1. Management Perspectives Steve Trieber GMU April 22, 2004

2. Organizational Rules. I will be accountable for my own actions and performance. I will evaluate the impact my decisions and actions have on others before moving ahead.. I will honor my commitments by doing what I said I would do, when I said I would do it, and if I cannot comply, I will notify as soon as possible. I will be courteous and respectful of others, be prepared, and on time. I will resolve differences directly and quickly. I will continue to learn and share my knowledge with others. I will support group and team decisions even if they are different than my own position. It is okay to agree to disagree. Always Have Fun Treat Others WellStand-up for your Team Create Opportunity

3. My Background 18 Yrs of Experience, 10 years management –Avionics, Missile, Satellite, SE&I and New Business Development –Hughes (LA), LMC (NJ, VA) Northrop Grumman (CA, VA) Education: BE, MSEE/SE, MBA Married for 18 Years - 3 kids, wife a teacher.

4. NGIT, TASC Corporate Background Headquarters: Los Angles, California 120,000 Worldwide Employees Leading Defense Enterprise $25+ Billion 2003 Estimated Revenue Leading Provider of Federal IT Services Merging of Logicon, PRC, TASC, TRW, etc. One of the Top Three Space Developers

5. NG Corporation Airborne Radars C 4 ISR Electronic Warfare Navigation & Guidance Military Space Homeland Security Tactical Aircraft Long Range Unmanned Airborne Early Warning & Surveillance Air-to-Ground Surveillance Airborne Jamming Naval Systems Integrator Aircraft Carriers Attack Submarines Surface Combatants Amphibious Assault Ships Auxiliary Ships Command, Control and Intelligence Digitized Battlefield ICBM Sys. Mgmt. Missile Defense BMC 3 Defense/Civil Software Application Dev. Information Warfare Homeland Security Intelligence, Surveillance, Reconnaissance Laser Weapons Military SATCOM Scientific Satellites Military Avionics Cutting-edge Micro- electronics ~$6.1B~$4.7B~$3.7B~$5.2B~$3.9B~$2.5B 2003E Revenue 2003E Revenue Integrated Systems Information Technology Information Technology Ship Systems / Newport News Ship Systems / Newport News Electronic Systems Electronic Systems Mission Systems Mission Systems Space Technology Space Technology C 4 ISR Government IT Infrastructure Science & Technology Information Security/ Assurance Enterprise Solutions Homeland Security

6. NGIT, TASC Corporate Background –37+ years supporting sensitive programs –More than 3,800 employees >55 % with Advanced Degrees – On-Site MS Programs: GW, George Mason, Old Dominion University >65 % with Active Top Secret Security Clearances. –Headquartered in Chantilly, VA –2003: $770 M Revenue $1700 M Backlog 18% Growth –SE&I & SETA Support to: NRO, CIA, NIMA, NSA, DOD TASC Seamless Communication System: IP based Private Intranet Space based Optical backbone HAIPE based Security Architecture Black core Red edge Every sensor, solider and weapon on-line

7. Customer Base: –DOD INTEL Organizations SE&I Operations Special Communications Modeling and Simulation –DISA/WHCA –Air Force/TCM Specialization: Satellite Comm, Modeling and Simulation, Radio/Wireless Comm., Network Architecture, SE&I Secure Mission Comms 15 Eng $2-3M 2001 60 Eng $15M 2004 100 Eng $30M 2005/6

8. Retain your engineering staff Maintain current customer base Get outstanding award fees Grow future leaders Get training for your staff ID 3-5 NEW customers Pursue 2-3 NEW opportunities and WIN Sell our IRAD Investment Secure Mission Comms - Mgmt Goals

9. Agenda - Open Discussion Decision Making process –How it relates to your project Real example –Background –How would you pursue the opportunity and get buy-in? –Outcome.

10. Sr. Mgmt Seeking (services org.) High returns High Win Rate Destruction of Competition in category –Own 75% of Market –Low Investment Costs (proposals) Capability to enter new markets - low cost to entry Outstanding Reputation Low turn-over employee rate Customers that pay their bills.

11. What answers you must have.. Before an investment or project will be started Who ? What ? Why ? How Much ? ENGINEERING MARKETING

12. Know your business - Growth-share Where you stand in the Company Outstanding Performer Potential Stars Cash Cow Poor Performer High Growth Slow Growth High ShareLow Share TASC

13. Competition and Strategy Strategy - Roadmap What is your environment - map it out –Understand your boundaries Competitive Environment Anticipate Competitive and Cooperative Dynamics Build and Sustain Success.

14. Know who you are presenting to (Customer or Manager). What do they like: –Lots of pictures –Text –Lots of Charts –3-5 Charts –Figures, Plots Willingness to gamble History - military, commercial, education Family Who they like Do they have money, are they the decision maker?

15. Decision Makers OPERATIONAL-LEVEL EMPLOYEES MIDDLE-LEVEL MANAGERS TOP- LEVEL MANAGERS Ability to override controls Control Mechanisms

16. Management Strategic Framework Environment & Trends Economic Technical Political Community Physical Opportunities & Risks ID Inquiry Assessment of Risk Distinctive Competence Capabilities: Financial Management Line organiz. Reputation History Corp. Resources Strengths Weaknesses IR&D Capability Consider Opportunities Evaluation of opportunity and resources necessary

17. Strengths, Weaknesses, Opportunities, Threats…. Business, engineering, decision making StrengthsWeaknesses   OpportunitiesThreats  INTERNAL EXTERNAL

18. Marketing Strategy Planning Process Customers Customers Company S.W.O.T. External Market Environment External Market Environment Narrowing down to a focused marketing strategy Positioning & Differentiation Targeting & Segmentation Competitors Target Market Product Price PlacePromotion Performance Metrics

19. Five Industry Forces Suppliers Differentiation Supplier concentration Substitutes Importance Volume Costs Threat of Forward/ backward Integration Substitutes Price Performance Switching Costs Buyer??? New Entrants Brand Identity Capital Requirements Proprietary Products Switching Costs Assess to Distribution learning Curve Access to Technology Lower-cost or higher quality Product design Gov’t policies Retaliation Industry Competitors Fixed Costs Product Differences Brand Identity Switching Costs Information Complexity Corporate Stakes Exit barriers Buyers Buyer volume Switching Costs Information Buyer Benefits Price-sensitivity Product Differences Brand ID Quality Incentives Factors to Consider

20. Value Net Customers Firm Suppliers CompetitorsComplementors A player is your complementor with respect to customers if customers value your product more when they have the other player’s product as well A player is your competitor with respect to customers if customers value your product less when they have the other player’s product as well A player is your complementor with respect to suppliers if it is more attractive for a supplier to provide resources to you when it is also supplying the other player A player is your competitor with respect to suppliers if it is less attractive for a supplier to provide resources to you when it is also supplying the other player Source: Adam Brandenburger and Barry Nalebuff, Co-opetition (New York: Currency Doubleday, 1996) The value net extends five forces to include more complicated supplier / competitor / customer relationships. It should also be quantified.

21. Threat of New Entry Rivalry Among Existing Competitors Bargaining Power of Customers Threat of Substitutes Bargaining Power of Suppliers Availability of Complements Expanded Industry Analysis Government and Standards Politics

22. Mission/Product Technology Matrix Market Penetration Product Development Market Development Diversification Present Mission New Mission Present ProductNew Product

23. Case Example You are a manager of a small department. You have an excellent staff and growing at 15% a year. You have been asked to start a new office in LA. –Your company has already spent over $2M and have no new customers and no engineers in Southern Cal. You worked in LA about 5-years ago as a manager. LA AFB has 2 new projects starting: –Space-base Radar –Next version of MILSATCOM You lost your last proposal effort –Spending over $150K.

24. Where do you start, and WHAT ???

25. Class Project 19941997200020032006 10 8 6 4 2 0 Network Growth MUX’s/Phone Switches Circuits Nodes Bandwidth