Chapter 05 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.

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 5-2

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 5-3

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? 5-5

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 5-7

Product Promotion Price Placement Customer Relationship Management Interactivity Connectivity Internet ProcessProcess E-Services People – customers - interface with the Service Provider 1.Through a Process that represent the 4P’s and Customer Relationship Management 2.Implemented on top of a platform that provides connectivity and interactivity Kwan & Min 2008 Marketspace Model for E-Services “For Services - the Process is the Product”

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

Electronic and Traditional Services 5-10

Grocery Shopping Comparison 5-12

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 5-13

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 5-14

Economics of Scalability Dimensions High Scalability Low E-commerce continuum Selling information (E-service) Selling value- added service Selling services with goods Selling goods (E-commerce) Information vs. Goods Content Information dominates Information with some service Goods with support services Goods dominate Degree of Customer Content Self-serviceCall center backupCall center supportCall center order processing Standardization vs. Customization Mass distributionSome personalization Limited customization Fill individual orders Shipping and Handling Costs Digital assetMailingShippingShipping, order fulfillment, and warehousing After-sales serviceNoneAnswer questionsRemote maintenanceReturns possible Example ServiceUsed car pricesOnline travel agentComputer IT supportOnline retailer Example FirmKbb.comBiztravel.comEverdream.comAmazon.com 5-15

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 5-16

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