Prof. Clayton Christensen coined the terms "disruptive technology" and "disruptive innovation," and noted that companies have difficulty creating significant innovations for a variety of reasons, including bureaucracy and mental sluggishness. Clayton's term has long since spread outside academic circles, and has become a slogan for startups determined to change entire industries. There are a variety of examples in which companies devised a disruptive innovation, including Uber, which became the world's largest taxi company without owning a single taxi.
Another segment in dire need of innovation is civil aviation. The existing players invest in internal developments, while realizing that the next big thing is likely to be discovered in a startup that none of them knows about yet. In the near future, the navigator program is slated to get underway - an accelerator to be operated by Cockpit Innovation Hub, the venture capital arm of El Al Israel Airlines Ltd. (TASE: ELAL), and by JetBlue Technology Ventures, which belongs to the JetBlue low cost airline.
Cockpit CEO Henry Chen Weinstein explained to "Globes" what the new accelerator is planning to do. "We want to open a big door for entrepreneurs in the fields of aviation and tourism through which they can pass in order to make a significant change in the industry. We have constructed a platform with an equivalent entity like JetBlue - a bridge connecting Tel Aviv with Silicon Valley," he said.
The first class of the accelerator will be launched on Thursday in an official ceremony, and will begin operating in late October. Four to six companies are slated to take part in the accelerator, with the first three months of activity being in Tel Aviv and the final month in Silicon Valley. The program will provide various services for startups, and provide them with $50,000 in initial financing in exchange for 5% of the shares in each startup. In the framework of the venture, the companies will hold a demo day, in which they will present their developments to airlines, airports, aerospace manufacturers, and other parties likely to become customers. The startups in the accelerators are likely to receive additional support if the pilot projects they display are installed by customers.
"Globes": What technological changes can change the civil aviation industry?
Weinstein: A very broad range of changes. We're talking about technological things, and are trying to solve major problems in order to create big companies. It could be services at an airport, in the waiting hall, and the plane itself, of course, or anything involving cargo and access, as well as both cyber and physical security at airports. Other areas include pre and post-flight customer service. We're also looking for companies dealing with fuel consumption, or offering a better quality connection with the passengers - at all times.
"All these products require a customer, and the customer is frequently an airline, not necessarily El Al. Before Boeing says 'That's something that interests us,' they'll want to hear that there is a need for it."
If there's a company with a successful solution, will you allow it to sell it to companies other than El Al and JetBlue?
"Yes, that's great. Furthermore, there are companies in which Cockpit has already invested (without any connection to the new accelerator program), and we flew them to meet customers overseas. We're looking for things that affect the entire industry, not just El Al."
Published by Globes [online], Israel business news - www.globes-online.com - on July 20, 2016
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