Real Time Business Intelligence at Continental Airlines

OBJECTIVES

This case describes the huge potential that exists through the use of IT solutions to grow business. Any such undertaking is dependent on a clear vision, management support and leadership and thorough market research which include analyzing the competitive environment and most importantly, assessing customers’ needs. Introduction of any product must be driven by consumers’ needs and the expected return on investment. Overall, the approach calls for forward and bold thinking given the dynamics of the competitive environment.

OVERVIEW

Teletron is a service firm with strong expertise in telecommunications, which specializes in helping companies to reduce their telecommunications expenditures by identifying inefficiencies and errors in phone bills. The company was started by Tim Lybrook a former consultant. While working as a consultant Tim realized that there were inaccuracies in the telephone bills of many companies and overcharge for telecom services as high as 30%. At the time there was an opportunity for service firms with expertise in telecom billing to review complicated invoices from several providers for these affected companies.

Tim pounced on the opportunity and started Teletron in 1992. The company did well and between 1992 – 1998 served many well-known clients and achieved compounded revenue growth of over 200 percent during the period. However, the company faced strong competition and experienced high customer churn. Tim realized that in order to continue growing the company, a radical change in the business model was required.

He proffered a new vision for the company- where Teletron would act as an intermediary between providers of telecommunication services and its users. A part of his vision was to grow revenue from $7.3 million to $100 million by 2006. He made three ambitious proposals as part of the strategic plan to attain this new goal – that senior management be replace, switch to offering software solution by...