Next was the Selex group of defense electronics companies, which has emerged as Selex ES. This has become customer focused and will now concentrate on competitiveness, performance, price and value, capitalizing on as much commonality as possible across its product range. “We might reduce the number of products” in this range, Soccodato says. But at least managers from different Selex companies should no longer find they had unknowingly teamed with opposing bidders on various contracts, putting themselves in competition with each other. “We need an effective group here, in the right businesses,” says Soccodato.
Finmeccanica’s response to declining defense budgets is to seek out emerging markets, especially in aeronautics, defense electronics and helicopters, highlighting technology for government and civil uses. Targeted strategic geographical areas include Brazil, Russia, India, Turkey, the Middle East, and North Africa. It is sharpening its approach to become more competitive, with time-to-market an essential factor. The company has previously stated it must change the way it thinks about marketing, sales and post-sales support, to adapt to the changing market conditions.
Meanwhile, investigations by Italian and Indian authorities following the arrest of prior chairman and CEO Giuseppe Orsi and AgustaWestland CEO Bruno Spagnolini are continuing. Those arrests have prompted wholesale changes to the management teams in a number of Finmeccanica-owned businesses. The company has also created an ethics committee in light of the scandal.