1. Chapter 5 Technology in Service

2. Learning Objectives The role 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 D. Technology-Mediated Service Encounter
MRI, Optometrist, Airlines
Personal Care, Professional services
Financial planner
Technology
Customer
Server
D. Technology-Mediated
Service Encounter
E. Technology-Generated
A. Technology-Free
B. Technology-Assisted
C. Technology-Facilitated
Tech call center, House arrest monitoring
ATM, Web based info, checkout scanning, airport kiosks

4. Evolution of Self-service
Service Industry
Human Contact
Machine Assisted Service
Electronic Service
Banking
Teller
ATM
Online banking
Grocery
Checkout clerk
Self-checkout station
Online order/ pickup
Airlines
Ticket agent
Check-in kiosk
Print boarding pass
Restaurants
Wait person
Vending machine
Online order/ delivery
Movie theater
Ticket sale
Kiosk ticketing
Pay-for-view
Book store
Information clerk
Stock-availability terminal
Online shopping
Education
Teacher
Computer tutorial
Distance learning
Gambling
Poker dealer
Computer poker
Online poker

5. Classification of Service Automation
Fixed-sequence (F) automatic tollbooth, newspaper dispenser
Variable-sequence (V) ATM, car wash, collating copy machine
Playback (P) directory assistance, answering machine, spell check
Numerical controlled (N) IRS Forms, animation
Intelligent (I) autopilot, computer games, Doppler radar
Expert system (E) car diagnostics, medical diagnosis, stock trading
Totally automated system (T) telemarketing, eft, space shuttle

6. Self-service Technologies (SST)
Does customer adoption of self-service follow a predictable pattern? frequently asked questions
How do we measure self-service quality?
ease of use, enjoyment, control
What is the optimal mix of SST and personal service for a service delivery system? low vs. high touch
How do we achieve continuous improvement when using SST? feedback (feed forward)
What are the limits of self-service given the loss of human interaction? loss of social interaction

7. Purpose of Web-site A retail channel Amazon.com
Supplemental channel Barnes & Nobel
Technical support Dell Computer
Embellish existing service HBR, News websites
Order processing Airlines, Expedia.com
Convey information Kelly Blue Book, Dr. Koop
Organization membership asq.org
Games treeloot.com

8. Internet Models Internet Access Providers AOL, MSN
Portal Yahoo, Search, Directories
Information Content News, Hoover’s
Online Retailer amazon, garden
Transaction Enablers e-trade
Market Makers ebay

9. E-Business Models Content Provider new agencies
Direct to Customer Dell, Gateway
Full-Service Provider GE Supply
Intermediary ebay
Shared Infrastructure Airline SABRE
Value Net Integrator Eleven Japan
Virtual Community Monster.com
Whole-of-Enterprise US Federal Government

10. Electronic and Traditional Services

11. Grocery Shopping Comparison

12. Economics of Scalability (revenue-variable costs)
Dimensions
High Scalability Low
E-commerce continuum
Selling
information
(E-service)
Selling value-
added service
services with
goods
Selling goods
(E-commerce)
Information vs. Goods Content
Information dominates
Information with some service
Goods with support services
Goods dominate
Degree of Customer Content
Self-service
Call center backup
Call center support
Call center order processing
Standardization vs. Customization
Mass distribution
Some personalization
Limited customization
Fill individual orders
Shipping and Handling Costs
Digital asset
Mailing
Shipping
Shipping, order fulfillment, and warehousing
After-sales service
None
Answer questions
Remote maintenance
Returns possible
Example Service
Used car prices
Online travel agent
Computer support
Online retailer
Example Firm
Kbb.com
Biztravel.com
Everdream.com
Amazon.com

13. Topic for Open Discussion
Can an Internet service encounter be a memorable experience?