Portfolio Management Leveraging Software-Based Open Systems Architecture

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Portfolio Management Leveraging Software-Based Open Systems Architecture Calhoun: The NPS Institutional Archive DSpace Repository Theses and Dissertations 1. Thesis and Dissertation Collection, all items 2019-09 PORTFOLIO MANAGEMENT LEVERAGING SOFTWARE-BASED OPEN SYSTEMS ARCHITECTURE Sweeney, Robert J. Monterey, CA; Naval Postgraduate School http://hdl.handle.net/10945/63508 Downloaded from NPS Archive: Calhoun NAVAL POSTGRADUATE SCHOOL MONTEREY, CALIFORNIA THESIS PORTFOLIO MANAGEMENT LEVERAGING SOFTWARE-BASED OPEN SYSTEMS ARCHITECTURE by Robert J. Sweeney September 2019 Thesis Advisor: Raymond D. Jones Second Reader: Robert F. Mortlock Approved for public release. Distribution is unlimited. THIS PAGE INTENTIONALLY LEFT BLANK Form Approved OMB REPORT DOCUMENTATION PAGE No. 0704-0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188) Washington, DC 20503. 1. AGENCY USE ONLY 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED (Leave blank) September 2019 Master’s thesis 4. TITLE AND SUBTITLE 5. FUNDING NUMBERS PORTFOLIO MANAGEMENT LEVERAGING SOFTWARE-BASED OPEN SYSTEMS ARCHITECTURE 6. AUTHOR(S) Robert J. Sweeney 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING Naval Postgraduate School ORGANIZATION REPORT Monterey, CA 93943-5000 NUMBER 9. SPONSORING / MONITORING AGENCY NAME(S) AND 10. SPONSORING / ADDRESS(ES) MONITORING AGENCY N/A REPORT NUMBER 11. SUPPLEMENTARY NOTES The views expressed in this thesis are those of the author and do not reflect the official policy or position of the Department of Defense or the U.S. Government. 12a. DISTRIBUTION / AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE Approved for public release. Distribution is unlimited. A 13. ABSTRACT (maximum 200 words) The Section 809 Panel for streamlining and codifying acquisition was tasked with providing a recommendation to Congress regarding ways to streamline and improve the Department of Defense (DoD) acquisition system. As part of its final report, the 809 Panel recommends a transition from a “program-centric” to a “portfolio-centric” defense acquisition model. By aligning common requirements, the 809 Panel believes it can ultimately achieve acquisition efficiencies resulting in decreased life-cycle costs and increased speed to field capabilities. This paper will analyze whether the 809 Panel’s recommendation to move to a portfolio-centric model has potential to decrease life-cycle costs and decrease the time it takes to field capabilities to the warfighter. The scope of this analysis is limited to software-intensive weapon systems. 14. SUBJECT TERMS 15. NUMBER OF Modular Open Systems Approach, MOSA, Open Systems Architecture, OSA, Future PAGES Airborne Capability Environment, FACE, open architecture, OA, software, 809 Panel, 95 portfolio management 16. PRICE CODE 17. SECURITY 18. SECURITY 19. SECURITY 20. LIMITATION OF CLASSIFICATION OF CLASSIFICATION OF THIS CLASSIFICATION OF ABSTRACT REPORT PAGE ABSTRACT Unclassified Unclassified Unclassified UU NSN 7540-01-280-5500 Standard Form 298 (Rev. 2-89) Prescribed by ANSI Std. 239-18 i THIS PAGE INTENTIONALLY LEFT BLANK ii Approved for public release. Distribution is unlimited. PORTFOLIO MANAGEMENT LEVERAGING SOFTWARE-BASED OPEN SYSTEMS ARCHITECTURE Robert J. Sweeney Civilian, Department of the Navy BS, Austin Peay State University, 2003 MS, Walden University, 2006 Submitted in partial fulfillment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION from the NAVAL POSTGRADUATE SCHOOL September 2019 Approved by: Raymond D. Jones Advisor Robert F. Mortlock Second Reader Marco S. DiRenzo Academic Associate, Graduate School of Business and Public Policy iii THIS PAGE INTENTIONALLY LEFT BLANK iv ABSTRACT The Section 809 Panel for streamlining and codifying acquisition was tasked with providing a recommendation to Congress regarding ways to streamline and improve the Department of Defense (DoD) acquisition system. As part of its final report, the 809 Panel recommends a transition from a “program-centric” to a “portfolio-centric” defense acquisition model. By aligning common requirements, the 809 Panel believes it can ultimately achieve acquisition efficiencies resulting in decreased life-cycle costs and increased speed to field capabilities. This paper will analyze whether the 809 Panel’s recommendation to move to a portfolio-centric model has potential to decrease life-cycle costs and decrease the time it takes to field capabilities to the warfighter. The scope of this analysis is limited to software-intensive weapon systems. v THIS PAGE INTENTIONALLY LEFT BLANK vi TABLE OF CONTENTS I. INTRODUCTION..................................................................................................1 A. BACKGROUND ........................................................................................1 B. PURPOSE ...................................................................................................1 C. PROBLEM .................................................................................................2 D. METHOD ...................................................................................................2 II. BACKGROUND ....................................................................................................3 A. CURRENT PROGRAM-CENTRIC MANAGEMENT MODEL.........3 B. NEED FOR A DIFFERENT MODEL .....................................................5 III. LITERATURE REVIEW .....................................................................................7 A. PROGRAM-CENTRIC VS. PORTFOLIO-CENTRIC MODEL .........7 1. Organizational Alignment .............................................................8 2. Organizational Challenges ............................................................9 3. Portfolio-Centric Technical Characteristics ..............................10 B. OPEN SYSTEMS ARCHITECTURE ...................................................12 1. OSA Pillars ...................................................................................13 2. Holistic Approach ........................................................................14 C. ORGANIZATIONAL USE OF PORTFOLIO-CENTRIC MODEL ....................................................................................................14 1. Automotive Industry ....................................................................14 2. Smart Phones ................................................................................15 3. Rockwell Collins ...........................................................................16 4. NAVSEA .......................................................................................18 D. PRODUCT LINE SOFTWARE COST MODEL .................................19 E. FACE OPEN SYSTEMS STANDARD ..................................................21 1. Threats to Portability ..................................................................24 2. FACE Solutions to Portability Threats ......................................24 F. FUNCTIONAL DECOMPOSITION .....................................................25 G. DATA RIGHTS ........................................................................................27 IV. DISCUSSION .......................................................................................................29 A. PROGRAMMATIC ANALYSIS ...........................................................29 1. Cost Analysis ................................................................................29 2. Portfolio Management Organization .........................................37 B. HOLISTIC OPEN SYSTEM ARCHITECTURE APPROACH .........42 1. Functional Decomposition ...........................................................43 vii 2. Reference Architecture ................................................................59 3. Data Rights Strategy ....................................................................66 V. CONCLUSION ....................................................................................................67 A. RECOMMENDATION ...........................................................................67 B. FUTURE RESEARCH ............................................................................67 APPENDIX. EXAMPLE COPLIMO SCALING FACTORS .....................................69 LIST OF REFERENCES ................................................................................................71 INITIAL DISTRIBUTION LIST ...................................................................................75 viii LIST OF FIGURES Figure 1. Program-Centric Organization .....................................................................3 Figure 2. Program and Portfolio Relationships. Source: PMI (2004). ........................9 Figure 3. AUTOSAR Consortium. Source: AUTOSAR (n.d.). ................................15 Figure 4. Rockwell Collins Open Architecture Migration. Source: Howington (2016). ........................................................................................................17 Figure
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