The Daily Scoop Podcast

Navy CTO Justin Fanelli on rewriting the rules of defense acquisition

Jan 6, 2026
Justin Fanelli, Chief Technology Officer for the Department of the Navy, discusses revolutionary reforms in defense acquisition aimed at accelerating technology delivery. He emphasizes the importance of agility within existing structures and introduces the Innovation Adoption Kit to enhance experimentation. Paul Tatum, Executive Vice President at Salesforce, joins to articulate the role of agentic AI in streamlining workflows and improving readiness. Together, they explore cutting-edge initiatives like Mission Force to enhance national security and operational efficiency.
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INSIGHT

Treat Acquisition As A Downhill Funnel

  • Fanelli frames procurement as a funnel: scouting, piloting, scaling, then production.
  • This funnel shortens timelines and prevents a 17-year reinvention cycle by starting divest decisions early.
ADVICE

Divest Early To Invest Faster

  • Start divestment planning early by identifying Horizon 1 candidates during scouting.
  • Use outcome comparisons to justify turning off legacy systems and free funds for new capabilities.
ADVICE

Consolidate Cloud Instances

  • Reduce redundant cloud instances and centralize procurement for efficiency and competition.
  • Fanelli advises one-stop cloud shops and awarded contracts to Google and Oracle to streamline Navy cloud use.
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