Defense Companies Face a "Transformer" Challenge Under Leaner Budgets
Episode Description
Like "Transformer" toy weapons, U.S. defense companies facing the new world of lean defense budgets must morph into new shapes to be able to offer customers value that supports ongoing growth. David F. Melcher, CEO of ITT Exelis, a defense, aerospace and information company spun off from ITT in 2011, considers the challenges in this Knowledge@Wharton interview. Melcher discusses the need for adapting to a 10-year down cycle in defense spending, forging new, "affordable capabilities" for defense needs, and building on existing technologies to create products and services increasingly apart from strictly defense revenues.
Brief Summary
Dave Meltchure discusses ITT Excelis's defense focus, industry challenges, and future growth strategies post-spin-off.
Key points
- Navigating Defense Industry Changes. Dave Meltchure discusses the challenges and shifts in the defense sector.
- Spin-off from ITT Corporation. Meltchure explains the rationale behind the company's separation from ITT.
- Cybersecurity in Defense. The company emphasizes its capabilities in cybersecurity for defense and commercial sectors.
- Opportunities Beyond Defense. Meltchure outlines potential growth areas in commercial markets.
- Future Strategies for Excelis. The CEO shares insights on the company's strategic direction and focus areas.
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Episode highlights
- Navigating Defense Industry ChangesDave Meltchure discusses the challenges and shifts in the defense sector.“The military's gone so high-tech in recent years.”1:43Dec 7, 2012
- Spin-off from ITT CorporationMeltchure explains the rationale behind the company's separation from ITT.“The theory was that if the company split up, then defense could be valued more.”4:16Dec 7, 2012
- Cybersecurity in DefenseThe company emphasizes its capabilities in cybersecurity for defense and commercial sectors.“We have a very extensive cyber protection capability.”8:43Dec 7, 2012
- Opportunities Beyond DefenseMeltchure outlines potential growth areas in commercial markets.“We have the potential to expand that going forward.”10:54Dec 7, 2012
- Future Strategies for ExcelisThe CEO shares insights on the company's strategic direction and focus areas.“We're trying to explore the frontiers of what's possible.”14:22Dec 7, 2012
Tension
45/ 100Some tension
