American Express Interactive

Marcus Eaton

Carole Walls

Introduction

AXI Travel was motivated by economics, competitive dynamics, and the potential for follow on opportunities.

Economics

During the early 1990, the major airlines cut commissions for 10% to 8 % and put a $25 cap on each segment

Competitive Dynamic

AXI wished to establish a leadership position in defining new standards for the industry

“ We won’t be trapped in a dead technology”

Partnership with Microsoft

Why partnership with Microsoft?

Good business strategy ?

Key Issues and Recommendations

Kenneth Chenault, President and Chief Operating Officer

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?

Step3: Build the capabilities required for the new e-business initiatives you are pursuing

Key Insights

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.

Questions

How successful was the company in building, launching and then integration AXI travel with the company’s traditional business?

What challenges did the AXI Travel Team face:?

What challenges did the CSI team face?

WORLD MAP

Enter new lines of business and/or add new business models

Add functionality, features or capabilities to improve current product/service offerings

Add new product/service offering or enter new geographic markets

Exit a business or market, or drop a product/service offering

Expand

Enhance

Appendix A

1995: The Idea

1997: AXI Travel

Enhance Marketplace & ASPBusiness Model

AXI Travel

1998: Expense Management Launched

ExpandMarketplace & ASP

Business Model

AXI TravelExpense

Management

May 1999: AXI Purchasing Solutions

Launched

ExpandMarketplace & ASP

Business Model

AXI TravelExpense

ManagementPurchasing Solutions

Fall 1999: American Express @ Work

Launched

Extend

PortalBusiness Model

AmEx @Work

August 2000: Market Mile Launched

Extend

Marketplace & ASPBusiness Model

PortalBusiness Model

Portal Commerce & ASP Business Model

AXI TravelExpense

ManagementPurchasing Solutions

AmEx @Work MarkelMile

The Full Story

Marketplace & ASPBusiness Model

PortalBusiness Model

Portal Commerce & ASP Business Model

AXI TravelExpense

ManagementPurchasing Solutions

AmEx @Work MarkelMile

American Express Interactive Business Model

Extend

EnhanceExpandE

xit

Exhibit 4: The Internal Business Development Process

Internal Business Development