Solving complex A&D challenges through digital transformation with IFS

The aerospace and defense (A&D) industry is at the intersection of national security, global collaboration and advanced engineering, a space where operational excellence is a necessity. Organizations are under constant pressure to modernize, yet every transformation must operate within a tightly controlled environment shaped by export regulations, security clearances and geopolitical constraints. Unlike other industries, digital transformation in A&D cannot be approached with a “move fast and iterate” mindset. It requires precision by design, where compliance and operational performance are built-in from the outset.

As enterprise resource planning (ERP) platforms like IFS Cloud become central to enabling this transformation, the real challenge is how to modernize at scale without compromising control. The following explores the most pressing A&D challenges and how to address them in practice.

The challenges in the A&D industry and how to address them

Challenge 1: Data segregation

A&D organizations must manage a complex mix of classified, International Traffic in Arms Regulations (ITAR)-controlled and commercial data. Regulations such as UK export control laws and ITAR impose strict requirements on data access, storage and transfer, often across multiple jurisdictions.

The challenge arises when data segregation is treated as a configuration task within the ERP system. In reality, this approach falls short, data segregation is not purely a system configuration issue rather an enterprise architecture problem. Logical controls alone are often insufficient, creating exposure to compliance breaches.

Resolution:

• Treating data segregation as an enterprise architecture priority, not a system setting
• Designing segregation upfront across data classification, user clearance levels and legal jurisdiction
• Implementing physical or tenant-level separation where required
• Aligning early with security teams and export control stakeholders