Raytheon 2014 Annual Report Download - page 41

32
Sensing—Sensing encompasses technologies that acquire precise situational data across air, space, ground and underwater
domains and then generate the information needed for effective battlespace decisions. Our Sensing technologies span the full
electromagnetic spectrum, from traditional radio frequency (RF) and electro-optical (EO) to wideband, hyperspectral and
acoustic sensors. We leverage our sensing technologies to provide a broad range of capabilities and to expand into growth
markets, including multi-function sensors that can perform multiple missions for our customers.
Effects—Effects achieve specific military actions or outcomes, from small-unit force protection to theater/national missile
defense. The missions may be achieved by kinetic means, electronic warfare, directed energy or information operations. Our
Effects capabilities include advanced airframes and missiles, electronic warfare, multiple sensor seekers, targeting, net-enabled
systems, multi-dimensional effects, and directed energy, particularly high-energy lasers.
Command, Control, Communication and Intelligence (C3I)—C3I systems provide integrated real-time support to decision-
makers on and off the battlefield, transforming raw data into actionable intelligence. Our C3I capabilities include situational
awareness, guidance and navigation systems, persistent surveillance, communications, mission planning, battle management
command and control, intelligence and analysis, and integrated ground solutions. They also include similar capabilities such
as command, control, communication, computers and intelligence (C4I). We expect to continue to grow our market presence
in C3I and expand our knowledge management and discovery capabilities.
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, product support, logistics, training, operations and maintenance. Our training
business continues to expand and we now train military, civil and commercial customers in over 80 countries and in 40 different
languages.
Cyber—We continue to both enhance our capabilities in the cyber market and leverage the capabilities of the fourteen cyber
acquisitions made since 2007. We provide cyber capabilities to the Intelligence Community, the DoD, other defense and civil
global customers, and commercial markets. In addition, we embed information assurance capabilities in our products and our
IT infrastructure. In 2014, we acquired Blackbird Technologies, a leading provider of persistent surveillance, secure tactical
communications and cybersecurity solutions to the Intelligence Community and special operations market. We believe cyber
is a strong growth market, offering Raytheon the potential to leverage our extensive capabilities, to enhance existing customer
relationships, to develop new customer relationships, and to grow and scale our cyber business.
Key Mission Areas—We emphasize our capabilities in key mission areas of enduring importance to our customers. These key
mission areas include missile defense, ISR and electronic warfare. In a budget-constrained domestic environment, customers
are increasingly seeking cost-effective mission solutions. These solutions can take the form of new electronics or electronic
upgrades, but draw on our market focus area capabilities, deep domain expertise and system architecture skills. We continue
to explore opportunities to make these affordable solutions more readily available to our international customers, including
through enhanced design for export and releasability.
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 continues to grow for solutions in air and missile defense,
precision engagement, naval systems integration, ISR, and cybersecurity. As a result we continue to enhance our focus on
global growth through increased investment in our offered solutions in existing and new international markets. Such investment
includes the allocation of additional time and resources for in-country development in connection with existing, and in pursuit
of new, opportunities. 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. Although we believe
our international business is well positioned to continue to grow, we recognize that we face substantial competition from both
U.S. companies and other competitors in international markets as well as the challenge of changing budget priorities, overall
spending pressures and the timing of contract awards.