“NATIONAL DEFENSE MAGAZINE” By Tyler Sweatt
“The urgency for agility in defense technology isn’t just about speed or efficiency — it’s about fostering a robust and vibrant ecosystem that can adapt to evolving threats and capitalize on emerging opportunities.”
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“Here are some transformative remedies essential for cultivating such an ecosystem within the Defense Department.
The first remedy, “commercialization for agility,” will help broaden the landscape of experimentation.
The Pentagon must make bold bets on emerging technologies, much like the private sector. Playing it safe isn’t an option in today’s fast-paced landscape. The current process is slow, leaving many companies to rely on private venture capital to survive the valley of death as they pursue financial stability via larger and longer-term contracts. It’s time for the department to create a vibrant, open market that fosters rapid advancement rather than stagnation.
A prime example of commercialization done well is In-Q-Tel, the venture arm of the intelligence community. It has been instrumental in identifying, funding and rapidly deploying cutting-edge technologies for national security needs. By working with early-stage companies, In-Q-Tel shares the risk of testing and deploying unproven technologies, allowing the leveraging of private innovation while the government reaps the benefits of commercial agility.
To replicate this success, the Defense Department needs a dedicated software leader to oversee the current decentralized software factories and programs that make up the organization’s software development efforts. That entity would streamline tech adoption, break down internal barriers and push for commercial-grade agility.
Paired with strong leadership, the department should improve access to data for improved decision-making — without it, experimentation and iteration are impossible. By adopting this approach, it can share the risk of early-stage tech development and accelerate the cycle of innovation, turning bold bets into real results.
Emphasizing the importance of partnerships is another crucial remedy in achieving a unified ecosystem for innovation.Innovation doesn’t happen in isolation, and in the context of defense technology, partnerships are crucial. However, this is at odds with the present “us versus them” mentality that characterizes relationships between the Pentagon and the private sector.
Instead, venture capital, human capital and startups should operate as a unified ecosystem where mutually beneficial relationships drive growth and success. The Defense Department should act as a convener and strategic investor, leveraging existing programs and innovation hubs to facilitate knowledge sharing and partnerships while simultaneously making big bets on critical technologies to incentivize long-term venture capital investment.
With the Defense Innovation Unit’s budget increasing to nearly $900 million in fiscal year 2025, defense leaders are in a prime position to unify this fragmented national security innovation base. While this is a positive step, more tangible action is needed across the department.
The strategic investment in cloud and emerging technologies is an additional solution that promotes flexibility and scalability.
It’s no shock to anyone that cloud computing offers immense benefits — adaptability and the capacity to manage vast amounts of data efficiently. The private sector has been capitalizing on these advantages for years, transforming how businesses operate and innovate. So, why is the Pentagon still lagging?
It is bogged down by bureaucracy and legacy systems which prevent the defense sector from tapping into the potential of cloud-based solutions, leaving it less agile and responsive to threats. As of late 2023, less than 2 percent of the $9 billion earmarked for the Joint Warfighting Cloud Capability had been committed, demonstrating the slow adoption of cloud services across the enterprise ecosystem.
Emerging technologies like artificial intelligence only amplify this urgency. AI, combined with cloud computing, could supercharge capabilities in areas like predictive analytics, autonomous systems and cybersecurity.
By strategically investing in AI and other emerging technologies through efforts such as the Department of the Air Force/MIT AI Accelerator and the Air Force Small Business Innovation Research Open Topic program, the Defense Department can enhance its operational capabilities, improve decision-making processes and maintain a technological edge over adversaries.
Finally, divestment of outdated methods can unlock innovation through modernization.
Outdated technology and entrenched legacy systems continue to be major obstacles to innovation within the department. These legacy programs are slow and filled with security gaps, creating bottlenecks across defense operations. It must divest from these outdated methods and embrace modern, vendor-provided solutions that allow for more adaptable work streams.
A powerful example of how this can be done comes from Alexis Bonnell, chief information officer of the Air Force Research Lab. Bonnell introduced “kill bonuses” as an incentive for her teams to actively move away from legacy technology and inefficient processes. By rewarding individuals and teams for letting go of what no longer works, these bonuses drive up the adoption of more modern, effective systems.
This concept and other ways of incentivizing change should be adopted more broadly across the department. Divesting from outdated programs frees up resources for the technologies that matter most, enabling a more agile and responsive ecosystem.
Currently, the defense tech ecosystem within the Defense Department is at a critical juncture. To remain agile, robust and capable of responding to emerging threats, it must embrace a new paradigm — one that prioritizes commercialization, partnerships, strategic investments and divestment from outdated methods. By doing so, the United States will maintain its technological edge in an increasingly complex and unstable global landscape. “
ABOUT THE AUTHOR:
Tyler Sweatt is the CEO at Second Front Systems, a technical advisor at Pallas Advisors and partner at Silicon Valley Defense Group.
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