LUFTHANSA: CASE
STUDY
SUBMITTED TO: PROF HIMANI KAPADIA
SUBMITTED BY : GANI SHAIKH
UNDERSTANDING OF THE CASE
PROBLEMS FACSED BY LUFTHANSA BEFORE
IMPLEMENTING MOBILE WORK FORCE
In this case study, Lufthansa airlines were facing issues related to how to train
their pilots 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 and also to accomplish this all in task
while controlling the costs. As pilots were facing lot of issues to carry heavy
manuals and documentation to multiple locations which got hard to manage all
the information. Also for training their pilots they have to arrange the time when
pilots could attain the sessions and Such training used to mean preparing
training centres which increase our cost for training the pilots.
ADVANTAGES AFTER IMPLEMENTING MOBILE
WORKFORCE
After implementing Information system tool they were able to achieve all the
objectives like after implementing information tool productivity has increased
as because they can access up- dated data electronically and then they can work
in a variety of locations, including airplanes, airports, hotels, and other remote
locations. It was convenience for the pilot because they don’t have to carry
heavy manuals and documentation to multiple locations. And now Pilots can
take their required training on their laptops during downtime in any airport.
Because of notebook computer now pilots can be trained without spending on
infrastructure of training so it saved money and even they have to take pilots to
the location which used to consume lot of time so we can say it also saved times
of the company. It also gave an environment which let them to update and keep
current. It was very cost effective because of that firm was able to do task and
accomplish all the objectives without spending too much. Using the Connexion
system by Boeing, Lufthansa can deliver broadband Internet to the aircraft and,
ultimately, to their passengers. Lufthansa, through Boeing, is selling the service
directly to passengers and offers either flat-rate pricing, at $19.95 for flights of
between three and six hours or $29.95 for flights of six hours or more, or
metered pricing, at $9.95 for 30 minutes and 20 cents per subsequent minute
because of internet facilities on flight they were able to generate more revenue.
We can say that because of mobile computer program most of the pilot work
when they can whether they are on their way to airport, waiting during a
layover, or away from work. And because of internet facilities the Lufthansa
passenger can be more productive while travelling. By deploying mobile PCs to
all their pilots, they have realized significant productivity benefits while
effectively managing costs.
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.
yes, there are many challenges face by Lufthansa’s are been faced by other
businesses in today’s global economy. In this competitive business environment
making the best use of technological innovations in order to increase the
efficiency and effectiveness of the business is one of the greatest challenge of
an organization. It’s a challenge to identify the best available technology as per
the nature and financial status of organization and implement it in order to
increase the efficiency of organization. While adopting new technology there
should be the proper consideration of its implications and outcomes. As it’s said
in the passage technology and price may not be the only thing that determines
the success of the service. So other things directly or indirectly related with it as
well are to be considered. Deciding to go for something new is a challenge in
itself and facing the challenges and overcoming them is the business culture.
For example, dell company implemented Information System in their business
to survive in the market they were able to connect to the customer very well and
also gave employee free courses so that they can learn anywhere with the online
courses their productivity got increased and they able to enhance their skills and
many problems has been solved by the use of correct Information system tools.
2) What other tangible and intangible benefits, beyond those identified
by Lufthansa, might a mobile work- force enjoy as a result of
deploying mobile technologies? Explain.
Technologies are developed to enhance productivity of the organization. Mobile
technologies are even more helpful to those who do lots of travelling and don’t
have enough time. Mobile workforce needs to have a technology that is fast,
accurate, informative, reliable and easy to carry. As explained in the paragraph,
mobile workforce enjoys the benefit of Productivity, Convivence and Flexibility
from the use of mobile technologies. Besides, there are several other benefits
that mobile workforce can get from mobile technologies. Some of them are
explained below:
§ Customer satisfaction: In flights people are not supposed to use
networking devices and facilities. When flights would be providing
internet facilities, especially those people travelling for business purpose
can have the benefit of internet in flights and proceed with their work
which would ultimately increase the productivity of consumer resulting
customer satisfaction.
§ Increased Confidence Level of Crew: Since there would be all the
information’s required, available with them crew would feel more
confident about their operation.
§ Better working environment: All the pilots would be clearly aware
about their position and their operation that would ensure a better
working environment for both pilots and costumers.
§ Accuracy and reliability: Data’s and Information’s Provided from the
same channels would be the same, so there would be less chance of
conflicts resulting the accuracy and reliability of their performance.
§ Increased profitability: With sophisticated and productive flying
experience people would be willing to pay more for the tickets resulting
goodwill and profitability of the business.
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
Indeed Lufthansa was taking a very big risk by taking the decision to provide
notebook computers to their pilots and using internet facilities in their airplanes.
They had been very thoughtful about the feedback they would be getting and
were very positive towards the outcomes of their decision so they were prepared
with very efficient plan and fool proof strategy because of which, decision went
in favour of them. As for the internet facilities in airplane they performed
survey and looked out for the possibility of the success of this facility from a
very critical viewpoint. They are very particular about their idea and are doing
very good feasibility study to support their idea. So maybe they will be able to
overcome this challenge as well.
The steps they followed in order to manage the risk are:
§ They valued the power of pilots union and were flexible enough to
consider their demand.
§ They found the best possible alternative and made sure that it doesn’t
increases the overall controlling cost of the organization.
§ They made workforce comfortable with their decision, which increased
the productivity of its pilots, increasing the productivity of the
organization in total.
§ They watch out for the sample first, so that before implementing it they
were sure about the effectiveness of their decision.
§ They studied what consumer thinks about their plan by conducting
survey, which ensured the practicality of their idea.
In today’s business environment something more is to be considered in order to
manage the risks:
§ Competitors and their decision as well are to be looked after.
§ Safety measures and productivity of the decision in long run as well is to
be analysed properly.
§ Reliability of the survey conducted and study made is to be checked
properly in order to minimize risks.
