BMI British Midland

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Metrics and Cost Transparency at BMI British Midland

The Challenge

bmi british midland is committed to achieving continued business growth through a combination of aircraft improvements, enhanced customer service, development of new routes, and the introduction of long-haul services. In particular it wanted to provide premium customers with a wider range of services, many of them electronically based. To support the required expansion of its IT infrastructure, the airline made the decision to outsource to a specialist IT service company, as this was considered to be the most flexible, reliable and cost-effective way of delivering IT services to the business.

The Solution

There was a need for an infrastructure that would integrate with that of other airlines. At the same time lower cost of ownership was also a requirement. However, the most critical issue for bmi british midland was flexibility. After a formal evaluation Fujitsu Services was chosen to take responsibility for bmi british midland's mainframe, which runs financial applications, aircraft parts inventory, payroll and the service desk. The contract is structured so that Fujitsu Services has responsibility for delivering continuous service improvement, managing life cycle costs, and plans for the future, particularly e-business strategies.

The Benefits

Delivery of continuous service improvement is underpinned by Fujitsu Services' approach to asset management and strategic planning. The routine tracking of IT equipment throughout its life cycle provides instant information for identifying and addressing impending problems before they become critical; costs are managed and effective plans for the future made. With this approach bmi british midland and Fujitsu Services fully expect to make cost savings and these are to be shared by both parties. By moving the mainframe and service desk to an Fujitsu Services location, extra office space will also be released for bmi british midland.

Implementation

Fujitsu Services began to provide line management on bmi british midland's service desk and mainframe services from March 2000. The service framework integrates best practice with leading edge technologies. According to David Wisdish, Computer Services Manager, the transfer of responsibility was "a seamless transition". "The smooth transfer of staff was particularly important to us" says Richard Dawson. The helpdesk operation emphasises effectiveness not throughput, with focus on real customer service. Priorities are set according to business criticality. "Fujitsu Services is bringing a commercial approach to managing IT and that involves much more use of metrics. They have introduced cost transparency and formal processes where none existed before." said Richard Dawson.

Expertise

Fujitsu Services was selected competitively on the basis of a strong track record in IT outsourcing , work with other airlines, and presence in the travel sector. The partnership is focused on using IT to develop its business . bmi british midland welcomed a partner that could be involved in decisions and provide in the future new technologies such as e-commerce and CRM (customer relationship management). "Fujitsu Services has a very similar business culture to bmi british midland", says Richard Dawson. "Both companies want to innovate and grow, and both see IT as critical to business success".