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In many aerospace and defense companies, bidding and estimating is part art and part science – and one of the powerful series of strategies for driving profitable revenue growth. Add in how complex and different these workflows are across companies and the challenge of attaining greater accuracy and efficiency becomes clear.
We define quality as a product or service that meets and exceeds customers’ expectations on a consistent basis. Accomplishing this in aerospace and defense — an industry known for its complexity and depth of compliance and quality management requirements — is an ongoing challenge.
In speaking with industrial, high tech and commercial aerospace manufacturers, a common theme emerges: None of them have the luxury of waiting on reports created over days or weeks because ERP systems are out of step with strategic priorities. Their customers are demanding more responsiveness, more accuracy, and greater speed of quoting and order completion than ever before.
Even though cloud ERP has been able to gain traction across most industries and company sizes, manufacturers have been notoriously slow to come on board. Manufacturers were first to utilize ERP itself, but have been somewhat reluctant to move away from what has worked for them in the past. I experienced this firsthand last year when I presented some of my research on cloud ERP to a group of manufacturing-based IT executives.
Staying competitive is often the No. 1 concern for today’s aerospace and defense (A&D) manufacturers. Key components to these efforts include successfully triangulating cost, schedule, security, scope and reliability constraints, all in order to improve supplier orchestration and time to market. But where to start? Many A&D manufacturers agree that the first step in managing these many constraints is getting suppliers involved early in projects.
What do you say when an ERP solution is implemented in just a third of the time expected to go live? “Awesome!” “Unbelievable!” “Wow!” Or like the CFO, you might say it “exceeded my expectations” and that you’re “extremely satisfied.”
It’s time for more manufacturers to question what being demand-driven really means by looking at their businesses the way their customers do. Having accurate forecasting processes, a finely-tuned sales and operations process (S&OP) or being great at new product development and introductions isn’t enough. These are all great attributes, but they must be synchronized into a cohesive strategy if a manufacturer is going to become demand-driven.
There’s no question that the cloud presents a disruptive technology that inevitably leads to rethinking – and often restructuring – the objectives of internal IT departments. An internal IT department – once considered critical to the success of the business enterprise – has, in many cases, become obsolete.
As aerospace and defense (A&D) manufacturers balance agility and speed with the need for ever-increasing vigilance and security, they are also facing the daunting task of keeping IT systems aligned with their changing business strategies. This conflict of speed versus security is especially challenging in the area of cloud computing.
The paradox of how much to spend on national defense and security versus social programs is a challenge all nations are facing today. Emerging economies are projected to be the most adept at managing this paradox. However, given their relatively higher levels of gross domestic product (GDP) growth versus their slower-growth (and often larger) counterparts — and once you consider that many of these countries have aerospace programs and initiatives planned or already in place — the paradox becomes even more challenging.