Chapter 5: EC in Service Industries ppsx

1 © Prentice Hall, 2000 Chapter 5 EC in Service Industries 2 © Prentice Hall, 2000 Learning Objectives ❚ Understand how broker-based services are performed online ❚ Describe online travel tourism services and their benefits ❚ Discuss the impact of EC on the travel industry ❚ Describe the online job market, its drivers and benefits ❚ Describe the electronic real estate market ❚ Understand how stock trading is done online and its benefits 3 © Prentice Hall, 2000 ❚ Discuss cyberbanking, its drivers and capabilities ❚ Discuss implementation issues of online financial services and its future ❚ Describe electronic auctions, their benefits, implementation, and impacts ❚ Describe some innovative applications in the service industries ❚ Discuss the future of intermediaries and their role in cyberspace Learning Objectives (cont.) Opening Vignette: Ordering Journals Electronically ❚ How a large university automated the purchasing of magazines and journals, saving $365,000/year ❚ Direct Marketing: Buyer-to-seller; orders and payments ❚ Market maker charges $5/transaction Vs. about $40 (conventional agents) ❚ Ordering time reduced by up to 80% 4 Electronic Commerce in Magazine Ordering Opening Vignette: Ordering Journals Electronically (cont.) 5 Publisher Publisher’s Bank University of California Electronic Catalogs Buyer’s Bank BANC ONE OM Transact BANC ONE Automated Clearing House (ACH) Rowe. Com’s Account Rowe.Com System EDI Order + Payment EDI, Internet Order Browsing EDI Payments Fee $5 Fee Payment Buyer SellerIntermediary 6 © Prentice Hall, 2000 Broker-Based Services ❚ Brokers work as intermediaries between buyers and sellers ❚ Agents basically make the markets ❚ Agents provide many services ❚ Most of the value-added tasks of brokers can be automated ❚ Major electronic agent-based services ❙ travel ❙ employment ❙ real estate ❙ stocks ❙ electronic auctions ❙ at-home banking ❙ insurance 7 © Prentice Hall, 2000 ❚ Service Industries Vs. Manufacturing and Product’s Retailing Broker-Based Services (cont.) ❙ Service Industries ❘ pure EC ⇒ substantially reduced cost ❘ bank and brokerage houses • possible digitization of the entire process ❘ travel and real estate agents • viewing an online video clip or seeing photos of a hotel or a house for sale ❙ Manufacturing and Product’s Retailing ❘ physical delivery cost may be high 8 © Prentice Hall, 2000 Travel and Tourism Services ❚ By the year 2000, close to 25 percent of all business-to customer Internet commerce will be related to tourism ❚ The Internet is an ideal place to plan, explore, and arrange almost any trip ❚ IBM’s vision of seamless electronic travel using smart cards 9 © Prentice Hall, 2000 ❚ Services Provided Information and booking of airlines, hotels, cars, and even golf courses Fare comparisons 360 degree video tours of top destinations Electronic Travel magazine Tips provided by people that experienced certain situations (like a visa problem) Pictures of major attractions Providing maps Information about entertainment and ticket purchasing (such as www.ticketmaster.com) Converting 200 currencies Travel and Tourism Services (con t.) Worldwide business and places locator E-mail to intermediary Chat rooms and bulletin boards Major international news Weather watch Experts’ options Shopping for travel accessories and books Special interest vacations Current status of flights (real time) Fare tracker (free e-mail alerts on low fares) Bed and breakfast recommendations Restaurant reviews Special discount information Frequent flier deals Travel news Driving directions in the US Travel and Tourism Services (cont.) 10 © Prentice Hall, 2000 [...]... 2000 32 Cyberbanking and Personal Finance „ Electronic banking ƒ Saves time and money for users ƒ Offers an inexpensive alternative to branch banking ƒ Application Case: Cyberbanking at Wells Fargo © Prentice Hall, 2000 33 Cyberbanking and Personal Finance (cont.) „ Implementation Issues in Banking and Online Trading ƒ Securing Financial Transactions ‚ Application Case: Security at NationsBank B of A Web... latest findings and pricing ƒ ƒ ƒ ƒ of IPOs For chart lovers try www.bigcharts.com For mutual funds evaluation and other interesting investment information see www.morningstar.net Almost anything that you need will be provided to you by www.yahoo.com www.firstcall.com provides earning estimates and much more „ Initial public Offerings (IPOs) ƒ Spring Street Brewing © Prentice Hall, 2000 32 Cyberbanking... expensive International ads are even more expensive ƒ Minimum information— Because of the high cost, the information provided is minimal and may not appeal to some job seekers ƒ Search— It is very time consuming for individuals to find all relevant newspapers A trip to a library results in finding only major out of town newspapers © Prentice Hall, 2000 17 The Employment Placement Market (cont.) ƒ Finding... Verification Initiated External Firewall Logon Screen •User ID •User Password B of A Web Server Internal B of A Firewall Application Server Bank of America Security System © Prentice Hall, 2000 34 Cyberbanking and Personal Finance (cont.) ƒ ƒ ƒ ƒ Using the Extranet Imaging Systems Pricing Online Vs Offline Services The Future of Banking ‚ building alliances quickly with banks, and software vendors, and information... understand the products ƒ Offering of lower-cost trips ƒ Providing a more personalized service ƒ Saving money in a paperless environment ƒ Increasing the convenience of getting information at home ƒ Supporting a customer-focused strategy (such as targeted advertisement and integration of products); push information to customers © Prentice Hall, 2000 13 Travel and Tourism Services (cont.) „ Travel agencies,... information providers ‚ effective outsourcing without neglecting to build inhouse skills, particularly with respect to customer information systems ‚ focusing on the profitable customers to provide broad channels for services and products ‚ keeping a central role in the payment environment © Prentice Hall, 2000 35 Alternative Strategies for Banking ƒ Customers’ Agents— banks unable to achieve economies of scale... (cont.) „ The Internet Job Market ƒ The Internet offers a perfect environment; it is especially effective for technology-oriented jobs ‚ Job seekers ‚ Job offerers ‚ Recruiting firms ‚ Government agencies and institutions © Prentice Hall, 2000 19 The Employment Placement Market (cont.) „ The Advantage of the Electronic Job Market ƒ For job seekers ‚ Ability to find very detailed and timely information... Placement Market (cont.) „ Major Services Available on the Net ƒ ƒ ƒ ƒ Finding a job Writing and posting resumes Career planning Newsgroups „ The Intranet Job Market ƒ Most companies organize an internal electronic job market ƒ Openings are posted for employees to look at, and search engines enable managers to identify talents even if the people were not actively looking for a job change © Prentice... customers the widest possible choices, including products from multiple sources, and provide the customers with integrated information services ƒ Product Manufacturers— banks able to achieve economies of scale ‚ It will strengthen a trend that can already be seen in a number of product segments and in core processing services for small and medium sized institutions ƒ Integrated Players— banks with a strong... municipal bond pricing see : www.bondmarkets.org and www.investinbonds.com ƒ For overall market information and many links see: www.cyberinvest.com ƒ For free Gurus’ advice see: www.upside.com ƒ For stock screening and evaluation try: www.marketguide.com ƒ www.aaii.com provides articles from the Journal of the American Association of Individual Investors © Prentice Hall, 2000 31 Trading Stocks Online (cont.) . Hall, 2000 Chapter 5 EC in Service Industries 2 © Prentice Hall, 2000 Learning Objectives ❚ Understand how broker-based services are performed online ❚ Describe online travel tourism services. some innovative applications in the service industries ❚ Discuss the future of intermediaries and their role in cyberspace Learning Objectives (cont.) Opening Vignette: Ordering Journals Electronically ❚ How. agents) ❚ Ordering time reduced by up to 80% 4 Electronic Commerce in Magazine Ordering Opening Vignette: Ordering Journals Electronically (cont.) 5 Publisher Publisher’s Bank University of California Electronic Catalogs Buyer’s Bank BANC