How Digital Is Transforming Aerospace and Defense

To remain competitive, A&D companies must harness the full power of digital.

Digital and analytics are profoundly changing the A&D industry. Not only is the sheer volume of data growing exponentially but so are customer expectations for the use of both big data and analytics. The defense customer is increasingly expecting digital and advanced analytical solutions—and is looking to Silicon Valley for innovation.

Although A&D players are beginning to invest in digital, few have built a robust digital and analytics portfolio. Fast-moving companies have the chance to win with new digital offerings and innovations.

A&D companies that want to start the digital journey must first engage in a structured thought process to formulate a successful strategy. BCG has designed a systematic Thought Map to guide A&D companies seeking to build their digital capabilities.

The digital journey is challenging, and A&D players must be agile in order to manage a changing landscape. With new suppliers emerging, traditional players may need to catch up. The so-called Big 5 contractors have lost significant R&D market share, and venture capitalists invested more in space start-ups in 2016 than in the previous 15 years combined.

Leaders in big data at A&D firms need to mange a wide range of diverse elements in order to steer a team through a successful digital journey.

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Aerospace & Defense