Homeland Security Market Case Studies

Government Budget and Programs Analysis-Opportunity Mapping Homeland Security Budget

STS client, a major diversified provider of products, subsystem, and system-level solutions to both commercial and military customers, was struggling with how to break down the changing 2005 US Dept of Homeland Security budget and how to best relate to near term business opportunities.

STS narrowed the total $40 billion budget into discretionary (electable) and non-discretionary pieces, split discretionary into areas relevant to client capabilities, ultimately assembling the total addressable areas into easy to understand and deal with tables.

STS client was able to accelerate its strategic assessment of new business potential and clarify with greater confidence specific business directions of relevance to the company.

Government Budget and Programs Analysis-Opportunity Mapping Government IT Services

Due to significant shifts in US government IT budgets, programs, and competitive activity, a leading supplier of Government IT communication equipment and services to Civilian and Defense agencies required an outside, expert view of its five-year outlook. This covered DOD, DHS, Justice, Commerce, HHS, and other agencies. Key factors such as wireless, infosec, VOIP, IpV6, secure networks, WiFi, VPNs, biometrics, RFID, COTS, and continuity of operations were major underlying drivers.

STS built a detailed analysis based on published government budget data, recent industry reviews, and input from key experts. STS analysis was organized in multi-page spreadsheets showing government agencies, programs, addressable content, projected timetable, and other details. Potential opportunities were scored high, medium, low. A value-chain map was developed step by step with client reviews at the 25%, 50%, 75%, and final 100% levels, allowing for client input as the larger picture took shape.

Client was able to accelerate its internal planning process by 45 days regarding the size of market opportunities relevant to its offerings. Client was also able to select specific initiatives with nearest-term payoff (1-2 years) and strategically assess taking positions in other, longer-term programs (3-5 year payoff). Client also directly utilized this data to guide strategic choices regarding technology investment, partnerships, acquisitions, and new employee hires.

New Market Opportunity Assessment-Chemical-Biological Detection Instruments

A leading manufacturer of monitoring instruments (primarily for industrial chemical plants) was seeking to expand its business into homeland security and defense markets. A growing market was developing for advanced instrumentation to monitor domestic and battlefield terrorist threats (weapons of mass destruction) from complex chemical, biological, radiological-nuclear, and explosive agents. STS client was confident it had technology solutions to offer, but needed a detailed understanding of DHS and DOD requirements, market size and potential, competitor positions, and optimum opportunities to pursue.

Utilizing its contacts in Homeland Security and DOD planning groups at many levels, STS prepared a detailed assessment which mapped client capabilities directly to DHS and DOD current and future needs. STS analyzed DHS and DOD budget and program data in detail, and conducted direct research with Department of Homeland Security, DOD Joint Forces, Air Force, Army, and Navy programs. STS recommended specific strategies client should pursue for near-term business in both research and procurement accounts, narrowing a list of key opportunities, requirements, and military contacts.

STS client accelerated its internal strategic planning timetable by 45 days with STS research. With STS guidance, Client identified the specific range of homeland security and military program opportunities relevant to its capabilities. Client also gained a thorough understanding of DHS and US DOD changing procurement practices, determined which initiatives had greatest short-term payoff, where it might build strategic positions in longer-term programs. Client also used STS report to strengthen its broader business portfolio (technologies, partnerships, acquisitions, new employee hires) as it moved to exploit this growing homeland security and defense market opportunity.

Government Budget and Programs Analysis-Opportunity Mapping Research-DHS and DOD Budgets

STS Client, a leading provider of defense-related systems engineering, systems integration, technical, and professional services, was seeking to better organize and align its diverse, fragmented, and overlapping business units (including recent acquisitions) with changing defense and homeland security department program changes. Client business units traditionally operated in niche, localized areas, staying abreast of known recompetes and logical opportunities for migration, but lacking cross-SBU leverage. Client primary goal was to strengthen program participation, identify and pursue strategic positions where it could provide multiple business unit content, and step up to a higher-level solution provider, compared to a lower-level LOE player.

STS researchers, experienced with a wide range of defense contractor capabilities, as well as latest DOD (P-1, O-1, R-1), DHS budgets and breakdowns, were able to accurately develop an original, bottoms-up program level-custom analysis and rationale that identified, calculated, and described the major growth-opportunity areas for its client. STS coordinated its efforts through top client management, and directly with individual business units as appropriate. Final report also identified logical adjacent and migratory growth areas within DOD and DHS domains. Calculations included both addressable as well as available market potential.

STS Client, struggling with: business unit overlaps, fragmented program positions, limited DOD budget focus, acquisition digestion and stovepiped divisions, was able to develop and implement a streamlined business plan wrapped around market demand, reduce conflict, and set goals more rationale to market demand.

New Product Acceptance Research Homeland Security-US Federal, State and Local First Responders

A leading manufacturer of safety and communications equipment for industrial markets (with limited government sales at that point) was seeking to expand into state, local, and federal security markets. Company had a unique communications solution with application for police work, riot control, tactical teams, border patrol, anti-terrorism, fire protection, public safety, Coast Guard, FEMA, and other federal agencies. Prior to making further investment, company needed to validate market acceptance for its particular solution: growth, pricing, major customer segments, key competitors, determination of business sustainability. Company also wished to energize an underutilized rep organization covering local, state, and federal government customers, including major buying commands (thru GSA schedules).

STS segmented the broader market (federal, state, local government) into 12 logical partitions, analyzed available secondary data for initial projections, and conducted in-depth research interviews with a representative cross section of 55 key decision-makers in ten customer segments. This tailored analysis provided client with measurable and supportable demand calculations for its offering, with underlying reasons, enabling it to make fact-based investment decisions, based on logical scoring established by STS, as well as other critical data points from the final research summary. Client also made follow-up sales presentations face-to-face with eight of the decision makers interviewed by STS.

Client accelerated its internal sales and product development timetable by over six months as a result of the actionable detail and calculations provided from STS. Client product offering eventually became a key building block in a series of new offerings in this company’s homeland security and military market portfolio.