Enhancing NATO’s digital capabilities

What is the issue?

In 2023, NATO Defence Minister approved the first-ever NATO Digital Transformation Implementation Strategy. This document has guided a range of digital transformation initiatives and efforts to effectively support NATO operations and decision-making. However, while significant progress has been achieved in defence digitalisation, both within NATO as an organisation and across the NATO Allies, there are a number of questions about shared understanding, barriers and enablers, and continuing challenges as NATO pursues the development of digital capabilities.

How did we help?

This project is one of several commissions that Microsoft has given to a range of think tanks and research organisations ahead of the 2025 NATO Summit in The Hague. The projects are intended to help to better articulate how NATO and its members can progress the development of digital capabilities and encourage informed dialogue ahead of the Summit. RAND Europe proposed research and analysis across three aspects of digital capability development:

1. Conceptualising digital capability
2. Implications and enablers of effective digital capability management
3. Opportunities and challenges of interoperability in the digital environment

For each area, RAND Europe applied different methodologies to explore the issues, including case studies, defence budget analysis, and future scenarios. The project concluded with three short research reports, as well as additional summary outputs, to help disseminate findings and spark discussion among policy- and decision-makers.

What did we find?

• Investment in digital capabilities are a key enabler for NATO’s core tasks, as well as its future strategic standing. Successful digital capability development will therefore be essential for the future success of the Alliance.
• Our analysis shows that a lack of shared understanding may hinder NATO’s collaboration with industry. Collaboration with the private sector is a key enabler for successful digital capability development.
• Digital capability development is affected by both barriers and enablers for traditional acquisition, as well as barriers and enablers that are unique to digital technologies. Digital capability development within NATO may therefore require some unique approaches, including more agile acquisition, higher risk appetite, and investment in skills and personnel.
• Asymmetric digital capabilities among Allied countries can complicate or even jeopardise digital interoperability.

Additional team member

Judith Heismans