FLIR’s CDMQ Business Model Advantages On Display with Star SAFIRE 380-HLDc

By: Andy Teich, President and CEO

The launch of the Star SAFIRE 380-HLDc is an important milestone for FLIR, building upon decades of sensor system research, development and deployment. The launch also epitomizes one of FLIR's greatest strengths; our ability to continually innovate and deliver unique value to our customers' missions under our unique "Commercially Developed, Military Qualified" (CDMQ) business model.

FLIR's "Commercially Developed, Military Qualified" Business Model

FLIR introduced the CDMQ business model in 2000, and it not only fundamentally changed how we do business, but it highlighted the benefits of leaning on the private sector to drive innovation.  Traditionally, advanced technologies were borne out of government-funded research projects and initiatives focused on a very specific application or customer requirement. These projects, often lengthy and costly, required the development of entirely new technological solutions to meet emerging needs. Additionally, governments used taxpayer money on developments that were either not completed or cancelled prior to delivery. FLIR recognized an opportunity to leverage its strength in innovation and commercial business processes to bring these much needed solutions to military and first responders faster and at lower costs. 

By funding our own technology research and development, and closely collaborating with a broad base of operators around the world, FLIR realized it could fund and supply full military qualified solutions faster and more cost effectively. Utilizing our high degree of vertical integration where we also build the parts that we use to manufacturer our products, we lowered product costs and consequently grew rapidly as government-oriented customers realized the value of our unique CDMQ model and associated products. 

At the most basic level, our CDMQ model relies on internally funded research and development and commercial economies of scale to accelerate development cycles and apply virtually all of our customer funding to product deliveries. Using the 380-HLDc as an example, we've delivered significant new capabilities to the market in a fraction of the time it would typically take for custom, government-funded developments. As a result, FLIR not only delivers the latest state-of-the-art technology faster to government/military customers, it also delivers:

1. - Cutting-edge innovations. With more than 50 years of research, technology development and manufacturing expertise, we're proud to have introduced many "world's firsts" as a result of a focus on operator needs and pushing the boundaries of our technology. See World's First Thermal Imaging Clamp Meter.
2. 
   - Higher Volumes, Lower Costs. Utilizing volumes generated by our commercial and industrial markets including automotive, security, and building inspection, we are able to gain economies of scale to lower costs and improve reliability for our government and military customers.
3. 
   - Global Support and Deployment. FLIR designs products for deployment in a global market to a broad customer base. We support customers through regional service centers that provide technical support proximate to where the products are being used.

The Farnborough International Airshow is one of the world's largest airshows, giving militaries from around the world the opportunity to learn more about innovative new products like the Star SAFIRE 380-HLDc. If you're attending the show this week, make sure to visit the FLIR chalet to learn more about FLIR's latest innovations. 

To learn more about the Star SAFIRE 380-HLDc, visit: www.flir.com/HLDc