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What Keeps Me Awake

What Keeps Me Awake. What I will cover. Give my perspective of relationships with defence customers from the point of view of: A US company (as a non-US citizen) A large company A company primarily focusing on commercial telecomms markets What the above means to us

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What Keeps Me Awake

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  1. What Keeps Me Awake Lucent Technologies – ProprietaryUse pursuant to company instruction

  2. What I will cover • Give my perspective of relationships with defence customers from the point of view of: • A US company (as a non-US citizen) • A large company • A company primarily focusing on commercial telecomms markets • What the above means to us • Why it should matter to you, the defence customer Lucent Technologies – ProprietaryUse pursuant to company instruction

  3. Relationships – Industry & Defence • Paradigm shift to support NEC/NCO • Move to COTS inevitable & desirable • Speed of development • Cost • Leverage huge market • Take advantage of ease of update • Basic existing commercial capabilities far outstrip those of military • Conclusion: • Military must adopt commercial technologies and expend effort and cost in mitigating perceived weaknesses for military usage Lucent Technologies – ProprietaryUse pursuant to company instruction

  4. Relationships • Harness capability – but how • Hindered by vested interest and old style think • Obvious concerns reflect problems of success • Inability to accommodate reflects defence’s inability to accept risk • But greater risks remain with defence because of this risk aversion • Gulf War example • Dinosaurs continue to proliferate and to get their views into procurement documents • This causes new players to hold back and existing industry players to offer less than state of the art offerings Lucent Technologies – ProprietaryUse pursuant to company instruction

  5. Industry Concerns (1) • Look back into the defence procurement from the point of view of a company such as mine: • A US company (as a non-US citizen) • A large company • A company primarily focusing on commercial telecomms markets Lucent Technologies – ProprietaryUse pursuant to company instruction

  6. Industry Concerns (2) – US Company • US Company - This itself has become a changed playing field (*) • SOX • Aftershock of IT/Comms melt-down 2001 • ITARs • Result – Risk aversion • Price hike • * (my view only – I attribute no views to other US companies) Lucent Technologies – ProprietaryUse pursuant to company instruction

  7. Industry Concerns (3) • Large Company • Process driven to response in standard solutions • Margin driven • Fundamentally different acquisition methods Lucent Technologies – ProprietaryUse pursuant to company instruction

  8. Industry Concerns (4) • Commercial Market focussed company • Significant margins • Little time to divert resources • Open standards • Procurement methods Lucent Technologies – ProprietaryUse pursuant to company instruction

  9. So What – For Us • For us this means that dealing with the military is: • Frustrating • Disconcerting • Bewildering acquisition processes • Long lead in and little feedback (industry lives off feedback) • Apparent risks • Classic response - price hikes • Afghan price increase • “Why are we doing business with these guys!” Lucent Technologies – ProprietaryUse pursuant to company instruction

  10. So What – For the Defence Customer • Will not get the benefit of commercial companies expertise (pace other commercial companies!) • Solutions will be optimised to reflect the worst case risks of both sides of the contract • Have not really entered into a partnership and have not really absolved themselves of the risks they wish to pass to industry • Late and inadequate comms infrastructure • Ultimately the above factors lead to risks that put a significant breach between companies such as mine and their ability to bring the benefits of modern communications initiatives to defence. Lucent Technologies – ProprietaryUse pursuant to company instruction

  11. What Might Improve This? • Has to be a mechanism to allow innovative commercial companies to contribute • UK ESII contract shows some willingness to tackle issue • Improve acquisition processes • Banal observation but need to: • Improve visibility of requirement and milestones in process • Greater interaction • Improve quality • Defence needs to take on more of the risk • Afghanistan contract – who is responsible if an RPG goes through the comms container • BAA Experience Lucent Technologies – ProprietaryUse pursuant to company instruction

  12. Prologue • If we shadows have offended,Think but this, and all is mended,That you have but slumber'd here While these visions did appear.And this weak and idle theme, No more yielding but a dream,Gentles, do not reprehend: If you pardon, we will mend.And, as I'm an honest Puck,If we have unearned luckNow to 'scape the serpent's tongue, We will make amends ere long;Else the Puck a liar call:So, good night unto you all.Give me your hands, if we be friends,And Robin shall restore amends. • Puck, A Midsummer Night's DreamAct V, Scene IIW. Shakespeare Lucent Technologies – ProprietaryUse pursuant to company instruction

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