Should Lilium focus on developing proprietary technology or partner with existing aerospace manufacturers?

Introduction

The key trade-off for Lilium is whether to focus on developing proprietary technology or partner with existing aerospace manufacturers. This decision will significantly impact Lilium's product development strategy, market positioning, and long-term competitiveness in the emerging electric vertical takeoff and landing (eVTOL) industry.

I'll analyze this trade-off by examining the following aspects:

1. Clarifying the business context and technical requirements
2. Understanding the product and its ecosystem
3. Evaluating potential impacts and metrics
4. Designing an experiment to test our hypotheses
5. Developing a decision framework
6. Providing a recommendation with next steps

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking Lilium is at a critical juncture in its product development cycle. Could you provide more context on where we are in the development process of our eVTOL aircraft?

Why it matters: Helps determine the urgency and potential impact of the decision Expected answer: Late prototype stage, preparing for certification Impact on approach: Would influence the feasibility of developing proprietary technology vs. partnering

• Business Context: Based on our current funding and market position, I assume time-to-market is a critical factor. How does this decision align with our go-to-market strategy and revenue targets?

Why it matters: Helps prioritize speed vs. control in technology development Expected answer: Aiming for commercial operations within 2-3 years Impact on approach: Might favor partnerships for faster market entry

• User Impact: Considering our target market, I'm thinking safety and performance are top priorities for potential customers. What are the key performance indicators that matter most to our users?

Why it matters: Ensures the decision aligns with user needs and expectations Expected answer: Safety record, range, noise levels, and operating costs Impact on approach: Would influence the choice between proven technology (partnerships) vs. potentially superior proprietary solutions

• Technical Feasibility: Given the complexity of eVTOL technology, I'm curious about our current technical capabilities. What are our core competencies, and where do we have significant gaps?

Why it matters: Helps assess the feasibility of in-house development vs. the need for external expertise Expected answer: Strong in aerodynamics and flight control, weaker in propulsion and battery technology Impact on approach: Might suggest a hybrid strategy, developing some technologies in-house and partnering for others

• Resource Allocation: Considering the scale of this project, I'm wondering about our current resource allocation. What percentage of our budget and engineering team is currently dedicated to technology development?

Why it matters: Helps determine if we have the capacity for extensive in-house development Expected answer: 60% of budget and 70% of engineering team on technology development Impact on approach: High allocation might favor continued in-house development, while lower allocation could suggest partnering