WEBVTT

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Yeah coming we got a little bitof mo promote today from a role

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when a foul which wasgood ya and so uh.

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Fully a everybody is primed fora good conversation here.

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And we're gonna talk about to innovation.

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Um what how all.

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The Pentagon and the departmentof defense kit incentive buys.

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It sarah.

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No it if it can and said devise that.

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Aw man.

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We were grape handle here. Our allies.You know and most of the

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the panel this year we to back to avery quick for a title introduction

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that when adjusts to dive right intoit because you have therefore

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bat was in no the lovely bulk on.

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We had the time and john greenertthe chief of naval operations.

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We have a a former us de prettyass appear defends build Lin.

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We have when shot. Well the presidentof space acts pot and then

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we hal boyle from harris corporationa mr. Wlliam brown and then

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a that the pot and last but not leasta of mister goodman a from Accenture.

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Uh so.

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I'm gonna start bad asking eachpaying a member of question um

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and then we're gonna or a.

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After that through which aroundwe will now all the other panel

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members to sort of jumpy in inin fight with a each other may

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we get a going like a a episodeof the McLaughlin group back

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in the day or something like that.

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And at the debt to iran is startwith you and the greenert um.

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We did that a ballon to just laylee. You know met you are doing

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in the navy to foster innovationand what the ops of goals from

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your seat that use 72 to innovation.Okay so I guess I would

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duck right at the end of kind ofthree categories sell wants.

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Someone is a use a think innovationyou think. Okay what you

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do in science and technology whata what they're reaching for

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a out so I think there's probablythree main areas there were

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doing a and ever dark eyed aboutoffice of naval research.

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I provide fans a general me forwhat we have out there.

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What what are threats what our Endeavour's.What do we need to

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be a better navy and make a lotof do things like I we talked

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about today a braille acer gonefor good it out to see a move

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long was a real gonna an alternativeto cruise missile and the

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host of things. So you gotta getto the research people are gonna

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be connected to them a you can'tin my view just not have a bunch

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of labcoats out there to wondersthings and see what falls out.

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There's basic researches good thatthe got understand that that's

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kinda want to get a cordon it withwhat the office of sectarian

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differences do one. We have notthis early chaos pitcher out

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of sync and you they've got understandwhat you wanna do so that

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when you wanna bring some them forwork and you wanna go outside.

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You know the fennel acquisition regulationissue will processing

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get outta vanished in your support.So we have a a strategic

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concepts off just under a doctorwill work where does that use

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them that that's kinda second it's agood to go work the internationally

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with this she got a top to theindustry partners. I mean him

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and the world I live in we havesee power because we have an

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industrial base that is awesomeand a princess good thing said

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you gotta communicate with them andand get their get their import

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early when you have an endeavora concept of my work with new

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ship anywhere planner sell to getyour people fall. So we have

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a passing I call of the sea unknownsrapid innovation cells like

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Couric a junior officers five yearsin the navy six years in

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three to five years and eightin some lustig ice.

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Uh I give them five million dollarsto put together projects

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a and they do 60 year the startedthis in 20 12 and actually

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it's working a pretty well uh wehave a three D printing cam

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came to the fleet a and we aremaking tools and things in and

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uses growing out by some kid a with10 of the supply corps that

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brought to us and we know the conceptthis been out there but

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how do you bring it on board ischiaah put the equipment due

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to work watch rock and roll inand by the way if you try that

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and you don't stabilize at thesite taking that stream gone.

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You know in shit and all of theplace. You don't get you don't

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do we to think you have asked wantto have a kid that's about

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a guy uh uh cyber warrior who cameand developed a test for under

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million dollar soup. Absolutelydetermined. The vulnerability

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of our ships that we can man aboutwhat is the cyber fall ability

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of our ships um and it was is anastounding thing that we're

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using for standard it goes on butany we gotta get the people

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of all uh uh for sure and then yougotta look within a it's be

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on science and technology and it'salso people but what did you

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have that you can do more with moreinnovation form more innovative

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with too. Well so uh for us. We have aship called a mobile landed platform.

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We sat down and said about we needmore expeditionary uh capability.

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But we don't wanna spend billionsof dollars are great called

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it with a one really I need justa means the moves things from

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ship fish or so ago ownership dollarMichoacan alaska tanker

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took the tank process out and putit about Dallas system in there

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and we have what's called the mobilewinnie platform the cost

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500 million dollars a so four anda half billion that we have

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a join high speed vessel that we'repretty modular process suzanne

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take of the world combat ship whichis a really kind of an established

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modular design and find new payloadstruggle when there are to

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talk to about putting the laserprocess a laser gone on board.

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So it's looking at what you haveand see which can do that what

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what kinda we do better. What canalways de do better for us.

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I think it's communications andbe willing to take more risk

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and allow us to when I called thenavy go get things wet sooner

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and see how lego retire there ofthe risk as much as feasible

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or say this isn't ready yet andput it aside. So we don't spend

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millions of maybe billions on aprogramme this is never gonna

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come to fruition. So let me up tothat off that go to a secretary

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out when you win a battle.

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Uh. Department of defense say is.

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Embrace some of technology a barrelit's a relationship with

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technology companies um.

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What are the roadblocks here is usethe them for in san devising

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innovation what.

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He is the department of defense doingyou know what the cno just

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mentioned taking rests and notwhat what can we do more work

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and the defense a farm and do more.

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Well I think it's the One of thechallenges we face use the more

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and more of that you have a showand more more the the technology

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that we're looking for a in ourmilitary use coming the source

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of it is is outside the defense the harboroutside the defense industry.

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So we're as you know in thecold war II. The defense.

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Complex was really a net exporterof technology you know you

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that GPS the origins of the internetitself even came from us

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and duty in researchprojects and it's a.

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We're being developed inside theenterprise and then and then

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being pushed out.

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One more fun the model is where worse whenyou look good in attended future.

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Technologies nanotechnology threeD printing to call out the

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source of the those that innovationis commercial.

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And so what you need to do is youneed to bring those technologies

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inside the enterprise operationaleyes them for a from military

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for operational. Purposesthat means we need to be.

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In the base of companies and yeah andthat we yet that technology fronds.

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So we need to make it easier todo business with that apartment

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of that I wouldn't say it's gotharder over the past few years.

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It's it's probably about the sameof anything in that the them

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a little bit better. But the importancehas brought importance

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appalling a commercial companiesthat began has been around so

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the barriers that exist had becomemore daunting because of the

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importance to do to you ofgetting the most for us.

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I'm and that is the data mr. Goodmanhere a going out of order a.

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Can you talk to bear I'm in therequirements prices the wait

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a that a.

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A department of defense of laysdown requirements for a.

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So for new acquisitions and isused to be a does an incentive

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to to innovation autumn.

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I want to talk a little bit aboutthat a little bit about that

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you do. How we do.

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Think the department eventscan vast pursue innovation.

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We're good.

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So it Accenture is primarily a commercialcompany we built our

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business within the departmentof fans bringing the solutions

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that of work for commercial clientsand adapting them to meet

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the particular needsthe defense market.

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The him. The way in which we engagewith our commercial clients.

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Obviously fundamentally differentthan the requirements process

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and the art P process within thewithin the department of fenced.

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But I'd say and what alsowas very different.

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And it's I think it's the key obstacleof for that apart in terms

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of driving innovation writing more innovationand was acquisition process.

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News. What they ask for.

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How they asked for it and havea trainer people the by.

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To me that it is give thecommercial example.

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And then draw the analogy the departmentof compartment fans

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who are trying to think of exampleswith an apartment is doing

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so a lot of these things uh.

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A and I think this is this is andwill will write crystallizes.

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Sell. One of our commercialplants is disney.

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In a few years ago.

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Does he was trying to figure out how theycould grow their parks business.

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And they're trying to figure outhow they can do it differently

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because the the Wayne their traditionalway growing their parts

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business was buying.

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A spending a lot of money to pay outon of apart build more ride cetera.

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And the realize that this was thefirst generation of of clients

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are pursuit of of customers they hadwho grew up in a connected world.

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So what they decided is ratherthan tried to change.

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The structure the park there's changethe platform. If you will

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in defense contracts theywanted to create.

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To really connected experienceand out of that realization is

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what came the innovation becausethe changed the requirement

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from building apart to.

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Establish an objective.

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Which was to create an integrated connectedexperience and this solution.

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Was to develop my magic lesson anda romantic thing and he could

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go online completely playing youritinerary you'd be sent.

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Magic band.

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Had ey a unique identify ruin.Our fight the chip that would

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connect in your cell phone. Sothat from the time you arrived

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in the parking didn't have to checkin your own tell this like

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your bandits and you automaticallyto your room.

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With you when the the park you canwalking any does the restaurant

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at this point.

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And as cure poaching. It knows. Whatmeals mm ordered them you'll

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be waiting for you when you getthere Cinderella can bring your

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daughter by name.

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I'm any of somewhere along the lineyou don't have a good experience

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Cinderella to note that banningher ipad and they can send you

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something on your cell phonefrying make that experience.

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To better the key thing here isthe innovation for disney was

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an inventing a new technology.

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It was in abating by taking existingtechnologies which were.

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Mobile technology.

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Our fight he would to beenaround for decades.

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Along with a lot of systemsintegration in the back.

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In creating this new customer experiencewhich by the way also

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enabled a lot of through put enablethem to drive additional

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revenue and a park so whatare the key lessons.

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For the parma defense.

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And one of the things seem to questionthe need to do differently.

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Of the first.

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He is to think about the key requirementmedici think about three

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point as an objective rather thanas a state of work to rather

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than defining the requirements thanthe TV. Exactly. What's required.

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They asked the defining. What isthe business problem always

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the mission problem and specificallyit asking for a unique solutions

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allowing for variation in terms.

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Of had to get that.

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And then second I would say.

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He is um in.

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A thinking about of the solutionas a change in the concept of

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operations as opposed to this isreally changing the technology.

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The third part of that which youget into later is you what needs

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to change within the acquisitionworkforce. If I can not talk

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about that this morning. So thatyou have people who are trained

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and they'll had abide. It'swhen when we serve aid.

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The next to raise the acquisitionworkforce say the three things

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that they really are missing is.

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Understanding of business.

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Understanding of.

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I'm negotiating skills of understandingof risk management call

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bring you know she things that Ithink from from my perspective

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our fundamental that the buyerin eastenders seen if they're

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gonna get innovation from their supporters.

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We did take that little band andstick it on a called in said

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and first you go to the middleeast and then you gotta go the

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black sea and that will sing all theway over the cell to a symbol of.

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Them so there are some problemsand try to and so can forget

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about that.

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Uh but is a good example a lookadmitted that I wanna ask you

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to ben harris corporation on you knowI'm like a defense contractors

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being pushed to do more in researchand development um with your

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radios there been some examplesthat uh out where the You know

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you guys have come up with some innovativeideas of the Pentagon

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is really sees the pond.There's also been some.

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On a programme. So uh in the worldof radios like a that are now.

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Well known in defense sorting circlesas a way not to buy a a

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a war produce new technologyfor a.

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Why. Hear from you a little bitabout your real world examples

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of where it's worked and weren'thasn't worked a in terms of

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the Pentagon incentivise in the cominginnovation. We're talking

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about today for for so harris isa bit more than just a radio

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company we we have a lot of technologiesthat span told us gardening

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nine years gardening commercial applicationsthe happening known

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for tactical radio. Does is wehave a market leading position

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in the us around the world in tacticalradios typeface. I said

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in the Wall Street panel a few hoursago. Maybe some of the other

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folks that is well in one of thingsthat was in the panel was

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about investment chasing returnsin reality any CEO would have

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is an obligation look at what supportfor real thing was your

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to win best in to maximize the returnfor their owners can that's

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something that we face all the timewe make hard decisions about this.

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No so that requires three thingsone is a clear process and john

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spilled about that appalled by thebid talk about requirements

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clear on the baby was requirementslevel playing field.

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And that the demand is there iswell so there there's a purpose

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on the back into that the uh hadany one of those to read the

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process really falls apart and youcan justify the investment.

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So was attacked the radio supplierwe've seen how those pieces

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work in perhaps maybe not work asthe war is in a racket if pianist

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a more you're going for had esteemedor urgent needs for to require

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and it's that harris was able to leveragesome commercial technologies

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and bring solutions tothe deal would be.

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Very very quickly within a yearor two fielding a new bandeau

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widely in radar frock and three radiowhich will over. The course

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of a couple of years felt closea 12000 radios field. It in the

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beauty in the key thing about thatthe process was very very

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clear the requirements were very clerichas was in merger requirement

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and that the main was it was firsthappened at the back and if

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it and that works very very wellhe you know it in the reality

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in that business yield 90% of whatwe played into our tactical

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radios 90% comes from the commercialindustry come as commercial

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supply dates to different encryptionchip is a different GPS

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chip but most that different shellwould be a special olive drab

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color on it for most of it is comingfrom the commercial sector.

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Do what we do was we package ina way that sells a back in the

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deal viewed way that driesit makes it successful.

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But the technology that dairiesbullying very very quickly.

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The contrast it with a multi serviceprocurement system for radio

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system that for this fact was writtenback in 2003 2000 four.

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And really hasn't today even beenfeel that a decade later you

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can just imagine what's happenedto the supply base all that

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pretty time for those components thatwere originally contemplated

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for that radio 10 years ago eightyears ago are that you'd is

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still viable to they've even readytoday are using the latest

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in danger like products and technologymaternal signs to take

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away out of a product it's almosta possible that to happen.

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But the 2000 seven.

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The first iphone was out 2000 seven.

17:34.110 --> 17:36.870
Six versions since than600 million units.

17:37.440 --> 17:40.370
And is separate programis still going forward.

17:41.090 --> 17:43.260
Many acquired these notreally well fielded.

17:43.790 --> 17:47.540
In fact the technology has overtakenthe specification that was

17:47.540 --> 17:48.560
written a decade ago.

17:49.290 --> 17:52.450
So the process to be clear therick farmers have to be clear

17:52.820 --> 17:57.260
to me and asked me to clear but wealso have to adapt the acquisition

17:57.260 --> 18:02.190
process to the technology keeps itis revolutionary groundbreaking

18:02.340 --> 18:06.450
steve your technology it's a wholedifferent process than one

18:06.450 --> 18:09.540
you might be more wind if it's atechnology that exists it you

18:09.540 --> 18:13.340
just refining it over time in inagile spiral type of fashion

18:13.650 --> 18:16.660
and that's a we do is we do veryvery well in our commercial

18:16.660 --> 18:17.730
model attack the radio.

18:19.340 --> 18:25.220
Which all all space acts is a companythat to a patterns of brain

18:25.220 --> 18:29.430
and that is very uh uh known forinnovation you would have been

18:29.430 --> 18:35.220
not nestling your way into a a theair force satellite uh business

18:35.220 --> 18:37.340
and a high-profile way poem.

18:38.360 --> 18:42.900
And from your experience um do youthink that that apart a defense

18:42.930 --> 18:46.230
is serious about promoting innovation.

18:47.910 --> 18:51.280
Well I think the department whatex-inmate me start with with

18:51.280 --> 18:55.450
a slightly different to the a givenaway um. I wanna talk about

18:55.790 --> 18:59.790
why we have taken it's a great innovationembracing innovation

18:59.790 --> 19:01.520
is is not really twice.

19:02.090 --> 19:05.700
Um the chinese are innovating theyfield systems faster less

19:05.700 --> 19:09.180
expensive lead and we do and ifyou roll that through more slot

19:09.400 --> 19:14.200
up they will meet they will be aheadof us a if they're not already

19:14.280 --> 19:17.870
in many areas. So like I think innovationis is absolutely key

19:18.100 --> 19:20.710
innovation by definition. It meanssomeone's trying to improve

19:20.710 --> 19:24.110
the product or make it less expensivemake it more reliable.

19:24.140 --> 19:27.440
So inundating is improving qualityof service and and making

19:27.440 --> 19:30.600
things less expensive um and theother thing that I wanna talk

19:30.600 --> 19:34.830
about from an innovation perspectiveis Yum smart engineers.

19:35.130 --> 19:38.700
I wanna work for innovative companiesup they don't wanna work

19:38.790 --> 19:41.630
on a project that's gonna takein 20 years to feel they wanna

19:41.630 --> 19:46.410
see the fruits and the results oftheir labor I'm at some panelist

19:46.410 --> 19:50.080
earlier today talked about that they'relosing 30% of their workforce

19:50.390 --> 19:53.970
on in the next few years on theever day to my into there's 27

19:53.970 --> 19:58.010
years old I don't expect to losethem for 30 years. So I'm I'm

19:58.010 --> 20:01.620
so innovation is key it's it'sfast it's not a question it's

20:01.800 --> 20:03.400
it's absolutely required.

20:03.990 --> 20:08.490
I'm now back to the original partyyour question up I do believe

20:08.520 --> 20:13.870
that the the air force is is firmlyset on a not to allow new

20:13.870 --> 20:17.550
entrants into their launch businessuh you hear fry candle setting

20:17.550 --> 20:21.340
up on the stage this morning. He'sclearly invested in that I'm

20:21.340 --> 20:24.890
more working incredibly closely withgeneral grieve said to essence

20:24.890 --> 20:29.160
see um. He's got a team of a hundredor so folks helping to start

20:29.160 --> 20:31.970
a five itself an unwanted calledto make sure we're prepared

20:31.970 --> 20:36.510
for national security missions um.It's like think the The problem

20:36.510 --> 20:40.540
or the issue is somewhere betweenthose those two areas somewhere

20:40.540 --> 20:45.940
between sam grave um and uh andthe secretary candle um.

20:45.940 --> 20:48.680
But I do believe the are forcesinvested in this stuff.

20:48.980 --> 20:51.830
It's a very tough business. There'stons of hurdles to get through

20:52.250 --> 20:56.180
I'm in order to do it like to youknow we're plugging along and

20:56.180 --> 20:58.680
a general the steam is fightingalong with us.

21:00.160 --> 21:04.590
Um surgery linda. When you startwith this tell much uh.

21:05.350 --> 21:10.920
Can the department of fans dueto changes the way either a a

21:10.980 --> 21:14.730
do business on their own to fosterinnovation or how much do

21:14.760 --> 21:15.330
you need.

21:16.010 --> 21:21.910
Uh. Action from congress to changethe acquisition for other

21:21.910 --> 21:24.160
procurement reforms were what some.

21:25.290 --> 21:28.230
What's the were old congress versusthe wallet about where the

21:28.230 --> 21:31.720
fans in the in this quarter tryto be more innovative fear.

21:32.750 --> 21:36.260
The news visit seemed that's notan either-or question that it's

21:36.350 --> 21:37.110
it's both.

21:38.150 --> 21:44.090
The department. Has a way to bida um freedom to implement within

21:44.090 --> 21:48.090
even the existing laws and I thinkthe and and frank talk about it.

21:48.680 --> 21:51.620
A bit when he was here I like ayou the Doc even more about it

21:51.620 --> 21:55.390
when he met a with some industry leadersa a couple saturdays ago.

21:55.890 --> 22:01.710
You part of it. He is getting that aa a better it'll urge organization.

22:02.250 --> 22:06.820
To itself innovate to use the flexibilityit actually had to

22:06.820 --> 22:10.290
take the direct shoe did take directionfrom the top and push

22:10.290 --> 22:15.460
it all the way through and changebusiness practices change the

22:15.460 --> 22:19.760
way the process works. It's notnecessarily income bird by a

22:19.800 --> 22:23.970
legislation its income are bypassedpractice people are eligible

22:23.970 --> 22:26.680
playbook there used to runningthe same playbook that they're

22:26.710 --> 22:27.710
they're comfortable with that.

22:28.230 --> 22:32.570
Uh but things need to change in itit it takes a lot to get people

22:32.600 --> 22:37.940
fateh their comfort zone to learnnew things to a assume I uh

22:37.940 --> 22:41.850
the process in ways that are gonnamake it somewhat less clear

22:41.850 --> 22:45.970
to them at least initially set thatapart. I think of that flexibility

22:46.420 --> 22:50.260
by and if you wanna fundamentallychanged the system. You do

22:50.260 --> 22:53.690
have to go to congress and uh andI think Mack torn variants

22:53.690 --> 22:54.410
of the others.

22:55.100 --> 22:59.110
I had a in bed donna processto try and uh do that.

22:59.720 --> 23:03.420
I I think the key the air and Ithink actually a carpenter on

23:03.420 --> 23:08.870
very set a it in his pale in the interestpromise years do no harm.

23:09.950 --> 23:14.270
Yeah. You go down a path for commercethat is layers that requirement

23:14.270 --> 23:17.800
sad pasta sees. It is almostsurely you to get worse.

23:18.520 --> 23:21.530
Uh oh we have too many layers winterwe reforms with too many

23:21.530 --> 23:25.560
process the is the key is the thingthat out without losing that

23:25.560 --> 23:28.560
the fundamental purpose of thatif you wanna protect taxpayer

23:28.560 --> 23:31.310
money wanted the best product thatthe best price. That's what

23:31.500 --> 23:35.260
most prices these are intendedto do with the sense. We what

23:35.260 --> 23:37.250
we can not to a lemonade.

23:38.030 --> 23:41.330
Uh season we had no one's thatit gets inquest that time and

23:41.330 --> 23:45.490
I think it if. There is a embarkson an effort that that was

23:45.490 --> 23:48.810
indicated here where they're tryingto be lighter that right to.

23:49.400 --> 23:50.490
A a movie.

23:51.330 --> 23:54.280
This season you haven't workedare past their time out.

23:54.810 --> 23:57.790
I think I can risk and make aa substantial contribution.

23:57.790 --> 24:01.440
Here's. What you like but I wouldsay the I think the you'd better

24:01.440 --> 24:05.520
buying power trip but I was in a rightdirection and I seen acquisition

24:05.520 --> 24:09.080
will form is these essential. Iknow Qantas mentor burying.

24:09.080 --> 24:12.260
Others are working on a Sin driveyou will see a lot more but

24:12.260 --> 24:15.160
it's hard to legislate culture changebecause they think what's

24:15.160 --> 24:18.350
happening you you've got a verybig layer of people who've been

24:18.350 --> 24:21.600
around in the department for verylong time as you said head

24:21.600 --> 24:23.780
to the cost of a doingthis in a certain way.

24:24.320 --> 24:28.260
The legislation I think of put aframework around the types of

24:28.260 --> 24:32.310
changes we need to see the ideaof the day. It's about a whole

24:32.310 --> 24:36.250
true change in in government saidturnover every couple of years

24:36.250 --> 24:40.180
or or see the partly turnover ofa couple years. It's very hard

24:40.180 --> 24:44.140
to invade change would sometimestakes mortal years and I think

24:44.140 --> 24:46.670
that's one of the them the but that'sthe biggest challenge of

24:46.670 --> 24:50.820
my the facing the part in the missionit's to reform how acquisitions

24:50.820 --> 24:51.330
done today.

24:53.460 --> 24:57.660
On to what a little bit earlierabout timelines and how long

24:57.660 --> 25:02.020
it takes to the to buildthe and uh and to adopt.

25:02.540 --> 25:06.040
Technology dual technology buildweapons system and a greener

25:06.360 --> 25:11.010
these there'll always be in the futureto shrink pose time minds

25:11.010 --> 25:15.200
or is that just something that wehave to do to their would load

25:15.200 --> 25:16.620
weapon systems that that's.

25:17.160 --> 25:21.460
Something the industry is going up tojust deal with which are bottle.

25:22.100 --> 25:23.120
Well I think it up.

25:23.680 --> 25:27.220
As I was listening didn't hire meanybody saying wrong but when

25:27.220 --> 25:30.260
I re lists about billion yourrequirements is a sample.

25:30.260 --> 25:33.070
That's what I do I'm supposed tolay out the reform mentors.

25:33.070 --> 25:37.290
This says here's what you need to doto articulate your requirements

25:37.320 --> 25:40.410
will by that time you get throughall that the top it takes a

25:40.410 --> 25:44.740
lot of time it gets a lot of reviewI think it's fairly detail

25:44.770 --> 25:47.800
and your starting to create a mosaicof want this thing's gonna

25:47.800 --> 25:51.360
look like and you haven't even cansolve with industry yet and

25:51.360 --> 25:54.570
not just the defense in the shaveyour point build to until last

25:54.940 --> 26:00.230
so I I think we need to get like engineeringdesign modules concepts outs.

26:00.760 --> 26:04.010
And demonstrates and somewhereand we have to have a means to

26:04.010 --> 26:07.700
do that we we have a means if it'surgent we haven't means a

26:07.700 --> 26:11.660
few declare it to be urgently onall that and and we've got to

26:11.660 --> 26:15.760
bring it from that has was statedyoung engineers and in my case.

26:15.760 --> 26:18.460
Maybe junior officers whenever thesing and we can do this better

26:18.950 --> 26:22.710
with whatever what I have to getthat out and the internet into

26:22.710 --> 26:26.210
a three dimensional prototypeof some sort and show.

26:26.780 --> 26:31.270
We have done this periodically idea.This was a few small samples

26:31.270 --> 26:35.320
but I think if we have a clear pathto do that candles lane about

26:35.700 --> 26:39.380
a actually when the bill in the sectorthis that that the sector.

26:39.380 --> 26:43.250
He did asked carter did againstcodify was seen as a to slice

26:43.250 --> 26:47.470
of that sounds like players Khana fiat. So that we can uh you

26:47.470 --> 26:51.550
get those it and then have a kindof a understanding was converse

26:51.610 --> 26:55.260
allow us to from this thing hadn'tyet that died on have until

26:55.260 --> 26:58.340
the fall when documents that on thisthe we've got a sea of this

26:58.340 --> 27:02.690
will work and allow us to bringthe good ideas uh. If we work

27:02.930 --> 27:06.780
to define the rick farming and toomuch detail. I think we star

27:06.780 --> 27:10.970
shopping doors and whirl I liveand I got a a a ship builder

27:10.970 --> 27:14.030
trying to put together and inchingto go to a certain speed it's

27:14.030 --> 27:17.290
gonna cost me so much money andI haven't a clue what others

27:17.370 --> 27:20.880
when I'm actually stand the thisperson as opposed sent to go

27:20.880 --> 27:25.040
fast and a xinhua how fast enoughhere's the Neiman for for dollars

27:25.040 --> 27:26.070
and speed it centers.

27:26.750 --> 27:28.390
That's a good what it wea thing about that.

27:29.750 --> 27:32.110
You know one of the problems thatapartments had historically

27:32.110 --> 27:35.220
subdue requirements process of theacquisition prices were very

27:35.220 --> 27:38.370
separate stoke bites and we'reoften very sequential process

27:38.370 --> 27:41.040
season adding a lot of time alongwith a review sedan rolled.

27:41.040 --> 27:45.180
Reinvention. David may be used andparticularly good in the income

27:45.290 --> 27:50.090
a integrating requirements process withacquisition people with industry.

27:51.050 --> 27:54.010
So that by the time the requirementsare produced.

27:55.070 --> 27:56.590
It's something they canin fact the bill.

27:57.200 --> 27:59.690
And it's something you can we buildon a timeline that helps

27:59.690 --> 28:03.150
me commission need as opposed tohaving a figure that after the

28:03.150 --> 28:06.190
process and that that it's neara set of requirements.

28:06.760 --> 28:09.730
That may exceed current capabilities.But you know never known

28:09.730 --> 28:12.700
industry to walk away from opportunity.You know so you know

28:12.700 --> 28:16.630
people a full breasts will respondeven though there may be a

28:16.630 --> 28:19.750
high degree of technical breastand then that slows the program

28:19.750 --> 28:23.400
down you know later on you knowwhat would uh what am operated

28:23.430 --> 28:27.340
and the uh a needy acquisitionnew team of done.

28:28.010 --> 28:31.280
The is a is really to integrate thatmuch earlier in the process

28:31.470 --> 28:33.960
and I think that's gonna pay dividendsand really need to find

28:33.960 --> 28:37.230
a way of extending that acrossthe entire department.

28:38.570 --> 28:42.150
I like to the top a little bit abouta program called that commercial

28:42.150 --> 28:45.050
formal transportation servicesprogram was a very innovative

28:45.050 --> 28:49.010
program a lot of NASA. It's fundamentallywhat spurred the development

28:49.010 --> 28:52.010
of the sock an unwanted call andthe drying and castle. So was

28:52.010 --> 28:54.800
an innovative procurement processthat we're requirements that

28:54.800 --> 28:58.040
they were burberry performance spacerequirements and the only

28:58.040 --> 29:01.830
place for requirements were nottraded worry and safety to the

29:01.830 --> 29:06.120
international space station. So wewe received to that a contract

29:06.120 --> 29:10.050
with that agreement with NASA inlate 2000 and fix tidings flew

29:10.150 --> 29:13.720
about four years later successfully andthen we got to the international

29:13.720 --> 29:16.990
space station to see yearand a half after that so.

29:17.610 --> 29:21.910
We've got a break a steady a greatexample of how the industry

29:21.910 --> 29:25.650
government partnership can dealwith very from requirements he

29:25.650 --> 29:27.620
cannot hurt the spacestation you can.

29:28.220 --> 29:31.460
Harm the astronauts that are onboard you have to get this much

29:31.460 --> 29:35.360
capability of their but all thisstuff in between was traded

29:35.430 --> 29:38.740
and it made for an enormously successfulprogram both for NASA

29:39.110 --> 29:40.460
by as well as for taxpayer.

29:41.450 --> 29:44.760
His killing you with a little bitabout the need for the department

29:44.760 --> 29:46.050
of the vans to.

29:47.150 --> 29:51.730
Work with technology companies thatare non traditional defense

29:51.730 --> 29:56.860
companies aim to serve wide anduh to reach out to a broader

29:56.860 --> 30:00.450
industrial base in some ways umand bring in that sort of know

30:00.450 --> 30:05.470
how to farmer the fans were theWhat are the challenges Jews

30:05.470 --> 30:11.510
saint for a deal de to work withmore to bring in the talent

30:11.510 --> 30:15.250
about a I'll gregg oehler acup a company like that.

30:16.550 --> 30:20.790
And that is the structural challengesare to one-word well into

30:20.790 --> 30:23.150
what they're doing morenot that big market.

30:23.940 --> 30:26.470
Uh and to we're not a very good cast.

30:27.140 --> 30:30.750
Uh we're glad you are not easy todeal with it. So easy you can

30:30.750 --> 30:33.360
buy into with it makesit very tough to get.

30:33.890 --> 30:38.510
A global or Microsoft or the two companiesthat have gone there are.

30:39.120 --> 30:43.290
There in the merger more lucrativemarkets. That's worrying it

30:43.290 --> 30:46.860
is and has been said uni chasingreturns. They've got better

30:46.860 --> 30:49.150
returns about opportunitiesin other places.

30:49.680 --> 30:53.000
We need this for about an increasethe size of a market we can

30:53.000 --> 30:58.000
make a ourselves easier to dealwith we can a reduce the the

30:58.000 --> 31:02.260
barriers we can reduce the constraintsand an intellectual property

31:02.260 --> 31:04.960
envy that to eliminate them.But we can get more balance.

31:05.520 --> 31:09.320
We can a thief who don't you shouldn'tneed the higher leader

31:09.420 --> 31:13.830
of plastic palms lawyers to be ableto do to part business with

31:13.830 --> 31:16.740
the department of defense we can'twe can reduce that burden.

31:16.740 --> 31:18.000
I think if we do that.

31:18.510 --> 31:22.180
I think the of the advantages of the departmentwill start become throwing.

31:22.810 --> 31:26.550
The is wu department. It's still workingwith cutting edge technology.

31:26.650 --> 31:31.010
It is at the at the forefront thatuh uh the innovation and I

31:31.010 --> 31:34.620
think companies a technology companywill want to do business

31:34.620 --> 31:38.670
with the department if they findit easier to do a to do so.

31:39.340 --> 31:40.250
Fish all what are you.

31:40.940 --> 31:45.160
What are your thoughts on that uhin terms of power dear de can.

31:45.780 --> 31:47.430
Uh the easier to work with.

31:49.080 --> 31:52.250
The first probably don't wanna companywith the anti for it to

31:52.250 --> 31:56.140
start with um. I think open marketsare critically important.

31:56.560 --> 31:59.880
There are reducing thevery year century um.

32:00.770 --> 32:05.020
Important as well um we found thatset although you know we've

32:05.060 --> 32:08.420
we've been able to which even getthrough every hurdle um that

32:08.420 --> 32:11.880
we've encountered so far I'm in doingbusiness with the government

32:11.880 --> 32:15.050
you know when we first startedout we heard that range safety

32:15.050 --> 32:15.560
was this.

32:16.160 --> 32:19.410
And possibly difficult organizationto work through and work

32:19.410 --> 32:21.630
with and yet you know we it a thoughtthem online side of the

32:21.630 --> 32:24.510
and a bird the put a stop and mymom side of the 40 fifth we

32:24.510 --> 32:28.530
have a lot side of it and that'squiet planets will um. So would

32:29.030 --> 32:31.960
you be really it's it it's a matterof making sure that the hurdles

32:31.960 --> 32:37.810
are not unreasonable um. I think itis important to have a checkpoints

32:37.840 --> 32:41.290
along the way and and a half ofthat the government has to to

32:41.290 --> 32:44.490
purchase a new system you wanna makesure that to the organization

32:44.490 --> 32:46.900
can do what they need to do um.

32:48.020 --> 32:51.450
But it's a but yeah for sure thatthe first and foremost for

32:51.450 --> 32:53.840
me is that as that's really I donot want to compete with my

32:53.840 --> 32:56.150
government who plays like it hadon top of that because of it

32:56.150 --> 32:57.950
is beyond is three climbers also.

32:58.520 --> 33:01.780
Um smaller companies eating tobe more in the high tech space

33:01.780 --> 33:02.850
and I think the more.

33:03.500 --> 33:07.400
Did the department drive open architecture'sP and commoner common

33:07.400 --> 33:11.770
interface is still that componentsover time can be innovator

33:11.770 --> 33:15.990
rapidly in and be given the contentof the a multi decade platform.

33:15.990 --> 33:19.580
Sleepy innovate the components veryquickly. The plug-in playing

33:19.800 --> 33:23.470
think that's gonna be a a big driverfor the smaller players

33:23.600 --> 33:25.950
that can play into morefor the deal gave.

33:26.490 --> 33:32.690
Me designing platforms in the platformsthat deo de fields are

33:32.690 --> 33:36.020
things that last four decadeor exotic few low cat.

33:36.540 --> 33:41.460
Uh. You know the numbers are unableof vessels they they've the

33:41.490 --> 33:42.300
over time.

33:42.830 --> 33:46.850
Um and they are quite differentweapons systems of the end of

33:46.850 --> 33:49.420
their lives and they were at thebeginning in terms of how they

33:49.420 --> 33:51.370
use their capabilities expand.

33:52.380 --> 33:54.190
It almost seems and sometimes that.

33:54.800 --> 33:59.120
Just happen stance is there morethat the Pentagon can do to

33:59.120 --> 34:03.560
does so it's easier to to designa platform that one can.

34:04.160 --> 34:08.540
Innovate upon and so we the isdesigned to be adaptable over

34:08.540 --> 34:12.920
its wife's a span of a greener topI think it's a it's critical

34:12.920 --> 34:16.150
of survival out and when a Feldmantoday an air use the term

34:16.420 --> 34:19.890
payload some platforms and to meit's all about a loans much

34:19.890 --> 34:23.610
close about platforms. So when Iturned to the shipping industry

34:23.640 --> 34:26.760
a and talk about the neck ship.I gotta think module air-date.

34:27.080 --> 34:31.740
I can have that thing a wire itopen architecture as was it was

34:31.740 --> 34:36.150
mentioned and I I have to be readyto compromise in every guard.

34:36.150 --> 34:40.880
So I gotta have power cooling volumeuh. You can't run away from

34:40.880 --> 34:41.670
uh you know.

34:42.230 --> 34:47.120
Dozens of missiles. So stevie has tobe last persistence is important

34:47.490 --> 34:51.310
and then turned it industry andsay. Okay I made the following

34:51.530 --> 34:54.750
I need to build the fall enough factsa few. Well I need sensors

34:54.750 --> 34:58.170
that do this and turn to lemonallow them to bring than men.

34:58.490 --> 35:02.090
But just give them this facts heand and and in will be if you

35:02.090 --> 35:06.610
will populated matt ship with a souh again it outlined scissors

35:06.650 --> 35:08.430
mention that to one of so uh.

35:08.960 --> 35:12.500
He would command of the enterprise.She came in a 19 62 cuban

35:12.500 --> 35:14.410
missile crisis was her first mission.

35:14.920 --> 35:19.280
A vacuum tubes and all that stuffright a who and a whole gaggle

35:19.280 --> 35:23.280
of aircraft 20 12 was her lastmission so should super worn.

35:23.280 --> 35:27.100
It's you know she had microchipsblah-blah-blah and she was a

35:27.130 --> 35:31.150
a out to an operation to are freeand so that that's a carrier

35:31.150 --> 35:33.830
but you've we have to do that withalesha for two destroyers.

35:33.830 --> 35:37.730
We cannot build these integrated thingsthat when you wanna upgrade.

35:37.730 --> 35:41.430
You have to put them in a dry dockfor 18 months and a ripped

35:41.430 --> 35:44.430
out all the cave winning airy hanga you have to be a little

35:44.600 --> 35:47.530
clunky and and figure out ofdo that it's modular to me.

35:47.530 --> 35:50.040
It's survival in the futureof the industry.

35:51.190 --> 35:55.640
He's a good than you talk a littlebit about a week interaction

35:55.640 --> 35:59.720
between a innovation in and thenship no wonder. If you could

36:00.150 --> 36:03.070
talk a little bit about howone drives the other.

36:05.660 --> 36:08.050
Selling. Maybe the intervention in.

36:08.630 --> 36:10.160
Again in my thinking is.

36:11.060 --> 36:15.650
As it is is developing new technologyinnovation is taking existing

36:15.650 --> 36:19.230
technologies and putting them togetherin a new concepts of operations

36:19.230 --> 36:20.130
to meet the needs.

36:20.780 --> 36:25.830
So you know a lot to klien in ain will we need a structure in

36:25.830 --> 36:28.650
industry that is out with his andBening in in out in our labs

36:28.650 --> 36:29.700
in our universities.

36:30.770 --> 36:33.960
And in wealth within that apartand with industry. I think we

36:33.960 --> 36:37.290
need of organizations we have we haveAccenture labs center other.

36:37.830 --> 36:41.080
Organizations have in here differenta different groups are you

36:41.080 --> 36:42.100
know all in our DARPA.

36:43.270 --> 36:47.620
Had that have that it a than cellsare sensors and they're looking

36:47.900 --> 36:51.740
and uh and making the mary it'sbetween no technology and and

36:51.800 --> 36:53.550
and customer need to reclaim each.

36:54.120 --> 36:57.810
One of the key things in our businessthat we do is you know

36:57.810 --> 37:00.560
what it everybody has differentstages trainer different and

37:00.560 --> 37:02.890
and the different stage processfor innovation we with three

37:02.890 --> 37:05.980
stage process and people of five Statesprocessed doesn't really matter.

37:07.040 --> 37:10.660
But for us to get beyond the thesecond seem to get in the second

37:10.660 --> 37:15.160
stage need to have a committedAKA committed clients a whole

37:15.160 --> 37:18.530
is willing to be here in engagewith us to turn something.

37:19.150 --> 37:23.510
From a fine idea and not justinto a pilot buddy into.

37:24.320 --> 37:27.960
Uh in medici not just into a demonstrationput into it and an

37:27.960 --> 37:31.650
actual implement will pilot they canthen they can then scale rapidly.

37:32.160 --> 37:34.860
Sell uh I Emmy to mediate the them.

37:35.610 --> 37:39.260
Uh it ties back in the acting TV thatisn't cc and all that really

37:39.260 --> 37:41.760
the to requirements anacquisition because.

37:42.700 --> 37:46.320
The two to four acquisition tobe effective it they needs to

37:46.320 --> 37:49.790
have the user they're ready to workwith it to make it effective

37:50.100 --> 37:53.530
a the more innovative the technologythe more quickly.

37:54.500 --> 37:58.040
Uh you need to have a overly needto have the user in key city.

37:58.040 --> 38:00.490
You can get something that is practicalhim and build upon that

38:00.520 --> 38:01.300
scale Rappaport.. Um.

38:04.380 --> 38:11.480
Um. The isn't the case that we itwould move the United States

38:11.480 --> 38:13.000
can nought on.

38:13.510 --> 38:18.980
Where law lying all on a technologicalaid just to lasts as long

38:18.980 --> 38:23.610
and now a as it has in thepast autumn for you.

38:25.520 --> 38:29.040
Sorry is the next saw said strategythat has that it's in their

38:29.040 --> 38:32.210
lives on attack plausible likegoing to be by its nature.

38:32.620 --> 38:34.160
Sure Derby cars.

38:34.730 --> 38:39.480
China oh other competing nationswill match that technological

38:39.480 --> 38:41.710
edge more quickly thanthey have in the past.

38:42.340 --> 38:46.420
And without I the latest technologyno way I think it's the way

38:46.420 --> 38:49.500
we use beaver what we of differentlywe're pretty clever.

38:50.020 --> 38:53.970
And uh and I think we still havethat uh. I'm as was that sank

38:54.070 --> 38:56.130
show mentioned earlier um you.

38:56.730 --> 39:00.300
To the chinese are very innovativeare gonna wealth had faced

39:00.300 --> 39:04.210
you a lot of one of the innovationthey get from lots from clear

39:04.210 --> 39:08.050
defense contractors. I do lose sleepat night about that about

39:08.370 --> 39:13.130
a in the world we of the in the inparticular the undersea domain.

39:13.220 --> 39:17.040
We haven't. I've tackle of willdamage that is extraordinary

39:17.040 --> 39:21.490
but which we will get chipped awayat by just stealing and it's

39:21.490 --> 39:22.510
a fact of life.

39:23.090 --> 39:26.230
And it adds to the point you madeit may be shorter about my

39:26.230 --> 39:29.790
point would be that's just notit's not just technology it's

39:29.820 --> 39:35.280
the way it's understanding of potentialadversaries or anybody

39:35.280 --> 39:38.780
out there. What are they believehow that they do things and

39:38.780 --> 39:40.490
can we cause a.

39:41.120 --> 39:46.390
A concern is to willow or or umI think of the kind of of cars

39:46.390 --> 39:49.060
than to do things differently justbecause of the way there.

39:49.060 --> 39:51.190
Why are the way theythink things to.

39:51.920 --> 39:55.420
It it's that and within and maybea enhanced technologically

39:55.420 --> 39:58.740
timing sensitive. But it's it'smore than that I think that all

39:58.740 --> 40:00.750
of whom was set up there hasto enter into that.. Um.

40:02.810 --> 40:11.330
Um. Mister brown you talk alittle bit about old to um.

40:12.300 --> 40:18.150
Challenges the Intellectual propertyownership and and how back.

40:18.760 --> 40:22.500
Factors into the in sandevising innovation.

40:23.120 --> 40:26.760
Um where you see that that issueright now what what needs to

40:26.760 --> 40:29.570
be done. You know I think fromthe from our perspective.

40:29.570 --> 40:33.130
It's certainly top of mind for the fallto the depart they understand that.

40:33.690 --> 40:38.850
Uh is because acre each companiesto invest in on R&D decorates

40:38.850 --> 40:42.040
intellectual property to create somevalue something that companies

40:42.040 --> 40:45.650
will one transfer notches with thewas go but also to opportunities

40:45.650 --> 40:48.900
overseas we to be extremely carefulabout that that's certainly

40:49.160 --> 40:52.500
the pot as assist toppled mine. Ithink we've got a this be very

40:52.500 --> 40:56.990
very careful when a as and peoplelike us like care is that all

40:57.020 --> 40:59.970
technology that is well protectedyou know it's it's something

40:59.970 --> 41:03.580
that we've invested in a bid foldingcomponents to view is got

41:03.580 --> 41:06.200
that we wanna sell one of the oldmark of that outside the west.

41:06.550 --> 41:09.610
I think I think the key thing thatthat nice to have been used

41:09.950 --> 41:14.430
these because the technology cycleit to be seems to be getting

41:14.460 --> 41:18.450
shorter and shorter it justdried of greater require.

41:19.130 --> 41:22.870
For companies as supplied to theduty to be faster more nimble

41:23.040 --> 41:27.020
more rational more flexible greentechnology beer very quickly.

41:27.060 --> 41:30.770
Our competitors around the worldare very very good it just to

41:30.770 --> 41:34.230
getting better and eat meat weit's incumbent on us to dried

41:34.230 --> 41:38.050
technology changed a lot faster thanwe said that it the minded.

41:38.660 --> 41:41.240
Can you balanced that so uh uh.

41:42.480 --> 41:45.720
Need to be able to market thingsglobally and not just the United

41:45.720 --> 41:49.740
States military with the ipad neednot to have everything stolen.

41:50.610 --> 41:55.570
Um and have your technological edgethe road of the road faster.

41:55.700 --> 41:59.930
What's the right balance a thatsurgery when on globalization

41:59.930 --> 42:00.870
do take in terms of.

42:01.850 --> 42:06.360
With that of our offense and Ithink that the terms and which

42:06.360 --> 42:10.710
things are being stolen as changedin the in the cyber will live

42:10.710 --> 42:14.740
that used to be worried about youknow somebody taking your product

42:14.740 --> 42:16.070
in reverse engineering it.

42:16.640 --> 42:21.250
Uh and that goes back decades evenevents centuries the about

42:21.250 --> 42:24.500
was the that the common intellectualproperty that that's that's

42:24.500 --> 42:25.250
how you did it.

42:25.910 --> 42:27.920
That even though do it.

42:28.610 --> 42:32.200
Set up in which you were tryingto stay ahead. You started with

42:32.200 --> 42:34.900
an advantage the isn't youinvented it in would take.

42:35.540 --> 42:40.550
No one years to to reverseengineer into to catch up.

42:41.060 --> 42:44.490
A you were you as long as you werecontinuing to animate you

42:44.490 --> 42:47.550
will always be ahead of those whowere trying to steal from says

42:47.550 --> 42:51.520
that there was an inherent advantage.I think the terms of changed

42:51.560 --> 42:58.280
in it and uh cyber world that thethe ability of the Countries

42:58.280 --> 43:03.560
in this case to take technology ait this scale which but that's

43:03.620 --> 43:06.760
kinda that's not that's been a paperdoes oh and they can steal.

43:07.400 --> 43:11.850
All of it in a dinner that it wouldjust a few. The strokes and

43:11.880 --> 43:16.100
and imported into their own systemjust as fast and so that that

43:16.420 --> 43:21.260
that law and we used to exist isn'tvery well and so I think

43:21.330 --> 43:25.850
that he the the that that in it can'tbe another the don predators

43:25.850 --> 43:30.270
china hard is bought is significantthat that that a watch will

43:30.270 --> 43:34.230
pocket that I don't think it'sit's a sales abroad that that

43:34.230 --> 43:38.120
is it's it's not be able to protecthere. Does the aims in mind

43:38.120 --> 43:42.580
is the new singing in and numerousinstances. Oh we've got had

43:42.580 --> 43:46.500
that can at that we we need tobe a little better protect our

43:46.500 --> 43:50.570
designs are intellectual propertyare on innovation if we're

43:50.570 --> 43:53.870
not gonna uh have this ofthis pattern continues.

43:54.480 --> 43:55.140
It so.

43:55.730 --> 43:58.540
Uh. Do you think that.

43:59.780 --> 44:04.150
Good. Showed that departmentfans the come on a.

44:04.740 --> 44:08.610
Is it's still too restrictive ontechnology that people develop

44:09.040 --> 44:13.830
alt thing. You are on sale to the dudethese it's still too restrictive

44:13.830 --> 44:18.020
on on what companies do with thatum michelle. What do you think

44:18.070 --> 44:21.200
never thought you'd them. Once vehicleindustry might be unique

44:21.230 --> 44:25.060
but I don't sell rockets overseasbuy-sell launch services overseas

44:25.140 --> 44:28.350
and so when we have an internationalcustomer probably get to

44:28.350 --> 44:32.300
know about is where their satelliteattaches to my rocket um

44:32.340 --> 44:35.180
and uh and how we're gonna get themand placed into there were

44:35.180 --> 44:38.880
bit um. We do not teach them aboutthe rocket we don't tell him

44:38.880 --> 44:42.280
how works they'd love to know theyoften ask we never tell them

44:42.690 --> 44:46.500
I'm I'm so like I think the launchvehicle industry is a little

44:46.500 --> 44:50.620
unique in that way although allthat you know maybe maybe folks

44:50.620 --> 44:54.380
use to sell rockets the in theircontracts structure as opposed

44:54.380 --> 44:56.900
to just want services. I think actuallythat's a little bit of

44:56.900 --> 44:57.570
an innovation.

44:58.100 --> 45:00.480
Of about the buying once orsays a set of iraq it.

45:00.860 --> 45:03.670
Yeah. Take I think we're we're sortof a new of the side these

45:03.670 --> 45:05.790
in a radio businessbecause we do sell.

45:06.740 --> 45:09.180
Oh I reader products around the worldand that's a bigger farmer

45:09.180 --> 45:11.710
business today frankly than sellingit in a deal would be an

45:11.710 --> 45:14.980
of the works to the advantage ofthe United States because you've

45:14.980 --> 45:18.360
got call ocean partners. And oh tobe effective in the battlefield

45:18.360 --> 45:21.340
video-chat to be would communicatewith one another to having

45:21.340 --> 45:24.990
a common set of products comes ina way forms ways of communicating

45:24.990 --> 45:28.870
one another to me is essential actuallybills. What's the strike

45:28.870 --> 45:31.040
the summer call wishes were tryingto build around the world

45:31.040 --> 45:32.290
the gets actually it the. Central.

45:34.980 --> 45:37.370
I have a green or whatdo you think re.

45:38.690 --> 45:41.210
Next steps all of a.

45:41.980 --> 45:46.660
For deo de too. Sort of a.

45:47.240 --> 45:51.610
Astor innovation what do you thinkbuilding what money but it

45:51.610 --> 45:53.700
displayed minutes cno after you.

45:54.230 --> 45:59.490
What is the challenge for. Thatadmiral to to build upon what's

45:59.490 --> 46:00.290
going on right now.

46:01.820 --> 46:07.960
A clarity of purpose that we canmentioned a here a For for what

46:07.960 --> 46:13.710
is needed out there a closer interfaceand a clear interface

46:13.710 --> 46:15.940
with industry all industry eunuch.

46:16.580 --> 46:18.100
Dillon said a pretty well there.

46:18.640 --> 46:24.610
Uh and I think frank kendall hasa the plus on the right track.

46:24.610 --> 46:28.640
I think you refers to is acquisitionimprovement. So try Reforma

46:28.640 --> 46:32.440
whole thing. Let's improve. Whatwhat we have an and I lastly

46:32.440 --> 46:37.800
I think as I said maybe to a fromthe willingness to pro that

46:37.800 --> 46:43.080
tied and put in well I live in to seeare in the air uh and ensuring

46:43.080 --> 46:44.690
design model sooner.

46:45.290 --> 46:49.250
Uh and and look to retirethat that to.

46:49.990 --> 46:54.360
That Reyes the tech to lunch careersbefore one in some fund

46:54.360 --> 46:59.840
through the long process a andin and and was the world.

46:59.840 --> 47:02.990
We're living anti said before morselong all that and by the

47:02.990 --> 47:06.600
time we get it uh. You know it's eithertechnologically to Def call.

47:06.970 --> 47:10.770
We've waste a lot of money fora you could've had this sooner

47:10.770 --> 47:14.200
hajji just brought it out let industrylook at it and help. You.

47:17.420 --> 47:18.250
Do we uh.

47:19.040 --> 47:22.000
Do we have the microphone for somequestions here are and don't

47:22.100 --> 47:23.920
know we're we're ready for that.

47:25.320 --> 47:29.830
This um iconic and Like okay greatso does anyone have any questions

47:29.830 --> 47:31.120
from the audience shut here.

47:31.940 --> 47:35.320
And all right mama and themicrophone is over.

47:36.160 --> 47:36.760
They are.

47:37.670 --> 47:40.950
The out there we go back iceal.That's a fact eric times wet.

47:42.530 --> 47:46.950
I'm in deference to her sponsorsdoors rip unlock even raise

47:46.950 --> 47:47.390
the on.

47:48.360 --> 47:50.050
Uh I look back.

47:50.670 --> 47:53.520
In the early nineties.We won the cold war.

47:54.710 --> 47:59.400
Dod. Think and courage prettymuch consolidation.

48:00.190 --> 48:02.520
Of the plant's difference.Those mousse.

48:03.930 --> 48:07.360
And i've wondering my just likequestion that the bottom line

48:07.360 --> 48:07.840
of like that.

48:08.750 --> 48:10.610
And to come up beforeyou answer that.

48:11.490 --> 48:15.310
My question to bottom-line his issome dod also an opposition.

48:16.180 --> 48:17.040
The opened up.

48:18.200 --> 48:19.220
The industry.

48:20.120 --> 48:24.480
A good and evokes of innovationmadness the um.

48:25.830 --> 48:29.690
If you look back on that consolidationthere are company use light.

48:30.680 --> 48:31.830
Let me industries.

48:32.930 --> 48:33.660
Two yard of the

48:35.180 --> 48:36.320
Um art work.

48:37.610 --> 48:39.310
Hughes a aviation.

48:40.310 --> 48:43.310
Um. And the going the list goes on.

48:43.890 --> 48:47.070
Oh that's autocratic all all all thatthat you've got the question

48:47.070 --> 48:50.200
out here. So it's good when youdon't okay to more seconds.

48:51.490 --> 48:54.500
If you go crushed at mount you'llfind san fernando bowing.

48:55.030 --> 48:59.240
It as the detroit one of the defenseelectronics business.

48:59.970 --> 49:00.930
At this point in time.

49:01.910 --> 49:03.110
It once was driving.

49:04.100 --> 49:05.420
And no it's not.

49:06.230 --> 49:09.830
But the deal with the of wonderingcan it turn a corner and come

49:09.860 --> 49:13.590
back to that I know I had to consolidateat the end of the cold war.

49:14.210 --> 49:15.640
Poker what's that about that.

49:17.030 --> 49:17.820
For poker a.

49:19.210 --> 49:19.850
I do.

49:21.080 --> 49:23.990
Prime put it new store coldperspective the bid.

49:24.860 --> 49:31.380
Two. Boom had two major changes inthe structure of our industrial

49:31.380 --> 49:33.390
complex over the past couple centuries.

49:33.940 --> 49:37.280
We started with that within industrythat was largely arsenal

49:37.280 --> 49:38.500
and shipyards system.

49:39.270 --> 49:42.090
From the revolution are way upto number two in that was the

49:42.090 --> 49:43.120
first change appealing.

49:43.860 --> 49:46.960
The demands in terms of scale on technologyworld war two demanded

49:46.960 --> 49:50.910
something much more and we we buildvery quickly actually a a

49:50.910 --> 49:53.970
defense industry based on a largeconglomerate started the auto

49:53.970 --> 49:55.720
industry to Bennett expanding out.

49:56.260 --> 49:59.370
That about system. Then lasteduntil point. You were talking

49:59.370 --> 50:03.530
about the end of the cold war we'rethat that the drop in spending

50:03.530 --> 50:06.760
the the change in the security requirementsbecause beauty that

50:06.790 --> 50:10.920
I asked foreign get a dramaticconsolidation fatality. We get

50:10.920 --> 50:14.230
a consolidation of is a defensewould also gonna change in the

50:14.230 --> 50:18.750
nature the industry went from conglomeratesuh to defense specialists

50:18.750 --> 50:22.510
most of the conglomerate sold offtheir defense businesses and

50:22.510 --> 50:26.130
a few in though your most of themare listed there a few large

50:26.130 --> 50:31.490
companies ended up being the top tierof the of the defense market.

50:32.090 --> 50:37.250
I think a two year are white I thinkwe're now I that third inflection

50:37.250 --> 50:41.100
point that forces are out there thatare starting to pushes towards

50:41.100 --> 50:44.660
a new industrial structure. I'dpost forces are one that the

50:44.660 --> 50:48.130
budget cat but those alone wouldn'tbe enough that we that budget

50:48.130 --> 50:50.680
cuts before doesn't change thestructure the industry. But it

50:50.710 --> 50:55.580
it starts a process the other thingsthat are going on it more

50:55.950 --> 51:00.260
as I said earlier when we become nowand that in order of technologies

51:00.260 --> 51:03.240
commercial technology. So thatof the fence market past.

51:03.240 --> 51:06.290
The broad matt weight and it isbut it did that passed without

51:06.290 --> 51:10.190
more and then secondly become amuch more global industry bolt

51:10.190 --> 51:14.690
in terms of our supply chain as wellas the this source the technology.

51:15.070 --> 51:19.550
I think you're gonna see over thenext the the IRS the uh that

51:19.550 --> 51:24.070
shape look the industry start dischiup to reflect those changes

51:24.070 --> 51:28.140
that I think the challenge for dodand and the industry itself

51:28.140 --> 51:31.870
is to manage that that third inflectionpoint manage that third

51:31.870 --> 51:35.180
change likely as well as the poorstew were manage about a week

51:35.240 --> 51:38.950
we came out with that the strengthof industry. We have should

51:38.950 --> 51:40.100
be a maintain that.

51:40.770 --> 51:45.090
Uh as as the strands gather steam.Mister goodman. Do know that.

51:46.100 --> 51:49.560
Yes I do but uh uh I dad to itthat it card coarsens speed.

51:50.120 --> 51:53.510
Which I mean we wouldn't beexisting regulatory regime.

51:54.630 --> 51:59.730
That future is going the lookalikeof the existing large defense

51:59.860 --> 52:03.810
providors being in a greater isof course will technology for

52:03.810 --> 52:08.170
the department so they'll maintainthat they are there had dominick

52:08.170 --> 52:11.000
position within the market and they'llbe the ones will be cast

52:11.000 --> 52:13.470
because frankly just be too hardfor the department to get out

52:13.540 --> 52:15.550
reach out to incorporate the technology.

52:16.080 --> 52:20.230
A who needed you are recognizingthis thinks of those companies

52:20.230 --> 52:21.720
bring I still think that that.

52:22.250 --> 52:24.980
Uh that would be a loss for thatapartment because it needs to

52:24.980 --> 52:26.330
be able to have access.

52:27.030 --> 52:30.260
To those companies directly and thatgoes back to earlier question

52:30.260 --> 52:33.590
jewel bald more fundamental changesprimarily round cost accounting.

52:34.130 --> 52:36.800
Is that I think he approves to bethe biggest here very are for

52:37.000 --> 52:39.470
companies that have developed economicmodel serve the commercial

52:39.470 --> 52:42.650
market do not have the whole structurein place to manage costs

52:42.650 --> 52:44.030
within separate currently expects.

52:45.510 --> 52:47.990
It's a wonderful barrier to entryfor all of us who currently

52:47.990 --> 52:51.090
serve the a heated who currentlyserves that apartment but it's

52:51.090 --> 52:54.660
probably not in the Department's long-terminterests michelle space.

52:54.660 --> 52:58.790
Sex is unable to fall work withthe government on completely

52:58.790 --> 53:01.460
from fixed price contracts thedeveloper dreading cap. So one

53:01.460 --> 53:05.140
from fixed price contracts um oran agreement with now sets up

53:05.140 --> 53:08.070
a nine was fundamentally our developmentum but we certainly

53:08.070 --> 53:11.880
been able to sell it in a fromfixed price basis. Well I'm so

53:11.910 --> 53:14.980
I think that is a huge barrier toentry and I think I think that's

53:14.980 --> 53:18.140
worth the discussing to do whatI talk a little bit about the

53:18.140 --> 53:22.990
question of pyjama brought out ifyou are only buying a few very

53:23.020 --> 53:26.660
march systems and I'm gonna usesatellites. I don't know how

53:26.660 --> 53:29.260
to innovate in the navy. I knowyou need an aircraft carrier

53:29.260 --> 53:32.210
and don't get a credit innovateon nuts and leave your industry

53:32.210 --> 53:35.140
alone fighting to talk about thesatellite industry. If you're

53:35.140 --> 53:38.930
only buying a few sheets systems.There's only a few huge companies

53:38.930 --> 53:42.580
that can provide that if you look atthis iger dating the capability

53:42.890 --> 53:46.230
on and having bringing new onesand san in the cell like a reno

53:46.340 --> 53:49.460
I'm a little little satellitesthat can do and mission maybe

53:49.460 --> 53:53.310
not the same way the that those giantcell phone bell star black

53:53.310 --> 53:56.070
because can this exquisite systemsbut they can certainly get

53:56.070 --> 53:59.360
a good chunk of that mission doneit dramatically reduced coughed.

53:59.680 --> 54:04.230
So I think if the government really startsI'm thinking about purchasing.

54:05.180 --> 54:11.280
More numbers less capability perunit then you'll start saying

54:11.310 --> 54:14.470
small industry proliferate againand you'll start seeing new

54:14.470 --> 54:17.250
entrants and I think the the governmentwill start being able

54:17.250 --> 54:20.080
to leverage the innovation thatclearly is out there. I will

54:20.080 --> 54:24.910
greener what's the possibility of doesaggregating capabilities more.

54:25.490 --> 54:26.700
In. The milk.

54:27.530 --> 54:32.130
Well i've a cat to me glad thatthat that means more payload

54:32.130 --> 54:35.840
to that means less and what I callbuilding a ship for an aircraft

54:36.200 --> 54:40.000
that is so integrated that you knowthe prime does it all a as

54:40.000 --> 54:44.500
opposed to give me the basics andthen I look out to the smaller

54:44.660 --> 54:49.150
uh the and distributed and in itthat said entice more we have

54:49.150 --> 54:52.890
a little clip. So that in the unmannedindustry we go up to lover

54:52.890 --> 54:56.900
place are mine counter measure systemsto have more a unmanned

54:56.930 --> 55:00.760
underwater vehicles to do a crucifixin that and we reach out

55:00.760 --> 55:04.910
of me fine smaller companies can providethese uh unknown one vehicle.

55:04.910 --> 55:08.560
So they're they're amazing and theystart a competition and they're

55:08.590 --> 55:12.210
not you start rolling and the otherthing that brings to a smaller

55:12.210 --> 55:15.990
countries please say you can doundermine its on no I can't do

55:15.990 --> 55:19.540
that I need a ship and in it helicopterto toe big slice. I know

55:19.540 --> 55:23.120
you know we news about 40 footboat that with this little one

55:23.120 --> 55:26.750
mammals sewing that made by a companyex-wives E now we're on

55:26.750 --> 55:30.430
a roll here. So you're exactlyright and it doesn't apply.

55:31.020 --> 55:34.450
In a big aircraft carriers uh. There'sa lot a little companies

55:34.450 --> 55:37.770
make new nuclear components anda whole host of things and a

55:37.770 --> 55:41.380
flea or can you know very careful ofnurturing them paying attention

55:41.380 --> 55:45.530
them and they're gone. I can goaircraft can mean from a care.

55:46.840 --> 55:50.660
The 71 to one of the only notedis it sink a um surrogacy trend

55:50.660 --> 55:54.170
in that direction the demos popeearlier about the loans you

55:54.170 --> 55:57.560
know in in historically in thesevery large multibillion dollar

55:57.660 --> 56:01.950
decade-long did all been exquisitetight satellite systems typically

56:01.950 --> 56:02.870
single mission.

56:03.410 --> 56:08.230
The worst moving to is of the payload.So the Government table

56:08.230 --> 56:12.030
or a military table riding wian80 commercial vehicle.

56:12.560 --> 56:14.630
At that does it brings down the cost.

56:15.200 --> 56:18.490
Is certainly reduces to find tomission any could prove improve

56:18.490 --> 56:19.710
resiliency or.

56:20.390 --> 56:23.710
The big the resiliency in space. Soyou got a wide differ NASA jet.

56:23.710 --> 56:27.260
The are hosting paywalls all anewsomething it's it's a trend

56:27.260 --> 56:29.610
it's a there's a contract it'sout there's a there's a number

56:29.610 --> 56:33.420
of companies developing technologiesto put pay loads for the

56:33.420 --> 56:36.830
military onto commercial satellites.I use of physically in the

56:36.830 --> 56:39.840
right direction to me what thatwas speaking about the forms

56:39.840 --> 56:40.570
of the paywalls.

56:41.490 --> 56:42.130
The rex question.

56:44.360 --> 56:49.190
I am is shot li yuan mentioned a nascentcost per gram as a success

56:49.190 --> 56:52.340
story which I fully agree with fromwondering what your thoughts

56:52.340 --> 56:55.300
are on how the deity canleverage second model.

56:57.110 --> 57:01.330
I could talk more about the model itself.I think it was a brilliant approached.

57:01.330 --> 57:06.050
So what NASA did it is so I'm saidI have this much money and

57:06.050 --> 57:09.820
I want this capability um and theyopened up a competition you

57:09.820 --> 57:10.360
can been.

57:10.880 --> 57:14.470
One of four different capabilities.We did most of them actually

57:14.470 --> 57:16.420
all of them with thatall of them I'm.

57:17.030 --> 57:20.930
In and NASA partnered with us wasthe one it's not contracts

57:20.930 --> 57:23.300
in a green and it was like anothertransaction Doherty for the

57:23.300 --> 57:27.850
DIA de um. Once we did win and westarted feeling than NASA became

57:27.850 --> 57:31.270
our partner. I never felt like NASAwas a customer although they

57:31.270 --> 57:35.030
were paying half the bills a of thatthe moment project the baby

57:35.030 --> 57:38.710
teamed with us today provided financialresources. They provided

57:38.710 --> 57:41.590
technical support anda letsby sex and do.

57:42.140 --> 57:44.810
Of the great work commit that thestrength that we have they

57:44.810 --> 57:49.450
let us and let us move with thatI'm so kinda back to my earlier

57:49.450 --> 57:53.440
remarks the their own requirements.She that the DIA de Haston

57:53.440 --> 57:57.670
have a set of capabilities mad onit when they're preparing systems

57:57.870 --> 58:01.740
that would limit those to performancerequirements never had

58:01.740 --> 58:02.610
to requirements.

58:03.130 --> 58:04.260
How how to.

58:04.880 --> 58:07.650
A fleet that I thinks they sex doeslaunched better than anyone

58:07.650 --> 58:10.880
else on the planet right now umand I don't wanna be told them

58:10.880 --> 58:12.230
by someone who doesn't.

58:12.760 --> 58:14.080
Um how to do that.. Question.

58:17.940 --> 58:23.720
Question. Oh my name is of wrongmadness I work for make it.

58:24.320 --> 58:26.410
A defense contractor basement States.

58:27.020 --> 58:30.960
Uh has are founded as we try toinnovate and uh in particular

58:30.960 --> 58:34.990
working with commercial companiesto me invite them into or fire

58:34.990 --> 58:39.810
of the programs more often thannot that they will hesitate to

58:39.810 --> 58:44.800
break in their commercial technology andwe're to afford he getting tainted.

58:45.380 --> 58:46.130
Finally tart.

58:47.930 --> 58:48.960
And in common to. That.

58:51.590 --> 58:52.310
One one uh.

58:53.280 --> 58:58.310
For a a a a the start as a I'd toour is really is a big problem

58:58.770 --> 59:02.740
as mcleish you look at the globalizationof the defense industry

59:02.740 --> 59:05.840
and when that the thing is you marketerbrought jill fly and that.

59:06.440 --> 59:10.420
The thing that overseas companiesuses there. One other principal

59:10.420 --> 59:13.150
marketing Mac. Mechanisms isto say it's I car for eight.

59:14.030 --> 59:19.820
Uh it it. It's it's be column ahe should burden for American

59:19.820 --> 59:24.470
companies uh uh uh selling overseasdid that the whole wide car.

59:24.810 --> 59:28.350
I also don't think it's achievingits purpose the utterly back

59:28.350 --> 59:32.050
him out of the cold war is a unitthat put a barrier up against

59:32.050 --> 59:36.160
a a really a single peer rabbisyria was I'll the system was

59:36.160 --> 59:40.180
designing a it. I don't know theirwork particular royal heir

59:40.180 --> 59:45.510
but it woods working not at allnow. So we need to a shift that

59:45.510 --> 59:48.440
system we still lead to protect certaintechnologies. But I think

59:48.440 --> 59:51.330
it's many many fewer than we dowe're about a lot higher and

59:51.330 --> 59:56.870
I was around those but but much morefreedom a good to sell overseas.

59:56.870 --> 01:00:00.200
The other technologies which generallyare widely available the

01:00:00.200 --> 01:00:03.230
international marketplace of we don'tsell them. It doesn't mean

01:00:03.600 --> 01:00:06.780
potential adversaries don't getthem. It. Just means the U.S.

01:00:06.780 --> 01:00:08.480
companies lose overseas sales.

01:00:09.400 --> 01:00:09.700
Thank. You.

01:00:13.670 --> 01:00:15.550
Hi dustin a paddle.

01:00:16.910 --> 01:00:17.470
Talking about.

01:00:18.890 --> 01:00:23.150
Systems of systems an open operatingsystems plug and play.

01:00:23.660 --> 01:00:28.290
Those things I hear frumpy handscosts more money because they

01:00:28.290 --> 01:00:31.700
have a program that it up recordthat is working and if you want

01:00:31.700 --> 01:00:35.010
to had something to it they haveto go through and validation

01:00:35.010 --> 01:00:38.680
testing processed which can beexpensive. So as we go through

01:00:38.680 --> 01:00:42.280
the process someone create thatopen architecture. How do we

01:00:42.280 --> 01:00:47.030
keep debt expense down of we qualifyingcapabilities. I think

01:00:47.030 --> 01:00:50.810
the raise alerts bouts of a denimwith with the pm you're talking

01:00:50.810 --> 01:00:56.440
to a is that they they are sentaway man uh I have a destroyer

01:00:56.440 --> 01:01:01.570
today you wanna add a new hey loadto this DNA there what that

01:01:01.570 --> 01:01:05.640
means i've got a break open thecurrently a proprietary system

01:01:05.640 --> 01:01:10.880
made by some big companies that isn'tgonna be the payload company.

01:01:11.380 --> 01:01:14.870
And that's gonna be expensive thanI say yeah up ask why the

01:01:14.870 --> 01:01:19.960
next time. We build we don't buy theseMorrison necessarily proprietary

01:01:19.960 --> 01:01:24.580
thing will all give me a backbone giveme power cooling and fully um.

01:01:25.090 --> 01:01:28.750
And in out turn to smaller companyagain we got it in a minimum

01:01:28.750 --> 01:01:33.690
particles we got on a mess of wetested a missile last fall a

01:01:33.720 --> 01:01:36.650
by a company coming down we strappedon the back of the ship

01:01:36.650 --> 01:01:40.700
and issued put in you know puttinga lot lonely GPS corn as we

01:01:40.700 --> 01:01:43.910
hope that up to one of their silverlaptops and realize that

01:01:43.910 --> 01:01:44.500
they hit.

01:01:45.200 --> 01:01:49.230
Now a that's the easy part. Sohow are you integrate that uh.

01:01:49.310 --> 01:01:54.490
So we're as we look ahead it anduh far ships. If we don't do

01:01:54.660 --> 01:01:56.280
kind of what I'm alluding to.

01:01:57.080 --> 01:02:00.780
Every pm well and say exactly thatand that will wait until the

01:02:00.780 --> 01:02:05.430
next big docking period or whateverwhich could gain years and

01:02:05.430 --> 01:02:09.590
this world Wall out that we don't havehere is to put a new capability

01:02:09.590 --> 01:02:11.460
on things. We're evolvingtoo fast.

01:02:12.470 --> 01:02:15.250
Uh. Is it worth giving up.

01:02:15.760 --> 01:02:20.350
Capability. Immediate leave forthe first integration in order

01:02:20.350 --> 01:02:24.860
to preserve the adaptability downthe Road no I don't think you

01:02:24.860 --> 01:02:28.570
have to do that it it to pass onso I think we're mp line as

01:02:28.570 --> 01:02:31.070
a build the kind of a don't worshipin bringing up and then put

01:02:31.070 --> 01:02:35.040
the pay was and now I think is onbuilding the ship and I I put

01:02:35.040 --> 01:02:38.920
the specs out and one up to to industryis you were santa saying

01:02:39.120 --> 01:02:43.660
you guys a who's got some good ideasand clear requirements and

01:02:43.690 --> 01:02:48.520
and an open it up and allow thosethat come forward to the in

01:02:48.520 --> 01:02:52.120
picks their ideas. If you know Imean but but yet to be fairly

01:02:52.120 --> 01:02:56.170
specific in the specks of the thingsare compatible to wait industry

01:02:56.170 --> 01:03:00.460
is making I'll weapons kinetic andnon kinetic today electro-magnetic

01:03:00.460 --> 01:03:02.710
stuff as well as stuff of blows up.

01:03:03.370 --> 01:03:07.080
Uh you can do that I mean we're seenit and that we're scratching

01:03:07.080 --> 01:03:10.570
our head and sometimes sent I wishwhen gone so far dollar on

01:03:10.570 --> 01:03:14.020
the system were put in right now.I can't back out I have to

01:03:14.020 --> 01:03:16.810
wait because they're sitting theresomething that is cheaper

01:03:16.810 --> 01:03:20.780
and then in fact more effective.So I I don't think it was so

01:03:20.780 --> 01:03:21.550
as to be that.

01:03:22.130 --> 01:03:27.360
Out by julien you do have to getwith industry. So under pressure

01:03:27.360 --> 01:03:31.070
lana these requirements and andtalk about you know what you're

01:03:31.070 --> 01:03:33.900
gonna ask for in these pay lovesto see what I'm saying.

01:03:34.640 --> 01:03:40.050
That do you think that the currentdefense is doing a a that

01:03:40.080 --> 01:03:45.130
enough at this moment in time makingthings open not so that.

01:03:45.730 --> 01:03:50.060
I'm bits of technology has a dancecan be joined in I think it's

01:03:50.060 --> 01:03:53.230
very it's a step in the processof victors more to be gone.

01:03:53.230 --> 01:03:56.790
I think it's the right intention.I think you know from the on

01:03:56.840 --> 01:04:00.070
a variety of our business speciallyintact korea's into the department

01:04:00.070 --> 01:04:04.960
is moved to orange open protocolsystems. So we app and ad the

01:04:04.960 --> 01:04:09.530
proprietary way form that we developback in the mid 2001 there

01:04:09.530 --> 01:04:12.490
was in a way for my available forwide being communication.

01:04:12.490 --> 01:04:14.970
That's a proprietary investthat we've made.

01:04:15.520 --> 01:04:19.750
The department he put together thesestrategy and the major strategy

01:04:19.750 --> 01:04:21.700
going trying to attackthe radio system.

01:04:22.250 --> 01:04:25.700
Lacey said we're not gonna go fordwith technologies where the

01:04:25.700 --> 01:04:29.190
way for more be proprietary with allthe all the open share putting

01:04:29.190 --> 01:04:32.720
alive or share with a all the variousvendors and to making a

01:04:32.720 --> 01:04:35.820
one step down in that directionof the that's in a raid of this

01:04:35.820 --> 01:04:38.300
is I think we're see the same thingin the rest of the does or in.

01:04:39.890 --> 01:04:40.350
That's course.

01:04:41.150 --> 01:04:43.330
Shirt Byron kellen capital of workers.

01:04:43.940 --> 01:04:46.960
Until browned you're the new yorkconference calls with investors

01:04:46.960 --> 01:04:50.170
you specifically highlight have muchyou spend as a% of warranty

01:04:50.170 --> 01:04:53.750
on sales are just you making industryjust wanted to talk about

01:04:53.750 --> 01:04:56.600
a pound you think about settingthat level in the time for and

01:04:56.600 --> 01:04:59.640
you wanna get a return on thatin the us and the rest I want

01:04:59.800 --> 01:05:03.760
to come to we um three years agoI start a harris. We are in

01:05:03.760 --> 01:05:07.040
the eye rad is generally about4% four point two percent.

01:05:07.550 --> 01:05:11.280
You should be about five flash yourrunoff I percent. So we read

01:05:11.310 --> 01:05:16.680
that up and we're investing money inthe really cross all portfolio.

01:05:16.950 --> 01:05:19.640
He certainly of stepped up an attackto Brady does is to return

01:05:19.640 --> 01:05:22.970
to that this is served very verygood to the way. I woke at is

01:05:22.970 --> 01:05:25.690
we have a unique positionin that marketplace.

01:05:26.330 --> 01:05:29.120
In in that is that wehave a very fragile.

01:05:29.710 --> 01:05:33.700
Commercial model what was veryvery quickly deen and in a and

01:05:33.700 --> 01:05:37.410
I see the returns on investment thereto be quite strong over time.

01:05:37.980 --> 01:05:42.760
There's one point two million radiosin the deo de inventory day.

01:05:43.340 --> 01:05:46.170
More than 90% of those radiosare the ban on like.

01:05:46.910 --> 01:05:49.960
And you can imagine soldiers warfightersthat word high school

01:05:50.060 --> 01:05:53.670
in groping order nine fallen TeddyBilly quickly download you

01:05:53.670 --> 01:05:57.470
to videos came when the militaryworking on a sort of a more

01:05:57.470 --> 01:06:01.280
all star tack for a big block interms of its capacity and speed.

01:06:01.500 --> 01:06:04.610
We know that's going to changethe smaller forced paths to be

01:06:04.610 --> 01:06:09.160
more technically capable in our viewthat happens between technology

01:06:09.190 --> 01:06:13.040
happens to be to communicationssharing of information to the

01:06:13.040 --> 01:06:15.860
Windows can and have a symbols likegrab is going in a pap it.

01:06:16.250 --> 01:06:19.280
So we need predicting the tying forgotto shift that the right place.

01:06:19.450 --> 01:06:22.540
I'm not really sure that I'm I'mvery certain that the return

01:06:22.540 --> 01:06:24.850
is going to be you and that's whywe stepped up so much on our

01:06:24.850 --> 01:06:26.970
indie person a tactical radio side.

01:06:27.670 --> 01:06:28.450
To thank you. Buyer.

01:06:32.750 --> 01:06:33.300
The other question.

01:06:35.500 --> 01:06:39.380
Hi this question is out for an agreeor not many to study family.

01:06:39.380 --> 01:06:42.630
I was a ousting foreman for six yearsand this past summer air sea.

01:06:42.630 --> 01:06:45.610
Good recognition is public affairsofficer on some like said

01:06:45.610 --> 01:06:46.410
the back in the navy.

01:06:46.940 --> 01:06:50.120
Um I know that the navy has hadsome retention issues over the

01:06:50.120 --> 01:06:52.000
past year specially Mateo community.

01:06:52.600 --> 01:06:56.010
Um and with all of the top of innovationand everything that

01:06:56.090 --> 01:06:59.470
that you've been doing the navy spindeo in a in a better preparing

01:06:59.470 --> 01:07:03.050
our sailors for the slate a golf inthe classroom and it's prudential

01:07:03.050 --> 01:07:04.500
learning out and out in the flea.

01:07:05.140 --> 01:07:07.910
Um where the navy doing some keepingyou sign folks from slipping

01:07:07.910 --> 01:07:10.850
and and taking your jay of seesthese talented. I was with the

01:07:10.850 --> 01:07:14.020
final readers and the navy um whatof risen 80 currently doing

01:07:14.090 --> 01:07:16.540
to address those of the tension cheese.

01:07:17.390 --> 01:07:20.890
Well the up the depends on whereissue for look the reason for

01:07:20.890 --> 01:07:24.050
the retention issue. If youare overall retention.

01:07:24.620 --> 01:07:28.300
Please good five that masks whatyou're describing which are

01:07:28.300 --> 01:07:31.880
retention issues and people offly somewhere junior officers

01:07:32.330 --> 01:07:36.590
a people that do submarine nuclearsubmarines which show up is

01:07:36.590 --> 01:07:40.470
an issue nsa poses are high investmentcyber people they are

01:07:40.470 --> 01:07:43.930
of the people who their lines arehiring again. There's always

01:07:43.930 --> 01:07:46.860
good there's always the nuclearopenings and of course cyber

01:07:47.330 --> 01:07:50.400
up so they need to feel that whatthey're doing is relevant they

01:07:50.400 --> 01:07:52.460
need to understand that work to.

01:07:52.980 --> 01:07:54.650
A that would that there um.

01:07:56.070 --> 01:08:00.250
No appreciated and that to we won'texpand their horizons and

01:08:00.250 --> 01:08:04.390
will educate them. Now uh that's difficultto do an uncertain times.

01:08:04.390 --> 01:08:07.310
So we need to keep them certain theyneed to think of war fighting.

01:08:07.310 --> 01:08:11.160
First they'd understand we're we'regoing uh and I need to make

01:08:11.160 --> 01:08:15.130
sure I communicate that so uh Icame if that is gonna be about

01:08:15.130 --> 01:08:18.570
money and I think that my of collectormesses. My son or my isn't

01:08:18.570 --> 01:08:22.220
it all the time all from a differentgeneration a is making sure

01:08:22.220 --> 01:08:26.080
that the the ever sounds for whatthey're do one uh begin is

01:08:26.080 --> 01:08:29.670
important and they're in institutionthat we'll continue enabled them.

01:08:30.040 --> 01:08:34.370
That's a continuing. A us all ofthat I am on a all the time.

01:08:35.410 --> 01:08:39.580
Are there are additional tools.It you in the world to recruit.

01:08:40.100 --> 01:08:45.340
Tactical experts be there thatin fiber aware are sort of uh

01:08:45.500 --> 01:08:49.380
some of the Technological fieldseven talking about two day do

01:08:49.380 --> 01:08:50.540
you need to be able to.

01:08:51.530 --> 01:08:54.870
Bring someone in a higher rank thanthey might otherwise go away

01:08:54.870 --> 01:09:00.250
and a druck commissioning for afor cyber for cyber for a in

01:09:00.600 --> 01:09:03.890
you know actually if you look cyberis one of the easiest areas

01:09:03.890 --> 01:09:08.210
for some me to cumin and integratea to grow up to at an essay

01:09:08.210 --> 01:09:11.400
if you go into any of our navyinformation operations centers

01:09:11.870 --> 01:09:16.250
a you'll see somebody and kameezcamouflage outfit sailor with

01:09:16.250 --> 01:09:19.890
a crew cut or something and nextsunday solely with tattoos and

01:09:19.890 --> 01:09:24.060
piercings all over so work and side-by-sidepatriots young americans

01:09:24.060 --> 01:09:28.380
working together all ages and andskills that's an interesting

01:09:28.660 --> 01:09:32.290
very a word you know you have anintegration a of folks that

01:09:32.360 --> 01:09:33.410
may one is serving a.

01:09:34.190 --> 01:09:37.490
Maybe in a for the actually thedepartment and the country and

01:09:37.490 --> 01:09:41.490
a the civilian capacity perhapsbut with the same mission.

01:09:42.020 --> 01:09:46.000
Uh no I I think to in of to tomake a sailor. So we right off

01:09:46.000 --> 01:09:49.240
the Street the cyber warrior uh.We have a lot of work to do

01:09:49.240 --> 01:09:52.980
to do is that it's you gotta havekinda of basics of cyber and

01:09:52.980 --> 01:09:56.480
and then you build upon that that'sthat's a structured challenges

01:09:56.480 --> 01:10:00.110
that uh and the six minimus we haveleft I would exceed everything

01:10:00.110 --> 01:10:04.050
you have here. Oh but it it it issomething that and our training

01:10:04.100 --> 01:10:08.740
baseline me to work on we have turnedindustry an industry has

01:10:08.740 --> 01:10:12.750
done very well and they're veryinterested Microsoft mogul all

01:10:12.750 --> 01:10:16.890
the big ones but also so many morewho are willing to teach us

01:10:16.890 --> 01:10:20.260
how to train somebody fasterand and very every new set.

01:10:22.250 --> 01:10:24.940
All the time for another questionof somebody wants to get up

01:10:24.980 --> 01:10:29.030
there and in the meantimea will ask a.

01:10:29.620 --> 01:10:33.750
A little bit more of downloads um.

01:10:34.500 --> 01:10:37.980
You know janet perkins is folkthis morning talked about what

01:10:38.390 --> 01:10:40.770
a Need to.

01:10:41.420 --> 01:10:48.050
Train a new generation of soldiersto the To invade of on the

01:10:48.050 --> 01:10:52.120
battlefield innovative the in theprocedures bear thinking about

01:10:52.160 --> 01:10:52.850
the cause.

01:10:53.570 --> 01:10:58.500
Tackle altar call up a advanceswill not last as long for the

01:10:58.500 --> 01:10:59.650
reasons we talked about.

01:11:00.170 --> 01:11:03.170
Them. How do you do um.

01:11:04.440 --> 01:11:07.560
I wanna asked them agreeingor call you in courage.

01:11:08.160 --> 01:11:13.790
Trailers to be more innovative intheir daily life and I wanna

01:11:13.790 --> 01:11:15.970
ask up you mr. Good men.

01:11:16.520 --> 01:11:20.900
Yeah. No a deal would de can.

01:11:21.460 --> 01:11:22.580
Do to.

01:11:24.350 --> 01:11:30.450
Two. To make translate aboutthat innovation and I'm.

01:11:31.020 --> 01:11:34.410
In deserve prop or for thatstarred star when you hear.

01:11:35.080 --> 01:11:38.590
Well i've timer I don't wanna usea tire terms of indian got

01:11:38.590 --> 01:11:41.610
empower them they need to understandwhat what they are of the

01:11:41.610 --> 01:11:46.090
breadth of of their uh a 40 yearsand uh and so the has to be

01:11:46.090 --> 01:11:48.810
clear about one eight we to expressthe service with this little

01:11:48.810 --> 01:11:53.150
thing called the Syrian known forrapid and innovation sell uh.

01:11:53.150 --> 01:11:56.440
There's only there's trouble themin any given time of the three

01:11:56.440 --> 01:11:59.620
in there that they have a networkof over to sounds that they

01:11:59.650 --> 01:12:03.240
reach out to the fleet say hey I'mworking on this project that

01:12:03.240 --> 01:12:07.470
give me some ideas on that so akid says hey I'm a I'm here to

01:12:07.470 --> 01:12:11.390
see if I'm on the bridge at andwe bring a ship alongside to

01:12:11.390 --> 01:12:15.380
take fuel it's such a pain thebut that's to to be able to.

01:12:15.380 --> 01:12:18.640
Maintain course bay the waves areborn with citizens there.

01:12:18.890 --> 01:12:21.510
There's a better way to do andhe said we I want to work why

01:12:21.510 --> 01:12:25.000
choose a global glasses finish more.How I do that so we'll get

01:12:25.040 --> 01:12:28.410
so they got a whole approval gavehim a glasses and they put

01:12:28.410 --> 01:12:33.210
the program and their show thata sister than that work wise

01:12:33.210 --> 01:12:37.820
five just the ship's bow laid down.Of course be distance and

01:12:37.820 --> 01:12:42.110
all that he's now portrayed rightup there on the one who placers

01:12:42.110 --> 01:12:44.770
this looks over there and it's goneall that lady up there that

01:12:44.770 --> 01:12:48.650
turned into if I looked over thereat the airplane and out it

01:12:48.650 --> 01:12:51.400
would tell me is of course thein melted to that thing in the

01:12:51.400 --> 01:12:55.640
guy has access to that it's it'sthat sort of networking feature

01:12:55.640 --> 01:12:58.570
that you know this the money wasthere all connected they've

01:12:58.600 --> 01:13:02.570
they've got an idea they go crazyunless saying it's bringing

01:13:02.830 --> 01:13:07.000
all that together and then rewardingthem a for do one and by

01:13:07.030 --> 01:13:11.150
a by well known to time to happenthem understand they made the

01:13:11.150 --> 01:13:16.150
change uh. So this is like a theoreticalspeak but it's turning

01:13:16.150 --> 01:13:19.730
that into actuality and that'sthat's a journey is that they

01:13:19.730 --> 01:13:23.210
don't want to do that and and getthat out there. It's is up

01:13:23.240 --> 01:13:27.380
a little bit as of us said beforecounter culture the but you

01:13:27.380 --> 01:13:28.140
gotta keep building.

01:13:28.820 --> 01:13:31.450
Those are them into of the responsemy totally mangled question

01:13:31.450 --> 01:13:33.120
our show like I got it became.

01:13:33.670 --> 01:13:34.050
That's enough.

01:13:34.760 --> 01:13:38.030
The G gillian your your your yourfirst mangled response was

01:13:38.030 --> 01:13:41.910
making up making a fun of the applicationof magic bands to the

01:13:41.910 --> 01:13:45.850
TV but whatever all greener talk aboutthe application of google glass.

01:13:46.430 --> 01:13:51.200
These exactly that and you knowwhat a would disney unit did

01:13:51.200 --> 01:13:54.770
in their realization that they neededto transform their concept

01:13:54.770 --> 01:13:57.820
of operations to uh to.

01:13:58.340 --> 01:14:02.840
Enable. A a a customer experiencefor people who grew up in a

01:14:02.840 --> 01:14:06.100
connected world is exactly the challengetoday and will greener

01:14:06.100 --> 01:14:09.020
has with with sailors withsailors of today.

01:14:09.590 --> 01:14:10.400
You know the one.

01:14:11.110 --> 01:14:14.440
Yeah and timing your common aboutabout the cultural change.

01:14:14.990 --> 01:14:15.380
The most.

01:14:16.070 --> 01:14:17.980
Fundamentally the most important.

01:14:18.660 --> 01:14:22.090
Cultural change I think we need toenable before going to promote

01:14:22.090 --> 01:14:26.830
innovation is that we're going tohave a series of failures and

01:14:26.830 --> 01:14:31.350
we need to figure out a way wherewe're those failures coming

01:14:31.350 --> 01:14:35.560
manageable sizes and it's okay becausesampson and I think you

01:14:35.740 --> 01:14:38.970
currently in the acquisition andI see the acquisition barman

01:14:38.970 --> 01:14:41.740
isn't it is a zero tolerance environmentfor the most part it

01:14:41.740 --> 01:14:45.180
is not career enhancing. You knowto have a politic you're working

01:14:45.180 --> 01:14:48.240
on not succeed. But I don't thinkwe'll get innovation certainly

01:14:48.240 --> 01:14:51.400
we don't get innovation and our businessin a hundred% of the time.

01:14:52.030 --> 01:14:56.040
And so I think a year as where it woulddriving called pulled change.

01:14:56.700 --> 01:14:59.910
You that needs to be a a thatneeds to be a key part of it.

01:15:00.470 --> 01:15:03.180
So we have less than a minute. We'llmake your own question. Quick.

01:15:06.640 --> 01:15:10.110
Or museums spies Jordan made up by 10Arch for for the Rand corporation

01:15:10.430 --> 01:15:14.420
just uh. I was struck by the Apple'ssuck coming about bringing

01:15:14.420 --> 01:15:17.790
innovation up from the bottom andit sort of the personal tactical

01:15:17.790 --> 01:15:19.590
level in the tryingto spread it out.

01:15:20.150 --> 01:15:24.480
And this is sort of the oppositeof the the disruptive innovation

01:15:24.480 --> 01:15:27.360
concept and did you ever industry.Disruptive lee inundating.

01:15:27.730 --> 01:15:31.310
But the purpose challenges how theexplosive leah poppies things

01:15:31.310 --> 01:15:35.660
and get from widespread use it inin these very large organisation.

01:15:35.660 --> 01:15:41.090
So my question is really how do youdrive those individual innovations

01:15:41.120 --> 01:15:45.870
into for widespread use that actuallychanges capability apt

01:15:45.870 --> 01:15:49.880
of forced will visit the sittingin cno to do it by that actually

01:15:49.880 --> 01:15:51.360
asked couple to propel members.

01:15:51.920 --> 01:15:55.290
How how does that crosses work inour inner part of arm. We don't

01:15:55.290 --> 01:15:59.090
have time volcano lovers of tendsto answer the ball. Well I'd

01:15:59.150 --> 01:16:02.620
I brought these Keynesian and toMayan executive me at all the

01:16:02.620 --> 01:16:05.890
have most together in the kid didthat they kid did did this

01:16:05.890 --> 01:16:06.890
cyber test.

01:16:07.410 --> 01:16:11.360
You know uh it was actually kindascary is it. I said we're gonna

01:16:11.360 --> 01:16:15.370
do is to as we did on a ship everybodychi held their breath

01:16:15.400 --> 01:16:18.200
of the fact of the matter saidyou guys got a pope when your

01:16:18.200 --> 01:16:22.170
eyes and so bringing them and uhthere's one thing and now that

01:16:22.170 --> 01:16:27.850
is our test that is our mandating testadopted by fleets I ever man.

01:16:27.850 --> 01:16:31.010
You know it's going instructionall that stuff to google glass

01:16:31.010 --> 01:16:32.180
as we were down by this in.

01:16:32.690 --> 01:16:35.520
For a hundred thousand dollars. Webought you know a whole bunch

01:16:35.520 --> 01:16:39.020
of we got a great deal five allotmentball shiver love to the

01:16:39.020 --> 01:16:43.810
flea uh we have a it does takeme right now but it's starting

01:16:43.810 --> 01:16:47.070
to catch all you know there's anold saint hopefully what I like

01:16:47.070 --> 01:16:50.620
people are fascinated by the andmaybe that's kind of a joke

01:16:50.620 --> 01:16:54.110
but I'm hopeful for that but youknow it's it is a new concept

01:16:54.110 --> 01:16:57.590
but but I just I think we have to dowas things are moving too fast.

01:16:57.590 --> 01:17:00.440
We have to reach out there and ayoung man. I came up and said

01:17:00.440 --> 01:17:04.170
how you gonna keep people and Isaid to show that then you can

01:17:04.170 --> 01:17:07.630
make a uh you know you gotta doyour professional business from

01:17:07.630 --> 01:17:11.430
one of my time. That's the but butyou're also of this is your

01:17:11.430 --> 01:17:15.100
future in its didn't take long beforeyou are in charge. So you

01:17:15.100 --> 01:17:18.120
better damn get involved in it andthe says one way to do with

01:17:18.370 --> 01:17:25.310
you please. Tell me thank thepanel as Thank you. Boom..

