Results of a Survey on Digital Adoption in Aerospace and Defense Point to an Industry-wide Imperative: Realize the Value of Digital Investments Faster—or Reconsider Those Investments
BOSTON—The digital revolution in aerospace and defense (A&D) has reached an inflection point, according to a recent study by The Boston Consulting Group (BCG). As A&D companies accelerate their investments in digital technologies, their leaders are questioning whether their investments are paying off. In many cases, they are not getting satisfactory answers. The study’s findings are detailed in a BCG report titled Is the Digital Revolution in Aerospace and Defense in Crisis?
The study drew on BCG’s second annual global survey of digital adoption in A&D. Participants included more than 200 senior A&D executives and managers. “The survey results point to a looming digital crisis,” says Greg Mallory, a BCG senior partner and a coauthor of the report. “Executives have invested a lot in digital and now want to see returns for that money. Yet, in terms of digital adoption, the industry is still immature compared with automotive and industrial manufacturers.”
The uncertainty surrounding returns may lead some A&D companies to pull back on their technology investments, while others may double down. “The results of our study indicate that a third approach is a more effective way to unlock value,” says Lacy Ketzner, a BCG principal and another coauthor of the report. “Companies should complement their direct investments in digital applications with simultaneous supporting investments in digital enablers.” These enablers include talent, leadership and culture, agile at scale, data strategy, data infrastructure, and digital ecosystems.
The imperative to avert a digital crisis is supported by several key findings:
“Taken together, the survey results suggest that being really smart about early proof points and targeted investments is the best way to capture more value sooner from digital investments,” says Mallory.
A copy of the report can be downloaded Is the Digital Revolution in Aerospace and Defense in Crisis?.
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