Aerospace and Defense Companies That Pursue the Widest Variety of Business Goals Capture the Greatest Value from Digital Investments, a BCG Study Finds
PARIS—For aerospace and defense (A&D) companies, broad adoption of digital pays off, according to a study by The Boston Consulting Group (BCG). Nearly all A&D companies say their digital investments have positive results. However, the most successful companies invest early in the development of products and broadly across functional areas. The study’s findings are detailed in the BCG report, titled Becoming a Digital Frontrunner in Aerospace and Defense.
The study focused on a global survey of senior A&D executives and managers. It assessed the extent and impact of digitization and identified the main challenges. The analysis found that companies fall into two categories—frontrunners and followers—on the basis of their self-reported success in using digital to improve operations, increase revenues, and drive innovation.
“How much a company invests in digital generally does not influence whether it is a digital frontrunner or a digital follower,” says Greg Mallory, a BCG senior partner and a coauthor of the report. “Rather, the frontrunners in the race to extract value from digital are those A&D companies that define an enterprise-wide digital vision to guide their investment decisions across functions and that establish the right supporting structures, roles, and culture.”
These are among the study’s key findings:
Whether an A&D company is a frontrunner trying to extend its lead or a follower seeking to catch up, a program for digital adoption should be guided by imperatives that include a clear top-down vision, mutually reinforcing digital initiatives across functions, and agile teams that lead initiatives and accelerate innovation. To help companies get started and move quickly, BCG has developed a comprehensive health check that uncovers key gaps and opportunities.
“Because the digital race has no finish line, even today's frontrunners may be tomorrow's followers,” says Mallory. “To stay ahead as competitors catch up, companies must ensure that their digital strategies continuously evolve.”
A copy of the report can be downloaded here.
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