Navigating the Complexities of International Ecosystems and Emerging Markets
Embraer has produced more than 5,000 aircraft that operate in 92 countries on five continents, and it is the market leader for commercial jets with up to 120 seats. "Throughout its 40-year history, Embraer has been involved in all stages of a highly complex process: the design, development, manufacturing, sales, and after-sales support for aircraft," said Luiz Aguiar, Chief Financial Officer, Embraer, at the 2011 Accenture Global Convergence Forum.
In his remarks, Aguiar discussed innovation (technological models, business model and products), the need for talent, and his experiences running an emerging market company competing successfully in the global high-tech market.
The original factor in the company's success was the will to lead in education (to create a pool of high-level engineers) and in research and development. Founded in 1969 as a government-owned enterprise, Embraer became a private company in 1994. The result is a hybrid culture—technological and industrial on one hand, entrepreneurial on the other—focused on customer satisfaction.
Aguiar shared what he considers to be the five pillars of the aerospace business:
- High technology, best illustrated at Embraer by the Virtual Reality Center, launched in 2000, which provides ergonomic analysis, knowledge-based engineering, and automation of routine design activities
- People, whose development is sustained by massive investment in training program and by the identification of newly graduated talent
- Global expansion with worldwide operations and diversified customer base across five continents
- Cash intensiveness
- Flexibility, which at Embraer means penetrating all markets with a wide portfolio of products
Embraer's worldwide reach and customer base yield excellent business results. Moreover, in Brazil, the company has been ranked as one of the best places to work, and the company is involved in sustainability initiatives.
"With operations in Brazil, China, France, Portugal, Singapore, and the United States, Embraer is poised to continue on its strong growth trajectory with demand from emerging markets and governmental defense organizations," concluded Aguiar.
Download the presentation [PDF, 3MB]
CEO of Defense and Security,
In January 2011, Luiz Aguiar was appointed chief executive officer, Embraer Defense and Security. Prior to that he held the office of chief financial officer. From 2006 to 2008, Mr. Aguiar served as executive vice-president of Embraer, responsible for worldwide Defense Market and Governmental Aviation.
Mr. Aguiar has held previous positions as director of Banco do Brasil from 2000 to 2003, and manager of Banco do Brasil in New York from 1997 to 2000. He was also PREVI'S Director and sat on the Board of Directors of Embraer before joining the company outright. He was a member of the Board of Directors of Seguradora Brasileira de Crédito à Exportação S.A., a Brazilian insurance company, and in 2003 he was vice-chairman of the Board of CPFL (São Paulo Power and Light Company) and a member of the Finance Committee of Vale.