E-Business at Delta Air Lines: Extracting Value from a Multi-Faceted Approach
Name
E-Business at Delta Air Lines 4355-02 .pdf
Size
218 KB
Format
Adobe PDF
Checksum (MD5)
1f4a680842efcf46fefb8661f18186c0
Author(s)
Ross, Jeanne
Date Issued
August 12, 2002
Series/Report no.
MIT Sloan School of Management Working Paper;4355-01
Center for Information Systems Research;317
Abstract
Delta Air Lines entered e-business with much aplomb when it agreed to provide
Priceline.com with its excess inventory (seats on planes) in exchange for a 10% equity position.
When Priceline stock soared, Delta sold part of its holding for $750 million. Delta management
recognized that e-business offered many different business opportunities and has identified ways
to lower costs (e.g. selling tickets on line), increase revenues (e.g. selling excess inventory
through Priceline), and experiment with new business concepts (developing MYOBTravel.com
for small and medium-sized businesses). This case stud y describes Delta?s e-business initiatives,
noting the organizational structure used to aggressively pursue new opportunities. Of particular
note is the role of the IT transformation that positioned Delta for the opportunities e-business
created. Seeking to avert a Y2K crisis, Delta invested $1 billion in its IT infrastructure and
developed a publish-and-subscribe environment to support a cross-functional customerorientation.
Subjects
IT-business relations hips
IT architecture
IT infrastructure
e-business
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