Future proofing for aerospace and defense
Learn how SAP industry solutions open the door to a new level of co-innovation with customers and partners, enabling best practices, innovations, and new business processes. This helps our customers propose more-intelligent product recommendations, support agile logistics networks, and take the next step toward becoming intelligent enterprises. Download the DocumentFuture proofing for
aerospace and defense
Innovating for a sustainable future
and simplifying complexity today
January 2025
aerospace and defense
Innovating for a sustainable future
and simplifying complexity today
January 2025
2 | 17
Table
of
contents
3 Paving the way for sustainable
growth through innovation
4 Run intelligently with strategies
for aerospace and defense
(A&D) companies
5 Help ensure customer centricity
7 Establish digital business
networks
9 Drive agile innovation and
manufacturing
11 Transform sustainability
13 Introduce new business models
15 SAP portfolio and innovations
16 Driving business transformation
together
17 Comprehensive and innovative
SAP ecosystem and partners
Table
of
contents
3 Paving the way for sustainable
growth through innovation
4 Run intelligently with strategies
for aerospace and defense
(A&D) companies
5 Help ensure customer centricity
7 Establish digital business
networks
9 Drive agile innovation and
manufacturing
11 Transform sustainability
13 Introduce new business models
15 SAP portfolio and innovations
16 Driving business transformation
together
17 Comprehensive and innovative
SAP ecosystem and partners
3 | 17
Paving the way for sustainable growth
through innovation
Aerospace manufacturers are navigating a dynamic landscape filled with both opportunities and chal-
lenges. As the commercial aviation sector shows signs of recovery, with passenger traffic expected to
reach prepandemic levels in 2024, the demand for new aircraft is on the rise. However, the industry is still
contending with complex supply chains and material shortages, impacting manufacturing plans and costs.
Manufacturers are leveraging technological advancements such as AI, machine learning, and digital-twin
technologies to achieve faster and more cost-effective production. Despite these innovations, a significant
shortage of skilled professionals presents additional operational hurdles, making the path to growth both
promising and complex. The main trends being faced by the industry are:
• Supply chain constraints and supplier
resilience: Concerns over the resilience of
defense and commercial supply chains are
driving legislation and encouraging suppliers
to reshore critical manufacturing and widen
supplier networks. Collectively, supply chain
modernization and digitalization represent
some of the biggest opportunities for the
industry to create value through industry
networks.
• Talent shortage: To combat this and an aging
workforce, efforts are underway to upskill the
workforce and digitalize operations.
• Cybersecurity: Security is vital for the industry
and is among society’s biggest challenges.
Therefore, the ability to secure and protect supply
chains, intellectual property, and technical
infrastructure in response to expanding threats
will be a critical business imperative.
• Digitalization: Companies that weave together
formerly siloed processes, intelligent technologies,
and real-world data from customers, connected
devices, partners, and the environment will be
able to take advantage of artificial intelligence
(AI) and other technologies to help solve business
challenges and drive results. These technologies
are set to revolutionize manufacturing, delivery,
operations, and commercialization methods such
as as-service offerings.
• Sustainability: A focus on energy efficiency
has intensified, with an emphasis on circular
manufacturing, energy transition (such as
electrification of fleets), measuring and reducing
carbon footprints, and integrating renewable
energy solutions.
• New business models: Traditional business
models are being disrupted as service and
outcome-based models are creating new
markets and revenue streams.
Technology driving innovation
Aerospace and defense companies are harnessing the growing
potential of AI capabilities with open data architectures to optimize
their business processes and unlock valuable insights. From predictive
analytics to intelligent insights, AI for business is automating these
sophisticated industry processes, providing insights to help
companies stay ahead of the competition and maximize their profits.
Paving the way for sustainable growth
through innovation
Aerospace manufacturers are navigating a dynamic landscape filled with both opportunities and chal-
lenges. As the commercial aviation sector shows signs of recovery, with passenger traffic expected to
reach prepandemic levels in 2024, the demand for new aircraft is on the rise. However, the industry is still
contending with complex supply chains and material shortages, impacting manufacturing plans and costs.
Manufacturers are leveraging technological advancements such as AI, machine learning, and digital-twin
technologies to achieve faster and more cost-effective production. Despite these innovations, a significant
shortage of skilled professionals presents additional operational hurdles, making the path to growth both
promising and complex. The main trends being faced by the industry are:
• Supply chain constraints and supplier
resilience: Concerns over the resilience of
defense and commercial supply chains are
driving legislation and encouraging suppliers
to reshore critical manufacturing and widen
supplier networks. Collectively, supply chain
modernization and digitalization represent
some of the biggest opportunities for the
industry to create value through industry
networks.
• Talent shortage: To combat this and an aging
workforce, efforts are underway to upskill the
workforce and digitalize operations.
• Cybersecurity: Security is vital for the industry
and is among society’s biggest challenges.
Therefore, the ability to secure and protect supply
chains, intellectual property, and technical
infrastructure in response to expanding threats
will be a critical business imperative.
• Digitalization: Companies that weave together
formerly siloed processes, intelligent technologies,
and real-world data from customers, connected
devices, partners, and the environment will be
able to take advantage of artificial intelligence
(AI) and other technologies to help solve business
challenges and drive results. These technologies
are set to revolutionize manufacturing, delivery,
operations, and commercialization methods such
as as-service offerings.
• Sustainability: A focus on energy efficiency
has intensified, with an emphasis on circular
manufacturing, energy transition (such as
electrification of fleets), measuring and reducing
carbon footprints, and integrating renewable
energy solutions.
• New business models: Traditional business
models are being disrupted as service and
outcome-based models are creating new
markets and revenue streams.
Technology driving innovation
Aerospace and defense companies are harnessing the growing
potential of AI capabilities with open data architectures to optimize
their business processes and unlock valuable insights. From predictive
analytics to intelligent insights, AI for business is automating these
sophisticated industry processes, providing insights to help
companies stay ahead of the competition and maximize their profits.