Chapter 11 Case- Can Knowledge Systems Help Boeing Trounce Airbus?

Questions:

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?

Boeing's business strategy is based on the assumption that travelers prefer to fly non-stop from their home city to their destination. As such they are focusing on developing and selling smaller airliners that can fly quickly and cheaply. In order to design a plane that will allow the company to implement this strategy it has had to take advantage of knowledge management in order to build on the technology of its existing planes rather than starting from scratch. To do so it shifted from a "paper-intensive" production process to a computer one that allowed the 777 aircraft to be completely designed and produced by computer. By using software and computers Boeing was able to communicate effectively with all departments at the company cut down on design errors, and save time. Part of Boeing's strategy also involves using a new production process which outsources design and construction to cut down on costs. Boeing must use knowledge management systems to coordinate and collaborate with all of these different suppliars and design teams in order to efficiently implement this cost saving strategy. Boeing uses supply chain knowledge management software to allow Boeing's suppliars and contractors to have a larger role in the design and development of new planes. It also cuts costs by half.

4.) What role has knowledge management played in Airbus's business strategy and business performance?

Airbus's strategy is the opposite of Boeing's, it believes that as air travel expands there will be a growing need for jumbo jets to carry a larger amount of passangers without increasing airline costs. It appears that a lack of knowledge management may have been the cause of some of the drop in performance that has been seen recently. It has had to delay the delivery of its A380 jet to customers multiple times because of "electrical problems". The case mentions that the electrical systems are "highly integrated" which results in one problem creating problems in other areas of the plane. It seems like Airbus's inability to correct these type of problems may be due to a lack of good knowledge management systems. If it were able to implement software like Boeing did which helped reduce many of the design errors that it was seeing perhaps problems like this could be avoided or fixed at an early stage of product development so that it doesn't cause a delay in customer orders.