Reprogramming aerospace and defense: Bolstering the business ecosystem is key to sustainable growth

Over several decades, industry domination and the desire to control the industry have emerged as prevailing objectives among original equipment providers (OEPs) and suppliers across the Aerospace and Defense (A&D) industry.

More recently, the need for tighter integration and collaboration among industry participants has created a more networked and complex industry structure where the success of individual companies is increasingly intertwined with the performance and capabilities of others inside and outside the A&D business ecosystem.

This inherent conflict between the historical pursuit of industry dominance and the economic necessity of increased collaboration is steadily decreasing the effectiveness of traditional business models and jeopardizing the health of the A&D ecosystem.

To foster growth over the long term, industry players need to adjust their mindsets and their strategies, taking into consideration their role in the industry ecosystem and emerging business models that are more conducive to innovation and rapid change.

A recent study conducted by the IBM Institute for Business Value highlights the key challenges faced by OEPs and suppliers, assesses the current health of the A&D ecosystem and offers concrete actions that can help OEPs and suppliers "reprogram," setting a course for profitable, sustainable growth.

To read the complete study, download the PDF file at the top of this page.