Technology in Services BMGMT 3101 | Service Operation Management Prepared by Facilitator’s Name

Week 4 Technology in Service McGraw-Hill/Irwin Service Management: Operations, Strategy, and Information Technology, 6e Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management Learning Objectives Describe the five roles of technology in the service encounter. Give industry examples of the evolution of self-service from human contact, to machine assisted, to electronic service. Describe the eight uses of web sites. Describe and differentiate the eight generic E-business models. Explain what is meant by scalability an how its is relevant to E-commerce. Describe the managerial issues associated with the adoption of new technology. 5-3

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management Role of Technology in the Service Encounter Technology Customer Server Server Server Server Server Customer D. Technology-Mediated Service Encounter E. Technology-Generated Service Encounter A. Technology-Free Service Encounter B. Technology-Assisted Service Encounter C. Technology-Facilitated Service Encounter 5-4

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management Evolution of Self-service Service IndustryHuman ContactMachine AssistedInternet Facilitated BankingTellerATMOnline banking GroceryCheckout clerkSelf-checkout stationOnline order/ pickup AirlinesTicket agentCheck-in kioskPrint boarding pass RestaurantsWait personVending machineOnline order/ delivery Movie theaterTicket saleKiosk ticketingPay-for-view Book storeInformation clerkStock-availability terminalOnline shopping EducationTeacherComputer tutorialDistance learning GamblingPoker dealerComputer pokerOnline poker 5-5

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management Self-service Technologies (SST) Challenges 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? 5-6

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management 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 5-7

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management 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 5-8

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management Purpose of Web-sites Retail channel (Amazon.com) Supplemental channel (Barnes & Nobel) Technical support (Dell Computer) Embellish existing service (HBS Press) Process orders (Delta Airline) Convey information (Kelly Blue Book) Communicate with membership (POMS.org) Play games (Treeloot.com) 5-9

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management E-Business Models 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 5-10

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management 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 5-11

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management 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 Readiness to Embrace New Technology The Case of Radio Frequency Identification 5-12

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management FEATURESVIRTUAL SERVICEPHYSICAL SERVICE Service Encounter Availability Access Market Area Ambiance

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management ADVANTAGESONLINE SHOPPING PHYSICAL SHOPPING

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management TECHNOLOGICAL INNOVATION IN SERVICES The great gains in agricultural and manufacturing productivity came from the substitution of technology for human effort. Technology need not be confined to hardware and machines, however. It also includes innovative systems, such as electronic funds transfer or automated multiphasic health testing. In manu­facturing, the introduction of technological innovations goes unnoticed by con­sumers, but such innovations become an integral part of the service that is pro­ vided.

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management Challenges of Adopting New Technology in Services For services, "the process is the product," because customers participate directly in the service delivery. Therefore, the success of technological innovations, par­ticularly for the front office, depends on customer acceptance. The impact on cus­tomers is not always limited to a loss of personal attention. Customers also may need to learn new skills (e.g., how to operate an automatic teller machine or pump gasoline), or they may have to forgo some benefit (e.g., loss of float through the use of electronic funds transfer).

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management Challenges of Adopting New Technology in Services As internal customers, employees also are affected by new technology and often need retraining. Service has to be standardize. Other examples of this need to standardize occurred in retailing with the ac­ceptance of the Universal Product Code (UPC) by manufacturers. Retailers who have adopted the UPC can use laser scanners to read a bar code (i.e., a series of vertical stripes of different widths) on products. Consequently, they can use a computer to register sales and update inventory levels simultaneously

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management Amazon.com Discussion: –What were / are the key drivers of success? –What role has technology played?

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management Discussion Name 1.An existing service that could be improved by new technology 2.A new service that could be introduced if new technology were developed 3.A technology that hasn’t yet converged to a service

ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide INSERT FACULTY NAME HERE BMGMT3102 | Service Operation Management End of Lecture