Skip to Main Content
Access your saved content
The pace of change facing Aerospace and Defense companies in their dealings with governments will continue to accelerate, bringing with it a new shift to services.
When the US Department of Defense released its latest Quadrennial Defense Review in early 2010, the document confirmed what most executives in the Aerospace and Defense (A&D) industry already knew: that the pace of change facing A&D companies in their dealings with governments will continue to accelerate. This trend is also evident in other government reviews of defense policy and spending across the world, including the Strategic Defence Review currently under way in the UK, and parallel reviews in countries such as Australia and France.
All these reviews underline the fact that cost and operational pressure is creating far more complex decisions, and the role played by the A&D original equipment manufacturers (OEMs) in the decision making process is expected to be broader and deeper. True, government defense agencies still want robust, effective and innovative platforms, but they are also increasingly looking to their A&D contractors to help them maintain program readiness, achieve specific mission-based outcomes and reduce costs.
As A&D companies navigate their way through the transformation to a business model based on services, what are some of the most important issues they will need to tackle? In Accenture’s view, there are seven key issues that could determine the success or failure of the transition: strategy; service offering development; business case development and financial modeling; leadership; contract management; capability; and management of external relationships, including suppliers, partners and post-merger integration.
Through our unique portfolio of solutions and assets, Accenture has the established capability to help A&D companies tackle the spectrum of issues arising in the shift to services.
We can help with issues including:
A&D companies are moving into a new era—one that brings new challenges and opportunities. To achieve high performance, they will need to shift their businesses from pure manufacturing to a blend of manufacturing and services. This means moving away from a cost-center model to a profit-and-loss model. It also means realigning their people, their products and services, and the processes involved in bringing those products and services to their customers.
January 31, 2011
Skip Footer Links