There’s been a lot of news lately about the rise of vertical enterprise applications, or applications that are made for specific industries. The vertical software business is projected to grow at over 11% a year through 2030, and a recent article by Forbes called SaaS vertical applications the “next wave in business software.”
What’s behind this interest in vertical applications? Part of the story is SaaS (Software as a Service), because it has lowered the cost of entry for enterprise applications. There’s less risk and cost for companies that don’t want to maintain their own on-premise systems and IT teams.
But what I want to focus on here is the other half of the story—the value of a vertical application, particularly when it comes to Manufacturing Execution System (MES) applications for the aerospace & defense (A&D) industry. In some ways, the benefits of a vertical MES are obvious. A tool that’s designed for your specific task will work better than one that isn’t. But how much better? Is it worth the trade-off, say, of having the same vendor for both ERP and MES? And does the A&D industry have special requirements that demand a special solution?
Why manufacturing needs a specialized solution
Let’s start with manufacturing in general. There used to be good reasons for choosing the same provider for both ERP and MES, but those reasons have mostly disappeared. Integration between different vendors’ systems is relatively easy now–or should be—and the SaaS option has completely changed the risk equation.
Meanwhile, there are plenty of reasons to choose a best-in-class application from an MES specialist. Manufacturing is a complex and dynamic activity, regardless of the specific industry. It’s full of time-sensitive steps and potentially costly delays. Manufacturers need an MES solution designed specifically for manufacturing, not an ERP extension. Record-keeping is nothing like managing complex factory floors. They are different worlds, even though they have many touchpoints.
That’s true for manufacturing in general. Now, step onto the A&D shop floor, and the need for specialization becomes even more obvious.
A&D: the most complex manufacturing sector
There’s no industry with greater complexity and higher stakes than Aerospace & Defense. A large aircraft can have millions of parts, and a manufacturer may work with literally thousands of suppliers and partners. Every action throughout production and testing must be “by the book” and accurately documented with required reviews and sign-offs. It doesn’t end with production, either. You have to maintain detailed histories of servicing and repairs for the life of the product.
Of course, A&D is one of the most heavily regulated industries. Standards such as AS9100 Rev D require quality management systems covering everything from product safety and risk management to counterfeit parts prevention. The defense sector has its own specific regulations, like the Defense Federal Acquisition Regulation Supplement (DFARS) and Cost Accounting Standards (CAS).
Addressing this level of complexity and regulatory oversight requires an intimate knowledge of the industry. A general-purpose MES will never have the built-in roles and functionality that A&D users need, especially when it comes to the details of tracking, regulatory compliance, work instructions, and signoffs—details that are make-or-break for A&D manufacturers.
Yet as compelling as these points are, there’s still one more reason to choose an MES specifically made for A&D.
AI that understands Aerospace & Defense manufacturing
AI is playing a growing role in manufacturing, analyzing information and even making decisions. According to Bain & Company, 75% of advanced manufacturing companies are prioritizing AI adoption to improve productivity, maintenance, and quality control. The A&D industry is no exception.
At iBase-t, we’re using our domain knowledge, A&D expertise, and years of customer experience to create AI that “understands” A&D manufacturing. We’re building AI into our products now and will highlight Solumina Digital Subject Matter Expert (SME) at our user conference this Spring.
This is only the first step in providing the A&D industry with AI that accelerates learning and performance across the workforce. As older workers retire, AI enables the capture and transfer of institutional knowledge to newer employees. The importance of AI is only going to grow, too. In the coming years, A&D manufacturers will need the most advanced AI available for their operations–and that is certain to be a purpose-built solution.
There are many factors to consider in choosing an MES solution, from cost and convenience to functionality and future potential. But if you’re in A&D, the vendor’s understanding of your industry’s unique manufacturing – not just engineering – challenges could be the most important factor of all. It will decide how well the application fits your needs today, and how effectively it will grow with you in the future.
A vertical application is a good idea in any industry, but in Aerospace & Defense manufacturing, it’s a necessity.
