One Boeing Capability Map A method to organize the business for digitization Engaged 100+ Boeing SMEs Version 1 - September 2013 Version 6 - August 2016 Decomposed to a maximum of 6 levels Level 1 9 Level 2 41 Level Engagement increases with each revision Proposed changes v2 - v5 = 164 Proposed changes for v6 = 328 Competitive Advantage Values assigned There is ONE map for Boeing Copyright 2017 Boeing. All rights reserved. 12

Value Streams at Boeing Definitions Strategic value streams are An executive-level flow of business activities that provide differentiated value to external customers and stakeholders.

12 Value Streams at Boeing Definitions Strategic value streams are An executive-level flow of business activities that provide differentiated value to external customers and stakeholders. Strategic value streams are forward-looking and used for direction-setting. Business capabilities enable value streams. Operational value streams are An operational view of activities that will deliver value to an internal and external stakeholder. The operational value stream is used to optimize the sequence of activities and integrate through the information exchanged. Copyright 2017 Boeing. All rights reserved. 13

Strategic Value Stream A tool to align the Boeing Enterprise at the business unit level An executive-level flow of business activities that provide differentiated value to external

13 Strategic Value Stream A tool to align the Boeing Enterprise at the business unit level An executive-level flow of business activities that provide differentiated value to external customers and stakeholders. Strategic value streams are forward-looking and used for direction-setting. Business capabilities enable value streams. Copyright 2017 Boeing. All rights reserved. 14

Mapping Capabilities to Strategic Value Streams

Target level 3 capabilities Level 2 identified

enterprise wide One capability map for the

14 Mapping Capabilities to Strategic Value Streams Capabilities are mapped to value stream stages Target level 3 capabilities Level 2 identified if all level 3 capabilities are used Common view enterprise wide One capability map for the enterprise Copyright 2017 Boeing. All rights reserved. 15

Operational Value Stream Linking the business through services An operational view of activities that will deliver value to an internal and external stakeholder.

15 Operational Value Stream Linking the business through services An operational view of activities that will deliver value to an internal and external stakeholder. The operational value stream is used to optimize the sequence of activities and integrate through the information exchanged. Competitive Advantage / Differentiation TACTICAL LEVEL EXECUTION LEVEL Which enables competitive advantage in the marketplace Strategic Value Stream (SVS) Operational Value Stream (OVS) Business Processes Multiple capabilities enable a SVS Capability A Capability B Capability C Business Service A Multiple business Business Service B services constitute an Business Service C OVS Integrated to POPULATES 1. SLA s / Customer Agreements 2. TPM s / KPI s 3. Workflows 4. RACI frameworks 5. Information Products Copyright 2017 Boeing. All rights reserved. 16

16 Operational Value Stream Example Change Management Initiate Change Request Conduct Preliminary Impact Assessment Develop Implementation Plans Process the Proposal Implement, Verify, and Close the Change Key Initiate Change Create Change Request Activate end-toend process Proposed Business Service Internal Proposed Business Service External Business Process Mobilize Resources Preliminary Assessment Prepare Preliminary Cost Estimate Prepare detailed schedule estimates Perform Net-Change Assessment Prepare Change Package Conduct Meeting/ Record Develop Strategy Mobilize & Kickoff Resources Prepare, refine SOW tasks, estimates and implementation plan Conduct Meeting/ Record Process/ Analyze supplier quotes and/ or variance proposals Develop Timephased hours Prepare detailed cost estimate Prepare Schedule Assessment Develop/ Approve Pricing Develop pricing package Prepare support agreement Prepare work authorization Approve Work Orders Implement the Change Create Change Order Perform Change Verification Capture Escapes Close the Change Every Business Service affords Enterprise reuse. Copyright 2017 Boeing. All rights reserved. 17

17 Standards View Model Based Environment Standards across the lifecycle Standards across Nations and Standards Bodies Work needed to capture the value of interoperable data standards. Copyright 2017 Boeing. All rights reserved. 18

A capability based enterprise architecture unlocks the value of the

Key Take Aways Aerospace & Defense Industry: Long history, slow to

Advanced concepts and data technologies enable new opportunities and

Roadmaps to a future state are notoriously difficult, yet required to

A structured approach to transforming an existing business is

18 A capability based enterprise architecture unlocks the value of the Model Based Enterprise. Key Take Aways Aerospace & Defense Industry: Long history, slow to change. Culture is rooted in old thinking. Advanced concepts and data technologies enable new opportunities and disruptive events; new entrants are using these directly. Roadmaps to a future state are notoriously difficult, yet required to maintain integration. A structured approach to transforming an existing business is required; organic methods unlock partial value. Your data has to be modeled, period. A capability driven business takes value to the next level enabling enterprise reuse at scale. Copyright 2017 Boeing. All rights reserved. 19

PDT Europe 2016 Data Standards: A Strategic Lever for Boeing Commercial Airplanes Brian Chiesi, Boeing Commercial Airplanes

PDT Europe 2016 Data Standards: A Strategic Lever for Boeing Commercial Airplanes Brian Chiesi, Boeing Commercial Airplanes The statements contained herein are based on good faith assumptions are to be