How Budget Restraints Spur Sucessive Predictive Analytics Partnerships within the A&D Industry
Facing tight budgets and the lingering effects of last year’s budgetary battles in Washington, the Aerospace and Defense industry is successfully embracing the power of technology and joining the big data movement by utilizing predictive analytics software and services, often in the form of specialized contracted companies, to manage fleets of complex assets much more efficiently.
To navigate within the grip of tight budget restraints executive leaders are approaching asset management optimization with a new and open attitude of collaboration and proactivity. There is no choice but to act and seek out the latest software, technology and best practices in order to drive down costs, increase profitability and optimize data sharing across service components.
Instead of addressing the possible ROI at the end of projects, Aerospace and Defense leaders are embracing predictive analytics software and services, which focus on uncovering cost avoidance opportunities from the first project engagement. These predictive analytics software applications improve cross-service interoperability in managing capital assets, provide insight into cost avoidance opportunities and save significant amounts of expense against a given asset’s remaining operating and sustainment (O&S) cost.
Completing the Mission
Purchasing and maintaining complex equipment is a huge expense for any organization but it is undeniably critical to completing both business goals and military missions. In the data driven marketplace, asset management is no longer unknown that Aerospace and Defense companies can afford to handle using methods that depend on outdated technology, slow processing speeds and stockpiling parts. Asset sustainment costs need to be actively reduced while asset availability and reliability are ensured and safety is not compromised, in order to operate and complete missions successfully while under budget constraints.
Just the Facts
In predictive analytics asset management strategies, the assets’ behavioral data and the basic tenets of statistical modeling are used to clearly define the status quo and the true costs associated with avoiding asset optimization for another year. With these numbers in hand and the baseline model built within predictive analytics software, simulations can easily, quickly and reliably be run by predictive analytics experts (aka Data Scientists) and trained in-house users. These simulations allow enterprise asset managers to explore which changes in fleet management are dependable ways to uncover cost avoidance opportunities.
Choosing the Best Possible Future
A successful predictive analytics strategy is based on the idea that organizations can take control over data using software and leverage it to uncover powerful business insight. By partnering with predictive analytics software firms, Aerospace and Defense companies can utilize the processing power and specialized software to gain insight into ideal asset behavior. The process often begins using specialized, proprietary software to create a RAM (Reliability, Availability and Maintainability) study and a baseline model of the status quo. With this view, business leaders gain insight and valuable visibility into current asset behavior.
With this starting point defined, predictive analytics software also allows for simulations of expensive asset management decisions to be created and run. The outcome of each decision is explored and the effects across the organization are shown. The costs of retrofitting assets are easily shown alongside the results of simulation data reflecting the effect of purchasing new assets and the true sustainment costs of maintaining the old. Predictive analytics software allows for a new kind of business decision - one that uses the best behavioral data (instead of only historical data) to proactively guide decision support practices.
Follow the Leaders
Within an organization compelled by legislation to become leaner and more efficient, predictive analytics software partnerships which quickly and reliably identify cost avoidance opportunities within the larger pursuit of optimizing asset productivity turned out to be a valuable success story that emerged during a time of budgetary strife. By successfully implementing predictive analytics software, Asset Managers in Aerospace and Defense have full visibility into future O&S costs (and alternatives) with a high degree of confidence. Even as budgets loosen, investments in predictive analytics software continue to efficiently reflect asset needs and behavior and there are now more dollars for investment elsewhere in the organization.Like these successful early adopters, force yourself to take a look at the cost of inaction within your organization. Past data, especially last year’s financials tell the story of not adopting predictive analytics. For the fleet you are managing, calculate the O&S cost for the remainder of the life cycle of the asset. If your fleet is more closely monitored, using the latest technology and high-fidelity data to optimize maintenance and sparing needs, can true ground be gained towards your organization’s business goals? Can you afford not to find out?