Electronic Commerce in Service Industry

Chapter 5

Service Industry

Delivery of services (buying an airline ticket or stocks) can be done 100 percent electronically, with considerable cost reduction potential. Therefore, online services is growing very rapidly.

Ordering Journal Electronically

Typically universities contact an agent to place order for journals, who consolidate orders from many universities than contact publishers. Publisher delivers the journal up to his convinces. The process was slow and expensive

Online ordering of journals save 80% time and cost. EDI and EFT are used to confirm orders

Broker Based Services

Brokers usually work for commission Brokers Companies in service industry, sells

even before internet. Agents can be automated and serve value

added services. Broker provide many services like: information

providing, collect money, providing health safety and insurance assistance. Travel agents Job placements agencies Insurance companies Stock markets

Travel and Tourism

Travel industry is expanding rapidly In traditional way getting right information at right

time is difficult. Computerized airline reservation system is

largest non-military information system A planned travel trip save considerable amount. Internet is ideal place to plan, explore and

arrange any trip. On internet free information is accessible any

time, any place

Travel and Tourism

Services provided Direct Services from airline and hotels Fare comparisons / best deals Information about reservation/ purchasing tickets,

available Accommodations Driving directions/ route locators Virtual tours Travel magazines Travel news Business and place locators Currency conversions

Travel and Tourism: Impact on the travel industryLower cost tripsInformation and Tickets at home Paperless ticketsPersonalized servicesHelping customers efficientlyTravel agencies will disappearNew bread of organization will appear :

travel superstore , with intelligent agents

Employment placement and job market

Job market is volatile where supply and demand are frequently unbalanced

The internet offers a perfect environment for job seekers, companies searching for employees.

Other driving forces:- Cost: advertising cost is very high

Minimum information transferred Life of ad is one day Limited area is covered in ads Data loss and out dated material is common Finding and matching applicants is time taking Speed is slow

Employment placement and job market

Main Elements of job markets: Job seeker, Organizations and recruiting firms Government agencies and institutions,

Advantages of EC job seekers Information of large number of jobs Quick communication, any place any time Post resume for large distribution Direct access to big organizations Free services , resume makers, interviews trainers

Employment placement and job market

Advantages for employers Large database of job seekers Save on advertising Lower cost of short listing Easy finding of highly skilled Equally opportunity

Services available Can find job by locations By classifications Carrier planning, guidance by counselors Forums and newsgroups Intelligent agents search by keywords through resume

Real estate Real estate transactions are an ideal area for e-

commerce. The customer can view many properties, sort and organize properties according to preferences

and can preview the exterior and interior designs of the

properties shortening the search process. Builder demonstrate three dimensional models, virtual

walk through models Maps and town planning Buying selling commercial and residential paper work for closing transaction Rental deals Mortgage and loans

Trading stock online

Stocks, bonds, mutual funds commodities Free information, no biased brokers Online: Buy, sell, margin or cash, limit price, Initial public offerings (IPOs) Advice of guru, market research journals Mutual funds Earning estimations, graphical representation of

trend lines

Cyber banking and personal finance

Electronic banking, also known as cyber banking includes various banking activities conducted from home or a business instead of at a physical bank, physical banking or branch banking is on the decline due to its expenses.

International and Multiple-Currency Banking. International banking and the ability to handle trading in multiple currencies, transfers of electronic funds and electronic letters of credit are critical for international trade.

Online Securities Trading can be placed from anywhere, any time. Investors can find a considerable amount of information regarding a specific company or in a mutual fund.

Cyber banking services offered

Current account balance at any timePay billsHandle your finance while travelingATMDownload bank statement

Auctions

Liquidation , collector items and a chance to sell almost any thing drive this market.

Auctions types are diverse and seller reached to millions.

Direct sales : Lower entry barriersB2BIntelligent agents are employed in

monitoring auctions and placing bids strategically.

Online Publishing, Knowledge Dissemination

Online publishing—the electronic delivery of newspapers, magazines, news, music, videos, and other digitizable information over the Internet Mainly used for disseminating information and

for conducting sales transactions interactively Includes customized material that the reader

will receive free, or for a fee

Online Publishing (cont.)

Publishing music, videos, and games Major issue is payment of intellectual

property fees Peer-to-peer (P2P) model—people swap

files 3rd-party organizer are in violation of

copyright laws (Napster)

Electronic Books

E-book—a book in digital form that can be read on a computer screen Human readers must have an e-book reader:

Adobe Acrobat eBook Reader Microsoft Reader MP3

Portable and convenient to carry—7to 700 e-books on one CD-ROM Can be updated frequently Contain up-to-the-minute information Are easy to search

Edutainment: combination of education and entertainment

Significant Investment in E-Learning Technologies, DL and VUE-learning—the online delivery of

information for purposes of education, training, knowledge management, or performance management

Challenges of e-learning Learner’s challenge is to change the mindset of how

learning typically takes place Content provider’s challenge is to make learning

more interactive and engaging

E-Learning (cont.)

Benefits of e-learning—the great equalizer Eliminates barriers of time, distance,

socioeconomic status Individuals take charge of their own lifelong

learning experienceE-learning provides a new set of tools that

add value to traditional learning modesDoes not replace the classroom setting, but

enhances it

E-Learning (cont.)

E-learning also used in the business environment Provides a superior learning and communication

model that: Increases access to learning Provides clear accountability for all participants Reduces costs

Equips employees with the knowledge and information needed to help increase customer satisfaction

Knowledge Management Grows Up

Knowledge management (KM)—the process of capturing or creating knowledge, storing it, updating it constantly, and interpreting and using it whenever necessary Knowledge base—the repository for an enterprise’s

accumulated knowledge Promotes an integrated approach to the process of

identifying, capturing, retrieving, sharing, evaluating enterprise information assets:

Documented unspoken expertise stored in individuals’ heads

Other online services

E-GovernmentE-healthMatchmaking