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Technology in Services

The document discusses the role of technology in service encounters and delivery. It describes 5 modes of technology's role ranging from technology-free encounters to technology-generated encounters where humans are replaced. It also discusses the evolution of self-service and various categories of automation from fixed sequence to totally automated systems. Finally, it examines the internet as a service enabler and compares virtual and physical services.

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Axel Hagosojos
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20 views

Technology in Services

The document discusses the role of technology in service encounters and delivery. It describes 5 modes of technology's role ranging from technology-free encounters to technology-generated encounters where humans are replaced. It also discusses the evolution of self-service and various categories of automation from fixed sequence to totally automated systems. Finally, it examines the internet as a service enabler and compares virtual and physical services.

Uploaded by

Axel Hagosojos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Technology in

Services
Technology in Services
The introduction of technology empowers the customer to
perform the service unassisted

Examples:
• Credit card reader at the pump facilitates the purchase of
gasoline without help

• Internet allows customers to book their own flights


Five Modes of Technology'S Role in Service
Encounter
1. A mode - called technology-free service encounter, where the customer is in
physical proximity to and interacts with a human service provider.
2. B mode - called technology-assisted service encounter, because only the
service provider has access to the technology to facilitate the delivery of face-
to-face service.
3. C mode - is called technology-facilitated service encounter, because both the
customer and service provider have access to the same technology
4. D mode - is called technology-mediated service encounter, the customer and
human service provider are not physically co-located and thus the service
encounter no longer is the traditional "face-to-face" contact.
5. E mode - called technology-generated service encounter, the human service
provider is replaced entirely with technology that allows the customer to self-
serve (i.e., outsourcing the job to their customers).
Evolution of Self-Service
High-touch services such as health care, fire
fighting, and dentistry remain immune to self-service,
but some inroads are possible. For example, a patient at
home can use a blood pressure machine to record a
vital activity that can be sent by telephone to a remote
receiver in the doctor's office.
The proliferation of self-service has many implications for
society. Low-wage, unskilled, non-value-added service
jobs are bound to disappear. The emergence of a self-
service sector means that the growth in service jobs will
be limited to highly skilled (e.g., health care), intellectual
(e.g., professional), and creative (e.g., entertainment)
pursuits.
Automation in Services
The back office has been the most logical place to introduce automation in
services, because these operations often are repetitive and routine and thus
amenable to labor-saving devices.

Many applications have been in the hard automation category, such as


replacing human manual activity with a machine (e.g., an automatic lawn
sprinkler system at a hotel).

More advanced programmable devices also have found application in services,


sometimes interacting with the customer (e.g., automated answering systems
that route callers by means of Touch-Tone phones).
Classification/ Categories of
Automation Applications
1. Fixed Sequence (F)
2. Variable Sequence (V)
3. Playback (P)
4. Numerical controlled (N)
5. Intelligent (I)
6. Expert System (E)
7. Totally automated system (T)
Fixed Sequence (F) - a machine that repetitively
performs successive steps in a given operation to a
predetermined sequence, condition, and position, and
whose set information cannot be changed easily.
Service 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. Service
example: automated teller machine.
Playback (P) - a machine that can produce
operations from memory that were originally
executed under human control. Service example:
telephone 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. Service example: animated
characters at an amusement part.
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. Service
example: autopilot for a commercial plane.
Expert system (E) - a computer program that uses
an inference engine (i.e., decision rules) and a
knowledge base (i.e., information on a particular
subject) to diagnose problems. Service 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 a
product or deliver a service. Service example:
electronic funds transfer.
The Internet as a Service Enabler
The Internet is a worldwide, publicly accessible network of
interconnected computer networks that transmits data using
the standard Internet Protocol (IP). It is a "network of
networks" that consists of millions of smaller academic (.edu),
business (.com), non-profit (.org), and government (.gov)
networks, which together carry various information and
services, such as electronic mail, online chat, file transfer,
streaming media, voice-over-IP (VoIP), and access to the
World Wide Web (www).
• Internet - is a collection of interconnected computer
networks, linked by copper wires, fiber-optic cables,
and wireless connections
• Web - is a collection of interconnected documents
and other resources, linked by hyperlinks and uniform
resource locators (URLs).
E-commerce
• E-commerce became a reality following a convergence of several
technologies, including the Internet, global telephone systems,
communications standard TCP/IP, addressing system of URLs, personal
computers and cable TV, customer databases, sound and graphics,
and user-friendly free browsers.
• Some organizations use the Internet solely to communicated with
employees, suppliers of raw materials, or suppliers of supporting
services, such as bookkeeping, legal advice, or research materials.
Local and national governments around the world
maintain Web sites that are of interest to both
tourists and businesses.

Other organizations use Web sites to sell products


and services directly to customer.
1. As a channel to sell a product or service
example: Amazon.com, Newegg,com

2. As a supplemental channel
Click-and-mortar firms such as Barnes & Noble have extended their market
reach by adding a Web site.

3. For Technical Support


Product firms that offer after-sales technical support find the Internet to be
an inexpensive avenue to help customers solve common problems. Answers
to questions about setting up a new computer, for example, can be found on
the Dell Computer Web site.
4. To embellish existing service
Services that traditionally have been offered by mail can be augmented by
using a Web site. Harvard Business School Press, for example, uses a Web
site to distribute business cases that faculty can review prior to adoption or
view past issues of the Harvard Business Review at
http://harvardbusinessonline.hbsp.harvard.edu.

5. To process orders
A Web site can be a convenient link for customers to order services. Airlines
quickly made use of Web sites to allow customers to order electronic tickets.
This service bypasses travel agents as a distribution channel and saves the
airlines the cost of commissions.
6. To convey information
Many companies use their Web sites to convey
information about the organization (e.g., names of
officers, addresses, phone numbers, and technical
assistance). Other Web sites serve as information
repositories. The kbb.com site, for example, provides a
source of information for people interested in buying a
car.
7. To communicate with membership
Organizations use a Web site to communicate
information such as conference program
announcements, job listings, and question postings to
their membership. POMS, for example, is an academic
organization for production and operations
management faculty that provides information for
members at http://www.POMS.org.
8. To play games
Online games provide a convenient outlet of
entertainment. Treeloot.com is a game site that
obviously is supported by forcing players to view
advertisements, but other sites foce just on
games.
Comparison of Virtual & Physical
Services
Comparison of Online and
Physical Shopping
E-Business Models
1. Content Provider
2. Direct-to-Customer
3. Full-Service Provider
4. Intermediary
5. Shared Infrastructure
6. Value-Net Integrator
7. Virtual Community
8. Whole-of-Enterprise
Content Provider
Provides content (e.g., information, digital
products, and services) via intermediaries.
Example: The New York Times, Inquirer.net,
Philstar.com
Direct-to-Customer
Provides goods and services directly to the customer, often bypassing
traditional retail channel members. The most widely advertised use of
the Internet has come from online retailers that sell everything (e.g.,
Amazon.com) or products such as personal computers (e.g., Dell
Computer).
Full-Service Provider
Provides a full range of services in one domain (e.g.,
financial, health, industrial chemicals) directly and via
allies. Many business-to-business providers fall in this
category (e.g., General Electric Supply).
Intermediary
Brings together buyers and sellers by concentrating
information. These sites are often referred to as
"marker makers" because the Internet's reach is not
constrained by geography. The success of eBay is due in
part to its ability to create a market for items that
would be difficult to sell locally.
Shared Infrastructure
Brings together multiple competitors to share a
common IT infrastructure. The SABRE reservation
system, for example, orginally was developed by
American Airlines but now is used by the entire airline
industry.
Value-Net Integrator
Coordinates activities across the supply chain by
gathering, synthesizing, and distributing information.
The Konbini distribution system developed by 7-Eleven
in Japan is an example.
Virtual Community
Creates and facilitates an online community of people
with a common interest, enablinng social interaction
and service provision. The most famous example is
MySpace, a community of approximately 106 million
people as of September 2006. If MySpace were a
country, it would be the 11th largest between Japan
and Mexico.
Whole-of-Enterprise
Provides a firmwide single pint of contact,
consolidating all services provided by a large multiunit
organization. The best example is the U.S. federal
governmetn with sites like
http://www.treasurydirect.gov where one can purchase
treasury notes and bonds without an intermediary.

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