Digital Digest - Issue 3 (Dec 2024)

ISSUE NUMBER 3

DECEMBER 2024

DIGITAL DIGEST

BY DIGITAL FLIGHT Keeping you informed on the latest technology trends and developments

A DECEMBER DATA SPECIAL This months edition focuses around Aviation Data

THE PLANE IS ON THE CHAIN

CLEARED FOR TAKE OFF

FULCRUM360 EXCLUSIVE

ERP.AERO GUEST ARTICLE

The blockchain journey has begun, an exclusive from Skythread.

Make maximizing value from your data your goal for 2025

Revolutionizing Aerospace Parts Data

Navigating Aviation’s complex challenges: A Path forward

THIS ISSUE

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FROM THE FOUNDER

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SKYTHREAD: THE PLANE IS ON THE CHAIN

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NEW SOLUTIONS

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MAXIMISE VALUE FROM YOUR DATA IN 2025

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REVOLUTIONIZING AEROSPACE PARTS DATA

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NAVIGATING AVIATION’S CHALLENGES

FROM THE FOUNDER

In today's rapidly evolving world, businesses in the aviation aftermarket are exploring digital technology to effectively navigate and overcome industry challenges. However, the path ahead can be incredibly daunting, with a severe lack of guidance, assistance, and awareness of the current digital landscape.

We pride ourselves on curating and showcasing the very best technology from across the aviation industry. Our platform actively connects businesses seeking innovative solutions that are provided from a range of trusted partners.

We are dedicated to influencing the speed in which businesses in the aviation industry adopt digital technology.

By offering comprehensive support, insightful advice, and unparalleled access to a vast network of technology providers, we aim to empower businesses to stay ahead of the curve and unlock the immense potential that modern day technology has to offer.

Our mission is to shape the future of the aftermarket by influencing the adoption rate of digital technology.

Craig Skilton FOUNDER

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GUEST ARTICLE: SKYTHREAD

ASCIC REPORT – A SOLUTION IS READY THIS PLANE IS ON THE CHAIN! THE BLOCKCHAIN JOURNEY HAS BEGUN

With the emergence of blockchain over the past 8 years, technology has finally caught up with the business vision we call “Data for the Life of the Aircraft”. The regulators and industry trade associations like ASA have promoted “back to birth” tracking for aircraft parts since 1998, but achieving the vision has been elusive. For the past four years, SkyThread has been working across the industry to build consensus around the business issues, framing the opportunity and building the technology stack that would enable the “trusted” sharing of “validated” nonconfidential information about the history of a part.

With the release of the Aviation Supply Chain Integrity Coalition (ASCIC) report on October 9, 2024. The coalition included members from Boeing, Airbus, GE, Safran, United Airlines, Delta Airlines, American Airlines and Standard Aero. Robert Sumwalt, co-chair of the Aviation Supply Chain Integrity Coalition had these comments at the release of the report - “These recommendations will close holes and add new layers of safety to strengthen the integrity of the supply chain. We know what needs to happen; it’s time to get to work.”

Of course, the Coalition and regulators will not be recommending or endorsing any solutions designed to solve these problems.

SkyThread’s Solution SkyThread is ready to support this ASCIC report and its findings and will enable the authentication, verification and traceability of serialized aircraft parts through our industry solution to collect, validate and share aircraft part data over the life of the part. This cloud-based solution records key data about an aircraft part to provide integrity to legitimate movements of parts and to avoid errors or misappropriation of the part status and condition of the part over its life.

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SkyThread’s proprietary “state machines” are the IP that record, curate and share the ongoing status and condition of a part through the • Birth of the Part (its original manufacture) • 1st Use of the Part (assembly on aircraft) • 1st Use of the Part (delivered to airline) • Remove / Repair / Install the part in MRO • Recycling or Scrap of the Part (end of life) • Airworthiness Documents along the way Our first industry cluster has been formed and centers around rotable parts for the B787 aircraft.

KLM Engineering supports pool programs for 20 airlines with over 200 B787 aircraft. This will “post” the first 700,000 aircraft parts on the blockchain. From this base, we will support all the Tier 1 parts makers in recording the original birth records for the 787 aircraft parts flying today, and all other platforms.

These parts makers have produced over 4 million aircraft parts for the 787 platform over the past 10 years. And they deployed another 1 million parts into the spares market to support planned and unplanned maintenance activities.

Parker Aerospace has recorded birth records into the SkyThread blockchain for all its B787 parts manufactured for the aircraft platform. We’re beginning to capture part birth events on all other aircraft and engine platforms.

What Customers Say “This is a significant milestone for the aviation industry. Never have an Operator and a Tier-1 OEM been able to share this depth of data. By leveraging Blockchain technology, we can establish a comprehensive aircraft parts track and trace solution that ensures complete transparency and traceability of our parts. The system will also provide our valued customers the assurance of part authenticity through access to full part history.”

Jeff Smith Head of Digital Product Programs at Parker Aerospace Group “We are proud to be at the forefront of innovation in the aviation industry. Our partnership with Parker Aerospace Group and the implementation of this groundbreaking track and trace solution enabled by Blockchain technology will revolutionize the way we ensure the authenticity and reliability of our parts.”

Benoît Rollier Vice-President Engineering at KLM Engineering & Maintenance We are running proof of concepts for a major US airline, two global airframers and additional Tier 1 parts manufacturer(s).

Recruiting Industry Stakeholders Now! You have a role in sourcing, acquiring, receiving, repairing, distributing, removing, or installing “approved” serialized aircraft parts - let’s talk. We are ready to register Tier 1 Parts Makers – the 1st block in the chain, the manufactured part birth record along with its 8130 or equivalent tag, or CoC. Tier 1 Parts Makers – the 1st use of the part – where did it ship? - Airframe, airline, or distributors? We follow the parts into and through the FAL or parts warehouses.

Airframers and Engine Makers – the incoming inspection, management of quarantine Yand zero-hour warranty, installation on the engine or plane and delivery to airline Airlines / Operators – the induction of the aircraft into the fleet – the identification of the 1st operator or the part becomes the 4th block on the chain. This part is now “on the clock” accruing hours and cycles.

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Airlines / Operators – we will collect the status of parts on wing today (all confidential) to “snap the line” and find the specific part serial numbers on specific planes.

Distributors – we will collect the status of parts off-wing today (all confidential) to help the industry “visualize” available status and condition of available parts.

MRO and Decommission – we will collect the removal status of parts coming off wing to validate the virtual aircraft and engine configurations by serial number.

SkyThread is recruiting MRO hangars and Part 145 repair stations who have maintained these parts, engines and planes to join the chain. The non-confidential repair parameters for each part will be collected and posted to the permissioned blockchain.

SkyThread is recruiting distributors to record the new and USM parts in their inventories – not to interfere with the sales process for these parts, but to provide validation and verification of the authenticity of parts. All we have with the part today is the latest 8130 tag for that part. SkyThread is not a parts re-seller or marketplace.

SkyThread is recruiting aircraft and asset decommissioning centers to support the tracking of inbound parts on their aircraft or assets and enable the “data sharing” of parts coming off the aircraft / asset that will move into the USM markets. We have been attending the ASA / AFRA conferences to continue the industry dialogue.

What about Engines, Landing Systems and APU’s?

They are in scope. Remember, the AOG Technics documentation fraud was perpetuated on engine parts. We’ve been working with a large industry actor to frame the engine configuration lifecycle management track and trace capabilities. This proof of concept is underway with 3 large industry actors, including a major airline MRO provider.

We are engaged at some level now with 3 major MRO service providers. Discussions are underway with both Landing Systems providers and APU service providers.

What Happens to Parts in the Chain?

We’ve built the lifecycle events of an aircraft part into the blockchain. We track the events as a part travels through its life and record the data for those events on the chain. This is a permissioned data network, so if you are a relevant stakeholder to the data in question, the provider of the data will provide “permission” for your use of the data.

Permission is delivered through security in the chain. This is NOT a replacement for your existing ERP or MRO systems. We “give and get” data to and from those ERP/MRO systems to make them better as well. They can’t see what they can’t see, so our ability to bring the world to the part ecosystem improves the quality and reliability of emerging AI applications.

An important point – while the contributor of the data “owns” the data, we attribute the data to “the part” in the ledger to provide visibility to that data when the part changes ownership, status, or condition. This is a key change to how the world works today, where the recipient of the part can usually only see those activities on that part since its last installation or based on spotty documentation travelling with the part. Complex assets have better traceability, but still contain gaps, errors, unvalidated data, and lots and lots of paper in bankers’ boxes.

The sum of the parts equals a plane You remember the adage – a plane is a million parts flying in common formation”. Today, the 787 is a flying computer and it “talks to us” as it’s flying. While we are not here to compete with the airframer and analytics firms trying to intercept and interpret this operating data, we’ll be capturing other information from the aircraft, such as hours and cycles, which are critical to the spares planning, reliability analysis and early removal analysis. We’ll be applying this information to the complex assemblies on the aircraft and the individual parts within that asset and the plane itself. We’re building the blockchain from the “bottom up” at the parts level, and from the “top down” capturing parts on wing today.

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Aviation Blockchain is Here SkyThread was formed in 2021 by senior industry executives to “solve” for these important safety, aircraft availability and economic issues. The industry has been experimenting with blockchain for the past 8 years. This cycle of “Proof of Concepts” has laid down a pretty good path towards what will work and where challenges remain. But we’re now beyond “concepts” and driving for sustainable value. The solutions we’re building look good.

SkyThread for Parts – authenticates the parts at birth, finds the parts on wing or in warehouses, validates their status, and documents their provenance. It triangulates all parts data when parts enter the MRO cycle of removals, repairs, installation, and scrap.

SkyThread for Assets – solves for which parts are on which assets (engines / landing systems / APU’s) and do they carry the SkyThread parts validation and history?

SkyThread for Planes – solves for which parts and assets are on which tail numbers. And is that information validated by SkyThread?

The outcome? Over the next aircraft lifecycle, we, as an industry, will have validated and authenticated the location (on wing / off wing) and status of all the serialized parts that keep our fleets flying and / or mission ready. We are working with the industry on standards as well, leading the Independent Data Consortium for Aviation (IDCA) to build consensus around this vision and mission - see Independent Data Consortium for Aviation.

For more information, contact chuck.marx@skythread.aero

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NEW SOLUTIONS SKYTHREAD

SHOWCASING THE NEW DIGITAL SOLUTIONS WHO HAVE JOINED THE DIGITAL FLIGHT COMMUNITY.

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PENTAGON 2000

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About

About

SkyThread is a SaaS data sharing network designed to optimize serialized aircraft parts data flow across aviation stakeholders, including aircraft parts makers, airframe and engine assembly, landing systems, asset management, MRO aftermarket, MRO components repair and airlines. It is addressing the Aviation Supply Chain Integrity Coalition report on aircraft part authentication and tracking.

For nearly 40 years, Pentagon 2000 Software has been a leading supplier of a fully integrated and powerful MRO & ERP software system designed specifically for the Aerospace and Defense industries.

The company goal is to deliver complete solutions that provide full control and visibility within and across an enterprise, enabling significant improvements in efficiency, productivity and financial performance.

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GUEST ARTICLE: DATA LIGHT SOLUTIONS

CLEARED FOR TAKE-OFF: MAKE MAXIMISING VALUE FROM YOUR DATA YOUR GOAL FOR 2025

Most companies now recognize their business’s data as one of their greatest strategic assets. Ensuring you make the most of this asset, however, is not always easy. Data transformation initiatives can appear to be costly and long-term, with a mire of technical jargon and complexity – whereas business leaders understandably expect a swift return on investment.

How can you get the rapid returns you need alongside delivering strategic transformation - to build capabilities and solutions which scale with your business?

Be driven by a business-led data strategy Data initiatives should address priority use cases - the critical challenges you need to overcome, and the opportunities you want to take advantage of - linking directly to your business’s overall strategy and objectives.

The trick is in balancing the delivery of these high-value projects with the establishment of a broader data capability which lays the groundwork for later projects. This means considering a variety of elements which combine to create a framework which supports scalability, efficiency, and maturity. Then, as your catalogue of data outputs grows, creating a strong change management process; providing consistency in design across your organisation.

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Balance strategy with agility Whilst protecting live assets and data products, allow your team the freedom to adapt, experiment, and prototype. Innovation comes from being given the room to try different approaches, extract lessons from failure, and iterate in an environment which focusses on the long-term development of capabilities.

Start simple Progress with data often follows a snowball effect, where small improvements can lead to significant, positive outcomes and inspire further momentum. A common starting point for many businesses is evaluating whether critical processes are still dependent on manually updated Excel spreadsheets. The answer is likely "yes," and there are various ways to optimise these processes. Options include automating Excel reporting, shifting away from Excel to more robust tools, or training employees on advanced Excel techniques to enhance efficiency.

Don’t overlook the ‘boring’ stuff Within aviation there are a wide range of use cases aiming to leverage exciting, transformative technologies such as AI and machine learning. The benefits of these technologies is often realised when they are supported by solid data foundations – including data governance, clean and processed data, documented business logic, and welldefined KPIs to measure performance improvements. Strengthening these foundational elements is key to ensuring that AI and machine learning can deliver their full benefits.

AI isn’t just for data scientists.

The revolutionary ease of access to advanced artificial intelligence (such as large language models like ChatGPT) within the last 12-18 months means this technology can be incorporated into workflows across all areas of a company with relatively little planning, and low to no cost. Traditional training courses on how to write code, how to create formulas in excel, and how to use business focused data visualization tools like Microsoft’s Power BI are hugely augmented by immediate access to a tool which understands the language and can produce formulas or code tailored to your specific problem, on-demand. This means the ability to use data tools has never been more accessible.

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GUEST ARTICLE: FULCRUM360

REVOLUTIONIZING AEROSPACE PARTS DATA

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In the aerospace and aviation industry, precision, reliability, and timely access to parts data are essential. Fulcrum 360 is emerging as a game-changing platform designed to streamline the parts procurement process for industries such as commercial aerospace, general aviation, and military sectors.

At its core, Fulcrum 360 aggregates and visualizes millions of data points from across the industry, offering users a family-tree-style graphical interface to track and manage part relationships. The platform supports a wide range of users—from airlines and MROs (Maintenance, Repair, and Overhaul providers) to OEMs (Original Equipment Manufacturers), distributors, and other companies that serve the aircraft aftermarket.

Key Features 1. COMPREHENSIVE PARTS DATA Users can access detailed information, including part numbers, OEM names, cage codes, catalog pricing, FAA compliance data, NHA (Next Higher Assemblies), fleet information, and PMA (Parts Manufacturer Approval) alternatives. This empowers decision-makers with actionable insights that simplify procurement and inventory management.

2. FLEET & VENDOR INSIGHTS Fulcrum 360 provides fleet-specific data, allowing users to view the operational status of aircraft and identify which parts are needed most urgently. It also helps sales teams identify NHAs, alternate parts, new fleets, and operators, thereby expanding sales opportunities.

3. CUSTOMIZABLE INFO PANELS UEach user can personalize their dashboard to display the most relevant information, improving efficiency and reducing the time spent on manual searches.

4. TAILORED SOLUTIONS Commercial Aerospace: Supports airlines and MROs in managing complex parts inventories and finding alternative solutions.

General & Biz Aviation: Expands the supply network for this often-overlooked segment.

Government & Military: Provides insights into military applications, FSC (Federal Supply Codes), NIIN (National Item Identification Numbers), pricing, contracts, and more— helping users identify government and military opportunities.

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Empowering Every Employee to become an expert Employees no longer need years of experience or specialized knowledge to make informed decisions. The platform provides real-time data on parts availability, compatibility, and compliance, ensuring that even new hires can contribute effectively from day one.

GUIDED DECISION-MAKING Fulcrum 360’s intuitive dashboards and detailed information panels guide users through each step of the procurement and sales processes. This eliminates guesswork and empowers every team member to confidently handle complex tasks such as sourcing alternative parts, navigating compliance requirements, and identifying new sales opportunities KNOWLEDGE TRANSFER ACROSS TEAMS By reducing reliance on tribal knowledge, Fulcrum 360 ensures that critical information isn’t lost when key employees leave or transition to other roles. This knowledge transfer enhances organizational resilience and fosters a culture of shared expertise.

CROSS-DEPARTMENTAL COLLABORATION The platform also promotes collaboration by providing a centralized data repository that can be accessed and understood by employees across departments, including sales, purchasing, engineering, and logistics. This shared visibility ensures seamless communication and a more cohesive approach to inventory management and customer service.

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GUEST ARTICLE: RALPH MERHI ON BEHALF OF ERP.AERO

Navigating Aviation’s Complex Challenges: A Path Forward

The aviation industry stands at a crossroads. While it fuels global connectivity and innovation, it is also beset by a growing number of challenges that threaten its ability to operate efficiently and sustainably. From supply chain disruptions to compliance hurdles, these obstacles weigh heavily on the industry’s ability to scale and thrive.

Addressing them requires a combination of resilience, foresight, and the right tools to meet the moment.

Challenges Grounding Progress Across the aviation ecosystem—whether manufacturing, MROs, brokers, or distributors—the complexities are undeniable: 1. Supply Chain Bottlenecks: A turbulent global landscape has amplified part shortages, delayed shipments, and driven costs skyward, challenging even the most prepared organizations.

2. Compliance Pressure: The patchwork of global and regional regulations requires businesses to stay agile, with a system capable of tracking, documenting, and reporting at every step.

3. Siloed Operations: Fragmented departments and outdated systems create inefficiencies, making it harder to capitalize on opportunities or meet customer demands promptly.

4. Lack of Actionable Insights: Data is abundant, but the ability to translate it into strategies or solutions often feels out of reach for companies juggling competing priorities.

5. Scaling Pains: Rigid legacy systems and manual processes create barriers for businesses striving to grow or adapt to new market realities.

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These pain points aren’t just operational—they are deeply felt across the organization, impacting employee morale, customer trust, and, ultimately, the bottom line.

Real-World Impact Consider an aviation parts distributor losing bids due to sluggish RFQ response times or an MRO struggling to maintain compliance during an audit due to scattered documentation. These scenarios are more common than we’d like to admit, and their ripple effects can tarnish a company’s reputation, erode profitability, and limit market share.

Beyond the tangible losses, the inability to adapt undermines long-term competitiveness.

Turning Challenges Into Opportunities Forward-thinking companies in aviation have begun to rewrite the narrative by adopting tailored, integrated solutions. Digital transformation in this space isn’t just about keeping up—it’s about gaining a competitive edge. The right ERP system doesn’t just simplify processes; it empowers companies to transform the way they work by: Unifying Communication: Integrated systems break down silos, ensuring that every department speaks the same language and operates in harmony.

Streamlining Workflows: Automation reduces redundant tasks and errors, accelerating everything from RFQs to inventory management.

Ensuring Compliance: Centralized data management makes audits smoother and ensures adherence to strict regulatory demands.

Extracting Value from Data: Real-time insights allow businesses to anticipate trends, mitigate risks, and make data-backed decisions.

A Partner for the Journey Ahead One example of such a solution is ERP.Aero, a platform built specifically for the aviation industry. By integrating core processes like supply chain management, RFQs, marketplace inclusion, compliance tracking, and analytics, ERP.Aero doesn’t just streamline operations; it transforms them. A distributor, for instance, can respond to RFQs with unmatched speed, while an MRO can ensure seamless compliance audits—all without the inefficiencies of redundant data entry or disconnected systems.

These aren’t just theoretical benefits—they’re the real-world outcomes that help businesses scale, adapt, and thrive in a fast-moving industry.

Why Now Is the Time to Act The aviation industry’s challenges are significant, but they’re also an opportunity. Companies that invest in purposebuilt solutions are positioning themselves to lead in an era defined by agility and innovation. Platforms like ERP.Aero serve as more than just tools; they’re strategic partners in helping businesses overcome today’s obstacles and take flight into tomorrow’s opportunities.

The future belongs to those willing to evolve—and with the right systems in place, the sky isn’t just the limit; it’s the starting point.

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For those new to Digital Flight We help Suppliers & MRO’s successfully navigate today’s digital landscape of emerging technology and software solutions, through essential guidance, insights and strategy.

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DIGITAL DIGEST

BY DIGITAL FLIGHT