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Digital thread connects authoritative design, manufacturing and operational data across the product lifecycle and has moved from concept to necessity in aerospace and defense (A&D). While organizations are seeing benefits, those gains often remain localized and difficult to scale.
Ernst & Young LLP (EY US) and the Aerospace Industries Association (AIA) examined how digital thread is being applied across the A&D industry and why enterprise impact continues to lag. Drawing on survey data and executive interviews, the findings highlight six key realities shaping outcomes today, while also identifying five leadership actions needed to scale digital thread.
Digital thread delivers value — so what’s stopping scale?
1. Value is evident, but unevenly realized
A four-panel visual presents a large numeral one with the headline “Value is evident, but unevenly realized,” alongside explanatory text stating that early adopters are realizing real benefits while others see uneven results driven by fragmented execution and inconsistent enterprise adoption; supporting panels note that digital thread is moving from concept to competitive necessity in A&D with tangible benefits across quality, traceability and decision-making, that enterprise value increasingly depends on maturity and disciplined execution, and that sixty-one percent saw improved data-driven decision-making.
2. Pilots rarely carry through to enterprise scale
A four-panel layout shows a large numeral two with the headline “Pilots rarely carry through to enterprise scale,” paired with text explaining that pilots validate the approach but disconnected initiatives prevent progress from compounding into sustained enterprise execution; supporting panels state that digital thread pilots continue to demonstrate localized value, that enterprise impact ultimately hinges on integration across functions, systems and the full product lifecycle, and that seventy-two percent report digital thread implementation while only fourteen percent report full enterprise implementation.
3. Leadership discipline ultimately determines outcomes
A four-panel visual features a large numeral three with the headline “Leadership discipline ultimately determines outcomes,” accompanied by text explaining that without defined accountability, activity accelerates while direction fades, limiting enterprise-level impact; additional panels state that digital transformation is broadly supported across A&D, that sustained enterprise outcomes require clear ownership, prioritization and leadership discipline, and that sixty-eight percent say leadership champions digital transformation while only forty-five percent see clear commitment to digital thread.
4. True adoption requires new ways of working
A four-panel design displays a large numeral four with the headline “True adoption requires new ways of working,” with adjacent text explaining that adoption stalls when organizations attempt to layer digital thread onto existing structures rather than reshaping how work is done; supporting panels reference evolving workflows, decision rights and operating models, note that digital thread capabilities are advancing across tools and technologies, that enterprise adoption is achieved through change in operating models, and that fifty-four percent cite cultural shift at the people and organizational structure level as a key digital thread challenge.
5. Data readiness is the foundation for value
A four-panel visual shows a large numeral five with the headline “Data readiness is the foundation for value,” alongside text stating that enterprise data foundations determine whether integration accelerates execution or becomes a persistent source of friction; supporting panels highlight standardized, governed and trusted enterprise data, note that digital thread and AI ambitions continue to expand as integration progresses, that scalable value is unlocked by data readiness, and that twenty-nine percent say enterprise data is standardized, governed and accessible while seventy-one percent expect the greatest future value from predictive analytics and AI-enabled insights.
6. ROI validates enterprise impact
A four-panel layout presents a large numeral six with the headline “ROI validates enterprise impact,” with accompanying text explaining that when end-to-end execution improves, financial and operational outcomes clearly signal that digital thread has scaled; additional panels reference measurable improvements and sustained return on investment, state that digital thread delivers promise through pilots and early execution as efforts reach scale, and note that forty-two percent cite end-to-end lifecycle traceability as the highest-ROI digital thread use case.
Uncover the five leadership actions needed to scale digital thread.
We extend our sincere appreciation to Tim White, PhD (AIA), Carl March, Ryan Schilling, Apoorv Maheshwari, Erica Peacock, Samarth Jain and Brittney Honeycutt of EY for their contributions to the research.
