Military Defense Market - Project Case Studies
Projects:
- Unmanned Air Vehicles-Smart Actuators and Motors- Market Opportunity Analysis
- Sustainment Opportunity Analysis-Military Platforms, Upgrade and Retrofit-Market Assessment
- Energy Efficient-Mobile Power Solutions (Batteries and Chargers) For US Military Applications
- Foreign Military Market Opportunities-European MOD Strategy Analysis
- Irregular Warfare-Stability Operations-Counterinsurgency Market Opportunity Assessment
- Smart Phone Tactical Military Communications-White Space Opportunity Assessment
- Ground Vehicle System Upgrade-Price to Win Analysis-Contract Opportunity Pursuit
- Overseas Depot-Level Repair of US Military Platforms -Future Trend Assessment
- Overseas Supplier Of Electro-Optical Products-US Military Market Assessment
- Private Security Services-US DOD, Defense Contractor Facilities-Market Opportunity Assessment
- Price To Win-Competitive Assessment-Fighter Aircraft Communications System Upgrade
- Active Vibration Control-Military Applications Market Analysis
- Web-Based Military Training Market Assessment
- Price To Win Analysis-Naval Craft, Shipyard- System Competition
Unmanned Air Vehicles-Smart Actuators and Motors- Market Opportunity Analysis |
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Problem |
A leading supplier of actuator and power solutions was concerned it lacked sufficient current understanding of emerging opportunities in unmanned aircraft and related platforms. DOD's changing mission, based on new enemy threats, called for greater emphasis on energy efficient and lower weight components which required significantly different guidance and energy components. This translated directly to a need for improved actuation and power technologies. |
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Solution |
STS segmented this diverse market into primary and secondary flight controls; Group 1-5 UAVs and UCAVs; and several other opportunity segments. Program spreadsheets with column headings directly related to STS Client program interests were assembled, all based on extensive secondary and primary research input. These covered Air Force, Army, Navy, and Joint Forces programs across Procurement, RDT&E, and Operations/Maintenance accounts. STS final Client report included a detailed landscape analysis, competitive assessment, a list of key recommended programs to pursue, and specific conclusions and recommendations for client pursuit team. |
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Result |
As a result of STS custom analysis, Client was able to implement a targeted sales plan within one month following STS final report presentation, almost nine months ahead of what client internal staff felt was originally achievable. With this level of detail, particularly the specific programs identified and detailed by STS, this company was able to revise sales targets and greatly accelerate implementation of a highly successful business development program. |
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Sustainment Opportunity Analysis-Military Platforms, Upgrade and Retrofit-Market Assessment |
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Problem |
Due to increasing emphasis on Sustainment initiatives in US DOD to stretch budgets, STS client, traditionally a provider of component-level solutions for various military platforms (transport, fighter, rotary aircraft; UAVs; ships, and ground vehicles) was vitally interested in identifying and pursuing opportunities for upgrades and retrofits in a wide variety of legacy platforms. |
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Solution |
As a first step, STS reviewed Client unique capabilities, developed mapping filters, and ran this against key budget line items (upgrades, SLEPS, other procurements) in the latest published DOD budget. This yielded a short list of 75 high-potential platform upgrade candidates where funding appeared secure (already allocated or expected). STS then identified a series of key decision makers at both military bases/depot and support contractor levels who were involved in a cross section of these addressable opportunities, and conducted research interviews on key topics including the possibility of considering an alternate source, requirements, unmet needs and current struggles, timing, decision-making process, and particular solutions to emphasize. |
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Result |
As a result of this tailored secondary and primary research, STS not only identified a number of qualified opportunities but also provided specific recommendations on actions this company should take to secure incremental business. This greatly accelerated STS client time to market and capture rate, resulting in 25 new, high-priority strategic opportunities to pursue, yielding a significant increase in revenues versus original sales plan. |
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Energy Efficient-Mobile Power Solutions (Batteries and Chargers) For US Military Applications |
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Problem |
A supplier of energy-efficient lithium-ion batteries and battery chargers was interested in expanding its offerings to the US military market. This company had achieved some success offering customized battery pack solutions to OEMs manufacturing small hand held devices, but wanted to broaden its focus to other high opportunity military applications. STS Client faced many challenges. This was already a highly competitive market with many players, military acquisition policy was stressing standard “off the shelf” battery pack solutions due to cost savings and battlefield logistics, and new energy technologies such as fuel cells were starting to receive more attention. On the other hand, urgent US military emphasis on irregular warfare as well as stability and special operations demanded immediate, incremental mobile power for tactical military missions, and there appeared to be sizeable although short-term window of business opportunity. This required accurate sorting through a very large number of segments and sub segments to determine which “sweet spots” held the greatest near-term business potential for STS Client. |
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Solution |
After a face-to-face kickoff meeting with Client to confirm project deliverables, STS developed an initial list of potential domains where portable batteries and chargers played an critical role. These included: missiles and targets, portable land sensors, ruggedized mobile computers, UAVs, vehicle subsystems, and eight other key segments. STS analyzed in detail planned DOD Procurement and Research spending across each of these domains, and through secondary and primary research developed key filters to calculate client addressable content program by program. STS also identified a large list of key experts among relevant military product OEMs and defense program offices, developed a survey questionnaire, and designed and published a web link describing client capabilities and credentials in custom military batteries, which STS showed to 50+ respondents during in-depth interviews. These surveys provided insight and guidance on greatest areas of potential, reasons for interest, specific opportunities, competition, emerging technologies, and suggested marketing and sales tactics. These customized surveys, DOD Budget analysis, secondary research, and detailed competitive assessments allowed STS Research Group to develop an independent, original analysis and present a set of recommendations that identified and described which specific US military and aerospace market segments would offer the greatest future growth potential for its Client. |
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Result |
As a result, STS Client was able to make time-critical decisions on resource and investment deployment that directly impacted its next five years performance. Notably, the Client immediately realigned its direct and indirect sales effort, updated a list of key customer prospects senior managers should visit, modified its internal telemarketing focus, changed its advertising plan and trade show schedule, redirected its internal R&D effort, and set more ambitious revenue forecasts. Key client executives agreed that this three month research effort from STS Research Group accelerated time to market and revenue generation over 18 months. |
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Foreign Military Market Opportunities-European MOD Strategy Analysis |
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Problem |
A US supplier of communication and navigation systems, and support services for Navy, Army, and Air Force platforms recognized it did not have an accurate assessment of short and long term program opportunities in key European countries (UK, France, Germany, Italy, Sweden, and Poland). MOD program and budget shifts, changing roles of EU and NATO organizations, recent new competitive activity, and internal client personnel changeover had all contributed to this lack of clarity, and STS Client was anxious to review and revise its strategic sales and capture planning. |
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Solution |
As a first step, STS developed a detailed understanding of the current Client European situation by meeting with key Client personnel in its several overseas’ subsidiary offices (UK, France, Germany) to initially review and coordinate its research plan and assemble information. STS simultaneously independently analyzed MOD budgets, requirements, and announced programs, determining which were funded, and which were protected or competitive (open to a US bidder). STS also conducted 50 in-depth research surveys with a cross section of program planners and other experts at major MODs, defense contractors, and NATO offices to gain critical insights on a number of relevant topics. |
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Result |
This six-month project resulted in a joint ( STS and Client overseas offices) report presentation to top management with extensive spreadsheet detail on addressable program opportunities, relevant trends, market size, competitive landscape and market share, overall conclusions, and 15 specific recommendations to restage and redirect STS Client European sales effort. As a result of this custom research engagement, STS Client accelerated its strategic plan development by over 12 months, enabling it to rapidly recover and get back on track with defined initiatives leading to a highly successful restoration of positive business results. |
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Irregular Warfare-Stability Operations-Counterinsurgency Market Opportunity Assessment |
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Problem |
An aerospace/defense contractor needed to better understand US DOD changing requirements in the growing counterinsurgency and irregular warfare-stability operations domain. The US military was steadily transforming to deal with a broad range of conflicts beyond traditional heavy combat solutions. This involved expansion to more tactical missions including Stability, Security, Training, and Reconstruction Operations. Direction from latest QDR and POM documents acknowledged this shift, largely drawn from Iraq and Afghanistan conflict learning and expectations of future counterinsurgent missions in other war torn countries. There was increasing acknowledgment that major combat solutions were not as successful in winning and keeping the peace in conflicts involving complex insurgent activities such as close combat and urban warfare. Concerned it did not have a well-reasoned assessment of this area to shape its future technology portfolio, STS Client was anxious to develop a clear assessment of the addressable market (budgeted programs) and available market (open contract opportunities) in this area and steps it should take to be successful. This was a highly complex challenge. Individual service areas were actively competing for a bigger role in Irregular-Stability Operations, the Administration (US President) was about to change, and there was significant uncertainty surrounding future DOD Base and Supplemental budgets due to both tight funding and Congressional infighting. Major programs such as FCS and JTRS were facing delays, and under scrutiny for cuts and reductions. Despite this complexity, STS Client needed to understand where US DOD was now, where it was going, and what the evolution of requirements (product and service solutions) was likely to be over the next five years. STS Client required guidance in order to make informed decisions to optimize its technology and services portfolio, guide its M&A strategy, and strengthen its capture planning across its business units. |
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Solution |
STS Research Group, operating independently but in close coordination with Client, developed and implemented a step by step plan for assessment and calculation of this market. This involved defining the market (addressable vs. non-addressable compared to traditional major combat), projection of the DOD budget over the next five years (supportable assumptions, calculations) with particular focus on Procurement, Sustainment, and Research accounts, identification of requirement segments and sub-segments relevant to Client business units, initial analysis of future spending, spreadsheet listing of relevant, addressable programs, and spreadsheets of current available contracts which fit its Irregular-Stability Operations definitions. In completing this assessment and recommendation, STS research team relied on resident knowledge of the US defense market, published DOD budget docs, direct interviews with top-level Pentagon personnel, and analysis of select published reports and articles. This process required considerable reasoned judgments, supportable rationale, and clear statements on assumptions at every point in the analysis. Output included specific steps STS Client should take to achieve market dominance. |
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Result |
As a result of this custom analysis, STS Client was able to greatly accelerate its understanding and strategic approach to this complicated market, incorporate its own experience and views of its many business units, and modify its internal R&D direction and acquisition focus. This tailored analysis also gave STS Client critical data and insights which it directly used in its own presentations to key DOD program offices and policy centers of gravity. Armed with STS analysis, the Client was able to more effectively shape a persuasive message around "here's how we see the problems, solutions we can bring in and package together, and some unique capabilities we can provide which we feel make programmatic sense in light of these changing requirements". |
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Smart Phone Tactical Military Communications-White Space Opportunity Assessment |
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Problem |
A defense contractor was seeking to establish a stronger position in military tactical communications. This appeared to be a high-growth market based on many factors. Ground forces (Army, Marines, Special Ops) missions were shifting emphasis to smaller tactical units as part of a move toward more irregular vs. major force on force combat operations. War fighter requirements now emphasized higher-data rate applications to support enhanced battlefield situational awareness. New-generation military tactical radio programs under development were behind schedule and significantly lower-tech than many commercial offerings. Consumer handset devices and smart phones were also offering more capability than current and future soldier radios under design and these were attractive to the US Military based on the promise of lower R&D, lower unit cost, and reduced O&M tail (since many were essentially disposable). STS Client felt confident it could develop better alternatives to existing as well as new tactical solutions under development. It also felt it had the organization to work through the military bureaucratic barriers and counter competitive resistance. However, its key challenge was to define a business model across the various layers of transport, services, and applications for optimum long-term sustainable profit, and meet its preference for large-scale systems integration of technologies. |
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Solution |
STS Research Group, operating independently but in close coordination with Client, developed four business model options for Client review. STS underlying analysis included a review of existing programs of record, revenue projections, an analysis of long-term profitability, and a slide presentation showing how Client could present its ideas to various centers of gravity at the Pentagon and major program offices. Options included smart phones for garrison and battlefield military missions, delivery of full motion video to the warfighter, and other directions. |
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Result |
As a result of this research and analysis of options, STS Client was able to challenge its own internal thinking and generate a more thoughtful and well-rounded approach to pursuing strategic alternatives in this emerging area. This also allowed STS Client to greatly accelerate its internal schedule and set in place important actions that established critical momentum and initiatives with DOD that would yield successful results for many years to come. |
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Ground Vehicle System Upgrade-Price to Win Analysis-Contract Opportunity Pursuit |
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Problem |
A leading systems integrator was among seven prime bidders for a multi year, ground vehicle communications upgrade DOD contract opportunity. Although highly qualified in systems integration, STS client was not well known to this particular contracting organization, and the pursuit was also risky since it was Firm Fix Price vs. Cost Plus. STS Research Group was hired 60 days prior to expected final RFP issuance to complete an independent competitive bidder analysis and bottoms up price to win calculation |
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Solution |
STS split its analysis into two segments covering Phase One and Phase Two. Phase One (pre RFP) included a baseline analysis of expected Production and Development requirements across major and minor labor and product CLINS. This included calculation of competitive WRAP rates across five job categories tied to each bidder’s expected place of performance, plus calculation of system (product buildup) costs for each bidder. This recognized advantages each bidder might reasonably leverage on higher value items from other company business units, known technology partners, and negotiated lower prices from key supplier or team members. In conducting this analysis, STS relied on resident market knowledge, industry contacts, domain suppliers, and review of eight other awarded acquisitions. STS also analyzed in detail prior Industry Day reviews, relevant presentations, and preliminary TRD’s and SOOS. From these foundations, STS built highly flexible electronic spreadsheets which allowed for rapid “what if” development and production item assumption changes as additional data including “heard on the street” input became available. Several client reviews and exchanges of information were held between STS and client proposal team which greatly helped to insure a rigorous and interactive analysis. |
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Result |
By choosing to select STS Research Group custom approach, including in-depth “heard on the street” and detailed market analysis and competitive strategic insight, rather than a more superficial “automated calculator approach” utilized by other consultants, STS Client was able to significantly enhance the ability of Client internal capture team in preparing a more persuasive, and competitive proposal which was directly aligned with the selection committee preferences. This directly led to STS Client winning this pivotal competition in a domain where it previously lacked credentials, thus enabling it to leverage this win to other ground vehicle opportunities. |
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Overseas Depot-Level Repair of US Military Platforms-Future Trend Assessment |
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Problem |
During the later stages of the Iraqi conflict, a top U.S. defense contractor with significant positions in tactical vehicles and reset and sustainment support services suspected that DOD in the future might become interested in performing depot-type vehicle repair at overseas (OCONUS) sites rather than (traditionally) returning military vehicles to US depots for major repairs and overhauls. DOD budgets were stressed, lack of vehicle availability for combat was a big concern, and DOD (out of sheer necessity) had already proven it could successfully execute major repairs at overseas sites to meet urgent operational needs. In addition, NATO appeared interested in coordinating overseas R&S initiatives for multiple coalition forces, several US defense contractors were actively pursuing and winning contracts for overseas repair, and various OEMs were actively establishing overseas sites closer to MODs who had procured their vehicles. STS Client faced a dilemma however in that its margin at US depots for repair and overhaul contracts was extremely attractive, but if this trend could be real and growing, it acknowledged the prudence of gaining expert insight into how and why things might evolve, and the best way to optimize its participation. |
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Solution |
STS developed a step by step approach to research and analyze this possible scenario, and a list of likely implications and suggested actions STS Client should consider. This included an examination of all influencing factors and tradeoffs DOD would likely consider from a policy and planning standpoint. It included a review of the potential shift in mix of theatre-level, intermediate-level, and depot level R&S; impact on different tactical platforms (vehicles and rotary), and how this might change the CONUS vs. OCONUS philosophy for R&S support services. This analysis also included a custom model showing cost comparison to perform a major repair and overhaul of a common combat vehicle and a common rotary platform CONUS vs. OCONUS. STS analysis also incorporated relevant commentary from DOD, NATO and other domain experts regarding this possible trend. Since STS analysis was completed during the period of US forces withdrawal from Iraq, this custom research also addressed what DOD was likely to do with the thousands of tactical vehicles previously deployed in the Iraq conflict (which were in various levels of condition), as these could represent a significant business opportunity for STS Client repair and overhaul support and services. |
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Result |
Working in close coordination with Client as results of this analysis unfolded, STS concluded that increased globalization of DOD R&S was very likely to occur within the next decade, depending on the level of overseas’ engagements, and this OCONUS shift would be similar to what had happened in the shift OCONUS of commercial aerospace overhaul and maintenance. While this would result in resistance from established US depot and repair stations as well as Congress concern over export of US jobs, it would be outweighed by DOD's continuing emphasis on cost savings and improved readiness. The reaction by STS client to this analysis was decidedly mixed, with some business groups agreeing while others were highly skeptical, but in general there was agreement that STS custom research and independently-developed scenarios were extremely important to Client future planning and decision making. |
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Overseas Supplier Of Electro-Optical Products-US Military Market Assessment |
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Problem |
An overseas (non-U.S.) defense contractor with unique capabilities in precision electro-optical components for high-performance IR defense systems was interested in expanding its revenues to the U.S. market, and asked STS to conduct custom research to assess and measure its potential opportunity and provide an independent business-case evaluation. Key deliverables included: major advantages and disadvantages STS client likely faced (compared to US incumbents) with its offerings, technology trends impacting product acceptance, competitive and pricing landscape, potential size of the addressable and available market, applications, amenability of current programs to consider another player, ITAR policies and obstacles, and most attractive near-term business opportunities. |
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Solution |
In approaching this custom analysis, STS relied on analysis of published DOD procurements as well as direct interviews with key defense market experts. This involved in-depth research with decision makers at a wide range of appropriate system and subsystem levels, during which STS showed each a web link illustration of its Client solutions including comparative performance capabilities. During these in-depth surveys, STS probed for perceived product advantages and disadvantages, offshore sourcing issues, price-cost performance expectation, possible relevant programs, and key competition. With this custom input, STS then identified specific opportunities (platforms and systems) which represented possible candidates for STS Client offering. This "narrowed" addressable and available market size was assembled (units and timetable) on a spreadsheet roadmap, spanning multiple domains including: missile warning, surveillance, aircraft IR sensors, ground vehicle/soldier IR sensors, UAV IR sensors, and standoff chemical IR sensor applications. |
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Result |
As a result of STS custom research approach, Client was able to accelerate its business planning schedule by over two years, and in the process design a more targeted, better informed, and fact-based effort for its U.S. market expansion, greatly accelerating successful sales development in this key technology area. |
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US Military Aircraft-Sustainment, Upgrade and Retrofit-Market Analysis |
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Problem |
Due to increasing emphasis on Sustainment initiatives in US DOD to stretch budgets, STS client, traditionally a provider of component-level solutions for various military platforms (transport, fighter, rotary aircraft; UAVs; ships, and ground vehicles) was vitally interested in identifying and pursuing opportunities for upgrades and retrofits in a wide variety of legacy platforms. |
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Solution |
As a first step, STS reviewed Client unique capabilities, developed mapping filters, and ran this against key budget line items (upgrades, SLEPS, other procurements) in the latest published DOD budget. This yielded a short list of 75 high-potential platform upgrade candidates where funding appeared secure (already allocated or expected). STS then identified a series of key decision makers at both military bases/depot and contractor levels who were involved in a cross section of these addressable opportunities and conducted research interviews on key topics including the possibility of considering an alternate source, requirements, unmet needs and current struggles, timing, decision-making process, and particular solutions to emphasize. |
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Result |
As a result of this tailored secondary and primary research, STS not only identified a number of qualified opportunities but also provided specific recommendations on actions STS client should take to secure business. This greatly accelerated STS client time to market and capture rate, resulting in 25 new, high-priority strategic opportunities for STS Client BD personnel to pursue, yielding a significant increase in revenues versus original sales plan. |
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Private Security Services-US DOD, Defense Contractor Facilities-Market Opportunity Assessment |
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Problem |
A global private security services firm with a division specializing in government clients was interested in expanding its Facility Support Services, Security Guard Patrol Services, and Fire Protection Services business in U.S. Federal Civil and DOD military installations and defense contractor facilities. This market opportunity appeared ripe as these facilities were increasingly interested in outsourcing facility security services as a way to stretch available budgets. STS client, in advance of standing up this enhanced initiative, required a detailed assessment and analysis of the potential addressable market in U.S. Federal Government Agencies (both Defense-related and Civilian), and Contractor facilities. Client needed custom data on: size of total addressable market based on annual expected spending (both prime and bundled M&O contracts), size of total addressable market based on annual billed hours, breakout of market by security clearances or non-security clearances (FOCI issues), size of market set-a-side for small business (by category), annual spend by department/agency (by large and small business), listing of contracts with expiration dates, and average billing rate/wage rates |
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Solution |
STS built this custom assessment through analysis of published government contract data as well as resident in-house research; shredding and sorting through thousands of current, past, upcoming and recompeting contracts; and also utilized extensive market surveys for research guidance and insight. Addressable market calculations and analysis involved identifying, isolating, and estimating relevant content (estimated percentages and totals) from each line item; and determining on a program by program basis what was truly Client-addressable or non-addressable. As part of this tailored research, STS also developed a reasoned methodology to overcome a significant constraint in that facility support contracts are commonly "bundled" with other procurements, and more than one NAICS code can be applied as different services are contracted for within each program. STS organized its output into over 100 pages of detailed spreadsheets with sortable columns showing opportunities by government agencies, defense contractors, programs, addressable content, and projected timetable. Addressable opportunities were scored as high, medium, and low. Client reviews were conducted at the 25%, 50%, 75%, and final 100% levels, allowing for client input as the larger picture took shape. STS final report included an executive rollup summary of findings and conclusions. |
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Result |
As a result of the custom level of detail provided by STS on current and future opportunities tailored to Client’s specific services capabilities, STS Client was able to make critical decisions on opportunity pursuits, staffing investments, and resource deployment. This independent, custom research and analysis improved STS client success rate by over 50% compared to past internally-developed sales and marketing plans. This also enabled STS client team to clearly articulate this expansion opportunity to its global parent and secure corporate investment leading to substantial long-term revenue growth. |
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Price To Win-Competitive Assessment-Fighter Aircraft Communications System Upgrade |
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Problem |
A leading supplier and integrator of avionics systems for military and commercial platforms was among three bidders pursuing an upgrade of a fighter aircraft to enable it mission-ready for Homeland Security applications. Although highly qualified, STS client was not the incumbent, but anxious to secure a strategic position on this F-class aircraft which might lead to other F-class aircraft upgrade positions. STS was hired 60 days prior to expected final RFP issuance to complete an independent competitive analysis and bottoms-up price to win analysis. |
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Solution |
STS split its custom analysis into two sections: Phase One (pre RFP), and Phase Two (Post RFP). This included a baseline buildup of expected Production and Development requirements across major and minor labor and product CLINS, calculations of competitive bidder WRAP rates across five job categories tied to bidder places of performance and also estimates of system (product buildup) costs for each bidder. This recognized advantages each bidder might reasonably leverage on higher value items based on known technology partners and negotiated prices from key suppliers. In assembling its analysis, STS relied on past military program analysis experience, face to face conversations with technology suppliers and relevant contacts at industry events occurring during the project period, a review of eight other past relevant awards, industry day reviews, and other solicitation documents. STS built highly flexible electronic spreadsheets allowing for "what if" changes as additional "heard on the street" input became available. Progressive, interactive reviews with client capture team also allowed for highly comprehensive discussion and refinement as the process unfolded toward final RFP issuance and STS Client proposal submission. |
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Result |
Based on STS independent, custom analysis, Client gained keener insight and critical, incremental input which greatly reduced the time its internal capture planning normally required, allowing it to prepare a more thoughtful, persuasive, and competitive proposal. This directly led to STS Client winning this pivotal competition, securing the contract award, and also learning that its bid price did not leave more money than was necessary on the table to win the award. Client management additionally confirmed that STS custom approach, involving close coordination and discussion with internal pursuit team, was superior to the "modeling " utilized by other consultants specializing in Price To Win analyses. Client also was more comfortable that its internal data would be kept confidential since STS was not a PTW specialist firm but performed many other types of military research and analysis. Notably, STS Client also went on to secure other strategic positions on similar F-class aircraft platforms based on this critical win. |
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Active Vibration Control-Military Applications Market Analysis |
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Problem |
A leading supplier of vibration, and noise control solutions, primarily to commercial markets, was seeking to broaden its product and service offerings to emerging US and foreign military programs where there was a requirement for “active” motion control. Target platforms included fixed-wing and rotary aircraft, space vehicles, unmanned aircraft, ground vehicles, and surface ships. Although STS Client was a large, multi-national corporation, its experience with military and government initiatives was limited. |
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Solution |
STS initiated its custom analysis by initially assembling a detailed spreadsheet of potentially addressable program opportunities which appeared to include requirements for this capability. STS assembled a list of key questions and conducted 35+ surveys with a cross section of military program and defense contractor personnel to better understand relevant technology needs and changing requirements. In this research, STS further identified and researched 15 prospective partners already actively involved in this market area with which STS client might team as part of an entry strategy. |
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Result |
STS Client, using this custom research and analysis, was able to complete its strategic assessment and business implementation plan 18 months ahead of original expectation, bringing in three major new contracts within its first year of selling as a second source, and ultimately building a sizeable niche business in this fast-growing and high margin area. |
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Web-Based Military Training Market Assessment |
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Problem |
A top military contractor with extensive simulation and training capabilities (e.g. combat vehicles, aircraft, test ranges, mission rehearsal solutions, logistics solutions) across multiple military domains required a custom assessment of the future potential for web-based training solutions. This trend appeared to be gaining momentum due to the convergence of new technologies, younger “digital native” war fighters joining the services, and DOD’s desire to steadily shift from “live” to simulated solutions to improve performance, lower costs, and reduce risk. The focus of this custom research was primarily to assess market potential for STS Client’s unique capabilities in networked, on-line training solutions (virtual, distance learning) where individuals would engage collaboratively and remotely. |
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Solution |
Operating independently but in close coordination with its Client, STS developed and implemented a custom, step by step plan for assessment and calculation of this market. STS arranged meetings with key training commands ( PEO -STRI, TRADOC, RDECOM, USSOCOM, others) and conducted discussions on current and future needs. STS analyzed various market segments in the overall value chain (Platforms, Tool and Content Developers, Computer Hardware and Accessories, Third Party Developers, Mobile Device Manufacturers, Wireless Carriers-Voice and Data Services, Software Makers, Internet Companies, Systems Integrators) to determine highest potential margin and growth areas, as well as potential acquisition candidates. This also involved analysis of key competitors who were dominant players in Live, Virtual, and Constructive market segments, and their evolving business models. STS also assembled extensive secondary data, conducted a large number of telephone and in-person surveys with key experts, and developed an independent, original analysis which identified and described which market segments would offer the greatest future growth potential for its client. This included calculating the size of the addressable market, major target customers, types of opportunities, and recommendations for future growth strategies. This process required considerable reasoned judgments, supportable rationale, and clear statements on assumptions at every point in the analysis |
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Result |
The custom research, analysis and recommendations from STS report enabled Client to make critical decisions on areas of focus for near-term business planning and sales emphasis, key opportunity prospects to engage, new and emerging program pursuits, set reasonable revenue forecasts, and maximize its sales potential, accelerating business development by well over 18 months. |
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Price To Win Analysis-Naval Craft, Shipyard- System Competition |
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Problem |
A leading manufacturer of high-power marine systems was a long-term incumbent on US Navy platform that was being replaced and recompeted in an upgrade initiative to enable it mission-ready for the Navy’s new Sea Basing program. STS Client was vitally interested in preserving its position by securing a win on this opportunity, but faced severe competition from two other system suppliers who were eager to move on to this platform. Multiple shipyards were competing for the initial design, design and development (RDT&E) contract which would likely lead to the LRIP and follow on production, and the shipyards had responsibility for selecting the system supplier. NAVSEA program office requirement and acquisition strategies were still in play, but it appeared these would be defined fairly quickly, and STS Client needed to stay fully informed as the final RFP was expected to be published very quickly. STS assignment was to prepare an independent competitive analysis and help its client develop a winning capture strategy and price-to-win calculation for their customer proposal. This was a particularly challenging assignment due to the fact that multiple shipyards were involved, several system suppliers were competing, Navy budgets were very tight, actual requirements were still up in the air, and there was only a handful of personnel involved who were truly knowledgeable about this opportunity. |
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Solution |
Upon getting its assignment, STS moved quickly to prepare an initial analysis of each system competitor (predecessor systems, other platform applications, unique advantages claimed, relationships) as well as a profile of each shipyard (unique capabilities, past programs, team members on this upcoming competition) and established an initial comparative scoring of attractiveness. STS also examined the original platform being upgraded to better understand performance improvements required in the new initiative. STS reviewed all available Industry Day documentation to understand Navy expectations and evaluation criteria, and prepared an initial pricing model covering client and competitive expected bid prices tied to a cost buildup considering Design, Software Development, Unique Tooling, Test Article Production, Qualification Testing, Integrated Logistic Support and Trials Support. With this baseline information in hand, STS then set out to assemble as much information as possible from knowledgeable parties regarding key competitive factors and expectations on the part of the Navy. This was critical since budgets were tight and the possibility of reprogramming (i.e. Navy changing evaluation factors at the last minute) were quite real. STS information gathering largely involved surveys with knowledgeable parties and former employees both via telephone and face to face at key industry events. |
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Result |
The competitive, capture strategy, and price-to-win analysis conducted by STS greatly augmented the fact finding which STS Client could assemble on its own, primarily due to the fact that STS could more easily assemble “heard on the street” information and insight than STS client. This was also facilitated by STS familiarity with the Navy’s resourcing, requirements, and acquisition processes which enabled STS to easily conduct research across all stakeholders including system competitors, shipyard primes, and NAVSEA planning and procurement contracting personnel. As a result, STS made significant, independent contributions to its client proposal both in terms of price to win and overall bid strategy (advising client on how to best package and articulate its proposed solution to have greatest and most relevant appeal to key Navy and shipyard decision makers). STS client went on to with this competition, thus preserving a key position on a critical platform. |
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