Which is better? To create dramatic new products that wow the market–or to incrementally improve an existing product that performs well. Boeing, of course, has done both. It took its 737 and has gradually upgraded it dozens of times over the past 3 decades, making it the best selling plane of all times. But the firm also decided to bet the farm on its all new 787, the 1st large jet to have a structure made of high-tech lightweight composites. The headline in Tribune newspapers around the country yesterday pretty much sums up how that company’s operations managers feel these days: “Dreamliner Still in a Tailspin: Delay Plagued 787 a Huge Headache for Boeing and Suppliers”. Now 3 years late, about 100 orders have been cancelled by frustrated customers, and Boeing has spent close to $10 billion in cost overruns and penalties.
So when you teach this topic in Ch.5, I have two examples to share, both from recent TED talks. These short lectures, often by famous people, present some pretty amazing ideas. Let me start with the evolutionary example . My friend Allen Kupetz just gave a TED talk on how the pencil has changed over the past 445 years. He makes a good case for why small, incremental changes in product design are as important as revolutionary new products. (Allen traces from the start of the pencil in 1565, to the change to 6-sided in 1839, to the addition of an eraser in 1858, and so on). Try to show the last 5 minutes to your class.
