Transforming Defense: National Security in the 21st Century, the December 1997 final report of the National Defense Panel, discusses a "strategy" of transformation" and emphasizes systemic change in procurement. It refers to "lock-ins " for equipment purchases, "short technological life cycles," and "changing the defense structure." Several conclusions may be drawn from the report: The Information Age changes the dynamics of systems. Networks, flexible manufacturing just-in-time inventories, and "increasing returns" all influence the way systems will respond; Systems concepts that are relevant to defense policy and planning include: accelerators, lagged feedback, transient states, stocks and flows, and discontinuous change; The dynamics between reducing inventories and the resulting effects on production are no proportional reductions are more severe in the production sector than in inventory; Education in the dynamics of systems is needed within the Department of Defense to accommodate strategic planning for procurement.