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The Transformative Power of Digitalization in the Aerospace Industry

The idea of digitalization in the aviation sector is not new. Years ago, aviation firms began their digital transformation initiatives. Due to the pandemic’s devastating effects on the sector, several of these plans had to be altered. Despite this setback, businesses are nonetheless moving forward with their digitalization initiatives, frequently at a faster rate than they were before the pandemic.

The aviation sector’s emphasis on digitalization is fostering innovation and strategic choice-making. To test and validate aircraft designs, aerospace manufacturers are experimenting with digital twins, attempting to create zero-emission aircrafts, and leveraging smart manufacturing technologies. The improvement of aircraft design and quality is ensured by the expansion of digitalization in the aviation sector.

The aerospace sector is expanding exponentially. In fact, up to 38,000 aircraft are expected to be in operation by 2028, a significant increase from the 26,000 currently in use. As a result, digitalization is boosting aircraft systems’ global dependability and effectiveness.

Unlocking the value

Digital has the potential to provide $20 billion in additional yearly EBITDA for the worldwide A&D industry (an improvement of about 10% based on the $200 billion global sector EBITDA of 2018). Expanding sales and cutting costs throughout the value stream, which includes engineering, supply chain and procurement, manufacturing, aftermarket services, and support operations, will generate this value from both OEMs and suppliers.

Exhibit 1

Global A&D might realize potential benefit from digitization worth more than $20 billion.

Value Creation by Digital in A&D

Eight technology drivers are transforming A&D, as they do in other sectors.

However, a business needs do more than simply adopt new technology in order to become a digital enterprise. It also needs to have the organizational structure, relationships, tools, and working methods required for its execution. The organization must make sure that its digital investments address client needs and important business goals if it wants to succeed.

Exhibit 2

A&D Operations are Being Reshaped by Digital Technologies

Benefits of digitization in Aerospace Industry

ü Changing customer interaction design: Global customer expectations are changing as a result of digitalization. Due to its speed and size, businesses must review and change the customer experience in order to adapt. New products, apps, and technologies must be used to improve customer interactions.

ü Systems and procedures used in business: To consolidate and streamline operations, businesses are modernizing their supplier contracting structures, back-end platforms, and internal processes. Such adjustments frequently play a significant part in the accomplishment of a company’s strategic goals, which increasingly involve preserving corporate agility for prompt adaptation to changes in the marketplace and establishing new revenue streams, in addition to producing operating efficiency benefits.

ü Nurturing innovation: To stay ahead of the curve and be well prepared to foresee impending developments, many businesses in the aviation sector are investing in specialist departments or group companies or entering into partnering agreements. This can involve working with innovative businesses and consultants, as well as developing new innovation “labs” and “hubs” that unite several business divisions.

Challenges of digitization in Aerospace Industry

ü Data Silos – Airlines must overcome a problem that is as old as aviation itself: operations, maintenance, and data ownership—if they are to create an integrated maintenance ecosystem. Therefore, it appears that one of the key obstacles preventing operators from making a full investment in digital projects today is their willingness and ability to sync data across diverse sources, formats, and departments.

ü Computer Readiness – In addition, the collection, processing, and use of data from increasingly complex aircraft systems is creating turbulence for maintenance and engineering operations. Operators and MRO suppliers are currently having difficulty adapting both new and old tools and services to meet the need of the volumes and wealth of data they produce. It seems that the pace of technical advancement is accelerating and quickly outpacing the capacity of the sector to stay up.

ü Workforce Transformation – For the aircraft MRO industry, the change of the workforce is and will remain a challenge. As aircraft maintenance becomes more digitalized, organizations must have access to cutting-edge technologies and possess the necessary expertise to properly apply analytical tools. Frequently, it is not the case. Human capital that is sufficiently knowledgeable and experienced in using digital tools has not received much investment. Because of this, most aviation organizations lack the skills to undertake the pilot programs necessary to adopt new technologies or to apply machine learning, deep learning, or artificial intelligence (AI) to their information. It is vital to train current personnel to take on additional digital duties in addition to educating the next generation.

Recent Technology Trends in Aerospace

ü A collaborative agreement for the creation of cutting-edge quantum, AI, and encryption technologies for the aerospace, defense, and intelligence sectors has been inked by IBM and Raytheon Technologies. Customers in the aerospace and government sectors may develop systems more quickly, secure communications networks, and enhance decision-making processes by combining AI and quantum technology.

ü A contract for the creation of a new pilot-assist system utilizing computer vision, autonomous command, and control technologies for waterjets has been inked by Sea Machines Robotics and Hamilton Jet. Sea Machines’ autonomy platform and Hamilton Jet’s propulsion and vessel controls will be integrated by the firms to create a helm-based system that minimizes manual labor, automates navigation control, boosts safety, and frees the crew to concentrate on more challenging and crucial tasks.

ü NATO has put into practice its Artificial Intelligence Strategy, which specifies six fundamental guidelines for the ethical application of AI in defense: legitimacy, accountability, responsibility, explainability, governability, and bias mitigation. The strategy intends to establish a comparable policy foundation because AI will have an impact on NATO’s key responsibilities of collective defense, crisis management, and cooperative security.

ü Project Bluebird, a collaboration between The Alan Turing Institute and NATS, aims to create the first artificial intelligence (AI) system capable of interacting with air traffic controllers and regulating a specific area of airspace in real-world tests.

ü The Operational Experiment, which pitted the AI programs Startle and Sycoiea against a threat from supersonic missiles, was conducted as part of the Formidable Shield Exercise, marking the first time the Royal Navy had utilized AI at sea. Artificial intelligence is intended to enhance early danger identification, hasten engagement times, and give Royal Navy Commanders a quick hazard assessment.

Conclusion

A&D organizations are becoming more aware of the need to change at all points throughout the value chain. With the development of digital technology, new avenues for innovation, new sources of income, and market share gains have opened up.

A&D corporations face a variety of problems due to the sharp increase in demand for air travel, an aging workforce, and ongoing environmental concerns. New business models and business processes that take these issues into account will surely result in better and safer products as well as better passenger experiences.

Author: Sonu Kumar Sah

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