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Boom, Bust, Build-AOL
AOL is channeling its creativity and entrepreneurial spirit into ongoing business success


Project Management Highlights:

• Created governance structure to prioritize projects
• Improved forecasting of future project costs
• Simplified external reporting of project information
Project Statistics:
• 5,000 employees from a variety of business groups use Primavera
• 1,000 - 1,500 projects are tracked simultaneously

In the late 1990s, America Online, Inc. was the darling of American business. With the Internet soaring and the stock market booming, AOL led the charge in bringing online communications and services to businesses and consumers alike. In doing so, the company also created new advertising and subscription-based business models for Internet service providers and other organizations seeking to profit from what seemed like an e-business tsunami. Early in 2000, AOL shocked Wall Street by announcing it would acquire media giant Time Warner for $182 billion, causing analysts to proclaim that the deal validated the Internet’s role in the “new world economy.”
    Then reality struck. Irrational exuberance hit a wall, and the boom became bust.
    Along with the rest of the American economy, AOL struggled financially. Ad revenues dropped and membership subscriptions lagged. “[We were] a business that had been a beacon of innovation,” Jonathan F. Miller, chairman and CEO of AOL, said recently. “But then [AOL] failed to invest in and differentiate its product and keep its eye on member satisfaction. [AOL was] a brand that literally stood for the Internet – but that had lost much of its cache and likeability.”
    Unlike many Internet companies that simply went bankrupt in the aftermath, AOL soldiered on. ......

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