Top Management Issues Radar 2012 - Roland Berger

SURVEY 

Top Management Issues Radar 2012 

European Aerospace & Defence industry

ROLAND BERGER STRATEGY CONSULTANTS 

WHY PRODUCE A TOP MANAGEMENT ISSUES RADAR? 

As a top strategy consultancy in the European Aerospace & Defence sector, 

Roland Berger Strategy Consultants actively supports industry leaders in 

identifying challenges, uncovering solutions and driving decisive change in 

their organizations 

In 2008 we identified a growing need for dialogue amongst senior executives 

regarding the key issues that affect the industry. Therefore, we launched a 

«Top Management Issues Radar» to support executive-level thinking across 

the European Aerospace & Defence industry 

The latest survey was conducted between March and April 2012, involving 

more than 100 senior industry executives and representing a broad range 

of segments and positions in the value chain. The survey captured prevailing 

trends on two hot topics: 

> Globalization of markets: how do A&D players intend to develop business 

outside Western Europe? 

> Globalization of operations: how do they intend to develop design and 

production capabilities abroad? 

Here are our conclusions. We trust you will find them insightful and relevant 

to your strategic thinking and decision making. We would welcome the 

opportunity to have a more detailed discussion directly with you on any of 

the issues presented. 

The European Aerospace & Defence 

practice management team 

Georgy Babilashvily (Moscow) 

Sébastien Cailliau (Brussels) 

Roberto Crapelli (Milan) 

Martin Eisenhut (Munich) 

Didier Gobin (Paris) 

François Guenard (Paris) 

Manfred Hader (Hamburg) 

Juergen Liedl (Berlin) 

Alberto De Monte (Rome) 

Alain d’Oultremont (Brussels) 

Mathieu Pacault (Paris) 

Philippe Plouvier (Paris) 

Jérôme Rein (Paris) 

Ali Rekik (Paris) 

Paul Sloman (London) 

Robert Thomson (London) 

Didier Tshidimba (Brussels) 

Michel Vlasselaer (Brussels) 

Joerg Wahler (Stuttgart) 

1

TOPICS 

a. COMPANY AGENDAS IN 2011 

b. 

c. 

d. 

DEVELOPING BUSINESS OUTSIDE WESTERN EUROPE 

DEVELOPING DESIGN AND PRODUCTION CAPABILITIES 

OUTSIDE EUROPE 

VISION OF THE A&D BUSINESS ENVIRONMENT IN 2015 

3


a. Company agendas in 2012 

FOR THE FIRST TIME, MANUFACTURING AND SUPPLY CHAIN ARE THE TOP CONCERNS FOR SENIOR 

EUROPEAN A&D EXECUTIVES 

TOP PRIORITY IN COMPANY'S AGENDA 

[4 MOST FREQUENT ANSWERS] 

2008 2009 2010 2011 

2012 

RATIONALE AND INDUSTRY TREND 

Manufacturing and Supply Chain are for the first time the top concerns for 

European A&D decision makers 

#1 

Programme 

Management 

Programme 


Programme 


Programme 


Manufacturing 

Despite the financial crisis, many A&D companies are enjoying historic order 

book levels that ensure capacity engagement for several years ahead 

#2 

Market 

Strategy/ 

Globalisation 

Market 

Strategy/ 

Globalisation 

Market 

Strategy/ 

Globalisation 

Market 

Strategy/ 

Globalisation 

Supply 

Chain 

Securing on-time delivery in line with production plans has turned into a short 

term challenge as several major civil and military programmes are moving from 

development to industrialization or early series production phase 

Stakes are high for most players, who need 

> To establish or restore credibility vs. poor ramp-up performance in the past 

#3 

#4 

Supply 

Chain 

External 

Growth/PMI 

Flexibility 

Marketing 

& Sales 

Product 

Strategy 

Supply 

Chain 

Innovation 

and R&D 

efficiency 

Supply 

Chain 

Market 

Strategy/ 

Globalisation 

Programme 


> To reduce recurring costs to compensate for cost overruns during 

>>development phases 

Market Strategy/ Globalisation remains a top priority in light of increasing 

global competition. Most companies are planning to sustain their growth 

initiatives both in terms of product/ service portfolio extension and geographic 

expansion, as explored in 2012 survey 

Source: Roland Berger "Top Management Issues radar 2012" Survey 

4



TWO THIRDS OF RESPONDENTS CONSIDER THEIR COMPANY READY TO COPE WITH DELIVERY RATE 

INCREASE AND NEW PROGRAMME RAMP-UPS 

READINESS TO COPE WITH DELIVERY RATE INCREASE 

AND NEW PROGRAMMES RAMP-UPS 

[% ANSWERS] 


With order books at historic levels, most Prime contractors and Tier-1 suppliers 

have anticipated ramp-up challenges and have launched initiatives to get prepared, 

mainly 

> Capacity investments 

> Manufacturing efficiency new projects 

NO 

32% 

68% 

YES 

Schedule drifts of major development programmes and delayed industrial rampups 

(e.g. due to government pressure to slow-down the delivery rate of military 

products) have also provided further capacity and time for preparation 

Nevertheless major uncertainties remain 

Actual maturity/manufacturability of the new product designs (e.g. composite), was 

stated last year as n°1 key success factor for ramp-up 

Readiness of Tier-2 suppliers to ramp-up (investments capacity limited compared to 

Prime contractors and Tier-1 suppliers) 

Readiness of new suppliers, e.g. in emerging countries (capacity and capabilities 

not yet demonstrated) 

Availability of raw material (e.g. forging, carbon fiber) 


5



MOST COMPANIES PLAN TO SUSTAIN THEIR GROWTH INITIATIVES BOTH IN TERMS OF 

PRODUCT/SERVICE PORTFOLIO EXTENSION AND GEOGRAPHIC EXPANSION 

GROWTH INITIATIVES SUSTAINED VS. LAST YEAR 

[% ANSWERS] 


NO 

100% 

12% 

100% 

13% 

The return of growth to the top of the agenda in 2011 had been a 

significant change vs. the previous years when companies were still 

focused on reorganization and cost containment 

Growth remains a top priority in companies’ agendas in 2012 with 

motivations including: 

> Meet ambitious targets set by shareholders>> 

YES 

88% 

87% 

> Increase the geographic proximity to customers>> 

> Diversify into non-cyclical businesses and compensate for the >>weakness 

of some domestic markets (e.g. defence) 

2012 survey confirms companies’ willingness to grow both in terms of 

Broader product / 

service portfolio 

Geographic 

expansion 

> Product/service portfolio extension: mainly new product / services for the 

market segments currently addressed, but also penetration of new A&D 

market segments 

> Geographic expansion, as detailed in the following pages 


6


b. Developing business outside Western Europe 

ALMOST HALF OF COMPANIES INTERVIEWED AIM TO DERIVE 60%+ OF THEIR REVENUES 

FROM OUTSIDE WESTERN EUROPE 

COMPANIES TARGETING MORE 

THAN 60% OF BUSINESS OUTSIDE 

WESTERN EUROPE 

[% ANSWERS] 

24% 

43% 

TOP EXECUTIVE INSIGHTS 

"Although the economic environment worsened 

more markedly than expected, particularly in 

defence, our order intake increased and our 

revenues held up well. A marked upturn in our 

results is now underway, driven by […] our 

stronger footprint in growth regions " 

L. Vigneron, CEO Thales 

(company release, March 2012) 

"Sagem targets € 2b revenues in the mid-term 

vs. € 1.26b in 2011 by increasing the share of its 

export business whose share is already 60% 

today" 

P. Petitcolin – CEO Sagem 

(Reuters / Eurosatory, June 2012) 


Business development outside Western Europe is 

an immediate action in order to: 

> React to drastic cuts in European governmental 

budgets 

> Compensate cost reduction efforts driven by 

European civil clients/ operators 

> Capture opportunities on new programmes in 

emerging markets (e.g. C919, MS-21, KC390…) 

It also supports the mid-term strategy of most 

Western players who intend to: 

> Balance their portfolio of customers, as a risk 

mitigation 

> Secure long-terms positions in emerging markets 

Current 

Target 

"In the future, Cassidian aims to generate some 

50% of its revenues outside Europe" 

S. Zoller – CEO Cassidian 

(Süddeutsche Zeitung, Feb. 2012) 

Source: Roland Berger "Top Management Issues radar 2012" Survey, Press, Company communication 

7



NORTH AMERICA IS SEEN AS THE MOST ATTRACTIVE AREAS FOR BUSINESS OUTSIDE 

WESTERN EUROPE; FOLLOWED BY CHINA AND SOUTH AMERICA (BRAZIL) 

MOST ATTRACTIVE AREAS FOR BUSINESS OUTSIDE 

WESTERN EUROPE [% ANSWERS] 

MAIN CHALLENGES IN ADDRESSING MARKET OUSIDE 

WESTERN EUROPE [% APPEARANCE IN TOP 3 ANSWERS] 

North America 

China 

19% 

26% 

North America, China and South America (inc. Brazil) appear as the most 

attractive areas to develop revenues outside Western Europe, as detailed in the 

following pages 

India and Russia are disregarded despite apparent business potential 

South America (incl. Brazil) 

Asia (excl. China) 

Middle East 

India 

Russia 

14% 

13% 

11% 

9% 

6% 

India 

> World’s largest arms importer (10% of global arms imports in 2007-2011) 

> But (a) high offset demands (30% to 50%), (b) complex decision-making/ 

difficulty to secure decision enforcement and (c) privileged relationship 

with non-Western countries such as Russia 

Russia 

> Several major new programmes (MS-21, 5th generation fighter, …) and major 

>>military investment programme (~€ 490b for 2012-2020) 

> But (a) difficulty of understanding local business rules and ways of working, 

>>(b) strong national preference policy (c) significant concerns regarding 

Intellectual Property protection 

Eastern and Central Europe 

2% 

Source: Roland Berger "Top Management Issues radar 2012" Survey, SIPRI, Press 

8



RESPONDING COMPANIES AIM TO DEVELOP CIVIL & MILITARY, PRODUCT AND SERVICES 

REVENUES OUTSIDE WESTERN EUROPE 

TYPE OF BUSINESS TARGETED [% ANSWERS] 

NORTH AMERICA BRAZIL CHINA 

Military 

100% 

10% 

Services 

100% 

8% 

Military 

100% 

10% 

Services 

100% 

7% 

Military 

Both 

100% 

5% 0% 

Services 

100% 

9% 

Both 

53% 

Both 

55% 

Both 

53% 

Both 

47% 

Both 

44% 

Civil 

95% 

Civil 

37% 

Product 

37% 

Civil 

37% 

Product 

46% 

Product 

47% 

Segments 

Portfolio 

Segments 

Portfolio 

Segments 

Portfolio 

The US military market still appears attractive for: 

> European primes despite the slow down in 

spending since 2008, as US military expenditures 

remain two times higher than in Western Europe 

where further budget cuts are expected 

> European tier-1 or sub-tier suppliers as 8 out of the 

10 largest defence-equipment producing 

companies are US based 

Embraer is becoming a major player, including in the 

military business (e.g. KC390) 

More globally, Brazil’s attractiveness results from its 

growth outlook, including increase in its military 

spending (ambition to become the local leader, 

necessity to address threats from Venezuela and 

drug traffic) 

China still shows a steady growth outlook in the civil 

business 

> Strong business drivers (GDP, internal passenger 

traffic…) 

> New major programmes to come (e.g. Long 

Range) 

> Favorable changes in regulation (e.g. liberalization 

of low altitude space expected to boost demand for 

helicopters and business jets) 

Source: Roland Berger "Top Management Issues radar 2012" Survey, SIPRI 

9



THE IMPORTANCE OF «TECHNOLOGY AND KNOW-HOW TRANSFER» AS A BUYING 

CRITERIA TENDS TO INCREASE AS LOCAL INDUSTRIAL MATURITY DECREASES 

MOST IMPORTANT FACTOR IN WINNING NEW BUSINESS [% ANSWERS] 

NORTH AMERICA BRAZIL CHINA 

Other 

Technology know-how transfer 

Offset 

100% 

6% 

7% 

1% 

Other 


100% 

4% 

30% 

Other 

100% 

10% 

Product/service performance 

74% 

Offset 

14% 


66% 

HIGH 

Price 

12% 

« Value for Money » and « Total Cost of Ownership » 

approaches promoted by the DoDs and major civil customers/ 

operators set 

« Product /service performance » as the primary business Key 

Success Factor 


10 


Price 

38% 

14% 

INDUSTRIAL MATURITY 

Offset 


Price 

16% 

7% 

1% 

LOW 

« Technology and know-how transfer » is the most important 

contributor to winning new businesses when a country still 

intends to develop its own technological base, in particular in 

the military business



DEVELOPING AN UNDERSTANDING OF THE LOCAL RULES OF THE GAME AND A LOCAL 

POLITICAL SUPPORT ARE THE KEYS TO ADDRESS MARKETS ABROAD 

MAIN CHALLENGES IN ADDRESSING MARKET OUTSIDE 

WESTERN EUROPE [% APPEARANCE IN TOP 3 ANSWERS] 


Developing knowledge/ 

understanding local rules of game 

Developing local political support 

Developing local design 

or production capabilities 

Adapting organizations and 

ways of working 

Customizing products/service features 

to local customer requirements 

Mobilizing financial resources 

Other 

2% 

4% 

21% 

15% 

11% 

11% 

36% 

Developing an understanding of the local rules of the game and 

local political support are perceived as the keys to creating client 

intimacy, overcoming local entry barriers and in the end succeeding 

in addressing markets abroad 

A&D companies are indeed drawing lessons learnt from the failure of 

standardized approaches to new markets they have traditionally 

deployed 

As a result, most A&D companies tend to set up local organizations 

to increase proximity with local decision makers 

« The formation of Selex Sistemi Integrati do Brazil is consistent with 

the Finmeccanica Group’s internationalisation strategy, leading to the 

creation of a local organisation [..] » 

Company communication (May 2011) 

« The Head of local subsidiaries are accountable for their portfolio of 

customers. The Parisian Head-Quarter no longer decides » 

L. Vigneron, CEO Thales (Le Figaro, Feb. 2012) 

« Cassidian is based on country organisations » 

Company communication 


11



«A JOINT VENTURE/PARTNERSHIP WITH A LOCAL COMPANY» IS THE MOST EFFICIENT 

EXPANSION OPTION OUTSIDE THE US; WHERE A «LOCAL SUBSIDIARY» IS OPTIMAL 

MOST EFFICIENT DEVELOPMENT MECHANISM 

[% ANSWERS] 

UNITED STATES 

41% 

27% 

14% 14% 

1% 3% 

1 

2 

BRAZIL 

42% 

25% 24% 

1 

3 

2 

1 Local sales representation 

4 

3 

2 Local subsidiary 

5 

1% 

4 

3 Joint venture/partnership with local company 

6 

6% 

5 

1% 

6 

MIDDLE EAST 

38% 

1 

11% 

2 

40% 

3 

RUSSIA 

39% 42% 

1 

2% 

4 

11% 

2 

5% 

5 

4 Joint venture/partnership European company 

5 Acquisition 

6 Other 

3 

5% 

6 

5% 

4 

0% 

5 

3% 

6 

CHINA 

11% 14% 

1 

2 

65% 

3 

3% 

4 

2% 

5 

6% 

6 


JV / partnership with local company is 

highlighted as the preferred approach by half 

of respondents for all countries, as: 

> Local JVs / partnerships can support quick 

step changes 

> Several European players are not able to 

mobilize further human resources for growth 

(e.g. scarce profiles focused on current 

developments) 

> They enable foreign companies to overcome 

some entry barriers (see previous page) 

The relevance of local JVs / partnerships 

appears the greatest in China, which is still 

eager to partner with Western companies 

> To fulfill immediate needs 

> To support its long term strategy for 

technology acquisition and self-sustainability 


12


c. Developing design and production capabilities outside Europe 

NORTH AMERICA AND INDIA ARE THE MOST ATTRACTIVE DESTINATIONS FOR 

COMPANIES LOOKING TO DEVELOP DESIGN CAPABILITIES ABROAD 

DESIGN CAPABILITIES 


COMPANIES WITH MORE 

THAN 30% OF CAPABILITIES 

OUTSIDE WESTERN EUROPE 

[% ANSWERS] 

43% 

REASONS 

[% ANSWERS] 

Other 

Flexibility 

Entry into 

new markets 

Access to available 

competencies 

100% 

4% 

10% 

18% 

19% 

MOST ATTRACTIVE AREAS 

[% ANSWERS] 

Russia 

South America 

China 

Asia (exc. China) 

Central/ 

Eastern Europe 

100% 

6% 

6% 

7% 

9% 

9% 

Responding companies intend to develop 

Design capabilities in a limited number of 

target countries to achieve a local critical mass 

of skills and competencies 

Target areas are English-speaking countries, 

with historical design experience 

India is now moving upmarket and provides 

advanced Design capabilities (e.g. modelling/ 

simulation) on top of ‘design commodities’ 

(software verification, detailed drawing 

releases…) 

15% 

Customer 

requirements 

Cost 

competitiveness 

24% 

25% 

India 

North America 

30% 

33% 

Major A&D companies are developing their 

own capabilities or urging their legacy 

suppliers to do so: «Airbus works directly with 

Indian companies in the design and 

manufacture of aero structures and strongly 

encourages its major Tier 1 partners to do so 

as appropriate» – Company communication 

Current 

Target 

Source: Roland Berger "Top Management Issues radar 2012" Survey, Company communication 

13



COMPANIES ARE DEVELOPING PRODUCTION CAPABILITIES IN NORTH AMERICA AND 

CHINA TO IMPROVE COST COMPETITIVENESS AND MARKET ACCESS (OFFSET) 

PRODUCTION CAPABILITIES 


COMPANIES WITH MORE 

THAN 30% OF CAPABILITIES 

OUTSIDE WESTERN EUROPE 

[% ANSWERS] 

30% 

62% 

REASONS 

[% ANSWERS] 

Other 


competencies 

Flexibility 


competencies 

Customer 

requirements 

100% 

4% 

4% 

14% 

21% 

21% 

MOST ATTRACTIVE AREAS 

[% ANSWERS] 

Russia 

Central/ 

Eastern Europe 

South America 

Asia (exc. China) 

India 

North America 

100% 

3% 

9% 

13% 

15% 

17% 

21% 

China appears as a priority development area 

for companies intending to enter the local 

market (offset) and seeking «low cost» 

production. However «low cost» motivation 

could be tempered by 

> The increase of production costs (average 

wage increase of 22% in 2011) 

> The production transfer costs frequently being 

underestimated (longer time to transfer and 

reach Western quality standards) 

US is a priority development area for companies 

intending to increase their dollar-cost base and 

develop the «made in US» brand required to 

access the local market (e.g. Airbus decision to 

set up an assembly line in Alabama) 

Cost 

competitiveness 

36% 

China 

22% 

Current 

Target 

Source: Roland Berger "Top Management Issues radar 2012" Survey, Press 

14



THE ASSESSMENT / DEVELOPMENT OF LOCAL MANAGEMENT AND TECHNICAL TEAMS' 

SKILLS IS THE TOP CHALLENGE WHEN SETTING-UP AN INTERNAL CAPABILITY ABROAD 

INTERNAL CAPABILITIES (MAKE) 


AVERAGE LEAD-TIME FOR ESTABLISHING A MATURE 

INTERNAL CAPABILITY ABROAD (DESIGN OR PRODUCTION) 

[% OF ANSWERS] 

>5 years 

100% 

12% 

Green and brown field approaches are equally preferred for establishing 

internal capabilities (resp. 51% and 49% of answers). The selection of an 

approach seems primarily driven by constraints according to respondents 

> Existence of local capabilities, 'value for money' of potential targets 

> Local regulations preventing or favouring acquisitions 

The assessment and development of the skills of the local management and 

technical teams is quoted as the top challenge while establishing a new 

capability (25% of answers). The topic appears all the more critical as local 

skills / proficiency levels drive the performance of the new entity, but impact 

also domestic activities (European senior profiles used to develop local 

teams) 

2-5 years 



ASSESSING THE CAPACITY AND CAPABILITIES OF POTENTIAL PARTNERS IS THE TOP 

CHALLENGE WHILE DEVELOPING AN EXTERNAL CAPABILITY ABROAD 

EXTERNAL CAPABILITIES (BUY) 


AVERAGE LEAD-TIME FOR ESTABLISHING A MATURE 

EXTERNAL CAPABILITY ABROAD (DESIGN OR PRODUCTION) 

[% OF ANSWERS] 

>5 years 

100% 

17% 

Although standard approaches exist, assessing the capacity and capabilities 

of potential partners is the major challenge while developing an external 

capability (28% of answers). From our experience, common difficulties 

include: 

> The limited visibility on actual workloads and competences: internal (e.g. 

production line or shared work centre), but even more external (suppliers / 

sub-contractors) 

> The lack of common standards in emerging countries: demonstrated 

capacity for local business, not necessarily achievable while complying with 

Western quality standards 

> The difficulty of extrapolating forecasts from pilot phases (scale effects, less 

management attention than during pilot, …) 

2-5 years 


d. Vision of the A&D business environment in 2015 

LOOKING AT THE FUTURE, DECLINING BUDGETS ARE THE MAIN CONCERN IN THE DEFENCE 

SECTOR, WHILE CIVIL SEGMENTS WILL FACE MULTIPLE CHALLENGES IN THE FIELD OF DELIVERY 

KEY CHALLENGES FACING THE CIVIL SECTOR 

[% ANSWERS] 

Funding availability 

Cost 

competitiveness 8% 

Competition 

19% 

9% 

19% 

Growing complexity 

in Supply Chain 

25% 

20% 

Ramp-up 

(incl. product 

maturity) 

External 

economic 

influences 

Top challenges quoted in the civil sector highlight a balanced focus between 

> External topics (competition, overall economic context) 

> Internal concerns (supply-chain and ramp-up management) mainly driven 

by the necessity to turn historical backlogs into profitable deliveries 


KEY CHALLENGES FACING THE DEFENCE SECTOR 

[% ANSWERS] 

2% Rules & regulations 

Ramp-up 2% 

2% Technology 

Cost competitiveness 2% 

Relocation & transfer 

5% 

Delays 

7% 

Competition 12% 

68% 

Reduced 

government 

spending - 

shrinking 

market 

Business / sales perspectives are by far the main concern of companies 

active in the military sector due to 

> Declining government funding / lack of visibility of long term funding 

(political indecision and procurement disruption) in Western countries 

> The subsequent fierce competition in export markets now targeted by all 

Western players 

17



ALTHOUGH SERVICES BUSINESS IS TARGETED, OPERATIONAL CHALLENGES KEEP 

PUSHING THAT TOPIC AT LOW POSITIONS IN OUR RANKING 

INTENTION TO DEVELOP THE 

SHARE OF SERVICES 

[% ANSWERS, 2011 SURVEY] 

88% 

YES 

SERVICE & SUPPORT AMONG TOP 

PRIORITY IN COMPANY'S AGENDA 

[RANKING] 

n°11 

among 15 topics 

for the 2007-2012 period 


Through 2011 survey, 88% of respondents presented development of Services as a priority. 

They are looking for: 

> Stable and predicable revenues (v.s. cyclicality of product-market) 

> Extra lifecycle margins to recover development overruns and mitigate risks on recurring 

costs (e.g. raw material) 

> Long-term relationships with end-customers / operators intending to outsource non core 

activities 

Despite a clear objective of developing Service revenues, the topic does not appear as a top 

priority for respondents as 

> Management attention is still caught on operational challenges (e.g. ramp-up) 

> Service development is rarely considered as a company-wide initiative but rather the task 

of a single directorate 

As far as commercial aviation is concerned, the Support and Services arena might evolve 

more drastically with New Generation aircraft at 2025 horizons, with increased reliability and 

opportunity to envisage breakthrough approaches in terms of business models 


18



NEW COMPETITION FROM EMERGING MARKETS SEEN AS HAVING THE BIGGEST 

POTENTIAL INFLUENCE ON INDUSTRY STRUCTURE TO 2015 

TRENDS TO CHANGE INDUSTRY STRUCTURE IN 2015 

[% ANSWERS] 


New competitors from 

emerging markets 

New OEM business model 

28% 

26% 

The increase in the number of first class players was already selected as the 

top 1 evolution of the business environment in the 2011 survey 

The development of competition from emerging markets is again perceived 

as the main driver for change in the industry structure. New players 

(e.g. COMAC-China, OAK/ODK-Russia, KAL/KAI-Korea), benefitting from 

significant state backing and/or a large protected domestic market, are 

indeed targeting first class positions 

New end customer 

requirements 

New technolgoies 

18% 

21% 

The evolution of OEM business models is also a key driver to reshape the 

structure of the industry 

OEMs repositioning at the front and back ends of the development process 

led Tier-1 suppliers to shift to system integration and pre-assembly supply, 

and consequently Tier-2 suppliers to offer integrated products or become 

specialists 

Entry of new competitors 

from outside A&D 

7% 

OEM willingness to capture more Service business and offer advanced 

service / support packages will, in the near future, impact the industry 

currently led by industrial branches of end-customers / operators and pure 

service providers 


19



OUR VALUE PROPOSITION: WE HELP CLIENTS CONDUCT STRATEGIC AND OPERATIONAL 

TRANSFORMATIONS 

STRATEGY / M&A 

OPERATIONS 

Corporate Strategy and 

Portfolio Management 

Services and 

Support Development Strategy 

Marketing / 

Business capture 

Mergers & Acquisitions / 

Alliances 

Corporate / 

BU Organisation Redesign 

A&D COMPETENCE 

CENTRE 

> Ability to work with Top 

Management and operational 

teams 

> Expertise of core and functional 

processes of the Industry 

> Experience based on more than 

30 projects p.a. since 2000 

> Coverage of Commercial and 

Defence sectors 

Corporate Strategy and 

Portfolio Management 

R&D Efficiency / 

Product Policy and Innovation 

Programme Management 

Effuciency 

Supply Chain Optimistation 

Purchasing and Supplier 

Management Optimisation 

Manufacturing 

Performance Optimisation 

20

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Top Management Issues Radar 2012 - Roland Berger

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