• Journal of the military operations research society of Korea
• /
• v.31 no.2
• /
• pp.1-12
• /
• 2005

Defense firms' excess profitability by shifting common overhead costs from non-defense sector to defense sector in the award of cost reimbursement type of defense contracts is a widespread conclusion in prior researches. In this paper, we reviewed cost-shifting incentives in defense-contracting firms and extended the analysis of McGowan and Vendrzyk(2002) by applying modified model to Korea Defense Contracts. We formulated six hypotheses to test the relation of cost-shifting and excess profitability regarding market openness, auditing system, ranking in defense contracts, and firm types(sole defense contractors, sole non-defense contractors, and defense and non-defense mixed contractors). But, we could not find any evidence that defense firms shifted costs from non-defense sector to defense sector for the period 1997-2002. The results suggest that the excess profitability of Korea defense firms may not be from the cost-shifting but from other reasons.

• Journal of Korean Society for Quality Management
• /
• v.50 no.1
• /
• pp.21-33
• /
• 2022

Purpose: As most defense technologies are classified as confidential, the corresponding International Patent Classifications (IPCs) require special attention. Consequently, the list of defense-related IPCs has been managed by the government. This paper aims to evaluate the defense-related IPCs and propose a methodology to revalidate and improve the IPC classification scheme. Methods: The patents in military technology and their corresponding IPCs during 2009~2020 were utilized in this paper. Prior to the analysis, patents are divided into private and public sectors. Social network analysis was used to analyze the convergence structure and central defense technology, and association rule mining analysis was used to analyze the convergence pattern. Results: While the public sector was highly cohesive, the private sector was characterized by easy convergence between technologies. In addition, narrow convergence was observed in the public sector, and wide convergence was observed in the private sector. As a result of analyzing the core technologies of defense technology, defense-related IPC candidates were identified. Conclusion: This paper presents a comprehensive perspective on the structure of convergence of defense technology and the pattern of convergence. It is also significant because it proposed a method for revising defense-related IPCs. The results of this study are expected to be used as guidelines for preparing amendments to the government's defense-related IPC.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.40 no.4
• /
• pp.246-252
• /
• 2017

In the defense acquisition, a company's goal is to maximize profits, and the government's goal is to allocate budgets efficiently. Each year, the government estimates the ratio of indirect cost sector to defense companies, and estimates the ratio to be applied when calculating cost of the defense articles next year. The defense industry environment is changing rapidly, due to the increasing trend of defense acquisition budgets, the advancement of weapon systems, the effects of the 4th industrial revolution, and so on. As a result, the cost structure of defense companies is being diversifying. The purpose of this study is to find an alternative that can enhance the rationality of the current methodology for estimating the ratio of indirect cost sector of defense companies. To do this, we conducted data analysis using the R language on the cost data of defense companies over the past six years in the Defense Integrated Cost System. First, cluster analysis was conducted on the cost characteristics of defense companies. Then, we conducted a regression analysis of the relationship between direct and indirect costs for each cluster to see how much it reflects the cost structure of defense companies in direct labor cost-based indirect cost rate estimates. Lastly a new ratio prediction model based on regularized regression analysis was developed, applied to each cluster, and analyzed to compare performance with existing prediction models. According to the results of the study, it is necessary to estimate the indirect cost ratio based on the cost character group of defense companies, and the direct labor cost based indirect cost ratio estimation partially reflects the cost structure of defense companies. In addition, the current indirect cost ratio prediction method has a larger error than the new model.

• Journal of Information Technology Services
• /
• v.14 no.2
• /
• pp.275-287
• /
• 2015

Information technology (IT) convergence have been recognized one of the key drivers in the industry perspective. Especially, IT convergence have been one of the most important innovative way for defense sector. Korea government established IT convergence policy in 2008 and have been applying it to the core industry such as automotive, shipbuilding and defense industries. Recently, the creative vitamin project has been launched. Vitamin 'D' means the way to create the value of defense industry. This research analyzes and evaluates various IT convergence business models based on an operation of defense IT convergence center from 2011 to 2014, which is the industry IT convergence centers. Defense IT convergence business models can be classified into four types of mission area as follows : weapon acquisition and management, military intelligence, military power construction, and resources management. We define the concept of defense IT convergence and describe the framework and processes for applying IT to the defense sector. We analyzes and evaluates various business models designed through defense IT convergence framework and processes.

• Journal of Information Technology Services
• /
• v.12 no.3
• /
• pp.207-229
• /
• 2013

The aim of this study is to analyze how both the quality of KMS (Knowledge Management System) and its organizational factors have effect on the utilization and user satisfaction in the defense sector. This study has verified the effects and identified the main factors affecting KMS performance measures. The nature of KMS quality and its organizational characteristics were deduced from previous research results, and a questionnaire survey was conducted on 250 KMS users in the defense sector on the performance of KMS based on the time spent on KMS and the overall satisfaction through which the hypothesis was verified. This study has made several contributions in the fact that it had provided the opportunity to analyze which factors have impact on knowledge management performance in the defense sector and the utilization and users' satisfaction of KMS reflecting the viewpoint of the organizational characteristics of the military, while studying the factors which can affect the performance for knowledge management.

• International Journal of Contents
• /
• v.2 no.2
• /
• pp.6-9
• /
• 2006

The style of war in the $21^{st}$ century became digitalized cooperative union tactic, which relies heavily on the system providing real time information. Critical information is provided during the war from sensing to shooting. Therefore, epochal development in observation, reconnaissance (ISR), commanding (C4I) and precision strike (PGM) are necessary. Application of ubiquitous computing and network technologies in national defense is necessary for carrying out with various types of wars in the $21^{st}$ century. Therefore, the author wants to research core technology sector that can be developed and applied in preparation of ubiquitous national defense era. Also plans for applying recent u-Defense technology to the military sector had been suggested. Particularly, the author have suggested plans for utilizing combined future information technologies such as ad-hoc network, RFID for the logistic supply in construction of u-Defense system. By utilizing these information technologies, combat power and strategic capabilities of the military can be enhanced greatly.

• Journal of Information Technology Applications and Management
• /
• v.16 no.4
• /
• pp.223-244
• /
• 2009

Defense R&D is an essential investment for the national security. Recently our nation has also begun to initiate a number of defense R&D projects. As a lot of fund and resources are allocated to these projects, we need to identify which projects to initiate and then how to manage these projects well. Though there have been a number of studies on R&D projects in commercial sector, there are only a few studies in defense R&D sector. Moreover, these existing defense R&D studies mainly deal with the former issues, which are occurring at the stage of project planing. We are more concerned with project management issues, such as how to manage projects that had already been evaluated to undertake at the planning stage. Specifically our study aims to identify project management factors leading to the success of defense R&D projects. Results of the empirical analysis indicate that management support, user-driven requirements management, and project planning capability are key elements for project performance.

• Convergence Security Journal
• /
• v.16 no.3_1
• /
• pp.3-10
• /
• 2016

This study is to actively respond to changes in terms of age, it was to find a possible way to realize the effective application of research to expand the civilian use of resources in the defense sector. Utilization of civil resources were first introduced by the previous government institutions to be applied to the military, our country, the use of private resources began with the 1948 case of a consignment of rubbish. In particular, in the process of overcoming the economic crisis IMF 1990s the government increased its advantage in the public service sector while introducing elements of civil to the public sector. Meanwhile, the Pentagon was promoting policies that foster and promote the civil sector in defense of "defense reform law" in terms of the advancement of military operations. The results of the work carried establish schemes for the civil use of resources, which can be protected by legal and institutional supplement, it is determined that you need a dedicated organization for the construction of projects.

• Journal of Technology Innovation
• /
• v.17 no.1
• /
• pp.149-177
• /
• 2009

Today, the phase of modem war is very different from past war. That is, the winning of war depends on the ability to obtain information and high technology. The purposes of this research are to propose an effective R&D governance model in national defense sector and to present R&D strategy for obtaining core national defense technology. As a part of collaborative innovation, the strategy to exchange R&D results actively between the defense sector and the private sector will be discussed. The main contribution of this research is dearly defining the concept of R&D governance in national defense sector and applying it to an actual case. The national defense R&D governance model proposed in this paper is based on the characteristics of national defense R&D which are different from other industries. The analysis of business success factors for national defense R&D through the T-50 case study is presented in detail. The T-50 case study reveals the importance of strategic intent, core technology knowledge base, organizational structure, and project management.

• Electronics and Telecommunications Trends
• /
• v.35 no.1
• /
• pp.12-24
• /
• 2020

To keep pace with other powerful nations in this era of the era of digitalization and to emerge stronger in the world, the defense forces of South Korea aim to innovate and prepare themselves for digital battlefields of possible wars in the future. The resources in the defense sector, which is the core of defense intelligence, is based on an intelligent mission collaboration tactical network system via cyber, command, control, communication, and computer (C4), and military and non-human weapons. Defense intelligence depends on the degree of the convergence of advanced Information and communication technologies (ICTs). Considering this aspect of defense intelligence, We plan to determine the application status of defense blockchain technology and examine the feasibility of applying blockchain technology and the core of applied technology. Generally, a key feature of blockchain technology is its data integrity in untrusted environments. There are various types of core technologies for the blockchain depending on the target areas of application in the defense sector, and it is also essential to derive new application strategies for core technologies that are applied in combination with other ICT technologies. We plan to demonstrate new defense ICT converged technologies (DNAB2: Data, Network, AI, BigData, Blockchain) and DNAB2-As-Services in the defense strategy.