Architectural Disruption in Aerospace

Distinctive technology and customer / supplier relationships are currently the primary sources of competitive advantage in the Aerospace industry. Modular Open System Architecture (MOSA) requirements represent a significant disruption to this mode of competition. The United States Department of Defense intends to accelerate the rate of aerospace innovation and inject additional competitiveness into the procurement process through the modularization of its products and effective intellectual property management. This combination of architectural disruption and new customer capabilities has the potential to reduce the industry's opportunity to capture value from innovative technologies or a position as first supplier. Historical examples such as Polaroid and IBM demonstrate the organizational paralysis that often results from disruptions in product architecture. The competitive formula becomes ingrained in the processes, resources, and culture of mature companies and is no longer explicit knowledge, which limits the company's ability to develop the capabilities required to compete in its new environment. Competing in a MOSA environment will require the development of new organizational capabilities such as rapid experimentation, fighting standards wars, and protecting system-level knowledge. Defining the disruptive threat and the foundations of current core competencies will enable firms to develop the organizational capabilities essential for this shift in competitive context. The author will present several historical examples of architectural disruption, a framework for evaluating the disruptive change, and an identification of organizational anchors that may hinder a particular competitor's ability to respond to MOSA. The goal of the thesis is to start a dialogue within an identified incumbent with in hopes of beginning the organizational transformation required to effectively compete in this new era. Thesis Supervisor: Michael A M Davies Title: Senior Lecturer This page has been intentionally left blank _ ____~ _I *LI____I_~__~_LI~~ ___1* 1^ _r__l___I_~_~______ 1____1_ ___1 ~1