IFS AEROSPACE & DEFENSE MARKET STRATEGY IFS CUSTOMER SUMMIT 2011, CHICAGO
GRAHAM GROSE GLOBAL INDUSTRY DIRECTOR AEROSPACE & DEFENSE GRAHAM.GROSE@IFSDEFENCE.COM IFS AEROSPACE & DEFENSE MARKET STRATEGY
4 INTRO VIDEO Sales Conference Winning with Agility
WHAT IS AEROSPACE & DEFENSE...OR IS IT AEROSPACE & DEFENCE? MILITARY MARKET A&D IN SERVICE SUPPORT & ASSET COMMERCIAL AVIATION DEFENSE MANUFACTURING Manufacturing/OEM Solutions Military End User Solutions PBL, CLS, CfA, Training, HR, Doc Man, Dockyard Soutions etc 5 IFS AEROSPACE & DEFENSE MARKET STRATEGY
WHAT IS AEROSPACE & DEFENSE...OR IS IT AEROSPACE & DEFENCE? American English The Queens Oxford English 6 IFS AEROSPACE & DEFENSE MARKET STRATEGY
WHAT DOES AN A&D PROSPECT LOOK LIKE? WHERE ARE THEY IN AEROSPACE & DEFENSE? Navy, Army or Air Force? Aircraft Engine overhaul shop? Defense Manufacturer? Commercial Aviation? Shipbuilder? Defense Industry Services Provider? Naval Dockyard? Military Support Chain Manager? System Integrator? Military Forces? Airport Manager? 3rd Party Component repair and/or overhaul shop? Military Equipment Fleet Operator? Heavy/depth maintenance organisation, operator or a standalone 3rd party MRO provider? 7 IFS AEROSPACE & DEFENSE MARKET STRATEGY
THE A&D VALUE PROPOSITION If I know what I have If I know what spares I should hold If I know what condition it is in If I know how to maintain it If I know where my staff are and what skills are needed...and if I can plan all of that together... Then I know what Military Force I can deploy What? IFS Applications - formed into low risk/low TCO defense specific Template Solutions Low risk architecture - designed from conception to be based upon an SOA foundation using open architecture Low programme risk no early commitment in long defense programmes Low risk agile construction accommodates military requirement changes (or requirements creep that always happen!) 8 IFS AEROSPACE & DEFENSE MARKET STRATEGY Then I know what profit I can make
IFS IN A&D MARKET SHARE IFS holds the leading market position in Aerospace & Defense Enterprise Asset Management 2008 Latest - 2009 Report is 40% market share Sourced from: Enterprise Asset Management Solutions Worldwide Outlook 9 IFS AEROSPACE & DEFENSE MARKET STRATEGY
IFS IN A&D A FEW CUSTOMER EXAMPLES 150 Customer Sites c100,000 A&D Users A&D was approx 25% of IFS Sales 2010 Some 70 installed Customers..... in 31 Countries across all 6 Continents 40% of global Asset Management A&D market Lufthansa Technic Qantas 10 IFS AEROSPACE & DEFENSE MARKET STRATEGY
ADD A&D BEST PRACTICE SOLUTIONS TEMPLATED SOLUTIONS OUR SOLUTION IFS APPLICATIONS Application of Domain Expertise Templates for A&D Solutions using selected components Embedded Best Practice Process Models Pricing Model Benefits Domain Knowledge Aerospace/Military Industry Systems Faster Implementation - Pre-defined meta-data, standard Industry Interfaces, development, Governance and A&D Roadmap low risk, low TCO Certified Product Training 11 IFS AEROSPACE & DEFENSE MARKET STRATEGY
ADD OPTIONS - PARTNER OPTIONS PARTNER EXTENSIONS Harnessing best commercial practice to deliver extended IFS functionality IFS A&D Corporate Performance Management View the business from a holistic viewpoint, delivering benefit with real-time management information IFS A&D Dynamic Military Inventory Optimisation Optimising investment to maximum availability IFS A&D Automated data capture technologies Eliminates loss and downtime by Global Asset Tracking IFS A&D RFID for the Military Supply Chain Assured success by utilizing today s existing data acquisition infrastructure IFS A&D Advanced Supply Chain Execution Optimal inventory storage and delivery to the final destination In partnership with In partnership with In partnership with In partnership with In partnership with 12 IFS AEROSPACE & DEFENSE MARKET STRATEGY
INDUSTRIES PAINS
WHAT IS AEROSPACE & DEFENSE...OR IS IT AEROSPACE & DEFENSE? MILITARY MARKET Industry Customer A&D IN SERVICE SUPPORT & ASSET COMMERCIAL AVIATION DEFENSE MANUFACTURING Manufacturing/OEM Solutions PBL, CLS, CfA, Training, HR, Doc Man, Dockyard Solutions etc Military End User Solutions Military Customer 14 IFS AEROSPACE & DEFENSE MARKET STRATEGY
Industry involvement. Risk, but significantly enhanced revenue potential AEROSPACE & DEFENSE IT S CHANGING TRANSFORMATION Contracting for Capability Contracting for Availability Spares Inclusive Traditional Provide r MOD Role Decider Moving up the staircase exploits industry s strengths by utilising Service Based Contracting to deliver equipments as a capability buying performance, not transactional good and services 15 IFS AEROSPACE & DEFENSE MARKET STRATEGY
THE A&D PAINS MAINTAINING OPERATIONAL EFFECTIVENESS Extended use of Defense equipments - Typically used from 10 to 30 years and significantly increased equipment complexity Need to manage resources and skills better due to increased regulatory requirements - A particular problem with aircraft maintenance PROJECT THROUGH THROUGH LIFE LIFE SUPPORT OPERATIONAL EFFECT Impact of Operational tasking (Increased) - Major transformation in global Defense Forces with more flexible roles and increased tasking DEFENSE BUDGET & RESOURCES Challenging Defense Budgets - Problem enhanced through credit crisis Increased demand for MOD/DOD process efficiency - Generally driven be government DEFENSE demand SERVICE BUDGET & ASSET RESOURCES 16 IFS AEROSPACE & DEFENSE MARKET STRATEGY OPERATIONAL SUPPLY CHAIN EFFECT OPERATIONAL TASKING Impact of Operational tasking (Operational Readiness) - Increased need for high agility and operational readiness OPERATIONAL MANUFACTURING against TASKING unspecified forces
CUSTOMERS REQUIREMENTS 17 Sales Conference Winning with Agility
SUCCESS NEEDS GOOD INFORMATION Success depends on a partnership between Industry and the Operator (be it MOD/DODs/Aerospace) Information is key enabler Information needs of MOD/DOD/Industry change Shared Data is Critical To understand risks in contracting and bidding To exploit benefits (improve availability & efficiency, cost savings & profit) To establish trust IFS Market Success...and this needs an e2e IFS information capability for success A Common view of performance 18 IFS AEROSPACE & DEFENSE MARKET STRATEGY
RECENT SUCCESS
SUCCES STORIES IN A&D 3 CASE STUDIES The quick sale The long term partnership Jointly managing the Complex Customer 20 IFS AEROSPACE & DEFENSE MARKET STRATEGY
THE QUICK SALE THE SALES PROCESS Alitalia Maintenance Systems (AMS) was in the process of being fully outsourced/independent from Alitalia Existing SAP solution + other legacy systems to be replaced spent 2 years evaluating then decided to find something new hence the contact with IFS 21 IFS AEROSPACE & DEFENSE MARKET STRATEGY
THE QUICK SALE LESSONS LEARNED An A&D sale does not have to take 3-5 years 8 months from initial contact to signature. Introduce industry experts early in the sales phase even for a first meeting to qualify properly Multi-national teams challenging in implementation Must have clear agreements (internally) in place to secure resources and funding etc IFS /IFSD TPA arrangements is crucial clear, corporate, advanced agreement incentivised everybody no need for opportunity by opportunity agreements Global References are crucial LTQ Engineering in Australia (prev Jet Turbine Services) 22 IFS AEROSPACE & DEFENSE MARKET STRATEGY
THE LONG TERM PARTNERSHIP Became a customer of IFS back in mid-1990 s. Strategic plan and dedicated team of people - from IFS Scandinavia working with the account. IFS Applications - now part of Saab s support offering to the market. The first major contract - IT support for operation and maintenance of the aircraft system SK 60 went live January 2011 Over the years Saab have invested 150m SEK - forecast/ orders 2011-2013 is roughly 100m SEK (in addition is the Export Sales partnership) 23 IFS AEROSPACE & DEFENSE MARKET STRATEGY
THE LONG TERM PARTNERSHIP CORPORATE AGREEMENT & PARTNERSHIP OPPORTUNITIES Corporate agreement with SAAB Group and Partnership Agreement with SAAB Aerotech in 2009. SAAB to use IFS Applications across company and offer IFS Applications to SAAB customers world wide SAAB using IFS Applications when undertaking internal and external customer work SAAB Aerostructures SAAB Aerosystems SAAB Microwave SAAB Avitronics / SAAB Systems SAAB Bofors Dynamics SAAB Training SAAB Underwater SAAB Space SAAB Aerotech A&D IN-SERVICE SUPPORT & ASSET IFS Applicaitons in use for ERP, PDM, MRO, Maintenance, Document etc in the following business units, with some 10.000+ users 24 IFS AEROSPACE & DEFENSE MARKET STRATEGY
THE LONG TERM PARTNERSHIP SAAB/MILITARY EVOLVING WITH IFS SUPPORT SAAB Space. No 1 Satellite and Launcher Equipment Supplier SAAB Aerotech. PLM offering for aftermarket support SERVICE & ASSET MANAGEMENT PROJECT SUPPLY CHAIN SAAB Aerostructures and Aerosystems. CoE for defense products, incl the Gripen fighter jet MANUFACTURING TAGS: Aerospace, Defense, Air, PLM, Engineering, Projects, MRO, After Market, Sweden SAAB Group The Saab Group, develops and manufactures aero structure assemblies as partner to Airbus and Boeing. Saab Aerostructures is the center of excellence within Saab AB for aero structures to Saab defense products. Saab Aerosystems, also part of the Saab Group, offers advanced airborne systems, related sub-systems and services during a products whole lifecycle to defense customers and aerospace industries on the world market. Saab Aerosystems includes the multi-role combat aircraft, Gripen. Saab Aerotech consolidates the broad range of aftermarket support capabilities within the Saab Group into a single business unit with overall responsibility for support and service of Saab s civil and defense products and systems. Benefits: Single, integrated suite of industry specific business applications; lower system maintenance costs; rapid implementation for the size of the project; knowledge retained in the business unit; scalable solution, long-term, committed business partner. Software: IFS/Project Management, IFS/Manufacturing, IFS/Distribution, IFS /Engineering, IFS /Maintenance, IFS/Financials, IFS/Business Modeler, IFS/Vehicle Information Management 25 IFS AEROSPACE & DEFENSE MARKET STRATEGY
JOINTLY MANAGING THE COMPLEX CUSTOMER GOING THE EXTRA MILE FOR THE INDIAN AIR FORCE emms Maintenance Management for the IAF Sales process started in 2007 Huge team involved - has done a fantastic job Up for decision in 2011 Scope Aircraft Fleet Guided Weapon Systems Air Defense Radars Safety Equipments Communication Systems Ground Support Equipments Armaments Mechanical Transport IAF Squadrons (Fleet Managers) - First Line IAF Base (Maintenance Control Centre) Second Line Repair Depots 3 rd & 4 th Line Maintenance 170 Bases - 550 Squadrons - 70,000 Users 26 IFS AEROSPACE & DEFENSE MARKET STRATEGY
JOINTLY MANAGING THE COMPLEX CUSTOMER COMPETITION & CONSORTIUM BAeHAL Consortium BAeHAL, IFS, IBM (stack of software, servers), HCL (peripherals), Corena (tech pub), Oracle (thru IFS) System Integrator TCS WIPRO CMC Infosys Satyam BEL BAeHAL Product SAP Maximo MIRO Maximo SAP SAP IFS 27 IFS AEROSPACE & DEFENSE MARKET STRATEGY
WHERE WE ARE HEADING IN A&D IN 2011
IFSD: LAND DOMAIN GD Radio Support Export Delivery US Army Depot Maintenance James Land BAE Systems Global R&S eg Schofield GD FRES Vehicle Selection LM SOFCLS Reinstatement LM Selection for Project Alexander (NZ)
IFS - LAND SOLUTION BRITISH ARMY MRO Functionality to enable Whole Fleet Management Joint Asset Management and Engineering Solution (JAMES) - manages all land equipment used by the UK Army, Royal Air Force and Royal Navy UK Army In-Barracks and deployable asset Management solution. Manages ground platforms and their MRO for significant Components Includes Tri-Service enhancement Full engineering support, links to other MISs and integration with BI, Land platform HUMS; for ground equipments and all their repairable components MILITARY MARKET 30 Largest and most significant logistics capability programme in the UK MOD with more than 9,000 users IFS MRO BASED STRATEGY FOR LOGISTICS SOLUTIONS 2009 IFS
US ARMY IFS Applications will implement its maintenance and manufacturing solutions within the US Army Logistics Modernisation Maintenance program (LMP) at all of the Army s arsenals, depots and ammunition plants The US Army AMC manages a maintenance and production enterprise that equates to a Fortune 100 sized industrial organisation IFS solution will improve efficiency of maintenance of ground vehicles, missiles, radar support systems, engines, transmissions, and fixed and rotary wing aircraft Scope Corpus Christi Army Depot Rock Island Arsenal Watervliet Arsenal Anniston Army Depot Red River Army Depot Pine Bluff Arsenal Letterkenny Army Depot Tobyhanna Army Depot Sierra army Depot Ammunition Activities at 4 sites 31 EXAMPLES OF CUSTOMER SUCCESS STORIES 2009 IFS Tobyhanna Army Depot Corpus Christi Army Depot
IFS: AIR DOMAIN SAAB Corporate Agreement FAA Asset Management Selection C5 Fleet Planning being rolled out to AC130 Aircraft JSF Progress Supply Chain and Maintenance BAE HAL & Indian e-maintenance Bid F16 Poland Support Contract with LM nearing conclusion ISE Technology Transfer programme Alitalia - AMS 5 Year Eurofighter IERS Support Contract M7 & Sabreliner
TORNADO PBL - BENEFITS UK RAF TORNADO ATTAC IFS Supporting BAES providing ATTAC (Availability Transformation: Tornado Aircraft Contract) guaranteed availability of Tornado aircraft for UK RAF. A PBL Solution Key Facts/Figures Pilot, signed 2001 (extended support of Avionics items) 2001: partnered approach to repair structural items 2002, 8 year power by the hour contract for the radar 2004: 10 year support service for 2 nd power system (SPS) 2005: Combined Maintenance & Upgrade (CMU) contract 2006, ATTAC, Phase 1, 947m Performance Radar availability 98%, savings > 5m SPS support 35% less than historic cost CMU reduce cost of supporting fleet by 100m 85% of LRUs exchanged within an < hour SPS savings 20-40% vs traditional support CMU reduced maintenance manhours by 50% Support has been undertaken at 23% less than the historical costs MOD savings: 510 million over 10 years Includes on-aircraft maintenance, spares & technical support &training Key-to-Success: Delivered in incremental stages, based on incremental IS A&D IN-SERVICE SUPPORT & ASSET 33 IFS AND PBL SUPPORT 2009 IFS
GE PBL COMPLEX ENGINES GOVERNMENT INDUSTRY LOGISTICS SUPPORT IFS and GE support PBL service for Super Hornet Fighter GE Aircraft Engines - has deployed IFS maintenance enterprise software to support servicing of the U.S. Navy s F414 and F404 powered F/A-18 E/F Super Hornet fighter. Being used by the Government Industry Logistics Support (GILS) program within GE Aircraft Engines. IFS modules for purchasing, inventory, customer orders, work orders, planning and configuration management. A&D IN-SERVICE SUPPORT & ASSET 34 IFS AND PBL SUPPORT 2009 IFS
IFSD: NAVAL DOMAIN Portsmouth Dockyard Upgrade Programme UMMS Support Contract and Roll Out Training Data Build for Surface and Submarine Fleets Royal Fleet Auxiliary UMMS Roll Out and Training GD NASSCO Austal - USN
UK NAVAL LANDSCAPE (MAJOR SYSTEMS) IFS IS THE PRIMARY UK NAVAL SOLUTION HM Dockyard Faslane HM Dockyard Rosythe IFS: Dockyard ERP IFS: Dockyard ERP MOD Abbeywood IFS: UMMS Ashore RN Submarines (Astute Class) RN Surface Fleet IFS: UMMS on-board Royal Fleet Auxiliary IFS: UMMS on-board UK MOD Hosting IFS: UMMS Hosting centre IFS: UMMS on-board HM Dockyard Devonport IFS: Dockyard ERP HM Dockyard Portsmouth IFS: Dockyard ERP 36 UK MARITIME PICTURE 2009 IFS
IFS UMMS UK RN UNIT MAINTENANCE MANAGEMENT SOLUTION IFSD Computerised maintenance management system used on all UK RN platforms MILITARY MARKET Key Functional Capabilities Enables effective administration of maintenance strategies Delivers Reliability Centred Maintenance (RCM) through use of IFS RCM Toolkits Handles Conditioned Based Maintenance Facilitates pro-active and corrective action in multiple platforms of disparate types Two-way synchronisation of shore and deployed platforms Reporting and feedback capability - Cross Platform Views Platform asset configuration management Live in over 50 UK RN Platforms Radar maintenance Existing 70519 Hrs over 5 years After UMMS RCM reduced to 26150 Hrs over 5 years Combat System maintenance Existing 540 Hrs annually After UMMS RCM reduced to 190 Hrs annually Power Generation maintenance Existing 707 Hrs annually After UMMS RCM reduced to RCM 457 Hrs annually 37 IFS END-TO-END SOLUTIONS FOR A NAVAL ENVIRONMENT 2009 IFS AC power generation & distribution reduced to 291 Hours (45%) Signature management reduced to 320 hours (40%) Steam system reduced to 144 Hours (65%) Diesel Generators reduced to 383 Hours (62%) HP Air system reduced to 243 Hours (52%) Radar & ESM reduced to 437 Hours (65%) Lub Oil sys reduced to 86 Hours (69%) Sonar reduced to 1212 Hours (45%) External Comms reduced to 829 Hours (88%)
UK FLEET HMS VICTORY IFS manages multiple Platforms for the UK RN.some not so modern! Admiral Nelson s Flagship 1765 The oldest commissioned warship in the world! One of the many assets managed on the IFS implementation at the BAES, Portsmouth Dockyard 38 UK MARITIME PICTURE 2009 IFS
CLOSING VIDEO 39 Sales Conference Winning with Agility
www.ifsworld.com THIS DOCUMENT MAY CONTAIN STATEMENTS OF POSSIBLE FUTURE FUNCTIONALITY FOR IFS S SOFTWARE PRODUCTS AND TECHNOLOGY. SUCH STATEMENTS OF FUTURE FUNCTIONALITY ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS ANY COMMITMENT OR REPRESENTATION. IFS AND ALL IFS PRODUCT NAMES ARE TRADEMARKS OF IFS. THE NAMES OF ACTUAL COMPANIES AND PRODUCTS MENTIONED HEREIN MAY BE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS. 2011 IFS