Raytheon 2005 Annual Report Download - page 56

Precision Engagement. The Company provides mission solutions across the entire precision engagement chain that are
designed to address customers’ increasing need to operate jointly (across services and between allied forces), work in a
new net-centric paradigm, minimize collateral damage, and strike time-sensitive targets. The Company’s precision
engagement systems include: F-15 and F/A-18 Active Electronically Scanned Array radars, Advanced Medium Range
Air-to-Air Missile, Miniature Air Launched Decoy, Situation Awareness Data Link, UK Joint Effects Tactical Targeting
System, Non-Line-of-Sight Launch System and Precision Attack Missile, Joint Standoff Weapon, Paveway, Tactical
Tomahawk, F/A-18 Radar Warning Receiver, and High Power Microwave.
Intelligence, Surveillance and Reconnaissance. Utilizing its sensing, processing, and dissemination technologies, the
Company provides integrated systems solutions for observing, locating, processing, deciding, and disseminating
actionable information, thereby enabling network-centric operations for decision makers. These abilities are crucial for
war fighters to achieve information dominance throughout the entire battlespace. The Company’s key ISR programs
include: Global Hawk sensor suite, Distributed Common Ground System, National Polar-orbiting Operational
Environmental Satellite Systems, Future Combat Systems Ground Sensor Integrator, and numerous classified programs.
Homeland Security. The Company continues to leverage the technologies and solutions it has developed for its traditional
defense markets to provide solutions to homeland security customers. Recent efforts have focused on the exploitation of
the Company’s expertise in the collection and analysis of large amounts of data. The Company has been awarded
programs in border security, most notably US-VISIT, and in related areas.
Mission Systems Integration
Raytheon continues to grow and expand its Mission Systems Integration (MSI) initiative. The Company believes that its
customers are increasingly seeking a Mission Systems Integrator for their programs and the Company is well positioned
to expand its MSI work over the next several years. Examples of the Company’s MSI success in 2005 include:
ⳮAward of the DD(X) Phase IV prime contract;
ⳮSuccesses in intelligence community classified Horizontal Integration opportunities—whose aim is to integrate and
link mission elements, multiple sources of intelligence, and ultimately all elements of the intelligence community; and
ⳮDesign and implementation of an RF identification solution to track land border entries and exits at multiple border
ports for the US-VISIT program.
Customer Focus
Raytheon’s customer focus is a critical part of its strategy—underpinned by a focus on performance, relationships, and
solutions.
Performance means being able to meet customer commitments, and is ensured through strong processes, metrics, and
oversight. Raytheon has a “process architecture” that spans its broad programs and pursuits. It consists of processes such
as Integrated Product Development System (IPDS) which assures consistency of evaluation and execution at each gate in
a program life-cycle. These processes are linked to an array of front-end and back-end metrics. With this structure,
Raytheon is able to track results and be alerted to potential issues through numerous oversight mechanisms, including
operating reviews, annual operating plan reviews, and human resource reviews.
Raytheon is continuing to build strong customer relationships by listening to customers, working with them as partners,
and including them on Raytheon Six Sigma teams to jointly improve their programs and processes. Raytheon is
increasingly focused on the importance of speed and agility in responding to its customers’ changing requirements.
Recent examples of Raytheon teaming with its customers and delivering rapid, effective responses to real problems
include: PSDS2, a surveillance system delivered to the U.S. Army in 6 months; RAID, elevated sensors first deployed to
Afghanistan in 36 days; and MTS, an EO/IR system that became operational for combat use with Hellfire missiles in 4
months.
Other Business Considerations
The Company currently is involved in approximately 8,000 active programs and has 13,000 contracts. No individual
contract exceeded 4% of Company sales in 2005. Management believes that the Company’s diverse portfolio of programs
and capabilities is well suited to a changing defense environment. Raytheon, however, faces numerous challenges and
risks.
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