1. 1 Services Industry (2007 - jmd)

2. 2 Learning Objectives  Focus on major online broker-based services 1.Real estate 2.Travel & tourism 3.Job market & searching 4.Stock trading 5.Cyberbanking, financial services 6.Online Publishing, Knowledge Dissemination, Distance Learning  Concepts of disintermediation and reintermediation

3. 3 Broker-Based Services  Brokers work as intermediaries between buyers and sellers  Agents basically make the markets  Agents provide many services  Many of the value-added tasks of brokers can be automated

4. 4  Real estate and Travel agents Viewing an online video clip or seeing photos of a hotel or a house for sale  Bank and brokerage houses Possible digitation of the entire process Broker-Based Services (cont.)

5. 5 1.Real Estate  You can view many properties on the screen  You can sort and organize properties  You can find detailed information about the properties  You can search, compare and apply for loans

6. 6  Real Estate Applications (You may not start with the comprehensive sites, but go to a general search engine and search for the location of interest.) International Real Estate Directory and News is the most comprehensive Web site http://ired.com/ US National listing of real estate properties http://cyberhomes.com/ Commercial real estate directory http://comspace.com/ Real Estate (cont.)

7. 7 Mortgage comparisons, calculations, and other financing information; mortgage application Searching residential real estate and property listings in multiple databases Real estate related maps are available on Automating the closing of real estate transactions, much paperwork (Mostly in person at a Real Estate Agency in US or at a bank in Norway.) Consulting and Analyst: how much house you can afford, consult Mortgage brokers can pass on loan applications online and receive bids from lenders that want to issue the mortgages Real Estate (cont.)

8. 8 Real Estate http://www.savewright.org/ http://www.savewright.org/

9. 9 Real Estate

10. 10 Real Estate http://www.recnj.com/http://www.recnj.com/

11. 11 Real Estate

12. 12 Real Estate

13. 13 Real Estate

14. 14 Real Estate

15. 15 2. Travel and Tourism Services  Any experienced traveler knows that good planning and shopping around can save money  The Internet is an ideal place to plan, explore, and arrange almost any trip  Two types of sites: how to get there, what to do there  Businesses have different needs (make contacts, promote company image) Repeat customers Still interested in prices

16. 16 Travel and Tourism Services (cont.)  Information and booking of airlines, hotels, cars, B&Bs, and even golf courses, special interest vacations  Fare comparisons, frequent flier deals, status of flights, fare tracker, place locator  360 degree video tours of top destinations  Converting 200 currencies  Maps, attraction photos, ticket purchasing, tips from travelers, driving directions, restaurant reviews, recommendations  discount information  travel accessories and books, travel news  Weather watch  travel magazine, major international news, chat rooms, bboards  Virtual tours Services provided:

17. 17 Travel http://www.mrjet.se/ OR http://www.ebookers.no/?LANG=NOhttp://www.mrjet.se/ http://www.ebookers.no/?LANG=NO Or http://www.sasbraathens.no/Default.aspx?epslanguage=NOhttp://www.sasbraathens.no/Default.aspx?epslanguage=NO

18. 18 Travel

19. 19 Travel and Tourism Services (cont.)  The electronic agent is not-all- inclusive: Mr. Jet might not include the smaller airlines and less known locations.  Auctions, bids, and special sales American airlines (aa.com) auctions tickets during low-volume seasons Cathay (cathaypacific.com) auctions tickets on competitive routes

20. 20 Limitations 1.Not all people use the Internet 2.It may take a long time to find what you want Benefits 1.Much free information 2.Information is accessible anytime 3.Substantial discounts Travel and Tourism Services (cont.)

21. 21  Corporate Travel: New Business Model Focus:  Environment  Competitive responses  Firm’s strategy Taking away some functions traditionally performed by travel agents Travel and Tourism Services (cont.)

22. 22  Impacts on the industry Multimedia helps customers understand the products Offering of lower-cost trips, personalized service, convenience info at home  Turban predicts Travel agencies, as we know them today, will disappear Only their complex value-added activities will not be automated These complex activities will be performed by a new breed of intermediaries  Survival strategy Minor improvements due to process changes BPR with significant improvements Organizational transformation Travel and Tourism Services (cont.)

23. 23 Figure 10-2 The Travel Industry Chain Source: Block and Segev “The Impact of Electronic Commerce on the Travel Industry” Proceedings, HICSS 31, Hawaii © 1997 IEEE.

24. 24 Travel and Tourism Services (cont.)  Intelligent agents (But these do not always integrate services: sa. flight with local attractions.) Step 1: turn on PC and enter  Desired destination  Dates  Available budget  Special requirements  Desired entertainment Step 2: intelligent agent “shops around” Step 3: agent attempts to match your requirements with what is available, negotiates with vendors Step 4: agent returns within minutes with suitable alternatives, modifies as per your wishes, books the vacation

25. 25 3. Employment Placement  Job markets Matching Employers jobs with employees skills Volatile market, many announcements are on the Internet, but not all types of jobs Job location and type is also an important factor with jobs availability.

26. 26  E-ads for jobs as opposed to classified ads Cost—classified ads are expensive Life cycle—life of the ads is only days or weeks Place—most ads are local; nationwide and international ads are more expensive Minimum information—because of the high cost, the information provided is minimal Search—Time consuming for individuals to find all relevant newspapers The Employment Placement

27. 27 The Employment Placement  The Internet Job Market The Internet offers a perfect environment; it is especially effective for technology-oriented jobs  Job seekers  Job offerers  Recruiting firms  Government agencies and institutions

28. 28 The Employment Placement  detailed and timely information on a many jobs world- wide  Quickly communicate with potential employers  Post resumes for large-volume distribution (For those seeking first jobs.)  Search for jobs quickly from any place at any time  Obtain several support services at no cost  Find employer profile & industry guides (valuereports.Com) The Advantage of the Electronic Job Market For job seekers

29. 29 The Employment Placement  Advertise to a large number of job seekers  Save on advertisement costs  Lower the cost of processing (using electronic application forms)  Provide greater (‘equal opportunity’) for job seekers  Find highly skilled employees  Conduct tests quickly, online  Change and update ads quickly  Fill up positions rapidly  Interviewing from distance The Advantage of the Electronic Job Market For employers

30. 30 The Employment Placement  The Limitations of Electronic Job Markets Many people do not use the Internet Security & privacy Maybe not a comprehensive listing Lack of face-to-face contact Intelligent agents for job seekers (jobsleuth.com), few listings, difficult to use.  Examples of online job services Locating jobs Writing and posting resumes Career planning Newsgroups

31. 31 Employment Placement http://jobb.jobbnorge.no/ http://jobb.jobbnorge.no/

32. 32 Employment Placement http://www1.tu.no/jobb/ http://www1.tu.no/jobb/

33. 33 Employment Placement

34. 34 Employment Placement http://www.stepstone.no/home_fs.cfm http://www.stepstone.no/home_fs.cfm

35. 35 Job Announcements – in education are listed at each school.

36. 36 Job announcements – are on the top menu at UiB

37. 37 4. Investing and Trading Stocks Online  Online stock trading Costs between $7 and $29 per transaction (vs. $10 - $35 in traditional brokerage) No waiting on busy telephone lines No oral communication, less chance for errors Place orders from anywhere, any time, day or night No biased broker to push you Considerable amount of free information

38. 38 Figure 10-4 The Process of Electronic Stock Trading

39. 39  Investment Information (General Information) For current financial news: cnn.com, hoovers.com, and bloomberg.com For municipal bond pricing: bloomberg.com For overall market information and many links: cyberinvest.com For free Guru advice see: upside.com Trading Stocks Online (cont.)

40. 40  Investment Information (Personal Brokers)  Charles Schwab (http://www.charlesschwab.com )http://www.charlesschwab.com  Fidelity Investments (http://www.fidelity.com)http://www.fidelity.com  Datek Online (http://www.datek.com)http://www.datek.com  CSFBdirect (http://www.csfbdirect.com)http://www.csfbdirect.com  Citibank (http://www.citibank.com/domain/index1.htm )http://www.citibank.com/domain/index1.htm  And many many more… Trading Stocks Online (cont.)

41. 41 Citibank –Online trading and Banking

42. 42  Investment Information Services (cont.) For stock screening and evaluation: http://www.reuters.com/investing and http://money.cnn.com http://www.reuters.com/investing http://money.cnn.com For articles from the Journal of the American Association of Individual Investors: http://aaii.com/ For reports the latest findings and pricing of IPOs http://www.hoovers.com/global/ipoc/http://aaii.com/ http://www.hoovers.com/global/ipoc/ For chart lovers http://bigcharts.marketwatch.com/http://bigcharts.marketwatch.com/ For mutual funds evaluation and other interesting investment information http://www.morningstar.com/http://www.morningstar.com/ For earning estimates and much more http://money.cnn.com/data/earnings/ http://money.cnn.com/data/earnings/ Trading Stocks Online (cont.)

43. 43 Trading Stocks Online (cont.)  Initial public offerings (IPOs) Spring Street Brewing Offers initial and secondary securities trading over the Internet See ipo.com  Global stock exchanges—around- the-clock global trading  Related markets Financial derivatives Commodities Mutual funds  Individual investors and day trading  Electronic trading of interest rate derivatives Swapswire.com Forbes.com

44. 44 On-line banking and Personal Finance – now the banks can do everything..  Electronic banking Saves time and money for users Offers an inexpensive alternative to branch banking  Multi-currency, retail purchasing by credit card or international banking  Capabilities of home banking Get current account balances any time Obtain charge and credit card statements Pay bills Download account transactions Transfer money between accounts

45. 45 Using the extranet  Banks provide large business customers with personalized service by allowing them access to the bank’s intranet Access accounts Historical transactions Intranet-based decision-support applications On-line banking and Personal Finance

46. 46 On-line banking and Personal Finance Imaging systems—allow customers to view images of all:  Incoming checks  Invoices  Other related online correspondence Pricing online vs. off-line services  Some banks offer free services (fee per check or transfer)  Some banks charge $5 to $10 Risks—especially in international banking

47. 47  Banking: 4 scenarios 1.Building alliances quickly with banks, software vendors, and information providers 2.Effective outsourcing without neglecting to build in-house skills (customer information systems) 3.Focusing on the profitable customers to provide broad channels for services and products 4.Keeping a central role in the payment environment On-line banking and Personal Finance (cont.)

48. 48 The Future of Online Banking  Three core strategies to pursue 1. Customers Agents—banks unable to achieve economies of scale Offer customers the widest possible choices Include products from multiple sources Provide the customers with integrated information services

49. 49 The Future of Online Banking (cont.)  Three core strategies to pursue (cont.) 2. Product Manufacturers—banks able to achieve economies of scale  Strengthen a trend that can already be seen in a number of product segments  In core processing services for small and medium-sized institutions

50. 50 The Future of Online Banking (cont.)  Three core strategies to pursue (cont.) 3. Integrated Players—banks with a strong brand and position from manufacturing to delivery  Many banks will adopt a hybrid strategy  Every player needs to make crucial decisions about which areas are strategically too risky: To outsource Which capabilities need to be built up in-house

51. 51 The Future of Online Banking (cont.)  Personal finance online Bill paying and e-checks Tracking bank accounts etc. Portfolio management Investment tracking Quotes and prices (past and current) Budget organization Record keeping Tax computations Retirement goals, planning and budgeting

52. 52 5. Online Publishing  electronic delivery and creation  Online Publishing Today and Tomorrow Today— mainly used for disseminating or distribution of information and for conducting sales transactions interactively Tomorrow— include more customized material that the reader will receive free, or will pay for Also tomorrow – more on-line in the creation of information products (reviews, editing). More on-line in the consumption or use of the product (reading).

53. 53 Online Publishing (cont.)  Publishing Modes Newspapers Magazines News Textbooks Music Artwork Video clips Movies

54. 54 Online Publishing (cont.)  Publishing Methods Online archive: digital archive (library catalogs, bibliographic databases) New medium: extra comprehensiveness to issue or topic Publishing intermediation: online directory for news services Dynamic or just-in-time: create content in real-time and transmit on the fly

55. 55 Online Publishing (cont.)  Content providers and distributors Issues of intellectual property is a consideration  Akamai.com  Digisle.com  Edgix.com  Publishing music, videos, and games Major issue is payment of intellectual property fees

56. 56 Online Publishing (cont.)  Edutainment—combination of: Education Entertainment Games Goal: encourage students to become active learners Managerial issues  Educational games delivered as CD-ROMs  Distance-learning format

57. 57 Online Publishing (cont.)  Electronic books Frequent updates possible Contain up-to-the-minute information Special eBook device necessary to view books See:  Wizap.com  Ebookconnections.com  Netlibrary.com

58. 58 6. Knowledge Dissemination  Virtual teaching and online universities Distance learning and virtual universities Many universities offer limited courses and degrees, but use innovative teaching methods and multimedia support

59. 59 Knowledge Dissemination (cont.)  Virtual teaching and online universities (cont.) http://www.nettitaliensk.uib.no/innlogging.php http://www.nettitaliensk.uib.no/innlogging.php MBA program in Hong Kong (2004)  Lectures delivered on interactive TV (iTV), now on the Web  Students decide what and when they “attend”  Lecture, support material exercises, etc., provided on the Web Second Life http://www.youtube.com/watch?v=ZUNAhzwZkdU http://www.youtube.com/watch?v=ZUNAhzwZkdU http://www.slideshare.net/iconolith/second-life- for-education http://www.slideshare.net/iconolith/second-life- for-education

60. 60 Education as EC Forces Drive the Transition Source: Hamalainen et al., “Electronic Marketing for Learning: Education Brokerages on the Internet,” Communications of the ACM, June 1996. Hamalainen et al. © 1996 ACM, Inc. Reprinted with permission.

61. 61 Knowledge Dissemination (cont.)  Online advice and consulting Medical advice— provide consultation with top experts Management consulting—provide accumulated expertise from knowledge bases Legal advice— delivery of legal consultation services to business has considerable prospects

62. 62 Knowledge Dissemination (cont.)  Online advice and consulting (cont.) Financial advice— offer extensive financial advice Other service online  Healthcare  Matchmaking  Electronic stamps

63. 63 Disintermediation and Reintermediation  Change the role of agents to: Assists in comparison from multiple sources Providing total solutions by combining services from several vendors Providing certifications and trusted third party control and evaluation systems

64. 64 Disintermediation and Reintermediation (cont.)  New roles of electronic marketing intermediaries Extend familiar physical markets to the virtual world (e.g., search services and electronic malls) Extend payment clearing functions into the Internet (e.g., electronic cash and digital credit card services)  Disintermediation in B2B Must Reengineer marketing and sales organizations