Select Committee on Defence Minutes of Evidence


Examination of Witnesses (Questions 540 - 542)

TUESDAY 28 JANUARY 2003

MR DAVID GOMPERT AND MR BILL ROBINS CB OBE

Mr Roy

  540. Briefly, on costs, do we expect costs to be more expensive, less expensive, or cost-neutral, when we consider network-enabling assets in the future?
  (Mr Gompert) I can give you a very general answer to that. We know that the costs of information technology have been coming down very rapidly in general. In the military field we have not seen the costs of systems come down, even though those systems depend increasingly upon microelectronics and other types of information technologies, but I believe, with smarter procurement, we will begin to see, in military systems, particularly information-rich military systems, the benefits of the declining costs of information technology generally. So the greater the role those technologies play in our systems, and in our capabilities as a whole, you would expect that there would be a natural cost reduction force in play. By the same token, because of these technologies, we may be able to reduce force structure, reduce end strength, or at least allow our forces to continue to decline in their total size, even as their capabilities improve. That would reduce the cost burden of an element that is becoming increasingly expensive, ie people. So a future force which has more information technology and maybe fewer people, but people who are better able to function effectively with those technologies, in the steady state, ought to be a highly cost-effective force.
  (Mr Robins) I think I would merely add that when Accenture, or CSC, or EDS, do an analysis of a big enterprise they offer cost reductions normally as the payoff for investing in technology, and those cost reductions are achieved really as a result of better operations, more focused operations, more effective operations. I think, in the teeth of the sort of defence cuts which we have been seeing, despite the advent of the SDR New Chapter money, I believe that network-enabled capability offers the UK Armed Forces a chance to regain effectiveness, which should not have been lost in the first place. I do not see much scope for cost reductions in this. I believe that what we are trying to do is make the sometimes paper-thin capability, which we have been left with in our Armed Forces, into the sort of reality that it should be.

Patrick Mercer

  541. What more should the UK be doing to embrace these opportunities?
  (Mr Robins) I would say, it comes back to the point that both David and I made at the start, to understand that network-enabled capability is not a technology thing, purely, it is dealing with the total enterprise, and therefore to understand how the acquisition process to bring this sort of stuff into service, taking into account Mr Rapson's point, it has to be more responsive, it has to allow innovation; and if it is going to do that then more attention has to be paid to the acquisition cycle at the early stage. You will be familiar with the terms "main gate" and "initial gate" and the "acquisition cycle". The metrics with which we are measuring smart procurement and showing that it is doing UK forces a lot of good tend to start at main gate. What we have not done is looked at what happens before main gate, at the concept phase, when we are starting to see where this thing fits together, where we are starting to look at the risks of the programme, and the assessment phase where we are actually focusing much more on those aspects. And I believe what we have to take into account is the fact that we are not just dealing with equipment and technology, we are dealing with people, with training, with development, with concepts and doctrine and sustainment, and look at the entirety of this process and have a much more holistic view, really, of the equipment as it is coming in, in its relationship to those other lines of development, concepts and doctrine and sustainment, etc., and to other pieces of equipment, and we can only do that with the sort of approach to simulation and modelling that I illustrated earlier. That has really to be amde a more formal part of the early phase of acquistion.
  (Mr Gompert) May I add to that, exercises, especially exercises with the United States, that really challenge these concepts of operations, really challenge the grid, you want to find short-comings, deficiencies, imperfections, not only in the way we operate as two countries trying to operate together but in the systems themselves. Because it is absolutely right that this has to be viewed in a holistic fashion, and the only way you can do that ultimately is in an operation, and the next best thing to an operation is an exercise. And then down the ladder you get into simulations and models, and so on. But I think that the more intimate the co-operation is between the two uniform militaries, in concept development, experimentation, modelling simulation, exercises, including real exercises in which you are really pushing the command and control system as hard as you possibly can, the better for both countries, it is going to be good for our ability to operate together, and ultimately good for pulling along the rest of the alliance.

Mr Crausby

  542. Back, to some extent, to Mr Gompert's points earlier on, about British motivation in comparison to our allies. Do you want to say something about what your assessment is of the debate about which allies will keep up; and could any sub-state groups benefit from network-centric capabilities?
  (Mr Gompert) Just in terms of our closest allies, European allies, that is, the motivation that still seems to occupy many of them, including Germany, is to be able to deal with stability operations, meet the demands of stability operations, in and near Europe, and to be able to do so even if the Americans do not participate. That is sort of the post-Kosovo definition of what the European initiative is about, we need to be able to deal with the problems we face here in Europe, even if the Americans are not involved. That is a worthy objective, to be sure, but it is not an objective that is going to drive transformation. It is not going to present those who are faced with that objective with the kind of demands that currently are pushing the United States and the United Kingdom to transform their forces to implement network-centric operations, and so on. So as long as any of our allies feel that the purpose of their forces and the uses of those forces are limited to conducting stability operations in and near Europe, I think they will not have sufficient motivation to make the necessary investment and to change the way they operate and to change the way they organise their forces. I have just sort of given you a caricature of Germany, but it is one I would stand behind. As for non-state actors, they could very well move in this direction. There is really nothing crtical about scale. It is a coincidence that the United States happens to be the largest power and is doing this. As I tried to indicate earlier, I think in many facets the United Kingdom will move as quickly, if not more quickly, with some of the concepts, and maybe even some of the technology applications, precisely because it is not so big. So I do not think scale really matters here. It helps to be aligned with a country of great scale, a country that, in any case, will have these technologies. But I also see great opportunities for trouble as smaller units, smaller organisations, like al-Qaeda, take advantage of networks. In fact, they already have taken advantage of networks to be able to arrange their finances, to acquire skills, to plan, and so on. In fact, a great deal of work at RAND has been about how we need to develop network concepts to respond to network dangers, because a for adversaries like al-Qaeda, that is pretty much what they have got going for them, in addition to the ability to concentrate damage on civilians. So networking is not in any way reserved for the advanced and the powerful and the good.

  Chairman: Thank you very much to you both; it was very, very interesting indeed. And maybe we will come back to you later on, if we have any further questions to ask. Thank you very much.





 
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