The new name Thales is far more than cosmetic-it marks the transformation
of the old Thomson-CSF into a true European company with a new culture
for today's world, according to Jean-Robert Martin, executive VP
and CEO of Thales Defence.
His group, which had revenues last year of just under 5 billion
euros and new orders of just a bit more, makes up 57% of the aerospace-defense-information
technology company.
Thales Defence has moved aggressively from its French base in the
last 18 months in pursuit of "multi-domestic" strategy
to be a home player in a number of countries-to the extent that
only half its 33,000 employees are French. Besides formation of
joint ventures in Korea and Australia, and taking a major shareholding
in Avimo in the UK and Singapore, its biggest move was the acquisition
last year of Racal Electronics in the United Kingdom for $7.8 billion,.
As a result Thales is a major player in Europe's two biggest defense
markets, France and the United Kingdom.
And this is where the culture of duality comes in.
"In Britain we must be British, and in France, French,"
Martin says. "We must be a citizen of every country we are
in, and aware of their national concerns."
This strategy achieves an economy of scale to combat competitors
in the United States, where the big defense budget is a major driver
of technology. Thales can now tap into the R&D budgets of each
country while managing its own resources to avoid the duplication
and waste of the past.
Technology developed in one country can become one of the building
blocks in Thales' armory for products developed for other countries
-- as long as there are no national security or sovereignty restrictions.
A second facet of duality is Thales' widespread cross-fertilization
across its three groups, using off-the-shelf commercial equipment
and knowledge in military applications, and vice-versa. One example:
Internet software protocol developed in information technology was
found to be equally applicable in Airbus and the Tiger helicopter.
A third aspect of duality is a continuing exchange of processes
and people across Thales' three groups, resulting in quicker time-to-market
for military equipment, and considerable efficiencies.
"So we have this duality not just in products, but in behavior,
too," notes Martin.
By John Morris
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