Technology in Service

LEARNING OBJECTIVES
Role of Technology in the service encounter Emergence of self-service

Role

RADHAKRISHNAN B (2011B48) Example of service automation SATYABRATA PAL (2011B49) Models Different internet models SENTHILKUMAR P (2011B51)

Scalability to e-commerce Success Managerial issues associated

Role of Technology in the Service Encounter

Technology Technology Technology

Customer

Server

Customer

Server

Customer

Server

A. Technology-Free Service Encounter

B. Technology-Assisted Service Encounter

C. Technology-Facilitated Service Encounter

Technology

Technology

Customer

Server

Customer

Server

D. Technology-Mediated Service Encounter

E. Technology-Generated Service Encounter

Role of Technology in the Service Encounter

5-3

A Mode

Physical proximity and interaction with human service provider Technology does not play a direct role Hairdresser salon, Chiropractor Service provider has access to technology to improve quality MRI scan . Check in terminal Customer and service provider has access to technology Financial planner in consultation with client

B Mode

C Mode

D Mode

Customer and service provider are not physically together Restaurant reservation, Call Center, GPS

E Mode

Human service provider is replaced by technology ATM, airport kiosks

Evolution of Self-service
Service Industry Human Contact Machine Assisted Service ATM Self-checkout station Check-in kiosk Vending machine Kiosk ticketing Stock-availability terminal Computer tutorial Computer poker Electronic Service

Banking Grocery Airlines Restaurants Movie theater Book store Education Gambling

Teller Checkout clerk Ticket agent Wait person Ticket sale Information clerk Teacher Poker dealer

Online banking Online order/ pickup Print boarding pass Online order/ delivery Pay-for-view Online shopping Distance learning Online poker

Classification of Service Automation

Operations which are often repetitive and routine and thus amenable to labor saving Introduction of automation in these operations.

Fixed-sequence (F)

A machine that repetitively performs successive steps in a given operation according to a predetermined sequence, condition, and position, and whose set information cannot be changed easily. Example, automatic parking lot gate

Variable-sequence (V)

A machine that is the same as a fixed-sequence robot but whose set information can be changed easily. Example, ATM machine

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Playback (P)

A machine that can produce operations from memory that were originally executed under human control. Example, answering machine

Numerical controlled (N)

A machine that can perform a given task according to a sequence, conditions, and a position as commanded by stored instructions that can be reprogrammed easily. Example, animated characters at an amusement park

Intelligent (I)

A machine with sensory perception devices, such as visual or tactile receptors, that can detect changes in the work environment or task by itself and has its own decision-making abilities. Example, autopilot for a commercial plane

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Expert system (E)

A computer program that uses an inference engine (i.e decision rule) and a knowledge base (i.e. information on a particular subject) to diagnose problems. Example, maintenance troubleshooting for elevator repair

Totally automated system (T)

A system of machines and computers that performs all the physical and intellectual tasks that are required to produce or deliver a service. Example, electronic funds transfer

Internet Services - Purpose of Web-site

A retail channel (Amazon.com)

These firms sell exclusively through the Internet

As a channel to sell product or service

Supplemental channel (Barnes & Nobel)

Buy in-store or on-line

Technical support (Dell Computer)

Avenue to help customers solve problems

Embellish existing service (HBS Press)

Cases that you can get on-line instead of typically being mailed

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Order processing (Delta Airline)

Electronic tickets Bypass a distribution channel and save costs

Allows airlines to advertise discounted fares

Convey information (Kelly Blue Book)

Car evaluation, resale value, price

Communicate with membership (POMS.org)

Announcements, job listings, question postings

To play games (Treeloot.com)

Convenient outlet for entertainment

Technology Convergence Enabling E-Business

Internet Global telephone system Communications standard TCP/IP Addressing system of URLs Personal computers and cable TV

(Transfer Control Protocol/Internet Protocol)

Customer databases
Sound and graphics User-friendly free browser

Internet Models
Internet access providers

Firms such as America online provide access to World Wide Web and email service.

Portal

They provide a variety of service that include information searching, news, white and yellow pages, etc. Example google, Yahoo.
Use Internet to provide news, example The New York Times Example, Amazon.com Stock trading

Information content

Online Retailers

Transaction enablers

Market makers online auction, example ebay

E-Business Models
Content Provider:

Provides content (information, digital products, and services). Example, Reuters, a British news agency

Direct to Customer:

Provides goods or services directly to the customer. Example, Dell

Full-Service Provider:

Provides a full range of services in one domain. Example, financial, health, industrial, chemical) directly and via allies. Example, General Electric Supply.

Intermediary:

Brings together buyers and suppliers by concentrating information. Example, eBay

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Shared Infrastructure:

Brings together multiple competitors to cooperate by sharing common IT infrastructure. Example, SABRE reservations system

Value Net Integrator:

Coordinates activities across the value net by gathering, synthesizing, and distributing information. Example, 7-Eleven Japan
Creates and facilitates an online community of people with a common interest, enabling interaction and service provision. Example, Monster.com, the job placement firm. Provides a firmwide single point of contact, consolidating all services provided by a large multiunit organization. Example, U.S. federal Government

Virtual Community:

Whole-of-Enterprise:

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

Electronic and Traditional Services

Features Encounter Availability Access Market Area Ambiance Payment Differentiation Privacy Electronic Screen-to-face Anytime From anywhere Worldwide Electronic interface Credit card Convenience Anonymity Traditional Face-to-face Working hours Travel to location Local Physical environment Cash or check Personalization Social interaction

Grocery Shopping Comparison

On-line Shopping Advantages Convenience Saves time Less impulse buying Forget items Less control Need computer Delivery fee

Traditional Shopping See new items Memory trigger Product sampling Social interaction Time consuming Waiting lines Carry groceries Impulse buying

Disadvantages

Service Product Dimensions

Electronic services are intangible Heterogeneity due to different perceptions of

customers (depends on your speed of connection, your computers ability, your level of knowledge)
Simultaneous delivery and consumption of electronic

services

Service Process Dimensions

Service processes can be categorized by

Degree of customer contact and interaction Degree of labor intensity Degree of customization

Electronic services differ from traditional service

Customer contact Customization Labor intensity

To provide electronic service a firm has

On-line part, where the customer interacts (like front-office) Of-line part, which helps on-line part to happen (like back-office)

Economics of Scalability
Dimensions
E-commerce continuum Information vs. Goods Content Degree of Customer Content Standardization vs. Customization Shipping and Handling Costs After-sales service

High
Selling information (E-service) Information dominates Self-service

Scalability
Selling valueadded service Information with some service Call center backup Selling services with goods Goods with support services Call center support

Low
Selling goods (E-commerce) Goods dominate

Call center order processing Fill individual orders

Mass distribution

Some personalization

Limited customization

Digital asset

Mailing

Shipping

Shipping, order fulfillment, and warehousing Returns possible

None

Answer questions

Remote maintenance

Example Service

Used car prices

Online travel agent

Computer support

Online retailer

Example Firm

Kbb.com

Biztravel.com

Everdream.com

Amazon.com

Adoption of New Technology in Services

Challenges of Adopting New Technology

Customer education of the use of technology Customer acceptance Employee training Integration with existing technology Industry standards Managing change

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Managing the New Technology Adoption Process

Japanese model vs American model of introducing change Ten step process with concern for employees and customers

Orientation and education Technology opportunity analysis Application requirements analysis Functional specifications Design specifications Implementation planning Equipment selection and control commitments Implementation Testing of technology Review of results

THANK YOU