Koch Aerospace, LLC has been verified as a Veteran-Owned Small Business (VOSB)
"start working on a plan B career path"
AI IMPACT ON BUSINESS MANAGEMENT...
As stated in our 'CY2035: The Future' section, Koch Aerospace believes AI and new technology will drive the following changes:
1. Data Directed: Analytics and automation run and complete all taskers
2. Reduced Staffing
3. More integrated with Prime Contractors and key suppliers
4. More options in Labor Models: The workday will be replaced by FFP deliverable schedules
5. More involved with disclosure statements and indirect spending: Pushing more efficiency
In a nutshell, the grind will be killed.
If you are currently working in Excel 50%+ of your workday, we advise you to start working on a plan B career path.
Processes will occur in the cloud and analyst, though few, will work even more intently with engineers to ensure financial matters are aligned with technical milestones, and overall program and corporate expectations.
Ultimately, we believe AI and other new technology will reduce business staff by approximately 75%. So, a business team of 10 or 20 heads would become 2.5 or 5 heads.
This is a drastic change. It will be hard for the status-quo to move in this direction (e.g., due to the impact on indirect budgets). However, this is where the industry will need to look to SpaceX and the others to push the change.
Government bids will need to carry less overhead costs, less general & administrative costs, and a lot less facility costs.
From a taxpayer perspective, this will be a huge benefit (i.e., getting more engineering cost per dollar spent).
In terms of attrition, we believe the supply chain can help re-train some of these business folks. And the supply chain needs it.
The comment about supply chains also needs to include a bolder investment by the status-quo defense companies. In our opinion, they have been bloated, and complacent over the past 40 years. It’s time for them to take on more risk proactively (i.e., via investment of profit dollars).
Moreover, the government needs to question these status-quo defense companies, 'Why didn't you work out your supply chain issues during the proposal phase? Why wait until execution?.' The tier-1 defense companies have enough resources to build relationships and investigate industry way before the proposal phase. To wait until after award is a disgrace (i.e., to the warfighter and taxpayer).