Security needs have traditionally been the driving force behind many technological innovations, but today this relationship has become reversed. The production of technology has become easier and more accessible, shifting the technological cutting edge from state-funded institutions to the general public. Civilian technology companies have begun to flood the market with innovations at an ever-accelerating pace.

However, the existing method of technology procurement in the IDF is causing our weapons systems to lose their qualitative advantage. The phenomenon of private donations for procurement of civilian technologies for the IDF, which became widespread during the Iron Swords War, points to the need to renew existing methods in order to preserve military superiority. In recent years, the IDF’s force-buildup programs were oriented to deepen its “smart” advantage. However, procurement processes were not adapted to the new realities of the rapidly developing technological market. As a result, instead of a “small and smart army,” we have ended up with a small army that is nevertheless not at the forefront of tech.

The procurement processes themselves have largely remained unchanged: while most of the technological development world has shifted to rapid, lean, and agile methodologies, the IDF continues to manage most of its development projects exclusively through the Waterfall method. This process is characterized by excessive centralization, a lack of flexibility, and an incentive structure that does not encourage the adoption of innovations at the field level. For force buildup to succeed, the system of interactions must be designed so that the best technologies are selected for use and disseminated regardless of where they were developed, and norms of rapid, relevant adoption and learning are established.

The proposed policy will improve procurement processes by focusing on four areas:

Decentralizing processes – There is a need to decentralize the procurement of off-the-shelf products and to add short-cycle procurement channels in the hands of the end user. Procedures must be adapted to the fast-paced world of innovation by updating the language, methodologies, and work processes in line with a market that dictates the tempo.

Decentralizing information – The pace of action is largely determined by the organization’s communication systems. Policy should promote a technological and behavioral shift in which the preferred communication is digital and asynchronous. Such a change has practical implications for faster feedback loops and soft implications for connecting and engaging partners.

Resource allocation mechanisms – The current allocation of resources creates incentives that encourage waste and harm projects. Budgetary oversight must operate according to four principles: transparency, certainty, flexibility, and effectiveness. A system is needed that encourages maximizing resources for operational value.

Human capital – This area requires technological, business, operational, and human understanding. The quality of training for force-building officers must be improved, and their assignments extended so they can gain experience and master the profession. Additionally, the incentive structure for personnel should be managed to encourage actions that are operationally and technologically sound. Employment frameworks should also be diversified and expanded so that the military system can benefit from the high-quality human capital available in Israel’s technological sectors outside the army.