IAI moves to align R&D with strategy

Harel Locker

Israel Aerospace Industries chairman Harel Locker: Focusing R&D and integrating it into the company's business strategy are necessities.

The board of directors of Israel Aerospace Industries (IAI) has approved the abolition of the post of VP Planning and Control in the company and consolidation of the operations, procurement and logistics functions. The board also approved a new post of a VP responsible for technology and research and development activity.

Sources at IAI told "Globes" that the decision on the new post was made in the light of the need for strategic management of all the company's activities in these areas, in which it invests billions of shekels for the development of future systems. The person in the post will report to Nimrod Sheffer, recently appointed vice president of strategy and research and development at IAI. Sheffer's appointment was greeted with praise by many in Israel's defense sector. He held senior posts in the Israel Air Force, is familiar with IAI's core businesses, and in his final post in the IDF served as head of the Planning Directorate.

IAI sources said the consolidation of the operations, procurement and logistics functions was intended to streamline management, putting similar areas of activity under one central roof, eliminating duplication and boosting efficiency. This follows a series of similar moves decided on by the board in the past few months, the main one being the consolidation of the three civilian divisions in the company into one division to be called the Aviation Division. The company is also appointing a VP for its US business and replacing the CEO of its US subsidiary.

IAI CEO Joseph Weiss recently announced that he would step down on reaching retirement age. IAI will appoint a search committee headed by company chairman Harel Locker to find a replacement. "The steps decided on by the board are a continuation of the many processes of change and adaptation of IAI's business to the competitive global markets in which it operates," Locker said. "As Israel's largest high-tech company, employing some 10,000 engineers and with annual R&D expenditure of some NIS 3 billion, focusing R&D and integrating it into the company's business strategy, alongside internal operational streamlining, are necessities for IAI. The streamlining will not bypass the company's senior management."

Published by Globes [online], Israel business news - www.globes-online.com - on March 12, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

View comments in rows
Update by email about comments talkback
Harel Locker
Harel Locker
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018