Saab 2015 Annual Report Download - page 22

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STRATEGY
PERFORMANCE
Saab’s long-term protability goal is an average
operating margin of 10 per cent over a business
cycle. With a record-high order backlog, the focus
is on ecient project execution, so that sales growth
also results in increased protability.
e company’s protability has been aected
for several years by major investments in research
and development to renew the product portfolio.
While Saab will remain a research intensive com-
pany, investments are returning to a normal level.
For more information on Saab’s research and
development expenditure, see the section Strategy:
Portfolio, page 20.
STRATEGIC PRIORITIES
Aer a period where its focus was on product
renewal, Saab is now entering a stage where the
emphasis is on improving procedures, processes
and infrastructure. Growth provides the exibility
to improve eciencies in administration and
Group functions.
In a matrix organisation like Saab, with business
areas, market areas and Group-wide functions, it is
essential to streamline governance and processes
to avoid ineciencies.
Project execution
Optimisation is important in a business where
customer projects are complex and oen extend
over long periods of time. Saab’s project managers
and employees are constantly looking for new
ways to reduce costs without aecting quality
or productivity.
Global research and development
To compete globally, Saab is trying to strengthen its
presence in key markets. A larger share of research
and development will be done outside Sweden. is
facilitates better co-operation with local companies
and allows Saab to bid on projects that require local
research and development. In addition, Saab can be
more innovative by capitalising on the ideas and
innovations generated by its employees globally.
Effective functional processes
Saab has grown both organically and through acqui-
sitions, as a result of which many of the functional
processes within HR, communications, nance and
IT are not being applied equally throughout the
Group. An eort to streamline the processes has
begun with the goal of creating internal synergies
and improving performance management.
Consolidation of operating locations
Saab is active in more than 30 countries and in
Sweden has operations in more than 50 locations,
oen in dierent facilities in the same location.
ere is room to consolidate operations in fewer
locations in order to create stronger centres of
excellence and reduce costs.
Saab’s most important competitive advantage is its ability to develop and
deliver products that stand apart just as much for their cost efficiency as
for their exceptional functionality and innovative technology.
Saab is reducing the development time
for the new generation Gripen with the
help of model-based methodology.
18 – SAAB ANNUAL REPORT 2015