In the development of new technology, the initial stages often require integration, with control over all variables to ensure proper function, such as seen with AI or smartphones. Over time, these technologies can be modularized, breaking them into components and driving competition in each sector. This dispersion of risk and reward stimulates wide-ranging innovation. An example of this model is seen in the dichotomy between Windows' modular approach and Mac's initial integrated one concerning consumer grade GUI operating systems, resulting in Windows becoming more effective long-term. However, this cycle isn't typical for all sectors, notably consumer spaces, where integration can offer constant enhancements to user experience. A case in this integration's success is the iPhone, predicted to thrive due to its integrated structure, challenging the theory that integration may only be beneficial during technology's early stages.
Boeing, once known as an engineering-oriented company focused on producing quality airplanes, shifted its priorities under the influence of executives from McDonnell Douglas and General Electric (GE). These new executives, who had studied under Jack Welsh at GE, emphasized the importance of satisfying shareholders and pursuing short-term profitability. This change in culture and priorities led to a lack of checks and balances within the company and a focus on quarterly profits over long-term quality. This ultimately resulted in the creation of the 737 MAX with a fatal flaw, separate from the current one being discussed. The article also references an Atlantic piece by Jerry Youseim, highlighting a previous disaster involving the MAX and depicting a scenario where Boeing's leadership had multiple flight plans and lacked communication with the ground.
Over the past 30 years, America has focused more on financial engineering than actual manufacturing. This is evident in the defense industry as well, where companies like Boeing face challenges in producing cost-efficient weapons. Other defense contractors who sell primarily to the government also face similar problems. This reflects broader trends in the country.