American Express Interactive

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American Express Interactive
Marcus Eaton Carole Walls
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Introduction
AXI Travel was motivated by economics,
competitive dynamics, and the potential for
follow on opportunities.
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Economics
During the early 1990, the major airlines cut
commissions for 10 to 8 and put a 25 cap on
each segment
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Competitive Dynamic
We wont be trapped in a dead technology
AXI wished to establish a leadership position in
defining new standards for the industry
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Partnership with Microsoft
Why partnership with Microsoft?
Good business strategy ?
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Key Issues and Recommendations
Kenneth Chenault, President and Chief Operating
Officer
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Key Insights
Set1 Identify high priority business
initiatives. Set2 Select the implementation
approach that is most appropriate for each
initiative and modify it based on the business
and organizational context New
Venture Development Venture
Integration, or Internal business
Development. If internal Business
Development, should you pursue a process
reengineering a new venture incubation approach?
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Step3 Build the capabilities required for the
new e-business initiatives you are pursuing
Key Insights
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Questions
How important was AXI travel to American
Express? How has the business model for AXI
Travel and the follow-on AXI interactive online
service offering evolved over time? Evaluated
the actions taken to implement AXI Travel.
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Questions
How successful was the company in building,
launching and then integration AXI travel with
the companys traditional business? What
challenges did the AXI Travel Team face? What
challenges did the CSI team face?
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WORLD MAP
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Appendix A

Enter new lines of business and/ or add new
business models
Add functionality, features or capabilities to
improve current product/service
offerings

Enhance
Expand
Add new product/service offering or enter new
geographic markets
Exit a business or market, or drop a
product/service offering
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1995 The Idea
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1997 AXI Travel
Enhance
Marketplace ASP Business Model
AXI Travel
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1998 Expense Management Launched
Marketplace ASP Business Model
AXI Travel Expense Management
Expand
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May 1999 AXI Purchasing Solutions Launched
Marketplace ASP Business Model
AXI Travel Expense Management Purchasing Solutions
Expand
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Fall 1999 American Express _at_ Work Launched
Extend
Portal Business Model
AmEx _at_Work
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August 2000 Market Mile Launched
Extend
Marketplace ASP Business Model Portal Business Model Portal Commerce ASP Business Model
AXI Travel Expense Management Purchasing Solutions AmEx _at_Work MarkelMile
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The Full Story
Extend
Enhance
Expand
Exit
American Express Interactive Business Model
Marketplace ASP Business Model Portal Business Model Portal Commerce ASP Business Model
AXI Travel Expense Management Purchasing Solutions AmEx _at_Work MarkelMile
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Exhibit 4 The Internal Business Development
ProcessInternal Business Development