Aviation Week Survey Shows Preference for IT

A survey sponsored by Aviation Week & Space Technology and Computer Sciences Corp finds that aerospace companies are feeling the need to spend big bucks to stay abreast of the information technology revolution.
According to the survey, which tallied responses from 357 Aviation Week & Space Technology subscribers of senior executive rank, 93% have adopted or are adopting information technology packages as a way to stay competitive. More than half consider themselves leaders or quick adopters of information technology strategies, the survey indicates.

Some 70% of respondents listed four major factors likely to face the industry over the next couple years: pressure from prime contractors to reduce costs; outsourcing; consolidations and alliances; and rising costs for infrastructure, overhaul and repair, training and inventory. At least half also identified the advent of nose-to-tail service providers and the government's acceptance of electronic documentation.

Of survey respondents, 44% identified their companies as leaders in adoption of new technologies, 32% as quick adopters, 38% as late adopters, and 7% as non-adopters. Leaders are first to adopt such technologies, quick adopters tend to follow within a year, late adopters after two. Non-adopters are not totally technology-averse, but rather wait until a technology becomes an unavoidable industry standard before shelling out money for it.
Those companies who identified themselves as leaders or quick adopters likewise identified several goals for their e-business technologies through 2002: maintaining competitive parity, cutting costs, improving processes, and changing their business models. Late and non-adopters are either unsure how to implement e-business ideas even if they want to, or prefer a business-as-usual approach.

As for the costs of implementing new IT strategies, 88% of leaders, 82% of quick adopters and 60% of late adopters see them as an investment; merely 5% of technology leaders view the expense strictly as a cost. On the other hand, 64% of non-adopters see IT investment strictly as a cost; 32% see it as an investment.
Leaders overwhelmingly (86%) develop IT strategies in conjunction with business strategy. Quick adopters (78%) and late adopters (52%) do so as well. But only 16% of non-adopters see it that way and more than half have no IT plan at all.

Companies with revenues in excess of $5 billion were most likely to be leaders or quick adopters, though 51% of leader companies have revenue less than $50 million-small companies can be technologically adept as well. Small- and medium-size companies dominate the ranks of late and non-adopters, though. 92% percent of the non-adopters and 76% of the late adopters have revenues less than $1 billion.