Some notes from Steve B. from the textbook regarding Boeing and their implementation of IT

Boeing faced a mature market between 1999 and 2003: Airbus matched them in sales and then in airplanes delivered.

Boeing had been practically unrivaled in the 1980s; had more than twice the market share of all competitors.

The 1990s led to a mature market and Boeing's strong position was lost; profits were lost; jobs cut, too. Merging with McDonnell-Douglas in late 1996 gave Boeing more of a defense department focus. 1998 saw hardline reforms enacted and the immediate success of those reforms.

2000 saw restructuring to the 4 main sectors as shown on pg. 193 (now including Commercial Airplanes).

In 2001, Boeing began to take a low-risk approach to venturing into new markets. Began several of the e-Enabled type of offerings. There were first referenced as IT-enabled.

Some services began in 2000, such as Connexion by Boeing. Company did lots of testing on these Internet services.

June, 2003, the e-Enabled Advantage is unveiled.

14 different components for the e-Enabled Advantage (see pg. 200).

E-Enabled components went in at different times over several years. Most were traceable diagnostics.

Had to pass some of the costs onto commercial travelers.

With the help of Boeing's CAS (Commercial Aviation Services) group, the e-Enabled technologies began morphing into services. How to integrate these services remains the challenge.

Of note: Connexion by Boeing was installed on an Airbus. Also, as of 2005, there are subsidiaries that contribute to the development of e-Enabled products/services.



Notes below for PowerPoint bullets
1990s reflected Boeing's lazy period
But 1996 saw the drafting of Vision 2016, their 20-year plan to diversify and globalize


Under CEO Phil Condit and Executive VP Alan Mullaly, Boeing restructured the Commercial Airplanes sector.
This unit was called Commercial Aviation Services (CAS).


First elements of e-Enabled began in late 1990s
Problem: What to do with all that data?
Customers were unsure about Boeing’s on-board LAN and server.
Some airlines were not interested in it at the time.


Connexion by Boeing began in 2000 and provided broadband Internet to passengers.
Also in 2000, Boeing purchased Jeppesen Sanderson (electronic flight info. services) and Hughes Electronics' space and communication businesses.


Four airlines signed on in the first year; 1,500 planes were thus e-Enabled

9/11 events saw several of the enlisted airlines terminating their contracts


By 2002 the e-Enabled group of packages could save customers between $23 and 44 billion.

Connexion by Boeing was released in 2004, debuting on Lufthansa commercial service
It started the trend toward shifting to services; get customers to see Boeing as a service provider.

"Enabling mobile connectivity is a natural service evolution for our system, which currently allows passengers on more than 120 flights a day to use Wi-Fi-enabled laptops to connect to what is important to them," said David Friedman, vice president of marketing and direct sales for Connexion by Boeing.
from "Boeing moves closer to in-flight calling, Internet" (the late 2005 article)



E-Enabled advantage components growing; 14 technologies implemented by 2005


Title Card: Skills from Russia (This material is from The World is flat)

-In 1998, Boeing used Moscow's McDonald's office tower and employed Russian scientists, utilizing their aerodynamics prowess.
-By 2005 that number had increased to 800 scientists
-Russian engineers cost 1/3 of Americans; help Boeing compete with Airbus
-Outsourcing to Russia leads to Russians outsourcing to Bangalore, India, to increase the speed of the Russian engineers' production
-Boeing has learned to use intranet sites for reverse auctions that let companies bid down the cost of their services for advertised Boeing design work.
-Bidding companies will undercut one another for the jobs.



2007 ATW article says that Connexion was introduced too early to take advantage of the forthcoming digital revolution.