The breathtaking speed with which digitization has changed corporate processes in recent years has also affected the aviation industry. As a global aviation company, we have recognized the opportunities provided by digital transformation processes in our sector environment and have created a separate division for this purpose. This enables us to review and implement any detected opportunities step-by-step. We are absolutely certain: The consistent pursuit of digital approaches and strategies allows us to create the best conditions to sell, together with strategic partners, innovative, customer-focused products and services, including as part of new business models.This gives us a plethora of opportunities to act successfully in the long term and to sustainably act on the market.
Favorable development and production costs are necessary prerequisites for permanent competitiveness on the market. To ensure this, we intend to use current technical options and sound out future areas of innovation. The increase in "intelligent" automation of existing processes – for example through ever-more linking of data and machines – will be a central component.
Digital transformation allows us to permanently increase our process efficiency and at the same time helps us reduce costs. However, permanent competitive advantages can be realized only if we develop innovative products and services with digital content. This enables us in the long term to make a significant positive impact on our customers' business models and increase their competitiveness on the market. For example, intelligent controls and monitoring systems integrated in products allow for continuous interaction with our customers and offer them more added value. This enables us to enhance the performance of our customer companies, to permanently reduce product and operating costs and to implement new requirements.
To generate the margins necessary for economic success, we will place ever more focus on the conventional sale of products, spare parts or retrofit kits in the aviation industry. Even today, business models prevail in a range of industries, which have become possible only because of the use of digital technologies. Part of our tasks is to try and test such new business models to see if they can be applied in our sector, our own product portfolio or to potentially develop and implement altogether new forms. This includes, for example, novel models for leasing, pay-per-use, flight hour services or freemium models. In addition, our collaboration with suppliers, customers and other partners will be unceasingly unified on suitable platforms: We want to take a pioneering role for this too.
"Digital transformation" in our company can work only if at the same time we succeed in driving a "culture of digital change." This promotes agile teams and cross-functional work, but also allows for making mistakes and taking risks. Products, services, or business models: When implementing innovations throughout the entire process chain, success is determined by the prevailing mindset. The field of "digital transformation" is an operative component of the Diehl Aviation Division, but acts within the Group like a start-up company: With flat hierarchies and smart brains, who systematically scrutinize the status quo and are willing to break new ground. Such new ground is tried and tested for usefulness with agile methods (design thinking, prototyping) and a "fail fast" approach.
We here focus on opening divisional structures and supporting the executive level when necessary changes need to be initiated. Another pool of ideas is provided by the open and transparent collaboration with partner organizations such as scientific institutions, start-ups as well as networks spanning topics or industries.