This report provides background information and discusses possible oversight issues for Congress regarding DOD's strategy for implementing a network centric approach to warfare, otherwise known as Network Centric Operations (NCO). NCO forms a central part of the Administration's plans for defense transformation. Proponents argue that a Network Centric approach may improve both the efficiency and effectiveness of U.S. combat operations. However, when NCO was originally envisioned, the U.S. military was structured to counter conventional threats, including possibly, two regional war scenarios involving national armies. Now, partly from recognition that U.S. forces were inadequately prepared for the insurgency in Iraq and the wider hunt for terrorists worldwide, DOD reportedly may be considering new policy that places less emphasis on waging conventional warfare and more on dealing with counterinsurgency, terrorist networks, and other non-traditional threats. Some observers now question the effectiveness of Network Centric Operations, and its relevance to different types of conflict, including close urban combat. Others argue that technology may be dictating military strategy, and point out that the military's extreme reliance on high technology may also present a new vulnerability that adversaries may exploit. Still others pose questions about (1) the interoperability of information systems for joint and coalition forces, (2) a shortage of available bandwidth to support Net Centric Operations, and (3) possible unexpected outcomes when organizations rely on data-dependent systems. NCO is recognized as the cornerstone of military transformation that is occurring in many countries around the world. Defense transformation for the U.S. military involves large-scale and possibly disruptive changes in military weapon systems, organization, and concepts of operations. These changes are the result of technology advances, or the emergence of new international security challenges. Many observers believe that a U.S. military transformation is necessary to ensure U.S. forces continue to operate from a position of overwhelming military advantage in support of national objectives. The Administration has stated that DOD must transform to achieve a fundamentally joint, network centric, distributed force structure capable of rapid decision superiority. To meet this goal, DOD is building doctrine, training, and procurement practices to create a culture of continual transformation that involves people, processes, and systems. Past experimentation to stimulate wider innovation for military operations and NCO has been coordinated by the DOD Office of Force Transformation (OFT). However, DOD plans to shift many ongoing technology initiatives formerly managed by the OFT into the DOD Research and Engineering Directorate. In addition, a reorganization of the office of the DOD Undersecretary for Policy will lead to establishment of a new Office of Strategic Futures, which will examine technology issues that may affect U.S. defense policies. The reorganization is reportedly planned for early 2007, and will require congressional approval for a new assistant secretary position. NCO is a theory which proposes that the application of information age concepts to speed communications and increase situational awareness through networking improves both the efficiency and effectiveness of military operations. Proponents advocate that this allows combat units to be smaller in size, operate more independently and effectively, and undertake a different range of missions than non-networked forces. Networked sensors are sources of data, and data is processed into information. NCO is intended to increase collaboration through enabling the free flow of information across the battlespace so that acquired data is shared, processed into information, and then provided quickly to the person or system that needs it. Proponents argue that a strong and flexible network linking military forces will speed up the pace of warfare, prevent or reduce fratricide, and also provide the means for getting more combat power out of a smaller force. These proponents also argue that theory and practice have merged through achieving proof of concept in the major operations phase of Operation Iraqi Freedom, and that NCO is now an accepted and enduring part of current and future combat. Procurement policy to support joint NCO efforts is also intended to improve economic efficiency by eliminating stove-pipe systems, parochial interests, redundant and non-interoperable systems, and by optimizing capital planning investments for present and future information technology systems. Command and control objectives of NCO include the following: (1) Self-synchronization, or doing what needs to be done without traditional orders. (2) Improved understanding of higher command's intent. (3) Improved understanding of the operational situation at all levels of command. (4) Increased ability to tap into the collective knowledge of all U.S. (and coalition) forces to reduce the "fog and friction" commonly referred to in descriptions of fighting. Some argue that as new concepts and technologies are proven over time, NCO may also become a stabilizing deterrence against extended conflict. For example, if adversary targets are neutralized by NCO systems before they can engage in fighting with U.S. forces, then the battle can be finished before it has really begun. Others argue that wealthy countries now only have a temporary advantage which may be reduced as NCO technology becomes less expensive and as technical knowledge spreads to other nations, and also to terrorist groups. Hence, to maintain its advantage, the United States must continue to refine the uses of technology to increase adaptability for both joint and coalition NCO operations. Other observers have wondered whether proponents of NCO are making claims that create unrealistic expectations. They wonder if the DOD model for network centric operations may underestimate an enemy's ability to deceive high technology sensors, or block the information necessary for NCO to be effective. A possible vulnerability cited by observers may be the fact that DOD has openly published its plans for using NCO technologies in future warfare, thus giving an enemy time to create strategies to avoid strengths and attack weaknesses. National security in the "Information Age" involves a complex environment, where U.S. forces are confronted by instantaneous media coverage, insurgencies, terrorist cells, regional instability, and adversaries using commercially available state-of-the-art high technology devices. Therefore, military operations are now characterized by greater complexity. Events involving greater complexity are less effectively controlled through traditional industrial-age methods that de-construct problems into a manageable series of predictable pieces. However, the command and control objectives of NCO seem to align closely with many of the key properties of complexity—nonlinear interaction, decentralization, and self-organization. Proponents of NCO support the theory that power is increasingly derived from information sharing, information access, and speed. This view is reportedly also supported by results of recent military operational experiences showing that when forces are truly joint, with comprehensively integrated capabilities and operating according to the principles of NCO, they can fully exploit the highly path-dependent nature of information age warfare. Some resulting military advantages that are expected from applying NCO systems to military operations include the following: (1) Networked forces can consist of smaller-size units that can travel lighter and faster, meaning fewer troops with fewer platforms and carrying fewer supplies may be able to perform a mission effectively, or differently, at a lower cost. (2) Networked forces can fight using new tactics. During OIF, U.S. Army forces utilized movement that was described by some as "swarm tactics." Because networking allows soldiers to keep track of each other when they are out of one another's sight, forces in Iraq could move forward spread out in smaller independent units, avoiding the need to maintain a tight formation. Using "swarm tactics," unit movements are conducted quickly, without securing the rear. Network technologies enable all units to know each other's location. If one unit gets into trouble, other independent units nearby can quickly come to their aid, by "swarming" to attack the enemy from all directions at once. Benefits may include the following: (1) it is harder for an enemy to effectively attack a widely dispersed formation; (2) combat units can cover much more ground, because they do not have to maintain a formation; (3) knowing the location of all friendly units reduces fratricide during combat operations; and (4) swarming can allow an attack to be directed straight into the heart of an enemy command structure, undermining support by operating from the inside, rather than battling only on the periphery. (3) The way individual soldiers are expected to think and act on the battlefield is also changing. When a unit encounters a difficult problem in the field, they can radio the Tactical Operations Center, which types the problem into an online chat room, using Microsoft Chat commercial software. The problem is then "swarmed" by experts who may be located as far away as the Pentagon. (4) The sensor-to-shooter time is reduced. Using NCO systems, soldiers in the field may have the capability to conduct an "on site analysis" of raw intelligence from sensor displays, rather than waiting for "return analysis" reports to arrive back from the continental United States. This has led some to question the investment in NCO. DOD officials have stated that it is irregular and unconventional conflicts, rather than confrontations with standing armies, that will dominate U.S. military operations for the foreseeable future. Accordingly, some observers question the utility of NCO in urban combat operations and for counterinsurgency operations, and ask whether the U. S. military currently places too much emphasis on high-technology. In operations in Afghanistan and in urban warfare in Iraq, NCO has reportedly reduced fratricide among friendly forces. However, in Afghanistan and Iraq, the insurgents mix in with the population, and are able to get very close to U.S. forces. This tactic alone reportedly may negate much of the technological and military advantage of superior coalition forces. Others question whether information itself may be overrated as a useful military asset (See Appendix C , "Perverse Consequences of Data-Dependent Systems"). Proponents say that a growing body of evidence highlights a very strong relationship between information advantage, cognitive advantage, and increased lethality and survivability at the tactical level.