A major contributor to the expense and length of time to design, build
, and test new systems has been the need to build and test hardware pr
ototypes to determine their effectiveness in meeting operational requi
rements. Recent and dramatic advances in computer simulation technolog
ies hold forth the promise of revolutionizing design and acquisition s
trategies by providing the means to validate end users' requirements p
rior to hardware construction. By designing and operationally testing
virtual prototypes in a virtual environment, these technologies will s
oon offer naval architects the ability to build and launch ships in co
mputer-based cyberspace in lieu of the shipbuilder's ways. The authors
of this paper provide the background for these developments, explore
the significance and ramifications of these technologies to the curren
t process of ship and system design, outline challenges lying ahead, a
nd present their vision and recommendations for future development.