Page 149 - DMGT522_SERVICES MANAGEMENT

Services Management Ashwani Panesar, Lovely Professional University

Notes Unit 7: Delivering Services on the Web

CONTENTS
Objectives
Introduction
7.1 Delivering Services on the Web
7.2 Role of Internet in Services
7.3 Role of Technology in Service Marketing
7.4 Cost Drivers
7.5 Internet Service Design
7.6 Summary
7.7 Keywords
7.8 Review Questions
7.9 Further Readings
Objectives

After studying this unit, you will be able to:
Elaborate the delivering of services on the web
Explain the role of internet in Services
Discuss the various cost drivers
Describe the internet service design
Introduction

During the past two decades the world’s high technology business community has witnessed an
unprecedented high growth and an overwhelming optimism, which seems to have turned into
either stagnation or decay. Markets have been growing at double-digit annual growth rates in
especially two areas: information and communications technology (ICT) and biotechnology.
ICT received a turbo-boost through the proliferation of the World Wide Web starting in 1989
but reaching ultrahigh speed around the mid 1990’s with the emergence of electronic commerce
(EC) and the resulting avalanche of small start-up IT companies pursuing success and wealth.
Later, biotechnology started in 1980 with the first initial public offering (IPO) by Genentech and
experienced its first wave of success during the early 1980’s, only to meet its first decline towards
the end of the decade and then to jump-start the growth trend again by the mid-1990s. Today,
both sectors are in trouble again, which is due to an overestimation of what technology can
accomplish by itself and a fundamental underestimation and ignorance of market dynamics
including customer needs, wants, fears and expectations.

7.1 Delivering Services on the Web

Technology refers to the means by which a firm transforms inputs (labour, knowledge, capital,
raw materials) into outputs (goods, ideas or services). It means knowledge that can be applied.
Thus, a bank has its technology for converting capital, ideas and labor into many banking
services; Google the search engine uses its technology to provide search and access services for
Internet customers, much faster and more effectively than its competitors.

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