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Chp5 electronic commerce in service industry

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Chp5 electronic commerce in service industry

  1. 1. Electronic Commerce in Service Industry Chapter 5
  2. 2. 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.
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. Travel and Tourism: Impact on the travel industry Lower cost trips Information and Tickets at home Paperless tickets Personalized services Helping customers efficiently Travel agencies will disappear New bread of organization will appear : travel superstore , with intelligent agents
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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.
  14. 14. Cyber banking services offered Current account balance at any time Pay bills Handle your finance while traveling ATM Download bank statement
  15. 15. 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 barriers B2B Intelligent agents are employed in monitoring auctions and placing bids strategically.
  16. 16. 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
  17. 17. 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)
  18. 18. 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
  19. 19. Significant Investment in E-Learning Technologies, DL and VU E-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
  20. 20. 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 experience E-learning provides a new set of tools that add value to traditional learning modes Does not replace the classroom setting, but enhances it
  21. 21. 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
  22. 22. 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
  23. 23. Other online services E-Government E-health Matchmaking