A Talk with Dietmar Focke

“Translating concrete business goals into tailored IT solutions”

Lufthansa Industry Solutions (LHIND) has a workforce of over 3,000 with a reputation that has long extended beyond the confines of the Lufthansa Group. In this interview, LHIND CEO Dietmar Focke explains why bridging business and IT is so critical to success and what opportunities are presented by future technologies such as agentic AI and quantum computing.

Dietmar, before joining LHIND you spent many years in the shoes of the customer. If you were commissioning an IT project today, what expectations would you have of the service provider?

Besides solid IT knowledge, above all it would be an ability to understand my business case and translate it into effective IT solutions. Instead of jumping straight into the nitty-gritty of the technology, the first question should be: “What do you want to achieve on a business level?” The ability to connect business needs with IT solutions is the critical success factor. People with pure IT expertise are a dime a dozen. However, they often lack the ability to translate business processes into tailored, practical IT solutions.

That calls for an understanding not just of your customer’s world but also that of their customers. How far does this transfer need to extend?

Extremely far – right down to the end user. The biggest weakness of many IT projects is that they are designed too much from the client’s perspective. Yet functionality alone is not enough. If a digitalized process does not ultimately work for the person actually using it, it will fail. There is a principle that applies to all tools: They will only be perceived as good if they are straightforward, intuitive, and adaptive. Any IT service provider should be able to say: “I can implement it in such a way that your customer – whether internal or external – will recognize the true benefit and value the solution.”

In addition to the general issues, each sector also has its own challenges. How does LHIND respond to these?

 

By deliberately focusing on specific sectors – aviation, logistics, mobility, industry, retail, energy/environment, and health. We know our way around these sectors and can have an informed say. In addition, we are committed to long-term partnerships in the interest of cultivating trust and understanding.

Technological expertise is regarded as LHIND’s greatest asset. What sets the company apart in this area?

Our success is built on a stable technological foundation that has been developed over decades. We have created a well-organized technological landscape encompassing various providers, tools, systems, and strategic partnerships. Our team has got everything covered – from traditional fire protection systems right through to artificial intelligence (AI) and quantum computing. This extraordinary depth and breadth of expertise enables us to develop the optimum solution for each and every customer.

Any IT service provider should be able to say: “I can implement it in such a way that your customer – whether internal or external – will recognize the true benefit and value the solution.”

Dietmar Focke , LHIND CEO

On the subject of AI, how is LHIND positioning itself in this future technology?

Instead of viewing AI as an isolated technology, we see it as an integral part of comprehensive digital solutions that will provide our customers with genuine added value. That is why we develop hybrid approaches that combine AI with other digital modules. The strategic partnerships we enjoy with leading technology providers are another of our strengths. While these provide the technological basis, we also bring our industry knowledge to bear in order to develop customer-specific applications. Currently, our highest growth rates are in AI, automation, and platform integration. This validates our strategy of orchestrating technologies intelligently.

Can you give us a specific example of some AI solutions that have been implemented successfully?

Certainly, one example is intelligent passenger flow control, which is already being used on cruise ships and at airports. The centerpiece of our solution is a digital twin: a digital representation of the entire infrastructure that combines historical data with real-time analysis. To put it in concrete terms, the onboard restaurant at the bow might fill up quickly, while the one at the stern is still fairly quiet. Our AI detects this early on and automatically initiates countermeasures to smoothly redirect passengers. The result is greater customer satisfaction thanks to shorter waiting times and higher overall sales at the onboard restaurants.

Agentic AI is the next evolutionary stage for artificial intelligence. What changes will this bring within companies?

Agentic AI makes decisions independently and is constantly learning. In contrast to current AI applications, these systems therefore develop autonomously. This represents a paradigm shift with far-reaching consequences, as this continuous optimization takes place in the background. In this regard, agentic AI operates in a similar way to traditional improvement methods. The difference is that process optimization used to be carried out manually but is now fully automated. The key advantages are the speed and consistency of learning and optimization.

Quantum computing is another area with huge potential. Do you think it is now more than just a distant possibility?

The theoretical knowledge undergirding this technology is increasingly being put into practice. In pharmaceutical research, quantum computers could, for example, be used to complete experiments that currently take years in just a few weeks. The situation is similar as regards the development of high-performance materials or more efficient batteries. In addition, I see particularly exciting applications for quantum computing in logistics and aviation – both of which are areas we are expanding while embracing new technologies. For instance, at airports you have the highly complex problem of assigning gates, which involves countless variables. Quantum computers would be able to optimize this process in real time. The same applies to flight route optimization.

As a member of QUTAC (Quantum Technology and Application Consortium), LHIND is one of the players right at the vanguard. As part of this alliance of leading German companies, we are endeavoring to move quantum computing from the laboratory into the real world.

Recently, the longstanding hype around sustainability seems to have quieted down a bit. Is this issue still a factor for customers?

Absolutely! However, not as mere hype or a buzzword, but rather as a genuine efficiency driver. And that’s because a lack of sustainability generates measurable costs. There are many business processes that could be organized more sustainably and, therefore, more cost-effectively. If we can explain and demonstrate sustainability from a business management perspective, it will stop being viewed as a supposed cost factor and will be seen instead as a competitive advantage.

The IT service sector is characterized by rapid change. With things moving at such a speed, how can LHIND develop ideas into new products?

At the start, there is usually a concrete customer need. Our initial response is to develop a tailored individual solution based on this. If we then start to receive an increasing number of similar inquiries and recognize a pattern, it may lead to the creation of a standardized product. What’s more, our Technology division continuously monitors and evaluates new developments, strategically integrating them into the organization. Our portfolio needs to stay dynamic.

For me, what matters is making sure good ideas can move freely up the chain and reach the customer.

Dietmar Focke
LHIND CEO

What is your medium-term vision for LHIND?

As the digital backbone of the Lufthansa Group, we aspire to play a major role in shaping its transformation. In this context, we share the Group’s internal experience and solutions with external customers and, conversely, leverage insights from external business to benefit the Lufthansa Group. As a company, we strive for dynamic, profitable growth. We have gone from having 1,200 employees just over a decade ago to over 3,000 today. With our clear industry focus and technological excellence, we continue to build on this success story both internally and externally.

Is this progress also happening internationally?

Definitely. With our nearshoring activities in Albania, as well as locations in Switzerland and the USA, we are building the international presence we need. Particularly when it comes to large industrial projects, having a global footprint is no longer optional but a clear customer requirement; offshoring has gone from being “nice to have” to a strategic necessity.

Dynamic growth and internationalization also pose challenges for an organization. What role does LHIND corporate culture play in this regard and what defines it?

Due to the nature of the business, we are spread far and wide. As a result, our culture is the “glue” that holds us together. That’s why we pay such careful attention to ensuring that our employees feel at home at LHIND and have opportunities for professional development. We have defined a set of four values to serve as the foundation: Empowered, Committed, Courageous, and Responsible. This constellation of values is extremely important because – particularly in IT consulting – employees are the crucial factor for success.

Every month, I join the new employees for lunch. Meeting so many interesting and authentic people is an inspiration. This diversity of backgrounds greatly enriches us as a company and improves the quality of our consulting.

Have you changed as a person or in terms of your leadership style?

Yes, of course. I learn things from my young team every day and definitely dress differently from how I did in previous roles. Having said that, I was never a fan of hierarchies anyway. For me, what matters is making sure good ideas can move freely up the chain and reach the customer.

How would you sum up LHIND in one sentence?

A highly competent, customer-oriented IT consulting firm that offers genuine added value – anchored in many years of experience and built on trust and partnership in action.