0. Innovation at CMC Electronics: Challenges and Solutions

1. Contents Overview of CMC Competitive Environment
Products / Solutions
Markets
Competitive Environment
Competitive Challenges
Innovation Strategies
Conclusions

2. CMC Overview

3. CMC’s Product Lines
Cockpits
Aviation Products
Custom Electronics 3

4. Custom Electronics Custom Electronics Cockpits Aviation Products 4
Displays
Specialized
Sub-systems
Cockpits
Microelectronics
Aviation Products
JSF
Apache
Custom Electronics
A400M 4

5. Satellite Communications
Aviation Products
Electronic
Flight Bags
Enhanced
Vision Systems
Satellite Communications
Antennas
FMS/GPS
Cockpits
Head-Up Displays
Global 7000
EC-145
Aviation Products
Custom Electronics
A310
PC 21
UH-60

6. CMC’s Cockpits Cockpits Aviation Products Custom Electronics SmartDeck
T-6B
Cockpits
Aviation Products
C-130
KT-1
Custom Electronics
King Air 350
T-6B

7. Highly Diversified, Balanced Customer Base — Export Oriented
Business by Sector
International
35%
Military
55%
Retrofit
60%
Canada
15%
United States
50%
Commercial
45%
OEM
40%
Highly Diversified, Balanced Customer Base — Export Oriented 7

8. Competitive Environment

9. Satellite Communications
Aviation Products
Electronic
Flight Bags
Enhanced
Vision Systems
Satellite Communications
Antennas
FMS/GPS
Cockpits
Head-Up Displays
Global 7000
EC-145
Aviation Products
Custom Electronics
A310
PC 21
UH-60

10. Competition Broadly diversified Typically large
Typically vertically integrated, using their own products
Rockwell-Collins
Honeywell
Thales
Elbit GE
Garmin

11. CMC’s Cockpits Cockpits Aviation Products Custom Electronics SmartDeck
T-6B
Cockpits
Aviation Products
C-130
KT-1
Custom Electronics
King Air 350
T-6B

12. Competition For transport aircraft retrofits:
Aircraft manufacturers: Boeing, Lockheed-Martin
Other systems integrators: Rockwell-Collins, Lockheed-Martin, Northop-Grunman
Small, local integrators: ASB, DERCO
For trainers and light attack
Aircraft manufacturers: BAE
Integrators and Tier 1: Elbit, IAI
General aviation suppliers: Garmin
For general aviation forward fit and retrofit
Other suppliers: Garmin, Avidyne, IS & S, Honeywell, Rockwell-Collins

13. Competitive Challenges

14. Challenges Supporting very diversified product portfolio
Keeping a leadership position in diversified markets
Competing with large, vertically-integrated, global competitors
Managing a multi-site organization

15. Innovation Strategies

16. Multiple Strategies Needed – Why?
Need for ideas
How to get the differentiators?
How to understand the operational environment of our products?
How to trigger new ideas and turn them into marketable solutions
Need for funding
How to do more with less investment?
Need for the right Highly Qualified Personnel
How to get, develop and maintain the required personnel?
Need for strong supply-chain
How to get the right partners/suppliers?
How to flow down innovation down to suppliers?
How to flow up innovation from suppliers?
How to create innovative partners?

17. Multiple Strategies Needed
Leveraging customer funding
Because of the niche markets and some customization, CMC is able to get customer funding
Leading to a zig-zag product evolution; generally consistent with product roadmap, but addressing very specific customer requirements
Good source of product differentiation due to closeness to key customer needs

18. Multiple Strategies Needed
Maximizing re-use
Developing solutions for multiple applications
Forcing solutions with commonality and design for multiple applications
Challenging with to do concurrently with a customer-funded strategy

19. Multiple Strategies Needed
Pre-competitive collaboration
Working with different partners towards complementary goals
Access typically to unknown approaches or needs

20. Sourcing CMC does not have the complete solution
Acquiring innovation as part of supply agreements
Selecting innovative companies as partners in systems solutions
« Risk-sharing »; we invest, they invest

21. Multiple Strategies Needed
Research and Innovation Consortia
Member of the Consortium for Research and Innovation in Québec (CRIAQ) from the beginning
Founding member of GARDN
Member of SA2GE
Project: IMA for Cockpit Applications
Support the development of technologies from Technology Readiness Levels 1 to 6
Connects to the university researchers
Allows access to a different network
Allows access to future employees

22. Multiple Strategies Needed
Standards Committees
Attend committees of key emerging standards, create and promote new ideas, or at the very least influence them
GPS/SBAS(RTCA)
Cockpits (ARINC)
NextGen/SESAR

23. Multiple Strategies Needed
Leveraging Technologies
Technology watch and technology roadmaps
Integration of technologies yield different levels of innovation
A simple new technology added to a product can expand its life
New touchscreen to an old display, wireless connection, etc
Importing technologies from other fields – aerospace is NOT where Electronics evolve
Military infrared sensors led to Enhanced Vision Systems sold in Business Aviation
Ethernet led to AFDX network used on A380

24. Multiple Strategies Needed
Processes and Culture
SCRUM / Agile Software Development
Rapid Prototyping: hardware and software

25. Conclusion

26. Conclusion
Innovation is key to survival and growth with our diversified markets and products
Multiple innovation strategies operating in parallel are essential
Strategies need to cover all Technology Readiness Levels, and reach beyond our industry