Boeing Innovation article Essay Example | Topics and Well Written Essays - 250 words

Boeing Innovation article - Essay Example The Boeings decision to seek an alternative strategy was significantly based on the changes that the industry is undergoing. The current airline market is not willing to pay more for new and more advanced technologies. Because of this, the company’s strategy of saving up a number of advanced technologies for one project became disruptive and too expensive. Boeing previously adopted an incremental strategy. The approach proved costly as the company lost its market share to rival company Airbus Group NV (Ostrower 2015). A new approach was needed. The changes made on its approach extend to all Boeing’s operations. Suppliers’ contracts that represent approximately sixty-five percent of the total cost of its planes are being renegotiated. In the process of aiming for better, faster and cheaper production, the company hired Walter Odisho as head of manufacturing. Mr. Odisha was previously the head of Toyota Corp.’s. Boeing also looked for inspiration from the Toyota Company on how to automate its production. The company says these efforts have helped it save up to one billion last year (Ostrower