Development of It Strategy
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City of London College
Assignment
Module# Development of IT Strategy
Tutor# Ms. Nadine Gibson
Student ID# 000102567
Course# Bsc(Hons) Business Management Advanced Entry
Submission Date# 27/07/12
The American Airlines SABRE Reservation System
The aim of this essay is to provide an analysis of the SABRE reservation system produced by American Airlines, demonstrating how Business Information Systems (BIS) can be used to gain a strategic advantage. This will be achieved by describing the overall approach adopted by American Airlines and how SABRE provided them with a competitive advantage. The factors that led American Airlines losing their competitive advantage will also be discussed.
One of the key factors in providing customers with an optimal service is ensuring convenience, flow of information, saving time, and the efficient use of available customer service resources. On the other hand, in times of strict competition it is highly necessary for businesses to be able to provide such services at the lowest cost and in the most convenient manner possible (Linoff and Barry, 2011).
In order to help businesses with customer management, there are now customer management software programs which enable individuals and businesses to organise all their information and retain useful information quickly and efficiently. Such programs help perform functions such as revenue management, making optimal pricing decisions, managing customer loyalty programs, customer profiling, and bookings and reservations, amongst many other options (Linoff and Barry, 2011).
One such system, introduced by American Airlines in the 1960’s, is the SABRE reservation system. SABRE, which is an acronym for ‘Semi-Automated Business Research Environment,’ was the first information system of its kind and was the result of a joint venture between IBM and American Airlines. Initially, it was used as an electronic reservations system
City of London College
Assignment
Module# Development of IT Strategy
Tutor# Ms. Nadine Gibson
Student ID# 000102567
Course# Bsc(Hons) Business Management Advanced Entry
Submission Date# 27/07/12
The American Airlines SABRE Reservation System
The aim of this essay is to provide an analysis of the SABRE reservation system produced by American Airlines, demonstrating how Business Information Systems (BIS) can be used to gain a strategic advantage. This will be achieved by describing the overall approach adopted by American Airlines and how SABRE provided them with a competitive advantage. The factors that led American Airlines losing their competitive advantage will also be discussed.
One of the key factors in providing customers with an optimal service is ensuring convenience, flow of information, saving time, and the efficient use of available customer service resources. On the other hand, in times of strict competition it is highly necessary for businesses to be able to provide such services at the lowest cost and in the most convenient manner possible (Linoff and Barry, 2011).
In order to help businesses with customer management, there are now customer management software programs which enable individuals and businesses to organise all their information and retain useful information quickly and efficiently. Such programs help perform functions such as revenue management, making optimal pricing decisions, managing customer loyalty programs, customer profiling, and bookings and reservations, amongst many other options (Linoff and Barry, 2011).
One such system, introduced by American Airlines in the 1960’s, is the SABRE reservation system. SABRE, which is an acronym for ‘Semi-Automated Business Research Environment,’ was the first information system of its kind and was the result of a joint venture between IBM and American Airlines. Initially, it was used as an electronic reservations system
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