business model, business model canvas, mission model, mission model canvas, customer development, hacking for defense, H4D, lean launchpad, lean startup, stanford, startup, steve blank, pete newell, bmnt, entrepreneurship, I-Corps, North Korea, Embargo,
1. Team
Embargo.NK
Lessons Learned
Refined Problem:
“Curtail the advantage
generated by theft of
cryptocurrencies to exercise
maximum pressure on North
Korea.”
Original Problem:
“Use the assets at DoD
disposal to disincentivize
private actors from aiding
North Korea.”
101
Interviews
David
Cornell
Francesca
Ginexi
John
Preis
Antoni
Rytel
Sponsor
Office of the Secretary of Defense (OSD)
3. Week 0 1 2 3 4 5 6 7 8 9 Onward
NK Negotiation
Team
NK State Revenue and Resources
NK Regime
Decision Makers
Illicit Refined
Fuel Smugglers
NK Oil Tankers
East Asian Sea
Maritime Smuggling
Networks
Chinese
Crude Oil
Remittances
from NK
workers
abroad
Criminal
Activity out of
Embassies
Cybercrime
and Bitcoin
mining
Other State actors
We mapped the sanctions enforcement ecosystem
4. Week 0 1 2 3 4 5 6 7 8 9 Onward
NK Negotiation
Team
NK State Revenue and Resources
NK Regime
Decision Makers
Illicit Refined
Fuel Smugglers
NK Oil Tankers
East Asian Sea
Maritime Smuggling
Networks
Chinese
Crude Oil
Remittances
from NK
workers
abroad
Criminal
Activity out of
Embassies
Cybercrime
and Bitcoin
mining
Other State actors
We mapped the sanctions enforcement ecosystem
US
Negotiation
Team
DoD Sanctions Enforcement Policy
Team
Maritime AssetsIntelligence
Assets
Flag and Port
State Enforcement
International
Partners
State Department
White House Policy
Team
UNSC
5. Week 0 1 2 3 4 5 6 7 8 9 Onward
US
Negotiation
Team
NK
Negotiation
Team
DoD Sanctions Enforcement Policy Team
Maritime AssetsIntelligence Assets
Flag and Port State
Enforcement
NK State Revenue and Resources
NK Regime
Decision Makers
International Partners
State Department
White House Policy
Team
UNSC
Illicit Refined
Fuel
Smugglers
NK Oil Tankers
East Asian Sea
Maritime Smuggling
Networks
Chinese
Crude Oil
Remittances
from NK
workers
abroad
Criminal
Activity out of
Embassies
Cybercrime
and Bitcoin
mining
Other State actors
Where value is
created
OSD Focus
6. Week 0 1 2 3 4 5 6 7 8 9 Onward
We thought Ship-to-Ship transfers was the main issue
7. Mapping the interdiction approval process
Week 0 1 2 3 4 5 6 7 8 9 Onward
Interdicting Ship
Notices Suspect
Vessel
Ship Captain Reports
Vessel to PACOM
seeking permission
to interdict
PACOM contacts
OSD for permission
OSD contacts
State Dept OPS
State OPSFlag State Desk
Flag State Post Flag State
“A 24 hour delay can
make all the
difference”
CAPT Tim Brown
USCG
8. Week 0 1 2 3 4 5 6 7 8 9 Onward
Our MVPs
“Negotiator needs information on what
works”
Amb. Chris Hill
“You need to empower the negotiator, give
a menu of options”
Amb. Kathleen
Stephens
9. Week 0 1 2 3 4 5 6 7 8 9 Onward
Predictive Modeling was not the solution
Predictive modeling MVP could be
useful but would be limited in effect
Enough attention on the physical
space from elsewhere
~Former Intelligence
Community Expert
10. Week 0 1 2 3 4 5 6 7 8 9 Onward
We realized that we got it wrong
11. “Nothing on the sea matters if China
opens up a pipeline.”
- Sponsor, Office of the Secretary
of Defense
Week 0 1 2 3 4 5 6 7 8 9 Onward
We solved the wrong problem
12. NSA /
Deputy
SECDEF SECTREAS SECSTATE
OSD OFAC Negotiators
NK State
Desk
Assigned
P8
Assigned
Vessels
PACFLEET
Intelligence
?
?
We searched for the missing piece
13. Week 0 1 2 3 4 5 6 7 8 9 Onward
Former
Intelligence
Community
Expert
“If you are my private think tank, I
want you to figure out a way to
stop NK from making money using
cyber tools.”
How we found a new course of action
14. Week 0 1 2 3 4 5 6 7 8 9 Onward
Former
Intelligence
Community
Expert
“If you are my private think tank, I
want you to figure out a way to
stop NK from making money using
cyber tools.”
“The government is slow to
catch up on these things”
Former Treasury
Official
How we found a new course of action
15. Week 0 1 2 3 4 5 6 7 8 9 Onward
“Nobody’s working on
this”
Difficulty
Value
5
“Our main focus for
the last few decades”
$750,000
$7,000,000
Our next direction seemed clear
16. Week 0 1 2 3 4 5 6 7 8 9 Onward
Back to square one
23. Sponsor:
Andrea Yaffe, OSD
Military Mentor:
Col. Matt Kent, USMC
Industry Mentor:
Kevin Ray
Teaching Assistant:
Mackenzie Burnett
Thank You
Teaching Team:
Steve Blank
Pete Newell
Steve Weinstein
Tom Bedecarré
Jeff Decker
Email:
team_embargonk@lists.stanford.edu