Creating Business Value for the Aerospace Industry with ......In the Industry 4.0 era, aerospace...

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Creating Business Value for the Aerospace Industry with Neural Manufacturing

Transcript of Creating Business Value for the Aerospace Industry with ......In the Industry 4.0 era, aerospace...

Page 1: Creating Business Value for the Aerospace Industry with ......In the Industry 4.0 era, aerospace engineering has evolved from aerodynamics, structures, electrical systems, and hydraulics

Creating Business Value for the Aerospace Industry with Neural Manufacturing

Page 2: Creating Business Value for the Aerospace Industry with ......In the Industry 4.0 era, aerospace engineering has evolved from aerodynamics, structures, electrical systems, and hydraulics

The confluence of digital technologies such as the cloud, internet of things (IoT), analytics, intelligent automation, robotics, and artificial intell igence (AI) is enabling significant technology-led transformations across the aerospace industry value chain. With

TMTCS' proprietary thought leadership framework Business 4.0 , aerospace companies can take advantage of digital technologies for broad-based business innovation and transformation. The framework defines a transformation strategy that is crucial to building differentiating competencies to drive competitive advantage in the digital era. This change requires strategic vision and an appetite for risk and experimentation to overcome inertia and shake up the status quo. In addition, given the current backdrop of the COVID-19-related global economic crisis, companies that are further along in their digital transformation journeys are better placed to navigate such disruptions as well.

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Digital transformation in the aerospace industryThe advent of the internet in the last 50 years has accelerated the development of technologies and rapidly moved industries from the proverbial Industry 2.0 to 3.0, and into the 4.0 era. Unlike advances of the previous 100 years, from the invention of the electric bulb in the 1870s to the internet in the 1970s, those of the past 50 years have been predominantly driven by maturing digital technologies.

In the Industry 4.0 era, aerospace engineering has evolved from aerodynamics, structures, electrical systems, and hydraulics to software and digital twin-led design and development. Manufacturing in aerospace is no longer limited to manual operations and has paved the way for automated computer numerical control (CNC) machines, robotics, and smart factories. Emerging technologies have played an increasingly key role in these industrial evolutions, and the pace of technological innovations and business transformations continues to surge.

In fact, the aerospace sector is undergoing massive digital transformation (see Figure 1). For instance, urban air mobility is envisioned to reduce traffic congestion for which 5G, IoT, and cloud technologies will play an important role. Unmanned aerial vehicles (UAVs) are being trained to navigate geographies autonomously by using AI, the cloud, and real-time data. To ensure a more climate friendly future, the industry is also turning to electric propulsion and drones for cargo transportation. Advances in hypersonic weapons for defense today could lead to tomorrow's Mach 3 airliners. Additive manufacturing (3D printing) is providing enterprises with innovative ways to design and rapidly manufacture entirely new aerostructures previously not possible with traditional methods. The increasing pace of business innovation, enabled by digital technologies, is evident across the entire aerospace business value chain.

Figure 1: Driving innovation in the aerospace industry with digital technologies

Increasing Pace of Innovation

TelegraphMarconi, 1909

1st Manned FlightWright Bro, 1903

Internet1990s

ElectricPropulsion

2010s

Humans On Mars

Boeing1916

Airbus1960s

Space Shuttle

1976

UAVs1970s

Neural Networks

1990s

AI1990s

IoT2010s

Blockchain2000s

Industrial Robots1970s

~100 Years Post-Bulband Pre-Internet Humans

Electric BulbFranklin, 1879

3D Printing2000s

5G2019

ML/DL2000s

Solar Electric Propulsion

2015s

Big Data2010s

~50 Years Post Internet

SpaceX2010s

UAM2015s

Cloud2005s

TurbineEngine1921

Logic Theorist

1956

ARPAnet1969

Digital Twin/Thread

2016s

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The rise in customer demand for on-demand data with low latency is being fulfilled by IoT-enabled sensors that power increasingly rich data insights with powerful analytics. Autonomous cybersecurity tools are being used to search digital assets for undiscovered vulnerabilities and preemptively apply patches. At the same time, AI is supporting defense operations and platform-level autonomy is elevating safety by minimizing human involvement in otherwise high-risk settings. In addition, advances in cybersecurity will facilitate the monitoring and protection of space assets from afar and technology-enabled space infrastructure, such as off-earth bases, supply hubs, and orbital fuel stations, making space travel safer.

Though many companies in traditional aerospace manufacturing are not digital native, they have an opportunity to adopt emerging technologies such as AI, machine learning (ML), deep learning (DL), blockchain, virtual (VR), augmented (AR), and mixed reality (MR), drones, 5G, IoT, and additive manufacturing to benefit from technology-led business innovations and stay competitive.

Across the aerospace business value chain, these technologies can create business value in numerous ways:

n The AI, ML, and DL suite of technologies have been dubbed as the 'new electricity'. They will augment human decision-making, automate processes, improve automation, and more.

n Blockchain is relatively in the early stages of being adopted in aerospace and is poised to significantly improve parts traceability and authentication among other applications.

n The VR, AR, and MR suite of technologies already have many use cases, ranging from product design engineering to manufacturing and training in the maintenance, repair, and overhaul (MRO) space.

Figure 2: Leveraging emerging digital technologies across the aerospace value chain

n Service Differentiationn In-Flight Experiencen Aircraft Availability

n Predictive Maintenancen Scheduling Efficacyn Virtual Training

n Additive Manufacturingn Parts Traceabilityn Regulatory Compliance

MRO

Airline / Operator

AircraftOEMs

Tier 1 & 2 Suppliers

EngineOEMs

n Prognostics and Diagnosticsn Service Package Care n Data Monetization

n Integrated Data Platforms n Factory Automationn Service Innovation

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n MRO technicians could benefit from digital work cards and digital document storage.

n Drones are ubiquitous not only as products by themselves but also in their applications such as augmenting aircraft inspections, performing de-icing tasks, and more.

n 5G and next-gen wireless technologies greatly improve the latency and speed of data transfers and will find many applications, ranging from improving passenger experience at airports and in-flight, to airport ground operations, connected aircrafts, and in manufacturing operations and safety.

n New multi-spectrum sensors, IoT/IIoT, and cloud technologies collect data at an unprecedented rate and in large and specific volumes. They provide visibility in manufacturing, operations, machine health monitoring, worker health monitoring, and aftermarket/MRO business processes.

n Additive manufacturing can improve operational efficiency and minimize aircraft-on-ground (AOG) time. It can be implemented at all stages of the design workflow, from concept models, prototyping, and custom production to jigs, fixtures, and 3D printing in space.

n Advanced analytics, powered by AI and ML, can derive useful insights and drive augmented decision analysis.

Leveraging Business 4.0 in the aerospace industryTo understand how the aerospace industry can transform itself using the Business 4.0 paradigm (see Figure 3), consider an aircraft original equipment manufacturer (OEM) that provides its customers with a real-time view into the health of its fleet. The inherent challenge the OEM faces is illustrating the maintenance history of each aircraft and providing insight into service bulletins, airworthiness directives, and scheduled maintenance. The OEM can overcome these challenges by bringing together not just one but multiple technologies such as IoT, cloud, analytics, AI, and more, all of which fall under the Business 4.0 purview. The four business behaviors of the Business 4.0 framework, as illustrated below, can guide organizations in the aerospace sector to monetize these technologies, thereby ensuring they stay ahead of the digital adoption curve:

n Driving mass personalization: Customizing products and services using digital technologies can enhance customer experience both at the individual level and at scale.

n Creating exponential value: Adopting new business models, creating value, and addressing new markets are crucial to leveraging digital technologies to unveil new opportunities for enhanced customer service.

n Leveraging ecosystems: Ensuring collaboration across external partners can help a firm drive exponential value to a wide customer base.

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n Embracing risk: Moving beyond rigid planning and operational barriers with a strategic, agile approach, enabled by digital technologies, can enable companies to explore new ideas at lower risk.

Figure 3: The aerospace industry from the Business 4.0 lens

Abundance of data is at the heart of Business 4.0 transformation. A thoughtful and creative use of data is a central theme of digital transformation that can bring about significant business impact. In the COVID-19 environment, businesses can stay ahead in the 'new normal' with three attributes to meet the current situation head on. Businesses need to –

n Be purpose-driven: Organizations must look beyond the products they make and sell to the purpose behind their existence, which in turn often defines the blueprint for their transformation journey.

n Be resilient: The ability to withstand shocks to the system and to quickly tweak business models, launch new offerings, or target new markets, while continuing to provide superior customer experience.

n Be adaptable: The technology pillars of Business 4.0 – agile, intelligence, automation and cloud – become the foundation for an adaptive core or 'digital spine' for the organization.

Flying Taxi: Aerial rideshare, hybrid electric aircra� Cybersecurity: Safeguarding infrastructure and assets against cyberthreats

Skilled Resource Shortage: Virtual training and AR/VR to maximize resource pool

Custom Aircra� Interiors: Service differen�atorImmersive Visualiza�on Tools: Design of new interiors and liveriesSocial Pla�orm: Power to interact one-on-one and personalize the commercial flying experience

Analy�cs Pla�orm: Data contracts and agreements, reliability predic�onsSupply Chain Collabora�on: Leverage blockchain for parts traceability

Consolidated Capabili�es: M&A ac�vi�es across various business segments

Business Jets: Supersonic, innova�ve, and frac�onal ownership business models

Data Mone�za�on: New revenue models leveraging a�ermarket/MRO dataDevelop New Materials: Increased usage of composites and 3D printed parts across the aerospace value chain

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A holistic approach to transformation in the aerospace value chainIn an age of increasing pace of innovation, a future-ready enterprise is in a perpetual state of

transformation. Successful transformation requires multiple cross-functional elements across a

business as well as its immediate external ecosystem to work in sync. A holistic approach can

help firms achieve such transformation. The outcome of a successful digital transformation will

give aerospace companies increased agility and resilience to not only cope with demand-

supply disruptions such as that caused by the COVID-19 crisis, but will also help them be

future ready, positioning them for the longer term.

Ecosystems will drive exponential growth with new business models. One of the first steps to

transformation is to evaluate various elements in the company's ecosystem (see Figure 4)

along with peer benchmarking to understand their standing relative to others in the segment.

With an eye on future business trends and customer expectations, organizations must

anticipate market changes and evolve business models. To be future ready, a successful

transformation would include varied facets such as ecosystem thinking, automation and

digitalization, a collaborative culture, structural changes, and an agile

organizational/technological core that is ready to drive continual transformation.

Figure 4: An aerospace manufacturing company's ecosystem view

Airframes

Aerospace Manufacturing

Ecosystem

Supply Chain Collaboration

Interiors AftermarketMRO

TechnologyPartners

PropulsionEngines

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The current COVID-19 pandemic has led to massive demand-supply disruptions across

industries, including the aerospace industry value chain. Many companies in the sector must

do immediate crisis management and prepare to transition into the new normal. To manage

this, companies need to ensure short-term liquidity as well as replan their business operations

and supply chain health for efficacy and efficiency to weather disruptions. By definition, many

of the digital technologies are enablers to achieving greater efficiencies while also becoming

future ready.

Business 4.0 thinking underpinned by digital technologies can be leveraged across the

aerospace product lifecycle, from design, development, manufacturing of new aircraft, airline

operations, and airport services to aftermarket services and MRO. With the increasing

prevalence of power-by-the-hour models, maximizing engine availability and minimizing

downtime in MRO operations improve business outcomes across the aircraft lifecycle. Digital

technologies enhance revenue channels, create upselling and cross-selling opportunities,

eliminate manual configuration, and support performance-based contracts. This in turn helps

aerospace companies, from aircraft engines and airframe OEMs to airline operators, to provide

greater value to their customers.

Taking flight: Reimagining business processes and operationsCreating exponential value requires an enterprise to adopt two modes of thinking: An

incremental mindset enhances existing processes, while an exponential mindset is about

thinking differently, leading to innovation. TCS Business 4.0 is a framework of business

behaviors and enabling technologies that optimizes an organization's digital advantage to

create customer value. Digital technologies allow enterprises to go beyond established

constraints of incremental thinking and 'flip the switch' to an exponential mindset.

The business disruptions caused by the COVID-19 pandemic showcase the need for

accelerated adoption of digital technologies across the aerospace industry value chain.

Organizations in the aerospace and defense industry can turn this global crisis into an

opportunity for learning and transformation, and integrate lessons learned over time into

their long-term strategies. This means organizations that are not digitally native must

reimagine their business processes and delivery models to enable a digital core. They not

only need to anticipate customer needs but also analyze data and gain insight for

monetization. This necessitates continually addressing the requirements of multiple

stakeholders, assessing an organization's change adoption capability, and providing

scalable solutions. The end result: re-imagined operations, enhanced products and

services, greater resiliency against demand-supply disruptions, and improved customer

and supplier partnerships.

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Sandeep 'Sandy' MujuDr. Muju heads the Aerospace and Defense Industry Practice at TCS. He is responsible

for enabling growth, transformation, and digitalization initiatives for global clients. He

brings extensive experience across Fortune 100 aerospace and defense and allied

highly engineered/manufactured products and technology services organizations.

Kevin R. Drummond Kevin is an Engagement Manager with sixteen years of experience in the aerospace and

defense industry. His areas of expertise span new product design and development,

MRO, and product lifecycle management.

Ramesh Vanagundi Ramesh is a Program Manager with over sixteen years of global experience in the

aerospace and defense industry. His expertise lies in manufacturing excellence,

customer experience management, product lifecycle management, and MRO.

About the Author

Page 10: Creating Business Value for the Aerospace Industry with ......In the Industry 4.0 era, aerospace engineering has evolved from aerodynamics, structures, electrical systems, and hydraulics

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