Professional services firm KPMG has released a Building Defence Capability report outlining the vital role of collaboration and adaptation in this new policy and security environment.
KPMG argued that four recent policy documents - the First Principles Review, the 2016 Defence White Paper, the 2016 Integrated Investment Plan and the 2016 Industry Policy Statement - have created a framework for dealing with, and adapting to, this new environment.
The KPMG report said, "This broad policy stance implies change for defence in its structure, culture, practices and its relationship with industry - change that will brings its own challenges.
"It also represents commitment to building stronger relationships with industry and driving change in Australia's innovation practices. This provides new opportunities to Defence's industry partners and an opportunity to build a diverse, competitive and export-orientated Australian industry."
Deputy secretary for Capability Acquisition and Sustainment Group (CASG) Kim Gillis has also emphasised the framework of these four policies, particularly those that focus on co-operation between Defence and industry, as essential to adapting.
"To further cement and underscore this [industry] policy, it is my intent to reset the partnership between Defence and industry by generating new levels of co-operation," he said.
The First Principles Review, which was released in April 2015, recommended 'root-and-branch' reform for a professional, well-governed agile and unified Defence organisation.
The 2016 Defence White Paper described how capability will be strengthened over the coming 10 years, with a new emphasis on enabling capabilities, innovation and the role of industry, academia and other research institutions.
The 2016 Integrated Investment Plan outlines a whole-of-capability, whole-of-life investment strategy for the 10 years to 2025-26 that recognises industry as a fundamental input to capability and supports both agile decision-making and long-term planning.
The 2016 Industry Policy Statement commits to a reformed capability development process, a new approach to innovation and less red tape, designed to make it easier for industry to be a partner in building capability.