Business Strategies for Satellite Systems ForacompletelistingoftheArtechHouseSpaceApplicationsSeries, turntothebackofthisbook. Business Strategies for Satellite Systems D. K. Sachdev Artech House Boston • London www.artechhouse.com LibraryofCongressCataloging-in-PublicationData AcatalogrecordofthisbookisavailablefromtheU.S.LibraryofCongress. BritishLibraryCataloguinginPublicationData Sachdev,D.K. Businessstrategiesforsatellitesystems.—(ArtechHousespaceapplicationsseries) 1.Directbroadcastsatellitetelevision—Management 2.Strategicplanning I. Title 384.5′544′068 ISBN1-58053-592-5 CoverdesignbyGaryRagaglia ©2004ARTECHHOUSE,INC. 685CantonStreet Norwood,MA02062 All rights reserved. Printed and bound in the United States of America. No part of this book maybereproducedorutilizedinanyformorbyanymeans,electronicormechanical,including photocopying,recording,orbyanyinformationstorageandretrievalsystem,withoutpermission inwritingfromthepublisher. Alltermsmentionedinthisbookthatareknowntobetrademarksorservicemarkshavebeen appropriatelycapitalized.ArtechHousecannotattesttotheaccuracyofthisinformation.Useof aterminthisbookshouldnotberegardedasaffectingthevalidityofanytrademarkorservice mark. InternationalStandardBookNumber:1-58053-592-5 10987654321 Tomywife,Usha . Contents Preface xv Acknowledgments xix 1 SatelliteBusinessToday 1 SatellitesBusiness—WhatExactlyIsItandWhatIs ItsFuture? 2 SatelliteBusinessBoundaries 2 SatelliteBusinessToday 5 SatelliteBusinessTrends 8 References 9 2 SatelliteBusinessExperienceandLessons 11 IndustryEvolution 11 DTUTelevisionSystems 13 MobileSatelliteServices 15 DigitalRadio 16 InternetViaSatellitesorBroadband 16 LessonsLearned 17 Lesson1—IfYouAreinaConsumerBusiness,Start withtheConsumer 18 vii viii BusinessStrategiesforSatelliteSystems Lesson2—ReducetheLeadTimesAsMuchAsPossible orYourBusinessPlanWillBecomeSomebodyElse’s 20 Lesson3—UnlessYouHavePositiveConfirmationofthe BusinessPotentialovertheSatellites’Lifetime,Avoid MakingNonfungibleSatellites 20 Lesson4—ASystemCapableofGrowinginaModular FashionintheSpaceSegmentHasGreaterAbilityfor MidcourseCorrections 22 Lesson5—UnderservedMarketSegmentsAreOftenAlso FinanciallyUntenable 23 Lesson6—ASuccessfulBusinessModelinOnePartofthe WorldCanFailElsewhere 24 Lesson7—SystemDynamicsofaTwo-WaySystemIs QuiteDifferentfromThatofaOne-WaySystem 24 Lesson8—InGoodTimesandBadTimes,BoringIs OftenGood 25 References 26 3 IntegratedBusinessStrategyProcess 27 IntegratedBusinessStrategyProcess 28 4 BusinessStrategyDevelopment 35 Mission 35 EnvironmentAnalysis 38 ExternalEnvironmentFactors 38 InternalEnvironmentFactors 44 StrategicChoicesandRiskAnalysis 45 RiskFactorsinSatelliteSystems 46 NarrowingDowntheStrategicChoices 48 SelectedBusinessStrategy 50 CaseStudies 51 CaseHistory4.1:ReneAnselmo’sGamble 51 CaseHistory4.2:IridiumSystem 52 References 54 Contents ix 5 BusinessPlans 55 PurposeandObjectivesofaBusinessPlan 56 BusinessPlanasPartofIBSP 58 BusinessPlanContents 59 ExecutiveSummary 60 Vision 61 Mission 61 EnvironmentAnalysis 62 GeneralBusinessEnvironment 62 MarketShareandCompetition 63 RegulatoryFactorsandApprovals 64 IntellectualProperty 65 BusinessStrategy 66 SystemInfrastructure 67 ProductsandServices 68 Operation 68 CompanyManagementandAdvisors 68 Risks 69 Financials 69 Summary 69 Reference 70 6 SystemPlanning 71 WhatIsSystemPlanning? 73 SystemArchitectureSelectionandDevelopment 73 SystemArchitectureExamples 75 SystemDesignandOptimization 78 IndustrialTechnologyAssessment 79 MarketDemandCompatibility 80 x BusinessStrategiesforSatelliteSystems CompliancewithRegulatoryRequirements 81 CompliancewithFinancialCriteria 82 EngineeringInterfaceRequirements 83 OtherSystem-PlanningActivities 83 CaseHistories 84 CaseHistoryI:ArchitectureTradeMethodology 84 CaseHistoryII:TheIntelsatVIIProgram 85 References 90 7 EngineeringtheSystem 93 SpecificationCreep 94 MeasuresofSuccessfortheEngineeringPhase 95 ConsumerCosts 95 ScheduleCompliance 96 SystemFlexibilityandFungibility 97 ConsistencywithInvestmentLevelsinBusinessPlan 97 TypesofSatellite-BasedInfrastructures 98 TelecommunicationSystems 98 BroadcastSystems 100 BroadbandSystems 101 MobileSystems 102 MajorEngineeringElements 104 ConsumerEquipmentDevelopmentProgram 104 ConsumerEquipmentSubsystems 108 KeyChallengesforConsumerEquipment 110 SpaceSegmentDevelopmentProgram 111 SystemPlanningInputs 112 GenericSpacecraftArchitectures 113 Payload 113 Bus(orPlatform) 117 SpacecraftProcurementProcess 119 OversightofSpacecraftDevelopmentProgram 121 LaunchServices 123
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