Establishing a public sector practice

Global technology companies have abundant opportunities in the US Government (USG) market for their enterprise products and services

Most Federal agencies individually, not to mention the government at large, spend more on information and digital technology related capabilities than any single corporate customer. On average, the USG spends >$110B on cloud, cyber, and relevant enterprise information technology and software. Thus, commercial firms are paying attention to this market, especially as USG customers seek to invest in, and access, commercially available technologies more directly. 

While some government customers provide scale and an economically attractive business case, many also have leading-edge computation requirements and use cases that can help advance the solution-space (and innovation/product development) of technology companies.  

This two-way street, which used to be appreciated by early technology pioneers such Fairchild Semiconductor and International Business Machines, is regaining momentum and relevance in today's political, economic, and market environment. 

Many technology companies have an established presence supporting USG Defense, Intelligence, and Civil customers often working indirectly via systems integrators or value-added resellers.

However, success requires establishing a Federal Government P&L that can have regulatory requirements, facilities, cleared talent, and modified or independent solutions that can serve a wide diversity of USG use cases.    

Multi-track analysis for market entry strategy 

‘ScaleTechCo’ completed a detailed review and established a business case for an independent P&L serving the USG across Civil, Defense, and Intelligence customers. To understand its option space three tracks of analysis were completed: 1) gaps were assessed in compliance, contracts, customer access, and integration needs; 2) dozens of relevant use cases were assessed and prioritized down to eight with technology stacks in which the Client could win; and 3) differentiators were mapped against peers and systems integrators to identify optimal market channels. 

Importantly, success metrics were established by which to evaluate near and long-term success and test optimal organic and inorganic growth pathways. Combinations of actions were considered which included indirect channels to market via integration firms, direct bids on competitive programs, acquisitions of smaller entities to accelerate entry across customers and use cases via a string of pearls, and the potential of making bigger bets that could transform the business model of the parent company. 

Risk-adjusted value pathway selection

Success was defined based on share, time to entry, and differentiation - among other factors. Each growth option was evaluated with risk assigned to it based on the likelihood that it could be accomplished successfully. Renaissance developed a business case for each pathway outlining its revenue and profitability potential, risk-adjusted program capture options, and pro-forma performance based on acquisition options.