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The integrated weapon system (IWS) Business Model Has Many Potential Benefits

• The model periodically distributes capability upgrades to both new and in-service ships using concurrent development and sequential integration and testing.
• The model improves the efficiency of weapon system development and support by using modern software engineering processes that enable continuous development.
• The model fosters competition by allowing the Navy to seek bids from multiple commercial vendors for developing individual components of the weapon system software.
• The model allows the Navy to leverage points of overlap in capability development across weapon systems.

But Also Carries Several Sources of Risk

• The switch to a completely new business model may entail unanticipated difficulties.
• The vested interests of stakeholders in the legacy process may make implementing a new business model more difficult.
• The complexity of managing the common source library adds risk.
• Programs may compete for limited resources.
• The Aegis fleet may be exposed to new risks as a result of funding instability.