Vanguard Magazine

www.vanguardcanada.com FEBRUARY/MARCH 2016 39 t teChnology WATCH kets, while adding to our in-house cross- sector knowledge and expertise. Leveraging our cross-sector capabilities and technolo- gies is important to us as a business, with process and technology improvements car- rying over to multiple sectors." the aBCs of diversification ATCO, Bombardier and Calian are other companies we spoke to about the benefits of their diversified approach to their busi- nesses. All three companies are truly exam- ples of truly diversified companies. When asked why they believe diversification is so critical, we heard the following: "It is intuitive that an organization would identify if their products, methods or processes developed in one sector are also application in other industry sec- tors. This allows a company to capitalize on the organizational experience and IP already developed while broadening its revenue base. It also creates economies of scale due to the organization's ability to re-use products and methods already de- veloped, thus lowering costs and reducing risk. This in fact is a key factor in Ca- lian's overall growth strategy – that is to proactively seek opportunities to produc- tize extensive services that we offer the de- fence industry and look for opportunities to expand into other industries." - Kevin Ford, President and CEO, Calian. Diversification allows Bombardier Spe- cialized Aircraft to address a very wide range of mission solutions, from maritime patrol to surveillance, medical evacu- ation, and search and rescue, thereby shielding the organization from the nega- tive impacts of a downturn in one specific market.There is an industry-wide trend towards the optimization of civil and military technologies, and the use of off- the-shelf solutions on advanced special- ized aircraft. This not only reduces devel- opment costs of custom mission solutions, but also greatly reduces the time to mar- ket of these advanced specialized solutions. -Stéphane Villeneuve, Vice President, Spe- cialized Aircraft, Bombardier "ATCO Frontec's value proposition lies in its ability to draw on its wealth of ex- perience and migrate this expertise across the markets it serves. This enables it to constantly innovate in developing new and enhanced capabilities, and pursue opportunities in adjacent markets. This is essential for long-term sustainable, organic growth. For instance, ATCO's fuel management capability was origi- nally developed during the early days of its involvement in the North Warning System contract. ATCO later built on this capability to create a joint venture with the Nunavut Petroleum Corpora- tion to operate a bulk fuel storage facility and provide a pipeline distribution sys- tem in Iqaluit in support of the govern- ment of Nunavut. This contract grew to include the provision of tanker fuel re-supply and complete airport refueling operations. With airport refuelling op- erations now within its portfolio, ATCO went on to provide management of the above-ground fuel tank farm to NATO Flying Training in Canada (NFTC) at 15 Wing Moose Jaw. Under this contract ATCO's capabilities grew to include Fire Crash Rescue service; a high-val- ue firefighting service, especially if you want to ensure personnel rescuing pilots from burning aircraft are trained suf- ficiently to not accidentally "eject" them during extraction. This unique capabil- ity was honed in ATCO's fulfillment of its contract with NATO's International Security Assistance Force at Kanda- har airfield, where ATCO provided emergency Fire Crash Rescue services while operating in an active theatre of operations with multiple aircraft types (fixed and rotary wing) carrying live ordinance. ATCO continues to provide this service in Kandahar still today the by way of its own highly specialized fire department. The next evolution of this capability has ATCO looking at select industrial markets and in internation- al regions which are adopting a priva- tized model for Fire Services. All borne from early fuel management experience on the North Warning System." - Marie Darling, Director of Business Develop- ment, ATCO Frontec We are also proud to be partnering (alongside Vanguard Magazine) as the B2B sponsor of the February 2016 con- ference called ConvergX (www.convergx. co): "Where industry lines disappear" oc- curring in Calgary, AB. The event is the brainchild of Kimberley Van Vliet, presi- dent of WaVv Business Development, which is primarily focused on expanding businesses through adjacent markets, par- ticularly in the aerospace, defence, security and oil and gas sectors. Kimberley Van Vliet reiterated her main reasons why it is critical for companies to diversify into Adjacent Markets: • Growth • More fully utilize existing resources and capabilities • Escape from undesirable or unattractive industry environments • Make use of surplus cash flows • Achieve economies of scale and scope as well as expand product offerings, and/ or expand into new geographical or technological areas In conclusion, I am confident that industry diversification is a positive thing for this in- dustry and those of us working in it. Like all good mistakes, I guess they are worth it, as long as you don't make it twice.

• Cover