BAE Systems

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BAE Systems
Case 2 Group 4 Page 282

• Stacy Adkins Reanetta Walker Christian
  Gasse Crystal Enloe Johnny Vanhorn Thilo
  Grabo

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In 1999 BAE Systems invested 150,000 to
discover if employees have the right information
to support their decision making process.
The results were eye-opening ? No right
information at key stages. ? 80 of employees
spent 30 minutes to find the right information. ?
60 of employees wasted an hour or more
duplicating the work of others.

Richard West, BAEs organizational and e-learning
manager, in England
They did not seem to know what was going on
elsewhere ? Information overload on its
intranet. ? Unstructured Information. ? Search
engines were inadequate for keyword searches.
Thilo Grabo
3

• In 1999 BAE System installed a new search engine
• ? Autonomy Corp. (San Francisco) developed the
  search engine.
• ?Search engine uses advanced pattern matching,
  intelligent agents, and other artificial
  intelligence (AI) technologies.
• ? Autonomys AI-based technology was able to flag
  whether other people are searching for the same
  information and, perhaps working on common
  problems.

The early benefits of the new search engine.
Two disparate groups of engineers in the U.K.
were working on wing construction issues. After
using the Autonomy system to search for
information, one of the group found out that
another group was working on the same problem.

• ? Catching the redundancy early saved millions
  for BAE Systems.

Thilo Grabo
4
New search engine is able to reduce the time
needed to retrieve information from the intranet
by 90 percent.
Helping the employees by the day-to-day job.
People can find information about the job and
contact information within minutes.
Search Engines
Researches on the old search system lasted
nearly seven days till one month with the result
that nobody wanted to use a lot BAEs
intellectual capital.
Thilo Grabo
5
BAE SYSTEMS heritage of evolution and mergers
have created a global leader that has a proud
past and an eye toward the future.
Major Moments

• 1970s
• April 1977 - British Aerospace (BAe) formed as a
  nationalised corporation by the merger of British
  Aircraft Corporation, Hawker Siddeley Aviation,
  Hawker Siddeley Dynamics and Scottish Aviation.

Reanetta Walker
6
Major Moments Continued-

• 1980s
• February 1981 - UK Government sold 51.57 of its
  shares to public. Foreign shareholding initially
  limited to 15. (Later raised to 29.5).
• May 1985 - UK Government sold its remaining BAe
  shares but kept special 1 share to ensure
  Company continues under UK control.

• 1990s Present
• November 1999 - British Aerospace and Marconi
  Electronic Systems merged. The company is called
  BAE SYSTEMS.

• Over the years they have had several alliances
  and agreements with other British, French,
  German, Scottish, ,Australian, American, and
  Dutch companies.

Reanetta Walker
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Products and Services

• BAE SYSTEMS designs, manufactures, and
  supports military aircraft, surface ships,
  submarines, space systems, radar, avionics,
  C4ISR, electronic systems, guided weapons and a
  range of other defense products, many of these
  with international partners.

Crystal Enloe
8
Company Information

• of employees 90,000 worldwide
• CEO Michael John Turner
• Competition
• Boeing
• EADS
• Lockheed Martin

Crystal Enloe
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Financial Position

• Financial Highlights
• Profit before interest 465m
• Fully diluted earnings per share 7.2p
• Dividend per share 3.7p
• Operating cash flow 273m
• Net debt 1,254m
• Order book 46.4bn

Crystal Enloe
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BAE Systems The benefits of AI in knowledge
management systems

• What problems was BAE having in knowledge
  sharing? Are such problems common to many
  companies? Why?

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What problems was BAE having in knowledge
sharing? Are such problems common to many
companies? Why?

• In BEA they found that
• 2/3 of their top 120 decision makers did not have
  the right information at key stages
• 80 of the employees were wasting time trying to
  find the information to even start their jobs
• 60 were spending an hour or more just
  duplicating the work of others

Stacy Adkins
12

• These problems are evident in companies that
  have two or more locations Why?
• The more locations a company has, the more
  difficult and complex it is to both share
  information and coordinate activity
• One piece of the company does not know what the
  others are working on, viewing, or experiencing
• This is where knowledge management systems
  come in-

Stacy Adkins
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BAE Systems The benefits of AI in knowledge
management systems

• How does BAEs knowledge management
• system help solve such problems?

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How does BAEs knowledge management system help
solve such problems?

• Repetition of the problems
• information overflow
• lack of structure
• search engines in use did not have the relevant
  abilities

• Results
• time-consuming search processes
• occurrence of duplicated work
• employees became search-avers

• Background BAE tested two or three intranet
  search engines.
• Implementation of a solution provided by Autonomy
  Inc., San Francisco.
• Main reason for the decision The use of
  artificial intelligence (AI) technologies by that
  search engine.

Christian Gasse
15
Question 2 continued

• Examples of AI-based technology's abilities
• advanced pattern matching
• intelligent agents

• Identification if other people throughout the
  organization were looking for the same
  information, i.e. realizable synergies
• Ability to scan BAEs network, so that an upload
  of information became redundant.
• Reduction of the time spend on a search process.
• Example 90 percent reduction of time needed to
  retrieve the wanted information after one year of
  implementation

Christian Gasse
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BAE Systems The benefits of AI in knowledge
management systems

• What are some of the business benefits and
  potential limitations of BAEs knowledge
  management system?

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What are some of the business benefits and
potential limitations of BAEs knowledge
management system?

• Benefits
• Increased Efficiency-work hours savings reduced
  or eliminated redundancy
• Willingness of Employees to Use the System
• Easy to Use Understand
• See Immediate Results

Johnny Vanhorn
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Question 3 continued

• Potential Limitations
• Languages-Global Network
• Fuzzy Logic
• Artificial Intelligence is in its Development
  Stage-It cant read text and understand it on the
  level of and individual
• Cost
• Technology-hardware
• Machine Learning Methods are in Development Stage

Johnny Vanhorn