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← Partner Risks - How to Build a Startup

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Showing Revision 3 created 05/25/2016 by Udacity Robot.

  1. So this sounds great. Partner sound wonderful but what could go wrong with this?
  2. Let's look at partnership risks.
  3. Now everybody talks about all the great things they have in partnerships
  4. and large companies partner all the time.
  5. Let me start with the large company partnership risks.
  6. One of the greatest partnership disasters probably ever.
  7. Now, I am in the 21st Century probably including the 20th was when Boeing was building the 787,
  8. the new jet airplane made out of carbon fiber and not only was it a unique technology advanced
  9. but at the same time, they've decided to do something
  10. that no other airline manufacture had ever were done.
  11. What they decide to do was instead of Boeing now building all the parts,
  12. they were going to outsource all the manufacturing risks to a series of partners,
  13. spread around the world, and while Boeing's unions and machinists argued,
  14. no they missed 50 years expertise on how to build these components.
  15. Boeing because of other pressures, both financial and union
  16. decided that it would be a much smarter strategic move to have people building
  17. the center fuselage in Italy and the tail fin somewhere else,
  18. and the stabilizers somewhere else, and the forward fuselage by another vendor
  19. until all of a sudden, their supply chain was scattered around the world
  20. and at least half these parts being made by people who've never made airplane components.
  21. It will look great on paper. It was going to save them enormous manufacturing cost.
  22. It turns out to be the worse business decision of the 21st Century,
  23. because it was made by accountants and not by engineers.
  24. It turns out their partners delayed the program by about three or four years,
  25. because there was a tremendous amount of rework--
  26. parts didn't fit, parts didn't work, and this wasn't your living room furniture.
  27. These weren't devices that we're going to carry hundreds of people on the earth
  28. and there was no margin for error.
  29. It turns out Boeing actually had to go buy back a good number of these manufacturers
  30. and bring back their expertise and oversight, which they assume wouldn't be necessary.
  31. So, I just used this as an example not to bash Boeing,
  32. but to understand that even the smartest companies
  33. sometimes made partnership decisions that look good on a spreadsheet,
  34. but at the end of the day, partnerships are not driven by spreadsheets.
  35. They are drive by technical competence customer needs,
  36. and the ability to let her final finished quality product.