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Consumerization of the “Aerospace & Defense” industry will dominate this era of business

I would put my capital into the folks from the US, European and Israel’s defense communities to create then next great wealth creators and they know what their mission is. After all, they were trained from the word go to do, profit was a derivative, it is just their passion to lead and execute is what makes the difference.

When you invest, ask who in the room understands C4ISR and what all the 3 letter agencies do? With the answer you have just de-risked your investment and have a team who will compete to make a difference.

This is the beginning of the next era of computer classes for the coming decade and that is based on “Networked Sensors” being commoditized from being embedded into mobility via phones, people, things, automobiles to everything imaginable. Why?

“Definition: Roughly every decade a new, lower priced computer class forms based on a new programming platform, network, and interface resulting in new usage and the establishment of a new industry.”    http://en.wikipedia.org/wiki/Bell’s_law_of_computer_classes

The logic is simple.  Gilder’s Law of Winner’s Waste.

“The futurist George Gilder wrote about this a few years ago in a Forbes publication. The best business models, he said, waste the era’s cheapest resources in order to conserve the era’s most expensive resources. When steam became cheaper than horses, the smartest businesses used steam and spared horses. Today the cheapest resources are computer power and bandwidth.”     http://www.forbes.com/2005/04/21/cz_rk_tenlawslide_5.html

This era’s cheapest resources is the bandwidth and the ability to commoditize sensors that have been around for the last 50 years evolving everyday in the military whose competitive advantage was how SIGNIT, GEOINT, C4ISR, MASINT, HUMIT, et al in combination was a force multiplier in a battlefield and theatre warfare.  This example below from GE Intelligent Platforms’ Situational Awareness products.

Screen Shot 2013-09-17 at 10.32.20 AM

 

http://defense.ge-ip.com/applications/situational-awareness

Looking at what’s around the most complex challenging opportunities that everyone’s trying to solve to name a few to generate an incredible ROI from greater inventory stock turns, least Cash Conversion Cycles and greater Operating Margins in EBITDA?

* mCommerce for the First Mile of consumer

* Sensors in Mobile platforms – Mobile Phones & Autonomous cars

* Quantified Self

* Industrial Internet

* Wearable Healthcare

to name a few.

All of this is around how to combine demand-supplychain optimization in markets via Command, Control, Communications, Computing, Information, Surveillance & Reconnaissance with Analytics (HUMINT)? All of this is what the military doctrines are and where the competitive advantage lie and have been since the end of WW2.

This is why all the expertise and skills lie and will come from the closed and small social networks of folks in the defense and military. This is where the real advantages lie, veterans, engineers, designers, sociologists, product managers, et al, all from this incredible interdisciplinary background that has the ability to solve the next decade of opportunity and beyond.

Screen Shot 2013-09-17 at 10.57.00 AM Screen Shot 2013-09-17 at 10.56.36 AM

Some small examples below from InQTel to Palantir to Talpiot to the US Navy Cyber Forces.

http://www.forbes.com/sites/andygreenberg/2013/08/14/agent-of-intelligence-how-a-deviant-philosopher-built-palantir-a-cia-funded-data-mining-juggernaut/

http://online.wsj.com/article/SB118368825920758806.html

http://www.nro.gov

https://www1.nga.mil/Pages/default.aspx

http://blogs.wsj.com/cio/2013/09/10/brazil-riots-predicted-by-u-s-intelligence-research-project/?KEYWORDS=predicted+brazil+riots

http://www.forbes.com/sites/andygreenberg/2013/08/14/agent-of-intelligence-how-a-deviant-philosopher-built-palantir-a-cia-funded-data-mining-juggernaut/

http://www.thedailybeast.com/newsweek/2009/11/13/soldiers-of-fortune.html

http://sg.finance.yahoo.com/news/want-top-notch-startup-sector-012034251.html

http://ticker.baruchconnect.com/article/start-ups-founded-in-israel-attract-global-interest/

http://online.wsj.com/article/SB125200842406984303.html

http://www.ft.com/cms/s/0/d45b0c5c-1a83-11e1-ae4e-00144feabdc0.html

http://www.businessinsider.com/best-tech-school-is-israels-unit-8200-2013-8

Now you know what to look for in a team for this era and the ones with a background in the defense industry and the military will play a key role in this era of wealth creation. So whether you are a CXO, startup, VC, PE, team member or a large corporation who wants to understand how to compete starting now impacting key stakeholders from employees to consumers to shareholders. Stop and look for people who can make it happen. Or just acquire these startups or companies doing just that, it will be capital well spent with a clear ROI.

 

 

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