Aerospace and defense companies are changing from product-focused original equipment manufacturers to service-oriented original equipment providers, supplying not assets, but asset availability. This strategic move needs a real transformation that affects how these companies think, design, develop, produce and sell. In order to reshape and reposition themselves successfully into a service-orientated way of working, aerospace and defense companies will need to:
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Transform from part makers into subassembly and systems integrators.
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Manage outcomes-based arrangements such as availability and performance-based logistics contracts.
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Assume financial risk and manage programs to minimize risk and drive profitability.
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Design and build programs with configuration upgrades in mind.
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Develop a set of capabilities to manage assets for the duration of their life cycles.
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Adapt quickly to changes such as regulation and customer operating tempo.
The emphasis on customer service in both commercial and military markets demands high performance in not only manufacturing but also in procurement, partner management, product data management, design for serviceability, maintenance repair and overhaul (MRO), inventory optimization and analytics and overall supply chain processes.