SCM Aviation 2016

Digital Transformation – How to Drive Value Creation in the Digital Era

Digital Transformation – How to Drive Value Creation in the Digital Era

Dr. Dierk Buss, Andreas Rueter, Dr. Stefan Ohl, AlixPartners GmbH

Digitalization is transforming industries rapidly and new entrants are already taking over intelligent functions in the value chain. Incumbent companies often face barriers in the implementation. To support the digital transformation trend, it is essential to prepare the organization, to implement a distinct strategy, and to overcome critical barriers. We suggest a sequential approach to assess digital readiness and identify latent potential and then drive value chain optimization as well as new business models in dedicated project streams. An internally driven process to develop new business models has proven most effective to enable sustainable value creation. […]

The Internet of Things: How to Go Digital with the Right Approach

The Internet of Things: How to Go Digital with the Right Approach

Tanja Deisler, Johannes Klenke, Accenture GmbH

In Germany they call it Industry 4.0, in English-speaking countries they call it connected industry or the Internet of Things (IoT). In a world where everything is connected via Internet, the digital factory is not far. With an estimated growth of 6% in the next few years of the aviation industry [IATA, 2015], the way to remain competitive is to digitalize. The article highlights the main pillars of the digital factory. Taking a look at use cases where these technologies have been implemented will demonstrate their feasibility.The goal of this article is to show that things have to be seen from a different perspective to be able to move towards the digital factory. Digitalization requires agility and it needs to be disruptive. Instead of creating a large project management overhead, a company can find out which approach fits best to its ecosystem through small steps, pilot projects and trial and error before a project is rolled out on a large scale.

The Value Contribution of Purchasing in Industry 4.0

The Value Contribution of Purchasing in Industry 4.0

Dr. Karl J. Grajczyk, Infineon Technologies AG, Gunnar Zigan, Hochschule Landshut

The Industry 4.0 is defined as a collective term for technologies and concepts of value chain organization which combines cyber-physical systems, the Internet of Things and Internet-based digitization technologies. It can support productivity increases by connecting industrial value adding processes across several supply chain tiers. In ongoing discussions about Industry 4.0 supply chain management, it is often seen as one of the largest profiteers in industrial companies while its impact on purchasing has merely been considered by academic and practical research. Existing publications about the role of purchasing in Industry 4.0 have focused on providing broad overviews of the future role of purchasing, often lacking guidelines of practical initiatives to evolve the purchasing organization. […]

Managing Complex Aerospace Supply Chain Networks

Managing Complex Aerospace Supply Chain Networks

Cornelia Staib, SupplyOn AG, Bert Stegkemper, Stegkemper GmbH

The ongoing digitalization of all stages of the supply chain is one of the most important transformations that will help master future challenges in the aerospace industry, according to a new study of the aerospace supply chain whose key findings are summarized in the following article. While collaboration between OEMs and top-tier suppliers is already digitalized to a large extent, this mostly concerns handling conventional order processes. If other supplier-related processes are considered (handling complaints, action management and so on), the picture is completely different. Many companies want greater digitalization in these areas, both in relation to the customer and the supplier. And the closer to the start of the supply chain, the more often unstructured processes involving faxes, e-mails and Excel are encountered. […]

(Cost) Optimization in the Aerospace Supply Chain

(Cost) Optimization in the Aerospace Supply Chain

Robert Beckenlechner, Fraunhofer IPA, Georg Reissich, Mathias Schaller, Blaser Swisslube AG

In this article the potential of cooling lubricants (CL) for the machining of carbon- fiber reinforced plastics (CFRP) has been analyzed. The investigations were done during a collaborative research project of Blaser Swisslube AG and Fraunhofer IPA. On the one hand, a new CL was developed which follows overall considerations of the wet machining process. On the other hand, the usage of CL offers the chance to create a more efficient machining process. Therefore, the cutting principle was adjusted to the brittle fracture behavior of C- fibers combined with the CL. […]

The Digital Aerospace Supply Chain – a New Paradigm or Just a Fad?

The Digital Aerospace Supply Chain – a New Paradigm or Just a Fad?

Dr. Stephan Baur, Manfred Hader, Roland Berger GmbH, Prof. Dr. Stephan M. Wagner, ETH Zurich

A digital transformation of the aerospace supply chain has the potential to contribute to the mastery of the current challenges related to the production ramp-up, fluctuating production rates, as well as incremental innovation campaigns. It could result in an increasing efficiency along the complete value chain from the development activities over production to the aftermarket business and the operation of the aircraft. The advantages and disadvantages of this digital transformation are widely discussed, however, there is still only a limited number of examples or flagship projects where it has already been successfully implemented. Also, a concrete and shared vision is missing, with many questions awaiting clarification. This article aims to generate a repository of the topic and tries to answer the question, whether the digital aerospace supply chain is a new paradigm or just a fad.

Analysis of Mergers and Acquisitions in the Airline Industry

Analysis of Mergers and Acquisitions in the Airline Industry

Konstantin Biel, Denis Ellenrieder, Florian Kiesel, TU Darmstadt, Jörg Ries, City University of London

Over the past 15 years, the airline industry has been in constant transition. This can mainly be attributed to an ever-increasing competitive pressure, which has additionally been intensified by the continuing growth of low-cost carriers and the upcoming of the Gulf airlines. As a consequence, airlines which are not capable of streamlining their operations sufficiently often struggle with this competitive environment and may become targets for mergers and acquisitions. However, as has been shown for various transactions in the past, the expected synergies do not necessarily materialize over the course of the integration process. Therefore, this article aims at investigating the performance of mergers and acquisitions in the airline industry between 2001 and 2015 using the share prices reactions following merger and acquisition announcements as a proxy of the present value of future cash flows to shareholders. […]

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