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Governance in Ultra-Large-Scale
(ULS) Systems
Philip Boxer BSc MBA PhD
1Copyright © Boxer Research Ltd 2015
Contents
• The Policy, Acquisition and Management Research Agenda
– What kinds of challenges are these?
• On Orchestration and Synchronisation
– What insight can be derived from this experience?
• Practical Consequences
– What is it possible to do for clients?
• In Conclusion
– This leaves a lot of unresolved issues…
2Copyright © Boxer Research Ltd 2015
THE POLICY, ACQUISITION AND
MANAGEMENT RESEARCH AREA
What kinds of Challenges are these?
3Copyright © Boxer Research Ltd 2015
The Governance framework is crucial
– Given the scope and scale of ULS systems, technical, organizational, and operational
policies will emerge as principal vehicles for ensuring harmonious operations at all
levels.
– The size and highly distributed nature of ULS systems will limit global visibility and
decentralize system management within an overall framework of organizational,
technical, and operational policies.
– Research is required in how to define ULS system policies that specify organizational,
technical, and operational constraints for global system integrity and freedoms for
flexible adaptation.
– Much of the evolution of ULS systems will occur in situ, thereby imposing requirements
to maintain critical operational capabilities while adding or improving other capabilities
in place
− What kind of Governance is appropriate to the distributed collaborations across ULS
systems (sometimes described as having virtual* characteristics)?
* For example, “Virtual systems of systems lack a central management authority and a centrally agreed upon purpose. Large-
scale behavior emerges and may be desirable, but this type of SoS must rely upon relatively invisible mechanisms to maintain
it.” Systems Engineering for Systems of Systems, August 2008, Office of the Under Secretary of Defense (Acquisition,
Technology and Logistics)
4Copyright © Boxer Research Ltd 2015
The supporting systems and infrastructures have to be
understood differently
– Research is needed to understand how supply-chain organizations could be integrated
as first-class operational components into ULS ecosystems…
– In such an environment, supply-chain organizations ranging from established vendors
to open-source collaborations could undergo periodic assessment of capabilities,
participate in joint training and readiness exercises with the forces, and come and go as
needs and capabilities change.
– The supply chains of vendors and integrators that will populate ULS ecosystems must
be organized, and incentives must be provided to evolve ULS system capabilities at a
rapid pace in response to changing operational needs.
* For example in the need for Through-Life Capability Management (TLCM): “a greater proportion of our overall business is
available to industry than in any other major defence nation, and growing expertise in the combination of systems engineering
skills, agility and supply chain management required to deliver TLCM gives the UK defence industry a comparative advantage.”
UK Defence Industrial Strategy December 2005 p6.
− How are the changing services provided by the operational components of ULS systems
to be enabled to achieve levels of cooperation and collaboration that can satisfy
requirements for fast system evolution*?
5Copyright © Boxer Research Ltd 2015
Demand issues are of a different kind
– The pervasive application of ULS systems to support global operations in many
simultaneous strategic and tactical situations will generate many requirements for rapid
evolution to meet changing threats and environments.
– ULS systems will experience and should create incentives for substantial local
adaptation and bottom-up evolution
– ULS systems will be designed to support dynamic coalitions and management of tactical
and strategic operations through linkage of field units with command-and-control
functions on any scale necessary.
– The overarching requirement for ULS systems is operational readiness at all times
under all conditions… ULS systems will be required to adapt to changing missions and
unanticipated circumstances encountered by warfighters.
* An ‘edge’ is any particular situation/context where a threat-demand is encountered that the ULS system must respond to. An
early formulation of this was in Power to the Edge: command and control in the information age, Alberts & Hayes, DoD CCRP
June 2004.
− How are we to enable the distributed collaborations across ULS systems to be edge-
driven*?
6Copyright © Boxer Research Ltd 2015
Collaborative processes are critical
– Policies must support both local and global operations in such a way that people and
the computational actions they initiate can achieve cooperative and even competing
objectives without impairing the viability of the system as a whole.
– It may often be the case that, to meet immediate needs, local users of ULS systems will
be forced to engage in ad hoc acquisition of components whose functionality and
quality properties are not well understood or trusted. Because these components
address unforeseen problems, an opportunity will arise to improve and generalize their
application across similar environments.
– ULS systems engineering development and operational use will generate knowledge
that can be preserved and analyzed to guide future evolution.
* “Orchestration is the set of activities needed to make the elements of a ULS system work in reasonable harmony to ensure
continuous satisfaction of the mission objectives”. p25 ULS Systems
− How are the processes of orchestration and synchronisation to work in ULS systems?*
7Copyright © Boxer Research Ltd 2015
Taking the human factor into consideration
– People are key participants in ULS systems. Many problems in complex systems today
stem from failures at the individual and organizational level. We therefore need
research on user-centered specifications and on modeling users and user communities.
– While some models of human interaction are inspired primarily by economic factors
and competitive forces to drive improvements, research is needed to understand other
models, such as open source, that involve fostering non-competitive social
collaboration.
– We cannot fully anticipate the context within which ULS systems will operate and
necessarily evolve, as the socio-cultural practices of many different groups
(stakeholders, users) will, in fact, be constructing this real-world computational
environment. The challenge is thus to design and support systems using an accurate
model (scientific understanding) of this ULS/social-context interaction.
− How are people to be taken into consideration as first-class components of ULS
systems?*
Collaborative
processes are
critical
Demand issues
are of a different
kind
The supporting systems and
infrastructures have to be
understood differently
The Governance
framework is crucial
N-S are limiting
E-W are enabling
8
* Boxer, P. J. (2014). "Leading Organisations
Without Boundaries: 'Quantum'
Organisation and the Work of Making
Meaning." Organizational and Social
Dynamics 14(1): 130-153.
Copyright © Boxer Research Ltd 2015
Client Situations generating learning about these
challenges
Client Instances The problem motivating their interest
• Thales/Bosch • Unable to take advantage of and manage the opportunities
emerging among multiple related customers with differing
interests.
• UK NHS/BT • Unaddressed client needs because of limitations to existing
business models
• Create/JFSP • Difficulty in managing complexity of modeling frameworks
within acceptable timeframes
• NATO/MilSatcom • Systematic identification and structuring of risks to
deployment and sustainment of operational capabilities
• MOD NiteWorks/Army
Software Blocking
• Unaffordable cost trends plus lack of ability to support
rates of operational change, and failure to meet time
deadlines supporting deployment
• Raytheon/MoD • The customer changing from an equipment-based to a
capability-based approach to acquisition and its effects on
how the supplier’s market is defined
9Copyright © Boxer Research Ltd 2015
ON ORCHESTRATION AND
SYNCHRONISATION
What insights can be derived from this experience?
10Copyright © Boxer Research Ltd 2015
The Supplier is supporting the Client Enterprise
managing three diverging tempos…
Customers of the
Client Enterprise
Supplier Socio-technical
Client Enterprise
Socio-technical
Ecosystem
Demand
Tempo
The rate at which new
forms of demand need to
be satisfied
Supplier 1
Supplier 2
sub-contract
sub-contract
Acquisition
Tempo
The rate at which new
requirements can be
met
Client
Enterprise
users
users
Readiness
Tempo
orchestration
synchronization
The rate at which the client
enterprise is able to support new
forms of value proposition
Demanded effects in the
customer’s context-of-use
The client enterprise aligns to the
demand of the customer
The supplier responds to the client
enterprise aligning to the demands
of its customers
Projective
analysis
11Copyright © Boxer Research Ltd 2015
Opportunistic
(marginal/ incremental costs)
Niche-based
(focus where
Positional
advantage can
be sustained)
Client’s Economies of
Alignment
No Yes
Supplier’s
Economies of
Scale or
Scope
Yes
No
Effects-based
(focus where
Relational
advantage can
be sustained)
The challenge for the business is to
be able to include effects-based
forms of competition
Digitalisation
The processes of digitalisation change
the economics of alignment
Over time, innovations in response to demand are
imitated and become generally available from suppliers
The Supplier has to support the Client’s effects-basing, adding
the need to generate Economies of Alignment for the Client
12Copyright © Boxer Research Ltd 2015
Defence Enterprise
Acquisition
Tempo
Readiness
Tempo
Adapted from: “Appropriate Collaboration and Appropriate Competition in C4ISTAR Transformation”, Dr Nicholas Whittall RUSI 2007
Campaign
Tempo
Gap = Need
Acquisition
Effect
Threat-Demands
Composite
Capability
Capability
Capability
Capability
Orchestration
Doctrine
Organization
Training
Materiel
Leadership
Personnel
Facilities
Suppliers
Capability
Requirement
Traditional Defense Companies
await Requirements expressed
in Programmes.
Competitive advantage to be gained in
aligning the Need to the Demand.
Competitive advantage to be gained
from dynamic alignment of Composite
Capabilities to the Threat-Demands.
Divergence of tempos
increases costs of
alignment
Divergence of tempos
increases Costs of
Alignment associated with
Readiness
The divergence of tempos creates an agility challenge
13Copyright © Boxer Research Ltd 2015
With effects-basing, Value comes from managing a
Double ‘V’
Requirement Solution
Components
Design
decomposition
Design
integration
The cycle
creating Value
Orchestrations
Military Effects
Composite
Capabilities
Joint
Command
Gaps in Force Command Structure and
Composite Capabilities
Scenarios and
Campaign Plans
Capability =
Solution plus
DOTMLPF
Requirement =
Capability gap minus
DOTMLPF
demand-side
supply-side
Boxer, P.J. (2007) Managing the SoS Value Cycle,
January 2007,
http://www.asymmetricdesign.com/archives/85
Synchronisations
14Copyright © Boxer Research Ltd 2015
The unanticipated need for agility can be very expensive
Level of short-term savings – the cost
of the option to satisfy a significant
part of the UAV III need
The cumulative costs of
sourcing UAVs I & IIUAV I – over-the-
horizon targeting
(Phoenix)
UAV II – CCIR ISTAR
asset
(Watchkeeper)
Level of additional
expenditure incurred
through Urgent
Operational
Requirements to deliver
UAV III
UAV III – extending
‘edge’ capability
(+Nimrod, Lydian &
Desert Hawk)
How should this option have
been valued?
15
Without an ability
to analyze cohesion
it is difficult to
establish the costs
of alignment and
identifying options
for increasing agility
Copyright © Boxer Research Ltd 2015
a’b’
2. Change in variance in
levels of expenditure, based
on the difference between
the two curves ‘a’ and ‘b’
Probability
Levels of expenditure meeting Customer Demands
The cost of Force
Structure ‘b’ across the
variety of demands
b
‘Real Option’ pricing allows a value to be
assigned to these changes in variance
a
The cost of Force
Structure ‘a’ across the
variety of demands
1. Reduction in average
level of expenditure
through impact of
capability trade.
The value of an incremental investment in some new capability is
the impact of both the trade and the change in agility*
* Agility = property of the Force Structure enabling it do more things with the same underlying capability set.
The Value of Agility for the Client Enterprise is to
reduce the variance in expenditures
Two kinds of benefit:
16Copyright © Boxer Research Ltd 2015
Value comes through creating Real Options that
increase the agility of force structures
2: Real Option
Valuations
(agreed perceptions of likelihood
of future scenario mix =>
distribution of demand across
options for composite capabilities)
4: Engineering for
Flexibility
(maximise mitigation of
interoperability risks)
1: Varieties of
Geometries of use x
Decisive Points
(across all possible scenarios.
Assumes technical feasibility)
What is valued
politically =>
where to develop
agility
Determines the
underlying context in
which new demands
have to be met
Determines forms
of cohesion
demanded
Requirement for
flexibility in
capabilities
3: Type III Agility
(defining new capabilities for
distributed collaboration and
requisite granularity of supporting
capabilities)
17Copyright © Boxer Research Ltd 2015
PRACTICAL CONSEQUENCES
What is it possible to do for Clients?
18Copyright © Boxer Research Ltd 2015
Ultra-Large-Scale Socio-
Technical Ecosystems
Monolithic
Systems
Analysis of
Requisite Variety –
establishing the variety of
geometries needed
In practice we are always operating between the
ultra-large-scale and the monolithic
Invariances
resulting in
Quality
Attributes
Emergent
(orchestrations)
Static
(architectures)
Effects anticipated on
Demand Situation
Unanticipatable
(Effects
Ladders)
Planned
(Mission
Threads)
The client enterprise is operating
somewhere between ULS socio-technical
ecosystems in one direction, and
monolithic systems in the other
19
QAW/ATAM –
establishing the
quality attributes
of the architecture
Analysis of
stratification and
granularity,
identifying
requirements of
lower strata
SoS Mission
Threads
Analysis
Copyright © Boxer Research Ltd 2015
Analysis of socio-technical systems needs to include
relationships with three new (types of) view…
Constrains what is possible
Shapes granularity and stratification
Example Analyses Functional
Architecture
Description
Data Architecture
Description
Accountability
Hierarchies
Description
Social
Synchronization/
Data Fusion
Description
Description of
Heterogeneity of
Demand
Organization
Stand-alone Systems
 () - - -
Stand-alone Software
()  - - -
Complex SoS/EA
 () () - -
Case Examples
JFSP II: Framework
  ()  -
NATO AWACS: SoS
    ()
Thales: C4ISTAR
    
Projective Analysis
Views
Structure-
function
Trace Hierarchy Synchronization Demand
Example Analyses Functional
Architecture
Description
Data Architecture
Description
Stand-alone Systems
 ()
Stand-alone Software
() 
Complex SoS/EA
 ()
Case Examples
JFSP II: Framework
 
NATO AWACS: SoS
 
Thales: C4ISTAR
 
Projective Analysis
Views
Structure-
function
Trace
20Copyright © Boxer Research Ltd 2015
Stratification and granularity enabling
the supply-side to be aligned to the demand-side
4: Organisational Interoperability
(shared understanding of organizational processes)
3: Semantic Interoperability
(shared understanding of behavioral meaning)
2: Syntactic Interoperability
(communication is possible)
1: Machine Level Interoperability
(stuff works)
5: Situational Interoperability
(the way a situation is engaged with)
6: Effects Environment
(the contexts-of-use in which effects are being created)
The layers read into a
theatre-of-operations
context
decisive points
mission
command
(agile) force
structure
force elements
fielded
capability
equipment
capability
Engineering
constraints
‘supply-side’
pragmatic
constraints
‘demand-side’
The size of this overlap
depends on the
engineering constraints
being under-
determining
21Copyright © Boxer Research Ltd 2015
The Governance of Alignment can be approached
across eight dimensions of agility
Driven
from
‘center’
Driven from
‘the edge’
Doctrine & operational concepts The principles and operational methods underlying the approach to generating effects
Facilities & infrastructure The facilities and infrastructure that are the context within which the enterprise does its work
Leadership & education The ability to lead the enterprise creatively and effectively within the context of the its chosen domain of action
Materiel & technology The tools and technologies that the enterprise needs to be effective within its chosen domain of action
Edge organisation The particular orchestration and synchronisation of capabilities needed to meet a demand
Force composition & collective learning The people needed with the appropriate know-how and ability to work together collaboratively
Situational understanding The way data is able to be fused to provide a composite picture of what is going on in the particualr situation
Personnel & culture The people with the socialisation, background and mutual knowledge and trust to be able to work together
22Copyright © Boxer Research Ltd 2015
Four diagnostics shape how the need of the Client
Enterprise can be engaged with
Alignment of Organization &
Infrastructure to Demand
2
How does the client enterprise
align itself to its customers’
demands?
White:
how we must
do what we do
Blue:
what we do
Internal
External
Internal
External
Red:
particular
demands
Black:
the contexts
from which the
demands
emerge
The way
things
work
What
determines
shape
The way
things
work
What
determines
shape
Establishing the
Key Stakeholders
1
Who are the key
stakeholders in the
performance of the client
enterprise?
Influence Maps
and beyond
Internal Alignment of
DOTMLPFS
4
How are the internal
processes of the client
enterprise aligned?
Alignment of
Governance
Processes
Alignment of Service
Layers to Demand
3
What strategy and
economics are driving how
the client enterprise relates
to its customers’ demands?
Alignment of
Economics
SoS Mission Threads/ Quality
Attributes and
interoperability risks
pragmatic
constraints
Engineering
constraints
1: Machine Level Interoperability
(lexis)
2: SyntacticInteroperability
(command syntax)
3: Interoperabilityof Component Behaviors
(shared understanding of behavioral semantics)
4: OrganizationalInteroperability
(shared understanding through organizational semantics)
5: SituationalInteroperability
(pragmatics of theway a situation is engaged with)
6: Effects Environment
(thecontext-of-use in which effects are created)
Alignment of
Architectures
23Copyright © Boxer Research Ltd 2015
This leads to a different kind of analysis of
interoperability risks…
Source: Anderson, Boxer & Browsword (2006) An Examination of a Structural Modeling Risk Probe Technique, Special Report, Software Engineering Institute,
Carnegie Mellon University, CMU/SEI-2006-SR-017, October 2006. http://www.sei.cmu.edu/publications/documents/06.reports/06sr017.html
Special permission to use PAN in this Technical Probe was granted by Boxer Research Limited.
Identifying Interoperability Gaps in
the different strata
Analysis of Granularity
Socio-technical SoS in
relation to Demand
Functional/
Data Coupling
Demand
cohesion
Accountability
Hierarchies
Distinguishing three different
kinds of pattern
1
services
know-how
7 drivers
7b
problem
domains
6
demand
situations
mission
situations
5b
5
composition
of
orchestrated
constituent
capabilities
orchestrationsof
constituent capabilities 4b
constituent
capabilities
4
2b
3b
2outcomes 3
1c
super-
structure
1b
direct
organisation
0processes
events
6bdata fusion platforms
Analyzing alignment of
strata to demand
24Copyright © Boxer Research Ltd 2015
Modeling socio-technical
systems
Analyzing alignment of
strata to demand
5-6col1x5
unitorderborder_isr_cell
unitorderborder_reaper_strike_cell
unitorderborder_sf_cell
unitorderafghan_border_strike
unitorderborder_caoc_atc_sync
unitorderborder_hale_bm
unitorderborder_male_bm
traceventborder_male_outputs
traceventborder_hale_on_station
traceventborder_male_on_station
traceventborder_male_strike
traceventafghan_report
traceventborder_sf_on_station
traceventindividual_in_afghan-pakistan_border
channelborder_hale_bm
channelborder_male_bm
channelborder_isr_cell
channelborder_reaper_strike_cell
channelborder_sf_cell
c_sitnindividual_in_afghan-pakistan_border
orchnafghan_border_strike 1 1 1 1 1 1 1 1 1 1 1
outcomeborder_hale_on_station 1 1 1 1 1 1
outcomeborder_male_on_station 1 1 1 1 1 1
outcomeborder_male_strike 1 1 1 1 1 1
outcomeborder_sf_on_station 1 1 1 1
khowborder_sf 1 1 1 1 1 1
khowborder_male_strike 1 1 1 1 1 1 1
khowborder_hale_global_hawk 1 1 1
designborder_hale_global_hawk 1 1
designborder_male_operator 1 1 1 1 1 1 1
capyborder_hale_global_hawk 1 1
capyborder_male_reaper 1 1 1 1 1
capyborder_sf 1 1 1 1 1
systemborder_hale_global_hawk 1 1
systemborder_male_reaper 1 1 1 1 1 1
systemborder_sf 1 1
processborder_hale_global_hawk 1 1
processborder_male_reaper 1 1 1 1 1
processborder_sf 1 1 1 1 1
dprocessborder_hale_global_hawk 1
dprocessborder_male_reaper 1 1 1 1
Cohesion-based
Costing
Defence Expenditure
Scenario 1
Alternative
Large Scale
Small Scale enduring
Scenario 2
Scenario 3
Medium Scale enduring
Small Scale enduring
Small Scale one-off
Medium Scale enduring
Small Scale limited
Small Scale one-off
Monte Carlo Simulation of
impact of Variations in Demand
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0
75
150
225
300
375
450
525
600
675
750
825
900
975
1050
1125
1200
1275
1350
1425
Scaled Cost1 Scaled Cost2 Scaled Difference
The resultant Cost
Distributions Value for
Defence:
Value of
reduced
Costs of
Alignment
… and to a different kind of analysis of value
* See Boxer, P.J. (2008) What Price Agility? Managing Through-Life Purchaser-Provider Relationships on the Basis of the Ability to Price Agility, Navigator White
Paper, Software Engineering Institute, Carnegie Mellon University, September 2008
25Copyright © Boxer Research Ltd 2015
Case Examples
Case Root Customer Problem Outputs of Analysis Duration
Raytheon Need to create and position new value
propositions
Redefined the relationship to the market, making it
possible to capture new kinds of opportunity
2-3 day workshop for each
market
Thales Unable to cost alternative forms of
alignment and establish the value of
introducing new system flexibilities.
Established the baseline cost of current levels of
agility to support the value propositions of alternative
forms of flexibility
Three 1-day workshops +
analysis of cost data over 2-3
weeks
NHS Collaboration platform needed to
support roles and accountability
structure.
Provided a framework for through-life accountability
to the customer, changing the basis on which
customers can acquire services
2-3 days initial workshop, 3-4
weeks analysis + 1-day
feedback workshop
JFSP II/
CREATE
Horizontal and vertical scope of data and
scientific model collaboration platform.
Providing dynamic support to collaboration amongst
users through analysis of data fusion across chains of
scientific models.
Two 1-day workshops +
analysis over 2-3 weeks
JFSP I Gaps between profiles of strategic intent,
organizational plans and their execution.
Established the ability to determine the lack of
alignment between systems and the uses they are
ultimately supporting, facilitating investment
targeting
‘n’ interviews + interpretation
over 2-3 weeks + 1-day
feedback workshop.
NATO Gaps in the different layers of alignment
between the underlying systems and
their ultimate contexts of use.
Identified the risks to sustaining particular
organizations of interoperation, creating an explicit
focus on mitigating SoS risks
Three or four 2-day
workshops over 2-3 weeks
MoD Existing methods ‘blind’ to the required
variety of configurations of
interoperating capabilities
Extended the definition of capability gaps to include
organizations of interoperation, making it possible to
direct resources to SoS capabilities
Three 2-day workshops over
2-3 weeks
26Copyright © Boxer Research Ltd 2015
IN CONCLUSION
This leaves a lot of unresolved issues…
27Copyright © Boxer Research Ltd 2015
Affordable
Capability
Development Plan
Balance of
Investment
Resource
Constraints
Defence
Priorities
Force
Development
Options
Identify Capability
Mismatches
Capability
Assessment
Current and
Planned Capability
Capability Goals
Scenarios
Defence Priorities
Capability
Partitions
Government
Guidance
Future Environment
(Threat, Tech’y etc)
optional
Operational
Concepts
2. Needs addition of
capability goals for
orchestration and
synchronisation
1. Needs partitioning
superstructure made
independent of
stratification of
interoperability
3. Needs stratified analysis of requisite
interoperabilities across DOTMLPFs,
changing basis of assessment,
analysis of gaps and pricing of options
Source: Capability-Based Planning – Developing the Art, 2007
Critique of existing
Capability Engineering
28Copyright © Boxer Research Ltd 2015
Bridging between the medium and the longer term
• The Challenges
– What kind of Governance is appropriate
to the distributed collaborations across
ULS systems?
– How are the changing services provided
by the operational components of ULS
systems to be enabled to achieve levels
of cooperation and collaboration that
can satisfy requirements for fast system
evolution?
– How are we to enable the distributed
collaborations across ULS systems to be
edge-driven?
– How are the processes of orchestration
and synchronisation to work in ULS
systems?
– How are people to be taken into
consideration as first-class components
of ULS systems?
• Unresolved Issues
– How are the questions of authorization
and ‘in whose interests’ to be
approached?
– If stratification is driven as much by the
contexts of use as it is by what is
computationally feasible, how are these
two ‘axes’ of engineering to be held in
relation to each other in ULS systems?
– How is the nature of demand on ULS
systems to be understood?
– What is the place of accountability,
transparency and risk in these
processes?
– What assumptions are being made
about the relationships between
person, enterprise and ULS system?
29Copyright © Boxer Research Ltd 2015
Balance of
Investment
Capability
Assessment
Capability
Goals
Scenarios
Capability
Partitions
Future Environment
(Threat, Tech’y etc)
optional
Operational
Concepts
Force Development
Options
Stratified
Analysis
Interoperabilities
across all DOTMLPFs
Analysis of
Alignment Costs
Pricing of options
across all DOTMLPFs
Force Geometries
Orchestration &
Synchronisation
Risk Analysis +
Identify Capability
Mismatches
Agility types I, II & III
interoperability risks
Requisite variety of
geometries
Force
Geometries
‘envelope’
Capability
Engineering for
Agility
30Copyright © Boxer Research Ltd 2015
END
31Copyright © Boxer Research Ltd 2015
UAV II – CCIR ISTAR asset (Watchkeeper)
UAV I – over-the-horizon
targeting (Phoenix)
Without an ability to analyze cohesion it is difficult to
establish the costs of alignment…
The asset moved from being
organic to the MLRS capability to
providing a capability to Divisional
Command
32Copyright © Boxer Research Ltd 2015
… and identifying options for increasing agility
UAV III – extending
‘edge’ capability
(+ Nimrod, Lydian &
Desert Hawk)
Afghanistan needs a much
greater layering (and fusion)
of feeds and their much
greater availability at the
‘edge’ in support of a greater
campaign tempo with a
commensurately greater
readiness tempo
33
The unanticipated
need for agility can
be very expensive
Copyright © Boxer Research Ltd 2015

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Governance in Ultra-Large-Scale Systems

  • 1. Governance in Ultra-Large-Scale (ULS) Systems Philip Boxer BSc MBA PhD 1Copyright © Boxer Research Ltd 2015
  • 2. Contents • The Policy, Acquisition and Management Research Agenda – What kinds of challenges are these? • On Orchestration and Synchronisation – What insight can be derived from this experience? • Practical Consequences – What is it possible to do for clients? • In Conclusion – This leaves a lot of unresolved issues… 2Copyright © Boxer Research Ltd 2015
  • 3. THE POLICY, ACQUISITION AND MANAGEMENT RESEARCH AREA What kinds of Challenges are these? 3Copyright © Boxer Research Ltd 2015
  • 4. The Governance framework is crucial – Given the scope and scale of ULS systems, technical, organizational, and operational policies will emerge as principal vehicles for ensuring harmonious operations at all levels. – The size and highly distributed nature of ULS systems will limit global visibility and decentralize system management within an overall framework of organizational, technical, and operational policies. – Research is required in how to define ULS system policies that specify organizational, technical, and operational constraints for global system integrity and freedoms for flexible adaptation. – Much of the evolution of ULS systems will occur in situ, thereby imposing requirements to maintain critical operational capabilities while adding or improving other capabilities in place − What kind of Governance is appropriate to the distributed collaborations across ULS systems (sometimes described as having virtual* characteristics)? * For example, “Virtual systems of systems lack a central management authority and a centrally agreed upon purpose. Large- scale behavior emerges and may be desirable, but this type of SoS must rely upon relatively invisible mechanisms to maintain it.” Systems Engineering for Systems of Systems, August 2008, Office of the Under Secretary of Defense (Acquisition, Technology and Logistics) 4Copyright © Boxer Research Ltd 2015
  • 5. The supporting systems and infrastructures have to be understood differently – Research is needed to understand how supply-chain organizations could be integrated as first-class operational components into ULS ecosystems… – In such an environment, supply-chain organizations ranging from established vendors to open-source collaborations could undergo periodic assessment of capabilities, participate in joint training and readiness exercises with the forces, and come and go as needs and capabilities change. – The supply chains of vendors and integrators that will populate ULS ecosystems must be organized, and incentives must be provided to evolve ULS system capabilities at a rapid pace in response to changing operational needs. * For example in the need for Through-Life Capability Management (TLCM): “a greater proportion of our overall business is available to industry than in any other major defence nation, and growing expertise in the combination of systems engineering skills, agility and supply chain management required to deliver TLCM gives the UK defence industry a comparative advantage.” UK Defence Industrial Strategy December 2005 p6. − How are the changing services provided by the operational components of ULS systems to be enabled to achieve levels of cooperation and collaboration that can satisfy requirements for fast system evolution*? 5Copyright © Boxer Research Ltd 2015
  • 6. Demand issues are of a different kind – The pervasive application of ULS systems to support global operations in many simultaneous strategic and tactical situations will generate many requirements for rapid evolution to meet changing threats and environments. – ULS systems will experience and should create incentives for substantial local adaptation and bottom-up evolution – ULS systems will be designed to support dynamic coalitions and management of tactical and strategic operations through linkage of field units with command-and-control functions on any scale necessary. – The overarching requirement for ULS systems is operational readiness at all times under all conditions… ULS systems will be required to adapt to changing missions and unanticipated circumstances encountered by warfighters. * An ‘edge’ is any particular situation/context where a threat-demand is encountered that the ULS system must respond to. An early formulation of this was in Power to the Edge: command and control in the information age, Alberts & Hayes, DoD CCRP June 2004. − How are we to enable the distributed collaborations across ULS systems to be edge- driven*? 6Copyright © Boxer Research Ltd 2015
  • 7. Collaborative processes are critical – Policies must support both local and global operations in such a way that people and the computational actions they initiate can achieve cooperative and even competing objectives without impairing the viability of the system as a whole. – It may often be the case that, to meet immediate needs, local users of ULS systems will be forced to engage in ad hoc acquisition of components whose functionality and quality properties are not well understood or trusted. Because these components address unforeseen problems, an opportunity will arise to improve and generalize their application across similar environments. – ULS systems engineering development and operational use will generate knowledge that can be preserved and analyzed to guide future evolution. * “Orchestration is the set of activities needed to make the elements of a ULS system work in reasonable harmony to ensure continuous satisfaction of the mission objectives”. p25 ULS Systems − How are the processes of orchestration and synchronisation to work in ULS systems?* 7Copyright © Boxer Research Ltd 2015
  • 8. Taking the human factor into consideration – People are key participants in ULS systems. Many problems in complex systems today stem from failures at the individual and organizational level. We therefore need research on user-centered specifications and on modeling users and user communities. – While some models of human interaction are inspired primarily by economic factors and competitive forces to drive improvements, research is needed to understand other models, such as open source, that involve fostering non-competitive social collaboration. – We cannot fully anticipate the context within which ULS systems will operate and necessarily evolve, as the socio-cultural practices of many different groups (stakeholders, users) will, in fact, be constructing this real-world computational environment. The challenge is thus to design and support systems using an accurate model (scientific understanding) of this ULS/social-context interaction. − How are people to be taken into consideration as first-class components of ULS systems?* Collaborative processes are critical Demand issues are of a different kind The supporting systems and infrastructures have to be understood differently The Governance framework is crucial N-S are limiting E-W are enabling 8 * Boxer, P. J. (2014). "Leading Organisations Without Boundaries: 'Quantum' Organisation and the Work of Making Meaning." Organizational and Social Dynamics 14(1): 130-153. Copyright © Boxer Research Ltd 2015
  • 9. Client Situations generating learning about these challenges Client Instances The problem motivating their interest • Thales/Bosch • Unable to take advantage of and manage the opportunities emerging among multiple related customers with differing interests. • UK NHS/BT • Unaddressed client needs because of limitations to existing business models • Create/JFSP • Difficulty in managing complexity of modeling frameworks within acceptable timeframes • NATO/MilSatcom • Systematic identification and structuring of risks to deployment and sustainment of operational capabilities • MOD NiteWorks/Army Software Blocking • Unaffordable cost trends plus lack of ability to support rates of operational change, and failure to meet time deadlines supporting deployment • Raytheon/MoD • The customer changing from an equipment-based to a capability-based approach to acquisition and its effects on how the supplier’s market is defined 9Copyright © Boxer Research Ltd 2015
  • 10. ON ORCHESTRATION AND SYNCHRONISATION What insights can be derived from this experience? 10Copyright © Boxer Research Ltd 2015
  • 11. The Supplier is supporting the Client Enterprise managing three diverging tempos… Customers of the Client Enterprise Supplier Socio-technical Client Enterprise Socio-technical Ecosystem Demand Tempo The rate at which new forms of demand need to be satisfied Supplier 1 Supplier 2 sub-contract sub-contract Acquisition Tempo The rate at which new requirements can be met Client Enterprise users users Readiness Tempo orchestration synchronization The rate at which the client enterprise is able to support new forms of value proposition Demanded effects in the customer’s context-of-use The client enterprise aligns to the demand of the customer The supplier responds to the client enterprise aligning to the demands of its customers Projective analysis 11Copyright © Boxer Research Ltd 2015
  • 12. Opportunistic (marginal/ incremental costs) Niche-based (focus where Positional advantage can be sustained) Client’s Economies of Alignment No Yes Supplier’s Economies of Scale or Scope Yes No Effects-based (focus where Relational advantage can be sustained) The challenge for the business is to be able to include effects-based forms of competition Digitalisation The processes of digitalisation change the economics of alignment Over time, innovations in response to demand are imitated and become generally available from suppliers The Supplier has to support the Client’s effects-basing, adding the need to generate Economies of Alignment for the Client 12Copyright © Boxer Research Ltd 2015
  • 13. Defence Enterprise Acquisition Tempo Readiness Tempo Adapted from: “Appropriate Collaboration and Appropriate Competition in C4ISTAR Transformation”, Dr Nicholas Whittall RUSI 2007 Campaign Tempo Gap = Need Acquisition Effect Threat-Demands Composite Capability Capability Capability Capability Orchestration Doctrine Organization Training Materiel Leadership Personnel Facilities Suppliers Capability Requirement Traditional Defense Companies await Requirements expressed in Programmes. Competitive advantage to be gained in aligning the Need to the Demand. Competitive advantage to be gained from dynamic alignment of Composite Capabilities to the Threat-Demands. Divergence of tempos increases costs of alignment Divergence of tempos increases Costs of Alignment associated with Readiness The divergence of tempos creates an agility challenge 13Copyright © Boxer Research Ltd 2015
  • 14. With effects-basing, Value comes from managing a Double ‘V’ Requirement Solution Components Design decomposition Design integration The cycle creating Value Orchestrations Military Effects Composite Capabilities Joint Command Gaps in Force Command Structure and Composite Capabilities Scenarios and Campaign Plans Capability = Solution plus DOTMLPF Requirement = Capability gap minus DOTMLPF demand-side supply-side Boxer, P.J. (2007) Managing the SoS Value Cycle, January 2007, http://www.asymmetricdesign.com/archives/85 Synchronisations 14Copyright © Boxer Research Ltd 2015
  • 15. The unanticipated need for agility can be very expensive Level of short-term savings – the cost of the option to satisfy a significant part of the UAV III need The cumulative costs of sourcing UAVs I & IIUAV I – over-the- horizon targeting (Phoenix) UAV II – CCIR ISTAR asset (Watchkeeper) Level of additional expenditure incurred through Urgent Operational Requirements to deliver UAV III UAV III – extending ‘edge’ capability (+Nimrod, Lydian & Desert Hawk) How should this option have been valued? 15 Without an ability to analyze cohesion it is difficult to establish the costs of alignment and identifying options for increasing agility Copyright © Boxer Research Ltd 2015
  • 16. a’b’ 2. Change in variance in levels of expenditure, based on the difference between the two curves ‘a’ and ‘b’ Probability Levels of expenditure meeting Customer Demands The cost of Force Structure ‘b’ across the variety of demands b ‘Real Option’ pricing allows a value to be assigned to these changes in variance a The cost of Force Structure ‘a’ across the variety of demands 1. Reduction in average level of expenditure through impact of capability trade. The value of an incremental investment in some new capability is the impact of both the trade and the change in agility* * Agility = property of the Force Structure enabling it do more things with the same underlying capability set. The Value of Agility for the Client Enterprise is to reduce the variance in expenditures Two kinds of benefit: 16Copyright © Boxer Research Ltd 2015
  • 17. Value comes through creating Real Options that increase the agility of force structures 2: Real Option Valuations (agreed perceptions of likelihood of future scenario mix => distribution of demand across options for composite capabilities) 4: Engineering for Flexibility (maximise mitigation of interoperability risks) 1: Varieties of Geometries of use x Decisive Points (across all possible scenarios. Assumes technical feasibility) What is valued politically => where to develop agility Determines the underlying context in which new demands have to be met Determines forms of cohesion demanded Requirement for flexibility in capabilities 3: Type III Agility (defining new capabilities for distributed collaboration and requisite granularity of supporting capabilities) 17Copyright © Boxer Research Ltd 2015
  • 18. PRACTICAL CONSEQUENCES What is it possible to do for Clients? 18Copyright © Boxer Research Ltd 2015
  • 19. Ultra-Large-Scale Socio- Technical Ecosystems Monolithic Systems Analysis of Requisite Variety – establishing the variety of geometries needed In practice we are always operating between the ultra-large-scale and the monolithic Invariances resulting in Quality Attributes Emergent (orchestrations) Static (architectures) Effects anticipated on Demand Situation Unanticipatable (Effects Ladders) Planned (Mission Threads) The client enterprise is operating somewhere between ULS socio-technical ecosystems in one direction, and monolithic systems in the other 19 QAW/ATAM – establishing the quality attributes of the architecture Analysis of stratification and granularity, identifying requirements of lower strata SoS Mission Threads Analysis Copyright © Boxer Research Ltd 2015
  • 20. Analysis of socio-technical systems needs to include relationships with three new (types of) view… Constrains what is possible Shapes granularity and stratification Example Analyses Functional Architecture Description Data Architecture Description Accountability Hierarchies Description Social Synchronization/ Data Fusion Description Description of Heterogeneity of Demand Organization Stand-alone Systems  () - - - Stand-alone Software ()  - - - Complex SoS/EA  () () - - Case Examples JFSP II: Framework   ()  - NATO AWACS: SoS     () Thales: C4ISTAR      Projective Analysis Views Structure- function Trace Hierarchy Synchronization Demand Example Analyses Functional Architecture Description Data Architecture Description Stand-alone Systems  () Stand-alone Software ()  Complex SoS/EA  () Case Examples JFSP II: Framework   NATO AWACS: SoS   Thales: C4ISTAR   Projective Analysis Views Structure- function Trace 20Copyright © Boxer Research Ltd 2015
  • 21. Stratification and granularity enabling the supply-side to be aligned to the demand-side 4: Organisational Interoperability (shared understanding of organizational processes) 3: Semantic Interoperability (shared understanding of behavioral meaning) 2: Syntactic Interoperability (communication is possible) 1: Machine Level Interoperability (stuff works) 5: Situational Interoperability (the way a situation is engaged with) 6: Effects Environment (the contexts-of-use in which effects are being created) The layers read into a theatre-of-operations context decisive points mission command (agile) force structure force elements fielded capability equipment capability Engineering constraints ‘supply-side’ pragmatic constraints ‘demand-side’ The size of this overlap depends on the engineering constraints being under- determining 21Copyright © Boxer Research Ltd 2015
  • 22. The Governance of Alignment can be approached across eight dimensions of agility Driven from ‘center’ Driven from ‘the edge’ Doctrine & operational concepts The principles and operational methods underlying the approach to generating effects Facilities & infrastructure The facilities and infrastructure that are the context within which the enterprise does its work Leadership & education The ability to lead the enterprise creatively and effectively within the context of the its chosen domain of action Materiel & technology The tools and technologies that the enterprise needs to be effective within its chosen domain of action Edge organisation The particular orchestration and synchronisation of capabilities needed to meet a demand Force composition & collective learning The people needed with the appropriate know-how and ability to work together collaboratively Situational understanding The way data is able to be fused to provide a composite picture of what is going on in the particualr situation Personnel & culture The people with the socialisation, background and mutual knowledge and trust to be able to work together 22Copyright © Boxer Research Ltd 2015
  • 23. Four diagnostics shape how the need of the Client Enterprise can be engaged with Alignment of Organization & Infrastructure to Demand 2 How does the client enterprise align itself to its customers’ demands? White: how we must do what we do Blue: what we do Internal External Internal External Red: particular demands Black: the contexts from which the demands emerge The way things work What determines shape The way things work What determines shape Establishing the Key Stakeholders 1 Who are the key stakeholders in the performance of the client enterprise? Influence Maps and beyond Internal Alignment of DOTMLPFS 4 How are the internal processes of the client enterprise aligned? Alignment of Governance Processes Alignment of Service Layers to Demand 3 What strategy and economics are driving how the client enterprise relates to its customers’ demands? Alignment of Economics SoS Mission Threads/ Quality Attributes and interoperability risks pragmatic constraints Engineering constraints 1: Machine Level Interoperability (lexis) 2: SyntacticInteroperability (command syntax) 3: Interoperabilityof Component Behaviors (shared understanding of behavioral semantics) 4: OrganizationalInteroperability (shared understanding through organizational semantics) 5: SituationalInteroperability (pragmatics of theway a situation is engaged with) 6: Effects Environment (thecontext-of-use in which effects are created) Alignment of Architectures 23Copyright © Boxer Research Ltd 2015
  • 24. This leads to a different kind of analysis of interoperability risks… Source: Anderson, Boxer & Browsword (2006) An Examination of a Structural Modeling Risk Probe Technique, Special Report, Software Engineering Institute, Carnegie Mellon University, CMU/SEI-2006-SR-017, October 2006. http://www.sei.cmu.edu/publications/documents/06.reports/06sr017.html Special permission to use PAN in this Technical Probe was granted by Boxer Research Limited. Identifying Interoperability Gaps in the different strata Analysis of Granularity Socio-technical SoS in relation to Demand Functional/ Data Coupling Demand cohesion Accountability Hierarchies Distinguishing three different kinds of pattern 1 services know-how 7 drivers 7b problem domains 6 demand situations mission situations 5b 5 composition of orchestrated constituent capabilities orchestrationsof constituent capabilities 4b constituent capabilities 4 2b 3b 2outcomes 3 1c super- structure 1b direct organisation 0processes events 6bdata fusion platforms Analyzing alignment of strata to demand 24Copyright © Boxer Research Ltd 2015
  • 25. Modeling socio-technical systems Analyzing alignment of strata to demand 5-6col1x5 unitorderborder_isr_cell unitorderborder_reaper_strike_cell unitorderborder_sf_cell unitorderafghan_border_strike unitorderborder_caoc_atc_sync unitorderborder_hale_bm unitorderborder_male_bm traceventborder_male_outputs traceventborder_hale_on_station traceventborder_male_on_station traceventborder_male_strike traceventafghan_report traceventborder_sf_on_station traceventindividual_in_afghan-pakistan_border channelborder_hale_bm channelborder_male_bm channelborder_isr_cell channelborder_reaper_strike_cell channelborder_sf_cell c_sitnindividual_in_afghan-pakistan_border orchnafghan_border_strike 1 1 1 1 1 1 1 1 1 1 1 outcomeborder_hale_on_station 1 1 1 1 1 1 outcomeborder_male_on_station 1 1 1 1 1 1 outcomeborder_male_strike 1 1 1 1 1 1 outcomeborder_sf_on_station 1 1 1 1 khowborder_sf 1 1 1 1 1 1 khowborder_male_strike 1 1 1 1 1 1 1 khowborder_hale_global_hawk 1 1 1 designborder_hale_global_hawk 1 1 designborder_male_operator 1 1 1 1 1 1 1 capyborder_hale_global_hawk 1 1 capyborder_male_reaper 1 1 1 1 1 capyborder_sf 1 1 1 1 1 systemborder_hale_global_hawk 1 1 systemborder_male_reaper 1 1 1 1 1 1 systemborder_sf 1 1 processborder_hale_global_hawk 1 1 processborder_male_reaper 1 1 1 1 1 processborder_sf 1 1 1 1 1 dprocessborder_hale_global_hawk 1 dprocessborder_male_reaper 1 1 1 1 Cohesion-based Costing Defence Expenditure Scenario 1 Alternative Large Scale Small Scale enduring Scenario 2 Scenario 3 Medium Scale enduring Small Scale enduring Small Scale one-off Medium Scale enduring Small Scale limited Small Scale one-off Monte Carlo Simulation of impact of Variations in Demand 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0 75 150 225 300 375 450 525 600 675 750 825 900 975 1050 1125 1200 1275 1350 1425 Scaled Cost1 Scaled Cost2 Scaled Difference The resultant Cost Distributions Value for Defence: Value of reduced Costs of Alignment … and to a different kind of analysis of value * See Boxer, P.J. (2008) What Price Agility? Managing Through-Life Purchaser-Provider Relationships on the Basis of the Ability to Price Agility, Navigator White Paper, Software Engineering Institute, Carnegie Mellon University, September 2008 25Copyright © Boxer Research Ltd 2015
  • 26. Case Examples Case Root Customer Problem Outputs of Analysis Duration Raytheon Need to create and position new value propositions Redefined the relationship to the market, making it possible to capture new kinds of opportunity 2-3 day workshop for each market Thales Unable to cost alternative forms of alignment and establish the value of introducing new system flexibilities. Established the baseline cost of current levels of agility to support the value propositions of alternative forms of flexibility Three 1-day workshops + analysis of cost data over 2-3 weeks NHS Collaboration platform needed to support roles and accountability structure. Provided a framework for through-life accountability to the customer, changing the basis on which customers can acquire services 2-3 days initial workshop, 3-4 weeks analysis + 1-day feedback workshop JFSP II/ CREATE Horizontal and vertical scope of data and scientific model collaboration platform. Providing dynamic support to collaboration amongst users through analysis of data fusion across chains of scientific models. Two 1-day workshops + analysis over 2-3 weeks JFSP I Gaps between profiles of strategic intent, organizational plans and their execution. Established the ability to determine the lack of alignment between systems and the uses they are ultimately supporting, facilitating investment targeting ‘n’ interviews + interpretation over 2-3 weeks + 1-day feedback workshop. NATO Gaps in the different layers of alignment between the underlying systems and their ultimate contexts of use. Identified the risks to sustaining particular organizations of interoperation, creating an explicit focus on mitigating SoS risks Three or four 2-day workshops over 2-3 weeks MoD Existing methods ‘blind’ to the required variety of configurations of interoperating capabilities Extended the definition of capability gaps to include organizations of interoperation, making it possible to direct resources to SoS capabilities Three 2-day workshops over 2-3 weeks 26Copyright © Boxer Research Ltd 2015
  • 27. IN CONCLUSION This leaves a lot of unresolved issues… 27Copyright © Boxer Research Ltd 2015
  • 28. Affordable Capability Development Plan Balance of Investment Resource Constraints Defence Priorities Force Development Options Identify Capability Mismatches Capability Assessment Current and Planned Capability Capability Goals Scenarios Defence Priorities Capability Partitions Government Guidance Future Environment (Threat, Tech’y etc) optional Operational Concepts 2. Needs addition of capability goals for orchestration and synchronisation 1. Needs partitioning superstructure made independent of stratification of interoperability 3. Needs stratified analysis of requisite interoperabilities across DOTMLPFs, changing basis of assessment, analysis of gaps and pricing of options Source: Capability-Based Planning – Developing the Art, 2007 Critique of existing Capability Engineering 28Copyright © Boxer Research Ltd 2015
  • 29. Bridging between the medium and the longer term • The Challenges – What kind of Governance is appropriate to the distributed collaborations across ULS systems? – How are the changing services provided by the operational components of ULS systems to be enabled to achieve levels of cooperation and collaboration that can satisfy requirements for fast system evolution? – How are we to enable the distributed collaborations across ULS systems to be edge-driven? – How are the processes of orchestration and synchronisation to work in ULS systems? – How are people to be taken into consideration as first-class components of ULS systems? • Unresolved Issues – How are the questions of authorization and ‘in whose interests’ to be approached? – If stratification is driven as much by the contexts of use as it is by what is computationally feasible, how are these two ‘axes’ of engineering to be held in relation to each other in ULS systems? – How is the nature of demand on ULS systems to be understood? – What is the place of accountability, transparency and risk in these processes? – What assumptions are being made about the relationships between person, enterprise and ULS system? 29Copyright © Boxer Research Ltd 2015
  • 30. Balance of Investment Capability Assessment Capability Goals Scenarios Capability Partitions Future Environment (Threat, Tech’y etc) optional Operational Concepts Force Development Options Stratified Analysis Interoperabilities across all DOTMLPFs Analysis of Alignment Costs Pricing of options across all DOTMLPFs Force Geometries Orchestration & Synchronisation Risk Analysis + Identify Capability Mismatches Agility types I, II & III interoperability risks Requisite variety of geometries Force Geometries ‘envelope’ Capability Engineering for Agility 30Copyright © Boxer Research Ltd 2015
  • 31. END 31Copyright © Boxer Research Ltd 2015
  • 32. UAV II – CCIR ISTAR asset (Watchkeeper) UAV I – over-the-horizon targeting (Phoenix) Without an ability to analyze cohesion it is difficult to establish the costs of alignment… The asset moved from being organic to the MLRS capability to providing a capability to Divisional Command 32Copyright © Boxer Research Ltd 2015
  • 33. … and identifying options for increasing agility UAV III – extending ‘edge’ capability (+ Nimrod, Lydian & Desert Hawk) Afghanistan needs a much greater layering (and fusion) of feeds and their much greater availability at the ‘edge’ in support of a greater campaign tempo with a commensurately greater readiness tempo 33 The unanticipated need for agility can be very expensive Copyright © Boxer Research Ltd 2015