Public Private Business Models for Defence Acquisition

Abstract

The purpose of the reported research was to study, analyse, and evaluate Business Models (BMs) regarding how they can handle the new supply concept that a new logistical interface brings about, with a particular emphasis on the risk taking that is part of the business concept. Based on an extensive literature review, a generic Public Private Business Model (PPBM) for defence acquisition was initially created. In the next step, a multiple case study was performed in the UK. The PPBM was instrumental in discovering internal and external misalignments. The internal misalignments are PPBM configurations where the building blocks are working against each other. The research has revealed examples where the mitigation of operational risk in the supply and support chains creates new risks in other building blocks. An external misalignment occurs when a PPBM configuration works against, for example, the strategy that it is intended to implement. The research has revealed examples where there is a risk that the PPBM configuration is detrimental to the overarching strategy, for example, transferring risk to the private sector or incentivising industry to enhance performance. Hence, the PPBM ought to be useful to identify and eradicate negative patterns and to identify and reinforce positive patterns.