10th Annual A&D Market Survey: Industry Responds to Ongoing Business Disruptions with Creative Solutions
Survey reveals growing interest in technology-enabled business solutions, including mature program management solutions and supply chain efficiencies, as A&D companies adjust to market realities.
- (1888PressRelease) July 27, 2011 - FALLS CHURCH, Va., July 26 -- The Aerospace & Defense (A&D) industry continues to undergo major business disruptions, and is responding with a mix of creative technology solutions.
This is what A&D senior executives reveal in CSC’s (NYSE: CSC) 2011 A&D Market Survey, the 10th annual Survey, conducted with Aviation Week & Space Technology magazine.
Key findings:
• Performance-based contracts are the new reality
• Global customers demand services be delivered locally, wherever they are needed
• Survival depends on integrating with partners to create efficiencies and access new markets
• Aggressive new competitors are entering the marketplace
• Intellectual property is under assault by sophisticated state-sponsored adversaries
“In contrast to last year’s findings, which showed that many big programs were undergoing large budget cuts, this year’s findings show that A&D companies are seeking technologies that will help them win new business in aftermarket and maintenance, repair and overhaul (MRO), as well as in emerging markets,” said Dave Howells, CSC’s vice president of Design Services.
Mature Program Management
The A&D business model has shifted from manufacturing big end products to also servicing and managing them throughout their lifecycle (aftermarket and MRO services).
To provide such service, A&D companies must keep track of lots of moving parts and maintenance records. This information needs to be synced with engineering and production and other partners across the value chain. This cannot be accomplished without mature program management tools.
Supply Chain Integration
The relative lack of large new aerospace programs is forcing the search for new opportunities in emerging markets. As new competitors enter the marketplace, competition for new business in emerging markets is fierce.
At the same time global supply chains are growing more complex, customers are demanding improved quality, lower costs and faster delivery. A&D companies and their partners must integrate their supply chains, so they may collaborate more closely and be more competitive.
Security
In the modern era of advanced persistent threats and sophisticated state-sponsored adversaries, most participants reveal that security is becoming extremely important.
As A&D companies integrate partners into their supply chain and expand their operations globally, there are increased opportunities for adversaries to strike. All A&D firms are taking aggressive steps to secure their systems and protect their mission-critical data and intellectual property.
Technology-Enabled Business Solutions Key to Growth
Though many Survey respondents view IT as an overhead challenge that must be managed carefully, they also view technology-enabled business solutions as the key to addressing the current business disruptions.
Respondents reveal that IT is a significant business differentiator in design-for-manufacture, product life cycle management and decision-making. It also offers a conduit for innovation and enables knowledge exploitation.
In a rapidly shifting marketplace, A&D executives recognize how technology-enabled business solutions will help them manage complex systems, work more closely with global partners to become more competitive, improve collaboration among internal departments to drive innovation and meet a wide range of growing challenges, such as regulatory compliance. IT solutions that deliver business-based outcomes are the key to supporting growth.
For complete results of the CSC 2011 A&D Market survey, conducted in the spring of 2011 with Aviation Week & Space Technology magazine, visit www.csc.com/A&DSurvey2011.
About CSC
CSC is a global leader in providing technology-enabled business solutions and services. Headquartered in Falls Church, Va., CSC has approximately 91,000 employees and reported revenue of $16.0 billion for the 12 months ended April 1, 2011. For more information, visit the company's website at www.csc.com.
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