Chapter 5: EC in Service Industries ppsx

© Prentice Hall, 2000 1

Chapter 5

EC in Service Industries

© Prentice Hall, 2000 2

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

© Prentice Hall, 2000 3

❚ 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

EDI Rowe.Com System

Order +

Payment

EDI,

Internet

Order

Browsing

EDI Payments

Fee

$5 Fee

Payment

Buyer Intermediary Seller