Year 1 Report
January 22, 2016
Mr. Mike Coleman Military Affairs Liaison and Program Manager Commonwealth of VA Department of Veterans Affairs & Homeland Security Richmond, VA
Submitted by: Mr. Bill Donohue President / Executive Director GENEDGE 32 Bridge St, Suite 200 Martinsville, VA 24112 Office (276) 666-8890, ext. 222 Mobile (276) 732-5755
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Table of Contents
Part 1 Executive Summary _________________________________________________ Page 3
Part 2 Background _______________________________________________________ Page 4
Ø Effect of sequestration in Virginia Ø GENEDGE Ø Program goals
Part 3 Company Selection and Participation __________________________________ Page 5
Ø Process and methodology Ø Schedule Ø Summary of applicants and acceptances Ø Participating companies a. Demographics by size b. By geography c. By industry cluster
Part 4 Project Synopses ___________________________________________________ Page 10
Ø Summary table Ø Representative case studies (in Appendix)
Part 5 Results __________________________________________________________ Page 11
Ø Financial report/statement Ø Participant feedback at Leadership Exchange Ø Performance vs. expected metrics
Appendices _____________________________________________________________ Page 13
Ø Case studies and video testimonials Ø Delivery team bios
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Part 1 Executive Summary
GENEDGE is pleased to submit this report on our efforts to help companies diversify through the Domestic Markets Expansion Program (DMEP). DMEP assists Virginia Department of Defense supply chain companies with 20 to 500 employees that are suffering from the effects of sequestration. We identify businesses with leadership that has a desire to expand their industrial and commercial offerings to reduce dependence on DoD business and provide the assistance they need to improve their business resiliency. In FY 2015, GENEDGE marketed DMEP across Virginia, to about 2500 companies we identified through analysis of the George Mason University database. We were fortunate to have the support of the Honorable Maurice Jones, VA Secretary of Commerce and Trade, who assisted us in a very effective direct mail campaign. 62 of those companies attended workshops around the state with 38 deciding to formally apply for the program. The companies applying to the program identified over $570 Million in sales and nearly 1500 jobs at risk due to the DoD cutbacks. 38 companies applied, 34 applications were accepted and assessed. Ultimately, 22 companies were selected for assistance. Summarized in this report are the stories of most of the companies we worked with on strategic, innovative approaches to grow their businesses. We are pleased that nearly 60% of the companies are already reporting projected impact (others are still in process) totaling a combined $184 million in annualized new sales, over 400 new jobs and over 100 retained jobs. These early results already exceed our promised sales revenue objective and exceed the expectations for job creation targeted by this effort. Our professional team biographies including our Program Manager, Dean Young are also included for reference. They have done an exceptional job for our clients. We’re off to a great start again with DMEP year 2. We are very pleased that the program will have allowed us to reach 5% market penetration, and provide for another sellout year. The need is great. The opportunities are greater.
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Part 2 Background
Ø Effect of Sequestration in Virginia Virginia continues to be the top state recipient of federal government contract awards. However, Federal procurement spending in Virginia declined by more than $30 billion, or about 33%, from the fiscal year 2010 – 2015 1 . 13.1% of the state GDP reflects a 12.8% concentration of total U.S. defense spending, equating to $7,115 per resident 2 . With DoD spending cuts extending into 2018 the direct impact on employment in Virginia is a projected reduction of 82,099 jobs 3 . Job losses in supply chain operations could be as high as another 82,126 jobs. ODU’s December 2015 economic report 1 states Virginia’s GDP grew only 0.02% in 2014 and predicts a 1.3% increase this year compared with national GDP at about 2.4%, with similar numbers in 2016. Ø GENEDGE GENEDGE is a consulting enterprise whose mission is to enhance the productivity and technological performance of Virginia’s manufacturing and industry. GENEDGE is a Commonwealth of Virginia unit, with continuous operations since 1994. We deliver consulting based expertise and technology transfer to over 200 companies each year to improve competitiveness, create jobs and sustain employment. We do this by helping our clients strategically identify, develop and commercialize growth opportunities, increase productivity, lower costs, accelerate technology application, and strengthen team performance through services customized for the needs of individual enterprises. Our national affiliation with the Manufacturing Extension Partnership (MEP) network provides access to industry-wide services and proven, results-based solutions. GENEDGE affiliates also include the Manufacturing Technology Center (MTC) in Wytheville, VA and the Old Dominion University Business Gateway (ODUBG) in Norfolk, VA. For more info, please visit www.genedge.org Ø Program Goals The goal of the Virginia Domestic Market Expansion Program is to help companies diversify their business models to be less reliant on DoD business to maintain their viability. GENEDGE has utilized the OEA funds to help companies create and execute business growth initiatives leading to new products, services, markets, sales, and the adoption of new technologies. The program also directly supports the Governor’s initiative to develop the “New Virginia Economy”. Over 2,500 Virginia companies were eligible to participate in the DMEP program, the scope of which focused mainly on three sectors: Professional and business services, information technology, and manufacturing businesses that have a significant footprint in the DoD supply chain.
1 ODU’s Strome College of Business for the Virginia Chamber Foundation, December 2015 2 DoD OEA report 3 OEA funded George Mason study
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Part 3 Company Selection and Participation Ø Process
Ø Methodology GENEDGE used the OEA funded George Mason Study to identified Virginia companies within the DoD supply chain who would be impacted by sequestration and would be likely candidates for DMEP. We proactively reached out to these companies to build a pipeline of prospects. Interested companies were required to attend an introductory workshop and apply for the program to verify that the company met key criteria such as company size, interest in diversifying to commercial markets, and effect of sequestration on their business. Introductory workshops were held in Northern Virginia, Hampton Roads, Western VA and Richmond to facilitate statewide opportunity for participation. Companies were accepted for assessment based upon employment (20-500 employees); the effect of potential effect of sequestration; readiness for change; and the ability of executive management to devote time to the process. The CoreValue® software tool was used to perform a business value assessment on the selected companies. A series of questions is asked regarding 18 Value Drivers in order to compare the company’s status relative to best practices. Ratings are calculated, and the company’s Enterprise Value 4 is plotted and compared against an industry norm to estimate a value gap. Applications were gathered via online submission and in person during regular prospecting efforts.
4 Enterprise value (EV) tries to measure the true worth of a business. More comprehensive than the market capitalization, it is often referred to as the takeover value – the amount of money required for an acquirer to buy a company at current market price, inclusive of cash, debt, and other items associated with a business.
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On average the CoreValue® assessments of the participating companies showed the following Value Drivers that most needed to be addressed for the firms to achieve maximum Enterprise Value:
Custom proposals with specific plans for dedicated services, based on the results of the assessment were presented to each company. Most proposals began with a Strategy /Opportunity Evaluation:
§ Structured systematic approach to help companies transform and evolve their businesses by developing new meaningfully unique product/service ideas that are dramatically different from existing offerings.
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§ The session revealed a number of strategic gaps, primarily in externally facing “Market” drivers, and internal strategic alignment necessary to deliver on long term strategic direction. § In most cases, the assessment identified a solidly run company that had been historically successful in serving a few dedicated customers in the challenging DoD market but without a clear strategic focus for growth. Phase 2 delivery services were executed to companies who signed on to their custom proposal – 90% paid by grant; 10% cost share by client.
Project close out was conducted with the company upon successful completion of the phase 2 engagement.
1 st Q Year 1 2 nd Q Year 1 3 rd Q Year 1 4 th Q Year 1
X X X X X
X X X X X
Outreach and awareness of program
Outreach workshop schedule
Estimated service delivery dates
Advisory board meetings
Ø Summary of applicants and acceptances
• Sixty-two (62) companies attended one of eight Introductory Workshops • Total of 38 Applications/34 Completed Assessment / 22 Contracted • The 38 companies accepted into the DMEP program for Year 1 estimated potential impacts from sequestration of $570 Million in Revenue and nearly 1500 Jobs affected or at risk
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Ø Participating companies
a. Demographics by size
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a. By revenue
b. By geography
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Part 4 Project Synopses
Ø Participating companies
VA-DMEP Year 1 Participating Companies
Empl in VA Business Description
94 332 295 Sources and delivers industry-leading equipment and services, provides customers with streamlined procurement vehicles and offers value-added services solutions. 85 170 170 Provide marine repair services to the United States Navy, United States Army, and commercial ships. 80 28 28 Full service general contracting services, construction management, design build services and security solutions. 65 84 84 Coat and laminated fabrics to support fabrication of military shelters and vehicle covers. 83 22 22 Develops physical vapor deposition technologies that enable advanced coating solutions. 100 131 21 Engineering services, Operations Research Logistics and Light Industrial Production 100 220 156 Systems Engineering &Technical Assistance (SETA) services and Advisory and Assistance Services (A&AS) to the DoD 100 166 43 Services-oriented engineering/installation telecommunications, ITand management/administrative support. 70 43 43 Provide hoses of various types (hydraulic fuel cooling etc.) and a variety of rubber products. 95 27 20 Engineers cutting-edge deployable baseband communication network solutions; design, product manufacturing, and systems integration. 12 29 29 Chemical and explosive detection devices and Research and Development to support such devices 50 62 42 Software productivity company focusing on the use of advanced tools techniques and methods to deliver outstanding systems development and operational productivity. 99 75 75 Marine Ship repair and fabrication.All phases of HM&E
Virginia Beach www.adsinc.com
Axis Global Enterprises Inc.
Virginia Beach www.axisge.com
Directed Vapor Technologies International Inc DLS Engineering Associates Inc.
Virginia Beach www.dlsengineering.com
Femme Comp Inc.
Hampton Rubber Company
MF&B MARINE LLC MissionMobility LLC
Morphix Technologies Inc.
Virginia Beach www.morphtec.com
Phoenix Group of Virginia Inc 74 61 57 Program management, engineering/logistics support, first responder products and services
R&K Solutions Inc.
90 85 72 Provide a range of services associated with managing and maintaining a large inventory of facilities 65 128 49 Provides Operations and Program Support, Information Technology Services and Facilities Management Services
Strategy And Management Services Inc Superior Marine Solutions LLC
Project Management and Technical Service Provider for Department of Defense and Department of Homeland Security Engineering and manufacturing services including machining, sheet metal , welding, waterjet cutting, metal finishing and marking, assembly services for electrical control panels, electronic assembly, cabling and testing. Custom-designed rugged electronic equipment Inform tion Technology, contract manufacturing and advanced thermal mechanical and electrical engineering.
99 48 37
Tabet Manufacturing Co. Inc.
75 63 63
Technology Advancement Group Inc.
85 29 23
Trade Team LLC
70 250 240 Skilled and semi-skilled labor on a temp to perm and permanent basis to marine and industrial facilities 65 110 85 Cyber-security focused services firm providing cyber-security program support, risk management, and other security related support services. 85 350 350 Engineering and technical services for navigation and communication systems
Veris Group LLC
W R Systems Ltd
Signifies woman owned or disabled veteran owned company
Ø Individual representative case studies are in the Appendix
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Part 5 Results
Ø Financial report/statement
GENEDGE Cost Share 57,331.00 $ 32,825.00 $
Remaining Budget 3,511.00 $ (155.00) $ 950.00 $ 154,084.00 $ 158,390.00 $
Budget Line Item
102,331.00 $ 32,670.00 $ 200,000.00 $ 1,711,000.00 $ 2,046,001.00 $
98,820.00 $ 32,825.00 $ 199,050.00 $ 1,556,916.00 $ 1,887,611.00 $
199,050.00 $ 1,393,500.00 $ 1,634,039.00 $
163,416.00 $ 253,572.00 $
Total Direct Costs
Note: Remaining budget of $158,390 turned back to VA program manager for other uses during execution year as requested.
Ø Leadership exchange feedback
In May, a Leadership exchange was held to bring together company principals to share stories and establish a learning community. The executives also met with Secretary of Commerce and Trade Maurice Jones to discuss how this effort fits with Governor McAuliffe’s efforts to build a “New Virginia Economy”. This initiative is focused on a strategic diversification from the historical heavy reliance on DoD and other forms of federal spending. Lessons learned were rolled into the year 2 effort.
Results from a survey on the effectiveness of the program:
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Ø Performance vs Metrics
No. of companies attending workshop
90 45 20
62 38 22
No. of companies assessed No. of companies assisted
$32MM $184 MM
Investment Cost savings
N/A $5.69 MM N/A $1.1 MM
13 of 22 companies reported in a confidential manner their projected impact as of 1/19/16: § $5.69 million in investment § 556 jobs § $184 million in sales § $1.1 million in cost savings Given that growth is a medium to long term outcome, GENEDGE expects to realize about 1.5 times the growth, investment, jobs and cost savings results with full client reporting.
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Ø Case studies
Visit GENEDGE’s YouTube Channel to view the following select DMEP Client Testimonials:
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“GENEDGE’s program and its team members have had a large impact on the growth of Axis Global Enterprises, Inc. since our first meeting to discuss strategic planning. Since that time Axis has growth by over 200% and was listed in 2015 as one of the top 20 fastest growing companies in Hampton Roads. We have hired more than 10 employees since working with GENEDGE and in 2016 with the current continued support we have the potential to double in size once again. We are grateful for this program and look forward to its continued success to assist Virginia businesses to Grow. - Ross D. Vierra CEO/President Axis Global Enterprises, Inc.
Company Situation Prior to GENEDGE Engagement: • Axis Global Enterprises, Inc. purchased an existing security business in 2014 to balance its existing construction services business. They believe they can expand the security business in both the DoD and non-DoD space.
The Strategic Objective (Phase 1 services) • Develop the government and commercial security opportunities • Develop internal systems to support future repeatable growth
The Strategic Opportunity (Phase 1 services) • Need to determine a value proposition that differentiates Axis Global Enterprises from the competition • Position the security business for success and future replication. This will include development of a sales process and Salesforce to drive the business. The GENEDGE Service Solution (Phase 2 delivery) • Strategic Alignment: Helped Axis’ leadership and key employees clarify their competitive position in the market • ISO Management Systems: On-site process development experts assisted in evaluating how to fulfill orders more quickly • Assessing and Developing Recommendations for Growth: Development of a sustainable sales process and implementation of Salesforce for the security business Results • Strategic alignment provided the groundwork for the creation of a value proposition within the security business. Axis needed to clarify its value proposition to the marketplace. This process helped them determine how the company would provide unique benefits to drive growth in the market. • Their goal is to double security sales in the next year. Two approaches were used. First, implementing a sales process and sales force would provide the expertise needed to build a viable customer base. Second, standardizing the process through the ISO management system would create a business environment that could be replicated for either future expansion in other adjacent markets or possibly franchise opportunities.
Company Situation Prior to GENEDGE Engagement: • BondCote is an 80-employee company located in Pulaski County Virginia that produces coated fabrics used in a wide range of defense and commercial applications. BondCote Corporation offers state of the art, computerized coating technology in a wide range of coated, laminated, and composite fabrics. In 2015 BondCote merged with The Heytex Group based in Germany. Heytex develops, produces and sells technical textiles in applications including commercial and industrial tents, truck side curtains as well as dock shelters, and flexible doors. The Strategic Objective (Phase 1 services) • Identify and prioritize non-DoD commercial opportunities • Identify highest-value service offerings and develop corresponding value proposition(s) to meet emergent commercial opportunities in growing industries • Identify partnering companies to manufacture end-user products The Strategic Opportunity (Phase 1 services) • BondCote’s strongest capabilities appeared to be a match in growth markets such as water recreation, athletic facilities, construction and blast sites, and load-lifting • Internal processes that support rapid prototyping and engineering services were not defined sufficiently, nor mature enough, to support growth in those new markets • Leverage parent firm Heytex’s intellectual property and solutions into new North American markets “As a result of GENEDGE / MTC assistance, we began selling new fabrics into water recreation markets in fall of 2015 generating new sales and creating/retaining additional jobs. Engineers were removed from operational tasks and re- focused on product development. Furthermore Lean Product Development is now shortening product development cycle times and reductions are expected in time to market, technical, and market risks.” - Sherry Fisher, Government Program Manager
The GENEDGE Service Solution (Phase 2 delivery) • Value Stream Mapping of the product development process • Training on Lean Product Development methodologies • Energy, Efficiency and Environmental impact analysis
Results • Began selling new fabrics into water recreation markets in fall of 2015 generating new sales and jobs • Engineers removed from operational tasks and re-focused on product development • Lean Product Development is shortening product development cycle times • Reductions in market, technical and market risks
“The GENEDGE consultants and services provided us with
needed support in the form of strategic
marketing program development and
Quality Program initiation to help us e x pand from our base in
the Federal/DoD market
position for additional commercial market
This assistance would have
to us due to the downturn without the assistance of
Dick Blom, President
Company Situation Prior to GENEDGE Engagement: • CorTechs is an enterprise software development and services company mainly focused on leading application lifecycle development projects, application software development, and automated testing software services for large and complex organizations. Historically, the company has had about 80% of its business from the federal government, wherein 30% has been with the Department of Defense. The Strategic Objective (Phase 1 services) • Identify and prioritize non-DoD commercial opportunities • Identify highest-value service offerings and develop corresponding value proposition(s) to meet emergent commercial opportunities in growing industries • Develop a long-term (3 to 5 year) business strategy • Focus the firm on its key capabilities and become a specialist firm in a growth area The Strategic Opportunity (Phase 1 services) • Leverage commercial partners and strategic alliances into new healthcare-oriented commercial markets • Advance and implement the art and science of delivering high-quality software • Focus on key capabilities when seeking to generate new business: o Automated software testing services
o System requirements definition o Re-Architecture design/implement o SaaS testing o Legacy Forward ™ application transformation to Cloud Computing o Application integration o CorTEST™ automated software testing tools
The GENEDGE Service Solution (Phase 2 delivery) • Developed a new corporate website • Prepared for ISO 9001:2015 certification
Results • Business development efforts focused on leveraging partner firms into healthcare IT software markets • Also leverage partners into the larger healthcare industry to insurance firms, suppliers, pharmaceutical manufacturers, disease management companies, and off-shore development firms • Focused key capability area around supporting legacy systems and migrating old applications to Cloud Computing environments • Improved their positioning with HP and Amazon web services as a partner to offer cloud solutions to clients
Company Situation Prior to GENEDGE Engagement: • DLS is a small, woman-owned business with a long history delivering engineering services to the U.S. government located in Virginia Beach, VA with approximately 21 employees. DLS’s track record of success is based on a solidly run company ethic and employee expertise in serving a few dedicated customers in the challenging DoD market. The firm is primarily responsible for reliability and configuration engineering and maintenance of U.S. Coast Guard aircraft. This service guarantees the viability of lifesaving craft, overall reduces cost of ownership, and ensures optimal maintenance management support for these craft to ensure maximum uptime while minimizing downtime…and ultimately saving lives. The Strategic Objective (Phase 1 services) • To understand – in great detail – commercial market dynamics related to lifecycle and critical asset data management, and create service offerings for those markets The Strategic Opportunity (Phase 1 services) • Articulate a clear commercial vision and value proposition based on existing strengths and capabilities in data analysis, engineering services and Coast Guard service history • Identify commercial growth areas for these competencies; and explore convergences/departures in asset data management markets, product lifecycle management, enterprise asset management and the “Internet of Things” / “big data” • Begin development of a new brand reflecting the value proposition as a first step toward cultural change • End of market – manufacturing and transportation/distribution The GENEDGE Service Solution (Phase 2 delivery) • Strategy Facilitation & Ideation: GENEDGE facilitated DLS’s formulation of a new vision -- and draft business models – revolving around critical asset and lifecycle data management, which are areas of adjacency to current skills and capabilities. • Technology Driven Market Intelligence (TDMI): A formal study reached out to professional and industry sources to explore commercial analogs to current Coast Guard service delivery areas. The study helped leadership delineate PLM, EAM and assess their respective maturities, as well as add perspective of how each is viewed commercially given a changing landscape of “big data” and the “Internet of Things.” • Marketing & Branding support: GENEDGE brought in a third party brand facilitation expert to transition the firm’s perspective of itself from DoD-based entity to commercially viable player in the data management space. After a “brand summit,” leadership was provided with additional facilitation, focusing on target markets and opportunities, and a basic plan for transitioning the brand was submitted to leadership. Results • Although DLS represents a very early stage commercial company, leadership has decided to invest time and money testing its new value propositions and newly minted offerings on potential customers. Currently a search for a prototype initial user is underway in a dedicated business development effort. Leadership is also engaged in activating its current network of constituents in the Hampton Roads area. “Our business has always focused on government customers – at least until we began working with GENEDGE. We have developed a multiyear strategy using GENEDGE’s guidance to create new services and enter commercial markets. GENEDGE has helped guide the development and rollout of our strategy, applying its knowledge and network to our benefit. Although we’re a very early stage commercial company, we decided to invest time and money testing our new value propositions and newly minted offerings on potential customers. Currently there is a search underway to identify a pilot project where we can test our approach and prototype.” - Donna Scassera, President/CEO
Company Situation Prior to GENEDGE Engagement: • Directed Vapor Technologies is a manufacturing R&D firm specializing in advanced coating technology designed to satisfy increasing demand for niche applications and emergent market needs. They are located in Charlottesville, VA with approximately 22 employees. The company’s technology addresses a number of problems in thermal barrier protection, conductivity, and energy applications. The firm’s vacuum deposition process ensures complete coverage and adhesion of coatings on difficult substrates and applications, especially those requiring “non-line-of-sight” and denser depositions -- combined with higher throughput rates . The Strategic Objective (Phase 1 services) • Align technology value proposition with commercial market opportunities • Acquire key promotional and operational resources to support non-DoD rapid prototyping and launch The Strategic Opportunity (Phase 1 services) • The current brand and supporting promotional/sales vehicles were not aligned with commercial markets • ISO-9001 certification is required in many non-DoD applications and provides a bridge to higher quality certifications in industries such as aerospace • Subject matter expertise in fiber processing and material handling is required to accelerate development of a prototype material handling process – and subsequent trial runs – for emerging commercial customers using a conductive coating application The GENEDGE Service Solution (Phase 2 delivery) • Brand Re-Alignment & Word Press-enabled Website Development: An industry branding expert guided DVTI through a benefits “discovery” process that isolated key value-adding messages for commercial markets; a new website was developed to provide complete business development flexibility long after the DMEP program. • Prototyping Support: DMEP and GENEDGE helped identify and resource niche subject matter expertise in fiber processing machine and process design, resulting in a successful trial of fiber feeding capability for a waiting commercial customer as well as maturing overall capability for new market opportunities. • ISO-9001:2008 Certification: DMEP supported a GENEDGE quality practice project manager in helping DVTI achieve certification (achieved in September 2015). Results • Directed Vapor Technologies is on its way to finalizing the design of the fiber handling prototype process. After trial runs and testing based on customer requirements, DVTI expects to deliver 50,000 linear feet of conductive coated material to a commercial customer in Dec. Jan. 2016 – Mar. 2016. DVTI has also engaged with several other commercial entities in the areas of fiber optic coating, additional polymer fiber coatings, and carbon fiber coatings for conductive composite manufacturing and conductive fibers for e-textile applications. “ GENEDGE has been a reliable source of consulting and technical assistance for our business. The focus of the assistance was to update the marketing message and website for commercial markets, implement ISO 900I:2008, and assist with the design of a prototype manufacturing line for commercial product manufacture. So far we anticipate a multi-million dollar sales impact, including new markets, new customers and new products. Significant investments will be made in plant or equipment, new products and new processes. Most striking is the additional number of jobs, which are expected to be created or retained over the next 3-5 years.” - James Maurer, Vice President
Company Situation Prior to GENEDGE Engagement: • FCI is a woman-owned ISO 9001:2008 certified small business providing quality systems engineering, cybersecurity and IT services, and innovative financial and management solutions. The company is focused on developing a caring, collaborative company that encourages teamwork and supports an entrepreneurial spirit while supporting its client’s mission. The Strategic Objective (Phase 1 services) • Identify and prioritize non-DoD commercial opportunities • Identify highest-value service offerings and develop corresponding value proposition(s) to meet emergent commercial opportunities in growing industries • Focus FCI’s service offerings based on the unique capabilities of its staff, and to meet evolving new technology-based needs of commercial businesses The Strategic Opportunity (Phase 1 services) • Create a niche in cyber security • Expand systems engineering skills base to include enterprise architecture and cloud migration services • Expand into integrated healthcare delivery IT markets • Execute on third party vendor partnerships • Leverage a range of multi-channel, multi-band satellite communications technologies The GENEDGE Service Solution (Phase 2 delivery) • Facilitation in the development of an ISO 9001:2008 Quality Management System • FCI developed a completely new corporate web site to effectively present their value proposition and key differentiators Results • FCI documented and enhanced its internal processes and achieved ISO 9001:2008 certification • Concentrated and focused new business development efforts in key markets: • Established relationship with emerging business that will give them entrance into the Veterans Administration (non- DoD) • Opened up dialog with commercial satellite provider that gives them entrée to commercial business • Won a new contract in the medical IT space with the Defense Health Agency that will provide them a platform for expanding into non-DoD Health Care IT market “GENEDGE provided invaluable assistance in positioning our small business to survive and thrive despite sequestration and the subsequent downturn in the DoD support market. Under the guidance of GENEDGE, FCI put together a long-term strategic plan to diversity its business. We are currently working this plan and have already opened up new markets for our service outside our traditional focus. The help we received through the DMEP program has been a boost to our business that we might not have otherwise realized if we had to rely on our own resources.” - Maureen Wilcox, President
Company Situation Prior to GENEDGE Engagement: • GStek is a telecommunication service provider very well positioned with DoD customers. The firm is highly competitive on government RFP’s for telecommunication services, with very strong leadership and program management abilities. This small, service-disabled, veteran owned business has a nationwide network of full time employees servicing contracts that include phone system maintenance, new install, upgrade, I.T. support and information assurance. They are located in Chesapeake, VA with approximately 63 employees.The Strategic Objective (Phase 1 services) • To conduct professional market research on the commercial telecommunication space, formulate a value proposition, and understand the next-step business model investments aligned toward opportunities in the commercial space The Strategic Opportunity (Phase 1 services) • Understanding where GStek’s capabilities align with a commercial, telecommunications service value proposition is an important first step • Market research is a priority need in identifying opportunities and threats in the commercial space • Promotional support for the new value proposition is necessary to begin transitioning a refreshed look and feel for commercial markets The GENEDGE Service Solution (Phase 2 delivery) • Strategy Facilitation & Ideation: GENEDGE facilitated GStek’s leadership in the development of a new “vision” for the commercial market space. Despite lack of in-house marketing support, the leadership team was committed to digging deep on customer needs and opportunities to craft a commercial business model vision aligned with their initial research findings. • Technology Driven Market Intelligence (TDMI): A full market research exploration was launched with emphasis on telecommunications opportunities that align most closely with GStek’s capabilities. Using Lean Six Sigma techniques, GENEDGE facilitated an in-depth strategic review of the research results and helped the company discover and prioritize commercialization planning goals based on the research. A commercialization roadmap was then developed for immediate action. The top opportunity was aligned with a major investment push by Google and other commercial network extenders/builders to install fiber throughout the U.S. • Marketing & Branding support: GENEDGE helped with a website re-design to refresh the look of GStek’s most public promotional asset, which had not been updated in about a decade. The new website was constructed on a popular, very easy to update content management system, and employees were trained on how to maintain the content themselves without the need for in-house marketing support as market needs change. Results • As a result of the TDMI study and commercialization road-mapping activity, GStek is engaged in commercialization talks with a Google Fiber prime contractor for potential telecommunication service work in NC and GA in 2016. This work supports an important, major social and technology shift that is led by Google to install Fiber-To-The-Home (“FTTH”) throughout the U.S. • Total sales impact estimated at $2.8 million from entering new markets • Total investment impacts – estimated at $800,000 (includes investments in plant or equipment at $700,000; and in workforce practices or employee skills at $100,000) • Total jobs impacted – addition of 20 new jobs
Company Situation Prior to GENEDGE Engagement: • For over 60 years, Hampton Rubber Company (HRC) has provided high quality hose assemblies, gaskets, and associated engineering services to the marine and commercial markets in Hampton, VA with approximately 43 employees. Over the last couple of years, they have seen a reduction in sales to reduction in DoD impact on purchases and an expansion of competition into the market. “Intangible benefits include a better working relationship with our suppliers and a willingness for those suppliers to invest in the HRC business. The Value Chain Optimization has allowed HRC to be a more responsive supplier to our customer base. Also, the culture has begun to shift from one of steady state to one of positive change. And we finally have a brand strategy developed to position HRC for future growth as a quality, forward thinking supplier. It has given us focus on a message that we have the technical talent and expertise to address their customer’s needs.” - Pete Haberbosch, VP/General Manager “We were not addressing our competitive threats here at Hampton Rubber Company as was pointed out by GENEDGE. Realization has driven us to ask and then implement changes within the organization. These changes have had tangible and intangible benefits. Tangible changes include developing plans to meet or exceed competitive services in the market place.”
The Strategic Objective (Phase 1 services) • Identify and prioritize non-DoD commercial opportunities • Reinvigorate the Hampton Rubber brand and establish them again as the “go to” supplier The Strategic Opportunity (Phase 1 services) • Need to determine a value proposition that differentiates Hampton Rubber from the competition • Re-establish Hampton Rubber as the local technology and problem solver leaders
The GENEDGE Service Solution (Phase 2 delivery) • Strategic Alignment: Helped HRC’s leadership and key employees clarify their competitive position in the market and what they had done over the last couple years to address new entrants into the market • Value Chain Optimization: On-site process development experts assisted in evaluating how to fulfill orders more quickly. • Brand Summit: Brand recognition is important within their market as it drives mind share. How to drive brand recognition within the organization was not well understood. A summit was held to bring the leadership into alignment, build a discussion on brand improvement, and to develop a plan. Results • Realization that Hampton Rubber was not addressing the competitive threats has driven them to ask and then implement changes within the organization. These changes have had tangible and intangible benefits. Tangible changes include developing plans to meet or exceed competitive services in the market place. Intangible benefits include a better working relationship with their suppliers and a willingness for their suppliers to invest in the HRC business. This includes modernizing the look of HRC’s storefront and financially subsidizing additional technical capability. Finally, it has helped HRC identify market gaps that are not currently being addressed by the competition. • The value chain optimization has allowed HRC to be a more responsive supplier to the customer base. It also aligned the delivery of products between the two facilities. Also, the culture has begun to shift from one of steady state to one of positive change. • A brand strategy has been developed to position HRC for future growth as a quality, forward thinking supplier. It has given them focus on a message that they have the technical talent and expertise to address their customer’s needs.
Company Situation Prior to GENEDGE Engagement: • Mission Mobility supplies mission critical communications in demanding environments. The primary customer is the U.S. Military. However, they have developed a couple of products targeted at first responders, which have not achieved new market success. They need assistance in identifying potential non-DoD customers, validating these customers’ most common problems and developing offerings to address these new markets. The Strategic Objective (Phase 1 services) • Identify and prioritize non-DoD commercial opportunities to achieve a more balanced product offering with sales to both DoD and non-DoD markets. The Strategic Opportunity (Phase 1 services) • Need to determine a value proposition that differentiates Mission Mobility from the competition • Establish a viable offering in non-DoD industries that require mission critical communication in demanding environments The GENEDGE Service Solution (Phase 2 delivery) • Strategic Alignment: Helped Mission Mobility’s leadership and key employees clarify their competitive position and potential opportunities in selected markets and also where they were positioned in the target markets. • Market Research: Rescue and Disaster Management has many of the characteristics of the environment that their products are currently being used: remote, rugged, limited to no communications. Mission Mobility did not have a clear understanding of the needs and potential competitors. • Technology Driven Market Intelligence (TDMI): Three technical concepts were outlined. • Website Development: The previous website was focused on the DoD market space. A more balanced message to the non- DoD market was needed to attract future business. Results • Mission Mobility leadership gained a deeper understanding of the direction for the company. It allowed them to take at their current offering and identify potential opportunities to drive future growth. After additional study of the technical concepts identified by the TDMI, deeper market research was done on two of the three concepts. Through the research work of RTI, it was determined that the first concept focused on the Search and Rescue communication market was primarily serviced by Motorola (with 80% market share). Mission Mobility had the ability to develop similar products, but did not see a large differentiation to dislodge the entrenched competition. Research on the second concept clarified the market, identified two previously unknown competitive offerings, yet also uncovered new areas for opportunity. Recommendation was for the second concept to move forward with additional development as a viable non-DoD offering. • Mission Mobility expects to launch new products and services in 1Q’2016 with resulting new sales in 2Q’2016. Due to the DMEP program they also reported new investment and realized substantial cost savings. “GENEDGE consultants have been instrumental in advising, educating and guiding Mission Mobility as we reshaped our business to target new opportunities within the U.S. and abroad. The depth of support offered by GENEDGE and ODU along with their members' level of expertise provided us with ideas, tools and methods to create and accelerate our new strategic plan. Our participation in DMEP identified areas for growth, and nearly as important, areas to avoid as we expand our business. Through the DMEP program, Mission Mobility developed a new strategic action plan with several key milestones already completed including follow on development of three new products and the creation and launch of a new website. Our team relies on the sound guidance of the GENEDGE advisors and refers often to our GENEDGE-facilitated team planning events or asks if ongoing operational efforts would pass GENEDGE scrutiny. Improved planning, clearer market assessment and streamlined product development are the near term results and we foresee improved revenue and profits in the coming year.” - Mike Smack, President & CEO
Company Situation Prior to GENEDGE Engagement: • Morphix Technologies offers a line of colorimetric chemical detection products that are easy to use, lightweight and inexpensive. Invaluable in a variety of settings—military, law enforcement, emergency response and industrial—these sensors save lives and allow for quick response in dangerous situations. They are located in Virginia Beach, VA with approximately 30 employees. The DoD portion of their business has significantly declined over the last 3 years. The Strategic Objective (Phase 1 services) • Identify, prioritize and research non-DoD commercial opportunities • Identify future technology partners which could provide cutting edge technology at an acceptable price point for the colorimetric market The Strategic Opportunity (Phase 1 services) • Internal processes that support surge capacity were not defined sufficiently, nor mature enough, to support growth in those new markets. • Potential new market opportunities were not adequately prioritized, and knowledge of these potential new markets was not complete. • Morphix’s strongest capabilities in colorimetric detection were limited by current technology. They needed to find a supplier who could provide a key technology platform for future product expansion. The GENEDGE Service Solution (Phase 2 delivery) • Market Research: Morphix was considering developing a module for the testing of environmental contamination in soil. However they were unsure of the overall opportunity and needs within the market. • Supplier Scouting Research: Helped Morphix identify three target companies, which could provide a key technology necessary for further development of a new industry-changing product. • Strategic Alignment: Helped Morphix’s leadership and key employees determine why they were relevant in certain market spaces and gaps which could lead to new product geared toward high growth industries • Value Chain Optimization: On-site process development experts assisted Morphix in developing a Rapid Delivery Cell to meet surge capacity on their Trace-X product line targeted primarily at first responders and law enforcement customers. Results • The market research provided Morphix with clarity and prioritization on the types of environmental contaminants for detection and the estimated product price point for testing in non-DoD markets. Also, information on the remediation and clean-up market was provided allowing them to focus their development efforts. • Supplier Scouting provided them in the end with a potential partner company for the development of a new product offering. • Value chain optimization on the Trace-X product has allowed them to have the surge capacity necessary to meet customer demand. It has also spawned an additional project to reduce the size of the current product offering. The size reduction will provide additional capacity for the end user in the application of the product. "GENEDGE and its partner the Old Dominion University Business Gateway have provided highly valuable market research and technical assistance to Morphix to help us expand our business outside of the defense marketplace. As a result of the GENEDGE / ODUBG efforts, Morphix has been able to grow production capacity of a new product line by over 300%, and to pursue the development of additional new products with anticipated future sales in the millions of dollars. Through the DMEP projects, Morphix is able to accelerate our product diversification plans. As a result, we are now much better positioned to drive growth over the coming years." - Bart Heenan, CEOPage 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32
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