No problem.
We all recognize that DND is a large and complex organization that operates in a volatile, uncertain, dynamic and ambiguous world. DND can't approach these realities in the same way as was the case in the past. Speed of innovation is paramount, and I would say that continuous innovation is paramount. There is a need to constantly revisit, first, the concept of operations, because what worked yesterday won't work today; second, the processes and procedures to more effectively and efficiently do what needs to be done; and, third, the people, principally their skills.
Programs are very inflexible in how they are phased and delivered. Changes create perceived scope creep and risk to schedule and budgets. This is extremely unsuitable to bringing digital technologies into the department. We recommend an approach where requirements and solutions can naturally adapt to the need for new operating concepts, procedures and the skills of people in order to harness new digital technologies towards continuous innovation.
Programs are discouraged from leveraging each other. Programs are mandated to deliver against their own sets of requirements, and incorporating someone else's puts their metrics at risk. It also creates an environment of “not my problem”. We recommend an approach that fosters horizontal integration of technologies where synergistic effects can lead to vast value to the department.
Introducing digital technologies is quasi exclusively restricted to large defence contractors. Innovation is stimmed and precludes small and medium-sized businesses from contributing. Similarly, defence personnel find ways around the process to innovate. While solving local problems, these innovations introduce tremendous risks, particularly security risks. We recommend standardizing on a digital technology platform that permits all the members of the ecosystem to innovate within a well-managed governance framework.
Now I'll go back to the second point around procurement, and I will bring an example. Digital technologies can streamline procurement processes, enabling National Defence and the Canadian Armed Forces to better manage portfolios for horizontal integration, including de-risking major projects, enhancing transparency and accountability, identifying cost-saving opportunities by analyzing spending patterns, optimizing inventory and, ultimately, negotiating better contracts.
More importantly, digital technologies will also allow the department to integrate with other defence systems and data sources, providing a holistic view of procurement and supply chain operations; to monitor and evaluate the effectiveness of these processes; and, lastly, to leverage training and support services to ensure that defence personnel can effectively use the technology to drive procurement reform and unlock additional value.
Today, Canada's defence industry is affected by risk, complexity and diversity, regionally and nationally, coupled with dynamic changes in overall economics and constrained budgets. Multi-faceted and complex procurement processes are adding further burdens and delays in the implementation of efficient mission-critical operations.
I'll speed up, Mr. Chair.
Over the past—