Raytheon 2010 Annual Report Download - page 41

Mission Support—We are focused on enabling customer success through total life-cycle support that predicts customer
needs, senses potential problems and proactively responds with the most appropriate solutions. Our Mission Support
capabilities include technical services, system engineering, logistics, training, operations and maintenance. Our training
business continues to expand and we now train in over 80 countries and in 40 different languages.
Homeland Security—We also intend to continue to grow our presence in the domestic and international homeland
security markets, focusing on transportation security, immigration control/identity management, critical infrastructure
protection, maritime security, energy security, intelligence program support, law enforcement solutions and emergency
preparedness and response.
Cybersecurity—We continue to enhance our capabilities in the cybersecurity market. In 2010, we acquired three
companies in this area: Compucat Research Pty, Trusted Computer Solutions Inc. and Technology Associates Inc. We are
focused on providing cyber capabilities to the Intelligence, DoD and DHS markets as well as embedding cybersecurity in
our products and in our own IT infrastructure.
International Growth
Because of the breadth of our offerings, our systems integration capability, the value of our solutions and our strong
legacy in the international marketplace, we believe that we are well-positioned to continue to grow our international
business. As discussed under “International Considerations,” we believe demand is growing for solutions in air and
missile defense, homeland security, air traffic management, precision engagement, naval systems integration and
intelligence, surveillance and reconnaissance. In addition, as coalition forces increasingly integrate military operations
worldwide, we believe that our capabilities in network-enabled operations will continue to be a key discriminator in these
markets.
In 2010, our international sales, including foreign military sales through the U.S. Government, were $5.8 billion
compared to $5.3 billion in 2009. In 2010, our international bookings were $4.4 billion compared to $7.6 billion in 2009.
Focus on the Customer and Execution
Our customer focus continues to be a critical part of our 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. We maintain a “process architecture” that spans our broad programs and pursuits. It consists of
processes such as Integrated Product Development System (IPDS) which assures consistency of evaluation and execution
at each step in a program’s life-cycle. It also includes our Achieving Process Excellence (APEX), which is our SAP
business system software for accounting, finance and program management; Process Re-Invention Integrating Systems
for Manufacturing (PRISM), which is our SAP software for manufacturing operations; and Raytheon Enterprise Supplier
Assessment (RESA) tool for Supply Chain Management. These processes and systems are linked to an array of front-end
and back-end metrics. With this structure, we are able to track results and be alerted to potential issues through
numerous oversight mechanisms, including operating reviews and annual operating plan reviews.
We are also continuing to build strong customer relationships by listening to customers, working with them as partners
and including them on Raytheon Six SigmaTM teams to jointly improve their programs and processes. We are increasingly
focused on responding to our customers’ changing requirements with rapid and effective solutions to real problems. In
recognition of our customers’ constraints and priorities, we also continue to drive various cost reductions across the
Company through Raytheon Six SigmaTM, lean processes, reducing cycle times and numerous other initiatives.
Other Business Considerations
We currently are involved in over 15,000 contracts, with no single contract accounting for more than 5% of our total net
sales in 2010. We believe that our diverse portfolio of programs and capabilities is well suited to a changing defense
environment. However, we face numerous challenges and risks, as discussed below and under Item 1A. “Risk Factors” of
this Form 10-K.
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