Transcript service industries 2007

Services Industry
(2007 - jmd)
1
Learning Objectives
Focus on major online broker-based services
Real estate
Travel & tourism
Job market & searching
Stock trading
Cyberbanking, financial services
Online Publishing, Knowledge Dissemination,
Distance Learning
 Concepts of disintermediation and
reintermediation

1.
2.
3.
4.
5.
6.
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Broker-Based Services
 Brokers work as intermediaries
between buyers and sellers
 Agents basically make the markets
 Agents provide many services
 Many of the value-added tasks of
brokers can be automated
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Broker-Based Services
(cont.)
 Real estate and Travel agents
 Viewing an online video clip or seeing photos of a
hotel or a house for sale
 Bank and brokerage houses
 Possible digitation of the entire process
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1.Real Estate
 You can view many properties on the
screen
 You can sort and organize properties
 You can find detailed information
about the properties
 You can search, compare and apply
for loans
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Real Estate (cont.)
 Real Estate Applications (You may not start
with the comprehensive sites, but go to a
general search engine and search for the
location of interest.)
 International Real Estate Directory and News is
the most comprehensive Web site
http://ired.com/
 US National listing of real estate properties
http://cyberhomes.com/
 Commercial real estate directory
http://comspace.com/
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Real Estate (cont.)
 Mortgage comparisons, calculations, and other
financing information; mortgage application
 Searching residential real estate and property
listings in multiple databases
 Real estate related maps are available on
 Automating the closing of real estate
transactions, much paperwork (Mostly in person at
a Real Estate Agency in US or at a bank in Norway.)
 Consulting and Analyst: how much house you can
afford, consult
 Mortgage brokers can pass on loan applications
online and receive bids from lenders that want to
issue the mortgages
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Real Estate http://www.savewright.org/
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Real Estate
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Real Estate http://www.recnj.com/
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Real Estate
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Real Estate
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Real Estate
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Real Estate
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2. Travel and Tourism Services
 Any experienced traveler knows that good
planning and shopping around can save money
 The Internet is an ideal place to plan, explore,
and arrange almost any trip
 Two types of sites:
 how to get there,
 what to do there
 Businesses have different needs (make contacts,
promote company image)
 Repeat customers
 Still interested in prices
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Travel and Tourism Services
(cont.)
Services provided:
 Information and
booking of airlines,
hotels, cars, B&Bs, and
even golf courses,
special interest
vacations
 Fare comparisons,
frequent flier deals,
status of flights, fare
tracker, place locator
 360 degree video tours
of top destinations
 Converting 200
currencies
 Maps, attraction photos,
ticket purchasing, tips
from travelers, driving
directions, restaurant
reviews,
recommendations
 discount information
 travel accessories and
books, travel news
 Weather watch
 travel magazine, major
international news, chat
rooms, bboards
 Virtual tours
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Travel http://www.mrjet.se/ OR
http://www.ebookers.no/?LANG=NO
Or http://www.sasbraathens.no/Default.aspx?epslanguage=NO
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Travel
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Travel and Tourism Services
(cont.)
 The electronic agent is not-allinclusive: Mr. Jet might not include
the smaller airlines and less known
locations.
 Auctions, bids, and special sales
 American airlines (aa.com) auctions
tickets during low-volume seasons
 Cathay (cathaypacific.com) auctions
tickets on competitive routes
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Travel and Tourism Services
(cont.)
Benefits
1. Much free information
2. Information is
accessible anytime
3. Substantial discounts
Limitations
1. Not all people use the
Internet
2. It may take a long time
to find what you want
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Travel and Tourism Services
(cont.)
 Corporate Travel: New Business Model
 Focus:
 Environment
 Competitive responses
 Firm’s strategy
 Taking away some functions
traditionally performed by travel
agents
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Travel and Tourism Services
(cont.)
 Impacts on the industry
 Multimedia helps customers understand the products
 Offering of lower-cost trips, personalized service,
convenience info at home
 Turban predicts
 Travel agencies, as we know them today, will
disappear
 Only their complex value-added activities will not be
automated
 These complex activities will be performed by a new
breed of intermediaries
 Survival strategy
 Minor improvements due to process changes
 BPR with significant improvements
 Organizational transformation
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Figure 10-2
The Travel Industry Chain
Source: Block and Segev “The Impact of Electronic Commerce on the Travel Industry” Proceedings, HICSS 31, Hawaii
© 1997 IEEE.
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Travel and Tourism Services
(cont.)
 Intelligent agents (But these do not always
integrate services: sa. flight with local
attractions.)
 Step 1: turn on PC and enter

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


Desired destination
Dates
Available budget
Special requirements
Desired entertainment
 Step 2: intelligent agent “shops around”
 Step 3: agent attempts to match your
requirements with what is available, negotiates
with vendors
 Step 4: agent returns within minutes with
suitable alternatives, modifies as per your
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wishes, books the vacation
3. Employment Placement
 Job markets
 Matching Employers jobs with
employees skills
 Volatile market, many
announcements are on the Internet,
but not all types of jobs
 Job location and type is also an
important factor with jobs
availability.
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The Employment Placement
 E-ads for jobs as opposed to classified
ads
 Cost—classified ads are expensive
 Life cycle—life of the ads is only days or weeks
 Place—most ads are local; nationwide and
international ads are more expensive
 Minimum information—because of the high
cost, the information provided is minimal
 Search—Time consuming for individuals to find
all relevant newspapers
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The Employment Placement
 The Internet Job Market
 The Internet offers a perfect
environment; it is especially effective for
technology-oriented jobs

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
Job seekers
Job offerers
Recruiting firms
Government agencies and institutions
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The Employment Placement
The Advantage of the Electronic Job Market
For job seekers
 detailed and timely
information on a
many jobs worldwide
 Quickly communicate
with potential
employers
 Post resumes for
large-volume
distribution (For
those seeking first
jobs.)
 Search for jobs quickly
from any place at any
time
 Obtain several support
services at no cost
 Find employer profile &
industry guides
(valuereports.Com)
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The Employment Placement
The Advantage of the Electronic Job Market
For employers
 Advertise to a large
number of job
seekers
 Save on
advertisement costs
 Lower the cost of
processing (using
electronic
application forms)
 Provide greater
(‘equal opportunity’)
for job seekers
 Find highly skilled
employees
 Conduct tests
quickly, online
 Change and update
ads quickly
 Fill up positions
rapidly
 Interviewing from
distance
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The Employment Placement
 The Limitations of Electronic Job Markets

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Many people do not use the Internet
Security & privacy
Maybe not a comprehensive listing
Lack of face-to-face contact
Intelligent agents for job seekers (jobsleuth.com),
few listings, difficult to use.
 Examples of online job services

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Locating jobs
Writing and posting resumes
Career planning
Newsgroups
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Employment Placement http://jobb.jobbnorge.no/
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Employment Placement http://www1.tu.no/jobb/
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Employment Placement
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Employment Placement http://www.stepstone.no/home_fs.cfm
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Job Announcements – in education are listed at
each school.
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Job announcements
– are on the top menu at UiB
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4. Investing and Trading Stocks Online
 Online stock trading
 Costs between $7 and $29 per transaction (vs. $10 $35 in traditional brokerage)
 No waiting on busy telephone lines
 No oral communication, less chance for errors
 Place orders from anywhere, any time, day or night
 No biased broker to push you
 Considerable amount of free information
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Figure 10-4
The Process of Electronic Stock Trading
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Trading Stocks Online
(cont.)
 Investment Information (General
Information)
 For current financial news:
cnn.com, hoovers.com, and bloomberg.com
 For municipal bond pricing:
bloomberg.com
 For overall market information and many links:
cyberinvest.com
 For free Guru advice see:
upside.com
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Trading Stocks Online
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
(cont.)
Investment Information (Personal Brokers)
Charles Schwab (http://www.charlesschwab.com )
Fidelity Investments (http://www.fidelity.com)
Datek Online (http://www.datek.com)
CSFBdirect (http://www.csfbdirect.com)
Citibank (http://www.citibank.com/domain/index1.htm )
And many many more…
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Citibank –Online trading and Banking
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Trading Stocks Online
(cont.)
 Investment Information Services (cont.)
 For stock screening and evaluation:
http://www.reuters.com/investing and
http://money.cnn.com
 For articles from the Journal of the American
Association of Individual Investors: http://aaii.com/
For reports the latest findings and pricing of IPOs
http://www.hoovers.com/global/ipoc/
 For chart lovers http://bigcharts.marketwatch.com/
 For mutual funds evaluation and other interesting
investment information http://www.morningstar.com/
 For earning estimates and much more
http://money.cnn.com/data/earnings/
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Trading Stocks Online
 Initial public offerings
(IPOs)
 Spring Street Brewing
 Offers initial and
secondary securities
trading over the
Internet
 See ipo.com
 Global stock
exchanges—aroundthe-clock global
trading
(cont.)
 Related markets
 Financial derivatives
 Commodities
 Mutual funds
 Individual investors
and day trading
 Electronic trading of
interest rate
derivatives
 Swapswire.com
 Forbes.com
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On-line banking and Personal
Finance – now the banks can do
everything..
 Electronic banking  Capabilities of home
 Saves time and
banking
money for users
 Offers an
inexpensive
alternative to
branch banking
 Multi-currency,
retail purchasing
by credit card or
international
banking
 Get current account
balances any time
 Obtain charge and
credit card statements
 Pay bills
 Download account
transactions
 Transfer money
between accounts
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On-line banking and Personal Finance
 Using the extranet
 Banks provide large business customers with
personalized service by allowing them access
to the bank’s intranet
 Access accounts
 Historical transactions
 Intranet-based decision-support applications
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On-line banking and Personal Finance
 Imaging systems—allow customers to
view images of all:
 Incoming checks
 Invoices
 Other related online correspondence
 Pricing online vs. off-line services
 Some banks offer free services (fee per
check or transfer)
 Some banks charge $5 to $10
 Risks—especially in international banking
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On-line banking and Personal Finance
(cont.)
 Banking: 4 scenarios
1. Building alliances quickly with banks,
software vendors, and information
providers
2. Effective outsourcing without
neglecting to build in-house skills
(customer information systems)
3. Focusing on the profitable customers to
provide broad channels for services
and products
4. Keeping a central role in the payment
environment
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The Future of Online Banking
 Three core strategies to pursue
1. Customers Agents—banks unable to
achieve economies of scale
 Offer customers the widest possible choices
 Include products from multiple sources
 Provide the customers with integrated
information services
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The Future of Online Banking
(cont.)
 Three core strategies to pursue
(cont.)
2. Product Manufacturers—banks able to
achieve economies of scale
 Strengthen a trend that can already be
seen in a number of product segments
 In core processing services for small and
medium-sized institutions
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The Future of Online Banking
(cont.)
 Three core strategies to pursue (cont.)
3. Integrated Players—banks with a strong
brand and position from manufacturing to
delivery
 Many banks will adopt a hybrid strategy
 Every player needs to make crucial decisions
about which areas are strategically too risky:
 To outsource
 Which capabilities need to be built up in-house
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The Future of Online Banking
(cont.)
 Personal finance online
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Bill paying and e-checks
Tracking bank accounts etc.
Portfolio management
Investment tracking
Quotes and prices (past and current)
Budget organization
Record keeping
Tax computations
Retirement goals, planning and budgeting
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5. Online Publishing
 electronic delivery and creation
 Online Publishing Today and Tomorrow
 Today— mainly used for disseminating or
distribution of information and for
conducting sales transactions interactively
 Tomorrow— include more customized
material that the reader will receive free, or
will pay for
 Also tomorrow – more on-line in the
creation of information products (reviews,
editing).
 More on-line in the consumption or use of
the product (reading).
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Online Publishing (cont.)
 Publishing Modes
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Newspapers
Magazines
News
Textbooks
Music
Artwork
Video clips
Movies
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Online Publishing (cont.)
 Publishing Methods
 Online archive: digital archive (library
catalogs, bibliographic databases)
 New medium: extra comprehensiveness to
issue or topic
 Publishing intermediation: online
directory for news services
 Dynamic or just-in-time: create content
in real-time and transmit on the fly
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Online Publishing (cont.)
 Content providers and distributors
 Issues of intellectual property is a
consideration
 Akamai.com
 Digisle.com
 Edgix.com
 Publishing music, videos, and games
 Major issue is payment of intellectual
property fees
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Online Publishing
(cont.)
 Edutainment—combination of:
Education
Entertainment
Games
Goal: encourage students to become
active learners
 Managerial issues
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 Educational games delivered as CD-ROMs
 Distance-learning format
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Online Publishing
(cont.)
 Electronic books
 Frequent updates possible
 Contain up-to-the-minute information
 Special eBook device necessary to
view books
 See:
 Wizap.com
 Ebookconnections.com
 Netlibrary.com
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6. Knowledge Dissemination
 Virtual teaching and online
universities
 Distance learning and virtual
universities
 Many universities offer limited courses
and degrees, but use innovative
teaching methods and multimedia
support
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Knowledge Dissemination
(cont.)
 Virtual teaching and online universities
(cont.) http://www.nettitaliensk.uib.no/innlogging.php
 MBA program in Hong Kong (2004)
 Lectures delivered on interactive TV (iTV), now on
the Web
 Students decide what and when they “attend”
 Lecture, support material exercises, etc., provided
on the Web
 Second Life
http://www.youtube.com/watch?v=ZUNAhzwZkdU
 http://www.slideshare.net/iconolith/second-lifefor-education
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Education as EC Forces Drive the Transition
Source: Hamalainen et al., “Electronic Marketing for Learning: Education Brokerages on the Internet,”
Communications of the ACM, June 1996. Hamalainen et al. © 1996 ACM, Inc. Reprinted with permission.
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Knowledge Dissemination
(cont.)
 Online advice and consulting
 Medical advice— provide consultation
with top experts
 Management consulting—provide
accumulated expertise from knowledge
bases
 Legal advice— delivery of legal
consultation services to business has
considerable prospects
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Knowledge Dissemination
(cont.)
 Online advice and consulting (cont.)
 Financial advice— offer extensive
financial advice
 Other service online
 Healthcare
 Matchmaking
 Electronic stamps
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Disintermediation and
Reintermediation
 Change the role of agents to:
 Assists in comparison from multiple sources
 Providing total solutions by combining
services from several vendors
 Providing certifications and trusted third
party control and evaluation systems
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Disintermediation and
Reintermediation (cont.)
 New roles of electronic marketing
intermediaries
 Extend familiar physical markets to the
virtual world (e.g., search services and
electronic malls)
 Extend payment clearing functions into the
Internet (e.g., electronic cash and digital
credit card services)
 Disintermediation in B2B
 Must Reengineer marketing and sales
organizations
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