Finmeccanica is implementing a deep restructuring plan and refocusing its product portfolio. Innovation is key to the group's transformation, says Giovanni Soccodato, executive vice-president strategy, business development and innovation.
The European financial crisis and defence budget cuts are resulting in pressure to use emerging technologies and compressed development cycles to create lower-cost and reduced time-to-market products. How is Finmeccanica reacting to this demand?
Since 2002, our group has implemented a technology governance process to co-ordinate and sustain the different companies' business development and obtain efficiencies and synergies at all levels while elaborating future strategic plans. Today we are looking to concrete examples, such as AgustaWestland's new helicopter family and the Project Zero All-Electric VTOL platform to further strengthen our products and business development.
 |
|---|
The Project Zero platform, which won the 2013 Group Innovation Award, can be taken as an example of the development of co-operation between different Finmeccanica companies, including AgustaWestland, Selex, Ansaldo Breda and Ansaldo Energia, as well as the involvement of numerous small-to-medium enterprises as "risk sharing" partners.
We are introducing these concepts across all the group companies, which together with other initiatives, are achieving a cultural revolution. The introduction of processes at all levels is expected to take another two years.
Which are the emerging sectors and technologies Finmeccanica is investing in to maintain its edge and how is the group is looking to interaction with SMEs, universities, research centres and the supply chain?
We have dedicated significant and constant resources and investments to the innovation sector over time. Today this accounts for around 20,500 specially trained employees in research and development, engineering and design. We invested €1.92 billion in 2012, representing 11.2% of annual revenues, and slightly inferior to the previous year, despite the troubled economy.
A major component of Finmeccanica's technology governance is the MindSh@re incubator, which is also the core animating the entire co-operative, interconnected network of group companies, partners, universities and research centres. There are now seven active technological communities under the Finmeccanica incubator, including radar, software, simulation and advanced materials, integrated environments for design and development, intellectual property and autonomous systems, the latter introduced last year to ensure the success of the latest Finmeccanica efforts.
We have also established a new road map for managing, safeguarding and enhancing the group's intellectual capital and technologies, achieving an increase in patents of over 35% compared with 2008. In addition to new technologies and production optimisation, opportunities to reduce product costs also involve the supply chain, in which participating companies are being considered more a growth element than a simple supplier. We are looking for ways to help them to grow, although we are working to optimise it, maintaining some core components production in house.
Finmeccanica's electronics division in Europe and the USA is being subjected to a deep restructuring with personnel reductions and product portfolio optimisation. Can you explain the measures that are being taken?
Established in January 2013 after a period of initial integration activities between the different Selex companies, Finmeccanica's defence and security electronics giant is continuing its restructuring with an industrial plan which is being finalised right now.
The reduced funding for R&D at national and European level, technology obsolescence, reduced profitability and new customer requirements are leading us to review the products portfolio.
It's too early to elaborate on the composition of it, but we are continuing to invest in areas including radars, electro-optical and other sensors, cyber warfare, intelligence, unmanned platforms such as Falco EVO, avionics, space, weapon systems, command, control and communications, in addition to smart system solutions, including security, energy and mobility, and exploiting dual use wherever possible.
DRS Technologies can contribute to it with a range of solutions such as highly integrated, low-cost night vision products based on dual-use technologies, which are also directed to the consumer market.
Thanks to the support of Selex ES, we are expecting to develop ITAR-free solutions for international sales, looking to increase the percentage from around 5 to 20%. With a general market shift towards homeland security systems, we expect a movement in demand for low-cost solutions and contractual models that include support services and solutions for installed capacity.
There are also new opportunities in select, adjacent markets by taking advantage of advanced, dual-purpose technologies for energy (on-board vehicle power), health care and urban security (smart and safe city). Selex ES recently obtained a contract for Smart Skyscrapers energy management solutions in New York.
What are the technology and business strategies in the other sectors of the Finmeccanica group?
Finmeccanica will continue to invest in the rotary-wing sector, completing the new AgustaWestland family with lower-end platforms and the AW609 tilt-rotor and enlarging its training and support base worldwide to better satisfy customer needs.
In addition to Project Zero and other technologies related to tilt-rotor aircraft, the optionally piloted platform sector, all-weather equipment, more efficient propulsion solutions and new rotor components with electrically-controlled applications, AgustaWestland is participating in European initiatives including Clean Sky (with other group companies) and Green Rotorcraft.
Alenia Aermacchi is successfully progressing in its restructuring, reorganisation and revitalisation plan towards a focused commercial products base, without forgetting the military and dual-use unmanned platforms sector. Alenia Aermacchi plays a key role in international programs such as the Eurofighter Typhoon, the Lockheed Martin F-35 Joint Strike Fighter and the nEURON unmnanned combat air vehicle.
We are working on the multirole capabilities of the Eurofighter Typhoon and the C-27J tactical transport aircraft, while pursuing the expansion of the trainer family towards the lower end, maintaining the edge with the M346.
Within the ATR consortium, we are looking to develop a new 90-seat regional jet while continuing to invest in composite aerostructures, as well as in the unmanned dual-use platform sector, together with the Selex ES Falco family.
The Space Alliance - including the Thales Alenia Space and Telespazio companies - is another key strategic asset of the group, where we are looking to consolidate our presence.
We are therefore continuing to invest in platforms and services, Earth observation, communications, navigation, research and satellite services, looking to intercept the market at a global level. Further to what is mentioned above, in the electronics segment, we are focusing on airborne avionics with advanced products such as the skyISTAR platform agnostic integrated mission management and sensor system, as well as enlarging our presence in adjacent business areas, also in the civil domain.
How is the Finmeccanica Group positioning itself at an international level?
The deep and challenging restructuring plan and product portfolio refocusing that Finmeccanica is pursuing is aimed at consolidating our group.
This is both to capture opportunities on international markets through the establishment of local partnerships, and to be able to participate with good prospects in the consolidation process that will likely involve the European aerospace and defence industry.
- All the latest news, video and images from the 2013 Paris air show
Source: Flight Daily News
