In a strategic move applauded by industry analysts and customers, the Boeing Company realigned two of its major operating units last summer to create a world-class defense business, Boeing Integrated Defense Systems.

The new business was created by combining the exceptional workforce, technology and programs of the Aircraft and Missiles unit, based in St. Louis, and the Space and Communications unit, based in Seal Beach, Calif. Aircraft and Missiles was a recognized global leader and supplier of military systems and platforms. Space and Communications was a recognized global leader in the integration of systems provided to commercial, civil and military customers worldwide.

“The formation of IDS was motivated by market awareness and the desire to provide our customers with integrated, capability focused solutions,” said Shep Hill, vice president of business development for Boeing Integrated Defense Systems.

The move leveraged the historic strengths of both businesses and created a single unit with combined 2002 revenue of about $25 billion. The efforts of the group’s 77,000 employees are organized around nine customer-facing businesses. Those businesses are: Aerospace Support, Army Systems, Air Force Systems, Homeland Security and Services, Launch and Satellite Systems, Missile Defense Systems, NASA Systems, Naval Systems and Space and Intelligence Systems. Strategic Architecture and Integrated Defense Advanced Systems (IdeAS) are two additional organizations created to ensure technology innovation and integration across the enterprise.

Recent new business wins worth billions of dollars over the next decade include a $9.7 billion follow-on procurement contract for 60 additional C-17 Globemaster III transport aircraft and one of two Component Advanced Development contracts for the Multimission Maritime Aircraft. In addition, Boeing was named prime contractor for programs that are key to the Department of Defense’s integrated battlespace, including the Family of Advanced Beyond Line-of-Sight Terminals, the Joint Tactical Radio System Cluster 1, and Future Combat Systems. It was also given the nod to build the third spacecraft for the Wideband Gapfiller Satellite program.

“These contracts are the result of listening to and working with the customer to provide affordable, effective and transformational solutions. They also demonstrate the broad talent of a workforce able to develop unique architectures, systems and platforms,” Hill said.

Other successes, in recent months, include the successful inaugural launch of the Delta IV rocket that carried a European telecommunications satellite into space, the first flight of the autonomous X-45 Unmanned Combat Air Vehicle (UCAV), designed to revolutionize tactical air warfare, and the Republic of Korea’s order for 40 of the F- 15K version of the world’s most capable multi-role tactical fighter.

While day-to-day operations and program execution are handled by the customer-facing business units, the future growth and strategic direction of Integrated Defense Systems will be driven by strategic business councils for seven market areas. Those are: Integrated Battlespace, Mobility, Precision Engagement, Launch and Orbital Systems, Missile Defense, Network Solutions and Sustainment. The councils develop market strategies and through the IDS Strategic Business Council allocate resources and integrate strategies across multiple businesses.

“The marketplace is changing, becoming more global, more competitive and more complex,” Hill said. “These changes make market anticipation and customer focus essential. The formation of Integrated Defense Systems brings together the incredible strengths of our people, programs and technology. Success lies in meeting our customers’ expectations with affordable, reliable and quality products and services. Our legacy is great, as is our ability to shape the future.”