Boeing [BA] has created a new innovation ventures arm called Boeing HorizonX and has made its first investments into two tech companies, the company said Wednesday.
Boeing HorizonX will have three main focus areas: targeted investments in new ventures and startups; seeking unique business opportunities for the company’s aerospace technology; and assessing disruptive innovations and business strategies. It is being led by Steve Nordlund, who previously served as vice president of strategy for Boeing’s Defense, Space, and Security business unit.
Earlier, Nordlund led the company’s autonomous systems division, led strategy and business development organizations in the defense and commercial airplane business units at Boeing, and helped launched the venture-backed Insitu, Inc., known for making the ScanEagle unmanned aerial vehicle.
HorizonX was created to operate as part of the corporate development and strategy group, which reports to Greg Smith, Boeing’s chief financial officer and executive vice president of corporate development and strategy. The new venture also aligns with Boeing’s chief technology officer and senior vice president of the company’s engineering, test, and technology section Greg Hyslop, the company said.
“Boeing HorizonX is tasked with ensuring we are fully engaged with opportunities from early-stage companies, market trends and emerging technologies while also fostering more rapid and effective internal innovation,” Dennis Muilenburg, Boeing chairman, president and CEO, said in a statement.
“The Boeing HorizonX team will build on Boeing’s advanced technology and depth of aerospace expertise in design, development and manufacturing while bringing in outside perspectives and leveraging the speed and agility of a wide range of companies and research organizations,” Smith said in a statement.
“As part of our company strategy to accelerate growth and productivity, we intend to be flexible and move quickly to identify technologies, business models and market opportunities that hold the promise of creating and delivering more value for our customers and other stakeholders,” he added.
Boeing also announced HorizonX’s first two investments: Upskill and Zunum Aero. Boeing did not disclose the amount of investment but a spokesman said it is significant for the targeted companies.
He added, “This initiative represents a multi-year commitment by Boeing to spend tens of millions of dollars a year to advance innovation and to supplement our research and development efforts”
Upskill is a provider of enterprise software for augmented reality wearables that are focused on enhancing productivity, quality, and safety in manufacturing, field service, and logistics. Boeing had been previously working with the company for over two years to evaluate the use of Upskill’s technology across locations nationally, Boeing said.
HorizonX is also partnering with JetBlue [JBLU], through its subsidiary JetBlue Technology Ventures, to invest in Zunum Aero. This company is pursuing the development of alternative propulsion aircraft with the potential for performance and efficiency improvements across a range of aerospace applications, Boeing said.
Zunum Aero is three years in to developing regional hybrid-electric 10-50 seat aircraft with an aim to reduce flight costs and times at a range of 700 miles in the early 2020s up to over 1,000 miles by 2030. The company estimates its aircraft will decrease door-to-door travel times by 40-80 percent depending on how busy the corridors are, reduce fares by 40-80 percent due to lower operating costs, have 80 percent lower emissions that eventually drop to zero with better batteries, and a 75 percent drop in community noise.
“Boeing HorizonX is investing in Zunum because we feel its technology development is leading this emerging and exciting hybrid-electric market space. This technology and customer approach has the potential to transform the market for small, short-haul aircraft that can use smaller regional airports,” Nordlund said in a separate statement.