Technology in Service

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Technology in Service
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Learning Objectives

• Discuss 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.

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Role of Technology in the Service Encounter
 

Technology
Technology
Technology
Customer
Customer  
Server  
Server  
Server  
Customer
A. Technology-Free Service Encounter
B. Technology-Assisted Service Encounter
C. Technology-Facilitated Service Encounter
Technology
Technology
Server  
Server  
Customer
Customer
D. Technology-Mediated Service Encounter
E. Technology-Generated Service Encounter
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Evolution of Self-service
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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?

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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

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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)

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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

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E-Business Models(Weill Vitale, Place to
Space, HBS Press, 2001)

• 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

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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

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Electronic and Traditional Services
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Grocery Shopping Comparison
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Economics of Scalability
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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
• Managing the New Technology Adoption Process Ten
  step process with concern for employees and
  customers

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Topics for Discussion

1. Can an Internet service encounter be a memorable
   experience?
2. How does the economics of scalability explain the
   failure of Living.com, an online furniture
   retailer?
3. What are the characteristics of early adopters of
   self-service?
4. How can we design for self-recovery when
   self-service failure occurs?

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Interactive Exercise

• The 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.

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Amazon.com

• How would you contrast Amazons 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?

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Evolution of B2C E-Commerce in Japan

1. What features of the 7-Eleven Japan distribution
   system illustrate the Value Net Integrator
   e-business model?
2. Does the 7-Eleven Japan distribution system
   exhibit scalability economics?
3. How does the 7-Eleven example of B2C e-commerce
   in Japan illustrate the impact of culture on
   service system design?
4. Will the 7-Eleven Konbini and Mobile system be
   adopted in the United States?

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E-Business Supply Chain (Network) Elements

• Major entities including firm of interest and its
  customers, suppliers, and allies
• Major flows of product, information, and money
• Revenues and other benefits each participant
  receives
• Critical aspects participants, relationships,
  and flows
• Example 7-Eleven Japan