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Major Trends in Aerospace & Defense Industry

A Brewing Perfect Storm

  • Declining Budgets.  The recession and slow recovery continue to put pressures on budgets in the U.S. as well as other countries.

  • Political Gridlock.  With the divided government and political and policy gridlock in Washington, the chances of passing forward looking, investment oriented policies and budgets are minimal. In this vacuum, the probability of arbitrary decision making like sequestration becoming a norm are high.
  • Fiscal deficits.  Large projected budget deficits will continue to pressure lawmakers and policy makers alike into short-term management of the country’s finances, and thus further preventing from critical long-term investments.

Changing market conditions

  • Customers are demanding solutions and performance not just products. Militaries, governments and commercial customers are demanding very high operational readiness rather than just an aircraft or a tank, necessitating capabilities to provide solutions across the life-cycle of the product. 

  • Hyper global competition.  Rapidly developing capabilities in China, India and other emerging countries are putting tremendous pressures on the traditional countries and companies to stay ahead of the curve.

  • Cost pressures. Competitive challenges as well as declining budgets are making bids much more cost sensitive, putting increasing pressures to deliver superior performance at competitive costs.

  • Declining shelf life of technological superiority.  With rapid dissemination of information, quicker replication of innovations and greater technological capabilities in other countries, the window of technological superiority is shrinking, requiring better and faster product development and launch to maintain market share.  

Need for Innovation and Collaboration

Aerospace & Defense industry needs to collaborate and develop innovative solutions to the common challenges to maintain and grow its share of the global market.

  • Aerospace & Defense companies need to go well beyond lobbying and self-advocacy and be far more collaborative with each other, their customers and suppliers to face the common challenges driven by the global competition and changing business environment.

  • Develop innovative solutions to enhance efficiency, effectiveness and overall competitiveness of the individual companies and the industry as a whole.

Our Commitment

Applying our belief that Innovation is the creativity of a diverse group of knowledgeable people (collective genius), applied to create new solutions to specific issues or opportunities that deliver tangible and superior value; we are committed to help design, develop and execute innovative and collaborative solutions for the betterment of an individual or a group of firms or the entire Aerospace & Defense Industry.

Center for Aerospace & Defense Innovation® (CADI)Mission

Help develop and execute collaborative and innovative solutions to the major challenges and opportunities faced by individual companies and the industry as a whole.

Key Attributes: 

  • Collaborative Approach.  Develop collaborative solutions to the Common Challenges to enhance efficiency, effectiveness and competitiveness of individual companies and the industry as a whole

  • Execution Orientation.  Explicit focus on execution of the solutions for performance enhancement of the participating companies
  • Faster Results

    • Focus on solution creation vs spending time and energy on researching issues

    • Building practical and executable solutions with the creativity, knowledge and expertise on hand rather than delaying and extending timelines in search of perfection 

    • Acceleration and time compression in solution creation and execution to deliver value faster rather than traditional slow and sequential approaches

  • Innovative Solutions

    • Using valuelab®  leverage skills, experience and knowledge, the collective genius, of the best and the brightest of the participating companies to create leading-edge solutions - well beyond the current best practices

  • Consensus Builder

    • Our collaborative approach where everyone counts and contributes, builds tremendous buy-in to the solutions by a cross-section of participants, thereby, accelerating results

Center for Aerospace & Defense Innovation® (CADI) Collaborative Models

  • Internal Collaboration within a Customer – e.g., Build commonality of processes, systems, procedures, policies etc. among multiple procurement entities within a department such as the DOD, to streamline interfaces with contractors.  This would help enhance the efficiency and effectiveness of the procurement process for the Department while reducing time and cost for the vendors, thereby making more productive returns on taxpayers money.  

  • Collaboration between Customer and Contractors - e.g., Collaborative solutions to build commonality to improve efficiency, cost and quality of procurement, by streamlining design, testing, delivery, maintenance etc.  processes between a customer such as DOD or NASA and the major contractors.​
  • Collaboration among Contractors  e.g., Collaboration to enhance efficiency, reduce cost and time to market by developing common  standards, processes, interfaces, technologies, information systems, policies, procedures etc. for their suppliers.

  • Collaboration between a Contractor and its Major Suppliers e.g., Collaborative solutions for competitive advantage by better alignment and leveraging of innovation, technology prowess, human capital and other capabilities of the supply chain partners. 

  • Collaboration among Suppliers - e.g., Collaboration among lower tier suppliers such as T1, T2, T3 etc. to create new and cost efficient products or services that are higher value adding by combining their competencies and capabilities.  

  • Collaboration among Customers - e.g., Collaborative sharing and solution creation among customers (such as DOD, NASA and other procuring agencies) to streamline interfaces and processes for greater efficiency for both the customers and contractors.

Center for Aerospace & Defense Innovation®(CADI)

Capabilities & Solutions