|
Getting your Trinity Audio player ready...
|
Unleashing a new era of efficiency and innovation, digital transformation in the aerospace and defense (A&D) industry marks a pivotal shift, empowering organizations to harness advanced technologies and adapt with unprecedented agility.
Technologies such as artificial intelligence (AI), machine learning (ML) and data analytics are at the forefront, driving this transformation by enabling real-time insights, predictive maintenance and streamlined operations. Within this context, SAP S/4HANA emerges as a key enabler, providing a robust ERP platform that supports data-driven decision-making, optimizes supply chain management and enhances collaboration across various functions.
Challenges in A&D
The A&D sector faces increasing pressures from geopolitical uncertainties, intricate supply chains, regulatory demands and evolving customer expectations. Legacy technology solutions can make these situations even more difficult to manage. Complex manufacturing processes, precision engineering and design requirements and the high cost of raw materials are all leading factors in increasing production costs that A&D companies must manage.
Supply chain issues, including parts shortages and delivery delays, are exacerbated by labor shortages and geopolitical tensions. At the same time, the pace of technological improvements is increasing, requiring A&D companies to continually innovate to stay competitive. And the heavily regulated A&D industry and its reporting requirements can have a large impact on operational efficiency if not managed using fit-for-purpose technology.
Benefits of SAP S/4HANA for A&D companies
At its core, SAP S/4HANA provides the complex A&D industry an integrated suite of solutions that streamline processes across various functions, enabling improved operational efficiency while offering strategic advantages to combat the challenges mentioned above. In our work helping A&D clients transform the way they work, we recommend SAP S/4HANA to address these concerns:
Real-time data and analytics
In any transformation, organizations need real-time data and analytics capabilities to quickly make informed decisions, enhance decision-making processes and build increased agility and responsiveness. This includes monitoring and analytics over shop-floor operations, insights into costs and margins of product portfolios, and visibility of data across the entire supply chain. The analytics provided by S/4HANA help forecast future trends and scenarios, allowing companies to strategize proactively and with greater confidence.
Supply chain optimization
Supply chain issues will always be top of mind for A&D industry leaders. S/4HANA’s cloud-based demand planning enables quicker reactions to rapidly changing market demands, enhancing a company’s ability to quickly adjust production and distribution strategies. We have seen clients realize improved collaboration with global partners for inventory management and sensitive materials through integrated tools that support synchronized planning and logistics across different regions. Predictive analytics capabilities further enhance demand forecasting and inventory management, reducing overstock and shortages.
Innovation and growth
Once implemented, SAP S/4HANA fosters innovation and growth within organizations by leveraging embedded and advanced tools including AI, ML and IoT. The A&D sector focus includes product lifecycle management (PLM) and SAP Digital Manufacturing, tools that streamline and digitize the engineering process for product design and development while supporting an efficient handover to manufacturing. This digital thread provides the capability for material and discrete component traceability throughout the process, to assembly of the finished product.
Protiviti understands government procurement can be a challenging area for A&D companies, which is why we suggest SAP contract management software solutions to allow customers to manage procurement processes more effectively and proactively. Specifically, SAP’s partnership with Icertis enables customers to integrate advanced contract management capabilities with core business processes, delivering faster negotiations, greater compliance and AI-powered business insights and automation.
Compliance and risk management
A&D organizations must adhere to stringent industry security requirements and standards which are critical in this highly regulated sector.
The S/4HANA core system, along with tools such as SAP GRC, can manage risk frameworks and automate controls to enable compliance with key industry regulations such as CMMC and ITAR. The embedded and advanced risk management tools enable companies to proactively identify, assess and mitigate threats. This comprehensive approach not only minimizes the likelihood of regulatory breaches and their associated costs but also enables safe and reliable operations.
From an infrastructure perspective, SAP’s National Security Services (SAP NS2) allows customers operating in the highly regulated A&D industry to protect their mission-critical workloads and control their most sensitive data while benefiting from the agility and efficiency of cloud technologies.
How Protiviti helps clients plan for a successful SAP S/4HANA implementation
Protiviti’s seasoned SAP experts know that an SAP S/4HANA transformation requires a structured, strategic approach to ensure a successful transition. We support our clients by focusing in the following areas to plan for and de-risk the S/4HANA journey:
- Pre-planning: Investing time and resources in Phase 0 / Solution Design is crucial for the successful implementation of SAP S/4HANA as it lays a solid foundation for the entire project.
- Detailed data strategy: Performing an early data assessment reduces risk, improves future testing and sets up a stable system for go-live.
- Early stakeholder engagement: Engaging key stakeholders from various departments early in the process is vital. Their input can provide valuable insights into specific needs and requirements, fostering buy-in and support for the implementation.
- Change management / training: Preparing employees for new processes, providing training and addressing any resistance to change helps to ensure a more successful adoption of the new system.
Implementation preparation typically includes comprehensive planning, risk evaluation and the establishment of governance frameworks that effectively steer the implementation process.
Key takeaways
Digital transformation in the A&D industry is not just a trend but a crucial evolution that addresses the complex challenges and dynamic demands of the modern world. SAP S/4HANA plays a pivotal role in reshaping A&D companies to be more agile, responsive and prepared for future challenges. Leaders should be encouraged to embrace and lead this transformative journey, leveraging the powerful capabilities of SAP S/4HANA to steer their organizations towards sustained growth in the face of a challenging landscape.
To learn more about our SAP consulting services, contact us.
