Title of Case: Case Study Point Paper – KLM Airlines

Date: October 12th, 2020

Your Name: Alexandre Humberto Batista de Oliveira

Case Study Point Paper – KLM Airlines

I. Introduction

Koninklijke Luchtvaart Maatschappij (KLM) is an airline company from Amstelveen,

Netherlands. Established on October 7, 1919, KLM is the oldest airline still operating under its

original name, serving the whole world with 33000 employees and with a total of 214 aircrafts.

(KLM’s company profile)

II. Critical Facts

 Operation is done worldwide, based with 33000 employees. (KLM’s company profile)

 KLM carries 34.1 million of passengers per year, and approximately 621000 tons of cargo.

(KLM’s company profile)

 In 2004, KLM merged with Air France, increasing even more its destination and capabilities.

(KLM’s company profile)

 Within their 33000 employees, 1000 are dedicated only to the IT function of the company.

(Pearlson & Saunders, 2012, p. 189)

 Since the attack in 9/11, KLM has been developing and upgrading their IT system in order to

improve security and processes. (Pearlson & Saunders, 2012, p. 189)

 KLM started its changes by appointing a new CIO from the operations area. (Pearlson &

Saunders, 2012, p. 189)

III. Analysis - What is likely to have led to increased trust for the IT organization?

Pearlson & Saunders mention in the book that KLM has 1000 employees dedicated for the

information of technology in the company, contributing daily to the improvement of IT

management. We all know how important technology is and how its innovations can help a

company to grow. After the terrorist attack from September 11, 2001, KLM saw the whole
Title of Case: Case Study Point Paper – KLM Airlines
Date: October 12th, 2020
Your Name: Alexandre Humberto Batista de Oliveira

incident as a flaw that could be predicted or an action that could be decreased, targeting for a

possible update in its processes and improvement of its technologies, which led the company to

search for a higher security level with new systems and equipment – such as radars.

When the new CIO is appointed for the new position and by having a background in the

operations area, IT becomes a new priority, bringing all the communication between every area

of the company together.

The reflection of all this changes resulted in great benefits for KLM, reducing their IT costs for

every operation, better alignment of investments to business goals and increased the capacity

of IT innovation and its values. (Pearlson & Saunders, 2012, p. 189)

IV. Conclusions

This is another excellent case that proves how a move or new implementation can drastically

change the way a company works, in a good or bad way. For KLM, the improvement of IT and

the appointment of a new CIO showed how important the areas should be connected, aiming

always for the main goal of the company. With the main goal to upgrade their security after an

incident, KLM has now become an example for other companies.

V. Recommendations

Even though KLM changed for a better scenario, it was thanks to a bad incident – the 9/11

terrorist attack – that the company felt obligated to look for other directions. I believe that

companies should take this case as an example and not only adapt or transform after

something happens, but always look into new technologies and innovations. KLM aimed for a

better security, and the change resulted in many other positive returns at the end.

References
Title of Case: Case Study Point Paper – KLM Airlines
Date: October 12th, 2020
Your Name: Alexandre Humberto Batista de Oliveira

 Pearlson, K., & Saunders, C. (2012). Managing and using information systems a

strategic approach, 4th edition (5th Ed.). Hoboken, NJ: John Wiley & Sons;

 KLM’s Company Profile

https://www.klm.com/travel/us_en/corporate/company_profile.htm

 prooV Team. (2018) Enterprise Insights: How KLM Stays Innovative.

https://proov.io/blog/enterprise-insights-klm-stays-innovative/