BAE’s Falconworks R&D division aims to transform aerospace engineering

Siemens and BAE Systems partner in a massive digitalization effort in its aerospace manufacturing and engineering operations.

Factory of the Future’ technologies involve integrating advanced digital tools like IoT, AI, and automation to create efficient, flexible, and intelligent manufacturing processes. (Image: BAE Systems)

At the Farnborough Airshow in July 2024, Siemens and BAE Systems announced a five-year collaboration to accelerate digital innovation in engineering and manufacturing. Using Siemens’ Xcelerator platform, this partnership seeks to transform processes within BAE Systems’ Air sector through FalconWorks, its Research and Development (R&D) division. The R&D center fosters an open innovation ecosystem, connecting suppliers, SMEs, governments, research organizations, and academia to “accelerate the innovation of future air power through the development of technology and capabilities.” It unites approximatively 2,000 experts across 11 sites in the UK.

This agreement builds on a longstanding relationship, deploying Siemens’ advanced digital software, such as NX and Teamcenter to enhance sustainability, industrial digitalization, and supply chain modernization. Leaders from both companies emphasized the collaboration’s potential to drive Industry 4.0 advancements and achieve significant digital transformation in aerospace manufacturing. Iain Minton, BAE Systems’ Technology Capability Delivery Director, noted, “Siemens understands the complexities of our operating environment, so we can very quickly mature an idea to the point where it is put into practice, for example when we are looking to implement and optimize new engineering, support, or manufacturing capabilities.”

A digital engineering ecosystem for open innovation

BAE Systems’ FalconWorks is not only looking at solving today’s challenges; “it is the agile innovation powerhouse driven by […] technology teams that will develop the game-changing technologies of the future.” Simply put, it focuses on scanning the technology horizon to identify and develop groundbreaking building blocks of the future in the Aerospace and Defense sector. Maintaining an edge in such competitive landscape implies developing industry standards, working with regulators to ensure these are acceptable to the society from a safety and sustainability perspective, while focusing on effective routes to market for successful commercialization.


Fostering an open innovation ecosystem, the company embarked on a multi-year strategic investment in Digital Engineering (DE) to digitalize its systems engineering and integration capabilities, “investing in digital infrastructure and virtual, collaborative Digital Engineering Capabilities Labs (DECL) to drive rapid innovation, state-of-the-art digital technologies, and cloud migration.” This includes collaboration with SMEs, academia, legislators, and industry leaders, along with co-funding start-ups to develop new technologies.

Per a 2020 whitepaper, BAE systems elaborated on its Advanced Integrated Data Environment for Agile Manufacturing, Integration and Sustainment Excellence (ADAMS) reference architecture to fulfil this vision: “this digital enterprise is built on a model-based, integrated development or data environment that supports multi-disciplinary, multi-organization stakeholders and leverages product-line reference architectures and a shared model library to develop, deliver, and sustain a system through its lifecycle.” Clearly, the digital ecosystem is only an enabler, part of a data layer foundational to drive process and product innovation.

Aerospace digital twins and data management

PLM serves as the backbone, integrating technologies, data, and processes to ensure seamless information flow across business functions and the entire product lifecycle—from concept and design to manufacturing, maintenance, and recycling. PLM processes require connected data flows across the manufacturing and extended enterprise ecosystem. Through integration and workflow automation, all product data, from design to production, must be digitized and interconnected, facilitating seamless communication between systems, machines, and teams. Such integration allows for real-time monitoring, data-driven decision-making, and automation, ensuring that the factory operates efficiently and can quickly adapt to changes in demand or production requirements.

Additionally, PLM supports continuous improvement by enabling feedback loops from the factory floor back to design and engineering, leading to optimized processes and product quality. For instance, this includes the implementation of advanced manufacturing techniques, such as additive manufacturing, 3D printing, and automated assembly, connecting CAD and software data with production processes by ensuring that all design and manufacturing data are centrally managed and accessible. In the context of BAE’s vision, PLM can facilitate the integration of Digital Twins, virtual representations to allow real-time monitoring and optimization of manufacturing processes—ensuring that the factory can respond dynamically to changes and demands. Aerospace Digital Twins are crucial for driving Industry 4.0 by enhancing efficiency, reducing costs, driving quality adherence, compliance, and sustainability. The top five Digital Twins essential for this purpose include:

  1. Product Digital Twins: Represent physical aircraft or components throughout their lifecycle, enabling real-time monitoring, predictive maintenance, and performance optimization to reduce downtime and extend asset lifespan.
  2. Process Digital Twins: Model and optimize manufacturing and assembly processes, allowing for quick identification of inefficiencies, waste reduction, and overall production quality improvement.
  3. Supply Chain Digital Twins: Provide a real-time, end-to-end view of the supply chain, managing disruptions, optimizing logistics, and ensuring timely delivery of components.
  4. Operational Digital Twins: Monitor in-service aircraft and systems, enabling optimization of flight paths, fuel consumption, and maintenance schedules for better performance and reduced costs.
  5. Human Digital Twins: Simulate interactions between humans and machines, optimizing human factors, enhancing training, and improving safety by modeling human responses to various scenarios.

Connected, sustainable asset optimization

A connected intelligent factory is a data-driven manufacturing environment that uses advanced automation, real-time analytics, and interconnected systems to optimize aerospace component production, assembly, and maintenance. The Aerospace industry strives to balance cutting edge innovations to foster competitive advantage with through-life optimization of complex assets to effectively capitalize long-lifecycle products. Asset compliance traceability and throughout monitoring is essential to enable Aerospace and Defense, and other heavy regulated operations, supporting new business models—from product development to full in-service operations management.

To that effect, BAE Systems’ Digital Intelligence division acquired Eurostep in 2023 to accelerate the development of its digital asset management suite, PropheSEA™, a platform to “consolidate and share […] complex asset data securely, allowing assets to be managed proactively, reducing operating costs and maximizing asset availability.” Mattias Johansson, Eurostep CEO, highlighted that “Eurostep has collaborated with BAE Systems for many years with […] ShareAspace sitting at the heart of Digital Intelligence’s Digital Asset Management product suite [to help organizations] securely collaborate across the supply chain and cost effectively manage their assets through life.” Regulators also require through-life carbon footprint measurement, which can be difficult to forecast with products whose asset life can span 40 to 50 years.

As presented in one of the ACE conferences championed by Aras in 2016, Kally Hagstrom, then Manager of Information Systems with BAE Systems, explained why complex long-lifecycle products require a PLM strategy that enables high-level of resiliency. BAE Systems then initiated the implementation of Aras Innovator alongside its legacy Teamcenter platform to consolidate several PLM business capabilities, from requirements to change management, systems engineering, supplier collaboration, process planning and MBOM management, document and project, as well as obsolescence management. Clearly, based on the recent Siemens partnership extension, the legacy Teamcenter environment is also there today at BAE Systems, regaining ground in the maintenance, repair and overhaul (MRO) space and/or expanding further into downstream manufacturing digitalization. Furthermore, it would be interesting to hear if/how BAE Systems is possibly driving the coexistence of multiple PLM platforms in its DE ecosystem to drive open innovation and manufacturing, possibly leveraging its 2023 investment in Eurostep.

To paint the full picture, it would be necessary to dig more into how BAE Systems collaborate with its supply chains and manage its intellectual property. This would also comprise a broader understanding of how the OEM connects the dots across its PLM, ERP and MES landscape to drive a truly end-to-end digital and data connected landscape. By enabling sustainable design and efficient resource management, integrated PLM can help reduce the environmental impact of aerospace manufacturing. This aligns with BAE’s broader goals of innovation and sustainability, ensuring that BAE Systems’ Factory of the Future is both technologically advanced and environmentally responsible.

Written by

Lionel Grealou

Lionel Grealou, a.k.a. Lio, helps original equipment manufacturers transform, develop, and implement their digital transformation strategies—driving organizational change, data continuity and process improvement, managing the lifecycle of things across enterprise platforms, from PDM to PLM, ERP, MES, PIM, CRM, or BIM. Beyond consulting roles, Lio held leadership positions across industries, with both established OEMs and start-ups, covering the extended innovation lifecycle scope, from research and development, to engineering, discrete and process manufacturing, procurement, finance, supply chain, operations, program management, quality, compliance, marketing, etc.

Lio is an author of the virtual+digital blog (www.virtual-digital.com), sharing insights about the lifecycle of things and all things digital since 2015.