How Boeing Manages Innovation - wbtoi.comfile/William... · Title: How Boeing Manages Innovation Author: xxfranklinea Created Date: 11/14/2014 7:57:30 PM

Copyright © 2013 Boeing. All rights reserved.

How Boeing Manages Innovation

Bill LyonsDirector, Global Technology

October 30, 2014

WBT – Open Innovation Luncheon

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Copyright © 2013 Boeing. All rights reserved.Copyright © 2013 Boeing. All rights reserved.

Our Vision To be the strongest, best, and

best-integrated aerospace

company in the world—now

and in the future.2


Customer Aware, Disruptively Innovative, Productivity Driven

3

Innovation Productivity

Customer Expectations

More for

Less

The alchemy of success in a more-for-less world


More than 70% improvement in fuel efficiencyR

elat

ive

fuel

use

Noi

se d

B

MORE FUEL

LESS FUEL

HIGHER

DECIBELS

LOWER

DECIBELS

70% fuel improvement and reduced CO2

90% reduction in noise footprint

EVEN

LOWEREVEN LESS

Noise footprint based on 85 dBa

1960s 2000s

New-Generation jet airplanes are exponentially more efficient

Early Jet Airplanes


Thomas Edison Had It Right:“Genius is 1% inspiration, 99% perspiration”

Technologies:

Carbon-fiber and titanium

Advanced engines

Advanced electronics, aerodynamics and systems

Speed ...

or Efficiency?

Innovation must be customer-inspired

Sonic Cruiser Mach 0.98 speed (about 15% faster)

Same fuel burn per seat as a 777

787 20% more fuel-efficient than current

similar-size airplanes

Normal speed (Mach 0.85)

5


What is Innovation?

Innovation resides at the

intersection of invention and

insight, leading to the creation

of social and economic value- National Innovation Initiative

If your cool new thing doesn't generate enough

money to cover costs and make a profit,

it isn't innovation . . . It's art


Types of Innovation

Product Process Business

Model


Innovation: A Balance


Everyone Can Innovate

Present Lean OperationsPast Operations

Productivity fuels (and funds) innovation

10


“Incremental” Doesn’t Mean “Insignificant”

All innovation must add value for customers, shareholders & company

737MAXEA-18G

787-10CH-47F Chinook

11


Demonstrators accelerate technology

Biofuel Flight

Demonstrations

Quiet Technology

Demonstrators


Designing the most efficient airplane

2020 technologies

787 technologies• Laminar flow nacelle and empennage

• Flight deck displays & functionality

• Flight controls and high lift design

777 technologies• Overall systems architecture

High span composite wing All new engine 2020 Passenger experience


Technology Applied in Autonomous Systems

Phantom Ray Phantom Eye

X-37BecoDemonstrator

X-48B BWB

X-51A WaveRider

Echo Ranger

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X-51A WaveRider


Our Challenge

Focus innovation around customers, who expect more for less

Generate greater value than the sum of our many parts

Improve development-program performance

Apply lessons learned; prevent repeat of mis-steps on future efforts

Find ways to innovate for significantly less cost

Where we were in mid-2000s

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Currently On Boeing’s Radar: Reducing the Aerospace Development-Cost Curve

Trend in Time to Develop, Build, and Test

De

sig

n, In

teg

rati

on

an

d T

es

tin

g (

mo

nth

s)

240

220

200

180

160

140

120

Aerospace Vehicle1990s

Next GenPlatform

AerospaceVehicles

1.E+03 1.E+04 1.E+05 1.E+06 1.E+07 1.E+08 1.E+09 1.E+10

100

60

40

20

0

80Automobile

1960s

Automobile1990s

Automobile Next Gen

IntegratedCircuit 1960s

Intel 8088 Intel 286 Intel 386

PentiumIntegrated Circuit

Next Gen

Aerospace Vehicle1960s

Xenon

AutosIntegrated Circuits

Similarly challenged industries are reversing the trend; we can, too

Source: DARPA

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Complexity


Creating an Innovative Culture Find ways to innovate the culture and make it unique,

in and of itself!

Promote and reward curiosity.

Acknowledge great ideas come from anywhere and create mechanisms to capture those ideas. Create a seamless, resistance-free flow of ideas.

Blend social media technologies, communication, and multiple generations to form teams capable of innovating.

Create structured innovation processes that leverage new ideas and recognize and reward those who create them. Think of idea generation as purpose generating.

Identify high potential employees with strong discipline, teaching, and learning to participate in idea generation.

Build innovation into financial decisions and systems, risk strategies, HR strategies (hiring practices).

Find ways to manage and accept failure to promote risk-taking because speed is of the essence.


What Boeing Needs In Its Innovators

Must-haves:

Technical excellence in chosen field

Strong sense of purpose and values

Global outlook, broad cultural and geographic perspectives

Ability to work as part of small and large teams

Ability to manage complexity and diversity in its many forms

Creativity balanced with analytical thinking

Managing innovation requires combination of “hard” and “soft” skills

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How Boeing Manages Innovation - wbtoi.comfile/William... · Title: How Boeing Manages Innovation Author: xxfranklinea Created Date: 11/14/2014 7:57:30 PM