The Future of Aerospace: Embracing Digital Transformation and Emerging Technologies

(Image: Siemens)

As we look toward 2025 and beyond, the aerospace and defense (A&D) industry stands at the cusp of a significant transformation. Many programs in the aerospace and defense industry are becoming too expensive. Examples of this can be seen across both the commercial and defense sectors as programs face ballooning budgets, which are leading to delays and even program cancellations. Leaders in the A&D industry have been adopting the latest in digital technology to save money, make their workforce more efficient and reduce their products’ time-to-market. Yet after decades of implementing digital transformation and substantial investment, A&D companies are not finding their expected return on investment regarding these goals.

The integration of digital technologies is not just a trend but a necessity; however, to achieve the desired outcomes, companies must move beyond the initial stages of digital transformation and fully leverage advanced technologies, modern processes, and a culture that embraces change.

The Siemens framework, "Five Steps of Digital Transformation Maturity," provides a roadmap for companies to follow, emphasizing the importance of progressing beyond basic digital adoption. (Image: Siemens)

Digital Transformation Maturity and ROI

Why is this happening? A recent survey conducted by Siemens revealed a significant gap between perceived and actual digital transformation maturity. While 55 percent of respondents consider their digital transformation efforts mature, 72 percent reported not seeing the anticipated ROI. This discrepancy underscores the need for a deeper understanding and implementation of digital transformation strategies.

According to the survey, more than 80 percent of A&D companies are still in the early stages of digital transformation, primarily focusing on configuring or connecting data across engineering domains. To realize substantial ROI, companies must advance to more mature stages where automation, generative design, and optimization are fully integrated into their processes (figure 1).

The key to achieving ROI lies in moving past the initial stages of digital transformation. Companies need to leverage advanced technologies to:

  • Automate mundane, repetitive tasks.
  • Generate innovative design alternatives.
  • Optimize to find the best design.

When designs are optimized in the digital world, before they are built in the physical world, companies can reduce costs, improve workforce efficiency, and accelerate time-to-market for their products.

Transforming Processes and People

Successful digital transformation requires a culture that embraces change and innovation. Engineers, often curious and eager to explore new technologies, also can be resistant to change. To foster a culture that supports digital transformation, companies should begin by focusing on quick wins that demonstrate tangible benefits. Automating mundane tasks, such as writing test reports, can allow engineers to focus on more critical aspects of their work, making the benefits of digital transformation immediately apparent. Once employees see that digital transformation frees them to focus on the meaningful work they want to be doing, they are likely to support more significant changes.

Digitally transforming processes involves more than just digitizing existing workflows. A major challenge that needs to be overcome is the siloed nature of different engineering domains and product lifecycle stages, which hinders efficient information flow. The comprehensive digital twin, a physics-based virtual representation of a product or process, ties together various elements across engineering domains through digital threads. These threads manage and automate workflows and data, providing an authoritative source of truth that enhances data access, traceability, and virtual testing capabilities.

Adopting an agile mindset is crucial for A&D companies. Instead of forcing old workflows into new software, companies should be open to new processes and technologies, allowing them to quickly adopt the latest tools and stay ahead of the game.

Comprehensive digital twins can be used for virtual testing, optimization, and predictive maintenance, enhancing overall efficiency and productivity. (Image: Siemens)

The Comprehensive Digital Twin and Digital Threads

The comprehensive digital twin is a cornerstone of digital transformation in the aerospace industry. It acts as a physics-based virtual representation of a product or process, integrating data from various engineering domains and stages of the product lifecycle. This integration is facilitated by digital threads, which are connected business processes that ensure the efficient flow of information across departments and digital tools.

Digital threads automate the connection processes, eliminating the need for manual data transfer and interpretation. For example, when a new sensor technology is added to an aircraft, digital threads ensure seamless information flow between engineering teams, from requirements and system architecture to mechanical and electrical design, procurement, and manufacturing. This automation not only improves efficiency but also reduces the risk of errors and delays.

The comprehensive digital twin, supported by digital threads, enables virtual testing and optimization of designs and processes before physical production. This capability allows A&D companies to "shift left" in their processes, identifying and addressing issues early in the development cycle, thereby saving time, money, and resources.

AI and Other Exciting New Digital Technologies

Artificial intelligence (AI) is one of the most promising technologies transforming the aerospace industry. Nearly half of all companies responding to the survey said they plan to implement AI in some aspect of their business by mid 2025; however, just 8 percent of A&D companies are using AI for technical work today. The adoption of AI for technical work has been slow, primarily due to concerns about data security and trust, as A&D companies need Industrial-grade AI that is robust enough to be trusted with their complex tasks and secure enough to be trusted with their sensitive data.

For example, companies are wary of using Large Language Models (LLMs) because they fear that sensitive data might be exposed. To address these concerns, retrieval augmented generation (RAG) within modern product lifecycle management (PLM) systems must be used. RAG allows companies to build private LLMs on top of public LLMs, ensuring that sensitive data remains protected.

AI can streamline workflows, automate mundane tasks, and eventually generate and optimize aircraft components. This can be accomplished by using aerospace product data to train LLMs to better carry out more complex tasks. As LLMs learn the language of engineering and manufacturing, they become robust enough for complex A&D technical work.

In addition to AI, immersive engineering technologies such as augmented reality (AR) and virtual reality (VR) are transforming how engineers interact with their work. These technologies enable engineers to manipulate 3D objects in a 3D environment, providing a more intuitive and immersive experience. By interacting directly with the comprehensive digital twin, engineers can make real-time changes and see the immediate impact on the virtual model.

These advanced technologies, combined with a culture that embraces innovation and transformed processes, enable A&D companies to reach the later stages of digital transformation maturity. As more engineering processes and product optimizations are done digitally, companies can reduce costs, improve efficiency, and accelerate time-to-market.

Next Steps for Aerospace Digital Transformation

As the aerospace and defense industry continues to evolve, companies must take strategic steps to ensure their digital transformation efforts yield the desired outcomes. Here are the key next steps for A&D companies to consider:

  1. Assess and Plan: Aerospace and defense companies should start by conducting a comprehensive assessment of their current digital maturity. This involves identifying gaps and areas for improvement, which will help in creating a clear roadmap for progression.
  1. Invest in Technology and Innovation: Investing in advanced technologies such as artificial intelligence (AI), immersive engineering, and digital twins is essential for enhancing efficiency, reducing costs, and accelerating time-to-market. Companies should foster a culture of innovation by encouraging employees to embrace new technologies and processes.
  1. Enhance Data and Process Integration: Implement digital threads to ensure seamless data integration across engineering domains and product lifecycle stages. This improves information flow, reduces silos, and enables more efficient decision-making. The ROI improvements from the later three maturity stages cannot be fully realized until data and systems are connected and integrated.
  1. Start Now: Digital transformation technology is advancing faster than it ever has before, but companies should not wait for the next big thing to arrive. Companies do not need a comprehensive plan to reach Optimization before they start or advance their digital journey. They just need to understand where to go next.

By following these next steps, A&D companies can effectively navigate their digital transformation journeys, achieve significant ROI, and position themselves for long-term success in an increasingly digital and competitive landscape. Embracing digital transformation maturity — across people, processes, and tools — will enable the aerospace industry to unlock new levels of efficiency, productivity, and innovation.

Conclusion

Most A&D companies are not seeing the ROI they expect from their digital transformation journeys. This does not mean digital transformation is not working, it just means it is not mature. Incorporating the comprehensive digital twin, digital threads, AI, and immersive engineering technologies into digital transformation strategies will help A&D companies mature their digital transformation and achieve the ROI they expect.

This article was written by Todd Tuthill, Vice President of Aerospace and Defense, Siemens Digital Industries Software (Plano, TX). For more information, visit http://www.Siemens.com/AerospaceTransformation  .