Strategic Agility: 2010 Aviation Week Executive Summit

1,369 views

Published on

Aviation Week asked Professor Kappo

Published in: Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,369
On SlideShare
0
From Embeds
0
Number of Embeds
44
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Strategic Agility: 2010 Aviation Week Executive Summit

  1. 1. Aviation Week Executive Summit Professor Rahul Kapoor, The Wharton School Michael Langman, Wharton Aerospace 08 June 2010 1
  2. 2. Wharton School Ties to the A&D Industrial Base 2
  3. 3. The view from Philadelphia  Strategy Development (2009 Theme): Strategy development is not that difficult when monopsonies meet duopolies & oligopolies in a growing & transparent market – but changes are coming.  Strategy Execution (2010 Theme): Creating a strategy is nothing compared to executing it successfully – at the heart of solid execution are program management, supply chain management and technology management skills.  Strategic Agility (2011 Theme): Certain companies will be better than their peers at dealing with current (and coming) waves of market discontinuities. They will see declining budgets as an opportunity to take market share and outperform competitors. 3
  4. 4. Strategic Agility The capacity for a business model to identify and capture opportunities more quickly than its rivals. Source: Fast Strategy Yves Doz & Mikko Kosonen Wharton School Publishing Hear more at Wharton Aerospace 2011 4
  5. 5. This is not Strategic Agility “My company gets it. In fact, we’re attuned to shifting priorities by going after cybersecurity, healthcare IT and smart grid markets”. - VP Strategy at an unnamed firm 5
  6. 6. Strategic Agility and Strategic Sensitivity Processes, people and culture shape strategic sensitivity. 6
  7. 7. Strategic Agility and Leadership Unity Strategic sensitivity is of little use when hierarchical organizations & functional stovepipes do not share mutual common goals or commitments. 7
  8. 8. Strategic Agility and Resource Fluidity Re-allocation of both capital and human resources are dynamic. 8
  9. 9. Implications for Business Models: Key Success Factors  Managing alliances – a substitute for capex, R&D and internal innovation  Managing supply chains – redefining boundaries  Managing technology – vertical integration vs. asset specificity challenges 9
  10. 10. Managing Alliances: a substitute for capex, R&D and internal innovation Co-opetition is fact of life.  Prohibitive capital requirements  Reduced time from RFI to RFP  Winner-take-all risk mitigation  Continued access to (contestable) markets Company X may simultaneously be: • A supplier to a company Y on one program • A customer of the same company on another program • A team-mate on yet another program • And a competitor on multiple other programs Competition is increasing between competing alliances 10
  11. 11. Managing Alliances: Competition is increasingly between competing alliances EXAMPLE: NAWC-TSD Selects Raytheon-led Warrior Training Alliance for U.S. Army Warfighter FOCUS Program Value (US$M): $11200; Begins: Jun-07. Ends: 6/5/2017 Supporting Raytheon are CSC North American Public Sector - -- Aegis MEP, LLC (Columbus, OH) Defense Integrated Solutions & Services (DISS) (Falls Church, -- Ahtna STS (Anchorage, AK) VA) and 64 additional teammates—43 of which are small -- Anark (Boulder, CO) businesses—committed to innovation and excellence in -- Applied Geo Technologies, Inc. (AGT) (Choctaw, MS) warfighter training. Teammates include: -- Aptima, Inc. (Woburn, MA) -- Arcata Associates, Inc. (Las Vegas, NV) -- AAI Corp. Training Systems (Hunt Valley, MD) -- Bedrock Company, Inc. (Radcliff, KY) -- BAE Systems Integrated System Technologies (Insyte) (Frimley, -- Binghamton Simulator Co. (Binghamton, NY) Surrey, England, UK) -- Carahsoft Technology Corp. (Reston, VA) -- Boeing Training Systems and Services (St. Louis, MO) -- CLM Software, Inc. (Fort Rucker, AL) -- CAE Simulation Products/Military (SP/M) [unassigned] (St- -- Cole Engineering Services, Inc. (Orlando, FL) Laurent, Quebec, Canada) -- CymSTAR (Tulsa, OK) -- Camber Corp. (Huntsville, AL) -- Defense Training Systems (Anchorage, AK) -- Cubic Training & Education Div. (Leavenworth, KS) -- The DEI Group (Millersville, MD) -- DRS Training & Control Systems, Inc. (Ft. Walton Beach, FL) -- ENPRO Consulting (Knoxville, TN) -- EDS U.S. Government Solutions (Herndon, VA) -- Engineering Support Personnel, Inc. (Orlando, FL) -- Firearms Training Systems, Inc. (FATS) (Suwanee, GA) -- Infinite Computer Technologies (Warminster, PA) -- L-3 Titan Group - Technical Resources Div. (Landover, MD) -- Inter-Coastal Electronics, Inc. (Mesa, AZ) -- MPRI, Inc. (Alexandria, VA) -- LimitLess International, INc. (Orlando, FL) -- Tivoli Software (Austin, TX) -- Maxus Strategic Systems (New York, NY) -- Virtual Technology Corp. (VTC) (Alexandria, VA) -- Metters Industries, Inc. (McLean, VA) -- Tivoli Software (Austin, TX) -- MYMIC LLC (Portsmouth, VA) -- SAIC Strategies, Simulation & Training (Orlando, FL) -- Oak Grove Technologies (Raleigh, NC) -- Sparta, Inc. (Lake Forest, CA) -- Oberon Associates (Manassas, VA) -- SRI International, Inc. (Menlo Park, CA) -- Olgoonik Logistics, LLC (Anchorage, AK) -- Symantec Corp. (Cupertino, CA) -- Omega Training Group, Inc. (Columbus, GA) -- Viecore Federal Systems Division (FSD), Inc. (Eatontown, NJ) -- Pacific Coast Systems LLC (Asbury, NJ) -- Acme Worldwide Enterprises, Inc. (Albuquerque, NM) -- Pal-Tech (Arlington, VA) -- Adacel Systems, Inc. (Orlando, FL) -- ProModel (Orem, UT) -- Advanced Systems Technology, Inc. (AST) (Lawton, OK) -- Quandrant Simulation Systems (Orlando, FL) 11
  12. 12. Managing Alliances: Competition is increasingly between competing alliances (cont.) EXAMPLE (continued): -- Raydon Corp. (Daytona Beach, FL) Losing bidders included a team known as the Warfighter FOCUS -- Riptide Software (Orlando, FL) Alliance which include: General Dynamics Information Technology -- SA-TECH (Largo, MD) (Fairfax, VA), Lockheed Martin Simulation, Training & Support -- SBI Technologies Corp. (Reston, VA) (ST&S), Commercial Flight Training Center (Orlando, FL), Northrop -- Senspex (Rio Rancho, NM) Grumman Information Technology (IT) (McLean, VA), and Saab -- Universal Systems & Technology, Inc. (Centreville, VA) Training Systems AB (Huskvarna, Sweden). -- Superior Access Solutions (Burnsville, MN) -- Tec-Masters, Inc. (Huntsville, AL) -- Technologies To Be, Inc. (Orlando, FL) Comments from Raytheon … or GD, Lockheed & Northrop?
  13. 13. Managing Supply Chains: Redefining roles & boundaries  From OEM to systems integrator  Horizontal expansion within tiers  Upstream component challenges constrain firms’ ability to produce; downstream complementors’ challenges limit buyers’ ability to fully benefit from consumption (i.e., A380 vs. B787 lessons) We will presently discuss a newly researched eco-systems approach Source: Sikorsky Aircraft President Jeff Pino, Wharton Aerospace 2010 13
  14. 14. Managing Technologies: Introducing Professor Rahul Kapoor Production & knowledge boundaries affect competitive advantage in face of market and technological change 14
  15. 15. Contact Information Professor Rahul Kapoor The Wharton School Kapoorr@wharton.upenn.edu Michael Langman Wharton Aerospace Community Michael.Langman.wg98@wharton.upenn.edu 15

×