Outline

1
Outline

• Friday
• Team Project
• Today Ch 6 Competitive Advantage
• Customers Viewpoint
• Business Viewpoint (Competitive Advantage)
• Wednesday
• Team time for Project

2
Current Event

• Groove Technology
• What is new
• Why is it important
• Groove.net
• Handout

3
Table 6.1Otis Elevators Repair Service
4
Table 6.1Otis Elevators Repair Service
CUSTOMER Building owners and people who use
elevators
5
Table 6.1Otis Elevators Repair Service
PRODUCT Elevator maintained in good operating
condition Timely elevator repair History of
service for each elevator
6
Table 6.1Otis Elevators Repair Service

• BUSINESS PROCESS
• Major Steps
• Receive call about a problem
• Dispatch mechanics
• Perform repair steps
• Track progress until the elevator is fixed
• Update records
• Rationale
• Direct all calls for service to a centralized
  dispatching office. Use handheld terminals to
  maintain contact. Maintain records for
  anticipating and solving future problems.

7
Table 6.1Otis Elevators Repair Service
PARTICIPANTS Trained operators who answer calls
for service Local mechanics
INFORMATION Notification of problem Current
status of all calls for service Maintenance
history of each elevator Qualification and
availability of mechanics
TECHNOLOGY Computer at headquarters Handheld
terminals Commercial wireless network
8
Customers Viewpoint

• Viewing the product
• Information, Physical, Service
• Control and Adapt
• Customers Cycle of Involvement
• Customers Criteria for Evaluating

9
Figure 6.1Viewing products as a combination of
information, physical, and service components
10
Figure 6.2Information systems built into
automobiles
11
Figure 6.3Directions for improvement in a
traditional résumé processing system
12
Figure 6.4Opportunities to increase customer
benefits across the customer involvement cycle
13
Business Viewpoint Competitive Advantage

• Competitive Advantage
• Cost and Differentiation
• Wide or Narrow Focus
• Examples
• USAA, WalMart, Frito-Lay, ATMs, Microsoft

14
Summary

• Chapter 6
• Customer and Business Viewpoint
• Wednesday Lab
• Use with team members
• Solution due the following Wednesday
• Friday
• Electronic Commerce and Quiz

15
Figure 6.5Extended value chain for a
manufactured product
16
Figure 6.6How Otis Elevator improved and
expanded its product
17
Figure 6.7Internal costs versus costs borne by
the customer
18
Electronic Commerce

• Examples
• TechnicalValidating Transactions
• Public and Private Key

19
Figure 6.8Three ways to make reservations
20
Figure 6.9Advertising on the Web
21
Table 6.4Supporting the Sales Process for an
Industrial Product

• DESIGN THE SALES PROGRAM AND SUPPORTING MATERIALS
• Provide information and tools for analyzing
  strengths and weaknesses of past and current
  sales processes
• Customize sales materials for specific groups of
  customers
• IDENTIFY, PRIORITIZE, AND CONTACT PROSPECTS
  (POTENTIAL CUSTOMERS)
• Create lists of prospects from commercially
  availabile mailing lists or from internal
  customer lists
• Obtain information about individual prospects
  prior to sales calls
• MEET WITH PROSPECTS TO QUALIFY THEIR INTEREST,
  EXPLAIN THE PRODUCT, AND COUNTER OBJECTIONS
• Use communication technology to set up meetings
• Use computers to demonstrate product options or
  stimulate product operation
• Use databases to provide information for
  justifying the purchase or countering objections

22
Table 6.4Supporting the Sales Process for an
Industrial Product

• NEGOTIATE PRICING AND DELIVERY OPTIONS
• Perform pricing calculations while exploring the
  customers options
• Link to corporate databases to find current
  product availability and delivery options
• TAKE THE ORDER
• Perform the recordkeeping related to taking the
  order and conveying it to the delivery department
• FOLLOW UP TO MAINTAIN THE CUSTOMER RELATIONSHIP
• Maintain customer database
• Perform cutomer surveys
• Store and analyze warranty and repair data

23
Figure 6.10Direct customer participation in
customizing an information product
24
Figure 6.11LevilLink services in the retailing
cycle
25
Figure 6.12Handheld terminal used to speed the
process of returning rental cars
26
Figure 6.13Fords Service Bay Diagnostic System
27
Figure 6.14How elements of a business combine to
determine competitive outcomes