For us the biggest issue we try to think about and research is the fact that IT is now pervasive really in every part of the firm and that is very different in the past where all of the things tend to run through central IT so the challenge for many organisations today is how do you manage technology in an environment where it touches every employee, every process and every function of the firm and what does that mean to the central IT function. The traditional IT function was very much a back office function, it was focused on financial systems, inventory systems, management and control systems but it was very much not focused on what we call today front of the firm functions, what is going on in the market place, what is going on with the customer, what is going on with the innovation of the firm and now that is really the focus of technology in the market today. What’s changed is just over time how much more powerful technology has become and we look at that through really two main dimensions – that technology has become consumerized so everybody has it with them at all times in all places and that certainly wasn’t true 10 years ago and just the growth of the cloud and the internet environment and its capabilities to be able to provide just about any technology service anywhere in the world for a very effective internal price has really made it much more easy to try things and do things and just greatly increase the speed of innovation.  So consumerisation and the cloud have just really changed the shape of the IT business over the last decade.

We don’t see so much disruption from technology into our core business. Where we do see the disruption really, is around the edges, again particularly in our retail space, in terms of the expected interactional relationship that our customers have with us as a business. So being out there, having a presence on the web, then being able to access and control their energy uses from things like apps and from their smartphone devices or tablets, or even being able to control the energy consumption plans inside the house, is also becoming big. Again controlling through their smartphones, and we're expected to play in that space.I guess from a consumer perspective, people are changing the expectations they have of utility businesses. So they're having to focus a lot more around their retail relationships and become much more service focused. Particularly in the area now of energy consumption and greenhouse gas emissions, impact on the environment through global warming. People are becoming much more aware of how much energy they're using and how that compares with their neighbours, say, and their averages to make sure they can keep their consumption down both from an environmental perspective but also with the price of energy rising from a cost perspective. We now feel the obligation to help our customers actually reduce that cost.

There are a couple disruptions that you can look at from what we would think of as an external factor – what our customer use – you look at the soldier these days we do a lot of soldier systems, they are using iPods, iPhones, Androids, all of that has crept its way into our customer base so the solutions we sell externally have to incorporate that and then internally also the consumerisation that trend has been very disruptive.  Probably the most disruptive thing that has been a positive has been the mobile aspects of how we can do our work because the next generation of people coming to Raytheon have certain expectations around social networking and how you do the work and the mobile is a large part of that experience.

Consumer trends, well the consumer trends that are impacting ETS at the moment of course are the bring your own device.  Not just for the company, but for education as a whole.  I mean, if you go on campus, you will see every kid has a computing device.  That's starting to happen in K-12 as well.  All the way down to kindergarten. So as kids have devices, and they're bringing them to school, we need to take advantage of that.  Because the schools can't afford to give everyone a device, so the schools are recognising this, and the schools are embracing the bring your own phenomenon because they need to get to college and into the hands of students so they can change the way they run their schools.  So they can bring advanced learning, get rid of the big heavy backpack, bring new textbooks that are always up to date.  Do assessment on the fly in real time.  You know, we could change education with the introduction of technology just as retail chains with the introduction of the supply chain, just as all other industries have seen massive changes. Education has lagged behind, but I think that's about to change.