Reprint: R0409B
A $200 billion market has appeared on your business horizon, but you may not have noticed it. It’s the U.S. military—the new U.S. military.
Virtually all aspects of the military are changing to ensure it can fight unpredictable threats while sustaining the infrastructure needed to support and train forces. The military is turning to nontraditional business partners to meet a wide range of needs, from health care to housing to information technology. The Defense Department is yielding its monopoly on every aspect of national security and adopting a more businesslike model in which the military’s warfighting capabilities are supported through outsourcing and business alliances.
Civilians are replacing military personnel in many noncombat roles. Military functions with corporate equivalents are candidates for outsourcing and privatization. Market standards are replacing the heavy customization that has locked many companies out of this marketplace.
The authors have participated in the transformation process from different perspectives—one civilian, the other military. Together, they highlight the prospects that transformation is creating for companies outside the traditional defense industry and reveal paths to success in this complex market. They also present six principles for doing business with the military that require persistence, integrity, and a willingness to master the intricacies of a distinctive culture.
By understanding the logic of military transformation, executives can identify and create vast new business opportunities. And by mastering the six principles, they can build profitable long-term relationships.
