Luigi, please help to set the scene regarding BAE Systems’ research into complex asset management and the subsequent report.
We gathered insights from 540 senior defence and aerospace leaders from around the world, looking to assess their perceived state of asset readiness. We wanted to gauge the pressure they feel in the current climate to better prepare physical assets, whether they think this can be done adequately without digital intervention, and what their key priorities are when investing in digital solutions.
This has all been consolidated into a report titled: Emerging technology behind the scenes of defence.
We’ll delve into the outcomes from that report, but it’s worth mentioning straight away the pressure that organisations are feeling globally. As many as 62% describe the pressure to ensure mission-readiness among complex assets as “significant”. It’s no surprise, therefore, that 81% of global defence and aerospace organisations are prioritising transforming their approach to complex asset management this year.
We will certainly look to dissect some of the standout stats from the report. Before we do so, however, could you confirm what you mean by complex assets in the context of defence and aerospace?
Simply, it covers the critical, physical platforms that are tasked across land, sea and air to safeguard our societies and citizens – our jets, ships, tanks, etc.
Effective management of these assets is complex for a number of reasons. Many defence platforms are built in modular elements, but have nationwide supply chains connecting many suppliers. This can lead to disparate and fractured data sets.
What digital complex asset management brings to the party, even in demanding defence environments, is the timely connection of, and secure access to, the right information. Integrating technologies that overcome digital barriers – like data fragmentation and poor interoperability – allow people behind the scenes of defence to gain 360° visibility of their assets. Asset condition, preparedness, performance, the broader asset network... all of that data is connected to ensure assets are mission-ready.
Our research surveyed 500+ senior IT, business and engineering decision makers from defence and aerospace organisations globally to understand the challenges defence leaders are currently facing.
This brings us to the research itself. What were the main challenge and concerns brought to light?
In general, the majority of defence and aerospace leaders (80%) agreed that ensuring the readiness of complex physical assets is essential for responding to today’s mounting geopolitical threats. Two-thirds resultantly plan to increase investments in digital solutions relative to their 2024 figures.
The urgency stems from a challenge matrix that now seems very broad. When asked about the issues faced as a result of not effectively managing complex physical assets via digital solutions, respondents cited decreased customer and stakeholder satisfaction, health and safety issues, cyber security vulnerabilities, cost inefficiencies, asset deployment delays and compliance concerns, among other things.
To this end, we also asked them what they would hope to unlock through improved digital management of these assets. Here, the responses followed a similar trend: stronger regulatory compliance, better data protection, enhanced predictive maintenance capabilities and, very prominently, improved data integration and better interoperability.
And these are the two statistics that really stood out for you?
Absolutely. As many as 40% cited a lack of interoperability between systems when asked about their main data challenges. This points to an inability to enable systems to talk to one another, meaning information is unable to move seamlessly between systems, leaving data isolated in third-party systems.
This is even more concerning given that 82% agreed that access to the right data is critical to ensuring complex assets are mission-ready.
Simply, mission-readiness requires seamless data access and the interoperability issue is working against that goal, while also delaying the efficacy of AI as a transformative solution.
As we summarise in the report: “Integration and interoperability must form a crucial foundational layer for defence organisations that aspire, in the near future, to apply emerging technologies such as AI. Without this foundational data layer, AI will simply highlight the problematic gap in fragmented datasets.”
What does the research indicate in terms of investments made so far, to help plug this “problematic gap”?
Well, 81% of respondents agreed that transforming their approach to complex asset management is a key priority for 2025; 82% agreed access to the right data is critical to ensure mission-readiness; and the same number again cited the prominent role of AI as part of their strategy.
However, currently, only 12% can say they’re at an advanced or optimised stage with their investment efforts, despite the clear and positive intention.
Is there a lot in the way of optimism looking forward?
We can see from our research and the report that there is a huge appetite globally to invest in digital solutions that enhance levels of physical asset management. Respondents across land, sea and air are aware of the challenges around failing to digitise, but also the challenges of implementing new technologies if not guided effectively.
They spoke with caution about a future where high-profile cyber-attacks, supply chain vulnerabilities, regulatory compliance, and a reliance on interconnected systems will continue to test their levels of interoperability and data access.
From that awareness, they listed at least 10 different priorities and benefits that they’d be looking for from future digital investments. These ranged from simpler integrations with existing systems, to advanced analytics and reporting.
The positive upshots are innumerable for those who turn intention into action.
The ultimate “upshot” being…?
A status quo where assets are permanently mission-ready, no matter the threat landscape. It all comes down to integration and interoperability. So, keep an eye on those ‘I’s’ as defence and aerospace look to transform their physical asset management approaches dramatically over the coming year and beyond.
Emerging technology behind the scenes of defence