QinetiQ creates value by making the expertise and know-how of its people available to customers, both through contracts to provide services and by the creation of IP. The resulting knowledge base, which has been built up over decades, is continually updated by innovations generated during the advisory, test and evaluation stages, and research work undertaken by the Group in partnership with its customers.
All QinetiQ’s business operations are graded within a ‘Value Pipeline’. Whether well-established business models or new capabilities with unclear commercial potential, each is managed and invested according to three criteria:
Maturity: how ready is our offering and is there a ready market?
Possible size: can it one day earn significant profits?
Investment: how much will it cost to become a success?
Each individual business is responsible for its own research and development (R&D), customer relations, sales and delivery within the Group’s obligatory processes and controls. The business units develop their own ‘growth options’, reported to and reviewed regularly by the Group, in line with the size of investment. A growth option with up to $100m sales potential may be separated out as a new ‘Explore’ unit in its own right, with support from the corporate team. The units designated as ‘Test for Value’ are generally funded by customers as R&D programmes, with subsequent decisions as to their future in the Group made at the corporate level.
The Group itself manages the QinetiQ brand, defines the operating and governance framework, provides expertise in specific areas centrally where this increases efficiency, and is responsible for all decisions on any additional investment into a business – financial, technological or otherwise.
Investments are rigorously evaluated, reviewed and approved or rejected in line with defined processes and controls on a regular basis.
This ‘Value Pipeline’ approach gives the Group full visibility of, and direction over, its assets and capabilities, which combine to set it apart from competitors in helping to meet its customers’ biggest challenges.