Airbus Accelerates Efficiency Through Data‑Driven Digital Transformation

Key takeaways from this article include the following:

• Organizations embarking on digital transformation must prioritize data‑driven strategies to refine their existing processes.
• Although many companies emphasize sensor deployment in IoT initiatives, the real productivity gains come from establishing solid data hygiene.
• Productivity gains are elusive without dissolving data silos and building a foundation of high‑quality, well‑structured, secure data.
• Digital transformation fails without parallel change‑management programs that retrain existing staff into information‑driven professionals.

While digital transformation is an aspirational goal for many enterprises, some have turned tangible operational change by embracing disciplined data‑driven strategies.

Leiden‑based Airbus, a global manufacturer of commercial and military aircraft, turned to data‑driven digital transformation to resolve customer pain points such as delayed deliveries and shipping challenges.

“Customers waited a long time to receive airplanes,” said Anes Hodžić, Airbus’ Group Vice‑President for Digital Transformation.

Airbus sought greater efficiency and a customer‑centric focus, but data‑quality issues obstructed progress. Data was scattered across the organization, stored in disparate formats, and poorly integrated.

The company chose to treat its existing data with greater discipline rather than merely accumulating more data—a common pitfall in IoT projects. Siloed data needed integration and standardisation to unlock actionable operational insights.

By consolidating data across the production floor, warehouses, supply chain, and partner networks, Airbus gained a holistic view of its operations.

Executives, including Hodžić, began asking: how can we develop a disciplined, data‑driven digital transformation strategy?

“What if we could access massive amounts of data that are structured, formatted, and secured appropriately?” Hodžić recalled during a session at Industrial IoT World 2020.

Recent research underscores the importance of data governance and management in supporting IoT initiatives. According to IoT World Today’s 2020 IoT Adoption Survey, 29% of respondents indicated that IoT investment would focus on data management, ranking second only to operational efficiency.

Industry observers highlight that clean data and integration are pivotal for IoT success. “As IoT and related technologies of the Fourth Industrial Revolution become mainstream, executives must recognise the value of interconnected systems,” wrote Greg Corlis, Managing Director for Emerging Technologies at KPMG US, in a piece outlining four steps to harness IoT for trusted customer and supplier relationships.

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Data Discipline Key to IoT Deployments

While many companies aim to deploy a plethora of sensors and collect vast amounts of data, Airbus discovered that the first step to a successful IoT initiative is to build a rock‑solid data foundation.

Rather than focusing on new data points, Airbus prioritized organising and cleansing its existing data set.

“With a solid foundation, strong data governance, and effective data‑sharing processes, the benefits scale exponentially,” Hodžić said. “Before deploying additional devices on the shop floor or aircraft, we consolidated, cleaned, and prepared all available data—machine logs, flight‑test reports—that had previously gone unused. Preparing and cleaning data is critical before further deployments.”

To achieve clean data, Airbus dismantled data silos across business units, extracting information from isolated repositories. “The key is to extract data from silos,” Hodžić advised.

Integrating key data was essential for achieving the productivity improvements promised by Industry 4.0. “Industry 4.0 initiatives promise 30%‑40% productivity gains, but we have not yet seen significant improvements. Productivity gains materialise only when data from multiple domains is unified and the customer perspective is central,” Hodžić explained.

Experts agree that data governance is critical to IT project success—or failure. “If data is unreliable or of poor quality, sub‑optimal business decisions follow,” said Bill Tomazin, Managing Partner, West Region and National Audit Solutions at KPMG US, in “Data Governance Is Risk Number One.”

Navigating Change Management by Focusing on People

During its four‑year digital transformation journey, Airbus recognised that data‑driven transformation required significant organisational change beyond data accumulation. It involved breaking silos and reskilling employees.

Airbus addressed gaps in data analytics skills, leveraging change‑management processes to upskill staff in information‑ and analytics‑driven roles.

“From the outset, especially in IIoT domains, we envisioned transforming our workforce from blue‑collar to white‑collar. By digitalising traditionally manual environments, we can turn operators into knowledge workers—information workers—ready to tackle an increasingly complex reality,” Hodžić explained.

The skills gap in data analytics, cybersecurity, and network connectivity has long challenged IT organisations. The 2020 IoT Adoption Survey found that 27% of respondents foresee expertise shortages as a barrier to IoT projects.

COVID‑19 accelerated reskilling efforts; a survey found that 42% of companies increased reskilling initiatives post‑pandemic.

Ultimately, Hodžić stressed that data‑driven digital transformation is a marathon. Airbus embarked on this journey four years ago, yet achieved tangible ROI through incremental wins that kept the vision alive.

“Prepare for the marathon, but deliver in sprints—continuous wins—while maintaining a long‑term vision,” Hodžić advised. “Couple short‑term victories with a clear vision to anchor data‑driven transformation. This overarching strategy will guide the workforce through long‑term efforts.”

“Provide people with a north star, clarifying where the organisation is headed and what is possible,” he added.