The timely launch of a new product provides aerospace and defense (A&D) companies the opportunity for increased profitability.
By Edward Talerico, Industry Solutions Strategy Director, Aerospace and Defense, Infor
Through a robust enterprise-level solution, A&D leaders can innovate their approach to new product introductions with smart tools that address automation, risk mitigation and visibility — both inside and outside the organization.
The following are five things for A&D organizations to keep in mind when considering how to update and optimize product introduction strategies for better profitability.
- Avoid delays for product launches. This one is obvious, but also the most important. Products that are late to market are less profitable, plain and simple. A&D organizations can make delays less of a headache by getting a good handle on their current project management and product introduction processes to determine what is working and what requires optimization.
- Identify and mitigate risks early in the new product introduction lifecycle. New products see higher profit margins than older products. The more innovative the product, the greater the margin advantage. However, while more profitable, greater innovation also represents more risk. Putting in the extra work upfront pays off in the long run. It’s important that A&D organizations embed risk information and conduct “what-if” scenarios in the early phases of a product’s development to put the new product introduction project on a path for success.
- Equip managers with the tools needed to plan, distribute resources and execute. Everyone is being forced to operate while understaffed. However, it’s important that A&D leaders provide managers and employees with the tools they need to more easily map out a project’s needs and match them up with available resources.
- Stress the importance of real-time visibility—both internally and externally—to reduce time to decision. Visibility is crucial for effective decision making. It also makes the company more adaptable and able to keep new products on track and hit product launch dates.
- Invest in enterprise-level solutions like Infor CloudSuite Aerospace & Defense and Infor Configure Price Quote. With its product innovation and mixed-mode operational capabilities to meet both made-to-order (MTO), configure-to-order (CTO) and engineered-to-order (ETO) product requests, Infor CloudSuite Aerospace & Defense and Infor Configure Price Quote provide the tools to help positively impact profitability and ensure on-time delivery of all of those new products.
Nearly half of total manufacturing revenue comes from releasing new products. Rather than leave half of the business to chance, A&D companies need to make sure they develop a comprehensive strategy that takes into account the necessary business processes and technologies to help new product introductions go as smoothly as possible. With these five considerations, organizations can start the conversation to review their current systems and ensure they are poised to make to make the most from future new product introductions.