SOCRATE: An Implementation Debacle

Abstract

SOCRATE is a modified computerized reservation system based on SABRE, the original version built and used successfully by American Airlines. SNCF bought it for 1.3 billion Francs in 1989, with an expected yearly return on investment of 600 million Francs. The main purpose of introducing SOCRATE was to accommodate the expected huge increase in French railway traffic: 140 million reservations were expected in 1995 compared with 40 million one decade before. But as soon as it was introduced, SOCRATE generated chaos in railway stations and it soon became a national issue. The conclusion of an investigation was that the system was not properly working and bad to be modified as soon as possible. How can it happen that on the one hand SABRE provided American Airlines with a competitive strategic advantage, but on the other hand its customized version, SOCRATE, led to a decrease in traffic of 5.9% for the first semester of 1993 for SNCF? Why can SOCRATE be regarded as one of the best examples of what should be avoided in the process of implementing a new system? Which main factors caused the poor image of SOCRATE in SNCF? Did the image of SNCF in French society change due to the introduction of SOCRATE? In the paper, the authors attempt to give answers to these questions.