In a presentation to Parliament's Portfolio Committee on Defence and Military Veterans, beleaguered State-owned defence industrial group Denel outlined its hopes and plans for restoring its businesses. Denel is currently organised into six commercial units, three of which, namely Dynamics, Lanward and Integrated Systems Solutions, are classified as "sovereign", while the other three (Aerospace, Space and Denel Properties) are categorised as "strategic".

The group presented its "strategic intent", which had five elements. These were -- commercially viably supporting and maintaining the Department of Defence's strategic and sovereign defence industrial capabilities; pushing operational excellence and revenue generation, according to global best practices, across all divisions; enlarging the order book and expanding opportunities for strategic partnerships (as the local defence budget is stagnant); making certain that internal controls are strong and credible; and, ensuring compliance with all the laws, policies and treaties that govern the defence industry.

Denel further identified its six key "strategic pillars". These were: support to the South African National Defence Force (SANDF); "financial efficiency and sustainability"; business growth and market expansion; operational excellence; "people, culture and capability" (explained as cultivating a "performance culture that supports effective execution"); and, governance, oversight and control (that is, to "[e]nsure compliance and protect organisational value"). 

It had four "strategic goals and objectives". These were, first, achieve the budget profit and loss plan targets over the next three years; achieve future financial growth of R5-billion in turnover in the next five years; and, be the SANDF's supplier of choice. Second, make Denel a "reputable and respected brand", which is recognised as being dependable and reliable and a world-class supplier of defence and security technologies. Third, to be efficient, operationally, delivering projects on time, with solid ethics and governance. And, fourth, to be an employer of choice and a "socioeconomic contributor". 

Denel's market focus has seven elements. These are -- to diversify its products; to recover its markets (South Africa, Africa and the Middle East); develop product technology roadmaps, including the development of new products, as well as including state-of-the-art developments in its existing portfolio; build strategic partnerships, to move into new markets; diversify its markets; analyse the "geopolitical landscape"; and undertake country-specific analysis.