Defence Strategy Implementation
Global Defense spend at $2 Trillion per annum
The Australian Department of Defence has a current $500billion forecasted budget for the next decade. This budget is for the acquisition and sustainment of their required assets. There are literally millions of opportunities and these opportunities are for all manner of different types of businesses.
As part of the Australian Government’s plan to build its sovereign Industrial capability, they have released numerous white papers and continue to add to the valuable information for industry with updates such as the new Force Structure Plan and Strategic Update in 2020.
Some programs have already scaled up and there is plenty of international attention.
Australian Defence focussed industry needs to boost their marketing and sales game to make the most of these opportunities.
Australia has a unique position amongst the surrounding Asia Pacific nations, firstly with a world-class Defence market supplier base and also as a larger neighbour to many smaller nations which don’t have a well established industrial base for multiple industries. We have several world-renowned Defence industry suppliers spread across multiple states of Australia. These companies have supplied the international Defense market for decades and many of these home-grown Australian innovations are included in other nations’ war fighter capabilities and major asset platforms.
We also have the benefit of having a long history of highly sought after education and runs on the board with innovations especially in the Defence market.
This unique position and situation allows the Australian Defence industry to be the leaders among our neighbouring countries.
Opportunities in Defence
Working under the overall management of Prime Defence Contractors, there is a vast hierarchy of suppliers called a supply chain. Thousands of small to medium businesses in Australia provide services into Defence projects.
Myth one: You will sell directly to Defence.
Fact: Most projects are won by international Defence Primes and MSPs, who work directly with the Commonwealth (Australian, Department of Defence). The exceptions are smaller project, and projects which are so niche that Primes are not involved as they bring no value to the solution; something so unique and unprecedented that only a niche specialist can deliver (maybe this is you!).
Myth two: Defence is after concepts that are not tried and tested.
The Australian Department of Defence will take little to no interest in unproven concepts, products, & services. They require robust, unique, and stable solutions from their contractors who are already successful in the commercial world (typically).
If you have a product or service that is not commercialised yet, do it in the commercial world first and then jump into the Australian Defence Industry after it’s a proven quantity there.
In saying all this, Defence needs almost everything that the commercial world needs, but with a Defence twist… meaning whatever you provide they most likely need what you offer.
To be successful in the Defence market you must be engaged in activity within the Defence industry; and it is advantageous to also have a working knowledge of the Defence procurement framework.
Outside the Defence direct project pipeline, projects worth hundreds of millions are waiting to be developed by someone who understands the Defence industry; this could be you!
Australian Defence Procurement
Most of the Federal Government procurement activity goes out through AusTender; publicly available and free of charge.
Many Defence supply chain opportunities are published through the Industry.
Capability Network (ICN). You can also showcase your products and services on this platform, helping you to gain traction faster.
ICN began as a Government project, and is now a vibrant network of opportunities with a user friendly interface; where you can find opportunities within the Defence industry.
These opportunities are released mainly by International Defence Prime contractors, who have already won the projects with Defence.
If you’re chasing Primes and MSPs, you must also understand Sovereign Industry Capability Priorities (SIC Ps). The Commonwealth increases its budget on an annual basis, massively expanding its capability from a sovereign standpoint through the Department of Defence’s major acquisition and sustainment projects. Understanding the SIC Ps will help you understand how to target projects with Primes, MSPs and with Defence directly.
If you are unaware of the 14 sovereign industry capability priorities (SIC Ps) you will need the special offer we provide at the end of our free “Cracking the Defence Sales Code” webinar. The Hybrid training and consulting package that we provide as a starter into Defence Sales is designed to make you well aware of the SIC Ps and many other aspects you need to know to prepare you for success and helps you to gain traction much faster than you would if trying to figure it all out on your own.
These things are all pretty tricky to understand when you are new to Defence.
Take care of your relationships in Defence, and the business will flow towards you.
There are many opportunities that are unannounced in this sector. Only the companies who are actually building relationships and working at building their networks in the Defence supply chain will get to know about them.
One of the keys to closing the deal within the Defence market is to showcase how your product or service will serve their needs in the present.
You must prove that your offering is better (in a tangible way) than what your competition (their current suppliers) are already providing Defence.
Remember, thousands of companies are trying to get a deal with the Australian DoD.
Your pitch should be fast and easy to understand. You have to present your strengths really well in an attractive way in order to be heard and ultimately convince them that its in their interest to give you an audience for your offer.
Marketing and Sales in Defence is our speciality
We provide consulting, training and services, creating a clear and supported path to help you win Defence work. It is pertinent to know that collaboration is a major part of Defence sales. Primes and other large organisations cannot work without collaborating, because none of them can provide the complete solutions (normally) that any Department of Defence around the world requires. Take the Joint Strike Fighter (JSF) program for a classic example… this is a collaboration between three massive global Defence contractors (giants), Lockheed Martin, Northrop Grumman and BAE Systems. This project would not be the success it is without this main collaboration or the many hundreds of other businesses they have in their supply chains which support the Primes in their parts within this collaborative arrangement to supply the complete JSF solution.
You need to understand collaboration and the Defence industry as a business – to be able to get ahead of the competition; and make a name for yourself as an Australian Defence supplier. Let me reiterate for you that collaboration is key in Defence projects and winning them!
We don’t just provide advice and training to enter the Defence market; we also boost your confidence by providing a structured roadmap to your success in sales.
So if you are looking for someone to help you gain traction in the industry and start winning work – we’re here to help.
BOOK A MEETING TODAY!
Find out How & Where to start gaining Clarity & Traction with Sales!