Strategic Information Systems
1. How does e-Enabled create value for Boeing? Value is defined as the distinction between the opportunity cost of the supplier and the willingness of the customer to pay. Value is defined as the distinction between the opportunity cost of the supplier and the willingness of the customer to pay. Boeing was leading airplane maker in 2004 and for decades it had dominated the global aviation market. However, as the industry reached maturity, European-based Airbus; its major competitor outpaced Boeing and sold more airplanes. The market began to change and after the terrorist attack in America, pressure piled on major airplane builders that led to rescheduled plane orders.
Boeing, therefore, needed to make a change since most of their customers started focusing on consolidation and cost structures so as to increase operating efficiency and remain in the market. Boeing also experienced problems in that it had a difficult time in differentiating its products that were similar to Airbus’. The airplane manufacturer unveiled the e-enabled operating environment and focused on creating the value for the customers. It unveiled a strategy that assisted the airline to improve the efficiency of the customers. It took the advantage of the e-Enabled system in which its partner and supplier would be incorporated …show more content…
Strategic information systems support the competitive advantage of a business. To realize a competitive gain, a firm should generate added value by making a unique and positive distinction between the supplier opportunity cost and the customer’s willingness to purchase. On the other, tactical information systems are systems that do not help a business to obtain added value even though they are crucial for the operations of a firm. The strategy is both tactical and strategic since it assist the company gains a competitive advantage and it is crucial for the daily
1. How does e-Enabled create value for Boeing? Value is defined as the distinction between the opportunity cost of the supplier and the willingness of the customer to pay. Value is defined as the distinction between the opportunity cost of the supplier and the willingness of the customer to pay. Boeing was leading airplane maker in 2004 and for decades it had dominated the global aviation market. However, as the industry reached maturity, European-based Airbus; its major competitor outpaced Boeing and sold more airplanes. The market began to change and after the terrorist attack in America, pressure piled on major airplane builders that led to rescheduled plane orders.
Boeing, therefore, needed to make a change since most of their customers started focusing on consolidation and cost structures so as to increase operating efficiency and remain in the market. Boeing also experienced problems in that it had a difficult time in differentiating its products that were similar to Airbus’. The airplane manufacturer unveiled the e-enabled operating environment and focused on creating the value for the customers. It unveiled a strategy that assisted the airline to improve the efficiency of the customers. It took the advantage of the e-Enabled system in which its partner and supplier would be incorporated …show more content…
Strategic information systems support the competitive advantage of a business. To realize a competitive gain, a firm should generate added value by making a unique and positive distinction between the supplier opportunity cost and the customer’s willingness to purchase. On the other, tactical information systems are systems that do not help a business to obtain added value even though they are crucial for the operations of a firm. The strategy is both tactical and strategic since it assist the company gains a competitive advantage and it is crucial for the daily