Rapheal Holder From Platform to Service in the Network Centric Value Chain October 23, Internal Information Services
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1 Rapheal Holder From Platform to Service in the Network Centric Value Chain October 23, 2003 Internal Information Services
2 Outline Background Northrop Grumman Service Business Models Service as primary business Service growth from platform
3 Leadership in Key Business Areas Electronic Systems Information Technology Integrated Systems Ship Systems/ Newport News Mission Systems Space Technology 2003E Revenue ~$6.1B ~$4.7B ~$3.7B ~$5.2B ~$3.9B ~$2.5B Airborne Radars C 4 ISR Electronic Warfare Navigation & Guidance Military Space Homeland Security C 4 ISR Government IT Infrastructure Science & Technology Information Security/ Assurance Enterprise Solutions Homeland Security Tactical Aircraft Long Range Unmanned Airborne Early Warning & Surveillance Air-to-Ground Surveillance Airborne Jamming Naval Systems Integrator Surface Combatants Amphibious Assault Ships Auxiliary Ships Command, Control and Intelligence Missile Defense BMC 3 Defense/Civil Military Avionics Software Application Cutting-edge Microelectronics Dev. Information Warfare Homeland Security Intelligence, Surveillance, Reconnaissance Aircraft Carriers Digitized Battlefield Attack ICBM Sys. Mgmt. Laser Weapons Submarines Military SATCOM Scientific Satellites
4 A Revolution in Business Operations in Response to The Revolution in Military Affairs That Is Under Way Transformation of the Company Northrop System of Systems C 4 ISR Architecture Global Leader in Next Generation Combat Environment Vought Aircraft Transformation of Customer Perspective Northrop Grumman Grumman Vought Aircraft Westinghouse Electric Defense Systems Logicon INRI Ryan DPC California Microwave Navia Comptek FDC Sterling Fed Sys Group Litton Aerojet Newport News TRW
5 The New Northrop Grumman 82% 1993 $5.4B Sales 11% 7% 34% Electronic Systems Ship Systems / Newport News Information Technology Integrated Systems Mission Systems Space Technology Component Technologies 27% 2001 $13B Sales 3% 13% 23% 2003E $26B Sales 20% 23% 18% 9% 15% 15%
6 Challenges of Growing Service Sectors in a Product -Focused Company Information Technology (IT) Grew Organically and Through Several Acquisitions Over a Decade Capital Assets vs. Intellectual/Human Assets Delivery to Customer as the End of the Value Chain vs. Ongoing Customer Engagement as the Entire Value Chain ERP vs. CRM Mission Systems (MS) A Single Recent Acquisition Benefited from IT Sector Growing Pains Northrop Grumman is Evolving a Balanced Service/Product Value Proposition
7 Electronics Growing service value proposition by reducing complexity in customers service experience Providing one stop Common look and feel Simplified/consolidated contracts Examples Established Logistics Service Division to support our own and other customers product lines Life Cycle Support for the Advanced Seal Delivery System (ASDS) Warner Robins Regional Support Center (WRRSC)
8 Integrated Systems Examples TSSR for JSTARS Total Systems and Support Responsibility Implementation of Best Value Practices Successful Partnering With the Depot TSSP for B-2 Total Systems and Support Partnership Modeled after TSSR Streamlined the support process, made one system and one authority responsible AF requirements NG mod and overhaul requirements Flight Test requirements
9 Global Hawk Services Provides on-site services to deployment air vehicles. Actual remote control services of the av Offloading data and feeding it to whomever needs it. Global Hawk played an extraordinarily important role in focusing precision air power, an Air Force source said yesterday, estimating that it quickened the Republican Guard's defeat by several days and is responsible for scores of tank kills. Washington Times, 3 Apr 03
10 Maintains and overhauls a wide range of U.S. Navy nuclear and conventionally-powered ships including aircraft carriers, surface ships, and submarines as well as a variety of commercial ships. Also provides technical and life cycle logistics services. Wherever nuclear powered aircraft carriers are maintained NN has a presence. Newport News can mix the right talent for the best value to maintain and modernize the nuclear carrier fleet. Newport News Services Supply Chain
11 Services Enhancing Value in Product Oriented Market Segments Simplifying the Customers Service Experience Establishing a Service Business Unit within a Product Oriented Sector Partnering with Customers Depot Maintenance Accelerating Deployment into Missions Extending Stable Revenue Streams Beyond Product Development Life Cycle Northrop Grumman has Transformed From an A&D Manufacturer to a Balanced Provider of Product and Service Solutions
12
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