Embraer named the most innovative company in Brazil for the 3rd year in a row

17 July 2018 Consultancy.lat 4 min. read

Brazilian aircraft manufacturer for commercial, executive and military markets Embraer has been named the most innovative company in 2018. The ranking conducted by PwC’s Strategy& in Brazil judged companies on the value that their innovation had brought to the business as well as a number of other criteria. Embraer was followed by other Brazilian firms including Whirlpool, Petrobas, Natura and 3M do Brasil.

Embraer generates 50% of its revenue with products and services that have been created within the past half a decade. The company is at the forefront of aviation technology and is considered to be one of the world’s leading manufacturers of commercial and executive jets. Founded in the late 1960s by an ex-airforce man Ozires Silva, the company has grown to have a revenue of $5.8 billion in the 2017.

Annually, the company puts roughly 10% of its total revenue into research and development. At Embraer’s Business Innovation Center – located in Florida – the company’s team of works tirelessly to predict and create the future of air mobility. Embracing disruptive technologies is at the heart of this, with advanced robotics, automation and autonomous vehicles all trying to find their place amongst industries globally.

Beyond Industry 4.0, Embraer is tackling the usual suspects when it comes to transport and logistics; increasing efficiency, reducing noise, decreasing operational costs and reducing greenhouse gas emissions. Biogas, the company believes, will be an important part in creating a more sustainable aviation industry. They’ve already produced the worlds first and only ethanol fuelled Ipanema, a light aircraft predominantly used for agricultural spraying which has become a global symbol of sustainable aviation and agriculture.

“Innovation is deeply rooted in the company’s culture and mindset. It is part of our daily routine and is not just limited to the development of new aircraft. Innovation permeates everything we do across the value chain, from the development of new and improved products, processes and business models to finding better ways to position ourselves in the global market. You could say that innovation is in our DNA,” said Wander Menchik, Head of Embraer’s Technology Development Program said late last year.

Embraer named the most innovative company in Brazil for the 3rd year in a row

Embraer has also been in development with Uber regarding a new program to introduce small electric vehicles which operate in urban areas. The first prototypes of these vertical take-off and landing vehicles (VTOLs)  may be only 7 years away. “We think it is important to explore a number of new business concepts that have the potential to shape air transport in the future. Our partnership with Uber is a unique opportunity to complement our air-transport knowledge with that of a visionary and revolutionary ground-transport company,” said Menchik.

“Our long-term survival depends on our ability to come up with and apply game-changing ideas and concepts. That is why every year we invest nearly 10 percent of our revenues in research and development (R&D) and in upgrading our industrial facilities. This is essential because it allows us to remain competitive within the global aviation market,” he said.

“Innovation is at the heart of Embraer’s business strategy and since we began operating nearly 50 years ago, innovation has driven our success, enabling us to constantly break new ground, identify unexplored niches and reach new heights. Today, almost half of Embraer’s revenue comes from innovations or significant improvements implemented over the last five years,” he concluded.

The rankings were compiled by Strategy& – the strategy consulting arm of PwC’s operations. Strategy& in collaboration with Valor Econômico, one of the largest Brazilian newspapers. The results were published in a magazine titled Valor Especial Inovação earlier this month.

Meanwhile, Industry 4.0 technologies are being promoted heavily throughout Brazil, especially by the government. Consulting firm McKinsey & Company compiled a report last month titled the ‘Action Plan for Brazil’ detailing the country’s potential in Internet of Things technologies, which estimated that adoption could boost the Brazilian economy by up to $200 billion by 2025 and has now become the country’s main IoT strategy paper.