WEBVTT

1
00:00:00.519 --> 00:00:01.770
(light electronic music)

2
00:00:01.770 --> 00:00:03.150
<v ->Innovation is top of mind</v>

3
00:00:03.150 --> 00:00:06.420
for nearly every defense leader that we meet with.

4
00:00:06.420 --> 00:00:07.950
Ministries of defense know they need

5
00:00:07.950 --> 00:00:09.570
to innovate more effectively,

6
00:00:09.570 --> 00:00:12.870
but their ability to do is often misunderstood.

7
00:00:12.870 --> 00:00:15.690
Accordingly, BCG has been studying defense innovation

8
00:00:15.690 --> 00:00:17.640
for the past several years in conjunction

9
00:00:17.640 --> 00:00:19.260
with the Munich Security Conference.

10
00:00:19.260 --> 00:00:21.660
And the results of this research is clear:

11
00:00:21.660 --> 00:00:23.940
we continue to consistently see a gap

12
00:00:23.940 --> 00:00:26.670
between countries' aspirations for innovation

13
00:00:26.670 --> 00:00:29.460
and their ability to generate results.

14
00:00:29.460 --> 00:00:30.540
This is something we call

15
00:00:30.540 --> 00:00:32.723
the Defense Innovation Readiness Gap.

16
00:00:32.723 --> 00:00:34.860
(light electronic music continues)

17
00:00:34.860 --> 00:00:36.300
<v ->In our latest analysis,</v>

18
00:00:36.300 --> 00:00:38.580
we found that countries narrowed that gap

19
00:00:38.580 --> 00:00:41.130
over the past year, but they're still well below

20
00:00:41.130 --> 00:00:44.190
the innovation capabilities of leading companies.

21
00:00:44.190 --> 00:00:46.470
Some of the gap is understandable.

22
00:00:46.470 --> 00:00:48.750
The public sector can't always move as fast

23
00:00:48.750 --> 00:00:50.640
as the private sector.

24
00:00:50.640 --> 00:00:53.283
But defense ministries can clearly get better.

25
00:00:54.411 --> 00:00:57.780
<v ->MODs have focused on partnerships to help close this gap,</v>

26
00:00:57.780 --> 00:01:00.390
with 84% teaming on at least half

27
00:01:00.390 --> 00:01:02.220
of their innovation efforts.

28
00:01:02.220 --> 00:01:05.280
These partnerships or innovation ecosystems

29
00:01:05.280 --> 00:01:06.750
take a range of forms,

30
00:01:06.750 --> 00:01:09.540
each with their own set of challenges.

31
00:01:09.540 --> 00:01:12.090
<v ->Through our work, we've identified five priorities</v>

32
00:01:12.090 --> 00:01:13.470
for ministries that want to partner

33
00:01:13.470 --> 00:01:15.600
and innovate more effectively.

34
00:01:15.600 --> 00:01:19.050
First: effective innovative collaborations built

35
00:01:19.050 --> 00:01:21.600
on the unique capabilities of partners.

36
00:01:21.600 --> 00:01:23.400
Countries have different strengths,

37
00:01:23.400 --> 00:01:25.380
and partnerships should identify and capitalize

38
00:01:25.380 --> 00:01:26.850
on those strengths rather than trying

39
00:01:26.850 --> 00:01:29.970
to divide a program based on perceived fairness.

40
00:01:29.970 --> 00:01:33.570
<v ->Second: put the right governance in place.</v>

41
00:01:33.570 --> 00:01:36.210
A single orchestrator should be in charge,

42
00:01:36.210 --> 00:01:38.220
with the right information and the authority

43
00:01:38.220 --> 00:01:41.880
to make key decisions for the overall group.

44
00:01:41.880 --> 00:01:45.750
<v ->Third: cultivate open and effective cooperation.</v>

45
00:01:45.750 --> 00:01:49.350
This includes sharing information and intellectual property

46
00:01:49.350 --> 00:01:52.440
and incorporating modular, open systems.

47
00:01:52.440 --> 00:01:54.870
This puts the right foundation in place

48
00:01:54.870 --> 00:01:58.615
to accelerate innovation and avoid future misunderstandings.

49
00:01:58.615 --> 00:02:00.600
(light electronic music continues)

50
00:02:00.600 --> 00:02:04.620
<v ->Fourth: build resiliency into the planning process.</v>

51
00:02:04.620 --> 00:02:07.740
Defense programs are complex and have long timelines,

52
00:02:07.740 --> 00:02:09.720
and there's a risk that they get to the finish line

53
00:02:09.720 --> 00:02:12.600
in time to solve problems that no longer exist.

54
00:02:12.600 --> 00:02:16.020
An agile, iterative approach with real-world input

55
00:02:16.020 --> 00:02:17.670
from users during the design phase

56
00:02:17.670 --> 00:02:19.443
can make programs more resilient.

57
00:02:20.610 --> 00:02:25.380
<v ->Fifth: make industry and civil society organizations</v>

58
00:02:25.380 --> 00:02:27.180
a force-multiplier.

59
00:02:27.180 --> 00:02:29.700
Capitalize on the private sector

60
00:02:29.700 --> 00:02:33.360
and nontraditional players, like academia and NGOs,

61
00:02:33.360 --> 00:02:37.800
to access the best talent and best ideas.

62
00:02:37.800 --> 00:02:40.650
<v ->These five steps can make innovation partnerships</v>

63
00:02:40.650 --> 00:02:42.540
far more effective.

64
00:02:42.540 --> 00:02:45.390
They're a proven way for defense ministries

65
00:02:45.390 --> 00:02:48.030
to get better at innovation and for countries

66
00:02:48.030 --> 00:02:49.505
to become more secure.

67
00:02:49.505 --> 00:02:53.755
(light electronic music continues)