innovation at cmc electronics: challenges and solutions
DESCRIPTION
Innovation at CMC Electronics: Challenges and Solutions. Contents. Overview of CMC Products / Solutions Markets Competitive Environment Competitive Challenges Innovation Strategies Conclusions. CMC Overview. CMC ’s Product Lines. Cockpits. Aviation Products. Custom Electronics. 3. - PowerPoint PPT PresentationTRANSCRIPT
This proprietary document and all information contained therein is the property of Esterline CMC Electronics (CMC), its divisions and subsidiaries.It may not be used, copied, reproduced or otherwise dealt with, nor may its contents be communicated to others in whole or in part, without the express written consent of CMC. It may not be used directly or indirectly for purposes other than those expressly granted in writing by CMC.
Innovation at CMC Electronics: Challenges and Solutions
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Contents• Overview of CMC
– Products / Solutions– Markets
• Competitive Environment• Competitive Challenges• Innovation Strategies• Conclusions
2
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
CMC Overview
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
CMC’s Product Lines
4
Cockpits
Aviation Products
Custom Electronics
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Custom Electronics
5
Cockpits
Aviation Products
Custom Electronics
Microelectronics
CustomDisplays
SpecializedSub-systems
JSF
Apache
A400M
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Aviation Products
6
Cockpits
Aviation Products
Custom Electronics
ElectronicFlight Bags
Head-Up Displays
UH-60
Satellite Communications
Antennas
Enhanced Vision
Systems
A310
Global 7000
PC 21
EC-145
FMS/GPS
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
CMC’s Cockpits
7
Cockpits
Aviation Products
Custom Electronics
SmartDeck
C-130
T-6B
C-130 KT-1
T-6BKing Air 350
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Business by Sector
8
Canada15%
United States50%
International35%
Commercial45%
Military55%
OEM40%
Retrofit60%
Highly Diversified, Balanced Customer Base — Export Oriented
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Competitive Environment
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Aviation Products
10
Cockpits
Aviation Products
Custom Electronics
ElectronicFlight Bags
Head-Up Displays
UH-60
Satellite Communications
Antennas
Enhanced Vision
Systems
A310
Global 7000
PC 21
EC-145
FMS/GPS
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Competition• Broadly diversified• Typically large• Typically vertically integrated, using their own products
• Rockwell-Collins• Honeywell• Thales• Elbit• GE• Garmin
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
CMC’s Cockpits
12
Cockpits
Aviation Products
Custom Electronics
SmartDeck
C-130
T-6B
C-130 KT-1
T-6BKing Air 350
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Competition• For transport aircraft retrofits:
– Aircraft manufacturers: Boeing, Lockheed-Martin– Other systems integrators: Rockwell-Collins, Lockheed-Martin,
Northop-Grunman– Small, local integrators: ASB, DERCO
• For trainers and light attack– Aircraft manufacturers: BAE– Integrators and Tier 1: Elbit, IAI– General aviation suppliers: Garmin
• For general aviation forward fit and retrofit– Other suppliers: Garmin, Avidyne, IS & S, Honeywell, Rockwell-
Collins
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Competitive Challenges
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Challenges• Supporting very diversified product portfolio• Keeping a leadership position in diversified markets• Competing with large, vertically-integrated, global
competitors• Managing a multi-site organization
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Innovation Strategies
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Multiple Strategies Needed – Why?• Need for ideas
– How to get the differentiators?
– How to understand the operational environment of our products?
– How to trigger new ideas and turn them into marketable solutions
• Need for funding– How to do more with less investment?
• Need for the right Highly Qualified Personnel– How to get, develop and maintain the required personnel?
• Need for strong supply-chain– How to get the right partners/suppliers?
– How to flow down innovation down to suppliers?
– How to flow up innovation from suppliers?
– How to create innovative partners?
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Multiple Strategies Needed• Leveraging customer funding
– Because of the niche markets and some customization, CMC is able to get customer funding
– Leading to a zig-zag product evolution; generally consistent with product roadmap, but addressing very specific customer requirements
– Good source of product differentiation due to closeness to key customer needs
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Multiple Strategies Needed• Maximizing re-use
– Developing solutions for multiple applications– Forcing solutions with commonality and design for multiple
applications– Challenging with to do concurrently with a customer-funded
strategy
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Multiple Strategies Needed• Pre-competitive collaboration
– Working with different partners towards complementary goals– Access typically to unknown approaches or needs
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Sourcing• CMC does not have the complete solution• Acquiring innovation as part of supply agreements• Selecting innovative companies as partners in systems
solutions• « Risk-sharing »; we invest, they invest
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Multiple Strategies Needed• Research and Innovation Consortia
– Member of the Consortium for Research and Innovation in Québec (CRIAQ) from the beginning
– Founding member of GARDN– Member of SA2GE
• Project: IMA for Cockpit Applications
– Support the development of technologies from Technology Readiness Levels 1 to 6
– Connects to the university researchers• Allows access to a different network
• Allows access to future employees
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Multiple Strategies Needed• Standards Committees
– Attend committees of key emerging standards, create and promote new ideas, or at the very least influence them
• GPS/SBAS(RTCA)
• Cockpits (ARINC)
• NextGen/SESAR
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Multiple Strategies Needed• Leveraging Technologies
– Technology watch and technology roadmaps– Integration of technologies yield different levels of innovation
• A simple new technology added to a product can expand its life– New touchscreen to an old display, wireless connection, etc
– Importing technologies from other fields – aerospace is NOT where Electronics evolve
– Military infrared sensors led to Enhanced Vision Systems sold in Business Aviation
– Ethernet led to AFDX network used on A380
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Multiple Strategies Needed• Processes and Culture
– SCRUM / Agile Software Development– Rapid Prototyping: hardware and software
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Conclusion
TitleEsterline CMC ElectronicsDate
Esterline CMC Electronics – Company confidential and proprietary data
Conclusion• Innovation is key to survival and growth with our
diversified markets and products• Multiple innovation strategies operating in parallel are
essential• Strategies need to cover all Technology Readiness
Levels, and reach beyond our industry