Digital continuity helps A&D companies to ramp up quickly, driving many business benefits. 77% of A&D executives think that enhancing digital continuity will speed up the process, and nearly 90% of them agree that it is crucial to their companies’ ramping-up strategy.
Digital continuity, or the smooth integration of data and information across all stages of the product lifecycle and linked to the external partner ecosystem, is emerging as a critical enabler of business transformation in the aerospace and defense (A&D) sector, according to the Capgemini Research Institute’s most recent report, “The strategic edge: How digital continuity drives business outcomes in aerospace and defense,” which was published lately.
According to a survey of A&D leaders, more than 80% see digital continuity as a means of achieving a competitive edge and a catalyst for corporate development.
To ramp up production, speed up development cycles, lower operating costs, and maintain agility in the face of global demands, A&D companies on average devoted 2.1% of their yearly revenue to these activities in 2024.
In the context of rising costs, supply chain instability, and geopolitical movement, investments in digital continuity are expected to increase to 3.4% by 2028. 
Digital continuity helps A&D companies to ramp up quickly, driving many business benefits
77% of A&D executives think that enhancing digital continuity will speed up the process, and nearly 90% of them agree that it is crucial to their companies’ ramping-up strategy.
Approximately one-third (34%) of A&D companies have already cut expenses, with an average cost decrease of 13% due to digital continuity.
Digital continuity is a high priority for investment, as evidenced by the fact that 18% of A&D organizations have expedited product development cycle times and 30% have already experienced shorter time to market.
Defense organizations are better prepared to ramp up production
Just over a third of civil aerospace organizations are ready to ramp up production, compared to 44% of defense organizations, the poll found.
Geopolitical unpredictability and investments in infrastructure and technology, such as a more adaptable manufacturing execution system (MES) and a more robust supply chain, might influence defense enterprises’ preparedness to increase output.
For instance, just 45% of civil aerospace firms concur that their supply chain can be adjusted to rapidly shifting customer demands, compared to 65% of defense organizations.
According to the survey, over half (56%) of military businesses acknowledge the necessity of developing autonomous systems, and over eight out of ten (86%) acknowledge the need to use AI and generative AI in engineering and product development.
However, only 35% of defense organizations are ready to create autonomous systems, and less than half (44%) are ready to integrate AI.
The paper indicates that for A&D companies to succeed, they must constantly adapt their processes, technology, security measures, and compliance regulations.
Leadership Comments
“Digital continuity is a critical imperative for aerospace and defense organizations to thrive in today’s challenging and uncertain geopolitical environment. If it is embraced as a way of working, it will help organizations increase productivity and free up key resources from the waste created by disconnected systems and data, said Lee Annecchino, Global Industry Lead, Aerospace and Defense at Capgemini.”
“Ultimately, it enables operational excellence, reduces product development cycle times and fosters a collaborative culture, setting A&D players up for long-term success. Business leaders clearly recognize this and as a result have been ramping up their investments in these initiatives. In order to leverage the full potential, A&D organizations must focus on building interoperability across systems, enabling robust data management and adopting a comprehensive change management strategy, added said Lee Annecchino.”
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