Aljeeran, Isa

Antill, Peter

Mccormack, John

English

This paper will present the findings of a detailed piece of research into the availability (or not) of a published Defence Industrial Strategy within the GCC for AVMs, and the obstacles that hinder AVMs in the GCC formulating an appropriate strategy, along with findings on how the provision of a DIS (which includes AVM's) could be fundamental in helping GCC countries realise their strategic objectives of greater self-sufficiency, economic development, and operational effectiveness

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The University of Manchester ResearchA Strategy for Self-SufficiencyLink to publication record in Manchester Research ExplorerCitation for published version (APA):Aljeeran, I., Mccormack, J., & Antill, P. (2018). A Strategy for Self-Sufficiency. Defence Procurement International ,Winter 2018/2019, 61-66.Published in:Defence Procurement InternationalCiting this paperPlease note that where the full-text provided on Manchester Research Explorer is the Author Accepted Manuscriptor Proof version this may differ from the final Published version. If citing, it is advised that you check and use thepublisher's definitive version.General rightsCopyright and moral rights for the publications made accessible in the Research Explorer are retained by theauthors and/or other copyright owners and it is a condition of accessing publications that users recognise andabide by the legal requirements associated with these rights.Takedown policyIf you believe that this document breaches copyright please refer to the University of Manchester’s TakedownProcedures [http://man.ac.uk/04Y6Bo] or contact uml.scholarlycommunications@manchester.ac.uk providingrelevant details, so we can investigate your claim.Download date:05. Dec. 2023See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/331207873A Strategy for Self SufficiencyArticle · January 2019CITATIONS0READS1193 authors:Isa AljeeranCranfield University2 PUBLICATIONS   1 CITATION   SEE PROFILEJohn Joseph MccormackThe University of Manchester6 PUBLICATIONS   210 CITATIONS   SEE PROFILEPeter AntillN/A79 PUBLICATIONS   99 CITATIONS   SEE PROFILEAll content following this page was uploaded by Peter Antill on 19 February 2019.The user has requested enhancement of the downloaded file.Defence Procurement International - Winter 2018/201961LAND SYSTEMS A Strategy For Self-SufficiencyAs more Gulf Co-operation Council countries look to develop a domestic defence industrial base and reduce their dependence on foreign military suppliers, a well-defined defence industrial strategy is needed to ensure forces are supplied with the right kind of capabilities. By Isa Aljeeran, John McCormack & Peter AntillNIMR vehicles have succeeded in the GCC because of the defence authority's close involvement in the product lifecycle (Copyright: NIMR)Armoured vehicle manufacturers (AVMs) of the Gulf Co-operation Council (GCC) operate at a disadvantage due to the absence of certain governmental policies and publications, such as a Defence Industrial Strategy (DIS). In many countries, the DIS is a key part of a comprehensive National Defence Strategy (NDS), where the near-to-medium term military requirements of the government’s defence policy are laid out. The DIS should be considered key to the formulation of each manufacturer’s requirements as they are tendered by the defence procurement agency where the The DIS (or lack thereof) should have AVM’s strategy.Regardless of whether there is an overarching NDS/DIS or not, each vehicle manufacturer’s strategy should focus on supplying the best value for their customers, providing an adequate return on investment to satisfy their shareholders and sustaining the organisation’s position in the industry to be able to serve their current customers, as well as tender for new business. manufacturers. There are several reasons for this, including the individual objectives of their owners, the lack of planning resources in AVMs as they tend to be Defence Procurement International - Winter 2018/201962LAND SYSTEMS Armoured vehicles at IDEX 2017 in Abu Dhabiarmoured military vehicles”.1 (NIMR is now a subsidiary of Emirates Defence Industries Company, which was formed by merging several state-owned defence companies.) NIMR vehicles have succeeded for two main reasons: the involvement of the UAE military authorities in the conceptual design; and the ability of the platform to utilise a variety of different systems The key element was the defence authority’s close involvement in the product lifecycle, which should have been formally laid out in a published DIS. However, the UAE does not have an explicit DIS like other regional countries, and so the relationship between the UAE military authority objectives one would expect to see in a DIS, informally agreed and implemented across the development lifecycle. The Saudi military authority has the same close relationship with its existing local defence manufacturers such as Altadrea and AVF. A DIS should play a small-to-medium size enterprises (SMEs) and the ambiguity of military requirements resulting from the lack of a DIS.        of research into the availability (or not) of a published Defence Industrial Strategy within the GCC for AVMs, and the obstacles that hinder them from formulating an appropriate strategy. The article will also explore how the provision of a DIS could be fundamental in helping GCC countries realise their strategic economic development and operational effectiveness.A COHERENT STRATEGY    The success of the NIMR vehicles in military operations by the Saudis and the UAE in Yemen, illustrates the value of close co-operation between defence authorities and defence manufacturers. “NIMR, which is 60% owned by the Abu Dhabi-based investment fund Tawazun, is largely known for the design, manufacture and support of larger, heavier wheeled, needed to implement the National Defence Strategy. This equipment is then (local, regional or international), which in turn prepare themselves to produce components of the requisite equipment. This kind of transparent need proactively and develop platforms against clearly stated objectives. AVMs in the Gulf from this kind of tool to link strategic goals to operational planning. So, what is the impact of not having a DIS covering the AVMs within the GCC? First of all, one should ask why there is not a published DIS in the GCC? subject over the last two years suggests three main reasons: (1) The historic relationships between high-owners has evolved into close, informal, but traditional working relationships;(2) The military agencies are relatively Defence Procurement International - Winter 2018/201963LAND SYSTEMS new and dealing with massive equipment requirements, which tends to preclude the restructuring of relationships in the longer-term and;(3) The dependency on foreign suppliers has by political factors. Nevertheless, the would justify prioritising its development and use. The UK Ministry of Defence outlines some of the DIS advantages as mentioned in a white paper issued in 2005:2      For the country, the DIS ensures clarity about its future defence requirements and sets out the industrial capabilities needed to ensure it has the military capability to mitigate threats to its national security.     For the defence industrial base (DIB), the DIS should guide it on what to produce in the near future and thus be able to prepare themselves to cover such requirements.     For the customer or the end user (the armed forces), the DIS gives them a way their tactical and operational art.In addition, a DIS is shown to have other fostering growth in the national economy, improving forward contingency planning, encouraging development of a national technology base, improving the selection process of suppliers, enabling more sophisticated types of development and production consortia, and developing the national defence capabilities of emerging (developing) countries. PREPARED FOR CHANGEThe other issue to consider is the character of the vehicle manufacturers’ strategies. AVMs in the GCC are mostly SMEs owned and managed by entrepreneurs who like to take risks. SMEs tend to have fewer planning resources available to them, which often results in uncertain outcomes. In this sector there are three primary approaches to planning strategies: a well-planned strategy with comprehensive and precise details; a partial strategy, one that doesn’t cover all the possible activities and; no strategic planning, or only pro forma planning which is not integrated into operations. Smaller organisations, with fewer resources and a higher risk tolerance, often fall into the second or third category. Therefore, SMEs are more vulnerable disproportionally from strategic guidance and a more transparent system of medium This is where a DIS can help. By clearly focus their resources and better adapt to competition, identify key developmental trends in armoured vehicle technology, and plan against economic and demand uncertainty in the region. To reach their organisational goals, enterprises invest their limited funds trying to develop the right collection of tools, resources, capabilities and core competencies to attain a competitive advantage in their target market, what 3 from nation states and understanding the dynamics of the market, letting the AVMs better focus resources and compete more effectively with larger or more established global competitors.From many years working in this sector, Isa Aljeeran found that AVMs in the GCC tend to be much less aware of or act to align themselves with external environmental factors than their peers in more developed markets. His research  1. The absence of a published national defence strategy that enables, directly or indirectly, existing defence manufacturers to plan their future activities. The NDS required equipment for the coming period, in line with the needs of national security. However, the lack of such information would lead the country’s DIB, including the AVMs, to be reluctant to create their own strategy, leaving the production A US Army Oshkosh M-ATV sold to Saudi Arabia. The kindgom wants to develop more defence equipment, including armoured vehicles, locally.Defence Procurement International - Winter 2018/201965LAND SYSTEMS requirements. The current high demand for armoured vehicles from the GCC encourages the AVMs to focus on short-term operational planning.  2. The current AVM market in the GCC is mainly focused on customised vehicles rather than in-stock platforms. This has pushed the AVMs to adopt a pure make-to-order delivery system, limiting their ability to anticipate the demand and control the corresponding costs. This situation encourages company decision-makers to be more reactive and correspondingly less aware of their options in terms of strategic planning. 3. The facilities offered by the host countries reduce the operational cost, which leads to local AVMs having advantages over their competitors (both regional and international), but limits their ambitions to investigate new markets. The facilities offered by governments, such as economic free zones in the UAE, should potential foreign participants. Ambiguity  4. The AVM market is highly customer business models around managing client relationships. However, actual customer satisfaction is not easy to measure; the products are highly technical and many of the procurement agency’s staff are highly reliant on the relationship with the AVMs, being unclear about the product’s technical capabilities. As a result, satisfaction with the client/supplier relationship may not be a good indicator of product success and may actually inhibit the decision-makers’ ability to objectively evaluate individual products or platforms.  5. The AVMs in the GCC have been targeting only the GCC market, with to enjoy a strong relationship in their host countries, which provides them with a relative advantage over suppliers from different parts of the world. This cosy relationship at home has the knock on effect of limiting their willingness or ability to move into other sectors or other national markets. demand is mitigated by the region’s access which is largely composed of international contract workers. The dynamic structure of the labour force is generally very well aligned with the nature of the AVMs' development and production lifecycles. However, the dependence on foreign skills and labour mean that the improved forecast and plan against market changes. 7. For a number of reasons, AVM managers in this area are less likely to consider mission statements to be a vital component of their business success. This means they are less likely to have an integrated strategy or a procedure to co-ordinate operational planning. The knock on effect is a more reactive business model, focused on short-term future intentions and requirements to stakeholders and facilitate integrated planning across the supply chain.  8. While managers in the GCC AVMs are aware of the need for strategic planning, they are hesitant to talk about their practice models and when questioned about strategy give responses focused on compliance with standards. Again, this illustrates the tendency to emphasise short-term operational planning at the What Aljeeran wanted to know was distinctive and to try to understand what kinds of policy tools might be most vehicle market in the GCC is mainly focused on customised vehicles (Copyright: General Dynamics)Defence Procurement International - Winter 2018/201966LAND SYSTEMS effective in making them more productive and better prepared to participate in the long-term development of the economy and security of the region. The one thing that kept being highlighted was the fundamental role of strong and the government purchasing agencies. This is viewed as a major advantage, but Aljeeran wanted to point out how it can also limit growth and innovation.As an alternative to informal agreements, the DIS encourages transparent co-operation by making clear to all potential participants in the market what the buying agencies really want, why they want it, and when. This enhances the use of planning, and enables more sophisticated and collaborative delivery teams and consortia, where smaller local players may be able to participate in a broader range of supply chain systems. The pace of development for new equipment, weapon systems and platforms is rising, and next-generation research and development activities are going to get increasingly challenging for smaller players. Improved integration, greater collaboration and knowledge sharing with global partners may be the best way to ensure the survival of the local defence industry, preserving local capabilities and appropriate levels of industrial authority, supporting national economies and encouraging the development of local centres of industrial excellence.purpose, defence authorities need to work with the defence industry to ensure the they create a realistic and appropriately its needs and intentions and is aware of the capabilities it needs to keep or wants to develop. Recognising that local, regional and the plan will be essential for its success, and as many as possible should be consulted before and during its development.It is inevitable that in a sector like this, that there will be formal and informal relationships between buyer and seller, but modelling them can help us better understand linkages between causes and effects. By implementing more formal guidance regarding their strategic objectives and buying intentions, government agencies can encourage certain types of behaviour in their industrial supply chains that may help with delivery partners and develop better production systems for the AVMs so they can produce platforms and systems that armed forces. The publication of a DIS in the GCC states could make important contributions to the development of their domestic armoured vehicle industry, improve the equipment production process and ensure that the forces are supplied with the right kind of capabilities for the near-to-medium term. By encouraging greater transparency and predictability in the defence supply chain, government agencies can help their local industries grow, innovate and meet their evolving defence and security needs. ABOUT THE AUTHORSCol. Isa K. Aljeeran is currently University, sponsored by the Bahrain Defence Force (BDF). He already has an MSc in System Acquisition Management from the US Naval Postgraduate School. He worked in defence equipment maintenance engineering for 15 years and was head of the Bahrain Defence where he was involved in the acquisition of military weapon systems, primarily armoured vehicles.John McCormack is a Lecturer at Cranfield University. His research focuses on industrial performance and public-sector management practices.Peter Antill graduated from Staffordshire University Relations, gained an MSc Strategic Studies FOOTNOTES1. https://www.defenceprocurementinternational.com/features/land/nimrs-rapid-intervention-vehicle-for-special-forces2. Defence Industrial Strategy: Defence White Paper, Cm6697, 15 December 2005, available at https://www.gov.uk/government/publications/defence-industrial-strategy-defence-white-paper3.  (Copyright: STREIT Group)View publication stats

A Strategy for Self-Sufficiency

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A Strategy for Self-Sufficiency

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