We choose to operate in selected markets away from commoditised areas of electronics where we can add value through our innovation, our heritage as a global leader in radio frequency (RF) engineering and our ability to design highly differentiated solutions
for our customers.
Our strategy is focused on capturing and creating value through the strategic differentiators of innovation, reliable fulfilment and speed. The demand for thinner, more powerful electronic devices requires increasingly innovative solutions in protecting electronics from heat and signal interference. Seamless connectivity equally is becoming the norm for product performance. In mission-critical situations such as mining, hospitals and industrial processes, our ability to provide dependable and innovative solutions creates our strong competitive advantage.
Our established product lines deliver strong growth and profitability which underpin our growth and investment. We build on our strong customer relationships to win new business from customers with proven product solutions, reliable fulfilment and speed in response to customer need. Our focus in this market segment is on strengthening our customer partnerships and proven product solutions to create incremental growth to fund future growth.
Our innovative product solutions help us to penetrate new markets and new geographies through collaboration between our business units and applying our proven expertise to new challenges. We seek to exploit our expertise in adjacent market segments and across businesses to create new opportunities.
We combine this technical expertise with our business model for operational and strategic focus to drive growth through market development, research and investment priorities and new products and technologies.
Our proven expertise in RF technology provides a strong basis for further growth through innovation and product development for our strong customer relations. We invest approximately 9% of our revenues in research and development which in turn drives future growth in our businesses through new product development, design innovation and customer mindshare.
Where feasible, we seek to extend our product solutions and market reach organically by collaborating across our businesses and leveraging our customer mindshare.
However, we actively evaluate market opportunities that allow us to leapfrog a technology generation or that add to our product solutions through carefully considered inorganic opportunities.
To evaluate the success of our growth strategy, we have set clear objectives for our performance and measure those against well-defined KPIs (‘key performance indicators’).
Continue to diversify within and between market sectors.
Increase the number of significant customers across the Company.
In 2014: 6 customers over $25m (2013, 5 customers).
8 customers between $10m and $25m (2013, 8 customers).
65 customers between $1m and $10m (2013, 57 customers).
Increasing use of automation processes.
Precision engineering focus and Business Design Centres rollout.
Reliable sampling and rapid prototyping.
Demonstrating our value to protect pricing.
Continue to build the right key relationships between our senior people and customers.
Revenue and margin growth.
Internal target for low defective parts per million (DPPM).
Accelerated product roadmaps.
Drive collaboration and innovation.
Expansion of Business Design Centres providing local on-the-ground innovation support.
R&D investment, which increased by 10% to $81.9m (2013, $74.4m).
Scorecard: number of granted patents has increased to 6441 (2013 December, 570).
Reduction in sampling lead times.
Continue to identify and penetrate new market segments and geographic markets.
Target top tier OEMs in select vertical markets.
Continue to empower leadership teams to ensure managers have the autonomy to make business decisions quickly.
Further collaborative working.
Encourage people to assess opportunity in the light of our long-term vision, rather than as incremental adjustments to where we are today.
See ‘Recognising and rewarding performance’ section in the CSR report.
© 2016 LAIRD PLC