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Information Systems management - Research Paper Example

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Boeing, which is a renowned global designer, manufacturer and seller of fixed-wing planes, rotorcraft, satellites as well as rockets, is currently being faced by key information technology challenges leading to defects in its electrical systems, hence its current grounding…
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Download file to see previous pages expenditure from 10 to 6 billion dollars and development time from 6 to 4 years (Tang &Zimmerman, 2009).Supply chain integration is basically the “approach of technically linking supply chain of vendors and customers” so as to make sure the “process is streamlined and to increase efficiency and accuracy.”(Pearlson & Saunders, 2010, p.152).However the final outcome was a complete opposite. As things stand now, apart from the project being in over budget of billions of dollars, it is also behind schedule by 3 years (Steve, 2013). Boeing’s Chief of Commercial Airplanes, Jim Albaugh, explains that they have spent so much more money than anticipated trying to recover than they ever would have used had they tried keeping major technologies nearer home (Steve, 2013).
The main problem facing Boeing is shortfall in supplier oversight due to enthusiastic embrace of Integrated Supplier Information System, which allows suppliers to log in a portal, provided by Boeing, and thus need not necessarily meet with Boeing’s main team in US (Steve, 2013). Boeing further, rather than planning for face-to-face basis of communication, or on-site communication relied so much on their information systems with a web-based communications instrument known as Exostar that required suppliers to feed the latest information regarding their work progress (Steve, 2013). This IT equipment was to offer improved control, supply chain visibility as well as integration of important business processes, thus reducing development cost and time (Steve, 2013).Thus, instead of face-to-face kind of communication, the information technology tool was supposed to, in real time, flag problems. Not surprisingly, this technology miserably failed. As a result of this “remote control” outsourcing business, Boeing 787 encountered several Information systems problems that included electrical system faults in addition to battery issues that resulted to the Dreamliner’s grounding (Dominic, 2013). This ...Download file to see next pagesRead More
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