Managers and business organizations invest in information technology and systems because such strategies provide real economic value to the business. The decision to implement or sustain an information system presumes that the profits on this investment will be higher than that of other assets.
These higher profits can be expressed as increases in productivity, as increases in revenues which will improve the firm’s market value, or perhaps as better long-term tactical positioning of the firm in certain markets which produce superior returns in the future(Laudon and Laudon 18). Despite all the information system’s capabilities, Companies have not been able to realize the full potential of information technology infrastructure since the cost of computing services has increased dramatically. In light of this, the following paragraphs discuss Boeing’s activities in information systems; outlining the strengths and weaknesses.
Boeing Corporation is a commercial jet aircraft company that embraces information systems as a driver of capital management, as a foundation of doing business, and as a strategic opportunity and advantage. The following are the values that are realized through the information systems:
- As an extensively high technology and sophisticated industry, incorporating electronics, metallurgy, chemicals, and other manufacturing components; tools such as Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) are used in enhancing simulation, modeling, and concurrent engineering; this enables the managers of the company to make better decisions, hence improving business processes through the cutting down of development time.
- Boeing uses IS to gain a competitive advantage. In the value chain, the company incorporates information technology mainly in inbound logistics, operations, and service. As a business–level strategy, the Advanced Information System enables the firm to manage an automated warehousing system where enterprise architecture and program management services are maintained (Business Week). Computing systems and programs are utilized at each phase of the business process, from product growth through production and after-sale services.
- The internet and associated technologies have made it possible for Boeing to carry out business across organizational boundaries. Through this, the company embraces on-demand computing to reduce information technology infrastructure costs and create product awareness through the internet. According to Boeing’s News Release, GKN Aerospace North America, a firm that fabricates airplane parts uses a Sentinel system that incorporates a Web interface to examine the main indicators of the manufacturing systems of Boeing. Through this service, Boeing can control its need for production parts. This is the transformation of business enterprise through information technology.
- As a strategic opportunity and advantage, the company cuts down inventory through the implementation of a just-in-time system. An aircraft has thousands of engineered parts and thus the inventory and just-in-time system require information systems that are integrated with the main suppliers of the parts.
- Through IT, the company trains its workforce on the ways to manage the business on a global scale. This increases competitiveness and productivity since many business operations rely on information technology.
- Boeing has a company-wide information technology process that incorporates the best tools in computing, such as Java and SQL Server. In essence, the company has its information-related products and services; which include EASY5 for modeling and Sparse Optimal Control Software for solving control problems(Boeing, Information Technology and Information Systems). The sale of these tools increases the firm’s revenue.
Despite all the capabilities provided by information systems, the company still faces some challenges in relation to the management of information systems. The following is a major weakness:
- Ethics and security: The decision to designing applications that can be used in an ethically and socially responsible manner seems to bring about controversial thoughts. For instance, an employee was charged in 2007 with theft of sensitive data and leaking them to The Seattle Times (Gaudin). Furthermore, the security of information is a major issue that contributes to the high costs of maintaining the company’s IT infrastructure.
Therefore, the general conclusion that can be derived from this analysis is that Boeing Corporation has been able to ensure that information systems contribute to corporate values that are in line with the core strategic business operations. In addition, since there is a responsibility and control challenge, the company is constantly in the process of designing information systems that are secure, function as intended, and so that humans can control the process of information dissemination.
Works Cited
Boeing. The Boeing Company. 2009. Web.
Business Week. Boeing Advanced Information Systems-Maryland Operations. 2009. Web.
Gaudin, Sharon. Information Security News: Boeing Employee Charged With Stealing 320, 000 Sensitive Files. 2007. Web.
Laudon, Kenneth, C., & Laudon, Jane, P. Management information Systems: Managing the Digital Firm. (10th Ed).Upper Saddle River, NJ: Pearson Prentice Hall Inc. 2007.