There are known knowns; there are things we know we know. We also know there are known unknowns, that is to say we know there are some things we do not know. But there are also unknown unknowns - the ones we don't know we don't know.

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When surprise occurs, such as when the economy enters an unexpected recession or a conflict begins seemingly out the blue, the natural reaction is to immediately ask who made the “obvious” mistake. It is much easier to believe that our leaders are incompetent than to accept the less pleasant reality that ours is a world where uncertainty and surprise are the norm, not the exception.

The technology revolution has transformed organizations across the private sector, but not ours, not fully, not yet. We are, as they say, tangled in our anchor chain. Our financial systems are decades old. According to some estimates, we cannot track $2.3 trillion in transactions. We cannot share information from floor to floor in this building because it's stored on dozens of technological systems that are inaccessible or incompatible. To that end, we're announcing today a series of steps the Department of Defense will take to shift our focus and our resources from bureaucracy to battlefield, from tail to tooth.

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"There are no "knowns." There are things we know that we know. There are known unknowns. That is to say there are things that we now know we don't know. But there are also unknown unknowns. There are things we do not know we don't know."

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