The late 20th century has seen significant political and economic changes. One of the most dramatic economic changes is the globalization of many U.S. defense industries which were previously focused domestically. Defense industry giants find themselves increasingly more reliant on international markets to sustain their capacity for domestic needs, while smaller domestically concentrated companies find themselves faced with foreign industry encroachments on their markets. The success of U.S. industry in this globalization process can be significantly affected by those institutions, both public and private, with experience operating internationally, that possess resources and capabilities beyond our borders. The U.S. Department of Defense, through its acquisition agencies, is such an institution and as such bears responsibility to assist in this process. Furthermore, recent changes in policy governing U.S. Security Assistance activities now allow these agencies to assume a more active role in pursuing Foreign Military Sales.
Despite their vast experience in the global market place, those in the Department of Defense who conduct international business cannot assume a business-as-usual approach. Particularly in the area of simulation, a leading edge technology, military agencies managing this commodity must be perceived as leading-edge organizations, advancing corporately in tandem with technology. Internal processes, external dependencies and international business processes must emphasize innovation, adaptation, flexibility, efficiency and rapid response - in other words a High-Speed Management (HSM) approach to Foreign Military Sales. Under HSM, international business activity must be built atop three pillars: Strategic Alliances, Environmental Scanning and Information Processing. All three of these activities connect horizontally, forming a structurally sound methodology for business development.