Practical Experiences in Collaborating with US Industryproceedings.ndia.org/3990/dyke_slides.pdf · Practical Experiences in Collaborating with US Industry---- ... the Society of

LeafieldLeafieldGroup Limited

Practical Experiences inPractical Experiences inCollaborating with US IndustryCollaborating with US Industry

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A UK SME PERSPECTIVEA UK SME PERSPECTIVE

Robert (Bob) A. DykeRobert (Bob) A. DykeLeafield Engineering LimitedLeafield Engineering Limited

2424thth February 2003February 2003


A few personal examples of A few personal examples of success and failure in my success and failure in my

US dealings US dealings

(names of many of the organisations involved have been (names of many of the organisations involved have been suppressed suppressed to protect me!)to protect me!)


Case 1Case 1

A major US missile A major US missile programeprograme needed a worldneeded a world--beating target detection sensor/beating target detection sensor/fuzefuzeThe UK had researched and demonstrated The UK had researched and demonstrated technology to meet the needstechnology to meet the needsThe US already had two contractors under The US already had two contractors under contract to develop the sensorcontract to develop the sensorWe did not have a technical specificationWe did not have a technical specification we were informed that as this was classified it we were informed that as this was classified it would take some time to provide to the UK!!would take some time to provide to the UK!!We were confident that our solution was We were confident that our solution was technically the best to meet our view of the technically the best to meet our view of the requirementsrequirements


Case 1Case 1what happened next?what happened next?

A foresighted A foresighted DoD DoD project manager invited us to project manager invited us to supply (at our own expense and risk) sensors for a supply (at our own expense and risk) sensors for a flyfly--off trials programoff trials programOur UK device was demonstrably more successful Our UK device was demonstrably more successful Red tape evaporated Red tape evaporated after 18 months, classified after 18 months, classified specifications amazingly appeared within daysspecifications amazingly appeared within daysSuccess Success -- our solution was taken forward into the our solution was taken forward into the weapon that is inweapon that is in--service todayservice todayA customerA customer--primeprime--supplier team approach was supplier team approach was successfully adopted successfully adopted Because of the potential level of business and Because of the potential level of business and sensitivity of the technology, we were encouraged sensitivity of the technology, we were encouraged to seek a US partnerto seek a US partner


Case 1Case 1--the hunt for a suitable US partnerthe hunt for a suitable US partner

First potential partner:First potential partner: knew better and wanted to completely redesign our knew better and wanted to completely redesign our

successful sensorsuccessful sensorSecond potential partner:Second potential partner: lukeluke warm about getting involved (actions not words)warm about getting involved (actions not words) failed to turn up to a customer CDRfailed to turn up to a customer CDR what happened??what happened??

Third partner:Third partner: were keen and manufactured an educational buy of units were keen and manufactured an educational buy of units

under our technical guidanceunder our technical guidance

A costly and time consuming processA costly and time consuming processIn the end the majority of sensors were manufactured and In the end the majority of sensors were manufactured and

successfully provided directly from the UKsuccessfully provided directly from the UK


Case 1Case 1success success but some early lessonsbut some early lessons

Try and really understand what you are being asked to do or askeTry and really understand what you are being asked to do or asked ford forBe realistic Be realistic its easy to be seduced by the outstanding market its easy to be seduced by the outstanding market opportunities opportunities (in this case the educational buy equalled the total UK procur(in this case the educational buy equalled the total UK procurement of ement of a similar system!!)a similar system!!)Identify the key people in the customer communityIdentify the key people in the customer communityIdentify people to champion your cause in the customer(s) Identify people to champion your cause in the customer(s) organisation(s)organisation(s)If you have IPR invested in the product do your best to hang on If you have IPR invested in the product do your best to hang on to it to it in in this case I had three patents which were not released to the thethis case I had three patents which were not released to the the US until we had US until we had manufactured over x tens of thousands of unitsmanufactured over x tens of thousands of unitsBe prepared to invest, and invest and invest againBe prepared to invest, and invest and invest againBe prepared to seek, and be proBe prepared to seek, and be pro--active in seeking, inactive in seeking, in--country partnerscountry partners

Remember Remember seeking a partner is a bit like a marriage seeking a partner is a bit like a marriage chose very chose very carefullycarefully

divorce can be a very expensive process!!!divorce can be a very expensive process!!!


LeafieldLeafield -- who are we?who are we?Private UK company with three niche businesses Private UK company with three niche businesses two defence one commercial two defence one commercial Employing 150 people near Bath/BristolEmploying 150 people near Bath/BristolProud owner of an undergroundProud owner of an underground18 acre ex18 acre ex--stone mine used for:stone mine used for: storage of $1.4bn of UKstorage of $1.4bn of UK

exex--Royal Navy equipmentRoyal Navy equipmentproviding logistic supportproviding logistic supportto over 60 vessels worldwideto over 60 vessels worldwide((LeafieldLeafield Logistics & TechnicalLogistics & TechnicalServices Limited)Services Limited)

assembly and test of explosiveassembly and test of explosiveequipment for weaponequipment for weaponand other applicationsand other applications


LeafieldLeafield -- who are we?who are we?Worlds leader in gas inflationWorlds leader in gas inflationsystems for life raftssystems for life rafts((LeafieldLeafield Marine Limited)Marine Limited)LeafieldLeafield Engineering Limited:Engineering Limited:A designer, an integrator, a tester of subA designer, an integrator, a tester of sub--assemblies/equipment for the defence market assemblies/equipment for the defence market particularly missiles, bombs, torpedoesparticularly missiles, bombs, torpedoesSpecialises in equipment with explosives content Specialises in equipment with explosives content safety & arming devices, safety & arming devices, fuzesfuzesNo. 1 supplier ofNo. 1 supplier of pyromechanismspyromechanisms to the UK to the UK defence marketdefence marketwww.www.leafieldleafield.co..co.ukuk


The changed face of theThe changed face of theUK defence industryUK defence industry

Significant rationalisation of the defence industry at Prime Significant rationalisation of the defence industry at Prime Contractor level Contractor level mergers, takemergers, take--oversovers, strategic alliances, strategic alliancesHaving made earlier decisions to reduce their reliance on Having made earlier decisions to reduce their reliance on vertical integration, some find that they are, once again, more vertical integration, some find that they are, once again, more vertically integrated with hungry offshore mouths to feedvertically integrated with hungry offshore mouths to feedA UK MoD defence policy of open competition implemented A UK MoD defence policy of open competition implemented through a successful Smart Procurement process through a successful Smart Procurement process this has this has resulted in resulted in significantsignificant offshore procurement by the UK Ministry offshore procurement by the UK Ministry of Defenceof DefenceUK companies face obstacles in penetrating overseasUK companies face obstacles in penetrating overseas defencedefencemarketsmarketsTo offset the effect of open competition, the UK have adopted To offset the effect of open competition, the UK have adopted an Industrial Participation (IP) policyan Industrial Participation (IP) policy


UK Industrial Participation (IP)UK Industrial Participation (IP)---- Policy Policy ----

To encourage offshore To encourage offshore companies to provide companies to provide

opportunities for UK industry to opportunities for UK industry to secure secure defencedefence related business related business

otherwise placed overseasotherwise placed overseas


UK Industrial Participation (IP)UK Industrial Participation (IP)---- The IP Proposal The IP Proposal ----

Invited at bidding stage of competition Invited at bidding stage of competition

For all offshore bids >10mFor all offshore bids >10m(subject to possible revision as far as the USA is concerned)(subject to possible revision as far as the USA is concerned)

Proposals describe the work to be placed in Proposals describe the work to be placed in UK UK

Proposals submitted as part of the tender Proposals submitted as part of the tender documentation to the documentation to the DefenceDefence Export Services Export Services OrganisationOrganisation (DESO) (DESO) subsequently subsequently monitored by themmonitored by them


For further informationFor further informationplease contact the:please contact the:

DESO WEBSITE: www.deso.mod.uk


The The DefenceDefence Manufactures Association (DMA) and Manufactures Association (DMA) and the Society of British Aerospace Companies (SBAC) the Society of British Aerospace Companies (SBAC)

have formed the IP Forumhave formed the IP Forum

We provide an onWe provide an on--line data base covering line data base covering member company capabilities, future UK member company capabilities, future UK MoD MoD opportunities opportunities a onea one--stopstop--shop for offshore shop for offshore organisationsorganisationsWe run main meetings of its members, at which We run main meetings of its members, at which obligors are invited to give presentations obligors are invited to give presentations next next meeting at Leafield on 1meeting at Leafield on 1stst MayMaySupports IPSupports IP--related Trade Missions related Trade Missions I highly I highly recommend these to UK companies recommend these to UK companies contact contact Linda Lloyd Linda Lloyd -- SBACSBAC


For further information on theFor further information on theIP FORUM contact:IP FORUM contact:

Brinley SalzmannBrinley SalzmannTel: 01428 602622Tel: 01428 602622Fax: 01428 604567Fax: 01428 604567

URL: www.theURL: www.the--dmadma.org..org.ukukEE--Mail: b.Mail: b.salzmannsalzmann@[email protected]


What does all this do for What does all this do for SMEsSMEs????

Makes life Makes life even moreeven more challenging than it was before:challenging than it was before:To survive, small and medium size enterprises have to market To survive, small and medium size enterprises have to market themselves into the significantly changed market placethemselves into the significantly changed market placeSome questions:Some questions: Have you got the budget/overhead to support the marketing Have you got the budget/overhead to support the marketing

imperatives?imperatives? Whats the state of your marketing literature?Whats the state of your marketing literature? Check you web site Check you web site not got one? not got one? you want to work in the US? you want to work in the US?

better get onebetter get one Do you exhibit? NO? Do you exhibit? NO? I know its expensive but well directed it can I know its expensive but well directed it can

be cost efficientbe cost efficient It was tough before, its going to be even tougher now It was tough before, its going to be even tougher now are you are you

prepared?prepared?

InIn LeafieldLeafield Engineering we have adopted the IP route to Engineering we have adopted the IP route to improving our profile and attempt to work in the USimproving our profile and attempt to work in the US


If life wasnt exciting before it If life wasnt exciting before it is now!! How about:is now!! How about:

Heat stroke in ArizonaHeat stroke in ArizonaAvalanches in ScandinaviaAvalanches in ScandinaviaTornados in AlabamaTornados in AlabamaBullets and bombs in Tel AvivBullets and bombs in Tel AvivGolfers elbow in Florida!!Golfers elbow in Florida!!


Case 2Case 2A US company bidding into a major UK prime contract was looking A US company bidding into a major UK prime contract was looking for for UK suppliers to support their Industrial ParticipationUK suppliers to support their Industrial ParticipationThey obtained the necessary licenses from the state department fThey obtained the necessary licenses from the state department for the or the transfer of the data packstransfer of the data packsLeafieldLeafield applied applied significantsignificant resources into seeking further UK suppliers resources into seeking further UK suppliers to support our proposalto support our proposalWe produced a substantial proposal We produced a substantial proposal technically compliant, low risk technically compliant, low risk and cost competitiveand cost competitiveThis was well received by the companies procurement department aThis was well received by the companies procurement department and nd we constantly received very warm noiseswe constantly received very warm noisesHOWEVERHOWEVERThe customers procurement organisation changed and we received The customers procurement organisation changed and we received the following:the following:In response to your question regarding your proposal for the **In response to your question regarding your proposal for the ******** ****** *****, those items will be procured from the past/current source*****, those items will be procured from the past/current source in the in the US. An official notification is expected to be sent to you sooUS. An official notification is expected to be sent to you soon n requesting the return or destruction of the documents. Your intrequesting the return or destruction of the documents. Your interest erest and cooperation are appreciated and we look forward to future and cooperation are appreciated and we look forward to future opportunitiesopportunitiesThat was all we got!!That was all we got!!


Case 2 Case 2 -- LessonsLessonsWe failed to really understand what was going onWe failed to really understand what was going onWe dealt with our potential customer at arms length, did not geWe dealt with our potential customer at arms length, did not get t off our butts and visit himoff our butts and visit himThe results:The results: we wasted a lot of time, money and resources (probably on we wasted a lot of time, money and resources (probably on

both sides of the Atlantic)both sides of the Atlantic) The company is struggling to meet its IP obligations!!!The company is struggling to meet its IP obligations!!!

In another similar case I was told by the senior purchasing In another similar case I was told by the senior purchasing manager that manager that LeafieldLeafield clearly have the technology and are clearly have the technology and are lower cost than the US supplier BUT I would rather keep the lower cost than the US supplier BUT I would rather keep the work with our US vendorwork with our US vendorAn understandable position An understandable position its a low risk strategy its a low risk strategy but did but did nothing to enhance the IP package on their UK bidnothing to enhance the IP package on their UK bidThe sequel:??????The sequel:??????


Case 3Case 3-- UK Light Forces AntiUK Light Forces Anti--armour armour --

Over a number of years we have maintained contact with Over a number of years we have maintained contact with the US prime contractors, particularly Raytheon and the US prime contractors, particularly Raytheon and Lockheed Martin (and their JV company)Lockheed Martin (and their JV company)The Javelin JV sought UK companies that could support The Javelin JV sought UK companies that could support their positive and serious attempts to realise the UK their positive and serious attempts to realise the UK Industrial Participation requirementsIndustrial Participation requirementsLeafieldLeafield provided support to the Javelin JV bid into the UK provided support to the Javelin JV bid into the UK requirement for the Light Forcesrequirement for the Light ForcesThe JV adopted an integrated teamThe JV adopted an integrated teamapproach and were successfulapproach and were successfulWe look forward to working withWe look forward to working withthem to meet the UKs needsthem to meet the UKs needs


Case 3 Case 3 -- lessonslessons

Keep looking at the needs for UK procurement Keep looking at the needs for UK procurement the IP the IP FORUM website has some good pointersFORUM website has some good pointersTalk to the appropriate integrated project team members Talk to the appropriate integrated project team members Get intelligenceGet intelligenceTry and contact likely biddersTry and contact likely biddersKeep your eyes peeled for bidders conferencesKeep your eyes peeled for bidders conferencesBe prepared to become exclusiveBe prepared to become exclusiveBe prepared to invest significant time and money in Be prepared to invest significant time and money in providing responsive support to your Prime Contractorproviding responsive support to your Prime ContractorBe prepared to support by engaging your local Member of Be prepared to support by engaging your local Member of Parliament, chambers of commerce, press, development Parliament, chambers of commerce, press, development agencies, etc.agencies, etc.


A message to UK IndustryA message to UK Industry

Doing business with the US can be successful but is very tough uDoing business with the US can be successful but is very tough unless:nless:You have some technology that is:You have some technology that is: Needed by a programNeeded by a program Available at the right timeAvailable at the right time Low costLow cost

You are a company that:You are a company that: Can provide some tangible benefits Can provide some tangible benefits technology, risk, costtechnology, risk, cost Can add political/technical support to the US Prime contractor iCan add political/technical support to the US Prime contractor in n

pursuance of a UK programmepursuance of a UK programmeYou have excellent inYou have excellent in--country support or are prepared to travel frequentlycountry support or are prepared to travel frequentlyYou have the determination (and the resources) to succeedYou have the determination (and the resources) to succeedDont be proud Dont be proud -- seek help seek help the MoD/DESO/trade the MoD/DESO/trade missions/DTI/Embassys, etc., etc.missions/DTI/Embassys, etc., etc.Be ASTUTEBe ASTUTE


A message the other wayA message the other way

US companies US companies be open mindedbe open mindedBe as open as you can be in your communicationsBe as open as you can be in your communications(I recognise that license issues can slow this down (I recognise that license issues can slow this down and often is the nail in the coffin as far as UK and often is the nail in the coffin as far as UK involvement is concerned)involvement is concerned)There is a significant UK supplier base which has There is a significant UK supplier base which has the technology, technical capability and will to the technology, technical capability and will to support you in your endeavours to win UK work support you in your endeavours to win UK work --why not use this capability back in the US? why not use this capability back in the US? We should work together more We should work together more a bit more of a twoa bit more of a two--way street would be helpfulway street would be helpful

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Practical Experiences in Collaborating with US Industryproceedings.ndia.org/3990/dyke_slides.pdf · Practical Experiences in Collaborating with US Industry---- ... the Society of