The A&D sector is at a crossroads. As international trade agreements continue to change, geopolitical power shifts and new entrants spread their wings, leading companies must focus on innovation as part of a coherent capabilities-driven strategy.
To keep pace with the industry’s rapid transformation, traditional slow-walking R&D efforts must be revised. Cybersecurity, integrated circuits, drones, small electric airplanes and augmented reality will require new ways of working, including venture capital–style investments in startups. It’s critical to make the right R&D decisions now.
A leading aerospace and defence company engaged Strategy& to optimise the finance team's ability to serve the business efficiently and effectively. After diagnosing the causes of needless organisational complexity, we addressed workload fragmentation through classification and reallocation of finance activities according to business value. In addition, we developed operating model options for maximising service delivery and highlighted more rewarding career pathways for finance team members. As a result, we aligned leaders on an enhanced operating model and roadmap and identified ~$50M in savings.
We helped a global commercial wireless and broadband network company develop a U.S. government communications market growth strategy. After segmenting the market between base and tactical clients, we assessed the current Department of Homeland Security and the Department of Defence demand for highly mobile voice-based applications and wireless broadband solutions. Through interviews, research, and quantitative analysis, we identified emerging market trends, assisted the client in defining its position for emerging growth opportunities, and helped align its product and technology portfolio with immediate market needs.
Strategy& worked as part of a A&D joint venture in developing financial consolidation strategies, enabling cost reduction designated by the U.S. government. We identified financial and operational options, tactical restructuring trade-offs, and opportunities for building momentum across the client enterprise to close a successful implementation. Strategy& continued to lead the client's executive team through a transformation road map that has identified nearly $1 billion in potential savings.
Strategy& worked with a government agency in assessing potential entry strategies to the international defence market. The client was looking to expand its aerospace and technology industrial bases. The project team, all experts in international defence policy, quickly segmented and sized the market. They identified relevant areas of entry for the client while completing a value chain analysis. Strategy& segmented international participation for military sea, air, and land platforms in addition to addressing the increasingly global nature of commercial aerospace programmes. As a result of our work, the client was able to understand the defence regulatory environment and identify key avenues for penetration and growth.