Thursday, October 25, 2012

Maintained Industry Leadership with Knowledge and Wisdom

An important example used by Bessen (1993, pp. 150 160) to logically and completely present and aid the argument that

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the development and potent management of buyer details is a most crucial step in the modern industrial

environment for companies aspiring to market leadership. A case in issue involves the computerized reservations management systems created and implemented by major airline organizations (Bessen, 1993, pp. 100, 153).

The largest with the airline computerized reservations systems is Semi Automated Company Search Environment (SABRE), which is a subsidiary operation of American Airlines (The computer, 1990, p. 46). SABRE was conceived as "an internal link in between the airline's offices and ticket counters to aid track reservations" (The computer, 1990, p. 46). At that time, "the volume of reservations began to outrun . . . capability to handle them with index cards and blackboards"

The SABRE procedure processed "data related to 85,000 phone calls 40,000 confirmed reservations, and 20,000 ticket sales" in its very first year (Hooper, 1990, p. 120). SABRE soon became "much more than an inventory manage system. Its technology provided the base for creating flight plans . . ., tracking spare parts, scheduling crews, and developing a quantity of decision assist systems for management" (Hooper, 1990, p. 122). American Airlines added travel agencies, hotels, rail lines, and rental car corporations on the SABRE program (Hooper, 1990, pp. 118 125). Today, "SABRE is neither a proprietary competitive weapon for American Airlines nor a general distribution program to your airline industry. It is an electronic travel supermarket, a computerized middleman linking suppliers of travel and related services . . . to retailers like travel agents and directly to customers like corporate travel departments" (Hooper, 1990, p. 122).

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