Case american airlines and the sabre system

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Case american airlines and the sabre system

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

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