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Monday, December 14, 2009

CHANGE IS NEVER EASY BUT TO STAND STILL IN TODAY'S MARKET IS TO FALL BEHIND

Trends show that many companies are moving away from traditional practices and adopting forward thinking "leading practices" to support profitable growth in key areas.

THE ROAD TO PROGRESS

The business processes and information systems throughout your company were developed over decades, and many of them are undoubtedly considered very entrenched. Reengineering them to industry-leading practices won't happen overnight, and requires a strong commitment at the highest levels. This is especially true when it comes to integrating processes across departments and divisions. The good news is that companies that persevere can expect the following rewards:

* Better insight into the overall business
* Streamlining of processes that have grown overly complex and inefficient
* Significant reductions in risk and exposure
* Increased flexibility to respond to market changes


THE FUTURE LOOKS BRIGHT . . .

EMERGING TECHNOLOGY AND TRENDS

In the years ahead, companies in the A&D manufacturing industry will become increasingly integrated. This will enable the coordination of supply requirements with customers' MRO needs as manufacturers move toward life-cycle support models. It will also facilitate predictive maintenance models, as envisioned by DoD's network-centric warfare initiative. As the outsourcing trend continues, companies will turn to portals to face internal processes outward to trusted suppliers, subcontractors, and cus- tomers. This will facilitate distributed product teams and help spread pro- gram risk.

All of this requires a technical infra- structure that supports master data management and content consolida- tion. This will be enabled as legacy sys- tems are replaced or integrated with open-standards technology platforms such as SAP NetWeaver. Eventually, services-oriented architectures will emerge that are capable of decoupling business processes from underlying systems, allowing these processes to run across multiple systems in a flexi- ble manner. Such an architecture will speed integration, enable business change, and enhance a company's ability to innovate.

EMERGING A&D MANUFACTURING MANAGEMENT TRENDS INCLUDE:

PERFORMANCE-BASED LOGISTICS

Defense contractors entering the MRO aftermarket are moving away from task-and-fee arrangements toward performance-based agreements that base payment on the availability of air- craft. This is fueling the drive toward optimized parts sourcing, collaborative inventory replenishment, and life- cycle support perspectives.

COLLABORATIVE CONTRACT MANAGEMENT

As programs and product develop- ment continues to require coopera- tion between organizations, companies are looking for ways to manage con- tracts collaboratively. This requires enhanced capabilities for exchanging information, including financial and project management information.

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