Boeing's E-Enabled Advantage

BOEING'S E-ENABLED ADVANTAGE

Introduction

Willian Boeing founded his aircraft manufacturing company in 1916 only thirteen

years after the Wright Brothers made their famous flight. Aviation was still in its infancy.

Boeing built his first plane after he went to the Air Meet in Los Angeles in 1910. His first plane was named B & W after himself and his partner Westervelt. In 1916 Boeing started his company

Using the name, Pacific Aero Products company. One year later changed the name to Boeing Airplane Company. One of his first contracts was to build planes for New Zealand's airmail and pilot training. His next contract was to build training seaplanes for the US Navy just in time for the United States to enter World War I. Between World War I and II he became the largest airplane manufacturer in the United States. His main competitors were McDonald Douglas in the United States and Airbus in Europe. None of his competitors were able to compete with him in the earliest years of his company. He develped planes for different purposes. These purposes were mainly for military and government uses.

Challenges in the 1960's through the 1980's

In t he 1960's, things began to change. Technology became more convenient and was used more

in business. The economy was stable and customers became more interested in travel. Airplanes

made the travel faster and more convenient. Boeing kept developing and improving the

entire live of consumer airplanes: 707, 727, 737, and ending with the 78t7. The first challenge to Boeing's growth also came in the lat 1960's. In the 1970's Boeing lost congressional funding for larger consumer airplanes. Construction costs rose and the workforce was cut by 35%. Boeing began to diversify. Boeing took on project not directly related to

building aairplances. The company was saved.

Challenges in the 1990's and beyond

Boeing began to be complacent. Competitors saw this. Boeing became known as

"The Lazy B." In addition, the Gulf Was was being fought. Airbus was catching up with

new technology and products. The Case Study reports that Airbus introduced lighter composite materials in their planes, had fully digital, computer driven controls and were government subsidized. During this time, CEO Frank Shrontz began to realize that changes needed to

be made. Phil Condit, the next CEO wanted to have Boeing "...become agile, less dependent

on the highly cyclical commercial jetliner market." Condit's plan was proposed in this Vision 2016 report. His goals were to become an integrated aerospace company and a global enterprise. His strategy was to: 1) run a healthy core business products and new service, and 3) to open new frontiers.

Boeing's Reorganization

Before the phrase "e-Enabled Advantage" was launched, Condit reorganized the company. Boeing World Headquarters was the center of the reorganization. The Commercial Airplanes Division was the "healthy core of his business products." Boeing Capital, provided financial solution products across the globe. Boeing Connexion dealt with nflight broadband internet services. The final division, Defense Systems, was a part of Boeing since its beginnings.

Technology is an important part of all of Boeing's existing markets. Finally, according to the

Boeing website, the Shared Services Group:

provides a broad range of services worldwide, including facilities services, employee benefits and services, recruitment, wellness programs, security, fire protection, site operations, disaster preparedness, construction, reclamation, conservation programs, virtual workplace, creative services, transportation, business continuity and the purchase of all non-production goods and services. In addition, Shared Services Group manages the sale and acquisition of all leased and owned property. By integrating services, it leverages buying power and simplifies access to services.

Preparation for e-Enhanced Advantage

Using technology of all kinds was a part of Boeing since it was founded. Some examples of this are the on-going development of new commercial and military products that used the new technologies provided by computers and electronics. In 1989, Boeing used a "flly-by'wire" system . In 1995, Boeing had the first computer designed airplane. Online reservations and revenue management were in use. E-tickets became a part of airline services. In 2001, customers could access commercial portals. The e-Enabled Advantage came about at the Paris Air Sow in 2003.

The term reflected a concept whereby all data and information systems relating to airplane maintenance, flight operations, and passenger needs would be seamlessly interconnected to effectively bring the airplane into the airlines network during flight.