...1. How does e-Enabled create value for Boeing? In the “Essentials of information systems for managers”, Piccoli does not only define value creation as the genesis of worthwhile things that did not exist before (Pic, 214), but also explains the two major ways with which added value could be created (Pic, 222): either increasing customer willingness to pay by doing something of value for customers, or decreasing supplier opportunity cost by working with the firms’ suppliers on providing the needed resources for less money. The former (CWP) is defined as the maximum amount the customers are ready to spend on the firm’s product or service (Pic, 215), whereas the latter (SOC) is defined as the minimum amount of money the suppliers are willing to accept before providing the needed resources (Pic, 215). As far as Boeing is concerned, the new e-Enabled strategy focused on increasing the customer willingness to pay, and I quote from the case (LYN, 1): “Boeing unveiled a new strategy that executives believed would help its airline customers improve efficiency and profitability and also differentiate its products in the market place.” If we analyze this quoted statement, we will see that the way Boeing intended its customers to create added value from e-Enabled is twofold: First, from e-Enabled’s potential to reduce costs complexity, provide real-time situational awareness for both flight crews and airline operations centers, improve operational efficiency, enhance the travel experience...
Words: 1796 - Pages: 8
...THE e-ENABLED AIRLINE, AIRPLANE, FLIGHT DECK, CABIN COMMERCIAL AVIATION Commercial Airplanes Aviation Services P.O. Box 3707, MC 21-85 Seattle, WA 98124-2207 www.boeing.com/commercial/aviationservices SERVICES The e-Enabled Advantage Phone: 206-766-1160 Fax: 206-766-1720 E-mail: e-enabled@boeing.com www.boeing.com/commercial/ams | A V IE N - C N AS ELR V I C E SV A N T A M E D I F I C A T I O N TH Oe IE S B ED AD AND GO Printed in U.S.A. 404854 06/03 COMMERCIAL AVIATION SERVICES | T H E e - E N A B L E D A D VA N TA G E EXPERIENCE THE POWER OF N E T W O R K E D O P E R AT I O N S . e-Enabled Advantage A VISION OF THE FUTURE NETWORKED ENVIRONMENT In the not-too-distant future, airlines will routinely invoke the power of integrated information and communications systems to reach new pinnacles of operational efficiency and market presence. Boeing calls it the e-Enabled Advantage. We’re coordinating the expertise of our entire company to give the airline industry a future in which people, airplanes, assets, information systems, knowledge applications, and decision support tools work together seamlessly. The Jeppesen Electronic Flight Bag, SBS International Crew Scheduling and Management software, Connexion by BoeingSM, and Boeing Airplane Health Management signal the dawn of a new age, when airborne and ground-based operations are linked in real time to enable people to achieve the extraordinary every day. Unprecedented enterprise...
Words: 921 - Pages: 4
...Introduction on BOEING Boeing is an American multinational corporation that designs, manufactures and sells fixed-wing aircraft, rotorcraft, rockets and satellites. It also provides leasing and product support services. Boeing is among the largest global aircraft manufacturers, is the second-largest aerospace & defense contractor in the world based on 2012 revenue and is the US' largest exporter by dollar value. Boeing stock is a component of the Dow Jones Industrial Average. The Boeing Company's corporate headquarters are located in Chicago and the company is led by Chairman and CEO James McNerney. Boeing is organized into five primary divisions: Boeing Commercial Airplanes (BCA); Boeing Defense, Space & Security (BDS); Engineering, Operations & Technology; Boeing Capital; and Boeing Shared Services Group. In 2013, Boeing recorded $86.623 billion in sales, ranked 30th on the Fortune magazine "Fortune 500" list (2013), ranked 95th on the "Fortune Global 500" list (2013), and ranked 26th on the "World's Most Admired Companies" list (2013). The success of this aviation company began when the founder of Boeing, William E.Boeing, bought a shipyard in Seattle on the Duwamish River, which later became his first airplane factory. Boeing, a graduate from Yale University incorporated Boeing on July 15. 1916 as ‘Pacific Aero Products Co.’ which later transformed the company into a world’s largest aircraft manufacturer throughout the aviation history. Between World War I...
Words: 1753 - Pages: 8
...manufacturing to be successful • Boeing realize that they were dependent on a cyclical airline market • Boeing shareholders were it executive leadership, shareholders, employees, customers, suppliers and partners, secondary stakeholders were airline customers • in 1994 Boeing's earnings shrank by nearly half then they laid off 9300 employees. • In 1997 Boeing lost the 178 million, 90% drop in profits due to production delays. • 1999 Airbus outsold Boeing for the first time. Problems • Boeing had change management problems incurred from the M&As, and did not effectively integrate business practices/processes to produce cohesive collaboration, communication, processes, integrated networks from all the acquisitions. “the biggest challenges and risks we face are cultural and organizational – not technical” o “But there was no systematic, holistic view of how to add them together. Our Task is to take these building blocks and allow them to work together to further increase efficiency…Chris Kettering, 2005” o While the main concern of Scott Carson was to break down the silos of communication among the different business units o Boeing did not allow for enough time for proper re-organization strategy (reviewing the enabled environment to evaluate existing products/services, and after 2 months of...
Words: 1725 - Pages: 7
...07-079 Innovation through Global Collaboration: A New Source of Competitive Advantage Alan MacCormack* Theodore Forbath** Peter Brooks ** Patrick Kalaher** *Harvard Business School, Boston, MA **Wipro Technologies, Product Strategy and Architecture Practice, Boston, MA Copyright © 2007 by Alan MacCormack, Theodore Forbath, Peter Brooks, and Patrick Kalaher. Note: This is one of two papers reporting the results from this research. The other is “From Outsourcing to Global Collaboration: New Ways to Build Competitiveness,” HBS Working Paper 07-080. Working papers are distributed in draft form for purposes of comment and discussion. It may not be reproduced without permission of the copyright holders. Copies are available from the authors. Innovation through Global Collaboration: A New Source of Competitive Advantage Date: August 14th 2007 Alan MacCormack* Harvard Business School, Soldiers Field, Boston, MA 02163 Theodore Forbath, Peter Brooks, Patrick Kalaher Wipro Technologies 75 Federal Street, Boston, MA 02110 * Corresponding Author Abstract Many recent studies highlight the need to rethink the way we manage innovation. Traditional approaches, based on the assumption that the creation and pursuit of new ideas is best accomplished by a centralized and collocated R&D team, are rapidly becoming outdated. Instead, innovations are increasingly brought to the market by networks of firms, selected for their unique capabilities, and operating in a coordinated...
Words: 6275 - Pages: 26
...structure have led Boeing to both peaks and disappointments. Table of Contents Introduction 3 Phases of American capitalism 3 Characteristics of the American capitalism 4 The Corporation and the State 5 Globalization 6 The 1992 EU-US Agreement 7 The technological development 8 Analysis of the abovementioned development and its reflection on American capitalism 9 Boeing – the largest global aircraft manufacturer 9 The technological development 9 Globalization 11 Crony capitalism 11 Competition between Boeing and Airbus 12 Market formation in American capitalism 13 State 13 Labor market 14 Financial institutions 14 Education and training 14 Company 15 Market formation conclusion 15 Discussion on Boeing’s entrepreneurial decisions...
Words: 7319 - Pages: 30
...Global Partnering: The Boeing 787 Dreamliner Story? VERSION 1.2 This case was prepared using publicly available information by Sveinn Vidar Gudmundsson, Professor, Toulouse Business School, France. It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright © 2015 S V Gudmundsson, Toulouse, France. Global Partnering: The Boeing 787 Dreamliner Story? C28-1-2015-1.1 "In retrospect, our 787 game plan may have been overly ambitious, incorporating too many firsts all at once -- in the application of new technologies, in revolutionary design-and-build processes, and in increased global sourcing of engineering and manufacturing content." Boeing CEO, Jim McNerney Speech in the Wings Club of New York on November 11, 2014 When giants learn to dance The world's second-largest commercial aircraft-maker, Boeing a Chicago-based aerospace giant, was founded in 1916 in Seattle by William Boeing. In 2013 the company earned $86.623 billion in combined sales for defense and commercial aircraft divisions. The U.S. aerospace industry achieved $273 billion in sales in 2013.1 All told, Boeing and its subsidiaries employ 168,000 (160.000 in 2009) people. Boeing is the 24th largest U.S. employer, including private companies and government. Boeing, with almost half of its workforce located in Seattle, was adamant that modern economics dictate a new strategic model for the company,...
Words: 9682 - Pages: 39
...defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. Boeing has a long tradition of aerospace leadership and innovation. The company continues to expand its product line and services to meet emerging customer needs. Its broad range of capabilities includes creating new, more efficient members of its commercial airplane family; integrating military platforms, defense systems and the warfighter through network-enabled solutions; creating advanced technology solutions; and arranging innovative customer-financing options. With corporate offices in Chicago, Boeing employs more than 170,000 people across the United States and in 70 countries. This represents one of the most diverse, talented and innovative workforces anywhere. More than 140,000 employees hold college degrees -- including nearly 35,000 advanced degrees -- in virtually every business and technical field from approximately 2,700 colleges and universities worldwide. Our enterprise also leverages the talents of hundreds of thousands more skilled people working for Boeing suppliers worldwide. Boeing is organized into two business units: Boeing Commercial Airplanes and Boeing Defense, Space &...
Words: 6266 - Pages: 26
...Chapter 6 E-Supply Chains, Collaborative Commerce, and Corporate Portals Learning Objectives Upon completion of this chapter, you will be able to: 1. Define the e-supply chain and describe its characteristics and components. 2. List supply chain problems and their causes. 3. List solutions provided by e-commerce (EC) for supply chain problems. 4. Describe RFID supply chain applications. 5. Define c-commerce and list the major types. 6. Describe collaborative planning and collaboration, planning, forecasting, and replenishing (CPFR) and list the benefits of each. 7. Discuss integration along the supply chain. 8. Understand corporate portals and their types and roles. 9. Describe e-collaboration tools such as workflow software and groupware. 10. Describe Collaboration 2.0 technology and tools. Content Opening Case: Boeing’s Global Supply Chain for the Dreamliner 787 6.1 E-Supply Chains 6.2 Supply Chain Problems and Solutions 6.3 RFID as a Key Enabler in Supply Chain Management 6.4 Collaborative Commerce 6.5 Collaborative Planning, CPFR, APS, and PLM 6.6 Supply Chain Integration 6.7 Corporate (Enterprise) Portals 6.8 Collaboration-Enabling Environments and Tools Managerial Issues Closing Case: How Wal-Mart Uses EC in Its Supply Chain Answers to Section Review Questions Section 6.1 Review Questions 1. Define the e-supply chain and list its three major parts. It is...
Words: 3758 - Pages: 16
...analytical An analytical framework for evaluating e-commerce business models and strategies Chung-Shing Lee The author Chung-Shing Lee is Director of Electronic Commerce Resource Center and an Assistant Professor of Information Systems and Technology Management in the School of Business at Pacific Lutheran University, Tacoma, Washington, USA. Keywords Internet, Economy, Innovation, Strategy Abstract Electronic commerce or business is more than just another way to sustain or enhance existing business practices. Rather, e-commerce is a paradigm shift. It is a ``disruptive’’ innovation that is radically changing the traditional way of doing business. The industry is moving so fast because it operates under totally different principles and work rules in the digital economy. A general rule in e-commerce is that there is no simple prescription and almost no such thing as an established business or revenue model for companies even within the same industry. Under such conditions, an analytical framework is needed to assist e-commerce planners and strategic managers in assessing the critical success factors when formulating e-commerce business models and strategies. This research develops an analytical framework based on the theories of transaction costs and switching costs. Both demand-side and supply-side economies of scale and scope are also applied to the development of this framework. In addition, e-commerce revenue models and strategies are also discussed. Based on the analytical...
Words: 6444 - Pages: 26
...An analytical framework for evaluating e-commerce business models and strategies Chung-Shing Lee The author Chung-Shing Lee is Director of Electronic Commerce Resource Center and an Assistant Professor of Information Systems and Technology Management in the School of Business at Pacific Lutheran University, Tacoma, Washington, USA. Keywords Internet, Economy, Innovation, Strategy Abstract Electronic commerce or business is more than just another way to sustain or enhance existing business practices. Rather, e-commerce is a paradigm shift. It is a ``disruptive’’ innovation that is radically changing the traditional way of doing business. The industry is moving so fast because it operates under totally different principles and work rules in the digital economy. A general rule in e-commerce is that there is no simple prescription and almost no such thing as an established business or revenue model for companies even within the same industry. Under such conditions, an analytical framework is needed to assist e-commerce planners and strategic managers in assessing the critical success factors when formulating e-commerce business models and strategies. This research develops an analytical framework based on the theories of transaction costs and switching costs. Both demand-side and supply-side economies of scale and scope are also applied to the development of this framework. In addition, e-commerce revenue models and strategies are also discussed. Based...
Words: 6443 - Pages: 26
...Abstract……………………………………………………………………………….....3 Introduction…….…………………………………………………………………….…4 Dell Timeline……………….…………………………………………………………. 5 Mission Statement….……………………………………………………………….….6 Objective……………………………………………………………………………….7 Strategy...........................................................................................................................7 Financial Performance ...……………………………………………………………..13 Dell’s Evaluation……………………………………………………………………..15 Recommendation……………………………………………………………………..22 Conclusion…………………………………………………………………………….23 References…………………………………………………………………………….25 Abstract This case study examines the marketing strategy and innovation practiced by the Dell Computer Corporation IT details the history of the company which made its way in the industry by building custom configurations of personal computers. A major theme of this case is Dell’s build-to-order strategy which has been a success in marketing as well as an overall strategy in supply chains across the country. This case details how well Dell has cornered the personal computing home office market and also the manner in which it derives a substantial amount of its revenue from its small business clients. It also addresses potential problems in Dell’s strategic management and possible solutions to help them stay on top. Introduction History Dell was founded in 1984 by Michael S. Dell, a student at the University of Texas, who with $1...
Words: 6291 - Pages: 26
...CHAPTER 1: OPERATIONS AND PRODUCTIVITY TRUE/FALSE 1. Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements. True (Global company profile, easy) 2. The production process at Hard Rock Café is limited to meal preparation and serving customers. False (Global company profile, easy) 3. All organizations, including service firms such as banks and hospitals, have a production function. True (What is operations management? moderate) 4. Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs. True (What is operations management? easy) 5. An example of a "hidden" production function is money transfers at banks. True (What is operations management? moderate) 6. One reason to study operations management is to learn how people organize themselves for productive enterprise. True (Why study OM, easy) 7. The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. True (What operations managers do, easy) 8. "How much inventory of this item should we have?" is within the critical decision area of managing quality. False (What operations managers do, easy) 9. In order to have a career in operations management, one must have a degree in statistics or quantitative methods. False (What operations...
Words: 18670 - Pages: 75
...Global Production, Outsourcing, and Logistics Chapter Outline OPENING CASE: Building the Boeing 787 INTRODUCTION STRATEGY, PRODUCTION AND LOGISTICS WHERE TO PRODUCE Country Factors Management Focus: Philips in China Technological Factors Product Factors Locating Production Facilities THE STRATEGIC ROLE OF FOREIGN FACTORIES Management Focus: Hewlett Packard in Singapore OUTSOURCING PRODUCTION: MAKE-OR-BUY DECISIONS The Advantages of Make The Advantages of Buy Trade-offs Strategic Alliances with Suppliers MANAGING A GLOBAL SUPPLY CHAIN The Role of Just-in-Time Inventory The Role of Information Technology and the Internet SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Li & Fung Learning Objectives 1. Explain why production and logistics decisions are of central importance to many multinational businesses. 2. Explain how country differences, production technology and product features all affect the choice of where to locate production activities. 3. Discuss how the role of foreign subsidiaries in production can be enhanced over time as they accumulate knowledge. 4. Identify the factors that influence a firm’s decision of whether to source supplies from within the company, or from foreign suppliers. 5. Articulate what is required to efficiently coordinate a globally dispersed production system. Chapter Summary ...
Words: 6454 - Pages: 26
...Global Production, Outsourcing, and Logistics Chapter Outline OPENING CASE: Building the Boeing 787 INTRODUCTION STRATEGY, PRODUCTION AND LOGISTICS WHERE TO PRODUCE Country Factors Management Focus: Philips in China Technological Factors Product Factors Locating Production Facilities THE STRATEGIC ROLE OF FOREIGN FACTORIES Management Focus: Hewlett Packard in Singapore OUTSOURCING PRODUCTION: MAKE-OR-BUY DECISIONS The Advantages of Make The Advantages of Buy Trade-offs Strategic Alliances with Suppliers MANAGING A GLOBAL SUPPLY CHAIN The Role of Just-in-Time Inventory The Role of Information Technology and the Internet SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Li & Fung Learning Objectives 1. Explain why production and logistics decisions are of central importance to many multinational businesses. 2. Explain how country differences, production technology and product features all affect the choice of where to locate production activities. 3. Discuss how the role of foreign subsidiaries in production can be enhanced over time as they accumulate knowledge. 4. Identify the factors that influence a firm’s decision of whether to source supplies from within the company, or from foreign suppliers. 5. Articulate what is required to efficiently coordinate a globally dispersed production system. Chapter Summary This...
Words: 6454 - Pages: 26
