Operationally Responsive Space: A New Defense Business Model

Abstract

Space capabilities are a prominent element within the collection of global advantages the United States enjoys today. Space is one of the commons, along with the sea and cyberspace, that constitute the triad of capabilities on which America's global power rests. But several ominous trends now compel a reassessment of the current business model for meeting the nation's needs for military space capabilities. While the existing model has served the nation well, a new business model is at hand and can now be readily grasped to propel us into the future. Trends compelling this reassessment include: falling barriers to competitive entry into the commons of space, an increasing dependency on space capabilities, and emerging vulnerabilities in current space systems. In addition, there are systemic issues emerging across the spectrum that require a reexamination of how the nation acquires these precious assets. Such issues include: the fact that important space programs are in trouble for reasons either financial or technical; the growing need to recapitalize space capabilities; decreasing industrial base viability; reduced science and technology funding; and the need to develop space professionals. The current business model for space is unable to support, by itself, the combined weight of these accumulating pressures. The context of space technology is also undergoing rapid change. While the cost to place a kilogram of capability on orbit remains expensive, the capability resident in every kilogram is soaring, given the unrelenting increase in information technology. This makes a new, complementary business model for space feasible. The door for much smaller satellites, weighing less than 1,000 kilograms, and even micro and nano-satellites is opening, allowing the Department of Defense to redefine cost and mission criticality curves, increase transaction and learning rates, and to favorably change the risk calculus. The old business model will not work in the development of these smaller satellites and cannot be modified to acquire the new capabilities. The new business model is derived from new technology, lower costs, and a new set of output-oriented metrics. As we move toward the age of the small, the fast, and the many, it's time to start applying these precepts to space. There also is an operational imperative underlying the rapid adoption of this complementary and broader business model. Done correctly, this new model, with its flexibility and responsiveness, will ensure America's space superiority well into the future. Second, the model can serve as a test bed for the larger national military space program by allowing the Defense Department to leverage targeted science and technology investments while enhancing the professional development of military and industry space talent. So, national security space capabilities can grow out of this new model, but without the current problems and risks. Finally, by adopting this co-evolutionary process of pairing concepts and technologies, change can be influenced immediately. This model has at its core a generational development and acquisition strategy. In short, it is within our grasp to create new options in space, a process which itself can be a very powerful competitive advantage. Operationally Responsive Space (ORS) is the term used to describe this new, complementary business model. Rather than teasing operational capabilities from systems designed and paced for larger national security capabilities, the full spectrum of critical capabilities are created from the bottom up. So, the new model is about defining a joint military demand function and providing joint military capabilities for operational- and tactical-level commanders. Finally, the model emphasizes short cycle times and accelerated learning, providing high-speed iterative advancement in operational capabilities. This new model is closely aligned with Harvard Business School Professor Clayton Christensen's Disruptive Innovation Model. …