Author Topic: BA - Boeing  (Read 13747 times)


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Re: BA - Boeing
« Reply #50 on: September 21, 2019, 03:00:11 PM »

Money quote:

You are in a mature industry that is no longer innovative; itís a commodity business. The last great innovation capable of driving major growth in aviation was the jet engine back in the 1950s, and every technological advance since has been incremental. And so the emphasis of the business is going to switch away from engineering and toward supply-chain management. Because every mature company has to isolate which parts of its business add value, and delegate the more commoditylike things to the supply chain. The more you look to the market for pricing signals, the more the role of the engineer will shrink.

I haven't read the article, but based on that quote, the premise seems to be false. This seems to equate engineering and innovation with big step changes. These are rare, and most of innovation and engineering has always been more iterative and incremental. Some look down on that, but that's where a lot of progress comes from, and the problems can be just as hard as anything out there even if the results aren't always as flashy. People overrated novelty, and underrate making stuff just better and cheaper and more efficient and scale...

I think the point of the quote is that as management / ownership views engineering as more of a cost center and less of a source of revenue growth, they begin to minimize the importance and capital allocated to engineering, focusing instead on minimizing costs throughout the value chain to improve profitability.

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