1. American Airlines AAdvantage®:
Insights from the Siebel Loyalty Journey
Sundar Swaminathan, Oracle
Lisa Welch, American Airlines
Rob Morris, American Airlines
Tom Woodson, Cognizant
September 29, 2014
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3. Program Agenda 1
Industry Perspective and Oracle Solution Overview AAdvantage: Business Viewpoint The Siebel Loyalty Journey: Project Overview The Siebel Loyalty Journey: Drivers for Success Q&A 2 3 4 5

4. The Airline Industry Is In The Midst of a Transformation
Industry consolidation and global expansion
Move to new aircraft (A380, B787, 737MAX)
Unbundling of the travel product
New distribution models
Mobility everywhere
Focus on customer experience
Jenny Odell , 104 Airplanes

5. Loyalty Programs Are Transforming As Well
April 17, 2017
Loyalty Programs Are Transforming As Well
Cost Centers -> Profit Centers
Miles -> Points
Co-branded credit cards
Higher Prices  Higher Accruals
Variable Redemptions
No blackout dates or space limits
Replace pix

6. Customer Experience and Loyalty
April 17, 2017
Customer Experience and Loyalty
LEARN
ENGAGE
RETAIN
Loyalty Programs Offer A Framework to Drive The Customer Experience
Replace Pix

7. Powering Next Generation CX with Siebel Loyalty
Enabling personalized experiences through the travel lifecycle
Siebel Loyalty provides key insights on AAdvantage members: status, preferences, loyalty transactions
Marketing Cloud and Siebel Loyalty enable targeted campaigns and improved marketing ROI
Sales Cloud leverages customer/corporate analytics to drive corporate and alliance sales
Social Cloud enables monitoring of customer sentiment and increased engagement across the travel lifecycle
Service Cloud and Siebel Loyalty enable personalized customer service
Big
Data
CX Hub
PSS Data
Customer View
Name, Address, Preferences
Loyalty Transactions
Loyalty Insights

8. The AAdvantage Story The industry’s first loyalty program
Needed to upgrade aging loyalty platform
Multi-year cross-enterprise initiative – successfully delivered
Largest implementation of Siebel Loyalty

9. AAdvantage® Business Viewpoint Lisa Welch
April 17, 2017
AAdvantage® Business Viewpoint Lisa Welch

10. The New American Airlines
April 17, 2017
The New American Airlines
Merger between American Airlines and US Airways
World’s largest airline by ASMs and RPMs*
$40BB annual revenue
2Q14 profit of $1.5B, a record for any Quarter in the company’s history
Per Day
6,700 flights
to 330 destinations
in 54 countries
carrying 530,794 passengers
*available seat miles and revenue passenger miles

11. AAdvantage is a Key Asset
Founded in 1981
First airline frequent flyer program
Focused on earn, burn and Elite recognition
2014 (and 2013) Program of the Year & Best Elite Program
Over 70 million members
7,000 daily enrollments
250 users handling 6,000 daily calls
Hundreds of air and non-air partners
About 200 billion miles earned and redeemed each year

12. Reciprocal Member Benefits Single Operating Certificate
The Path We’re Traveling
Merger
Close
Reciprocal Member Benefits
US Joins oneworld
Combined FFP
Single
PSS
OpenWorld
Ventana Launch
Joint Codeshare
Single Operating Certificate

13. Earn and redeem miles on either airline

14. Enjoy select elite benefits on both carriers

15. Relax in nearly 40 Admirals Clubs and 18 US Airways Clubs

16. Technology is the Enabler
April 17, 2017
Technology is the Enabler
Siebel Loyalty provides:
Intuitive user interface
Improved ability to innovate
Greater agility
Allowing AAdvantage to:
Enhance user experience
Integrate with Dividend Miles
Improve speed to market
ABC123

17. Ventana Program View Robert Morris

18. Technical Drivers 3 tier Real time Consolidate Labor Force
April 17, 2017
Technical Drivers
3 tier
Move from mainframe to 3 tier architecture
Real time
Reduce dependency on batch processes
Consolidate
Reduce application clutter for call center
Labor Force
Improved supply of skilled IT labor
Disaster Recovery
Improve solution
MDM
Implement Customer Master
Our legacy system AATMS was solid but the world was moving on, we needed a robust platform that had a web front end, data schemas, pre made business logic components that would enable faster development.
World is faster and demand for more real time processing is there. Certain changes to real time from batch would improve customer service and potentially revenue.
Mainframe system was also coupled with a decent visual basic interface for the call center but there a lot of missing functionality that caused reps to rely on non integrated home grown apps, other sources of information such that Alt Tabbing was a key skill for them
Our core group of AATMS resources were highly skilled but by 2011 there were only 6 of them. If we wanted to transformational changes or support parallel change at a certain volume, we were bottlenecked. Moving to Commercially Available SW vs our custom app allowed us to get more skilled resources from the marketplace.
We wanted to improve our recovery time/recovery point and with our mainframe set up we were quite limited.
We have many systems that need customer profile information (name, address, ). With Ventana we could also move data as source of record from the loyalty program to our customer hub.

19. The Loyalty Ecosystem Replace AATMS/ACS Apps with Siebel
Legacy System
Developed from ‘90-94
With 70MM accounts and hundreds of partners
22 real time interfaces
249 DB2 tables and 1,000+ unique batch processes
Typical Day:
MMs aa.com/ mobile lookups
150k+ flight postings
23k awards claimed
7k enrollments
Others
Replace AATMS/ACS Apps with Siebel
Fully integrate into broader environment
Build platform to streamline future initiatives around the program, social and mobile concepts
1) Overall go through numbers
Note: Diagram illustrative, not a complete list of components

20. Guiding Principles Minimally invasive Agile Min Cutover Risk
April 17, 2017
Rapid take down of AATMS
Platform transformation first
Minimally invasive
Abstract change where possible
Agile
Co-creation of system with BU and SI
Min Cutover Risk
Success meant customers were not aware
Focused Development Approach
Use feature out of the box
If flows different but result the same, change business process
Else customize
No Daylight Between Us
Strong team dynamics as important as technical progress
Rip n’ Replace strategy – get the loyalty stuff our members depend on now right first, transform the program once on the new platform.
Don’t increase scope, abstract change, just because something could be made better don’t put it in scope. For our service clients we focused on as best as we could keeping the WSDLs intact, for our batch partners we kept them on same file formats where we could. Corralary – if it ain’t broke, don’t fix it.
Agile is a must, the locus of system knowledge was not just on IT and user adoption by call center was a key risk for us. Through iterative revelation of the developed product we had best chance of hitting the mark. Also, with Agile, we needed to hold our launch date sacred.
From the beginning, we had heard of other implementations taking long outages, that was not something we could afford with AAdvantage and so we began with end in mind and from RFP we were soliciting thinking on cleanest way to cutover.
Just because something worked a certain way in AATMS, didn’t mean we were going to make Siebel work like AATMS. Also too much customization carries more risk during upgrades and can reduce time to market
How we worked as a team was also a delivery item. Team dynamics and how well we clicked was an output. we knew we had to be a strong team throughout the long development cycle, through go live and into the months of stabilization afterwards. If we did it right, we would have a stronger relationship with the BU, not a weaker one.

21. Ventana: Replacing 23 years of Loyalty System Development in 23 Months
Functionality
7 environments, 97 servers
27 Iterations, 1103 stories
130 batch integrations comprised of 750 files
Migrated 2.2B data records
Cutover well executed per detailed plan
Basically AATMS was started in 1990 and been built up over 23 years as the program evolved. We wound up replacing in 23 months or in other words having Siebel allowing us to squash one year of dev into one month for this system replacement.
When we were done it was big and the cutover went well. There were challenges: incomplete work, defects expected and unexpected, slips moving into controlled operations but the team was strong and worked well to triage and solution.

22. Division of Labor AAdvantage Business Unit Loyalty IT & Infrastructure
Key vendors
Cognizant
AAdvantage Product Owners – responsibility for requirements and managing enterprise business changes/training
Loyalty IT & Infrastructure – overall architecture, infrastructure, management of vendors, schedule, financial and risks. Coordination with over 40 IT teams
Key vendors – software, hardware, consulting (eg. Oracle ACS, HP legacy AATMS team)
Cognizant – lead system integrator tasked with Siebel architecture, configuration, batch development and QA

23. Implementation View
Tom Woodson

24. Agile Delivery Hybrid Training Communicate Planning Adapt Numbers
April 17, 2017
Hybrid
Support Onshore / Offshore Model
Training
Ensure all teams following same methods
Communicate
Promote open & frequent information sharing
Planning
Keep all the teams in sync and remove roadblocks
Adapt
Apply learnings from retrospectives
Numbers 3 27
120
Hybrid
AA Product Owners at onsite
Proxy Product Owners from Cognizant owned coordination with offshore teams
Development & QA at offshore
Hybrid agile tailored for AA in an onsite offshore model
We had 5 separate iteration development teams at the height to support the software factory model
Training
Everyone participated in training customized for this effort
We wanted everyone on the same page
Communication
We had a very open communication model – This was probably the hardest change for our offshore development teams
The open communication model extended across the program from executive sponsors to extended partners to each team member
At the kickoff, the business executive sponsor shared the Dr Seuss Sneetches story and challenged us all to be one team. It’s one of the things we did well
Planning
Keeping all the teams and interdependencies required us to constantly plan ahead as well as review upcoming activities
Adapt
We conducted regular post iteration and post release retrospectives
Identified 3-5 improvements we could focus on and apply improvements
The Numbers
3 week iterations
24 number of iterations over 6 releases
120 offshore resources 24

25. Drivers for Success Engagement Communication People Process Tools
April 17, 2017
Engagement
Business IT
Systems Integrator
Stakeholders
Communication
Open
Frequent
Detailed
Formal & Informal
People
Roles
Skills
Commitment
Process
Management
Execution
Agile
Tools
Automation
Accelerators
Agile
Engagement
Major driver of success was that people really were engaged from leadership throughout the program ranks, the Sneetch factor
Cognizant BA’s met with senior AA leadership
Business was actively engaged including dedicated product owners and part time SME’s
We really worked as one team with members from different groups throughout AA and including partners
Communication
To maintain engagement good communication is required
All communications were open and detailed
Examples of our communication activities included:
Regular project related meetings (Planning, Status, User Story Reviews, Demos, Retrospectives, etc.)
Regular stakeholder and extended stakeholder updates
Onshore / offshore daily calls
Regular visits to Cognizant offshore teams by Business and IT
Exchange programs where people from Cognizant came and worked onsite for weeks at a time and AA people spent extended time at Cognizant facilities in India
Informal communications included:
Outside activities (one of the big ones we got a lot of mileage out of was a dance video we created)
Happy Hours and potlucks
Holiday events and celebrations
Baby showers etc.
People
Getting the right people in the right roles with the right skill sets and time commitment required constant attention
The program needs changed over the lifecycle and different roles and skills were required. We had to plan the timing and impact
Staff the team and empower people
Be willing to change the organization to meet program objectives
Process
We spent the first 90 days of the project doing planning, fine tuning our processes and executing them in two actual development iterations. This was worth the time and effort
We monitored the execution of our processes to ensure they were optimum for meeting our objectives We
Tools
QA automation 20-25%
Development accelerators and prebuilt routines
Agile tools including:
Release planning
Iteration planning
User story management
User story scoring
Etc 25

26. Key Challenges Balance the workload Technical Complexity Transparency
April 17, 2017
Key Challenges
Coordination
Keeping all the moving parts in sync
Balance the workload
Keeping the “engine” running
Transparency
Agile model was new for many developers
Technical Complexity
Interdependency with other systems
Challenges
Coordination
Making sure each team provided what the other team needed on a timely basis
Breaking down user stories to manageable sizes while still providing the capabilities other teams needed
We had a desire to address the most complicated user stories first however so many of them required base capabilities to be established first
Timing of calls and interactions between the onsite and offshore teams so that we had participation by all of the right people required a lot of effort
Balance the workload
After ramping up we needed to keep a steady pace of user story elaboration and finalization for allocating to the appropriate development iteration
At first the teams tried to treat each iteration as a short development project were the norm was for most of the work effort to be at the end of the iteration, this could have led to team burn out and exhaustion as we immediately went into the next iteration
Transparency
Agile requires transparency and our development teams were not accustomed to the level of transparency speaking directly with business users
They were not used to the client seeing unfinished product “our approach was to develop and demonstrate then do formal QA”
After the initial challenge and the teams got used to the approach we had one of the most engaged development team and the lowest turnover rate
Technical Complexity
Data migration was huge the mapping and migrating of data was not overly complex but managing the volumes required complex monitoring processes be created
Loyalty touched so many different areas in so many different ways we often broke previous developed functionality when we added a connecting component. Automated and detailed regression testing helped identify this
Performance tuning due to sequencing of jobs and processes required more technical approaches and time than originally estimated 26

27. Lessons Learned Ops Transition User Transition Continuous QA
Anticipate
Allow ample time
User Transition
Adoption curve
Transparency & prioritization
Continuous QA
Automation
Move left
Openness
Stabilization
Process & approach
Timing
Batch Automation
Consider totality
Identify outliers
Reverse engineer
Story Order
Build foundation
Identify dependencies
Prioritize
Inspect and Adapt
Processes
Tracking
Staffing
Transition to Ops
Plan for operation support capabilities
User Transition
AHT transition
Defect and issue transparency and business prioritization
Visible to everyone
Show warts and celebrate successes
Continuous QA
Automate regression testing
Move testing earlier into the requirements and development stages, QA participate in user story elaboration
Stabilization
Think about process before transitioning to the stabilization phase
Ensure business participation
Stabilization takes longer than anticipated
Need to manage expectations across the entire organization
Understand good-enough vs perfect
Batch Automation
View, plan, and develop batch automation in totality. Understand how the individual parts fit together before developing individual scripts
Identify those outlier batch jobs that have an impact
Anticipate that some of the functional requirements will be embedded into legacy batch jobs that no one is fully aware of all the details
Story Order
Start with foundational to validate processes
Build core capabilities
Identify and plan for story independencies
Prioritize user stories and plan to address complex user stories early
Inspect and Adapt
Whatever we did today is better than yesterday
Apply learnings from the retrospectives
Talk about demo’s – got offshore teams involved
Staffing governance and management
Oracle expert services reviews early to improve development practices

29. Quarter In Review