Transcript slides - University of Georgia

Information is service
The connection between IT & Marketing
Richard T. Watson
The University of Georgia
[email protected]
Information is service
• Charles Feld
– former CIO Delta Air Lines
• Most people will tolerate misconnects and
changes when they occur in the airline
industry–what they won't tolerate is not
getting timely and accurate information. The
airline business today is much more than a
transportation business–it's an information
business, prefaced with an 'e'
Humans as information
processors
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Signing
Drawing/Painting
Speaking
Writing
Embedded meaning
Arabic numerals
Printing
Digitization
Information is service
• We are five channel information
processors
• How we process the data from these five
channels has a significant influence on
our perceptions of service quality
Information is service
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Sight
Smell
Hear
Taste
Feel
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Water and trees
Flowers
Birds
Delightful food
Linen napkin
Information is service
• Information
– substitutes for
– supports
– enhances
– differentiates
products and services
The revolutions
• Agricultural
• Food
• Industrial
• Goods
• Information
• Services
Continuing the revolution
Household server
Household network
Information
service
provider
National Information
Infrastructure connection
The old
High
Service
shop
Professional
service
Service
factory
Mass
service
Interaction and
customization
Low
Low
High
Labor intensity
The new
High
Service
center
The club
Utility
Mass
entertainment
Customization
Low
Low
Interaction
High
What makes services different?
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Intangibility
Simultaneity
Heterogeneity
Perishability
How does the Web change this?
• The Web combines mass production
and individualized customization
• Mass customization
– Treat millions of customers as if they were
unique
Cyberservice
Managing intangibility
• Use the Web to provide evidence
– Ford dealer places cameras in the service
bays
• Use the Web to make tangible the
intangible
– Visit the Disney Web site before the theme
park
Managing simultaneity
• Customization
– Customized news services
• Customer is producer
– Self-service
• The customer is a part-time employee
– Parcel tracking for UPS
Managing simultaneity
• Service industrialization
– Service can be improved by providing less service!
• Levitt
– Switchboard automates directory assistance
• Visitors can find other friends and send a postcard
Managing simultaneity
• Reducing customer errors
– Encounter preparation
• Hampton Inn provides maps
– The encounter
• Enter account number twice when setting up online
payment details
– Encounter resolution
• REI sends customers a copy of their order
Managing heterogeneity
• Service standardization on the Web site
– Full-service Web banking
• Electronic eavesdropping on customers’
conversations
– External customers
– Competitors’ customers
• DejaNews, Gomez, epinions
Managing heterogeneity
Managing heterogeneity
• Service quality
– Web polling of customers
– An on-line version of SERVQUAL
– Shorten the feedback loop to identify
problems rapidly
– Electronic focus groups
Managing perishability
• Managing supply on the Web
– Airlines provide on-line purchasing of
electronic tickets 24 hours a day, every day
• Directing demand on the Web
– On-line auctions to get rid of the surplus
– Widespread use of revenue management
systems
Quantization of services
• Use information to differentiate
• Decompose into the smallest
constituent elements
• Let the customer recombine
• Reduce price competition
• From perfect competition to perfect
choice
WebQual™
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Quality is determined by the customer
Extensive literature review
Focus groups
Web site designers
Web site deconstruction
Instrument development and
refinement
Major aspects of Web site quality
Ease of use
Usefulness
Entertainment
Complementary
relationship
Web
site
quality
Ease of use
• The degree to which a person believes
that using the Web site takes little effort
– Design
– Interactivity
– Response time/technology
– Intuitiveness
Usefulness
• The degree to which a person believes
that using the Web site meets his/her
needs
– Information
– Fit to task
– Trust
– Customer service
Entertainment
• The degree to which a person believes
the Web site is interesting, amusing,
diverting, or pleasurable
– Flow
– Visualness
– Innovativeness
Complementary relationships
• The degree to which a person believes the
Web site is a substitute for traditional
interactions (e.g., ordering by telephone or
mailing in application forms) with the
company and reflects the company’s image
– Integrated communications
– Business process relation
– Substitutability
WebQual™
Design
Interactivity
Response time/technology
Intuitiveness
Ease of use
Information
Fit to task
Usefulness
Trust
Customer services
Entertainment
Flow
Visualness
Innovativeness
Integrated communication
Business process relation
Substitutability
Complementary
relationship
Intention to revisit
Web
site
quality
Intention to
purchase
The data/service cycle
More satisfied
employees
Transactions
Integrated
database
Informed
employees
Better
decisions
CRM
Informed
customers
Information
Analysis
tools
Operational
data stores
Data
warehouse
Business intelligence system
Improved
customer
service
Customer value shift
Information
business
Value
Traditional
business
Customers
Thinking about service
marketing
• Integrated Internet Marketing
• Change dimensions
Integrated Internet Marketing
Asynchronous
text
Information
Consultation and
advice
Order-taking
Hospitality: taking
care of the customer
Safekeeping: looking
after the customer's
possessions
Handling exceptions
Billing
Payment
Synchronous
text
Web
Audio
Video
…
Change dimensions
Automate
Information
Consultation and advice
Order-taking
Hospitality: taking care of
the customer
Safekeeping: looking after
the customer's possessions
Handling exceptions
Billing
Payment
Informate Transform
Service systems
High
Tracking
Knowledge management
Reporting performance
deviations
Sharing employee
expertise
Transaction processing
Expert system
Reliable, consisent
execution
Matching needs to
services
Low
High
Performance
variation
Low
Transaction choice
Service systems
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What are the systems?
What are the entities?
What are the attributes?
What are the relationships?
Perfect choice
• Product choice
– Real and virtual inventory
– Virtual models
• Channel choice
• Component choice
– Build to order
– Self-aggregation
U-commerce
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Ubiquitous
Universal
Unique
Unison
The bumper sticker
Information is service