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Case   american airlines and the sabre system

Case american airlines and the sabre system






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    Case   american airlines and the sabre system Case american airlines and the sabre system Presentation Transcript

    • ITS 510 Information Management Case Study: American Airlines and the SABRE System
    • Introduction
      • This case looks at the implementation of all the six waves of innovation
      • Wave 1 – Reducing costs
      • Wave 2 – Leveraging investments
      • Wave 3 – Enhancing products and services
      • Wave 4 – Enhancing executive decision making
      • Wave 5 – Reaching the consumer
      • Wave 6 – Leveraging partnerships through supply chain management or other forms of collaboration
    • Introduction (continued)
      • AA and IBM jointly announced their plans to develop Semi-Automatic Business Research Environment (SABRE)
      • The concept led to the 1 st real-time business application
      • It allowed to replace the hand-written system of the 1950s with the Web-based inter-airline reservation system in the 2000s
    • Waves 1 and 2
      • 1960 in Briarcliff Manor, NY
      • Built to
        • reduce the costs of making airline seat reservations
        • leverage the reservation making assets of the airline
      • System saved 30% on its investments
    • Wave 3
      • 1976
      • System expanded to be used by travel agents
      • Means of reservations through online terminals
      • Offering enhanced by adding functions of importance to travel agents (e.g. finding low fares)
      • EasySabre® was introduced in 1985 to allow customers to tap into the reservation systems
    • Wave 4
      • 1985
      • Reservation service expanded to include hotels and rental cars
      • Transform from airline company to travel company
      • In 1988, the company offered services for yield management and crew scheduling and a host of decision support tools
    • Wave 5
      • American introduced its frequent flyer program, AAdvantage
      • Program allied with credit card and long-distance telephone companies
      • Wave 5 connections broadened via the Web
      • Customers can plan trips, get real-time flight information, etc.
      • Formed a joint venture with ABACUS to target the Asian market
    • Wave 6
      • American works with Citibank allowing credit card users and frequent travelers various offers (e.g. earning miles)
      • American’s site offered NetSAAver service to send email stating empty seats to customers signing up
      • Hence there are less empty seats
      • In addition, Sabre Holdings made multiple collaborations with others, e.g. acquiring major portions of shares of Travelocity.com and ShowTickets.com
    • Conclusion
      • This case shows that as the benefit of IT increases, the executive management’s guidance also increases