Saab 2010 Annual Report Download - page 25

One of Saab’s biggest strategic challenges is to ensure
that we continue to develop products that customers
want. By being clear and transparent about our research
and development (R&D) investments and how the proc-
ess works, we can optimise our future product portfolio.
Saab’s product development has traditionally been driven through
various business units and individual projects, largely based on
orders from the Swedish defence. During , an updated project
management process for the entire lifecycle of each product was
introduced, where we have claried responsibility for product devel-
opment between and across business areas. e aim is to ensure that
potential products are technologically feasible and meet the needs of
the international market. Before a product development decision is
made, a detailed prot analysis is conducted taking product’s entire
lifecycle into consideration.
Changing customer behaviour
Our customers around the world are changing the way they act. In
Sweden, for example, the state (through the Armed Forces and
FMV) is increasingly focused on various types of international alli-
ances. An invasion defence has largely been replaced by an opera-
tional defence, i.e., smaller but more specialised troops that can be
called up for missions around the world on short notice – oen in
co-operation with other nations. As a result, the Armed Forces and
FMV have altered their procurement processes and made it more
important to quickly obtain new equipment, which makes buying
nished products a priority.
For Saab, this change means that we will have to fund a larger
share of our product development going forward. Naturally, there
are still areas where product development largely remains customer-
nanced, but it is becoming increasingly important that we can
nance our own product innovation. is requires a clear focus
on our part.
Investments in cutting-edge technology
A clearer strategic focus on product development, as well as the
highest possible eciency in this regard, is critical for us. As cus-
tomer habits change in terms of purchasing and product applica-
tions, we have to develop solutions that meet the needs of many cus-
tomers. is means that we have to be better at understanding the
needs of not only the Swedish defence forces but also our most im-
portant international customers.
Project management work also involves reducing the number of
product areas and prioritising those where we invest in R&D. e
emphasis is on innovating and further developing products only in
areas where we are currently a leader with cutting-edge technology
and are internationally competitive, or where have excellent pros-
pects. In this way, R&D investment will improve our positions in
core areas. By also modularising whenever possible, we can reuse
product solutions in our oerings.
Moreover, we are focused on raising eciencies in development
processes and utilising model-based development and various frame-
works to eectively manage complex processes, such as the develop-
ment of soware and open source code. e trend toward open sys-
tems is especially evident, and the ability to integrate systems, our
own and others’, is one of Saab’s biggest competitive advantages.
ese measures help us to cut the cost to develop systems and
customised solutions, while at the same time reducing our risk expo-
sure. In addition, lead times are reduced, allowing us to better adapt
to customers’ desire to quickly access materiel.
Leader in many areas
Advanced technology and world-class engineering have been – and
are – the foundation for Saab’s success.
In terms of the complex systems we oer the market, the key technol-
ogies in the Gripen system and ERIEYE radar system – and their further
development – are the two main examples. Also, we continuously update
our time-critical and tactical command and control systems.
At the same time, we invest in other types of niche products that
we sell individually or as part of less complex systems. Examples of
our leading niche products are the Carl-Gustaf, AT, NLAW, the
RBS  ground based air defence system, the ARTHUR and
GIRAFFE radar systems, and our unmanned underwater vehicles.
ey also include combat training, where we have a leading position.
Among our niche innovations, is the development of the
unmanned helicopter Skeldar a good example. In electronic warfare,
Land Electronic Defence Systems (LEDS), which provide active pro-
tection for combat vehicles, are an important investment area. For
STRONGER PORTFOLIO
THROUGH FOCUSED
PRODUCT DEVELOPMENT
22 SAAB ANNUAL REPORT 2010
SAAB’S RESEARCH AND DEVELOPMENT