Caught in the Net: Lessons from the Financial Crisis for a Networked Future

Abstract

Since 2000 the Department of Defense (DOD) has committed itself to implementing a vision of the future of combat usually referred to as Network-Centric Warfare (NCW). This vision, as described by the Office of the Assistant Secretary of Defense for Networks and Information Integration, holds that robustly networking the force will improve information sharing, collaboration, and shared situational awareness. The DOD has invested considerable resources in its efforts to develop and implement NCW despite criticism from within and outside the armed forces. Much of the inspiration for NCW came from the business world, particularly the technological and organizational changes associated with information technology. These business roots have been a source of ammunition for NCW's critics, who argue that, at least when it comes to operations, "uncertainty in war makes business and war incompatible." Business and war certainly have significant differences, but this critique is simply incorrect. Uncertainty is a major factor faced by businesses and militaries alike. Both compete with rivals to survive, innovate to improve their performance, and act despite uncertainty, risk, and information scarcity. These similarities are pronounced enough that, when they are correctly adopted, ideas and theories from the business world can provide insight on many issues facing militaries, including operational and strategic ones. The fact that business ideas can help militaries, however, does not necessarily strengthen the argument for NCW. The current financial crisis was caused in part by pervasive mistakes and misjudgments in the financial world.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Jun 01, 2009
Accession Number
ADA538611

Entities

People

  • Gautam Mukunda
  • William J. Troy

Tags

Communities of Interest

  • Autonomy
  • Biomedical
  • C4I
  • Energy and Power Technologies
  • Engineered Resilient Systems
  • Ground and Sea Platforms
  • Weapons Technologies

DTIC Thesaurus Topics

  • Aerial Warfare
  • Command And Control
  • Commerce
  • Computer Simulations
  • Control Systems
  • Department Of Defense
  • Errors
  • Information Systems
  • Judgment
  • Money
  • Political Science
  • Risk
  • Risk Management
  • Security
  • Simulations
  • Situational Awareness
  • Warfare

Readers

  • Economics
  • Joint Military Operations and Doctrine.
  • Military History of the United States in the 20th Century.