Helping shape markets of tomorrow

Phil Condit
Chairman and CEO

"Market shaping" is an important concept for Boeing. It's a capability I believe will keep Boeing the world's leading aerospace manufacturer in the 21st century.

Simply put, market shaping carries a Boeing core competency — detailed customer knowledge and focus — another step forward. Market shaping is about understanding where your customer is going; employing Boeing creativity, resources and technological expertise to cooperatively help them there; and having the right products and services waiting when they get there.

Market shaping does not mean telling your customer what they should do or what they should buy. Rather, think of market shaping as getting out ahead of the customer and "paving the streets" to allow them to easily reach that future state.

Take, for example, Nokia wireless phones. Nokia initially jumped ahead in the cell phone market when it introduced small, lightweight and consumer-friendly mobile phones. Nokia's market foresight, combined with advanced technology, dramatically reshaped and expanded the global cell phone market.

Market shaping isn't easy. It involves thinking hard about the ultimate customer. For Boeing it means going out 10, 15, even 20 years and asking: What will the airline passenger of the future want from the air transportation system? What will give the war fighter the critical edge in a conflict of the future? Then working backwards to determine what we need to do today and tomorrow.

Some answers may be a surprise. When Boeing introduced the "market-fragmentation" concept in the mid-1990s — and created a product line that emphasized smaller airplanes capable of flying non-stop, point-to-point services — the idea was met with skepticism by many.

Today, however, the market is moving in that direction, average airplane size is decreasing, and point-to-point routes continue to proliferate.

Prime examples of Boeing's market-shaping focus include the company's Air Traffic Management and Connexion by Boeing business units. ATM is promoting a revolutionary satellite-based global air traffic management system. Connexion by Boeing is pioneering real-time broadband connectivity for airplane passengers, airplane crews and mobile platforms worldwide.

This issue of Boeing Frontiers features several other Boeing market-shaping initiatives. They include the new 737-based Wedgetail Airborne Early Warning and Control aircraft and the "Bird of Prey" technology demonstrator.

Providing key support for market-shaping activities today at the company's Integrated Defense Systems business unit is the Boeing Integration Center. Located in Anaheim, Calif., the BIC is an 11,000-square-foot modeling and simulation facility that helps Boeing conceive, develop, test and demonstrate how multiple command, control, communication, computer and intelligence systems can work together.

The "integrated battlespace" that results offers military commanders, as well as front-line troops, improved and timely situational awareness and helps them make faster and better-informed decisions.

This "network-centric" focus was a factor in Boeing's recent win of the U.S. Army's Future Combat Systems contract with partner Science Applications International Corp. FCS has up to a $4 billion potential over the next five years and could make Boeing the U.S. Army's No. 1 contractor.

Indeed, if Boeing can envision future markets accurately, couple that with our core competencies of detailed customer knowledge, large scale system integration and Lean systems, then we can shape our markets and build a prosperous future for Boeing.