Slide2: Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 5 Technology in Services


Learning Objectives: Learning Objectives Discuss the of technology in the service encounter. Describe the emergence of self-service. Place an example of service automation in its proper category. Describe different Internet business models. Understand the importance of scalability to e-commerce success. Discuss the managerial issues associated with the adoption of new technology.


Role of Technology in the Service Encounter: Role of Technology in the Service Encounter  


Evolution of Self-service: Evolution of Self-service


Self-service Technologies (SST) : Self-service Technologies (SST) Does customer adoption of self-service follow a predictable pattern? How do we measure self-service quality (e.g., ease of use, enjoyment, and/or control)? What is the optimal mix of SST and personal service for a service delivery system? How do we achieve continuous improvement when using SST? What are the limits of self-service given the loss of human interaction?


Classification of Service Automation: Fixed-sequence (F) - parking lot gate Variable-sequence (V) - ATM Playback (P) - answering machine Numerical controlled (N) - animation Intelligent (I) - autopilot Expert system (E) - medical diagnosis Totally automated system (T) - EFT Classification of Service Automation


Purpose of Web-site: Purpose of Web-site A retail channel (Amazon.com) Supplemental channel (Barnes & Nobel) Technical support (Dell Computer) Embellish existing service (HBS Press) Order processing (Delta Airline) Convey information (Kelly Blue Book) Organization membership (POMS.org) Games (Treeloot.com)


Technology Convergence Enabling E-Business: Technology Convergence Enabling E-Business Internet Global telephone system Communications standard TCP/IP (Transfer Control Protocol/Internet Protocol) Addressing system of URLs Personal computers and cable TV Customer databases Sound and graphics User-friendly free browser


E-Business Models(Weill & Vitale, Place to Space, HBS Press, 2001): E-Business Models (Weill & Vitale, Place to Space, HBS Press, 2001) Content Provider: Reuters Direct to Customer: Dell Full-Service Provider: GE Supply Co. Intermediary: eBay Shared Infrastructure: SABRE Value Net Integrator: 7-Eleven Japan Virtual Community: Monster.com Whole-of-Enterprise: Government


Economics of E-Business: Economics of E-Business Sources of Revenue: - Transaction fees - Information and advice - Fees for services and commissions - Advertising and listing fees Ownership - Customer relationship - Customer data - Customer transaction


Electronic and Traditional Services: Electronic and Traditional Services


Grocery Shopping Comparison: Grocery Shopping Comparison


Economics of Scalability: Economics of Scalability


Adoption of New Technology in Services: Challenges of Adopting New Technology The Process is the Product Back Office vs Front Office Changes Need for Standardization Managing the New Technology Adoption Process Ten step process with concern for employees and customers Adoption of New Technology in Services


Topics for Discussion: Topics for Discussion Can an Internet service encounter be a memorable experience? How does the economics of scalability explain the failure of Living.com, an online furniture retailer? What are the characteristics of early adopters of self-service? How can we design for self-recovery when self-service failure occurs?


Interactive Exercise: Interactive Exercise The class breaks into small groups and each comes up with an Internet site that they believe will be successful in the long run and explain why.


Amazon.com: Amazon.com How would you contrast Amazon’s business design with that of Barnes & Noble before Barnes & Noble went online? Why has Amazon.com not turned a profit yet and what needs to be done to achieve profitability? Will Amazon continue to be successful against “click and mortar” competitors, such as Barnes & Nobel, which go online? Is Amazon.com a model for the future of retailing?


Evolution of B2C E-Commerce in Japan: Evolution of B2C E-Commerce in Japan What features of the 7-Eleven Japan distribution system illustrate the “Value Net Integrator” e-business model? Does the 7-Eleven Japan distribution system exhibit scalability economics? How does the 7-Eleven example of B2C e-commerce in Japan illustrate the impact of culture on service system design? Will the 7-Eleven “Konbini and Mobile” system be adopted in the United States?


E-Business Supply Chain (Network) Elements: E-Business Supply Chain (Network) Elements Major entities including firm of interest and its customers, suppliers, and allies Major flows of product, information, and money Revenues and other benefits each participant receives Critical aspects: participants, relationships, and flows Example: 7-Eleven Japan