John Phelan at Naval Base San DiegoSecretary of the Navy John C. Phelan addresses sailors and Marines on the flight deck of amphibious transport dock ship USS Somerset at Naval Base San Diego. (Photo by Evan Diaz/U.S. Navy)

Navy Secretary John Phelan called for managing the service like a business to improve readiness and innovate faster during a visit to Naval Base San Diego.

“Warfare is a business, and we need to understand that,” he told the personnel gathered Tuesday on the flight deck of the USS Somerset, an amphibious transport dock.

“My North Star is readiness,” he said. To do that I’m focused on three priorities: strengthening shipbuilding and the maritime industrial base; fostering an adaptive, accountable and innovative warfighting culture; and insuring the health, welfare and training of our people.”

He cited artificial intelligence, advanced software and other technologies that will “define the next era of warfare.”

The visit came just a day after reports that Phelan has established a Naval Rapid Capabilities Office to develop “state-of-the-art capabilities” and “ensure maritime supremacy” within three years.

He also addressed the Navy culture, promising better living conditions on ships and in barracks.

“We need safe and habitable barracks, and a culture that values you and your contributions,” he said.

Other stops planned for his San Diego visit include Naval Special Warfare Command, Naval Air Station North Island and a tour of Marine barracks at Camp Pendleton.