Open for Business: Business Models for Innovation with Modular Open Systems Approaches

Abstract

Modular Open Systems Approaches (MOSA) build on techniques used in the commercial world to attempt to bring innovation, speed, and savings to Department of Defense (DoD) acquisition. However, while competition can be a powerful motivator, MOSA can be disruptive to those traditional defense industrial base business models that rely on the expectation of long-term production and sustainment revenue to make back corporate investments. This project undertook interviews and surveys to better understand how MOSA influences vendor incentives and what business models may best serve DoD needs going forward. MOSA’s promise of enabling faster technology refresh and bringing in new sources of innovation addresses technical and operational challenges associated with 21st century great power competition and longstanding DoD difficulties in accessing commercial technology. This project has identified three overarching challenges regarding MOSA adoption: communicating and demonstrating government commitment; developing a MOSA-enabled IP and data rights strategy; and establishing standards and interfaces. In addressing these three challenges, the government will need to employ its acquisition toolkit to take different approaches with different vendors. To better understand how to make this transition a success, this paper presents a framework for evaluating the DoD’s readiness for MOSA.