1、Defense goes digitalREPORTWhat lessons can other industries learn?Europes defense sector has reached a pivotal moment.Following years of limited investment in digital capabilities,governments are now committing substantial new funding to security and defense programs.Between 2019 and 2023,Europes de
2、fense IT spending increased from 17.08 billion US dollars to 19.39 billion US dollars,representing a compound annual growth rate of 3.2 percent.This restrained growth has left many organizations with fragmented processes and aging IT landscapes,particularly ERP systems nearing the end of their opera
3、tional life.Industry participants now face the dual imperative of rapidly expanding production capacity while addressing the structural digital gaps that limit efficiency,scalability,and resilience.This puts top management in a difficult position.With full focus on increasing output,few believe they
4、 have the time,energy,or resources for a large-scale ERP overhaul,so transformation is often pushed down the priority list.Drawing on Roland Bergers and SAPs expertise,this report offers a path forward.It highlights the unique characteristics of the defense sector and explores the roles of technolog
5、y and cybersecurity.It tackles the key trade-off between standardization and harmonization(to improve efficiency,cut costs,and speed transformation)versus customization(to meet compliance needs and ensure competitiveness).Above all,it shows how moving to modern ERP platforms like SAP Cloud Business
6、Suite can enable,not hinder,operational scale-up,making operations more efficient and sustainable.The report closes with concrete recommendations for executives who must act decisively in todays economic and geopolitical climate.Many of the transformation principles outlined here also apply beyond t