Digital transformation in Aerospace and Defense (A&D) is often assumed to be a matter of adopting the latest technologies. But in a sector defined by long product cycles, strict regulation and deep-rooted legacy systems, true transformation requires much more than software; it demands strategic alignment, cultural change and operational agility.

In a recent HCLTech Trends & Insights podcast, Matthew Cordner, Aerospace & Defense Principal at HCLTech, shared a fresh, experience-based perspective on what it really takes to deliver meaningful change in this complex industry.

Technology doesn’t deliver value, behavior does

Having spent much of his career in engineering, manufacturing and supply chain roles before transitioning into IT, Cordner has seen firsthand that the real driver of transformation isn’t the technology itself, but how it’s used.

He explained that “technology seldom directly produces business value. Technology enables business process and behavioral change that drives the value.” The mistake many organizations make, he said, is assuming that simply deploying a new system or upgrading tools will generate ROI. Instead, value emerges when technology is deployed in direct response to clearly understood business needs.

Too often, companies “push” technology into the business, rather than creating what Cordner calls a “pull.” He emphasized the need to “involve the business early in the process, understand their objectives, what their issues are, what their opportunities are and use those to configure the program…in a way that makes them feel as though something’s being done with them or for them, not to them.”

Overcoming resistance in a risk-averse industry

The A&D sector’s aversion to change is well known and often justified. Given the stakes involved in safety, compliance and product integrity, any disruption is viewed through a lens of caution.

Cordner noted, “It is a highly regulated industry...as a shop floor supervisor, my primary job was to manage variation to the lowest level possible.” In engineering and manufacturing environments, variation can represent risk and processes are finely tuned to maintain quality and compliance. So, when a transformation initiative comes along proposing to overhaul systems, data flows and collaboration methods, it’s not surprising that it sparks fear and resistance.

This is why it’s essential to frame transformation around business objectives, not just technical upgrades. Citing Steve Jobs, Cordner stressed the importance of starting with “the objectives of the business and working your way backwards to the technology, not the other way around.” In his view, failing to do so not only builds resistance but often undermines the entire initiative.

What is the next level for a Model-Based Enterprise?

One of the most compelling ideas Cordner introduced was the concept of Model-Based Enterprise 2.0, a framework that extends beyond engineering to encompass synchronized, enterprise-wide digital models.

Reflecting on his early career, he described his shift from drafting boards to CAD systems and how that digital leap was just the beginning. Over time, the “digital definition” of a product began to shape manufacturing processes, field maintenance and beyond.

Yet Cordner observed that similar modeling advancements have emerged in other areas of the business, such as supply chain, financial forecasting, logistics and sustainment. “Just like an aircraft is a very complex system of systems that has to be designed with the whole in mind,” he said, “why do we not design our IT architecture the same way?”

Rather than treat ERP, PLM and MES systems as disconnected applications, he argued that they should be intentionally integrated and “designed to accomplish a single purpose, rather than just an accumulation of strong applications...thrown over the wall to IT for integration.”

Model-Based Enterprise 2.0, then, is about designing a coordinated digital ecosystem, not just digitizing individual functions.

How have 3D printing and CAD changed the game?

Tools like CAD and additive manufacturing (3D printing) have had a profound impact on how aircraft are designed and built. But their true value, Cordner explained, lies in their ability to accelerate learning and iteration.

“One of the foundations of developing a new product…involves iteration: trying things over and over and over again until you get them right,” he said. Early applications of 3D printing, for instance, weren’t about cost savings; they were about speed. Engineers could experiment with prototypes overnight instead of waiting weeks for tooling.

He recalled building one of the first rapid prototyping labs over 20 years ago, where parts were initially used only on flight test aircraft. Today, as costs fall and capabilities mature, additive manufacturing is finding a place in low-volume production too. But its roots remain in what Cordner calls “supporting the iterative learning process.”

Competing through agility, not just product strength

With defense spending rising, global instability increasing and supply chains under pressure, agility has become a defining success factor in A&D.

“The word I like to use that is really the key… is agility,” said Cordner. In a long-cycle business like A&D, where product lifecycles span decades, the ability to sense change and respond fast becomes even more important than marginal improvements in product design.

Organizations, he said, need to “monitor enormous amounts of information, both inside and outside your company, find meaning in that data and respond to it very quickly with a new plan that you quickly communicate to all the people that are involved.” Digital tools, such as ERP, MES, CAD and now AI, play a vital role, not just in designing better products, but in enabling these organizations to act with speed and coherence.

It’s not enough to have the best product. Companies must be able to evolve faster than the environment changes, whether that’s ramping up production, responding to parts shortages or adapting to geopolitical shifts.

A system of systems approach to transformation

For Aerospace and Defense organizations, the transformation challenge isn’t about adding more tools. It’s about changing how the organization operates; strategically, culturally and systemically. The tools are just a means to this end.

Cordner’s advice is clear: start with business goals, involve the people doing the work and design your digital landscape like an aircraft, as a tightly integrated system of systems.

Because in the end, agility, not technology alone, will define the industry’s leaders.