Building A Disruptive Innovation Capability

Although Airbus has a diverse portfolio consisting of commercial aircrafts, helicopters, and defense and space business, it must build new technologies and foster an innovation-centered culture to meet the demands of a rapidly changing aerospace industry. Disruption is taking place at all levels of the company.

In the commercial aircraft sector, there is a need for new aircrafts that emit less CO2 and are environmentally friendly. The CEO of Airbus has set an ambitious goal for a zero-emission hydrogen-based airliner by 2035, which at this time still feels like a mission impossible.

Similar environmental concerns exist in the helicopter industry, where safety is also a priority. Urban air mobility is experiencing disruptions with the emergence of electric-driven quad copters and other similar vehicles. In defense and space, startups like SpaceX are transforming the industry with new solutions. The commercialization of space in the next decade will see more small companies innovating and launching their own satellites.

Innovation Instruments

The Pisano model by Harvard professor Gary Pisano offers a simple framework for creating innovative business models. It categorizes innovation based on changes in the business model and technology. The Technology Maturation quadrant refers to incremental improvements within the existing business model, while Radical Technology Disruption occurs when significant advancements are made while still maintaining the same business model.

Business Disruption happens when there is a shift towards a new business model with current technologies. Finally, Architectural Disruption is the result of both technology and business model changes.

At Airbus, they cover all four quadrants through different innovation instruments.

Through technology intelligence through scouts stationed in different regions like North America, India, Singapore, China, and Europe, they keep an eye on the developments and trends around the world. The scouts report that information back to HQ and the relevant areas, known as Fast Tracks, responsible for the Technology and Innovation roadmap. The scouts challenge the Fast Tracks by providing new inputs and identifying any gaps between the current and desired future state.

Startup engagement is another key aspect, with the establishment of the venture client model years ago. This approach involves sourcing technology externally to speed up innovation and bring in ideas from outside. It focuses on quickly identifying digital solutions for existing problems in the organization within a six-month timeframe. Incubation also takes place, specifically for internal ideas that arise when transitioning from the existing business model to a new one.

Airbus' corporate innovation governance is based on coordinating and aligning different business units. Currently, decision-making relies heavily on relationships between individuals, but a more data-driven approach will be adopted in the future. Given the globally distributed innovation centers, effective governance is paramount to ensure synchronization and maximize value.

Navigating goal setting amidst multiple activities is a challenge. One of the improvements Airbus has implemented is a data-driven approach to bring transparency to all ongoing activities. They are building a dashboard that will be visible to everyone in the organization, providing clear information about which Innovation Centre is working on which projects and with what resources. The goal is to have a centralized view of the different initiatives and contributors.