European security is under threat. A new report from Roland Berger examines what Europe must do to achieve sustainable deterrence and protect its core interests.
Embrace the future of defense: A call for transformation
Defense goes digital – What lessons can other industries learn?
As governments in Germany and across Europe allocate substantial resources to enhance military capabilities, the defense sector is witnessing an unprecedented surge in demand. This influx of investment presents unique opportunities for OEMs and suppliers, while also introducing significant challenges. Executives face the complex task of rapidly scaling production alongside the urgent need to modernize aging IT systems and ensure compliance with stringent regulations. These are among the key findings of our new report, prepared in collaboration with SAP.
Drawing on Roland Berger’s and SAP’s expertise, this report offers a path forward. It highlights the unique characteristics of the defense sector and explores the roles of technology and cybersecurity.
The study explores the intricacies of digital transformation within the defense industry, addressing critical questions that executives must confront:
- How can standardization and customization coexist in a highly regulated environment where security and compliance are paramount?
- What role can advanced technologies like AI play in overcoming data protection challenges while enhancing operational efficiency?
- Is now the right time for digital transformation, and will the benefits justify the resources required, especially during a period of business growth?
The initial chapters examine the pressing need for transformation in the defense sector. Current operational demands, heightened by geopolitical tensions, necessitate a shift from outdated legacy systems to advanced, integrated platforms. Organizations that embrace this change can enhance their operational capabilities and position themselves as leaders in the evolving landscape of defense.
The study highlights the potential for harmonization within core functions such as finance, procurement, and HR, which can unlock substantial efficiency gains. Detailed case studies illustrate how various organizations successfully navigate their transformation journeys by aligning business and IT strategies, fostering collaboration, and embracing innovative technologies.
Additionally, the report emphasizes the importance of cybersecurity and data sovereignty in any digital transformation effort. In a sector where compliance with national regulations is essential, establishing a robust security architecture from the outset is crucial.
Digital transformation is imperative for defense organizations aiming to thrive in an increasingly complex and competitive environment. Recognizing the inevitability of this transformation allows executives to take proactive steps to secure both immediate gains and long-term success.
The complete document is available for download below, providing in-depth insights, practical recommendations, and real-world examples tailored to the unique needs of the defense sector.
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