Establishing a foothold in the Defence Market

In my last blog I discussed leaving the Army. This time round I’d like to offer some thoughts on the challenges of establishing a business unit in the Defence market. It’s not easy, of that there is no doubt, and I guess I would summarise what you need to start with in the following few points:

  • Relevance
  • Knowledge
  • Credibility
  • Patience

I was brought into Microlise at a great time as the commercial business was and is booming, while the Ministry of Defence (MOD) had once again switched its sights back onto Telematics technology. It seems an obvious point, but having a product, technology or system that the MOD needs is key. Gone are the days that the Military leads technological advancement, but getting your message to the people that need to know is tricky (not least because of competition rules).

Telematics technology is a no-brainer for someone with a shrinking budget and growing demands – this applies in every sector – but is particularly true of the MOD.

Having a product that the MOD needs is one thing, but knowing how to apply it, pitch it and develop it is a whole other skill set. I have come to the company and piggy backed onto its several years of ground work and establishment of a working knowledge of Military HUMS associated requirements.

Again, it seems an obvious point, but the needs of the Army are often much different to those of the commercial sector, with key drivers being fundamentally different. There are, of course, clear comparisons to be drawn. Anyone breaking in to the Defence market should be under no illusion that developing and appreciating this knowledge is critical path activity. The MOD speaks, what can appear at times, a completely foreign language. Its procurement chain can seem cumbersome, inefficient and often archaic in its approach but often this is deliberate and for good reason.

Couple this with the unique requirements I mentioned before and a company without this knowledge can become unstuck very quickly. Now, you can’t just grow this level of understanding but there are a couple of ways around it.

The first and most expensive way is to contract in support initially. I know of a few former colleagues in the Military who have grown very successful businesses offering these particular services. The other option is to bring on board a former member of the Armed Forces, preferably who has worked in the Procurement Agency, DE&S. This is the path Microlise took, and I am very glad about that!

Credibility is something I perhaps underestimated or didn’t understand when I was serving, and has been one of the most fascinating insights I have had now that I am on the other side of the fence. Military people like to talk military, and they like to talk to someone who knows what they are talking about! Having all the technological know-how in the world is almost irrelevant if you are unable to translate that knowledge in to something that the Military will appreciate. The ability to bring to life your product with relevant military experience is such a powerful tool, and one I only get now having been to several military expos/conferences and seen this first hand.

And finally patience. Public sector procurement can, at times, be infuriating and disheartening, if you let it. The folks in green/blue and the civil servants supporting them have layers upon layers of scrutiny, an ever changing funding line and accountability that would make some people reading this gasp. The process itself is, necessarily, restrictive and competitive (it’s us tax payers footing the bill after all). These factors combined mean that you can spend weeks and months crafting a bid based on scraps of information only for it all to be cancelled at the last minute (again I have experienced this on both sides). My advice, stick in there, it’s definitely worth it when you win one!!

So, with these points in mind, does Microlise Defence have a future?! Time will tell, and for the sake of my employment I do hope so. But I’m confident that the team will be successful. We have a market leading technology that the MOD needs and wants. I am a late comer to Microlise, which already has several years of understanding what the MOD requires from telematics, so that box is ticked as well. Most importantly, we have a Board of Directors who are determined to succeed, who are patient and appreciate the complexities involved. That level of support you just can’t buy.

In my next blog I’ll be discussing some of the differences between the MOD’s and commercial companies’ needs from telematics.