1. 1
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 Business
Strategic Design
Enrico Viceconte, Stoà
July 24, 2013
enrico.viceconte@gmail.com

2. 2
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
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

3. 3
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
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…

4. 4
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa

5. 5
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa

6. 6
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Generic Competitive Strategies
AN ESCLUSIVE
RESOURCE AN ESCLUSIVE
CAPABILITY
EFFICIENCY
EFFECTIVENESS

7. 7
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
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.

8. 8
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Mission, Vision, Values

9. 9
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Vertical integration
Tier NTier N -1Tier N -2 Tier N +1 CONSUMERS

10. 10
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Vertical integration
Tier NTier N -1Tier N -2 Tier N +1 CONSUMERS
BACKWARD
FOREWARD

11. 11
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Vertical integration
Tier NTier N -1Tier N -2 Tier N +1 CONSUMERS
BACKWARD
FOREWARD

12. 12
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Vertical integration
Tier NTier N -1Tier N -2 Tier N +1 CONSUMERS

13. 13
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Value Chain
0  25 $ 25  50 $ 50  75 $ 75  100 $

14. 14
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa

15. 15
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa

16. 16
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
0  25 $ 25  50 $ 50  75 $ 75  100 $
25 $
50 $
75 $
100 $
Tier NTier N -1Tier N -2 Tier N +1
PRODUCTCOMPONENTSUB
COMPONENT
CHANNEL
PRODUCTION
VALUE ADDED
SUPPLY
VALUE ADDED
COMMODITIES
VALUE ADDED
DISTRIBUTION/RETAIL
VALUE ADDED

17. 17
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
10 %
45 %
85 %
100 %
Tier NTier N -1Tier N -2 Tier N +1
PRODUCTCOMPONENTSUB
COMPONENT
CHANNEL
GREAT
BRAND!
PRODUCTION
VALUE ADDED
SUPPLY
VALUE ADDED
COMMODITIES
VALUE ADDED
DISTRIBUTION/RETAIL
VALUE ADDED

18. 18
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Tier NTier N -1Tier N -2 Tier N +1
PRODUCTCOMPONENTSUB
COMPONENT
CHANNEL
DISTRIBUTION/RETAIL
VALUE ADDED
SUPPLY
VALUE ADDED
COMMODITIES
VALUE ADDED
PRODUCTION
VALUE ADDED
GREAT
BRAND!
100 %

19. 19
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
100 %
Tier NTier N -1Tier N -2 Tier N +1
PRODUCTCOMPONENTSUB
COMPONENT
CHANNEL
DISTRIBUTION/RETAIL
VALUE ADDED
SUPPLIER
VALUE ADDED
COMMODITIES
VALUE ADDED
PRODUCTION
VALUE ADDED

20. 20
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
MANUFTier 1Tier 2 AIRLINES
INTEGRATOR -PRIME
MANUFACTURER (OEM)
TIER N-1
TIER N-2
TIER N-3
Tier 3
AIRLINES
100 %
Supply chain

21. 21
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Horizontal integration

22. 22
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
MARKET
PENETRATION
Product-Market Matrix
NEW PRODUCTS
DEVELOPMENT
NEW MARKETS
DEVELOPMENT DIVERSIFICATION

23. 23
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Product-Process Matrix
RANGE/MIX
DIFFERENTIATON
HIGH COST PER UNIT
’
STANDARDIZATION
MASS-MARKET
LOW COST PER UNIT
HIGH FLOW
CONINUITY
RIGIDITY
MECHANIZATION/AUTOMATION
CAPITAL INTENSIVE
LOW FLOW
FLEXIBILITY
DISCONTINUITY
LABOR INTENSIVE
Job Shop
Flow Shop

24. 24
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa

25. 25
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Project

26. 26
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Job Shop
PROCESSO/PRODOTTO
A
PROCESSO/PRODOTTO
B

27. 27
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Flow Shop

28. 28
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Continuous Process

29. 29
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Product-Process Matrix
RANGE/MIX
DIFFERENTIATON
HIGH COST PER UNIT
’
STANDARDIZATION
MASS-MARKET
LOW COST PER UNIT
HIGH FLOW
CONINUITY
RIGIDITY
MECHANIZATION/AUTOMATION
CAPITAL INTENSIVE
LOW FLOW
FLEXIBILITY
DISCONTINUITY
LABOR INTENSIVE
Ford
Production
System

30. 30
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Product-Process Matrix
RANGE/MIX
DIFFERENTIATON
HIGH COST PER UNIT
’
STANDARDIZATION
MASS-MARKET
LOW COST PER UNIT
HIGH FLOW
CONINUITY
RIGIDITY
MECHANIZATION/AUTOMATION
CAPITAL INTENSIVE
LOW FLOW
FLEXIBILITY
DISCONTINUITY
LABOR INTENSIVE
Toyota
Production
System

31. 31
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Product-Process Matrix
+FLOW
+VARIETY
Flexible
Manufacturing
Systems
RANGE/MIX
DIFFERENTIATON
HIGH COST PER UNIT
’
STANDARDIZATION
MASS-MARKET
LOW COST PER UNIT
HIGH FLOW
CONINUITY
RIGIDITY
MECHANIZATION/AUTOMATION
CAPITAL INTENSIVE
LOW FLOW
FLEXIBILITY
DISCONTINUITY
LABOR INTENSIVE

32. 32
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
The 787’s Production Process

33. 33
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Strategic Positioning
A
B
C
D
E
F
G
H
I
L
PRICE
QUALITY
LOW AVERAGE HIGH
A
B
C
D
E
F
GH
I
L
PRICE
INTEGRATION
LOW AVERAGE HIGH
A
B
C D
E F
G
H
I
L
PRICE
INNOVATION
LOW AVERAGE HIGH

34. 34
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Marketing Mix Coherence
HIGH
LOW
PRODUCT 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

35. 35
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Strategic Framework (Blue Ocean)
X Y Z W
A
A
A
A
K
B
B
B
B
B
A
C
C
C
C
C
FEATURES:
HIGH
LOW

36. 36
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Boeing 787 Features

37. 37
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Boeing 787 Features

38. 38
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Situation Analysis (SWOT)
Strengths – S
1. …..
2. …..
3. …..
Weaknesses – W
1. …..
2. …..
3. …..
Opportunities – O
1. …..
2. …..
3. …..
Threats - T
1. …..
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

39. 39
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Situation Analysis (SWOT)

40. 40
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
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

41. 41
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
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
 Weaknesses
– Development Costs for new products: $8-10 Billion
– Reliance on Suppliers-Component Manufacturers (both
strength and weakness)

42. 42
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Boeing SWOT Analysis
 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

43. 43
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Situation Analysis
STRENGTHS = CAPABILITIES
OPPORTUNITIES = DEMAND FOR CAPABILITIES
FIRM’S
CAPABILITIES
MARKET’S
DEMAND FOR
CAPABILITIES
BARRIERS
VALUE FLOW

44. 44
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
volume
time
Market share C
Market share B
Market share A
StartsA
StartsB
StartsCNew Product
MATURITY
GROWTH
INTRODUCTION
COMPETITORS:
A: Innovator
B: Follower
C:Latecomer
Product Lifecycle

45. 45
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
volume
time
StopsA
StopsB
StopsC
MATURITY
DECLINE
DEATH
GROWTH
INTRODUCTION
A: Innovator
B: Follower
C:Latecomer
Product Lifecycle

46. 46
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
ADOPTION
time
MATURITY
ADOPTION
INTRODUCTION
Process Lifecycle

47. 47
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
volume
The Innovator (A)
Starts with a new product

48. 48
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Industry Analysis
Tier NTier N -1Tier N -2 Tier N +1 CONSUMERS
?

49. 49
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Industry Analysis & Generic
Strategies

50. 50
Systems Engineering
Approach for Advanced
Materials Application in
Aeronautics
Enrico Viceconte, Stoà - Istituto di Studi per la Direzione e Gestione d'Impresa
Grazie!