Earticle

Open innovation is a new managerial strategy to maximize the efficiency of processing commercialization and research and development for new services or goods by making the best use of internal and external resources available to the organization. The Korean government has been trying recently to apply open innovation to military organizations in an attempt to enhance the competitiveness of the national defense industry against the fast-paced development in high technology and the rapidly changing future battlefields. This study intends to encourage the movements to apply open innovation to firms in the Korean defense industry. It analyzes both the current activities of open innovation and the characteristics of the firms in the defense industry in order to provide several theorems related with the scientific technologies of national defense. Theorems and their interpretations are expected to contribute to suggesting guidelines for the Korean government to establish various policies and support the wide implementation of open innovation in the Korean defense industry.

The complexity and technology of the weapon system have driven significant increases in defense weapon acquisition budget, thus transparency and efficiency of the budget has become highly significant. For this reason, cost analysis is crucial in appropriate creation and efficient execution of the defense acquisition budget. The gap between current and future technology maturity level strongly affects R&D cost. When estimating domestic R&D cost, technology maturity is usually reflected by the complexity index of commercial cost estimation models. Good thing is the objective application of complexity index can be limited because it can be subjective and its application logics for R&D cost estimation are not released. This study proposed a method using local R&D experience and technology maturity data to analyze technology maturity calibration factors, and this can be highly useful when estimating R&D cost in Korea. In this study, we discussed certain international studies on the relation between technology and cost, and we compared them with our proposed methodology. Also, we calculated the technology maturity calibration factors using domestic R&D data.

This paper describes the architecture and operation concept of simulation environment (AddSIM: Adaptive distributed parallel simulation environment based on interoperable and reusable models) to enhance the interoperability and reusability of models. The simulation environment makes it possible to search and use component-type models stored in local or remote resource repositories, which enable users to assemble or reconfigure models by plug-in and play style easily. To improve the reusability, interoperability, and composability of models, the concept to separate a model from a simulation engine is applied and the standard structure and modeling framework of models are presented. This proves that a model can be developed independently and linked with a simulation engine using API.

The local defense industry is being well supported by government policies and local institutions until the abolition of specialization and integration in systems and competition in the domestic defense market began. These changes in company organization improved their efficiency and productivity. The purpose of this study is for the defense industry to cope with the changing business environment. Basic data must be provided to properly assess the company's operating efficiency and thereby improve the management of inefficient parts. Also, the biggest difference of this study compared with previous studies is that it evaluates the process effectiveness by taking advantage of fuzzy probability. In other words, to increase the reliability of analytical results representative of the input data, general analysis method was performed, and at the same time, the data model to include the uncertainty of the Fuzzy-DEA analysis was conducted. The scope of the study intended for communication electronics companies were limited. In this research, exact data is needed to evaluate the relative efficiency of companies and improve its efficiency.

Nowadays, the performance evaluation of R&D activities to yield fundamental information for the effectiveness of decision-making on R&D investment has become important since the government budget is limited. This article suggests a hybrid type of evaluation model (i.e. qualitatively weighted quantified model) that makes up assessment of both quantitative and qualitative R&D performances in the Korean defense industry. The model tries to combine a DEA (Data Envelopment Analysis) methodology that uses a well-known quantitative measure for technical and cost efficiency of a number of DMUs (Decision Making Units) and an AHP (Analysis Hierarchical Process) method that helps discopose the qualitative evaluation problem into a hierarchical or more easily comprehensible sub-problems. Weight is measured for each qualitatively evaluating hierarchy by a survey targeting defense industry experts, researchers, military specialists, and planners. Technical and cost efficiency of a DMU are relatively calculated by comparing differences in efficiency across all DMUs while the importance of each quantitative measure is weighted. We verified the suggested model by practically evaluating 7 major companies in the Korean defense industry.

In this study, we proposed an architectural concept for Database Switching Architecture Based Distributed Simulation Service for combat aircraft training simulators. Training simulation service data is provided by the database switching architecture, and flight simulation environment data is provided by the Database Switching Architecture Based Distributed Simulation Service. In the LVC Training Environment, integration and interoperability are two very important factors for the Distributed Simulation Service. By the suggested Architecture Concept, each training simulator can get data from the dual database by accessing the online Data Base Switching Architecture Based Distributed Simulation Service. The suggested architecture concept will be helpful to the LVC environment and training simulation.

Selecting the best supplier in weapon systems research and development(R&D) is one of the most important steps for program success. The R&D program is awarded to the company considering both the firm’s technology capability and pricing. The government uses Negotiation Process (NP) to select the best supplier. So, we need a systematic approach in negotiation to select the best supplier. The purpose of the paper is to use and analyze the NP using game theory that is being used widely in various areas. The paper says that NP in weapon systems R&D has many problems to be solved for efficient and successful program management. These problems are as follows: limited time, confusion in economic acquisition, poor preparation of strategies and alternatives, poor analysis of the company, excessive focus on short-term outcome, and poor methods in making sure of satisfactory performance. This paper shows that game-theoretic approach can aid in preparing for negotiation, setting up strategies, and analyzing the environment and results of the NP. Currently, there already are existing data that proves that the game-theoretic approach (equilibrium) can be useful in analyzing the NP. Based on the study adapting game theory, this paper proposes many alternatives to improve the NP in weapon systems R&D. These alternatives include the necessity of setting-up effective strategies before negotiation, flexibility to change game rule, adoption of multi-suppliers, and so on. This study contributes in a systematic approach toward successful NP in weapon systems R&D. In addition, this study can be applied to various areas such as non-weapon systems R&D and core technology R&D.

KSS-Ⅲ project, a 3000-ton-class submarine development project, is a key part of the Korean Navy's modernization programs. The contract of basic design for KSS-Ⅲ project was awarded in 2007 and work is being carried out by the joint Daewoo and Hyundai submarine design team. The lead ship construction of the class is scheduled to start in 2012. According to Defense Project Regulation of Defense Acquisition Program Administration, companies that carry out basic design will sign a contract with the Government for construction of the lead ship. The purpose of this study is to propose the most reasonable joint contract type to apply to KSS-Ⅲ project. Joint contract refers to the type of contract where a party is comprised of two or more persons. There are three types of joint contract. First, a joint performance type is where contractors pool resources, funds, personnel, and materials to perform the contract and divide the proceeds accordingly. Second, Apportionment performance is where each contractor is given responsibility for performing particular sections of the construction, and each contractor is responsible for all costs related to such performance. Third, main contractor performance is where contractors select a main contractor who is responsible for planning and operation the entire performance. The Main contractor is responsible for the performance of all; other contractors under the contract are only liable for the portion of the contract. We reviewed the three types of joint contract according to several standards: legal applicability, subcontracting management, quality management, and recognition of construction performance. Our conclusion is that joint performance is the most suitable contract type for KSS-Ⅲ lead ship construction project.

The purpose of this study is to identify the problems arising from the R&D process of the current naval ship acquisition program and to suggest better policy alternatives. Research findings show that inefficiencies occur often in the normal R&D process, and this affects the naval ship design and building works due to the lack of the technology management personnel, defense budget, R&D-related infrastructure, and so on. To ameliorate these, it is necessary first to strengthen drastically the function of the Requirements Planning & Concept Design. Second, problems arising from the R&D Process of the basic and detailed design stages must be improved. Third, schedule delays in naval ship delivery must be improved, and task duplications between trial run and operational test and evaluation (OT&E) in the shipbuilding and test and evaluation stages must be remedied. These alternatives must be reflected institutionally into the 'Defense Power Development Task Directive' and 'Defense Program Management Regulation.' It will be helpful for the Navy to enhance efficiency and effectiveness in conducting naval ship design and building works.

We have studied and established a way to implement TLCSM metrics. In this report, we suggested a method in selecting and applying TLCSM metrics according to the project characteristics and scale. The Project Manager should manage these metrics in accordance with Material Solution Analysis to Operation and Support Phase. By playing a role as a coupler between acquisition and operation and support, these metrics will help PM to assure that all the sustainment requirements are met. This study contributes to increasing the readiness of combat weapon systems and reducing total ownership cost.

This study aims to explore the sources of export competitiveness of Korea’s defense industry. Considering circumstantial factors, the defense industry, which is influenced by international politics, military, and socioeconomic matters, conveys very complicated and eclectic characteristics. Therefore, evaluating one specific aspect of the industry cannot provide a comprehensive assessment of the industry. In this regard, this research adapts 'Porter’s Diamond Model' as a theoretical framework to evaluate export competitiveness in a more comprehensive and strategic way. According to the model, improvements in indigenous science and technological capabilities will facilitate Korea’s pursuit of export competitiveness for its defense industry. After analyzing these problems, this paper suggests various policy implications for enhancing the export competitiveness of the defense industry. Together with the model, the study uses mainly extensive literature reviews due to limitations in reliable sources in the Korean defense industry.

As Korea plans to achieve US$ 5billion in defense export by 2014, there are still many challenges Korean defense companies have to overcome to increase their market share in the global aerospace and defense markets. As countries with far more advanced defense industry have decades of global defense business experience, Korean defense industry will need to continue strengthening its ability to penetrate the increasingly more competitive global market. Furthermore, as defense export is also a business that each seller country government must provide full policy support, there needs to be more effort by the Korean government to help its defense industry overcome various challenges in the global market. On this paper, we propose that Korea’s success in the global aerospace and defense markets will require a combination of factors including: understanding the market trends and opportunities, developing a strategic approach to succeed in response to emerging procurement trends, and developing the right international processes, including Reciprocal Defense Procurement Memorandum of Understanding (RDP-MOU) with the United States, and teams. With forethought, proper preparation, and long-term commitment the Korean defense and security sector can become a new leader among the nation’s export sectors.

The results of flight and HILS (Hardware-in-the Loop Simulation) tests show that the performance of developed flight control system is very xcellent. This paper presents the development of flight control system for the close range surveillance UAV. The developed flight control system consists of both hardware and software such as system software, flight operation software, and flight control/guidance software. The function of flight control system includes normal flight mode such as stick auto, knob mode, point navigation, pre-program mode, and emergency mode like command loss. In addition to that, the flight control system includes advanced functions such as dual redundancy, fault tolerant control surface and navigation, flight envelope protection, vision based auto recovery, etc. The results of flight and HILS tests show that the developed system possesses performances suitable for the purpose of close range surveillance.

The purpose of this study is to introduce the effective and logical approaches for estimating acquisition costs using analogy method. In order to apply analogy method, proper factors or rates to compare with similar systems have to be defined. However, it is often difficult to acquire these rates from historical data of similar weapon systems. In this study, we suggested a more accurate model for estimating acquisition costs by including domestic research & development cost and foreign purchase price. To find out the appropriate development cost of the target systems or sub-assembly level, we introduced a cost adjustment coefficient using PRICE model. PRICE, a computer-aided parametric cost analysis tool, analyzes and shows the development, production, operation, and support costs for a particular weapon system. Secondly, we suggested another way to estimate reasonable purchase price using regression analysis with recognized leading price-drive variables such as specifications and performances. Finally, we applied the proposed method to an actual missile cost analysis project, and showed the result. The proposed method was proven to be useful in estimating the acquisition cost and purchase price.