Automation & Digital Transformation

Automatic equipment in a manufacturing, warehousing, transportation and distribution, Industrial and Autonomous research robots, Robotic process automation (RPA) and other processes or facilities.

Participants should adopt as-a-service models, ready for deployment to adapt and thrive, finds Frost & Sulliva

, Digitalisation in Defence, reveals that digital technologies are gradually being leveraged at both agency and operational levels as change enablers

11-Jul-2019
Participants should adopt as-a-service models, ready for deployment to adapt and thrive, finds Frost & Sulliva
Frost & Sullivan’s latest analysis, Digitalisation in Defence, reveals that digital technologies such as Cloud Computing, Big Data, Data Analytics, Internet of Things (IoT), Artificial Intelligence, Augmented Reality, and Blockchain are gradually being leveraged at both agency and operational levels as change enablers. The deployment of digital technologies improves legacy processes and enhances operation and mission efficiencies, which will, in turn, produce cost savings.

“The rise of digital platforms is empowering the military, enabling better continuity of operations and bringing armed forces to a new level of combat readiness,” said Alix Leboulanger, Senior Industry Analyst, Defence at Frost & Sullivan.

But digitalisation is bringing some inherent challenges as well. “Creating a ubiquitous operating environment for armed forces certainly provides greater operational benefits; however, handling and managing data remain a key concern, from data security to data spillover and theft,” noted Leboulanger. “Adoption is further hampered by high security standards, data sovereignty and ownership concerns, siloes and disparate sources of data from legacy platforms.”

The digital transformation is bringing new players into the market and casts a new light on competition. Non-traditional players are offering new business models and turnkey solutions to the military. Leboulanger recommends leading defence participants look towards growth opportunities in “as-a-service” models, ready for deployment to adapt and thrive in a fast-evolving environment. However, the relevance of these new service models is still in question.

“The adoption of new business models such as Software-as-a-Service or even Hardware-as-a-Service by the military is blurring the lines of genuine and traditional ownership,” noted Leboulanger.

Leboulanger sees a shift in customers increasingly looking for a total solution to solve one need and face one prime contractor, instead of handling a chain of contracts and multiple third parties.

Growth opportunities OEMs should tap into for future successes include:
  • Providing turnkey solutions with a mix of digital technologies where the security layer is already built in, enabling swift deployment. 
  • Embracing new outsourcing business models.
  • Establishing new partnerships and co-creation agreements.
  • Continuing to invest in traditional combat platforms.

Frost & Sullivan’s recent analysis, Digitalisation in Defence, presents a macro view of digitalisation in the defence industry. The research focuses on industry competition, new business models, digital, key applications, and case studies.

Digitalisation in Defence is the latest addition to Frost & Sullivan’s Defense research and analyses available through the Frost & Sullivan Leadership Council, which helps organisations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

For further information on this analysis, please contact Jacqui Holmes on Jacqui.holmes@frost.com

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