Harris Corporation provides technology-based solutions that solve government and commercial customers' mission-critical challenges. The company operates in four segments: Communication Systems, Space and Intelligence Systems, Electronic Systems, and Critical Networks. It designs, develops, and manufactures radio communications products and systems, including single channel ground and airborne radio systems, 2-channel vehicular radio systems, multiband manpack and handheld radios, multi-channel manpack and airborne radios, and single-channel airborne radios, as well as wideband rifleman team, ground, and high frequency manpack radios. The company also offers secure communications systems and equipment, including Internet protocol based voice and data communications systems, as well as single-band land mobile radio terminals and multiband radios comprising a handheld radio and a full-spectrum mobile radio for vehicles. In addition, it provides earth observation, environmental, geospatial, space protection, and intelligence solutions, such as sensors and payloads, as well as ground processing and information analytics for security, defense, civil, and commercial customers; and positioning, navigation, and timing products, systems, and solutions. Further, the company offers electronic warfare, avionics, wireless technology, command, control, communications, computers and intelligence, and undersea systems solutions for aviation, defense, and maritime applications. Additionally, it provides managed services that support air traffic management, energy and maritime communications, and ground network operation and sustainment; and information technology and engineering services to government and commercial customers. The company has a collaboration with Boeing for the development of avionics technology for military aircraft. The company was founded in 1895 and is headquartered in Melbourne, Florida.
Business Analysis of Harris
The Telecommunications Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Harris compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Harris to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Harris with an interactive chart.
- Revenue Growth: Harris reported a revenue growth of 46.9% year-on-year during 2016. Communication Equipment Industry grew at 18.7% in the same period
- COGS share of Revenues: As a percentage of revenue, Harris spent 68.7% of its total revenues on COGS. Communication Equipment industry average (COGS share of revenue) in the same period was 57.5%
- R&D share of Revenues: Harris R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Harris spent 15.9% of its total revenues on Sales, Marketing, and General Administration (SG&A). Communication Equipment industry average SG&A spending in the same period was 15.2%
- Inventory share of Revenues: As a percentage of revenue, Harris spent 12.7% of its total revenues on Inventories. Communication Equipment industry average Inventory spending in the same period was 7.6%
- Accounts Payable share of Revenues: As a percentage of revenue, Harris invested 7.9% of its total revenues on Accounts Payable (A/P) Communication Equipment industry average Accounts Payable investment in the same period was 9.0%
- Accounts Receivable share of Revenues: As a percentage of revenue, Harris invested 11.7% of its total revenues on Accounts Receivable (A/R). Communication Equipment industry average Accounts Receivable investment in the same period was 18.1%
- PP&E share of Revenues: As a percentage of revenue, Harris invested 12.6% of its total revenues on Property, Plants, and Equipments (PP&E). Communication Equipment industry average PPE investment in the same period was 48.2%
- Intangibles share of Revenues: As a percentage of revenue, Harris invested 98.5% of its total revenues on Intangibles. Communication Equipment industry average Intangibles investment in the same period was 90.9%
- Net Margins: Harris Net Margins in the year 2016 were 4.3%. Communication Equipment industry average Net Margins in the same period were 5.0%
Sector and Industry Association of Harris
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.
Harris is associated with Telecommunications Sector and Communication Equipment Industry.
Telecommunications sector is comprised of the following industries: Telecom Services; Communication Equipment. The definitions for each of the industries is as follows:
- Telecom Services industry includes providers of fixed-line and mobile telephone services.
- Communication Equipment industry includes providers of communication equipment to the telecom service providers. It also includes companies that own, operate, and lease mobile site towers to multiple wireless services providers.
Industry Ranking of Harris
With $7.5 billion revenues, Harris ranked number 1 of all the companies in the US Communication Equipment industry. There were a total of 27 public companies in the US Communication Equipment industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Communication Equipment industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.