Technological Integration in the Aerospace Industry: A Strategic Approach Using the Adaptive Dynamic Strategic (ADS) Model

The Adaptive Dynamic Strategic model (ADS) outlined in this chapter was conceived and designed to support strategic decision-making in organizations operating within Complex Products and Systems (CoPS). The dynamics of innovation require an initial focus on technological development in the aerospace sector. Growing expectations regarding future demand for new technologies guide the technology strategy, directing Research and Development (R&D) investments. Failure to align with this approach significantly elevates the level of risk exposure. By adopting Dynamic Capabilities (DC) as a theoretical framework and using new business models as a unit of analysis, this research unveils Embraer's evolutionary trajectory, transitioning from technological development to the integration of new business models. Specifically, the chapter emphasizes the progression of Embraer's efforts as a Prime Contractor from the AMX program to the KC program. The chapter also highlights the e-VTOL program, evolving from a new business model for a new organization named EVE, a subsidiary of Embraer. This chapter explores how ADS Model may contribute to risk mitigation by enhancing the coupling between sensing, seizing, and transforming when applied to the context of the innovation process in CoPS. The approach advocates exploring opportunities to improve the balance between integration and proprietary strategies within the industry value stream.