NATO ACT Industry Day 12 th September 2011, London. Alberto de Benedictis Chief Executive Finmeccanica UK

Transcription

1 Small and Medium business contribution to capability development NATO ACT Industry Day 12 th September 2011, London Alberto de Benedictis Chief Executive Finmeccanica UK

2 Finmeccanica: Providing real capability to operations

3 Finmeccanica Today FY2010 FY2009 FY 2010 Revenues 18.7 B Revenues 18,695M M EBITA Adj. 1,589M M New Orders 22,453M M Employees 75, R & D 2,030M M AERONAUTICS HELICOPTERS SPACE DEFENCE ELECTRONICS DEFENCE SYSTEMS ENERGY TRANSPORT 15 % 19 % 5 % 37 % 6 % 8 % 10% Alenia Aeronautica Alenia Aeronavali Alenia Aermacchi ATR AgustaWestland Thales Alenia Space Telespazio Vega Space Selex Sistemi Integrati DRS Selex Galileo Selex Elsag Selex Service Management Vega Consulting Elettronica Oto Melara WASS MBDA Ansaldo Energia Fully Owned Subsidiaries JVs Ansaldo STS Ansaldo Breda

4 Finmeccanica in the UK SME SME SME SME SME = SME Cluster UK Employees: 9,500 UK R&T/D: 200m UK SME Partners: 1,253 UK SME Contracts 407m

5 Traditional Market Structure Tier 1 Prime / OEM / SI acting as singular customer interface (FACO) Entire contractual responsibility Tier 2 Integrated sub-system provider Full term contractual responsibility Tier 3 Products & Sub-Assemblies Specific responsibilities for niche (sometimes outsourced) areas Tier x Component supply, innovative elements Responsible for niche areas SME s = Small Medium Enterprises

6 Evolving Market Structure Interconnected supply networks A global market place SMEs often regionally / technologically clustered Mutual dependencies Coordinated design and development Partnership as well as commercial relationship Extends to the customer Customer / End User is a critical cog Primes are machines too

7 The benefits and realities of working with SMEs Key Benefits Access to emergent capability Operational agility Access to specialist skills Volume and variety of suppliers Factors to be managed Life-cycle sustainability Overhead burden Financial stability Ability to sustain investment Longevity IPR management & protection The benefits are clear - but proactive and empathetic supply chain management is required

8 Accessing the benefit: The UK MoD s Approach Centre for Defence Enterprise An open innovation portal for all capability from any source Proactive, funded research / capability search programmes against challenge areas High volume of activity with varying campaign durations Defence Technology Centres Focussed capability development Based on technology or application area Consortium managed (industry & academia) Electro Magnetic Remote Sensing DTC

9 SMEs contribution to capability: The Grand Challenge The UK MoD Grand Challenge was conceived to rapidly stimulate capability to address a real operational challenge SMEs and Academia were encouraged to participate either singularly or as members of consortia Finmeccanica had SMEs in (in fact leading!) the team as well as a number of academic partners This provided an excellent way to rapidly pull though and demonstrate capability However: It is important not to start unless you re prepared to finish.

10 SMEs contribution to capability: FOBEX 2011 FOBEX is a UK MoD Managed series of research calls and activities focussed on achieving: Increased operational effectiveness and; Lower cost of ownership for forward operating bases The activity provides the opportunity for consortia (of large and small companies) to innovate, integrate, test and demonstrate their capability to a captive customer base Finmeccanica has found that the SME contribution has been for niche capability where defence is a secondary application The next event is in October 2011, if you d like to know more please ask!

11 Conclusion and Summary SMEs are making a real contribution to make to defence capability However, this contribution is often missed because embedded in larger programmes. Engaging with the SME industrial base requires an intelligent mechanism which recognises their unique characteristics Defence organisations do have a significant role to play is stimulating the market Truly effective capability pull through and delivery requires a partnered approach across all shapes and sizes of organisation

12 Small and Medium business contribution to capability development NATO ACT Industry Day 12 th September 2011, London Alberto de Benedictis Chief Executive Finmeccanica UK