1. 1 Prentice Hall, 2002 Chapter 10 Service Industries, Online Publishing, and Knowledge Dissemination (modified by Judith Molka-Danielsen)

2. 2 Prentice Hall, 2002 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 Prentice Hall, 2002 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 Prentice Hall, 2002 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 Prentice Hall, 2002 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 Prentice Hall, 2002 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 ired.com National listing of real estate properties cyberhomes.com Commercial real estate directory comspace.com Real Estate (cont.)

7. 7 Prentice Hall, 2002 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 Prentice Hall, 2002 Real Estate

9. 9 Prentice Hall, 2002 Real Estate

10. 10 Prentice Hall, 2002 Real Estate

11. 11 Prentice Hall, 2002 Real Estate

12. 12 Prentice Hall, 2002 Real Estate

13. 13 Prentice Hall, 2002 Real Estate

14. 14 Prentice Hall, 2002 Real Estate

15. 15 Prentice Hall, 2002 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 Prentice Hall, 2002 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 Services provided:

17. 17 Prentice Hall, 2002 Travel

18. 18 Prentice Hall, 2002 Travel

19. 19 Prentice Hall, 2002 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 Prentice Hall, 2002 Limitations 1.Not all people use the Internet 2.It may take a long time to find what you want 3.People are still reluctant to provide credit card numbers Benefits 1.Much free information 2.Information is accessible anytime 3.Substantial discounts Travel and Tourism Services (cont.)

21. 21 Prentice Hall, 2002 Corporate Travel: New Business Model The Impact of EC on the Travel Industry Porter’s framework of competitive advantage (the five forces) Focus: Environment Competitive responses Firm’s strategy Taking away some functions traditionally performed by travel agents Travel and Tourism Services (cont.)

22. 22 Prentice Hall, 2002 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 Prentice Hall, 2002 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 Prentice Hall, 2002 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 Prentice Hall, 2002 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 Prentice Hall, 2002 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 Prentice Hall, 2002 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 Prentice Hall, 2002 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 Prentice Hall, 2002 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 Prentice Hall, 2002 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 Prentice Hall, 2002 Employment Placement

32. 32 Prentice Hall, 2002 Employment Placement

33. 33 Prentice Hall, 2002 Employment Placement

34. 34 Prentice Hall, 2002 Employment Placement

35. 35 Prentice Hall, 2002 Job Announcement – …but no description?

36. 36 Prentice Hall, 2002 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

37. 37 Prentice Hall, 2002 Figure 10-4 The Process of Electronic Stock Trading

38. 38 Prentice Hall, 2002 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.)

39. 39 Prentice Hall, 2002 Investment Information (Personal Brokers) Charles Schwab (http://www.charlesschwab.c om) 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 Quick & Reilly (http://www.quickandreilly.com/)http://www.quickandreilly.com/ Citibank (http://www.citibank.com/domain/index1.htm )http://www.citibank.com/domain/index1.htm And many many more… Trading Stocks Online (cont.)

40. 40 Prentice Hall, 2002 Citibank –Online trading and Banking

41. 41 Prentice Hall, 2002 Investment Information Services (cont.) For stock screening and evaluation: multexinvestor.com and cnnfn.com For articles from the Journal of the American Association of Individual Investors: aaii.com For reports the latest findings and pricing of IPOs hoovers.com/ipo For chart lovers bigcharts.com For mutual funds evaluation and other interesting investment information morningstar.com For earning estimates and much more money.cnn.com/news/companies/firstcall/ Trading Stocks Online (cont.)

42. 42 Prentice Hall, 2002 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

43. 43 Prentice Hall, 2002 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

44. 44 Prentice Hall, 2002 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

45. 45 Prentice Hall, 2002 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

46. 46 Prentice Hall, 2002 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.)

47. 47 Prentice Hall, 2002 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

48. 48 Prentice Hall, 2002 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

49. 49 Prentice Hall, 2002 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

50. 50 Prentice Hall, 2002 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

51. 51 Prentice Hall, 2002 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).

52. 52 Prentice Hall, 2002 Online Publishing (cont.) Publishing Modes Newspapers Magazines News Textbooks Music Artwork Video clips Movies

53. 53 Prentice Hall, 2002 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

54. 54 Prentice Hall, 2002 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

55. 55 Prentice Hall, 2002 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

56. 56 Prentice Hall, 2002 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

57. 57 Prentice Hall, 2002 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

58. 58 Prentice Hall, 2002 Knowledge Dissemination (cont.) Virtual teaching and online universities (cont.) MBA program in Hong Kong Lectures delivered on interactive TV (iTV), now on the Web Students decide what and when they “attend” the lecture Lecture, support material exercises, etc., provided on the Web

59. 59 Prentice Hall, 2002 Figure 10-6 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.

60. 60 Prentice Hall, 2002 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

61. 61 Prentice Hall, 2002 Knowledge Dissemination (cont.) Online advice and consulting (cont.) Financial advice— offer extensive financial advice Other service online Healthcare Matchmaking Electronic stamps

62. 62 Prentice Hall, 2002 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

63. 63 Prentice Hall, 2002 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