an analysis of the boeing company internal portal e-business strategy
TRANSCRIPT
![Page 1: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/1.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
An Analysis of the Boeing Company Internal Portal e-Business Strategy
Analysis Team
Shea Tanabe-Hines - Lisa McClary - Gene Yelden -
Frank Davidson - Ken Johnson
![Page 2: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/2.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Agenda
• Introduction• E-Commerce Cost Models• Five Steps for E-Commerce Success• The Ten Deadly Sins of Wanna-Dots• Getting from Bricks to Clicks with the Right
Mix• Assessments
![Page 3: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/3.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Introduction
• Current State:– Multiple portal projects in Boeing– Fabrication Division portal partially implemented– 1 dedicated resource– Cost Reductions
• The goal of a well-designed intranet portal is that of a well-rounded facilitator– Providing content, tools, information and opportunities
• Current initiative description lacks focus• E-Commerce analysis drives recommendations
![Page 4: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/4.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
E-Commerce Cost Models
![Page 5: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/5.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Economies of Scale
• The team heading the Fabrication eBusiness portal initiative can achieve economies of scale and help provide global access to Boeing information
• Demand– the more users in a network, the more useful, or
valuable, the network becomes
• Supply– portal project champions can help broaden the portal
network and stimulate interest in the initiative
![Page 6: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/6.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Economies of Scope
• eBusiness team can achieve economies of scope by streamlining the processes and providing value across a diverse set of customers/users
• Demand– increasing the number of process and product groups using the
portal, the amount of information available to be accessed across divisional groups also increases
– Information can be shared more easily with a large number of users because the portal is a central location and increases accessibility
• Supply– all portal initiatives should be sub-projects under an overall global
portal umbrella– portal projects can leverage the same processes, technologies and
strategies
![Page 7: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/7.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Switching Costs
• The eBusiness team can lower the switching costs perceived by potential users of the portal
• Demand– If the technology is perceived as a hassle for users they
will move away form it– key will be to show the value of the new technology
and software
• Supply– eBusiness team will need to use resources to obtain
buy-in from the customers – Best practices, internal case studies and attracting the
portal deployment champions
![Page 8: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/8.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Transaction Costs
• “the searching, negotiating, monitoring and enforcement” that allow exchange between two parties²
• Demand– time employees spend searching for information and
maintaining the web-delivered content– Information will be centralized
• Supply– the processes and code developed for implementation in
one group can be leveraged
![Page 9: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/9.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Five Steps for E-Commerce Success
![Page 10: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/10.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Redefine Competitive Advantage
• Internal Portal purpose is: – Global access to Boeing information from any web
based device – Reduced web delivery and maintenance costs – Infrastructure for future eBusiness capabilities
• eSCM is an external portal that attains competitive advantage by:– Turning transactions into electronic processes to reduce
paper transaction time• Product and Process centers need to understand
that an elemental product is information
![Page 11: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/11.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Rethink Business Strategy
• Current business and implementation strategy is implicitly ‘over the wall’ design and fabrication for both internal and external relationships
• Portal business strategy depends on development of ‘communities’ and ‘portlets’ within portal
• Goal of redesigned business strategy is to remove existing barriers to communication and interaction
![Page 12: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/12.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Re-examine Business and Revenue Models
• Portal will serve to aid internal and external real-time integration of existing centers (Product and Process) and Supply Chain management (external portal).
• Revenue model is not revised in first generation portal. Further extension of portals could leverage information to revise revenue models
• Initially, virtual value chain will mirror current value chain. Extension and leverage of portal information assets can lead to future revision of revenue model³
![Page 13: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/13.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Re-engineer the Organization and Web site
• Development of portal as described is by definition a re-engineering of the organization– Transformation to portal model will require buy-in and
dedicated, ongoing input from executive management
• Extranet (eSCM) site required to be multi-dimensional, accessing customizable pricing, delivery and scheduling information
![Page 14: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/14.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Re-invent Customer Service
• Portal redefines ‘customer’• Difficulty is to avoid another level of influence,
regulation and control, but instead institute a genuine service that is identified as essential by portal users
• Portal must gather customer specific information (internal and external portals) to develop customized service offerings²
![Page 15: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/15.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
The Ten Deadly Mistakes of Wanna-Dots¹
![Page 16: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/16.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
1: Lack of focus by management and those involved in implementation.
• a plan is of the utmost importance to ensure any level of success
• Potential outcomes must be involved in the focus of a project
2: Not finding the right people and time•Attracting champions throughout the division is essential
•Champions must also have a commitment that coincides with the eBusiness group
![Page 17: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/17.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
3: Oversimplification. • Do not take the easy way out unless all other avenues
have been examined• This type of tool is not a step backwards; it is a giant
leap forward and should be treated as such
4: Inappropriate and unfamiliar vendors. • include individuals from within the division or
product/process centers• Too much outside input could end up with an
aesthetically pleasing tool with lots of bells and whistles but with no productive value to the actual users
![Page 18: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/18.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
5: Duplicating existing processes only.
• Potential of the Internet, eBusiness ideas, and a portal system should be endless
• Take advantage of potential new uses especially if designed by those using the system
6: Restrictive conditions, policies and procedures.
• Does it always have to come down to how much is expended for the implementation?
• Treating people a different way could be enough to entice a little more effort – lift some restrictions
![Page 19: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/19.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
7: Failure to integrate between existing business divisions.
• Portals should show some individuality but under a consistent and unified umbrella
• Those involved in the implementation and maintenance of a portal need to learn from one another
8: Failure to acknowledge new competitive avenues and/or threats.
• Look towards others’ successes, not failures • Expand upon what has worked • Create new benchmarks for success
![Page 20: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/20.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
9: Improper implementation and training. • Classic rule for making a good idea look bad: botch
the implementation¹• The quantity and quality of training that is needed for
success
10: Failure to acknowledge the customer.
• Portal system must be acceptable to those you want to use the product, or tool
• allow all parties that will be using the system to be active and involved from the moment the portal is accepted by a division or center
![Page 21: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/21.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Getting from Bricks to Clicks with the Right Mix
![Page 22: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/22.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Strategic Vision and Planning
• Needs to be an overall strategic vision for what the portal initiative is trying to accomplish
• The project team needs to establish a champion within each product/process center
• Adequate time needs to be devoted to the overall strategy for the initiative
• Participants and stakeholders need to understand that the portal initiative is a way to help them share the risks, as well as the benefits, of moving to a more integrated platform
![Page 23: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/23.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Channel Conflict
• Potential change resistance driven by fear of portal information availability minimizing individual importance
• eSCM initiative has possible conflicts or incompatibilities with software/data transfer between participants
• Possible conflict if the Division becomes a profit/cost center and sold to non-Boeing groups
![Page 24: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/24.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Human Resources
• Talented and dynamic leaders and experts will be required in order to enable this project to be a success
• Hire, or conscript, people to serve as the portal champions relieving them of any other duties they may have previously held
• Time and effort may be required to be devoted to staff training
![Page 25: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/25.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Management
• The role of management cannot be underestimated • Management needs to have the overall vision, focus
and the requisite authority to motivate and guide the entire implementation process
• Common focal point of authority
![Page 26: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/26.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Infrastructure
• Ensure that the current efforts take full advantage of the capabilities of the current IT infrastructure
• Efforts should be focused on maintaining and capitalizing on the current division’s business strengths
• Staff training will be required to foster the sense that new initiatives and abilities are not hindrances or barriers, but lay the foundation for future prospects and expansion
![Page 27: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/27.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Assessments
![Page 28: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/28.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Evaluation
• Reviewing the results of the analysis tools, some consistency was noticed
• Analysis solidified the need of four main steps – Start at the Top – Plan– Manage Change– Communicate
![Page 29: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/29.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Recommendation – Start at the Top
• Success of technology initiatives require top-level support and preplanning
• Groups need to unite, form an integrated portal initiative
• Single project team of dedicated, expert resources:– reduces implementation time – requires fewer people
• Information management is a competitive advantage
![Page 30: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/30.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Recommendation - Plan• Focus on user requirements• Before development or content creation, need clear
documentation/direction:– Criteria for establishing a new Community– Definition and expectations of a content owner– Update process– Governance process– Establishment of a governance person or team– Definition of appropriate content– Identify a brand or name for the portal– Implementation scope and timeline
![Page 31: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/31.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Recommendation – Manage Change
• Portal changes the underlying methodology in which employees do work
• Barriers to accepting this change include:– varying levels of technology savvy – unclear understanding of benefits – general fear of change
• Critical to implement the portal in a short time frame, capitalizing on momentum and to show quick results
• Initial implementation should cover a core set of functions and information needs
![Page 32: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/32.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Recommendation - Communicate
• We recommend that the project team either:– include a communications specialist – identify someone out of a communications group to work specifically
with the project
• Create a project identity• Communicate the business case for portal
– Especially true in time of cost reductions
• Communication Plan should include: – email– posters/bulletins– project website (info and previews of the new portal)– Information and training sessions
![Page 33: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/33.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Managerial Implications
• Senior management must evaluate the strategic importance of the portal initiative
• Decision: provide full political and resource supportOR
abandon the projects
• Clearly communicate these goals to ensure success
![Page 34: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/34.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Select References
• ¹Kanter, R.M. 2001. The Ten Deadly Mistakes of Wanna-Dots. Harvard Business Review. January. 79(1). 91-100.
• ²Lee, C.S. 2001. An Analytical Framework for Evaluating E-Commerce Business Models and Strategies. Internet Research: Electronic Networking Applications and Policy. 11 (4). 349-359.
• ³Rayport, J.F. and Sviokla, J.J. 1995. Exploiting the Virtual Value Chain. Harvard Business Review. November-December. 75-84.
• Gulati, R. and Garino, J. 2000. Get the right mix of bricks and clicks. Harvard Business Review. May-June. 107-114.
• Willcocks, L.P. and Plant, R. 2001. Pathways to e-business leadership: Getting from bricks to clicks. MITSloan Management Review. Spring. 42(3). 50.
![Page 35: An Analysis of the Boeing Company Internal Portal e-Business Strategy](https://reader035.vdocuments.site/reader035/viewer/2022071600/613d2a9a736caf36b75a19dd/html5/thumbnails/35.jpg)
Pacific Lutheran UniversityE-Commerce & Technology Management Center
Questions