The future state
Smart customers will likely drive the A&D business of the future. As customers become more and more technologically sound, businesses need to look beyond traditional products and service offerings.
Availability of in-flight data, real-time weather information and battlefield information will enable A&D players to offer a wide range of value-added and on-demand services to both commercial and defense customers.
Smart factories of the future A&D businesses would be supported by digitalized demand sensing, smart procurement and smart logistics. On the digital shop floor, digital technologies such as the Internet of Things, 3D printing, artificial intelligence, sensors and robotics will take a central stage.
On the other hand, the workforce of the future would not only need to strike a balance between technical capabilities and engineering knowledge, but it would also be imperative to constantly upgrade the skills of the workforce to excel in the era of continuous technological evolution. Digitalization will also be at the core of innovation and development programs, leading to smart products and services to support the future of warfare.
The smart A&D businesses would be supported by the suppliers of the future, who would be equipped with real-time information sharing platforms so as to ensure an uninterrupted supply for critical parts in real time and with minimal waste.
The relationship between OEMs and their suppliers would go beyond buyer-supplier relationship to “being a part of the business,” giving rise to a new range of risk-and-revenue-sharing business models.