A well stated brief summary. Orlin Grabbe was on to the founding of the intel / industrial complex.
IMO one cannot brush past the start: ProMIS software: Prosecutor's Management Information System ... ostensibly a program to help federal prosecutors keep track of their many investigations and trial obligations; designed by Inslaw.
Almost immediately Inslaw noticed that its assist program had been appropriated by the UsGvt; soon thereafter it began to appear in intel software used all over the world.
For a simpleton like myself, I would say that it was discovered that ProMIS software could tie together many loose ends and help in investigative conclusions. It proved useful in high level banking transactions and rumors spread that there were 'back doors' through security blocks for those in the know.
Perhaps the wild west of software design. Certainly with exploding technologies the basic design principles of ProMIS has morphed in to many manifestations, some that might lead to total control over populations. An interesting phenomenon.
Thanks for the additional info about Grabbe and in particular, ProMIS.