Organizing For Growth: Creating Natural Business Units Presented - - PDF document

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Organizing For Growth: Creating Natural Business Units Presented - - PDF document

The Aerospace & Defense Forum San Diego Chapter April 22, 2014 Organizing For Growth: Creating Natural Business Units Presented to: Aerospace and Defense Forum April 22, 2014 San Diego, California Purpose: To define your


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The Aerospace & Defense Forum San Diego Chapter April 22, 2014 1

Organizing For Growth: Creating Natural Business Units

Presented to: Aerospace and Defense Forum

April 22, 2014 San Diego, California

Purpose:

  • To define your businesses based upon capabilities and a defined value

proposition

  • Align organizational structure with natural business unit definition
  • Define relationships between natural business units (NBU) for corporate and

shared services functions.

  • Develop growth strategies which are aligned with value propositions and

capabilities

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The Aerospace & Defense Forum San Diego Chapter April 22, 2014 2 Results:

  • Focused growth based upon value creation, agility and responsiveness to new
  • pportunities
  • Better definition and penetration of target markets
  • Improved customer alignment and focus
  • Enhanced operational performance
  • Clear definition of roles and responsibilities
  • An organization structure which supports the strategy

3

Natural Business Unit (NBU) Model vs. Traditional Model

  • Built Around Assets
  • Sales and Marketing
  • Focus on Managing Numbers
  • Hierarchical
  • Independent Parts
  • Reactive
  • Command and Control
  • Built Around Capabilities
  • Business Development
  • Focus on Creating Value
  • Networked
  • Interdependent
  • Responsive
  • Empowered

TRADITIONAL MODEL NATURAL BUSINESS UNIT MODEL

  • Managing Resources
  • Managing Assets

4

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The Aerospace & Defense Forum San Diego Chapter April 22, 2014 3

Natural Business Unit Attributes (NBU)

NBU’s:

  • Are Structured to concentrate on what they do best
  • Are Structured around product lines or customer segment
  • Must have identifiable unique capabilities
  • Have a well defined value proposition
  • Have the authority and responsibility for developing and executing either all
  • r a key portion of a strategy
  • Have accountability for revenue and profitability

5

NBU Design Framework

What The NBU Is

How Is It Structured

How It Works

3 Define Relationship with Global Core (Corporate) 2 Design NBU Structure 5 Define Linkages 4 Define business Services (Shared Services) 1 Define the Business

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The Aerospace & Defense Forum San Diego Chapter April 22, 2014 4

Identifying and Growing Our NBU’s

Define NBU Understand External Market Dynamics Determine Internal Capabilities Identify Gaps Align Organization to Market Requirements Assure Fit with Ducommun Way

  • Can I better define my

business system to deliver superior value to my customers?

  • Exploit synergies

between NBU’s

  • Do we have alignment

between structure and strategy

  • What are the customers

demanding today? In the future?

  • How is the industry

changing?

  • What are competitors doing
  • Are we capable of meeting

customer requirements today? In the future?

  • Are we responsive and timely

with delivery of products and services?

  • Are we cost advantaged?
  • Do customers perceive value

for price?

  • Do we have a sustainable

competitive advantage?

  • Competitive skills
  • Resources
  • Which Assets and

resources are required? 7

Value Lever

Efficiency Effectiveness

Effectiveness

Leveraging Cognizant's process, technology, and global delivery strengths to rapidly and cost effectively design and implement solutions that optimize spend, reduce unit costs, and positively impact your bottom line. Improving productivity and

  • perational performance via

standardization, better tools automation, etc., to achieve more effective business processes (driving reduced ticket volume, higher levels of availability, streamlined processes, improved satisfaction metrics, etc.)

Customer Benefit

Cost optimization via global service delivery, economies of scale, etc. Maximizing use of existing assets and resources to eliminate waste, reduce cost per unit, and implement cross-organizational standards for lower cost. Subscription-based pricing to reduce capital expenditures while

  • ptimizing processes.

Process optimization that fosters quality improvements while controlling costs. Increased control, transparency, and adaptability of ongoing

  • perations.

Decreased time-to-market for products and services 8

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The Aerospace & Defense Forum San Diego Chapter April 22, 2014 5

Value Lever

Virtualization Innovation

Effectiveness

Addressing multiple levels of virtualization including work (global knowledge and collaboration), process (atomization of processes), and technology (servers, applications, cloud-enablement) helps lower

  • perational and CAPEX costs

while boosting brand and shareholder equity. Business technology innovation to enhance revenue opportunities via new products, new IP, new market channels, etc., facilitated by Cognizant's domain expertise and knowledge.

Customer Benefit

Consolidated resources that enable lower cost of ownership

  • n existing assets and reduced

investment on new technology. Improved flexibility and collaboration across the enterprise through technologies that allow better resource utilization, new ideas, and knowledge management for global workers. Growth opportunities that provide direct revenue. Refined business models that drive additional revenue and strengthen bottom and top lines. Joint go-to-market opportunities with shared investments and revenue. 9

NBU Process

  • Business Development Considerations

– Technology Migration – Competitive Position – Outsourcing Trends – Global Demographics

  • Operations Centers Definition

– Product Focused – Definition – Built around capabilities – enabling process – Focus on creating value – Networked/Interdependences – linkages to other businesses

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The Aerospace & Defense Forum San Diego Chapter April 22, 2014 6

Original Structure Ducommun

Parsons , KS Coxsackie, NY Gardena, CA El Mirage, CA Orange, CA Monrovia, CA

Ducommun LaBarge Technologies

Joplin, MO Berryville, AR

Appleton, WI Tulsa, OK Huntsville, AR Phoenix, AZ Pittsburgh, PH Houston, TX Carson, CA

Ducommun Miltec

Huntsville AK Guntersville, AL Oxford, MS Iuka, MS

Ducommun AeroStructures Ducommun LaBarge Technologies Ducommun Miltec

11 12

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The Aerospace & Defense Forum San Diego Chapter April 22, 2014 7

Strategic Overview

Business Segment Value Propositions Market Segment Targeted Customers Interconnect Solutions

  • Low Volume/ High

Complexity

  • High Reliability
  • Design /Redesign
  • Harsh Environment
  • Military Upgrades
  • Commercial Aerospace
  • Engine Manufacturers
  • Natural Resources
  • Medical
  • Aftermarket
  • Rolls-Royce
  • Sikorsky
  • Parker
  • UTAS
  • Northrop

Circuit Board Solutions

  • Low Volume/High

complexity

  • Prototyping
  • High Reliability
  • Design/Redesign
  • Military Commercial

Aerospace

  • Defense Products
  • Medical
  • Moog
  • Parker
  • Lord
  • UTAS
  • Northrop

Aerospace Integrated Solutions

  • High Reliability
  • Product Lifecycle Mgmt.
  • Diverse Capabilities
  • Military Market

Expertise

  • Commercial Aerospace
  • Military Aerospace
  • Aircraft Engines
  • Parker
  • Moog
  • Rockwell
  • UTAS
  • Raytheon
  • Marvin

Industrial Integrated Solutions

  • Low volume/High

complexity

  • Product Lifecycle Mgmt.
  • High reliability
  • Harsh Environments
  • Design/Redesign
  • Mfg. Process Equipment
  • Heavy Industrial
  • Agricultural Equipment
  • Construction Equipment
  • Transportation
  • Natural Resources
  • Medical
  • John Deere
  • Caterpillar
  • Bombardier
  • Vision Robotics
  • GE Transportation
  • United Engines

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Strategic Overview (continued)

Business Segment Value Propositions Strategic Emphasis Targeted Customers Advanced Systems Development & Integration

  • Innovative solutions to

complex problems

  • Support to other

NBUs for Engineering Solutions

  • Missiles and Weapons
  • Nano-Satellites
  • NASA Prototypes
  • Missile Defense
  • SMDC
  • AMRDEC
  • DARDA
  • NASA
  • DCO Customers

Advanced Systems Engineered Solutions

  • High Reliability Products
  • Rapid Prototyping
  • Design/Redesign
  • Product Lifecycle

Management

  • Aerospace, Industrial,

Medical

  • RF Systems
  • Integrated Assemblies
  • HMI
  • Specialized Motors
  • Rockwell
  • Boeing
  • Honeywell
  • Sikorsky
  • Techtronic

Structure Assembly Solutions

  • Broad Capabilities
  • Hot Form/SPF
  • Low Cost Sub Assembly

and Finishing

  • Military & Commercial

Assemblies

  • Engines
  • Rolls-Royce
  • UTC
  • GKN
  • Spirit
  • Airbus
  • Sikorsky

Structure Systems Solutions

  • Higher Level Assembly

Integration

  • Range of Focused

Capabilities

  • Chemical Milling
  • EB Weld Capability
  • Military & Commercial

Aircraft

  • Engines
  • Spirit
  • Rolls-Royce
  • Pratt & Whitney
  • Honeywell
  • GE

Bonded Assembly Solutions

  • RTM Composites
  • Foam Matrix Core
  • Metal Bond Capability
  • Promote RTM/Foam

Matrix Capabilities Commercial and Military Aircraft

  • Boeing
  • Airbus
  • Bombardier
  • Sikorsky
  • Airline & Military

Maintenance Centers 14

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The Aerospace & Defense Forum San Diego Chapter April 22, 2014 8

Natural Business Unit Structure

Ducommun Corporate (Core)

Electronic solutions (DLT) Structure Solutions (DAS)

Electronic Systems Group (ESG) Advanced Systems Group (AST) Structural Systems Group (SSG)

Business Development

  • Market Segment Strategies
  • Customer Strategies
  • Strategic Planning
  • Market Analysis

Operational Excellence

  • Lean Enterprise
  • Supply Chain
  • Program Management
  • Engineering Design &

development

Human Resources

  • Organizational Development
  • Performance Management
  • Empowerment
  • HR Management

Finance & IT

  • Support and Enable Business

Processes

15

Electronic Systems Group

Inter Connect Solutions (ICS) Circuit Board Solutions (CBS) Aerospace Integrated Products (AIP) Industrial Integrated Products (IIP) Operations Centers Joplin, MO

Operations Centers Berryville

Operations Centers Appleton, WI

Operations Centers Tulsa, OK Operations Centers Phoenix, AZ

Operations Centers Huntsville, AR 16

Operations Centers Pittsburgh, PA Houston, TX OFS

Operations Centers Pittsburgh, PA

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The Aerospace & Defense Forum San Diego Chapter April 22, 2014 9 Advanced Systems Group

Systems Development & Integration (SDI) Engineered Products (EP)

Operations Centers Huntsville, AL Operations Centers

Guntersville, AL Oxford, MS Iuka, MS

Operations Centers Thailand Operations Centers Carson, CA

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Structural Systems Group

Structural Components (SC) Structural Assemblies (SA) Bonded Components (BC)

Operations Centers Parsons, KS

Operations Centers Coxsackie, NY

Operations Centers Gardena, CA

Operations Centers El Mirage Guaymas

Operations Centers Monrovia, Ca

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The Aerospace & Defense Forum San Diego Chapter April 22, 2014 10

Key Takeaways in Developing Your Growth Strategy

  • Understand your unique value propositions
  • Understand the capabilities required and in place to support the value

proposition

  • Align your structure to maximize capabilities and to derive maximum

value

  • Target specific market and customers
  • Align your Business Development and Sales Teams
  • Refresh the process regularly

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Discussion