ROLE OF TECHNOLOGY IN SERVICE OPERATIONS

MANAGEMENT

Technology Trends in Services Increase in Self-Service

Reduces labor costs Speeds up service

Decrease in the Importance of Location Lower costs for delivery of products and

services increases remote points of access and reduces the need for specific service locations

Technology Trends in Services

Increase in Disintermediation Technology brings buyers and sellers closer

together, eliminating intermediate steps or organizations.

Integration Benefits Efficiency in operations Effectiveness in serving customers

Technology Trends in Services

Increased efficiency Economies of scale in consolidating operations. Reduced labor costs through replacement of

manpower and increased labor productivity.

Categories of E-Services

Category Function

Internet

World-wide web presence with open access to all.

Intranet Internal network providing limited access by individuals within an organization.

Extranet A resource-limited network open only to specified internal and external users

Electronic Data Interchange (EDI)

A network designed to support the exchange of data between the organization and its vendors and suppliers.

Value-added network (VAN) A third party service that is used in conjunction with EDI to provide the link to customers and suppliers.

The Role of the Internet, Intranet,Extranet and EDI in an Organization

Automation in Services

Fixed sequence (F) Variable sequence (V) Playback (P) Numerical controlled (N) Intelligent (I) Expert system (E) Totally automated system (T)

Types of E-Services

Broad Categories Specific Service Types

Business-to-Consumer (B2C)

E-tailers (Goods and Services)

Consumer-to-Consumer (C2C)

Customer Support

Business-to-Business (B2B)

Network Providers

Government-to-Business (G2B)

Information Providers

Government-to-Consumer (G2C)

Application Service Providers (ASPs)

Technology Issues

Overcoming Barriers to Entry (Customer) “Fear of the unknown” Lack of knowledge by the customer

Training and Support Worker skill development through hands-on

training in the new technology. Customer familiarization with technology.

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