Question #2: What is the relationship of knowledge management to Boeing's business strategy? How is Boeing using knowledge management systems to execute its business model and business strategy?
Knowledge management, which is the set of business processes developed to create, store, transfer, and apply knowledge closely resembles Boeing's business strategy. Boeing's strategy is to fly travelers from their own city nonstop to their destination using smaller airplanes that will fly quickly and inexpensively, enabling passengers to fly nonstop from departure to destination, thus bypassing the larger hubs. Boeing sees a strong expansion of smaller jet sales rather than larger jumbo jets sales that Airbus is developing.
Boeing implemented a "paperless design" model to replace its manual design to computerize the design and production of its 777 aircraft. The Boeing 777 carries 300 to 400 passengers at lower operating and maintenance costs, lower fuel costs, and lighter materials. Boeing implemented the Dessault Systems CATIA computer-aided design software to enable engineers to access any of the airplanes parts modify them, fit them into the surrounding structure. This allows other engineers to make adjustments without making extensive modifications. The airplane was designed entirely on a computer screen and assembled without expensive mock-up models. The implementation of computer aided design (CAD) software is an example of a knowledge work system.
Question #3: Evaluate Boeing's new business strategy. What management, organization, and technology issues will Boeing face as it attempts to implement the strategy? What role will knowledge management play in this strategy. How successful will Boeing be in pursuing this strategy?
Boeing's new business strategy was to lower costs by using technology to reform inefficient business process. Boeing's plan was to roll out the 787 aircraft using a new production process of outsourcing the design and construction of about 80 percent of the aircraft to hundreds of other companies outside the United States. Boeing and its key suppliers are using software that allows designers to collaborate in designing components and manufacturing processes. Instead of airplanes being produced under one facility, the 787 is being built in a modular assembly process.
Although Boeing implemented the Dessault Systems to help manage its global supply chain, the system required additional features to its planning and design software. Boeing expanded its use of Dessault's version 5 Product Life Cycle Management software from 1,000 to 6,000 licenses. These software tools enable designers to use a single set of data and to simulate the digitally the plane's life cycle from design through production and modeling changes in design, thus, to reduce errors and eliminate redundancy of work. Outsourcing the 787 required Dessault to improve integration of its CAIA, Enovia, and Delmia modules for Boeing. Boeing need custom tools to handle designs with carbon-fiber composite materials. Thus, the role of knowledge management is to quickly resolve issues from significant technical and production problems that could threaten the delivery of the 787. Software programs designed by a variety of vendors had trouble "talking" to one another.
I am uncertain if Boeing will be be able to successfully implement their new business strategy of outsourcing their new airplane design and production because of the required software updates and the lack of communication among the vendor's software solutions.
Question #4: Using the facts presented in this case, what role has knowledge management played in Airbus's business strategy and business performance.
For Airbus, the role of knowledge management was to launch its A380 jumbo jet to meet the predicted demand of increased mass of passengers without increasing operational costs. It envisions a hub-and-spoke model of air travel where jumbo jets transport passengers to a small number of hub cities where passengers can transfer to smaller connecting flights to their destinations. However, the application of knowledge management was not fully implemented to better streamline the design and production of the A380. Airbus announced later delivery schedules due to the complexity required to wire the aircraft for in-flight entertainment and communication units requested by airlines. There appears to be issues with supply chain management of Airbus, because any design changes to wiring results in further delays. Airbus ran into other issues with design changes to the A350 to widen its cabin and windows and provide appropriate cabin humidity. The A350 is not expected to enter service until the year 2012, four years after the 787 is rolled out. Thus, Airbus did not adequately address knowledge management as adequately as Boeing. The outcome is that the business performance is not going to meet its customers expectations unless significant knowledge management is implemented to streamline the production process.
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