Insight

Transforming the Defense Technology Market

Valtteri Vuorisalo and Jari Mielonen

The defense technology market is undergoing a significant transformation, with the role of civil society and civilian technology becoming increasingly important. What kinds of opportunities and new public-private partnerships does this market shift open up?


This article is a summary of Unikie’s
15-minute technology podcast. In the intro episode, our guest is Jari Mielonen, Unikie’s Vice President of Defense & Security Business.

The ongoing shift in global power politics and various emerging crises around the world are rapidly transforming the traditional defense industry. The role of digital technology in defense is increasing, as is the role of the private sector and civil society in developing tomorrow’s defense solutions.

For example, NATO’s Multi-Domain Operations doctrine empowers the alliance to synchronise efforts also with external, non-military stakeholders. With the greater focus on civilian technology, many companies are now evaluating their position in the transformed defense technology market.

 

Finding New Ways of Working

Traditionally, many new technologies, such as the Internet, have originated from the public defense sector. This has now turned upside down, as more and more innovations come from commercial operators. This calls for new ways of working and cooperating between the public and private sectors.

“We need new models that enable innovations and a culture of experimentation while still complying with regulations and legislation,” says Jari Mielonen, who has a track record of acting as the CEO of two Nasdaq-listed companies and working with the strategic partnerships for the Finnish Defence Forces, for instance.

Publicly listed companies have to provide quarterly reports where the companies share their outlook of how the future looks for them. At the same time, the Defence Forces plan their roadmaps years, even decades ahead.

“The more understanding the companies have of these roadmaps, the better they can develop their own competencies to support their customers. I advise everyone to prepare and look to the future, as today the world changes at faster cycles,” Mielonen continues.

 

Working Horizontally, Leveraging Data

Traditionally, the defense sector has worked in silos. Going forward, a horizontal approach is needed, as underlined by the NATO Multi-Domain Operations doctrine.

“Unikie wants to be a disruptive actor who horizontally breaks silos – in a positive way. We want to challenge traditional models in cases where new technology enables new capabilities,” Mielonen outlines.

One of the most important issues is how data will be utilized. The defense sector can learn from the private sector on how data models are used to make operations more efficient.

“We can talk about sensor fusion, as modern fighters are essentially flying sensor platforms.”

In order to effectively support operational missions, the massive volumes of data must be integrated and processed in real-time, using cloud-based computing, referred to as Combat Cloud.

 

Modifying Civilian Technology to Defense Use

The term dual-use products refers to goods, software and technology that can be used for both civilian and military applications.

In order to make civilian technology usable in the defense sector, the products must be “hardened” by adding a layer of security practices and cybersecurity. For this, Unkie is well positioned with its specialisation in embedded development, for instance.

“I firmly believe that the faster adoption of dual-use products in several NATO countries, for example, will increase in the future. In the past, we developed more country-specific solutions – that will now change,” Mielonen predicts.

The international defense community pays close attention to what is happening around the world, especially in Ukraine.

“What personally intrigues me the most, is the diversity of technology and how we can make private sector solutions work in the defense sector. It’s all about connecting new technology with traditional capabilities.”

Watch the full podcast with English subtitles below.

 

 

Read more about Unikie’s expertise for Defence & Security

 

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