IT-414 MIS – Case 2

July 16, 2009 at 11:21 (IT-414 MIS)

Lufthansa: Taking Mobile Computing
to the Skies While Keeping the
Mobile Workforce Connected

How do you keep 3,500 highly mobile airline pilots
trained on the latest technology and procedures;
plugged into the corporate infrastructure; and informed
about schedules, weather events, and other facts that
affect their jobs throughout the world? What’s more, how do
you accomplish this while controlling costs?
In 2001, Lufthansa launched the “Lufthansa Mobile Initiative,”
which aimed to provide all pilots with notebook computers.
Lufthansa knew that the benefits of mobile computers
would translate into major gains for the company as a whole.
The Lufthansa Mobile Initiative is yielding significant
productivity and efficiency improvements, while keeping
costs manageable.
The successes being realized today were not without significant
challenges. Lufthansa had strict parameters that notebook
PCs needed to meet before the pilots’ union would sign
off on the plan. Chief among the requirements were: The
notebooks had to have enough performance capability to run
key software applications used by the pilots, the notebooks
had to weigh less than 2 kilograms (about 4.4 pounds), their
screens had be at least 12 inches diagonally as well as be bright
and easy to read due to lighting conditions in the cockpit, and
battery life had to be at least five hours for long airplane trips.
For the early tests of the project in 1998, Lufthansa decided
to purchase mobile systems based on the low-voltage
Mobile Intel® Pentium® III Processor–M operating at
600MHz, with 128MB of RAM and a 20GB hard drive.
Today, Lufthansa pilots enjoy state-of-the-art notebook
PCs with several times the power and performance of the
early Pentium III platforms while weighing in at less than
3.5 pounds.
So far, the payoff from mobile computing at Lufthansa
has been significant. Giving notebooks to pilots provided the
company with several key tangible and intangible benefits:
• Pilots are more productive because they can access
updated data electronically.
• They are more productive because they can work in a
variety of locations including airplanes, airports, hotels,
and other remote locations.
• Pilots appreciate the convenience of not having to carry
heavy manuals and documentation to multiple locations.
• Pilots can take their required training on their laptops
during downtime in any airport.
In fact, now that all of Lufthansa’s pilots have laptops,
Lufthansa no longer conducts classroom training. “Such
training used to mean preparing training centers, arranging
a time when pilots could attend the sessions, and actually
getting the pilots to the training location,” recalls Rolf
Mueller, project manager for the Lufthansa Mobile Initiative.
“Now pilots use their notebooks for computer-based
training whether they are learning about new aircraft or
things like specific hydraulic systems.” Lufthansa also plans
to phase out the desktop computers that it had previously deployed
in airports, thereby streamlining its infrastructure
and cutting even more costs.
Helping Lufthansa even further is the fact that the total
cost of ownership for notebooks has decreased significantly
over the last several years. Capital costs are lower. End user
operations and technical support costs are decreasing due to
improved manageability and stability. “We’ve been quite
happy with Windows XP,” says Grabbe. “Not only is it stable,
but it’s flexible and gives us an environment that is easy
to update and keep current. Overall, the total cost of ownership
is quite low because of our system of browser-based
components and a sophisticated update network.”
Mobile computing is catching on throughout the
Lufthansa Group. Rolf Mueller says that in addition to
Lufthansa Cargo, he has been talking to Lufthansa CityLine,
the company’s short-haul passenger line that serves Europe.
“We’re really leading the way in using mobile computers.
Lufthansa CityLine will end up with 800 of its own notebooks
for flight captains.”
And the Mobile Initiative at Lufthansa extends beyond
the company’s crew. Lufthansa understands fully the needs
of mobile workers, including its own customers. The airline
is testing a new FlyNet project that will give passengers
in-flight access to the Internet.
As it moves forward, Lufthansa can point to a litany of
benefits when describing its mobile computer program.
“Most of all, pilots work when they can,” says Rolf Mueller.
“Whether they are on their way to the airport, waiting during
a layover, or away from work.”
Lufthansa regards their mobile computing initiative to
be extremely successful based on their high return on investment
(ROI). By deploying mobile PCs to all their pilots they
have realized significant productivity benefits while effectively
managing costs.
Case Study Questions
1. Are many of Lufthansa’s challenges identified in the
case similar to those being experienced by other businesses
in today’s global economy? Explain and provide
some examples.
2. What other tangible and intangible benefits, beyond
those identified by Lufthansa, might a mobile workforce
enjoy as a result of deploying mobile technologies?
Explain.
3. Lufthansa was clearly taking a big risk with their decision
to deploy notebook computers to their pilots.
What steps did they take to manage that risk and what
others might be needed in today’s business environment?
Provide some examples.
Source: Adapted from Intel Corporation, “Lufthansa Mobile Computing
Case Study, 2002.” © Intel Corporation, 2002.