Digital transformation is a critical focus for the Aerospace and Defense (A&D) sector as organizations seek to improve operational efficiency, enhance system integration, and maintain competitiveness in a rapidly evolving technological landscape. With increasing reliance on data-driven systems, automation, and advanced analytics, A&D firms are exploring new ways to modernize processes while ensuring security, compliance, and reliability.
At the Empowering Beyond Summit 2025, a compelling panel brought together leaders from across the Aerospace and Defense ecosystem to examine how this highly regulated sector is adapting to a new era of digital transformation. Moderated by Avasant Partner Naresh Lachmandas, the session featured insights from Will Setiyawan (Northrop Grumman), Kevin Ruggiero (Parsons), David Whitaker (General Atomics), and Patrick Tremblay (DXC Technology). As global volatility and technological change continue to accelerate, the industry faces mounting pressure to modernize while maintaining operational and security integrity.
The Aerospace and Defense sector stands apart, shaped by long product life cycles, complex data environments, and high levels of regulatory oversight. While the industry consistently delivers breakthrough innovations, it must do so within large, diverse, and highly structured operational frameworks. As Will Setiyawan, Senior Director at Northrop Grumman, shared, “We’re producing everything from satellites to millions of SKUs over time.” This range highlights the scale and intricacy of operations and reinforces the importance of modernizing core systems to support agility, visibility, and efficiency across programs.
Modernizing the Core: Reducing Complexity in Foundational Systems
The discussion began with the critical need to simplify the complex systems that define traditional Aerospace and Defense operations. Built on long product lifecycles and siloed platforms such as PLM, ERP, MES, and OT, these environments are increasingly unsustainable in a world that demands real-time agility.
Will Setiyawan outlined Northrop Grumman’s efforts to establish a unified digital thread. “We want the data to flow from the customer all the way through to the supply chain, without friction,” he stated. “That requires simplifying the architecture first.” This approach moves beyond operational efficiency to support adaptability and visibility. “If your buyers can see supplier performance clearly, they can act before disruption hits,” he added.
As legacy infrastructures evolve, the next challenge becomes managing data integrity while expanding globally.
Cross-Border Operations: Enabling Secure Growth
Expanding international demand for defense technologies brings new urgency to data governance. David Whitaker of General Atomics detailed the challenges of operating in allied nations, where stringent security protocols must be preserved.
“We have had to embed data protection and access rules right into our ERP and OT systems,” he explained. “It is not just about locking down sensitive information. It is about knowing who can see what, and where.”
This is especially vital in organizations with multiple levels of clearance. Aggregated datasets can inadvertently create exposure to classified material. For General Atomics, this risk has driven the adoption of fine-grained access controls and rigorous data tagging protocols. The panel emphasized that these measures are not discretionary. They are foundational.
Securing Emerging Capabilities: Gen AI in the Defense Context
As the discussion advanced, attention shifted to generative AI. While many industries adopt these tools rapidly, Aerospace and Defense organizations are building secure enclaves to extract value without compromising compliance.
David Whitaker explained how General Atomics deployed Gen AI within a FedRAMP High-certified environment. “Our data does not leave our environment, but we still gain insights across multiple programs without compromising security,” he noted.
Kevin Ruggiero of Parsons highlighted the organizational challenges of merging commercial agility with defense-grade control. “The key is not a one-size-fits-all solution,” he stated. “You need to create enclaves tightly governed systems for sensitive work and more flexible frameworks elsewhere.”
Panelists underscored the importance of training and cultural change. Kevin warned, “You can have the best tagging program in the world, but if the users do not understand it, the system breaks.”
Will added, “Even within the company, different programs have different clearance levels. One piece of data may be safe alone but classified when combined with others. That’s why adoption is slower but we’re learning.”
David emphasized the human element. “We have annual security refresher training, and now we’ve added a Gen AI component. When AI emerged, everyone wanted to use it. But without guardrails, people can unintentionally expose code or IP. Training is key.”
Another recurring theme was the need for continuous workforce education. As David Whitaker shared, General Atomics now requires annual training on AI usage and data classification. “The weakest link is still the people,” he said, stressing the need for profuse and repetitive communication to reduce accidental data exposure.
With secure adoption of emerging technologies such as generative AI becoming a reality, panelists highlighted that the next critical step is a thoughtful and intentional approach to transformation. Successfully integrating new capabilities requires not only technological safeguards but also alignment across leadership, processes, and culture. This strategic execution ensures that organizations can navigate complexity, manage risk, and realize sustained value from their modernization efforts.
Strategic Execution: Leading with Intent
In closing, the panel reinforced that meaningful transformation requires a deliberate and measured approach. Patrick Tremblay emphasized the importance of aligning corporate leadership with ground-level execution.
“Be bold, but be deliberate,” he advised. “Build a framework where you can roll out AI or ERP modernization incrementally, measure impact, and course correct.”
Kevin Ruggiero underscored the foundational role of data quality in any transformation effort. “There’s nothing yet that slays the garbage-in, garbage-out monster,” he said, emphasizing that no matter how advanced the tools, whether through AI, ERP, or analytics, the results will only be as good as the data driving them.
Building on that, Will Setiyawan encouraged the industry to think beyond its traditional constraints. He spoke about embracing “the art of the possible,” noting that hearing from other sectors had inspired him to adopt a bolder mindset. “Security is paramount, but there’s more we can do,” he added, pointing to the opportunity for responsible innovation.
This sentiment captured the ethos of the panel. Innovation in Aerospace and Defense cannot be rushed, but it cannot wait either. The path forward is neither reactive nor reckless. It is structured, intentional, and precise.
Key Takeaways
- System simplification is essential for establishing a secure digital thread across the product lifecycle.
- Data classification and role-based access are foundational for multi-clearance and global operations.
- Generative AI is being deployed within secure, closed-loop environments to unlock insight without breaching compliance.
- Successful transformation requires alignment between leadership strategy and operational capability.
- Ongoing training is vital to ensure compliance, security, and effective technology adoption.
Conclusion
As Aerospace and Defense enterprises confront geopolitical uncertainty, global expansion, and technological disruption, digital transformation has become a strategic imperative. It must be approached with discipline, but also with courage. The leaders shaping this future are not waiting for certainty. They are building frameworks that balance innovation with accountability, risk with readiness, and scale with precision.
In the words of Patrick Tremblay, “Transformation is not a switch to flip. It is a journey, and we must take it step by step.”
In Aerospace and Defense, innovation must fly but never without a plan.
By Faith Persad, Intern
