2 Learning ObjectivesDiscuss 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.
3 Role of Technology in the Service Encounter TechnologyTechnologyTechnologyCustomerServerCustomerServerCustomerServerA. Technology-FreeService EncounterB. Technology-AssistedService EncounterC. Technology-FacilitatedService EncounterTechnologyTechnologyCustomerServerCustomerServerD. Technology-MediatedService EncounterE. Technology-GeneratedService Encounter
5 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?
6 Classification of Service Automation Fixed-sequence (F) - parking lot gateVariable-sequence (V) - ATMPlayback (P) - answering machineNumerical controlled (N) - animationIntelligent (I) - autopilotExpert system (E) - medical diagnosisTotally automated system (T) - EFT
7 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)
8 Technology Convergence Enabling E-Business InternetGlobal telephone systemCommunications standard TCP/IP (Transfer Control Protocol/Internet Protocol)Addressing system of URLsPersonal computers and cable TVCustomer databasesSound and graphicsUser-friendly free browser
9 E-Business Models (Weill & Vitale, Place to Space, HBS Press, 2001) Content Provider: ReutersDirect to Customer: DellFull-Service Provider: GE Supply Co.Intermediary: eBayShared Infrastructure: SABREValue Net Integrator: 7-Eleven JapanVirtual Community: Monster.comWhole-of-Enterprise: Government
10 Economics of E-Business Sources of Revenue: - Transaction fees - Information and advice - Fees for services and commissions - Advertising and listing feesOwnership - Customer relationship - Customer data - Customer transaction
13 Economics of Scalability DimensionsHigh Scalability LowE-commerce continuumSellinginformation(E-service)Selling value-added serviceservices withgoodsSelling goods(E-commerce)Information vs. Goods ContentInformation dominatesInformation with some serviceGoods with support servicesGoods dominateDegree of Customer ContentSelf-serviceCall center backupCall center supportCall center order processingStandardization vs. CustomizationMass distributionSome personalizationLimited customizationFill individual ordersShipping and Handling CostsDigital assetMailingShippingShipping, order fulfillment, and warehousingAfter-sales serviceNoneAnswer questionsRemote maintenanceReturns possibleExample ServiceUsed car pricesOnline travel agentComputer supportOnline retailerExample FirmKbb.comBiztravel.comEverdream.comAmazon.com
14 Adoption of New Technology in Services Challenges of Adopting New Technology The Process is the Product Back Office vs Front Office Changes Need for StandardizationManaging the New Technology Adoption Process Ten step process with concern for employees and customers
15 Topics for DiscussionCan 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?
16 Interactive ExerciseThe 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.
17 Amazon.comHow 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?
18 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?
20 E-Business Supply Chain (Network) Elements Major entities including firm of interest and its customers, suppliers, and alliesMajor flows of product, information, and moneyRevenues and other benefits each participant receivesCritical aspects: participants, relationships, and flowsExample: 7-Eleven Japan