tools for strategic design

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Systems Engineering Approach for Advanced Materials Application in

Aeronautics

Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa

A Visual Toolbox for BusinessStrategic Design

Enrico Viceconte, Stoà

July 24, 2013

[email protected]

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Aeronautics


Our Toolbox

Generic Competitive Strategies– Competitive advantage

Understanding Vertical Integration– Value Chain & Supply Chain

Understanding Horizontal Integration– Product-Market Matrix

Operations Strategy– Product-Process Matrix

Situation Analysis– BCG, Industry Analysis, SWOT

Positioning & Strategic Framework

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Aeronautics


Visual Thinking (per INCOSE)

http://www.incose-cc.org/2012/02/solving-systems-engineering-problems-on-the-back-of-a-napkin/

– 50% of our brain is dedicated to visual processing.– “Whoever best describes the problem is the one most likely to solve it.”– Systems Engineers use pictures to get across the problems and their

solutions.– Functional Flow Block Diagrams, System Boundary Diagrams, IDEF0, Use

Cases, ConOp diagrams, all the DoDAF diagrams like the OV-1, etc.– All of these “pictures” are used to communicate a design of a solution to a

problem. – Just look at what the Zachman Framework for enterprise architecture is all

about: it’s a slice and dice of different views of a system.– And think about how the Systems Engineer become a story teller during

each design review…

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Generic Competitive Strategies

AN ESCLUSIVERESOURCE AN ESCLUSIVE

CAPABILITY

EFFICIENCY

EFFECTIVENESS

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Mission, Vision, Values

This Strategic Plan outlines our long-term goals as an agency and describes how we will accomplish these goals over the next decade or more.

Our goals cover more than flagship missions and cutting-edge technology development.

We are committed to working smarter, doing business differently, and being transparent in our operations.

Continuous improvement in our program management, in particular, is essential to our future success, and we will keep the public’s trust through transparency and accountability for our actions.

We will continue to adhere to our core values of safety, integrity, teamwork, and excellence while we foster the pioneering, innovative, and partnering spirit that drives us and continues to advance our Nation.

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Mission, Vision, Values

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Vertical integration

Tier NTier N -1Tier N -2 Tier N +1 CONSUMERS

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BACKWARD

FOREWARD

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BACKWARD

FOREWARD

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Value Chain

0 25 $ 25 50 $ 50 75 $ 75 100 $

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0 25 $ 25 50 $ 50 75 $ 75 100 $

25 $

50 $

75 $

100 $

Tier NTier N -1Tier N -2 Tier N +1

PRODUCTCOMPONENTSUBCOMPONENT

CHANNEL

PRODUCTIONVALUE ADDED

SUPPLYVALUE ADDED

COMMODITIESVALUE ADDED

DISTRIBUTION/RETAILVALUE ADDED

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10 %

45 %

85 %

100 %



CHANNEL

GREAT

BRAND!


SUPPLYVALUE ADDEDCOMMODITIESVALUE ADDED


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Aeronautics




CHANNEL


SUPPLYVALUE ADDED



GREAT

BRAND!

100 %

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100 %



CHANNEL


SUPPLIERVALUE ADDED



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MANUFTier 1Tier 2 AIRLINES

INTEGRATOR -PRIME MANUFACTURER (OEM)

TIER N-1

TIER N-2

TIER N-3

Tier 3

AIRLINES100 %

Supply chain

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Horizontal integration

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MARKETPENETRATION

Product-Market Matrix

NEW PRODUCTSDEVELOPMENT

NEW MARKETSDEVELOPMENT DIVERSIFICATION

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Product-Process Matrix

RANGE/MIXDIFFERENTIATONHIGH COST PER UNIT’

STANDARDIZATIONMASS-MARKET

LOW COST PER UNIT

HIGH FLOWCONINUITYRIGIDITYMECHANIZATION/AUTOMATIONCAPITAL INTENSIVE

LOW FLOWFLEXIBILITY

DISCONTINUITYLABOR INTENSIVE

Job Shop

Flow Shop

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Project

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Job Shop

PROCESSO/PRODOTTO

A

PROCESSO/PRODOTTO

B

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Flow Shop

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Continuous Process

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LOW COST PER UNIT


LOW FLOWFLEXIBILITY


FordProductionSystem

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LOW COST PER UNIT


LOW FLOWFLEXIBILITY


ToyotaProductionSystem

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+FLOW

+VARIETYFlexibleManufacturingSystems



LOW COST PER UNIT


LOW FLOWFLEXIBILITY


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The 787’s Production Process

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Strategic Positioning

A

B

C

D

E

FG

H

I

L

PRICE

QU

ALI

TY

LOW AVERAGE HIGH

A

B

CD

E

F

GH

I

L

PRICE

INTE

GR

ATI

ON

LOW AVERAGE HIGH

A

B

C D

E F

G

H

I

L

PRICE

INN

OVA

TIO

N

LOW AVERAGE HIGH

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Aeronautics


Marketing Mix CoherenceHIGH

LOWPRODUCT COMMUNICATION CHANNEL PRICE

SELECTIVE HIGHSELECTIVE

MASS MASS LOWCOMMODITY

SPECIALTY

A

B

C

A

B

C

A

B

C

A

C

B

A

PRODOTTO

PRODOTTO

C

PRODOTTO

B

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Strategic Framework (Blue Ocean)

X Y Z W

A

A

A

A

K

B

B

B

B

B

A

C

CC

C

C

FEATURES:

HIGH

LOW

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Boeing 787 Features

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Boeing 787 Features

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Situation Analysis (SWOT)

Strengths – S1. …..2. …..3. …..

Weaknesses – W1. …..2. …..3. …..

Opportunities – O1. …..2. …..3. …..

Threats - T1. …..2. …..3. …..

SO Strategies• HARVESTING -CAPITALIZE• ATTACKING• LEVERAGING TO ATTACK

WO Strategies• INVESTMENT• BUILDING STRENGTHS

WT Strategies• EXIT• BUILDING STRENGTHS

ST Strategies• DEFENSE• MINIMIZE• LEVERAGING TO DEFENSE

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Situation Analysis (SWOT)

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Boeing SWOT Analysis

Strengths– Innovation and Technical Expertise– Strong reputation of quality and industry leadership– Long-standing customer relationships– International customer base– Supplier-Component Manufacturer Networks– Commercial Aircraft is one of six business divisions

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Aeronautics



Strengths– Innovation and Technical Expertise– Strong reputation of quality and industry leadership– Long-standing customer relationships– International customer base– Supplier-Component Manufacturer Networks– Commercial Aircraft is one of six business divisions

Weaknesses– Development Costs for new products: $8-10 Billion– Reliance on Suppliers-Component Manufacturers (both

strength and weakness)

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Opportunities– New technologies to build lighter, longer range aircraft– New airline customers in Asia and Pacific market– Airline travel pattern changes supporting Boeing product line

Threats– Aggressive Airbus Price Discount Practices– WTO dispute regarding EU subsidies– Changing economics– Domestic airline bankruptcies– Changing governments, politics and business partners based in

those countries– Example: Dubai Port management controversy– Air travel vision could be wrong

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Situation Analysis

STRENGTHS = CAPABILITIESOPPORTUNITIES = DEMAND FOR CAPABILITIES

FIRM’SCAPABILITIES

MARKET’SDEMAND FORCAPABILITIES

BARRIERS

VALUE FLOW

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volume

time

Market share C

Market share B

Market share A

Sta

rts

A

Sta

rts

B Sta

rts

CNew Product

MATURITY

GROW

TH

INTRODUCTION

COMPETITORS:A: InnovatorB: FollowerC:Latecomer

Product Lifecycle

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volume

time

Sto

ps A

Sto

ps B

Sto

ps C

MATURITY DECLINE

DEATH

GROW

TH

INTRODUCTION

A: InnovatorB: FollowerC:Latecomer

Product Lifecycle

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ADOPTION

time

MATURITY

ADOP

TION

INTRODUCTION

Process Lifecycle

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volume

The Innovator (A)Starts with a new product

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Industry Analysis


?

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Industry Analysis & Generic Strategies

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Grazie!

tools for strategic design

Business

systems engineering

aeronautics enrico viceconte

sto istituto

advanced materials application

systems engineers

consumers backward foreward

visual toolbox

conop diagrams