Vanguard Magazine

46 APRIL/MAY 2023 www.vanguardcanada.com T H E LA S T W O R D Continued investment in Defence is not only vital for safeguarding and growing our sovereign capability, but it's also crucial to filling the skill gaps that have been crip- pling innovation for some time now. The case for engaging entrepreneurial minds While funding is absolutely fundamental to ensure our nation's safety and the industry keeps moving forward, if Defence doesn't have the bandwidth or right partners to deliver upon the critical capabilities needed to get the job done effectively, everything comes undone. And as technology contin- ues to advance, we're seeing more of this unravel. This is in part owing to the external providers Defence has typically partnered with. Historically Defence has leaned to- wards engaging multinationals to deliver upon critical services, however it's a strat- egy that is now failing them more often than not. As our world continues to evolve so rapidly, multinationals are finding it harder to keep pace with changes in tech- nology, digital transformation, and market demand—they're simply not nimble or flexible enough. If Defence is to be successful at warding off potential threats and protecting our country's safety, it must contemporise its outsourcing approach and be more entre- preneurial in partnering with industry to achieve our sovereign's strategic outcomes. Providing greater opportunities for SMEs and non-traditional partners to deliver their services to defence is key to driving modernisation, innovation, and cutting-edge solutions. By engaging nimble businesses that are driving the digital evolution forward, namely start-ups and SMEs, Defence will be able to meet its strategic objectives a lot faster. The right start-ups and SMEs— those who have an intrinsic understand- ing of how Defence works—are very well placed to quickly and reliably deliver the critical services Defence requires, without compromising the integrity of operations or protocols. What's more, they can also provide Defence with important inroads into the corporate world and investors. But while Defence talks a lot about in- novation and entrepreneurship, it doesn't consistently encourage or adopt the right behaviours needed to drive this type of cul- ture. A reluctancy to challenge boundaries like budgets and permissions—along with being too comfortable with the old way of doing things—has instead cultivated a cul- ture of accepting that real digital transfor- mation within Defence 'just won't happen'. It's no secret that the most skilled and dynamic digital talent are attracted to well- funded SMEs and start-ups, rather than more budget conscious Primes. And it goes without saying that the most cutting- edge software solutions will be developed by this talent pool and these businesses. Despite the glaring obvious benefits of tapping into SMEs and start-ups to drive innovation, Defence decision makers re- main scared of contracting them—no mat- ter how well backed and talent rich they are—fearing that if something were to go wrong, their reputation could be damaged. Primes on the other hand, present much less risk, despite the little reward they bring when it comes to digital innovation. Collaboration barriers High procurement barriers can unfortu- nately hamper a start-ups ability to thrive. The innovative nature of start-ups means they are often creating capabilities that do not yet exist and therefore in theory, Defence has no stated requirement for the tech. Without a partnership, the start-ups take on all the financial risk in many in- stances. While procurement rules are in theory required to ensure taxpayer's money is used appropriately, in practice they greatly hinder entrepreneurship and do not allow Defence to make advancements in neces- sary areas and often effectively incur high- er cost and delay to keep our country safe from real threats such as cyberwarfare. I'm not suggesting it is easy for Defence to adjust strongly embedded processes to take advantage of the opportunities start- ups and SMEs have to offer, but it is neces- sary regardless. Establishing a partnership ecosystem that considers start-ups and SMEs to be viable and valuable will require a mindset shift across the entire industry. Until Defence practices the innovation it preaches and adapts its rules and culture to reflect the uncertain times we live in, prog- ress will continue to be hampered and we will remain vulnerable to outside threats. The only way we can compete with the rest of the world is if we get serious about collaborating with the best entrepreneurial minds. Mark Fortugno, CFO, WithYouWithMe While procurement rules are in theory required to ensure taxpayer's money is used appropriately, in practice they greatly hinder entrepreneurship and do not allow Defence to make advancements in necessary areas and oen effectively incur higher cost and delay to keep our country safe from real threats such as cyberwarfare.

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