The technical expertise and domain know-how of our people differentiate our customer offerings from our peers. QinetiQ is trusted, impartial and independent – we are not a manufacturer. We rarely compete directly with aerospace and defence companies, but instead work in partnership with them.
We also work in partnership with customers, leveraging our assets, facilities and capabilities to deliver rigorous independent thinking that ensures they meet their goals.
QinetiQ’s level of customer intimacy has been developed over many years. Our specialist know-how about customer domains is nurtured by working in partnership to understand their problems, shape their needs and deliver solutions that help meet their challenges now and for the future.
Our principal revenue streams are research, technology, advice, test and evaluation, technology solutions and the royalties from licensing.
Our business model is robust and sustainable because our knowledge base is constantly refreshed. As well as enhancing the domain know-how and reputation of our people, our work provides a dynamic source of new intellectual property and future technology-based offerings.
As a business whose reputation and achievements are centred around our people, QinetiQ has low capital and resource requirements. Our future success is primarily dependent on our ability to recruit, develop and retain exceptional employees, subject matter experts and world renowned specialists.
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.