The document discusses strategic approaches for businesses to take advantage of opportunities presented by the American Recovery and Reinvestment Act of 2009 (ARRA). It outlines that traditional responses to increased government spending have often yielded suboptimal results. It recommends a rigorous three step process: 1) Developing an external market view of ARRA opportunities through in-depth analysis, 2) Conducting an internal capabilities assessment, and 3) Creating a coordinated action plan. The unprecedented scale, complexity, pace, and transparency of the ARRA require a systematic strategic approach focused on analysis, innovation, coordination and execution rather than typical short-term tactical responses.
HCLT Whitepaper: Insurance~ The market will contract not collapseHCL Technologies
The insurance market will surely contract, but it will not collapse. Consumers and companies will still require risk management - albeit, the number of buyers are fewer. Some of the now marginal mid-tier and small carriers may be acquired, or simply fail. Prices will flatten, and rate increases will be needed to raise capital, but the size will be restrained by the contracting economy. However, most insurance industry leaders think that we will be in that contraction through the first half of 2010. With that return to expansion, the industry will still be confronted with the challenges/ opportunities discussed in my last two missives - expanded demand for more sophisticated products and
the need for time-to-market agility while managing losses and expenses.
HCLT Whitepaper: Insurance~ The market will contract not collapseHCL Technologies
The insurance market will surely contract, but it will not collapse. Consumers and companies will still require risk management - albeit, the number of buyers are fewer. Some of the now marginal mid-tier and small carriers may be acquired, or simply fail. Prices will flatten, and rate increases will be needed to raise capital, but the size will be restrained by the contracting economy. However, most insurance industry leaders think that we will be in that contraction through the first half of 2010. With that return to expansion, the industry will still be confronted with the challenges/ opportunities discussed in my last two missives - expanded demand for more sophisticated products and
the need for time-to-market agility while managing losses and expenses.
In this its 37th year, we look at the medium term outlook for the industry as a whole, key industry, sector, and regional developments, as well as developments on the international stage. We are happy to report some initial signs of stabilisation in the industry but also demonstrate that the industry is operating at wholly unsustainable levels in terms of output
PivotalCRM - How to profit in a downturn_usPivotal CRM
Many businesses are currently struggling to find ways to cut costs and make ends meet, and ambitious new strategies and growth goals are being put on hold till the economy rebounds. But even in a time of uncertainty and contraction, smart companies can find opportunity and growth.
Empresa Brasileira de Tecnologia atuando com inteligência e soluções inovadoras de TI, para garantir a continuidade dos negócios de nossos clientes, com segurança, a qualquer hora e em qualquer parte do mundo.
Nossa expertise está na proteção, gerenciamento, rastreamento, segurança e controle de informações, acessos, ativos e imagem empresarial.
Entregamos tranquilidade e confiança. - Segurança e Governança
A white paper on the unique Service Oriented Architecture benefits of ARMnet Financial Software in the financial product management space. Using a client centric CIF file ARMnet is capable of managing any financial product for loan or mortgage origination and servicing, lease or fleet management, wealth or deposit management institutions.
In this its 37th year, we look at the medium term outlook for the industry as a whole, key industry, sector, and regional developments, as well as developments on the international stage. We are happy to report some initial signs of stabilisation in the industry but also demonstrate that the industry is operating at wholly unsustainable levels in terms of output
PivotalCRM - How to profit in a downturn_usPivotal CRM
Many businesses are currently struggling to find ways to cut costs and make ends meet, and ambitious new strategies and growth goals are being put on hold till the economy rebounds. But even in a time of uncertainty and contraction, smart companies can find opportunity and growth.
Empresa Brasileira de Tecnologia atuando com inteligência e soluções inovadoras de TI, para garantir a continuidade dos negócios de nossos clientes, com segurança, a qualquer hora e em qualquer parte do mundo.
Nossa expertise está na proteção, gerenciamento, rastreamento, segurança e controle de informações, acessos, ativos e imagem empresarial.
Entregamos tranquilidade e confiança. - Segurança e Governança
A white paper on the unique Service Oriented Architecture benefits of ARMnet Financial Software in the financial product management space. Using a client centric CIF file ARMnet is capable of managing any financial product for loan or mortgage origination and servicing, lease or fleet management, wealth or deposit management institutions.
Cross Industry Collaboration: Creating the enablers for disruptive modelswimdecraene
Information technologies, mature markets, relentless demand for innovation, environmental concerns and the uncertain economy are combining to drive the emergence of new growth scenarios, which are spurring companies to fundamentally rethink their growth strategies.
The vision of an economy as a set of independent industries –each serving its own customers, with its own suppliers and its own innovation chain—is in many ways outmoded. New collaborations are emerging that stretch well beyond historical industrial boundaries, nurtured by mobility, payment systems, open information, energy management and infrastructure development. This new breed of cooperation is all about unlocking synergies and exploring fresh opportunities.
Although in recent years numerous factors have combined to encourage cross-collaboration among different industries, this trend has yet to gain any real traction. The main question is which enablers are missing to spur the development of new cross-industry ecosystems?
Strategic Success: Closing the Deal Isn't a StrategyTodd Antonelli
Executives involved in decision-making on key corporate acquisitions need to ask not “Are we doing things right?”
but instead “Are we doing the right things?”
Robert W Baird provides market and company analysis in core sectors served by Red Kap. Check out their thoughts on the economy, our sectors and key companies.
Heidrick & Struggles
convened two CEO roundtables in India, one
in New Delhi and one in Mumbai. The purpose
of the two events was to bring together some
40 leading company CEOs and top executives,
both Indian and foreign, to gain an insight of emerging market challenges
The Half Trillion Dollar Challenge: Designing Offset Strategies to Build Repu...jbarney23
Aerospace and defense companies face an unprecedented challenge as the foreign markets
essential to topline growth impose new offset requirements that are stricter, larger, and more
complex than ever before
Expanding into Adjacent Markets (Cyber, Energy, Smart Power, Health IT) - Wha...jbarney23
Diversification into attractive adjacent markets provides an opportunity for traditional aerospace & defense (A&D) firms to offset potential declines in their core business in the face of defense spending reductions and/or declines in the highly cyclical commercial aerospace market. This presentation—given by The Avascent Group at the Wharton Aerospace 2010 Conference—considers key strategic questions faced by A&D industry leaders as they evaluate various paths for expanding into several potential adjacent markets, including cyber-security, health care information technology, energy, and “smart” power.
Alt. GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using ...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
GraphSummit Singapore | The Future of Agility: Supercharging Digital Transfor...Neo4j
Leonard Jayamohan, Partner & Generative AI Lead, Deloitte
This keynote will reveal how Deloitte leverages Neo4j’s graph power for groundbreaking digital twin solutions, achieving a staggering 100x performance boost. Discover the essential role knowledge graphs play in successful generative AI implementations. Plus, get an exclusive look at an innovative Neo4j + Generative AI solution Deloitte is developing in-house.
In the rapidly evolving landscape of technologies, XML continues to play a vital role in structuring, storing, and transporting data across diverse systems. The recent advancements in artificial intelligence (AI) present new methodologies for enhancing XML development workflows, introducing efficiency, automation, and intelligent capabilities. This presentation will outline the scope and perspective of utilizing AI in XML development. The potential benefits and the possible pitfalls will be highlighted, providing a balanced view of the subject.
We will explore the capabilities of AI in understanding XML markup languages and autonomously creating structured XML content. Additionally, we will examine the capacity of AI to enrich plain text with appropriate XML markup. Practical examples and methodological guidelines will be provided to elucidate how AI can be effectively prompted to interpret and generate accurate XML markup.
Further emphasis will be placed on the role of AI in developing XSLT, or schemas such as XSD and Schematron. We will address the techniques and strategies adopted to create prompts for generating code, explaining code, or refactoring the code, and the results achieved.
The discussion will extend to how AI can be used to transform XML content. In particular, the focus will be on the use of AI XPath extension functions in XSLT, Schematron, Schematron Quick Fixes, or for XML content refactoring.
The presentation aims to deliver a comprehensive overview of AI usage in XML development, providing attendees with the necessary knowledge to make informed decisions. Whether you’re at the early stages of adopting AI or considering integrating it in advanced XML development, this presentation will cover all levels of expertise.
By highlighting the potential advantages and challenges of integrating AI with XML development tools and languages, the presentation seeks to inspire thoughtful conversation around the future of XML development. We’ll not only delve into the technical aspects of AI-powered XML development but also discuss practical implications and possible future directions.
Pushing the limits of ePRTC: 100ns holdover for 100 daysAdtran
At WSTS 2024, Alon Stern explored the topic of parametric holdover and explained how recent research findings can be implemented in real-world PNT networks to achieve 100 nanoseconds of accuracy for up to 100 days.
Essentials of Automations: The Art of Triggers and Actions in FMESafe Software
In this second installment of our Essentials of Automations webinar series, we’ll explore the landscape of triggers and actions, guiding you through the nuances of authoring and adapting workspaces for seamless automations. Gain an understanding of the full spectrum of triggers and actions available in FME, empowering you to enhance your workspaces for efficient automation.
We’ll kick things off by showcasing the most commonly used event-based triggers, introducing you to various automation workflows like manual triggers, schedules, directory watchers, and more. Plus, see how these elements play out in real scenarios.
Whether you’re tweaking your current setup or building from the ground up, this session will arm you with the tools and insights needed to transform your FME usage into a powerhouse of productivity. Join us to discover effective strategies that simplify complex processes, enhancing your productivity and transforming your data management practices with FME. Let’s turn complexity into clarity and make your workspaces work wonders!
The Art of the Pitch: WordPress Relationships and SalesLaura Byrne
Clients don’t know what they don’t know. What web solutions are right for them? How does WordPress come into the picture? How do you make sure you understand scope and timeline? What do you do if sometime changes?
All these questions and more will be explored as we talk about matching clients’ needs with what your agency offers without pulling teeth or pulling your hair out. Practical tips, and strategies for successful relationship building that leads to closing the deal.
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...DanBrown980551
Do you want to learn how to model and simulate an electrical network from scratch in under an hour?
Then welcome to this PowSyBl workshop, hosted by Rte, the French Transmission System Operator (TSO)!
During the webinar, you will discover the PowSyBl ecosystem as well as handle and study an electrical network through an interactive Python notebook.
PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
- For advanced developers: master the skills to efficiently apply PowSyBl functionalities to your real-world scenarios.
UiPath Test Automation using UiPath Test Suite series, part 6DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 6. In this session, we will cover Test Automation with generative AI and Open AI.
UiPath Test Automation with generative AI and Open AI webinar offers an in-depth exploration of leveraging cutting-edge technologies for test automation within the UiPath platform. Attendees will delve into the integration of generative AI, a test automation solution, with Open AI advanced natural language processing capabilities.
Throughout the session, participants will discover how this synergy empowers testers to automate repetitive tasks, enhance testing accuracy, and expedite the software testing life cycle. Topics covered include the seamless integration process, practical use cases, and the benefits of harnessing AI-driven automation for UiPath testing initiatives. By attending this webinar, testers, and automation professionals can gain valuable insights into harnessing the power of AI to optimize their test automation workflows within the UiPath ecosystem, ultimately driving efficiency and quality in software development processes.
What will you get from this session?
1. Insights into integrating generative AI.
2. Understanding how this integration enhances test automation within the UiPath platform
3. Practical demonstrations
4. Exploration of real-world use cases illustrating the benefits of AI-driven test automation for UiPath
Topics covered:
What is generative AI
Test Automation with generative AI and Open AI.
UiPath integration with generative AI
Speaker:
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
zkStudyClub - Reef: Fast Succinct Non-Interactive Zero-Knowledge Regex ProofsAlex Pruden
This paper presents Reef, a system for generating publicly verifiable succinct non-interactive zero-knowledge proofs that a committed document matches or does not match a regular expression. We describe applications such as proving the strength of passwords, the provenance of email despite redactions, the validity of oblivious DNS queries, and the existence of mutations in DNA. Reef supports the Perl Compatible Regular Expression syntax, including wildcards, alternation, ranges, capture groups, Kleene star, negations, and lookarounds. Reef introduces a new type of automata, Skipping Alternating Finite Automata (SAFA), that skips irrelevant parts of a document when producing proofs without undermining soundness, and instantiates SAFA with a lookup argument. Our experimental evaluation confirms that Reef can generate proofs for documents with 32M characters; the proofs are small and cheap to verify (under a second).
Paper: https://eprint.iacr.org/2023/1886
Enchancing adoption of Open Source Libraries. A case study on Albumentations.AIVladimir Iglovikov, Ph.D.
Presented by Vladimir Iglovikov:
- https://www.linkedin.com/in/iglovikov/
- https://x.com/viglovikov
- https://www.instagram.com/ternaus/
This presentation delves into the journey of Albumentations.ai, a highly successful open-source library for data augmentation.
Created out of a necessity for superior performance in Kaggle competitions, Albumentations has grown to become a widely used tool among data scientists and machine learning practitioners.
This case study covers various aspects, including:
People: The contributors and community that have supported Albumentations.
Metrics: The success indicators such as downloads, daily active users, GitHub stars, and financial contributions.
Challenges: The hurdles in monetizing open-source projects and measuring user engagement.
Development Practices: Best practices for creating, maintaining, and scaling open-source libraries, including code hygiene, CI/CD, and fast iteration.
Community Building: Strategies for making adoption easy, iterating quickly, and fostering a vibrant, engaged community.
Marketing: Both online and offline marketing tactics, focusing on real, impactful interactions and collaborations.
Mental Health: Maintaining balance and not feeling pressured by user demands.
Key insights include the importance of automation, making the adoption process seamless, and leveraging offline interactions for marketing. The presentation also emphasizes the need for continuous small improvements and building a friendly, inclusive community that contributes to the project's growth.
Vladimir Iglovikov brings his extensive experience as a Kaggle Grandmaster, ex-Staff ML Engineer at Lyft, sharing valuable lessons and practical advice for anyone looking to enhance the adoption of their open-source projects.
Explore more about Albumentations and join the community at:
GitHub: https://github.com/albumentations-team/albumentations
Website: https://albumentations.ai/
LinkedIn: https://www.linkedin.com/company/100504475
Twitter: https://x.com/albumentations
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdfPaige Cruz
Monitoring and observability aren’t traditionally found in software curriculums and many of us cobble this knowledge together from whatever vendor or ecosystem we were first introduced to and whatever is a part of your current company’s observability stack.
While the dev and ops silo continues to crumble….many organizations still relegate monitoring & observability as the purview of ops, infra and SRE teams. This is a mistake - achieving a highly observable system requires collaboration up and down the stack.
I, a former op, would like to extend an invitation to all application developers to join the observability party will share these foundational concepts to build on:
GraphRAG is All You need? LLM & Knowledge GraphGuy Korland
Guy Korland, CEO and Co-founder of FalkorDB, will review two articles on the integration of language models with knowledge graphs.
1. Unifying Large Language Models and Knowledge Graphs: A Roadmap.
https://arxiv.org/abs/2306.08302
2. Microsoft Research's GraphRAG paper and a review paper on various uses of knowledge graphs:
https://www.microsoft.com/en-us/research/blog/graphrag-unlocking-llm-discovery-on-narrative-private-data/
Generative AI Deep Dive: Advancing from Proof of Concept to ProductionAggregage
Join Maher Hanafi, VP of Engineering at Betterworks, in this new session where he'll share a practical framework to transform Gen AI prototypes into impactful products! He'll delve into the complexities of data collection and management, model selection and optimization, and ensuring security, scalability, and responsible use.
Generative AI Deep Dive: Advancing from Proof of Concept to Production
Arra White Paper V3
1. MARCH 2009
B2G Advisory Services
STRATEGY & MARKET SUPPORT
A $787 B Glass Half Empty or
Half Full?
How Business Leaders can Strategically Approach the
ARRA for Maximum Success
From C-level corporate leaders to general managers, entrepreneurs, program managers and
investors, there is universal interest in the potential opportunities presented by the recently
passed American Reinvestment and Recovery Act (ARRA). At a time when there appear to
be so few avenues for new growth, the size, diversity and rapid rollout of the plan make the
stimulus bill simply too important for companies to ignore, whether they are long-standing
government suppliers or new entrants exploring potential growth areas. With funding flow-
ing to such diverse areas as alternative energy, health information technologies, and infra-
structure projects, a broad spectrum of players is examining its potential near- and long-
ABOUT THE AUTHOR:
JON BARNEY term strategies and the challenges associated with implementing those strategies.
PRINCIPAL
TRADITIONAL RESPONSE
Jon oversees strategy and
consulting engagements for
Over the past decade, when there has been a significant increase in government spending in
aerospace and defense cli-
response to a national emergency (e.g., 9/11, the war in Iraq, or Hurricane Katrina), compa-
ents. Jon has been published
in the Harvard Business nies large and small have responded by pursuing a fairly consistent menu of strategic initia-
Review and was a speaker at
tives to capture a share of this new federal funding (Figure 1).
the World Economic Forum
in 2004.
Unfortunately, these traditional responses have often yielded less than optimal results not
For further information
only for the companies that have tried to implement them, but also the public sector entities
please contact :
jbarney@avascent.com they sought to serve.
THE AVASCENT GROUP 1225 EYE STREET, NW #400 WASHINGTON, DC 20005 (202) 452-6990
2. Figure 1: Traditional Approaches to Capturing Emergency Government Funding
Action Pros Cons
“Throwing” massive resources in Large scale gives a new market/project visibility …but scale replaces strategy akin to a soccer
pursuit of opportunity and importance internally… game of seven year olds – all chase the ball
and nobody is open
Silo approach to new markets Pushes market generation ideas to business …but there is limited coordination across the
levels… company
New product development Results from creativity and entrepreneurship in …but at times due to inadequate processes,
an emerging market… the optimal product solution does not find the
customer
Focus on playing in multiple mar- Aggressive strategy is a powerful driver for com- …but leads to lack of focus and results in not
kets pany growth… performing well in any specific market
Businesses acquired in developing Present opportunity to acquire talent and prod- …but often the acquired businesses’ products
markets ucts that give a dramatic new capability… and models are not fully understood – which
leads to both paying too much and unsuc-
cessful integration
Promise to over-deliver to the end Stretch targets and desire to make customer …but often at the expense of ill-defined re-
customer: the government satisfied are important…. quirements and limited ability to adjust proc-
ess once off-track
Purely tactical approach to markets Additional focus around the specific opportunity …but often leads to getting a short-term con-
and growth at hand… tract “win” but not building a long-term busi-
ness or industry
ultimate attractiveness of which depends as much on future
WHAT MAKES THE 2009 ARRA DIFFERENT
policy choices and private sector efforts as it does on the
While the realities of doing business with the government immediate funding provided through the stimulus package.
will not change overnight, there are specific reasons why a
Scale. As illustrated in the chart below, ARRA will result in
distinctive approach will be required when addressing the
hundreds of billions of dollars of new spending over the
potential opportunities contained in the ARRA. To a
course of the next two years. If, as is intended, this funding
greater extent than the previous cases of rapid increases in
federal spending cited above, the ARRA involves a degree of
Figure 2
complexity, scale, pace of implementation and transparency
Where the ARRA Money is Going
that is wholly unprecedented.
Complexity. While some aspects of the ARRA are relatively $288 B
Tax Relief
straightforward (e.g., tax relief, aid to state and local gov-
State & Local Fiscal
$144 B
ernments), the elements of most direct interest to industry Relief
pose complex challenges for decision-makers. Beyond seek-
Infrastructure & Science $111 B
ing to stimulate growth by simply funding government con-
sumption, a number of the initiatives seek to promote the $81 B
Protecting the Vulnerable
emergence and growth of new technologies and industries.
This will require a significant degree of innovation by in- Health Care $59 B
dustry and a willingness to tackle the complex strategic
Education & Training $53 B
challenges associated with emerging, yet unproven market
opportunities. The closest recent analogy is the growth of
Energy $43 B
the homeland security market in the aftermath of 9/11.
However, with its focus on health, energy, the environment Other $8 B
and infrastructure, the ARRA cuts across far more areas, the
Source: www.Recovery.gov
THE AVASCENT GROUP 2
3. serves as a stimulus for further private and public invest- of the government will be around “doing things right.” As a
ment, the long-term potential opportunities could be sig- result, the ARRA will likely be carried out within an envi-
nificantly larger. Even beyond the simple dollar value of the ronment that places a premium on careful scrutiny and ac-
countability, regardless of whether these ambitions are well-
ARRA itself, the scale and sweep of the various initia-
aligned with the goal of rapid implementation.
tives are dramatic. As the new Administration has
made clear, the ARRA is intended to have significant and
A RIGOROUS APPROACH IS ESSENTIAL
far reaching impact across a number of critical industries,
For industry, there is an urgent need to recognize that old
from energy to healthcare. By seeking not just to stimulate
approaches to capitalizing on the opportunities presented
these industries, but to fundamentally affect their future
by increased government spending are likely to be unwork-
direction, the scale of the impact of the ARRA is potentially
able this time around. Jumping in
vast. While the near term focus is
For industry, there is an urgent need quickly – or standing on the side-
on the ARRA and its implementa-
lines – carries far more risks given
tion, the scale of the long-term
to recognize that old approaches to
the ambitious nature of the Ad-
market potential is far more sig-
capitalizing on increased government ministration’s stimulus efforts. In
nificant that the stimulus bill itself.
spending are likely to be unworkable this environment - akin to building
Pace. The passage of the ARRA
an airplane while flying it and be-
this time around
marks the largest domestic spend-
ing evaluated publicly on success in
ing initiative by the US govern-
real time - a more systematic proc-
ment since The New Deal. Moreover, the bill became law
ess is required for evaluating opportunities and developing
less than 30 days into the new Administration’s tenure. The
a coherent strategy. Despite the pace of current events, sen-
difficult work of implementing its provisions is moving just
ior executives must pursue an approach that focuses on
as quickly, with plans for contract award and reporting re-
solid data, analysis, strategic innovation, coordination and
quirements being developed. Under ambitious timelines,
execution.
departments and agencies would start awarding projects by
The process outlined below meets these requirements by
the end of the second quarter 2009. There are parallels in
first focusing on developing (i) a rigorous External Market
recent years to this implementation timetable (9/11 recov-
View of ARRA-driven opportunity space; (ii) a streamlined
ery and response, Iraq, and Hurricane Katrina). However,
Internal Capabilities Assessment; and finally (iii) a coordi-
the pace envisioned for executing the ARRA – combined
nated Action Plan. Ideally, an executive team would follow
with its scale and complexity and an entirely new leadership
the entire process end-to-end, but it is designed in a modu-
team – makes this an entirely unprecedented endeavor.
lar fashion such that a new market entrant can focus quickly
This raises considerable questions regarding how efficiently
on particular components if needed, and still move seam-
and effectively the ARRA is likely to be carried out, thus
lessly across the entire process.
posing challenges for how industry positions itself for the
near- and long-term.
EXTERNAL MARKET VIEW
Transparency. In response to the perceived excessive se-
The first task is to clearly and systematically answer the
crecy of the Bush White House, and the abuses associated
question; what does the external landscape associated with
with previous emergency spending efforts (e.g., Iraq,
the ARRA opportunities really look like? This involves four
Katrina), the Obama Administration has made greater
key analytic activities.
transparency a central tenant of its governing philosophy.
1. Review and Dissect the Plan. Although the need is obvi-
This emphasis on transparency has only been reinforced by
ous, the process of deeply understanding the content and
the current global financial crisis, which many inside the
implications of the ARRA is not entirely straightforward.
Administration view as at least partially the result of a lack
The scale and scope of activities requires a systematic as-
of transparency. With the creation of www.recovery.gov,
sessment, preferably breaking it down by specific market
which will document ARRA spending in excruciating detail,
segment and sub-segment for each potentially viable oppor-
the Administration has promised the public that the focus
THE AVASCENT GROUP 3
4. tunity space. Moreover, it is critical to understand the scale for them to play. A hypothetical company that produces
and timing of potential awards, responsible agency or agen- advanced technology materials may find only one compo-
cies, type of funding and contracting process, and duration nent of the value chain that makes sense – e.g. in the devel-
of the resulting work. At the same time, this analysis should opment of leading edge technologies to support resource
consider how elements of the ARRA may or may not be extraction. Alternatively, an advanced battery producer may
amplified by the broader agenda the Administration is pur- find the only place to participate is in the storage and distri-
suing. In the end, it will serve as an input into the broader bution component.
strategic approach. Notably, this process must be iterative
In neither case would a new entrant to the marketplace
and should reflect ongoing proposals and projects.
likely have the core competencies to compete in other seg-
ments of the market (e.g., Consumers) unless the firm were
2. Evaluate the Value Chain. In too many cases, a firm will
to undergo a complete reinvention. By breaking down the
jump directly from its initial opportunity assessment to exe-
value chain, companies will be better able to focus on the
cution planning, without taking the time to systematically
opportunities that present realistic paths forward.
understand where its potential play might be strongest.
However, as a starting point for an entry into an evolving
3. Component Breakdown. Once the value chain is dis-
market, an analysis of the market’s value chain is essential.
sected, a more complete breakdown of the market dynamics
This applies to all new sectors affected by the ARRA,
around a particular segment is essential. This must cover all
whether in energy, health IT, infrastructure, or homeland
of the typical strategic questions of market size, technology
security.
trends, customers, major competitors, and barriers to entry.
By way of example, the following diagram (Figure 3) illus- As an example, for the aforementioned advanced battery
trates a high-level value chain for the energy sector. Given producer, a key area of focus along the value chain could be
the complexity, scale, and global reach of the industry, com- the “Storage” segment with an eye toward understanding
panies must choose carefully where it makes the most sense the power generation market in solar and fuel cells.
Figure 3: Sample Value Chain
Energy Market Value Chain
Energy Market Value Chain
Efficiency Improvements
Incremental changes/improvements in the field generate efficiencies across the cycle
Power
Lifecycle
Resource Resource Distribution Storage Consumers Waste Waste to
Phase
Generation
Extraction Refining Disposal & Energy
Remediation
Key Industries
Oil and Gas
Battery, Auto Individual
Exploration, Oil and NG Public Firms, Public Waste and
Involved
Industry, homes, Nuclear, Coal,
Extraction, Refiners, Utilities, Utilities, byproducts
Chemical, industry, other Carbon-
Mining, Biofuel Factories, Transport & Power
Public utilities, based Energy
Agro- Producers, Individuals Logistics generation
Utilities government
business, Chemical Industry
Competitor
Activities
Engineering, Research RDT&E Engineering, RDT&E Limited Major Provider Limited
to Date
Logistics, & and Support and Logistics, & Support and RDT&E to Government RDT&E
Transport Development Limited Transport Limited Customers
Support Support Production Support Production
RDT&E
Research and development bring about improvement across the value chain
THE AVASCENT GROUP 4
5. adjacency. Ideally, any new opportunity will be both suffi-
4. Opportunity Analysis. The final step in understanding
ciently large and sufficiently close to the core business that
the market potential is to assess opportunities identified
it should clearly be pursued. For the hypothetical battery
through the value chain and market segmentation along
manufacturer, the Advanced Battery Technology initiative
two criteria: ROI and segment complexity. All opportunities
is an obvious case in point. Equally obvious, businesses
are not created equally based on either potential return or
with lower and riskier ROIs that are not close to the core
on ease of entry. Depending on a particular company’s risk
should be avoided. The primary challenge comes from the
profile, R&D capabilities, manage-
opportunities that are somewhat
ment team, etc, different ap-
While each opportunity is unique, it outside the core, but nevertheless
proaches to different technologies
is essential to not underestimate the are sufficiently large that they be-
will be required and a mixed ap-
come intriguing.
proach of near-term small wins
challenges involved in moving to an
may be combined with longer-
While each opportunity is unique,
unrelated market
term, potentially riskier but higher
it is essential not to underestimate
return bets. A critical question,
the challenges involved in moving
therefore, is whether a new entrant could succeed through
into an unrelated market, even if it has a long-term poten-
application of existing or evolutionary innovations or
tial return. Such a challenge may be manageable for some
whether success would demand dramatic, revolutionary
businesses, but not for all. As a result, companies should err
breakthroughs.
on the side of staying closer to the core regarding ARRA
opportunities rather than pursuing distant opportunities in
INTERNAL CAPABILITIES ASSESSMENT
hopes of staking footholds in unconnected market areas.
Having surveyed the external landscape, the analysis must
7. Review of the Gaps. For both current and potential cus-
turn inward to clearly assess how well existing business
tomers, real-time market feedback regarding ARRA oppor-
models and capabilities are aligned with the emerging mar-
tunities needs to be evaluated. This is especially true for
ket opportunities. The core question therefore becomes:
markets that are still evolving, where few players really have
“How is my business positioned today relative to the emerg-
a grasp of market dynamics. This type of customer discus-
ing ARRA opportunities?”
sion should focus on the specific market segments that have
5. Vision Alignment. While there may be tremendous op- risen to the surface based on the analysis conducted to this
portunities for some businesses in health IT, alternative en- point. It should be designed to support or refute what by
ergy, infrastructure, or cyber-security, all companies need now should be a considerable focus on a few select market
not play in all areas, particularly if it represents a move into opportunities. Key questions to be asked include the follow-
a wholly unconnected line of business. Making this choice ing:
comes down to a fundamental discussion of the company’s
Who are your suppliers, customers, and partners
vision and a review of where it wants to be in the future.
today?
Consequently, regardless of the lure of near-term revenues,
the firm’s senior leadership must ask two basic questions: What are your key interests/needs around ARRA
Is the emerging business sector(s) in my core business opportunities (e.g., Advanced Battery Technology,
Advanced Storage Techniques, Fuel Cells, etc.) –
today?
cost reduction, quality, productivity, etc?
If it is not in my core, do I want to change my core
Where is your business going with respect to this
business in some way and invest significantly in new
new technology/market?
sectors?
When (if at all) will your business be impacted by
6. Evaluate Adjacency. Once respective ARRA opportuni-
this changing market that is being impacted by the
ties are determined to be part of a current or future core
ARRA?
business, the next step is to evaluate the closeness of the
THE AVASCENT GROUP 5
6. How can our business help you with regard to this Figure 4
changing market? ARRA Organizational Models
ARRA Organizational Models
Why would you want to change the way you do Incubator
Integrated
business today in response to these changing tech-
Parent Company Parent Company
nologies?
8. Your Business or Outside Acquisition. A final step be-
New New
fore moving to implementation is to evaluate the potential Business Business
segments and determine whether partners or acquisitions
will be necessary to penetrate the identified ARRA opportu- • Develop & Grow within • Develop & Grow outside
existing structure current structure – but with
nity space, as it is often the case that the internal capabilities expectation integration
• Best utilized when
analysis highlights deficiencies in areas core to the market occurs
emerging business “fits”
in question. closely with an existing • Best utilized when the
product, strategy, and emerging business
organizational support
To the extent that acquisition of new capabilities is deemed represents a “step change”
from existing strategy or
essential, senior leadership should execute a systematic product mix or if new
leadership is needed
process for identifying prospects. This “funnel exercise” will
screen the universe of potential targets by a number of key
criteria such as range of revenue, product, company per- portunities, the initial reaction is often to try and jump at
formance, location, and customer base. When conducting many of them at once, but this will not lead to long-term
the funnel approach, the “front end” should be sufficiently success. A more effective approach would be to ask several
large to ensure a complete picture of the landscape is questions before moving ahead:
achieved. In addition, the “back end” should be sufficiently
Am I today or can I become a market leader in this
small with robust and discerning criteria so only a handful
particular emerging business?
of relevant profiles remain. The key to any such effort will
Can I deliver products and services around this op-
be speed given the pace of the market’s development.
portunity as early as mid 2009 and continue aggres-
ACTION PLAN sively through late 2010?
Having determined that there are attractive opportunities
Do I have a team in place right now that can get me
for the firm within the ARRA, the next set of questions is
there and if not, am I confident I can find the team
centered on the following: “How do we develop and execute
who can?
a winning strategy?”
11. Assemble Integrated Team. One common weakness of
9. Placement within Organization or Position. Many of
pursuits of large government awards in recent years - such
these ARRA-supported opportunities will require signifi-
as those resulting from Iraq, Katrina, and 9/11 - is an unco-
cant changes in terms of product offerings, business models
ordinated “silo approach.” This approach is in many cases
and corporate strategies. Whether a Fortune 100 business or
driven by a strong point person (e.g., business development
a technology-driven start-up, the question of how to struc-
or capture) that nevertheless lacks a supporting cast with
ture itself organizationally to pursue these new opportuni-
other critical competencies. As a result, the organization as
ties will be critical. Given the need for speed and innova- a whole lacks the ability to bring its full capabilities to bear.
tion across these segments, senior management must ask Typical pitfalls of this approach have included:
the hard question as to whether the existing structure will
Significant over-selling of capabilities by the busi-
support and enhance the growth of an emerging area. If
ness development organization without coordina-
not, then the firm should explore how it might “incubate”
tion by the team actually delivering the products and
the business separately.
services;
10. Limit Scope. Given the sheer scale and diversity of op-
THE AVASCENT GROUP 6
7. Figure 5: Optimal Organizational Design
Business Function Common Pitfalls Optimal Roles
Directive in approach to opportunities Coordinate activities of team members such as
C Level
strategy
Develop strategies without business/technology feed- Size markets, partners, and opportunities
Corporate Strategy/M&A
back loop based on strong business input
Have strategies directed to them which limits effective- Drive the activities and work closely on the
Program Managers
ness front end
Success in winning business but over-commit capabili- Coordinate with other components of team so
Capture Support
ties not operating in a silo
Strong on “identifying dollars” but limited scope in de- Become a more strategic partner to evaluate
Washington Operations
veloping overall strategy opportunities instead of tactically “looking for
dollars”
Often operates in a silo outside of the business deci- Bring in early in the process to evaluate viabil-
CTO
sions and brought in only when technical problem oc- ity of potential new opportunities
curs
Often does not exist Some top performers need to be devoted to
Rapid Response Team
the rapid winning and delivery of projects
Becomes engaged only when there is a specific talent Engage earlier in process to predict where
Human Resources
shortage talent shortfalls could occur
Reactive when a problem occurs Assign at the front end and keep highly en-
Compliance
gaged at all times
Top down approach to opportunities in which a di- stage for process and regulatory breakdowns.
rective is given at a senior level to pursue an oppor- Despite the calls for urgent action, firms must recognize
tunity without having an underlying analysis by rele- that the constraints and scrutiny inherent in government
vant team members as to whether it makes sense; contracting will not go away. Indeed, the President has
and made it clear that every dollar spent will be subject to un-
Limited feedback mechanism and checks/balances precedented transparency and accountability. For those
able to build the processes and procedures to execute
because only one portion of the organization is highly
within this environment, the opportunities will be substan-
engaged in the new opportunity.
tial. However, firms that place expediency over careful
In response to ARRA, a significantly more integrated ap-
compliance are likely to find that their actions undermine
proach should be implemented to optimize the chances for
their long-term prospects, even if they lead to short-term
success. This includes coordination across the C-level lead-
gains.
ership, technology heads, government operations experts,
CONCLUSION
business development and capture leaders, corporate devel-
opment, human resources, and compliance.
The ARRA represents both a unique challenge and a tre-
12. Nail Execution. Once the decision has been made to mendous opportunity for companies that can innovate,
move forward with particular opportunities from the deliver, and effectively manage growth. It will immediately
ARRA, execution becomes critical. While the systematic fund and potentially cause significant growth in innovative
process outlined above should improve the odds of success, sectors in the future such as alternative energy, health IT,
there remain considerable execution risks that must be and infrastructure. An analytical and systematic approach
managed carefully. These risks will be amplified because the will not guarantee success but will reduce the likelihood of
government will be trying to execute programs on a scale pitfalls for both companies and the government that have
and scope that will strain their capacity, hence setting the occurred. over the last decade.
THE AVASCENT GROUP 7
8. THE AVASCENT ADVANTAGE
The Avascent Group is the leading management consulting firm specializing in serving senior executives in the defense,
aerospace, homeland security, logistics, technical services and infrastructure sectors. Avascent provides a full range of man-
agement consulting services, from strategic planning to market analysis to organizational and operational improvement.
Our consultants combine our deep market knowledge with proven rigorous market validation and strategic planning meth-
odologies to provide invaluable decision support to our clients.
THE AVASCENT GROUP 8