One of the things we agreed upon when we started BMNT was that we would hold ourselves publicly accountable for delivering on our promise to help make the world a safer place. In that light each year we've delivered to our tribe of co-conspirators in the innovation insurgency an assessment of what we accomplished as well as a brief glimpse of what we expect the next year to bring.
2. If 2017 was our breakthrough year, 2018 firmly established BMNT as
a recognized leader in national security innovation. Our proven
approach to problem-solving, H4X®, continued to spread across the
US Defense and Intelligence sectors as an effective, repeatable,
scalable and centralizing process for rapidly solving incredibly hard
problems.
The Congressionally-mandated Section 809 Panel, established to
reform Department of Defense acquisition, recommended our
approach as that which “should be used as a template for
modernization of the DoD requirements system.” We are changing
the way the government defines its problems in order to deliver
better solutions faster.
In August of last year, Inc.com recognized BMNT as one of the 1000
fastest-growing private companies in the US, with a three-year
growth of 600%. To meet increasing demand, we grew our staff by
41%. We carefully screen and train our team to combine creativity
with discipline, and to apply our expertise with the humility of quiet
professionals who know there’s always more to learn.
problem-driven innovation
Section 809 Panel’s “Report of the Advisory Panel on Streamlining and Codifying Acquisition
Regulations” Volume 2, June 2018, p. 60
¹
introduction
We grew as a team, and we also expanded our capabilities. We now
offer our customers and partners a full suite of products to support
their Innovation Pipeline. This includes everything from market
research and in-depth problem analysis to incubation and
acceleration services.
We built these new products in response to customer demand.
Despite their best intentions, large organizations are struggling to
keep up in a rapidly changing world. We see the potential trapped
inside and unleash it. There are massive opportunities to increase
the effectiveness and speed of the work already being done, while
finding ways to be more agile as the next wave of challenges
emerge.
And in 2018 we saw what our customers and partners are truly
capable of. Our early adopters are seeing amazing results. They’ve
infused their enterprises with a system that combines people and
problems, turning them into opportunities. Flush with success,
they’re bringing us more problems. And we couldn’t be more
excited.
Why do we want your problems? Because innovation at speed has
become a national priority and BMNT is a team of bright, engaged,
experienced people who are dedicated to making the world a safer
place. We welcome the hardest challenges to our doorstep, and we
won’t stop seeking them out.
21 BMNT 2018 | Mission Results
3. 43 BMNT 2018 | Mission Results
Solutions Tested
MVPs and
Prototypes Built
Government Offices
Reached
Problems Curated
Problems Sourced People Trained in H4X®
1185
11
2751
95
Commercial Solutions
Explored
909
469
by the numbers
2018
4. "Success no longer goes to the country that develops a
new fighting technology first, but rather to the one that
better integrates it and adapts its way of fighting.
Delivering performance means we will shed outdated
management practices and structures while integrating
insights from business innovation."
contents
— Fmr. Defense Secretary James Mattis, 2018 National Defense Strategy
what we do
how we evolved in 2018
where we are going in 2019
learn more about us
7
11
21
23
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5. "The government thinks static is secure.
But, in reality, change is secure."
— Air Force Warfighting Integration Capability H4X® user
We’ve created a unique “innovation operating system,” called H4X®, for
recruiting people, curating problems, testing solutions, and then adopting
what works.
We’ve observed that most organizations engage in sporadic and
disconnected approaches to problem-solving. We help organizations view
their activities through a five-phase, end-to-end process called The
Innovation Pipeline, to align decision-making and streamline efforts across
organizations, resulting in the rapid delivery of effective solutions.
BMNT GUIDES LARGE ORGANIZATIONS THROUGH A SYSTEM
TO SOLVE PROBLEMS AS FAST AS A START-UP
what we do
Source Curate Discover Incubate Transition
THE INNOVATION PIPELINE
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6. Using the Innovation Pipeline as our guide, we employ a comprehensive suite
of products and services to build customers’ confidence and capabilities.
Unique to the H4X® system is our emphasis on solving the right problem. All
of our customers experience periods of exploration and refinement along the
way.
H4X® leverages all the proven innovation methodologies through
The Innovation Pipeline. We help our customers apply the right tool at the
right time for each problem.
Source Curate Discover Incubate Transition
Design Jam
Discovery Workshop
H4X® Advanced Course
Lean LaunchPad
Beneficiary Discovery
Design Sprints
Curation Workshop
Exploration Workshop
Market Survey
3 Horizons
Root Cause Analysis
Extraction Workshop
DIB Lean Start-up
H4X® Basic Course
Lean Startup Course
Hackathons
Problem Sourcing
Experimentation Support
H4XLabs
Agile Engineering
Scrum
H4XLabs
Change Management
Refactoring
WE FACILITATE A CUSTOMER'S JOURNEY FROM PROBLEM
TO SOLUTION THROUGH A SERIES OF CONNECTED AND
DEPENDENT ACTIVITIES
PIPELINE-ALIGNED BMNT PRODUCTS AND METHODOLOGIES
109 BMNT 2018 | Mission Results
BMNT’S
PRODUCTS &
SERVICES:
SELECTED
METHODOLOGIES:
“At NGA, we have also formalized a lean innovation
pipeline model based on the work of [Steve] Blank,
[Alexander] Osterwalder, and Pete Newell of BMNT
[...because] agency innovators need a clearer
understanding of the means available to them and the
potential pathways they could take to move their
projects through this pipeline."
— Christina Monaco, Chief Innovation Officer
National Geospatial-Intelligence Agency
7. WE MATURED OUR PORTFOLIO TO DELIVER
BETTER SOLUTIONS, FASTER
We analyzed customer H4X® usage
to uncover opportunities for further innovation.
how we evolved
in 2018
• inform and orient innovation investment
• identify organizational trends
• bring together stakeholders with common problems
• centralize a repository for test and experimentation data
In 2018, we began to collate the rich data produced throughout the H4X®
experience and developed products for our customers to:
...all of which improves organizational knowledge management.
5 Problems
4 Problems
3 Problems
2 Problems
1 Problem
High Priority
Low Priority
Goals
Processes
PROBLEM ANALYSIS OF CLIENT GOALS AND PROCESSES
1211 BMNT 2018 | Mission Results
8. We refined our approach to market research
to focus on understanding how non-traditional partners like start-ups,
academic institutions, individual entrepreneurs, and laboratories can be a part
of the customer experience.
We are now providing a more comprehensive ecosystem landscape that
addresses all aspects of a client’s problem: the organization, the stakeholders,
the related technologies, and other customer groups with similar interests.
This significantly improves their tech scouting efforts relative to their hard
problems, which ultimately supports the development of better solutions.
We launched new products
to inform leadership decisions about what, where, and how to change an
organization in order to meet its innovation goals.
H4X® Innovation Pipeline Diagnostic™
A comprehensive assessment that evaluates an organization’s existing
innovation infrastructure against the recommended H4X® innovation pipeline.
H4X® Innovation Pipeline Strategy™
Based on the above, this lays out a roadmap for the organization to internalize
an accountable, scalable and repeatable innovation program.
We created two primer courses
to acquaint an organization’s problem-solvers to H4X®.
H4X® Basic Course
A 2-day H4X® introduction course to apply problem curation and validation to
government challenges and address solution development, testing, funding
and integration.
Lean Startup Course
A 3-day H4X® overview that offers any DoD agency an opportunity to preview
H4X® through our relationship with the Defense Innovation Board (DIB).
USER’S
PROBLEM
Academic Institutions
Related Tech
Hardware
Software
Laboratories
Stakeholders
OUR MARKET ECOSYSTEM LANDSCAPE MODEL "Honestly, I can’t say enough about the BMNT team.
They were able to bring a bunch of people together,
draw out the best ideas, navigate the treacherous waters
of rank and politics, and ultimately, deliver a killer
product for us. I’d do it again in a heartbeat."
— National Media Exploitation Center H4X® User
1413 BMNT 2018 | Mission Results
An
alogous proble
m
s
9. In March 2018, the Office of Naval Research (ONR) initiated an innovation
pilot, “Naval Innovation Process Adoption” (NIPA), to emphasize the
importance of a common innovation process and language to effectively
deliver technologies in a quantifiable manner.
NIPA seeks to establish an innovation process to accelerate capability to the
warfighter and leverage the commercial market and private investments to
reduce US Government acquisition costs for technologies having “dual-use”
applications.
BMNT facilitates execution of the NIPA pilot by:
WE VALIDATED AN ENTERPRISE-LEVEL
APPROACH TO INNOVATION
For three straight quarters we took on a new NIPA challenge, delivering:
• Developing and then teaching H4X® Basic overview courses across the
Navy to encourage the universal use of the Innovation Pipeline
• Facilitating quarterly challenges in areas of senior leader interest,
employing the full H4X® system. Early-stage testable solutions resulting
from these challenge areas, called Minimum Viable Products (MVPs), are
eligible for ONR seed funding to further their development and testing.
Completed H4X® Basic Course
Completed H4X® Basic + Problem Curation
Upcoming H4X® Training
NIPA Launch at NPS
750 People Trained across ONR
8 H4X® Basic Courses
3 NIPA Challenges
5 Minimum Viable Products (MVPs)
1 Deployed and Funded Solution
2018 NIPA EVENTS
“We are incredibly fortunate to have this partnership
between the Navy and world-renowned thought leaders
like Steve Blank and Pete Newell.
NIPA will start in one department of one Navy command
—but its principles could become a catalyst across the
fleet and force.”
— Dr. Richard Carlin
Department Head, Sea Warfare and Weapons Department
Office of Naval Research each in under 3 months.
to combat drone swarm technology
that mitigate the environmental effects of underwater sonar
MVPs in development
Funded MVPs in testing
that opens the acquisition process for non-traditional contractors
Deployed and funded solution
1
2
2
1615 2018 | Mission ResultsBMNT
10. Because of our unique perspective, we can bring customers together to develop
shared solutions far faster than the traditional government process.
The Defense Logistics Agency (DLA) was tasked with improving the
exchange of additive manufacturing (AM, 3D printing) data between the
Military Services. DLA leveraged H4X® to arrive at a shared solution currently
in initial testing: a lightweight web service to connect each Service’s existing
AM data (akin to an eBay for DoD AM data).
Concurrently, ONR is making investments to scale the use of additive
manufacturing in the Navy. It also has used H4X® to develop and test two
separate MVPs: one for end-users (“makers”) seeking to use AM for corrective
maintenance, and one to streamline the approval process needed to
additively manufacture parts.
We’ve since linked the two customer groups to connect their MVPs. The Navy,
along with the Army, will be connecting their repository to the DLA exchange.
Both DLA and ONR reached testable solutions in a matter of three months by
leveraging H4X®.
BMNT sourced and curated energy problems from installation managers
nationwide for DoD’s environmental technology demonstration and validation
program, which led to a more accurate government solicitation for energy
metering solutions. We then connected this client to ONR’s program
responsible for the development of potential solutions.
These solutions will save energy managers time and money otherwise spent
on poor monitoring capabilities.
Brokering these conversations among our customers increases the number of
tailored solutions for adoption into operations.
WE ORGANIZED COMMUNITIES OF INTEREST
AROUND COMMON PROBLEMS
Case Study: Additive Manufacturing
Case Study: Military Installation Energy
1817 BMNT 2018 | Mission Results
"There is no way I could have achieved
what you have this quickly.”
— Office of Naval Research H4X® User
"We've been trying to do this for three years and you
guys did it in two days!"
— Office of Naval Research Challenge Lead
11. WE GREW OUR STRATEGIC RELATIONSHIPS
TO MAINTAIN AN EDGE FOR OUR CLIENTS
We facilitated national security strategic discussions at senior levels
to make progress toward solving the government’s most pressing challenges.
BMNT helped to design and facilitate a two-day conference at the National
Defense University’s Eisenhower School on the future of the US Defense
innovation and industrial base, and then provided findings and
recommendations from the conference to the Deputy Secretary of Defense
and the Vice Chairman of the Joint Chiefs of Staff.
Additionally, H4Di.org, our affiliated non-profit, was invited to participate on a
panel that looked at ways DoD and Silicon Valley can work together at the
annual Reagan National Defense Forum (RNDF), which brings together senior
leaders in defense, national security, and the intelligence community. Our
recognition as a trusted conversation broker between public and private
industry continues to grant us access to hard problems with national and
global strategic impact, where we want to make a difference.
H4D UNIVERSITIES
H4D PROBLEMS BY TECH AREA
Operations 14%
Capabilities 7%
Sensing 7%
Cyber 11%
Percentage of all 497 problems curated for
H4D since program inception
Autonomy 5%
Big Data 22%
Energy 3%
Human Systems 3%
Communications 17%
Onboarding/Hiring 6%
Security 5%
We sourced and curated over double last year’s number of problems
for a rapidly growing Hacking for Defense® (H4D) university program in 2018.
H4D is a for-credit, graduate-level course in which student teams work on real-
world, government problems, applying the Lean Startup methodology. Our
support to H4D, through our partnership with H4Di.org, allows us to
understand which challenges our government is prioritizing, identify trends,
and grow our ecosystem of contributing stakeholders.
2019 BMNT 2018 | Mission Results
Students Enrolled in 2018: 293
Professors Trained in 2018: 107
2018: 237
Problems Curated
2017: 97
2018: 22
H4D™-Associated Universities
2017: 11
12. to reach more customers with hard problems
TAP INTO STRATEGIC OPPORTUNITIES WITH
DEFENSE PRIMES
by leveraging business opportunities
in Norway and the UK
EXPAND INTERNATIONALLY
CONTINUE TO EXPLORE
FOCUS ON DUAL-USE OPPORTUNITIES
FOR COMMERCIALIZATION
new communities with hard problems,
like local government and environmental impact
organizations
to identify and incubate early-stage technologies
with potential private sector application
2221 BMNT 2018 | Mission Results
where we are going
in 2019
DEEPEN ANALYTIC SUPPORT
by refining the products we piloted in 2018
through the addition of Experimentation modules to our
portfolio of customer offerings and the establishment of
H4XLabs as an incubation and transition hub
INCREASE SUPPORT IN THE LATER STAGES
OF THE INNOVATION PIPELINE
DOUBLE OUR REACH AND IMPACT
FOR THE FIFTH STRAIGHT YEAR
13. 2423 BMNT 2018 | Mission Results
learn more about us
Harvard Business Review
What Your Innovation Process Should look Like
What's Next! (podcast)
Innovation from the Battlefield to the Boardroom with Pete Newell
Inc Magazine
This Army Colonel is Showing Large Enterprises How to Innovate Like Lean Startups
PBS NewsHour
How the Pentagon Joins Forces with Silicon Valley Startups
Stars & Stripes
University Course Sics Students on Problems Stumping the Military
Real Clear Defense
Navy's R&D Wing Building a Lean Innovation Machine
The Strategy Bridge
Untangling the Government's Innovation Architecture
Modern War Institute
Wanted: New Analytical Tools for the Defense Department
PRISM Magazine
The Mandate to Innovate
Financial Times
The MBA Students Helping to Solve National Security Problems
Mercury News
Solve the Bay Area Housing Crisis, Fight Climate Change and More, All While Earning
College Credit
AFWERX
Air Force Warfighting Integration Capability
Berkeley City Council
Central Intelligence Agency
City of Oakland
Defense Innovation Board
Defense Intelligence Agency
Defense Logistics Agency
Director of National Intelligence
Energy System Technology Evaluation Program
Environmental Security Technology Certification Program
Joint Improvised-Threat Defeat Organization
Joint Staff
MD5
National Geospatial-Intelligence Agency
National Media Exploitation Center
National Renewable Energy Lab
Naval Postgraduate School
Naval Sea Systems Command
Naval Special Warfare Command
Naval Special Warfare Systems Command
Naval Surface Warfare Center Carderock Division
Naval Surface Warfare Center Panama City Division
Naval Surface Warfare Center Crane
Naval Surface Warfare Center Port Hueneme Division
Naval Undersea Warfare Center
Office of Naval Research
Office of the Secretary of Defense
Sandia National Laboratories
US Africa Command
US Central Command
US Pacific Command
US Strategic Command
H4Di
Monterey Bay Aquarium Research Institute
NextFlex
North Hills Community Association
Oceankind
Schmidt Futures Foundation
Strategic Urban Development Alliance
We Accel
WE THANK OUR ECOSYSTEM OF GREAT PARTNERS
FOR ALL THEY HAVE TAUGHT US THIS YEAR
Public
International Private