From The Source: Alan Callaghan Managing director Harris Technology Asia Pacific

With the battlespace becoming increasingly networked through the use of integrated communications technologies, ADM Editor Katherine Ziesing took some time to speak to Alan Callaghan about the challenges and issues facing one of the best-known comms companies in the land.

ADM: Harris is known predominantly as a communications company, but what other capabilities can the company point to in the Australian context?

Callaghan: It’s interesting that you make that observation because for several years now Harris has been very much focused, not on simply selling communications, but on selling capability. By this I mean that the focus of our internal research and development has been and will remain directed at the systems level of capability.
This is driven by the fact that modern communication devices need to do so much more than transmit voice and data. They are the very backbone of the networked system; the primary objective of which is to provide situational awareness to the commander and his troops. This takes a melding of many technologies, including software, EW, infrared, and radar systems, to achieve. In addition, the output of these technologies must be seamlessly pushed and pulled up, down and across all levels of the battlefield.

We have been fairly successful in this; Harris Corporation is a world leader in secure missions-critical communications and IT, and provides solutions for over 150 countries around the world. In Australia, we already provide defence communication solutions through our hub in Brisbane. We provide satellite communications through our teleport in Perth and we provide IT networks of all classes of equipment to commercial clients like Network 7.
To provide some perspective, Harris is actually organised into three $2 billion segments globally, each of which offers solutions and technologies relevant to the Australian market. There’s RF Communications, which provides tactical and land mobile radio systems and networking applications for global defence, security and public safety markets.

Second is Integrated Network Solutions. This includes IT services, managed services, cyber integration and media solutions which support government, energy, healthcare, broadcast and enterprise networks. These networks encompass all the things you expect, such as systems network management, information assurance, enterprise service management and transport and hosting services.
The final of our segments is government communications, and they provide systems, technology and systems integration to defence, national intelligence and federal civil markets.

Australian customers are very familiar with our integrated platform network products but may not know that we provide a wide range of packaged defence systems and larger bespoke C4I solutions.
We provide a total Falcon Fighter integrated technology system which integrates everything on the body of the soldier to give him maximum situational awareness and actually tie him into the network, effectively as a node of that network. We also provide integrated vehicle systems, C4I systems, maritime interdiction systems, border security solutions, deployable communications systems and disaster relief solutions.
Our recent acquisition of Tyco means that we can now provide integrated defence and public safety solutions, including network administration, management products, dispatch consoles, network gateways and radios. We do this for police, ambulance and fire services around the world.
Specific technologies include VIDA, which is our voice interoperability data access network, which can integrate a wide variety of mobiles and portables to provide broadband services, voice data and video. We also provide BeOn mobile cellular networks which is a very innovative integrated managed group communication services over 3G and 4G networks, and that’s available anywhere in the world.
Two capability areas I would like to focus on are our satellite segment and our communications and secure IT networks. In satellite communications Harris CapRock provides fully managed V-SAT services to remote and harsh environments, including customers in energy, government and maritime markets. It’s not well known but we actually manage 3 gigahertz of capacity across more than 60 satellites with the associated infrastructure, teleports and, network operation centres spread throughout the world.

In terms of secure networks, Harris operate some of the largest IT networks in the world for defence clients and government clients, such as the US Federal Aviation Administration, which is a Harris engineered and deployed private network supporting both flight operations, 2 million passengers a day, and the associated administrative infrastructure at over 800 sites.

Another important example of the Networks Harris is responsible for is the Navy/Marine Corp Intranet (NMCI). This network is the world’s largest purpose built IP managed network; only the internet itself is larger. Related to the above networks and other secure communications networks is the fact that we are recognised leaders in cryptography and cyber security. We provide secure cloud hosting services, technology counter measures and monitoring capabilities to proactively safeguard every level of the battlefield, from the network architecture all the way down to the vital soldier systems.

ADM: How is the company getting on with integrating its radios into the solider combat system under Land 200?

Callaghan: This is a very comprehensive and complex program and it involves a lot of interplay between a significant number of players. Everyone on the program understands the importance of what we are doing and has a shared determination to ensure that the program is a success and it’s on schedule. As a team - that includes the Commonwealth, Elbit and other subcontractors - we have worked assiduously to address all the dimensions of the program.
It’s my strong belief that if you adopt a multi-dimensional approach to these programs, the dollars and schedule imperatives occur more easily. Having said that, there’s no doubt that there are technical challenges. However, it’s important to recognise that, to a very large extent, these were addressed in the pre-contract stage by trials, the parallel offer definition activity and laboratory work.
We’ve been entrusted with the program and we will do whatever is in our power to provide a solution to the war fighter in the most efficient and timely manner possible. The program really is going quite well at the moment.

ADM: Are you on schedule? Are there any delays or issues that are connected with the project at this time?

Callaghan: Are you referring to the program as a whole or from an ITARs (International Traffic in Arms Regulations) perspective?

ADM: Both.

Callaghan: At the moment we’re on schedule; there are no showstoppers. As I say, all the teams are working extremely hard. We have an initial operational capability milestone that we’re heading towards, and we’re on track to get there. In terms of ITARs, I think the ITARs issues are becoming increasingly ubiquitous across ADF programs and I see this as a very natural evolution as we move towards more and more complex US-sourced systems.
My view is that philosophically this is really a confirmation of that old axiom that you don’t get something for nothing. We need leading-edge technology and we have to acknowledge that comes with a price. For example, the Falcon III systems that Harris supplying through this program are clearly leading edge and are actively deployed with coalition forces around the world. Hence I think it’s important that people understand that ITARs is a necessary framework to ensure that the technology is. This is particularly important as it relates to communications and other real time, frontline systems.
In addition to planning for ITARs, I believe that companies and even the Commonwealth need to have ITARs trained personnel on their staff. ITARs is so centrally important to all of us in terms of the success of the program and adherence to the schedule that we need to be careful that it’s not treated as a part-time pursuit but as an integral component to any US-sourced program. To put actions with our words here, Harris has recruited a full-time export compliance person who’ll be situated in the Brisbane hub, specifically to address that aspect of the program.

ADM: Is the company trying to position itself for future vehicle projects such as Land 121 Ph 4 and Land 400?

Callaghan: We certainly believe that our capabilities and our strong heritage in vehicle based C4I systems are directly relevant to these programs and that we have a role to play.  I think our credentials in this domain speak for themselves: in the MRAP program alone we are integrating our systems into tens of thousands of vehicles. This is in addition to the many other thousands of vehicles we have integrated in other parts of the World: including in the Asia Pacific region.

I think our ability to contribute to these programs is significantly strengthened by the ongoing evolution to fully integrated networks.  
So; in summary, yes, certainly we’d like to be part of all the communications programs based in Australia. We believe that we not only have the products but equally importantly we have the experience as well as the integration skills to significantly value add to these programs.

ADM: What is the company’s view of the long-term defence market in Australia? Obviously you’re opening the new Brisbane office, so you’ve made an investment there, but can you give us your perspective on the next 5-10 years of the defence market in Australia?

Callaghan: Harris is a company that derives a large portion of our income from the defence sector and in fact we’re active in over 100 defence forces around the world. As such, I think we’ve got a pretty good understanding of the various defence procurement models. Defence is not an easy market, and I think we can all admit that the market can be a bit lumpy and the challenge for all companies is to have a sufficiently rounded portfolio that helps smooth out the profile.

Fortunately, Harris has a wide spectrum of products and capabilities in the civil as well as the military domain. Acquiring and maintaining a balance is of course a universal challenge. However, Harris is certainly benefiting from some well-crafted acquisitions and capability developments.
We’re also in a good position by virtue of the growing nexus between military and civilian requirements, particularly as they relate to the design and management of complex IP networks, cyber management and the associated enterprise architecture model.
Our view is that the Australian defence market, like other markets, is difficult but that it responds to investment and commitment. Our Asia-Pacific hub based in Brisbane is testament to this belief. That hub is above and beyond the contractual requirements of the JP 2072/Land 200 program and includes systems integration laboratories, workshops and secure areas. Accordingly, the hub is very deliberately focused to be a part of the Australian defence market for at least the next 10-15 years.

Our commitment to the market can be measured not just in property, but also in our recruitment of Australians to work in the hub. I am extremely happy with the mix of operational experience, technical skill and business acumen that our staff have. We believe that the Australian defence market has a lot of promise. We plan to be here for a long time.

ADM: What major projects can Harris pursue in the Asia Pacific markets in the medium term from that Brisbane office?

Callaghan: Of course, due commercial confidentiality I cannot be too specific in this regard. However, we have certainly been extremely successful in Asia-Pacific and have captured many of the regional combat net radio (CNR) standardisation programs. In addition we’ve successfully implemented several systems programs within the region.

Moving forward, our intent is obviously to capture new markets and to grow the market we have. We believe that there’s a very good catalyst for this is by bringing all the components of the network together so that the sum of the parts is greater than the sum of the individual components. This approach, to a large extent, has driven the direction of our IR&D, our acquisitions and our extremely focused systems strategy.
I remain bullish about our future in Asia Pacific: there is a growing demand for integrated networks and an increasing appetite within the region to deal with a company that understands the domain and has a proven track record of success.

ADM: Can you speak to some of the prospects for local companies to become part of a Harris global supply chain, be it in niche areas such as encryption, waveform design or antennas?

Callaghan: We’ve always had extensive relationships with local companies in the 150 nations where we operate. In fact, it’s likely that we have one of the largest dealer/distributor/companion company networks in the industry and each of these relationships are based on what makes sense in that particular market, and importantly some of those relationships reach back in excess of 30 years. Certainly in Australia we’ve already established good working relationships with a number of SMEs and are actively reaching out to find ways to engage these companies in our existing business and in a number of our current pursuits.
The Australian model in this regard will follow the global Harris model. That is, that the relationships will need to make sense and exploit niche capabilities. Certainly the days of customers paying a premium for Authentication and Authorization Infrastructure we believe are quite rightfully long gone. In terms of entering global supply chains, that too will be subject to market forces and the ability for our industry base to compete internationally.

ADM: Has the Priority Industry Capability (PIC) framework affected the way you conduct business in Australia?

Callaghan: Firstly, as an Australian and as a taxpayer I endorse the PIC framework. From a company perspective, the PIC concept has really been embedded in our business model for many years. As I mentioned earlier, we believe that it makes good business sense to commit and invest in countries that you do business in.

My belief is that that commitment must encompass more than just fulfilling the contract; it should involve growing indigenous capabilities and self-sufficiencies in those areas is immediately important for the customer. Fortuitously, at least from the Harris perspective, at least four of the identified PICs relate directly to our core capabilities. This was one of the incentives for Harris to invest in the regional hub above and beyond our contractual obligations. As I mentioned earlier, the hub has integration laboratories and has systems engineers on ex-pat assignments who have been specifically chosen and charged with the duty of training Australian systems engineers to replace them.
In fact while I was in uniform, I spent a great deal of time in force development and working with DSTO. Both of those roles gave great exposure to the intellectual foundation of our wider defence organisation. Building on these foundations to enact the objectives of the PICs is, I believe, to everyone’s advantage and I very much look forward to playing whatever role we can in that pursuit.

ADM: How has the Strategic Reform Program (SRP) affected your business, if at all?

Callaghan: I think it would be extremely difficult to be involved in the defence industry and not be affected by the SRP. At the very highest level the SRP accords with the fundamental tenet of business; to get the very best possible result in the most cost-effective manner. In industry this goes by many names. For example, we talk about “leaning” an organisation, however, in the final analysis the objectives of both the SRP and the commercial equivalents is simply to get the best bang for the buck.
Of course defence’s best possible result is to be able to protect Australia against uncertainty. By definition the nature of uncertainty raises the spectre of needing infinite resources to cater for a near infinite number of permutations, and clearly this is an invidious task and one in which we all have a very real stake.

Once again, by definition this should involve defence and industry working in partnership as opposed to some more traditional roles. My view is that we’re moving towards that partnership paradigm and the greater the number of intermediary shared goals there are, the better. For example, the SRP speaks of accountability, transparency, of fundamental and sustainable improvements.
Each of these adjectives describe what really is just good business sense, and the point of intersection are of course capabilities which are really delivering projects on time and on budget and for companies to make fair and reasonable profits such that they can afford not just to keep their technical edge from one program to another but also to grow that edge, such that it becomes a commercial benefit for the company and a strategic benefit for the country.
From a Harris point of view, we welcome the unequivocal nature and the objectives of the SRP. I think it has been far blunter and less esoteric than many previous documents. Coupled with the PIC framework, the documents give a good synopsis of where we are and where we need to go. However, like all good reforms, its legacy will be entirely dependent on its results. My personal view, from having sat on both sides of the desk, is that the greater the level of meaningful engagement and partnering between industry and defence then the greater the chance of success for all parties. Although this statement sounds obvious I’ve been nonplussed over the years at how little attention it often receives.  In my opinion, the understanding of each other’s imperatives could and should receive more attention.

I remain optimistic about the defence of this country and the health of the defence industry. I believe it’s too easy to forget that we have a somewhat unique strategic position in Asia, in that we have a comparatively very low population and tax base yet, we consistently field leading technology in several theatres at the same time. We have a dedicated, honourable and highly professional military.
It’s absolutely essential that we furnish them with what they need in a timely and cost-effective manner. This is a fundamental objective that can be achieved by a strong military industrial base, which I think is the underlying objectives of the SRP. We at Harris look forward to making our contribution to that fundamental objective.