How digital transformation can unleash growth
Aerospace and defense companies are buffeted by disruption. Demand for passenger aircraft is forecast to double within two decades. Defense demand is surging. New competitors are entering the market. And new STEM (science, technology, engineering and mathematics) talent is in short supply.
Digital transformation is essential. The industry recognizes this. But to date, only a few companies have successfully harnessed digital to pivot decisively from today’s core operations to new approaches that drive growth.
More and more companies are embracing digital technologies like AI, analytics and automation. But only the top 19 percent are achieving significant returns on their digital investments.
These champions are successfully scaling more than 50 percent of their digital proofs of concept (figure 1). For the following pack, there’s real room for improvement.
There are some big rewards on offer. Eighty-one percent of industry executives agree that the integration of customization and real-time delivery is the next big wave of competitive advantage.
Focus on three imperatives
So how can aerospace and defense companies accelerate their own digital transformations to drive new growth? Our three-point approach will help companies adapt to disruption and embrace a digitally driven future: