a this week on "defense news" close look at the u.s. military strategy to combat the islamic state. working? the pentagon tactics for promoting innovation and figured how to soldiersocial media to and make money in the process. welcome to defense news. aitoro.l here is a look at the top headlines. turkey's prime minister resigned and a successor is expected to be named this month. he resignation amid-rising tension with the e.u. and ongoing disagreements between the prime minister and turkey president. lockheed martin continues to nuclear the portable fusion generator. rob weiss announced

they are four months into more significant investment. megawatt r a 100 device to fit on the back of large truck and power city up to 100,000 people. a coalition of countries attling the islamic state in syria and iraq pledge to pour more resources into the fight. defense secretary ash carter met with the defense islamics from the jantz state coalition. he drove home the mission all deviate ore to hope to jihadists. here is the senior fellow from he foundation of defense democracy. thank you for joining us. let's start with kinds of a bit a general question. pentagon's up the strategy thus far? >> it is an attrition based which makes sense given the islamic state is basically at this point functioning as a

quasi state. they have attempted to target directly bombing places where they have cash stored and anticalparticularly convoys taking oil to market and city by city allies in taking back territory and the islamic state has been losing territory. is going fairly well except for the fact the coalition is apart.ly falling you have allies who don't trust each other than and fighting iraq you have in a political crisis led by the lock which threatens to destabilize or significantly government.raqi >> as i mentioned we see the pentagon coming out often saying support, as allies and we need to work together. it balanced? do we need more internationally in terms of combatting the

state? >> of course it is not balanced but when the u.s. is involved it balanced.never back it 1998 when the u.s.a. was kosovo war in europe the u.s. dropped over 90% ordnance from the air and it was in europe's back yard. in libya you had a much more contribution but even so the u.s.'s contribution in terms f aerial power was well over 75%. so, yes, the u.s. is doing more than other allies and it would nice for allies to accept up. we have to recognize there is a allies problem with feed off the united states but done never have allies their fair share. >> it is an interesting article iraqi kurd coming washington and seeking support from lobbyists. is that a

they would do this because you problems.ple of raqi kurdistan, the kurdish regional government is very rich plummeted.rices have even though it is an aantenna foreign policy goes through the government in baghdad so they have been behind it economically and not able to make payments to people who are by theed by and employed state for quite some time ncluding to their peshmurga fighters. it makes sense to look to the united states to fill that gap. where normally i would say we should look for allies to do that. to fight e not going they should put up money but when you look at the countries hat are part of the coalition all are affected and feeling the squeeze due to the drop of oil options ich limits somewhat. but that is one of the areas where i think carter and the united states should

allies to do more because kurdistan should not be good money. peshmurga fighters shouldn't go unpaid. could roll lem and become efforts as much as anything right now. it has e same token always been a battle against an that is pretty well funded compared to others that have come and gone or still exist. how much is the funding that islamic state has part of the and are we succeeding in cutting off their sources? >> it certainly has been part of problem and available evidence suggests we are ucceeding in cutting off sources of funding. they have had to take an across board pay cut throughout the 50% yees of isis around earlier this year. the u.s. has been bombing their money.of the studies all along for exampl

the clam they are making $-- claim they have been making day on oil are imprecise and they have not done a good job figuring out how much losing to the block market because they are not selling oil directly. it is through middle men so others get cuts. this eryone has looked at problem and concluded they are losing money because they ontrol territory they have to spend money in governing. and it is expensive to do so. to hold a swath of territory as big as they have. is interesting because they are losing territory and the u.s. and ke european countries more of a target? >> absolutely it does. this is an organization, isis, which is very much dependent fostering a perception of momentum for a variety of reasons including that when it announced the caliphate it has invested the

legitimacy in somethi having something that can be and the caliphate brutality makes them have to show momentum. off heads, burning people alive is meant to show they are a powerful organization crossed.ldn't be as they lose territory in iraq nd syria being able to project power a broad is a big part of showing they have momentum and they ave strength so probably will shift the investment of resources to put more into their overseas operations. that being said, the only way to actually stay safe from the operations and the planning they can do in iraq and syria is push them back from the now control.y so pushing them back in the decrease the ll likelihood they can carry out ajor attacks abroad and increases the investment they will make in the terrorist ceasseas.over >> we will touch on the

pentagon's approach to combat islamic state. somehow it felt like everything was moving in slow motion. if i didn't react, things could have gotten messy in a hurry. i mean just got that sweet ride with a great rate from navy federal. i was not about to let anything happen to her. just looking out for my wingman. he's still in training. open to the armed forces, the dod and their families. navy federal credit union.

"defense back to news." we are talking with the scenior foundation for defensive democracies. in the last segment we talked international approach of the islamic state. i tphknow they have relied heav grassroots recruitment that really is global, not just of the on their region world. how effective has that been thus far? quite effective. they have been very good initially at

to push their message and brand out. now, social media efforts can't divorced from on the ground insurance. i did a recent study at the networks in europe and they link back to on the networks back as much as a decade and a half. been very hey have good at expanding quickly. lately their recruiting efforts and you into trouble -- number of thupmb ranchises in sphralia and others have suffered significant reversals. > i think the pentagon and their numbers are down to recruiting about 200 per month previously.thousands is that due to our own efforts or why is the tactic not working well? >> a few things. one is they have not been on social media as much. has been pulling their accounts down which disrupted this network. secondly

iraq and syria and getting bad press. people understand that the not a utopia and diminish initials recruits. for african recruits they have to libya and a fourth thing turkey has been clamping down on people trying syria.el into not perfectly but that also iminishes the number that can get to the battle space. >> we heard recently that the to get access to what could be called a data base recruits.tion about how valuable is that? >> very. use that ght we information for? >> a lot of things. having the information on the eople in their data base of recruits allows you to get background information on the their and understand who web of connections are which is elpful whether you look to places where terrorist networks might have roots in europe. it allows

you to go through electronic communications that they have undertaken and himself is in the battle space in iraq, syria and plan specifically relate to their personality. very g who the enemy is helpful. >> in closing if you could any words of advice for the pentagon what do they need in terms of the next phase? >> in terms of the next phase very important. fact that the iraqi government is having trouble staying and other litically allies are fighting each other. secondly a strategy with respect to assad. right now the strategy is so it is helping al qaeda to take ground. that's a problem. the they need to work out problems they have had with their intelligence processes. well known and reported and trying to clean up the mess they have which

really caused a problem in terms theorale of analyst and put integrity of processes into question. hat is important to address which is not been addressed. >> thank you for joining us. >> it was a pleasure. >> when we return defense news on a new editor report about defense secretary ash carter's innovation strategy. you are watching defense news.

"defense back to news." defense secretary ash carter launched his innovation strategy

new american security just released a report looking at his drawing more innovation inside the pentagon. editor news" associate spoke with the authors of the repo report. this whole innovation topic is very hot in washington circles right now. a lot of the discussion is led by the secretary himself. months after k 12 the nitial unleashing innovation base, what worked and what hasn't worked and what that into a n as we get transition time to a new administration. to en, carter talked a lot the external audience. silicon valley and groups like that. one thing you focused on is he needs to look internal. can you explain your thinking on that? >> sure. carter's first step was to start silicon valley and he has done that exceptionally well. next is

make the commitments and setting them up for success. to look at whether or not he was age to get an buy-in which is critical to take it from a legacy item to last beyond his administration and address the stakeholders building who frankly have the opportunity to stop his innovation agenda in their track tracks whether they are the contracting community. nspector general, lawyers, personnel folks, people whose job it is to make sure they are too much risk. he's not addressed them as much as folks on the outside. a misperception that d.o.d. is incapable of having ng itself and institutional resolve and that oned a examin for them to have legs beyond the ends of this administration. report is concern over miscommunication or confusion from his message.

can you go into some of the concerns? >> sure. t is a very difficult environment within which to message because people are concerned about the future of those rganizations and things. what we are seeing is the secretary has spoken a lot about silicon valley and if you speak to the secretary he views that of shorthand. he means nontraditional methods new sources of innovation. but many inside the building and industry took that in a literal sense saying silicon valley or that is the only place of interest to the secretary. not his intent but messaging is difficult. we have seen a couple of that.nges from when we have spoken to folks in ilicon valley it is technology tourism written senior general officers and flag aofrofficers of department of defense will go out it and take meetings with

from large organizations like google and facebook. and do without funding without the ability to get a oftract and you run the risk burning a bridge before you have built it which technically is impossible. there have been challenges in terms of how the defense industry has viewed this. i want to follow up on that. one thing we heard defense still y saying we are here doing innovation stuff s. that a real concern? i spoke to have that concern. i think it is legitimate. organization that has built a flying robot that can land on an aircraft carrier way there's a r certain amount of innovation required for that. at the same time i don't the tly believe that defense industry should feel threatened. here is a lot of work it needs to do and if we think about how to collaborate with new sources technological information whether silicon valley

boston or texas most will need to go through defense industry meable barrier erform to deal with contracting and the cale required for the department of defense. there's a lot of opportunity here if they get their business model right. we talked about innovation. a separate concept primary deputy ed by the secretary of defense. can you tell us the ties between the two? cart and work have had a banner couple of years in terms of launching tpherbt to get the pentagon to think outside the box whether launching e future, the capability office, third offset. and a ion tpherbt active half dozen other issues. they have done a lot to push the in terms boundaries of how they think of future technology and capability. the roblem is people on inside and outside are having a hard time understanding how

map together and whether they are in competition with one another and worse they are figure out where you may go within the pentagon if if you a good idea and are on the outside which office or initiative you want to launch a th to capability. o align better both need to do talking about how these and howves map together one flows from the other and how they are not in competition and working to philosophically align. > i want to ask about constructive failure which is something you hear from the silicon valley community. secretary ou say the shouldn't be afraid of doing. for each of you, i will start lauren whether is an example of that >> you mentioned third offset the way they have talked about it has talked about about in ht be talked the department. you look at the f.y. 17

of the third offset small bets as he calls basically be to done away with in a couple of years. teeing up out different capabilities in terms of which is better than the forcing competition and choices in the next administration on let's keep his and get rid of this depending on what works best for the department. there is a way that the can think of how can we force ourselves to make hoices an learn from the choices going in the future ather than have a not so great program continue for several years which is the traditional route. the secretary has a real opportunity to lead. he's spoken compellingly about to fail and if i were the secretary i would actually ook at canceling and relaunching the diux. hasn't not to say it done good work. i have met with many of the

the department needs to have a presence in silicon valley. but the exactly has the his ownity to take this sort of baby and say they have uccessfully experimented and things they have learned and institutional fixes that are required to take it to the next level. he can put it away, start something new. diux ith be right for the and send a powerful message to constituents in the pentagon and silicon valley that he means what he says and that it is ok for others to do the same. it would be, i think, an exceptionally strong message to send. >> this week's money minute feature sponsored by navy credit a finance spirit explains how to understand your home's equity. tapping the home for equity like any military mission scenarios.fferent first assess the value of the home. finding out how much equity you to you might require help from a professional. a re

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>> welcome back to "defense news" and our innovation segment. sandbox is an android and i.o.s. app for service members, veterans and families that makes it easier for the military community to stay in ones.with loved i sat down with the c.e.o. a former marine to find out how off the grounds. >> really it started in the marine corps. hey were looking for family redness platform and general smith and i got together and how can we create a better solution for the entire

community. >> from idea to actually getting off the ground you told me you are not a developer. how did you make this happen? was quite a crazy roller coaster and still is. trying to t understand what the key pinpoints were and build the around that. effectively it was taking the organizational structure of wrapping it in a secure user experience framework akin to the mobile user. development started initially looking toward development houses in new york overseas but what we realized is we needed to develop in-house so we brought him in-house. it?how long a process was >> it never ends. it is an its ra active process. a year to t took in build. we do two week sprints. app?his is the >> yes, absolutely. allows you to easily stay connected with every unit you ever

here i can find my units from boot camp through to my last command command. >> interesting. great. he question is, you are an entrepreneur by definition. how do you manage to actually this social th med media? create a user acquisition strategy. when you think of it a person military they have no access to digital. we developed a platform to allow mom to send a piece of mail to her son. you open it and you have the content, photo and what is neat is we include a stamped and home sod envelope to go it is a roundtrip parcel. this is the money maker. >> terrific. take care of mailing and everything? here.erything is done >> what kinds of reaction have you gotten from department of defense? they supportive? are they invoed

broad spectrum we have gotten overwhelm support for sandbox. knows bringing new technology in d.o.d. can be very we h but what we found is have got segments across the military specifically the marine corps working on integration with. some of it is based around moral understanding the younger generation of war fighter and helping the navy hink of recruiting command practices. some other things we will do for the military are more enterprise scale. using the data and technology to allow certain commands or units the military touch the war fighters on the mobile device. in hand.ve a contract >> yes. >> is that with the manner corps? >> yes. you talk about what is next? horizon.what is on the >> the next thing for sandbox is web app. built the i.o.s. and android apps. web app is

into some enterprise solutions we will build for the d.o.d. and other organizations 501-c-3 to reach the military communities more effectively. >> you mail the letters from here? >> yes. > as it expands it might be tougher to do? >> scale something a big issue always. we have a huge machine in the room that can fire out about 10,000 a day. get to that hen we point we may think of outsourcing but right now we can a lot of letters. >> that is great. thanks for joining us. much.ank you very >> thanks for watching. for us at defensenews.com conk of national and international defense. tune in next week to see some of darpa's

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