Ford paves employees' road to 'Net

By Carolyn Duffy Marsan
Network World, 02/07/00

DETROIT - Ford wants its workers to get wired. That's why company and union leaders last week announced a groundbreaking program to provide all 300,000 Ford employees with the opportunity to buy a new PC and printer, and receive Internet access for home use at a nominal monthly fee.

Ford's Internet access program - the largest deal of its kind - is being hailed as a sign of how the 'Net is reshaping the way American companies do business. Experts expect other automotive and manufacturing companies to follow suit.

"It's going to be very difficult for the other car companies not to grant their employees the same kind of deal," says Rob Enderle, vice president of desktop and mobile technology at Giga Information Group in Santa Clara, Calif. "It's hard to believe that other largely unionized industries aren't going to get pressure to offer this kind of benefit."

In fact, Delta Airlines announced Friday it is offering a similar program to its 72,000 employees. Delta's goal is to improve communications with mobile workers, many of whom do not have corporate desktop systems. The home PCs under the Delta plan come equipped with a link into DeltaNet, the company's intranet.

Deals of this magnitude are made possible by the plummeting costs of computer hardware, software and Internet access, says Steven Clemons, senior vice president of the New America Foundation, a Washington, D.C., think tank that tracks Internet access issues.

"Ford and the [United Auto Workers] are punching a hole in the connectivity problem for the people they work with," Clemons says. "I see all of the trends moving very quickly, to the point where everyone will have Internet access at work, at home and at the community center."

Ford's three-year Internet access program is the latest in a series of e-business announcements from America's No. 2 car maker. Ford recently announced deals with Oracle, Microsoft CarPoint, TeleTech, Yahoo, Bolt.com, iVillage.com and UPS Logistics Group.

"Ford is recasting itself as not an old smokestack, steel and rubber-tire type of company, but as a more modern, IT-friendly company," Clemons says. "It's very clear that it's a top-down strategy."

Ford officials say they are subsidizing Internet access for their employees to ensure that the workforce is technically savvy and to provide a new channel of interactive communication for employees.

"The automotive industry is at the bleeding edge of technology," Ford CEO Jac Nasser says. "In product development, customer satisfaction, customer service and in the manufacturing plant - everything is touched by technology. We want our employees to experience what's going on in technology."

The Ford program is being coordinated by PeoplePC, a San Francisco start-up that offers PCs, printers and unlimited Internet access for $25 per month to members who agree to receive e-mail pitches from companies that help underwrite the costs of the service.

In the U.S., Ford employees will have a $5 monthly copayment for the subscription service. Ford employees have the option of upgrading the PC, printer and Internet access at an additional cost.

"Ford employees should be dancing in the streets," Enderle says. "These are extremely reliable systems that won't break. It's more technology than the average user could ever have wished for."

PeoplePC officials expect to begin shipping systems in April, with service availability around the world within 12 months. The program is set to last three years, after which the employees own the systems.

Ford officials declined to comment on the cost of the program, but estimates ranged as high as $200 million. Enderle argues that Ford will actually save money by improving the computer literacy of its employees and by cutting down on other telecommuting expenditures, such as laptops.

"When Ford considers the productivity benefit they're going to get out of this program, they may end up being ahead moneywise even after the subsidy," Enderle says.

Delta also is coordinating its program through PeoplePC at a copayment of $12 per month. Delta has yet to pick a hardware supplier, but Internet access will be provided by AT&T.