11-02-2009
Addressing the UK defence market from a UK base
Mike Magill, Sales & Marketing Director
Systematic Software Engineering Ltd
MM experience of UK market
• Systematic
Sales & Marketing Director
• Logica
4 yr
(now LogicaCMG)
Sales & Marketing Manager, Space & Defence 3 yr
• Syntegra
(SI business of BT)
Account Director, land domain + FCO
7 yr
• IBM UK Ltd
Account Manager, British Army
1 yr
$Revision: 1.1
$
15 yr
Page 2
1
11-02-2009
Systematic Software Engineering
SSE A/S (Denmark)
Århus
Copenhagen
SSE Limited (UK)
Sleaford
Camberley
SSE Inc. (USA)
500 Staff (40 in the UK)
ISO 9001:2000
SEI CMMI Level 5
$Revision: 1.1
$
Fairfax VA
+ Finland !
Systematic UK Head Office in
Camberley
UK domestic market
Software products
Software intensive projects
Training
Consultancy assignments
Technical support
International primes
Integration services
(access to international markets)
In over 30 countries
Only 1.5 dedicated UK staff
$Revision: 1.1
$
International marketing
2
11-02-2009
Benefits of a UK Ltd Subsidiary
(versus UK nat. employment, local partner or lots of travel !)
• Staff
• Large skill pool
• Scope of skill pool
• Employment law • Financial
• Lower Corporation Tax
• Flexibility due to currency difference
• European VAT complexity
$Revision: 1.1
$
• Sales / Marketing
•
•
•
•
Knowledge of customer, market, projects
Their knowledge of you !
Base for international sales (excl Scandinavia)
Customer management / delivery
UK Defence Market Characteristics
$Revision: 1.1
$
• Large
• Open
• Procurement rules followed
• High profile
• Value driven customer
So it’s attractive…..
….and therefore competitive
• EU
• US
• Other
3
11-02-2009
Customer Evaluation / Win chances
• Commercial proposition
• Whole life costs
• Value for money
• Defence conditions
• Technical proposition
• Understand & meet stated/unstated requirements
• Risks (cost, time, functionality, performance)
• Unexpected extras
• Past performance
• Skill set
• Relevant references
$Revision: 1.1
$
• Track record (a measure of risk)
UK Defence Procurement (simplified & OOD !)
USERS
ARMY
RAF
NAVY
JHQ
CENTRE
Unstructured requirements
DEC
ISTAR
Collated, prioritised reqs.
Capability gaps
Investment case
Acquire funding
Instruct IPTs what to buy
CCII
Precision Attack
Information
Supperiority
Equipment
Research &
Technology
Battlespace
Manoeuvre
A
G
E
N
C
I
E
S
IPT
$Revision: 1.1
$
Manage procurement
Let contracts
Manage contracts
In service management
Disposal
4
11-02-2009
$Revision: 1.1
$
UK Defence Market (simplified & OOD !)
Benefits of a UK Ltd Subsidiary - Softer Issues
• Staff
•
•
•
Large skill pool
Scope of skill pool
Employment law • Financial
•
•
•
Lower Corporation Tax
Flexibility due to currency
difference
European VAT complexity
1. Cultural variety,
the British
alternative
2. Language
English or Danglish
• Sales / Marketing
•
•
•
$Revision: 1.1
$
•
Knowledge of customer, market,
projects
Their knowledge of you !
Base for international sales (excl
Scandinavia)
Customer management / delivery
5
11-02-2009
$Revision: 1.1
$
Questions
Systematic UK Overview
• Established 1989
• 40 Employees
34 in Camberley (Head Office)
6 in Sleaford (EW Office)
• Qualifications (60% with PhD, 1st or 2nd Hons degrees)
2 senior management
3 project management
12 technical
9 sales & marketing
11 ex-military consultants
3 finance & administration
$Revision: 1.1
$
• Financials (2007/2008)
£7.8M revenue
£1m profit
Strong balance sheet; no borrowings
• ISO 9001:2000 (BSI Auditors)
• MODUK List X
Page 12
6
11-02-2009
CEO
Andrew Graham
Finance
Mike Heath
CSO
Mike Magill
Marketing
Jacqui
Snowdon
Rosalind Dando
EW
Chris Howe
SALES
Heidi Martin
Harry Leyland
Paul Fielding
Elise Hudson
Mick Reehal
Paula Miller
(3/5)
Kerry Hellard
Graham
Turfrey
Chris
Norsworthy
Tim Bidie
Jenny Scot
Craig Pauley
Glyn Slowley
Janice Garner
Standards Mgmt
Emily
Wooldridge
Max van
Daalen
Jessica Hart
Mark Taylor
Mercede Best
Professional
Services
Ian Smart
Integration
Tim Sanders
David Fares
Richard Brown
David Shamp
Gareth Rees
Dick Baker
Ben Petifer
Kevin Smith
Tony Towers
Peter Martin
Callum Cage
James
Mathews
Emma Wignall
BPI
Nicky Burgess
$Revision: 1.1
$
ANO
7