American Express Interactive

Background
1980 American Express established and monitor
for Banking
1882 Successful of money order business
1891 Travelers Cheques
1915 Travel Business
1958 Issued the first charge card
1980 Expand the financial services sector
1990 Focus on service model
1997 AXI Travel

Background
1850 Amex

2000 3 -
,

, American Express ( 3 )

TRS,


, Travelers Cheques,
. TRS
product Consumer Cards, Small Business and
Consumer Travel, Corporate Services, TRS International,
American Express Consulting Services

Background
-
,

corporate charge cards, corporate purchasing card

corporate travel service.

Corporate service, TRS

70%

business travel corporate card program
AXI Travel
1997 travel sales

$17.4


international market
business travel agencies


Travel Sales
trip planning, ,

TRS
corporate travel policy
TSR 1,700 retails travel office

Background
CSI corporate service,

internet technology. 1999, CSI

5 AXI Travel, AXI Express, AXI Purchasing Solutions,
AmericanExpress@Work, B2B Commerce Network e-procurement
electronic) Miss Sonia Sharpe,
portal (
CSI 5 products

Organization Chart

AXI Travel Benefits:

Improving the managing of T&E costs

Improves Travel Cost
Improves Convenience in Travel
Improves Travel Information

Q1. How important was AXI Travel to American

Express?

* Sustaining leadership in Travel Industry.

American Express Culture
New market leaders

Tend to get more of

market share

Lead to greater profit

American Express was experiencing reduction in

profits with existing business methodology.
* Corporate Travel was changing due to The
new intermediary channels by the internet
capabilities.
American Express needed to establish a
leadership position in The new channel,
E-commerce.

* American Express used a Service

Excellence Strategy for AXI Travel.

The traditional business model

The internets click-and-order business

model

American Expresss reasons in selecting AXI Travel:

1. Provide more Value to customers:
* To enforce travel policies.
* To monitor T&E spending.

* To provide detail T&E data

2.An Industry-wide shortage of Travel Counselors:

AXI Travel would help in filling the void of the human

travel counselors.
* help to reduce costs in having to training and
recruit.

3.Capitalize on future Growth in the travel industry:

Online travel volume for business is expected to grow

from $827 million to $8.9 Billion*.
AXI Travel

More the market

share
Leading to
improved profits
* According to Jupiter Communications,a New York-based market research firm.

AXI Travels success

American Express is to be the

leader in the Corporate Travel
Industry.

Q2. How has business model for AXI

Travel and the follow-on AXI Interactive
online service offerings evolved over time?

Business Model

2) BUSINESS
OFFERING

1) BUSINESS
INFRASTRUCTURE
PARTNER
NETWORK
CORE
CAPABILITY

VALUE
PROPOSITION

VALUE
CONFIGURATION

3) BUSINESS
CUSTOMER
CUSTOMER
RELATIONSHJIP
TARGET
CUSTOMER
DISTRIBUTION
CHANNEL

4)BUSINESS
FINANCE
COST
STRUCTURE

REVENUE
STREAMS

 )
1. Business Infrastructure (
Core Capabilities
Partner Network
Value Configuration

2. Business Offering ()
Value Proposition

3. Business Customer ()

Target Customer
Distribution Channel
Customer Relationship
4. Business Finance ()
Cost Structure
Revenue Streams

Q3. Evaluate the action taken to implement AXI

Travel. How successful was the company in
building, launching and then integrating AXI
Travel within the companys traditional business

3.1 Building
Focus on Software Development - internet
Expert Partnership Strategy Microsoft
Value Added to Product

3.2 Launching

Reduce Transaction fees

Reduce cost produce ticket
Reduce T&E cost
Increase volume of supplier

3.3 Integrating within traditional

business
Hybrid product allows customer use
phone or computer make business travel
arrangement

Q4. What Challenges did the AXI Travel

team face?

Changed and Leadership

Shortage of Travel Counselors
More Value to Customers
Growth of Travel Industry
Position itself for other e-commerce
endeavors

Q5. Evaluate CSIs role and actions to date as a

new business incubator within AMEX. What
roles,if any,should CSI play in the future?

Q6. The advice for American Express Senior

Management in Summer 2000
Partner Relationship Strategy
Customer Relation Management (CRM)
Package and Sell-Promotion

Q7. Has your firm (or the one you have

worked within in the past) attempted to
launch an Internet business? If so, what
business model did you choose, what
approach (or approaches) to implementation
did you use, and how successful have you
been?

 General Electronic Commerce Services Co., Ltd.

( GEC) Application Service Provider
2000
B2B e-commerce

Buyer Finance Program (BFP)

Bank

Online
Trade

(Hub)

(Dealer)

System Integration
1. Gateway Integration & Schedule

2.

Hardware & Network Requirement

3.

File Layout upload download

4.

Data Description

 Application

How successful have you been?

Online Trade
dealer

(
market share)

cost

SCG NETWORK



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dealer
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3 2007 8
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