A Fresh Perspective on DoD Innovation

As our team prepares to attend the AFA conference, I find myself reflecting on our partnerships with the Department of Defense (DoD). These partnerships have been invaluable, and I am deeply grateful for them. The views I share here are my own.

Innovation in the DoD: A Different Perspective

It's become somewhat fashionable to criticize the DoD for their lack of innovation. However, I have been arguing for some time that the DoD is, in fact, highly innovative. There are numerous examples to support this, such as the Nebula project, which has delivered significant value on a relatively modest budget. So, when “critiquing” the DoD, let's be measured. It's important to discuss both the problems and the solutions. As the saying goes, “A fool can ask a question that it will take a wise man a lifetime to answer.” Identifying problems is easy; finding solutions is much harder.

Constructive criticism is, of course, healthy. We all know that a well-structured problem is key to finding a solution. While there are certainly frustrations within the DoD ecosystem, it's essential to recognize that when it matters, the DoD delivers. To claim that the DoD is failing at innovation is not only unfair but also disconnected from reality. Innovation is challenging, regardless of the organization.

Understanding Innovation

Steve Blank, a Stanford University Professor,  co-founder of eight Silicon Valley startups,  and an innovation thought leader, categorizes innovation into three buckets.:

1. Business Model Innovation: This involves finding new ways to create and capture value using existing assets or capabilities, like when Pepsi expanded from soda to snack foods.
2. New Product Innovation: This type of innovation happens within existing units or divisions, creating new products beyond mere line extensions.
3. Disruptive Innovation: These are groundbreaking ideas that don't fit within existing business units and often require a separate corporate function.

The Challenge of Business Model Innovation

The DoD faces structural constraints, particularly with contracting laws that make business model innovation difficult. Many DoD employees are legally restricted in their actions, often for good reasons. Instead of merely complaining, I encourage you to take action—call your congressman, vote, and participate in the process.

Where the DOD Excels 

The DoD excels in both new product innovation (category 2), and delivering advanced, highly effective technologies -Star Trek-grade technology. While they might cost more than expected, they perform exceptionally when needed. US adversaries can certainly attest to the impact of the DOD innovation. These systems are exquisitely designed and highly effective and work when it matters.

There are several disruptive innovation initiatives within the DoD, SpaceWERX, AFWERX, and the DIU, that are making significant strides. Their efforts are rapidly iterating and adding immense value. We should be mindful that these programs are essentially startups themselves, and their trajectory shows that good things are ahead. Over the next 18 months, a lot of amazing technology will mature from these ecosystems, whether or not they become widely known to the general public without security clearances.

A Firsthand Perspective

As someone who works directly with the DoD, I can attest to the high level of engagement and commitment from our DoD partners. We've collaborated with the Air Force Nuclear Weapons Center, USSF, USAF PlatformOne, and others. In every instance, the DoD has matched or exceeded the level of engagement we typically experience with our industry partners. For these professionals, it's not just a job - they are on a mission, and it shows.

The DoD is a massive organization, and naturally, there is a relationship between the size of an organization and its agility. The Department of Defense (DoD) is a major investor in technology and often collaborates with leading companies. If they’ve decided not to partner with you, it’s worth considering their feedback. It's more likely that there's an issue with your offering rather than a negative perception of your company within the DoD.

Innovation is Hard, Everywhere

Even in the venture capital world, innovation is a significant challenge. The success rate is low, and many efforts fail. The DoD is no exception to the challenges of innovation. Even if you believe the DoD is struggling with innovation, publicly disparaging our national security efforts does not serve our national interest. It can demoralize those working hard to keep us safe and may even embolden our adversaries.

Silicon Valley and National Security

In the San Francisco Bay Area, where I live, we face challenges, but there's no denying our innovative spirit. National security is a growing priority for many prominent venture capital firms, and Silicon Valley is making significant investments in this sector - even Y Combinator is looking to contribute. The skinny jeans entrepreneurs, which I said were coming two years ago, seem to be joining. Networks like Alumni Ventures, Git1K, Gaingels, and Mana Ventures are now prolific national security investors. There are also several national security non-profits organically forming to enable national security innovation, like the Spades Institute, and DEF - more such organizations will emerge and grow to fuel DOD innovation. The senior DoD stakeholders I've met are receptive to new ideas, dedicated to innovation, and actively engaged. They are consistent in their actions, and their words align with their deeds.

Unfortunately, some of the harshest criticism of the DoD comes from those who aren't innovating themselves. These "rent seekers" economically benefit from criticizing the DoD. They claim the DoD can't innovate but position themselves as the solution. As David Beckham wisely once said, "Be honest!" Thank you.

Moving Forward

Steve Blank suggests that innovation, especially in startups, is about searching for a viable business model rather than executing a known one. For large organizations, true innovation requires an "ambidextrous organization"—one that can both execute existing business models and explore new ones. The DoD is already on this path with initiatives like SpaceWERX, AFWERX, and DIU. These programs are successfully partnering with industry, and there are already several success stories, with more to come. Some of their successes are not public because of security clearance constraints.

So, before you type up the next critical LinkedIn post, consider the impact on morale. We have the best military forces in the world, and we are privileged to be defended by them. At RapidFort, we strongly discourage our employees from speaking negatively about our partners, especially when they share sensitive information with us. It’s unprofessional and disrespectful to criticize those who are working diligently to protect our security, particularly in today’s complex geopolitical landscape. Remember, careless words can have serious consequences.

If you're attending the AFA conference, I'd be happy to discuss both problems and solutions. If you have a pedigreed technology solution, but it has to be value-added, I'd be delighted to facilitate introductions. We're all working together towards a common goal. However, it's important to remember that the DoD already has access to cutting-edge technology, so the standard for innovation is exceptionally high. Mere promises won't suffice; genuine innovation is what matters.  I speak from personal experience.

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