How Boeing is Organized Corporate functions: Business Development and Strategy Communications Engineering, Operations and Technology Finance/Shared Services Group/Boeing Capital Corp. Human Resources/Administration International Law Office of Internal Governance Public Policy World-class performance Integrated Defense Systems Commercial Airplanes Two businesses supported by nine corporate functions
Lean enterprise Boeing’s entire enterprise will be a lean operation, characterized by the efficient use of assets, high inventory turns, excellent supplier management, short cycle times, high quality and low transaction costs.
Weaknesses • A hierarchical, ridged, and semi- autocratic management style, which is a product of its military heritage. • Labour problems. • Dependence on US government and WTO-incompatible subsidies.
Connexion by Boeing's real-time, high-speed Internet and data communications service is designed to meet the needs of commercial airline operators and their passengers, as well as executive aircraft for business and government.
The Connexion by Boeing service is installed on more than 140 aircrafts. operated by Lufthansa, SAS (Scandinavian Airlines System), ANA, Japan Airlines, Singapore Airlines, China Airlines, Korean Air, Asiana Airlines, El Al Israel Airlines, and Etihad Airways.
As part of its service evolution, Connexion by Boeing has expanded the availability of its live global television service, which features four channels of news, financial and sports news-related programming delivered directly to passengers’ laptop computers.
Connexion by Boeing uses a worldwide network of geosynchronous satellites and ground-based receiving stations to relay data between aircraft and the global information network. An advanced-technology antenna designed and built by Mitsubishi Electric Co. enables aircraft to maintain high-quality connectivity, even at high latitudes.
The prices varied from airline to airline, but were typically…
CONNEXION-PRICING $29.95 $19.95 $14.95 $9.95 More than 6 hours- for long-haul flights between three and six hours- medium-haul flights flights less than three hours. 30-minute starter package Flat rate option (Unlimited access to the Internet) Metered Pricing Option (with rates of $0.25 per minute thereafter) price duration options
Connexion's system costs about $500,000 or more to install on an aircraft
Boeing's failed Connexion online service was costly to install and operate, resulting in large expenditures before getting a single paying customer. An industrywide downturn triggered by the 2001 terrorist attacks made the system an even tougher sell to struggling airlines.
lets give a nice round number and say they had $500,000 in air-time revenue from end consumers. This for a technology that cost over $500,000 per plane to install (140 aircraft had been outfitted at the time)
Connexion had $25M in revenue, but also notes that over $1B was invested over 6 years.
"Extensive" market research by Boeing came up with a definitive statement that "38% of frequent travelers are willing to pay at least $25 per flight for full, high-speed access to the Internet and their corporate network".
Clearly, Boeing believed that it they built it, the users would come, and had boxed themselves into a cost structure that embedded this assumption.