2010 Service Innovation course  Bman62052 seminar 3 Videotex And Design
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2010 Service Innovation course Bman62052 seminar 3 Videotex And Design



Videotex as a case of an information service innovation where design and other features had major impacts on success and failure in different countries

Videotex as a case of an information service innovation where design and other features had major impacts on success and failure in different countries



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2010 Service Innovation course  Bman62052 seminar 3 Videotex And Design 2010 Service Innovation course Bman62052 seminar 3 Videotex And Design Presentation Transcript

  • Service Innovation - Case Studies 1 Videotex and the Design of Services Ian Miles [email_address] 
  • This seminar:
    • Success and Failure in Information Technology- based services
    • Email and Fax
    • The Videotex case study
    • Service design and innovation
    • How to assess prospects for new services; how to design new services effectively?
  • Many IT Success Stories
    • BUSINESS: rapid uptake of microprocessor systems, office automation, etc.
    • CONSUMER: home computers, CDs, DVDs, digital mobile phones…
    • Finding whole classes of “failure” may seem difficult.
    • Additionally, some cases where “success” seems simply to be delayed
  • Trajectory of Hype Technology Trigger Peak of . Inflated .. Expectations Trough of Disillusionment Source: Gartner Group , who placed various Technologies on this Plateau of Productivity Slope of Enlightenment Time Hopes
  • Fax versus email - a Forecast of Business Communications Terminals (millions) 0.5 0.4 0.3 0.2 0.1 0 1978 79 80 81 82 83 84 85 86 87 source: Mackintosh report cited in the Economist 4/8/1979 US fax Europe fax US email text US email graphics+ Europe email text Europe email graphics+
  • Fax vs email
    • Forecast: fax would grow to low level and then decline; substituted by email which would mushroom
    • Curious differentiation text and graphics…
    • Actual trends: Fax took off dramatically; email grew at much slower rate through 1980s
    • Fax only gets substituted in later 1990s, after web supports large-scale use of internet
    eMail fax
    • Messages initially (often still) very plain text
    • Stored in “mailbox”, read on-screen or printed out
    • Computer skills, access to “terminals” & ISPs required
    • Data manipulable
    • Arrival in doubt
    • Spam, Viruses, Scams.
    • Equipment costs reduced in ’80s
    • Handwritten, typed, drawn
    • Delivered as hard copy
    • Telephone numbers, available skills
    • No new subscriber service
    • Require data re-entry
    Features of Fax versus Email More incremental to phone service Radical new service with new suppliers Familiar skills & work organisation New access to info., new functionality Both have critical mass issues – network externalities
  • Lessons
    • Forecasting is very difficult (especially about future) [Yogi Berra]
    • Functionality is valued by engineers and technicians, but means different things and is only one factor
    • Important influences related to prestige, network externalities
    • Alongside Equipment and Service Costs, Learning Costs may be huge deterrent
    • As may destabilisation of social relations and threats to status – and customs (e.g. what is a legal document)
    • Aesthetics and trust related to new media can play a major role.
  • A Case from “Prehistory”
    • A radical new consumer service (also with business markets anticipated)
    • Providing useful information and some entertainment
    • Innovators were mainly (at that time -1970s/80s) public sector firms – telecommunications “authorities”
    • Lessons about new service development and design; about marketing and use of market research
  • Videotex a.k.a. Viewdata
    • UK version – Prestel - “A world of information at your fingertips”
    cf G Thomas & I Miles 1989 Telematics in Transition Longmans [Gibson in Technology Review - Web0.1] The Videotex Revolution The Viewdata Revolution Viewdata and the Information Society
  • The features of videotex
    • Access to computers and databases for the masses (“telematique grand publique”)
    • Pioneered by PTOs – UK Sam Fedida at Martlesham Labs, invented c1972 (ideas in air from late ’60s), UK launch 1979.
    • 1970s: no home computers, no broadband  solution in UK, Germany, etc. (not France): use telephone + television sets. A terminal to connect TV set to phone system, a keyboard to communicate with the box.
    • 40x24 text characters in display (not pixels); some simple graphics: same standard and same “feel” as teletext (aka Teledata ) broadcast with TV - 1974 CEPT1 standard – teletext invented c1972 BY BBC labs, arose out of same ferment)
    • 1200 download /75 upload baud rates –  info. access
  • Prestel
    • Set-top box
    • Small keyboard
    • Simple menus
    • Request “pages” of information
    • Aimed at consumers, offices, businesses
    • Assymetric speeds
  • Prestel
    • Monthly subscription; Many
    • pages free, some charge
    • Information from major services
    • Newspapers, publishers, etc
    • Home banking
    • Person to person email – slow coming, famous hacker case in 1984 – but message boards popular
    Invention in ’70s; first public demonstration 1975; first field trial 1978 (how were results used?); launch of service 1979; forecast several million subscribers in a few years.
  • Teletext: a source of competition? Free; Broadcast services; bundled with TV (remote control taking off) & manufacturers enthused; feels “interactive” in providing access to screens of remote information.
  • The Prestel story
    • Introduced by Post/Telecomms public “authority”
    • Pilot studies not taken seriously – innovators were convinced that this was wave of future
    • Expectations of massive take up – millions – but slow growth, never much more than 100k adopters in UK
    • Many information services put material online – but TV industry was uncooperative (so problems with a major complementary asset)
    • Resistance to tying up TV and telephone? Disinterest in information content (and Teletext competition)
    • Consumer adoption low: mainly business use (esp. travel), some hobbyists (and hobbyist VTX)
    • Sold to FT, wound down in 1990s.
  • Not just a UK story: Many Other Countries introduced Videotex New service markets for PTOs Videotex: a new MASS market Support for consumer electronics/ telecomms/IT industries – and perhaps media and publishing Move into information society = better-informed, more competitive society – with advanced services (for export?)
  • Videotex adoption – not always the UK path France Germany UK 1999: France c10m; Germany - - - - and UK c0
  • Minitel try it at http://www.minitelfr.com/Uk/home/index.html
  • Minitel Design French videotex service. Terminal provided free. TV/phone not tied up. Payment hourly. Use prompted by withdrawal of phone book – critical mass – tens of millions of users by ‘90s (many purchases of superior terminals) Much scope in system to innovate and plug in private services; messagerie and minitel rose very popular, a cultural phenomenon
  • Minitel/Teletel History
    • Nora/Minc report, Plan Telematique
    • Trials from 1978-81 by PTT  discovery of importance of messaging
    • New communications legislation, political accommodation with press
    • 1982: launch; 1983: electronic directory – 1984: terminals distributed instead of ‘phone directories
    • Many service providers appeared (10k + by 1989)
    • Tax on messageries roses (how effective?)
    • British and German forecasts highly optimistic – French (lower) forecasts were exceeded!
  • Minitel “facts”
    • In the late 1990s, Minitel connections were stable at 100 million a month plus 150 million online directory inquiries, in spite of growing Internet use.
    • In 1998, Minitel generated € 832 million ($ 824 million) of revenue, of which € 521 million was channelled by France Télécom to service providers. IM note – I recall WSJ report in ‘90s saying that Minitel had cost $10bn)
    • Minitel sales in the late 1990s accounted for almost 15% of sales at France's biggest mail order companies La Redoute and Les Trois Suisses . In 2005, the most popular Minitel application was Teleroute , the online real-time freight exchange , which accounted for nearly 60% of Minitel usage.
    • In 2005 there were 351 million calls for 18.5 million hours of connection, generating € 206 million of revenue, of which € 145 million were redistributed to 2000 service providers (these numbers are declining at around 30% per year). There were still 6 million terminals owned by France Télécom, which had been left with their users in order to avoid recycling problems. The main uses were banking and financial services, which benefit from Minitel's security features, and access to professional databases. France Télécom mentions, as an example of usage, that 12 million updates to personal vitale health care cards were made through Minitel. [1]
    • Source: Wikipedia Feb 2007 See also:
    • http:// www.nationmaster.com/encyclopedia/Minitel
  • Minitel in decline
    • The web was slow to take off in France, but…
    • From the Bilan Minitel 2005
    • http://www.leskiosques.com/V3/solutions/minitel/doc/bilan_minitel_2005.pdf
  • Several US versions AT&T Sceptre videotex - terminal introduced in Miami, October 1983. Wireless keyboard, with modem attached to an ordinary TV - delivered news, weather, sports, stock reports, banking, shopping, email, etc. The Sceptre initially sold for $900 with a monthly fee of $12; the service plan was changed to $39.95 a month with free rental of the box. Marketed in about a dozen cities. Very low adoption rate. Withdrawn in 1986. http://www.cedmagic.com/history/sceptre.jpg
  • Early Competition in the US
    • Computer-telephone system-computer networking
    • E.g COMPUSERVE –
      • 1969: Compu-Serv Network: business services (time-sharing, then information access)
      • Consumer information service developed despite internal opposition: in 1978 marketed through Radio Shack, as MicroNET. Initially permitted since it used the computers during evening hours, when business use was low. Email 1978 (and to Internet 1989), chatlines 1980. Payment: hourly rate
      • Expanded to Japan, UK, Germany; c 400,000 subscribers by late ’80s…
      • Competing services included AOL (monthly subscription)
      • But all faced big problems with advent of World Wide Web on Internet, and slow to respond. Compuserve acquired by AOL late ’90s.
  • How to explain different trajectories?
    • Schnedier et al 1991:
    • Terminal design and provision
    • Systems architecture & service provision
    • Billing systems
    • Regulatory constraints & political support
  • Design Lessons
    • New learning
    • Conflict with established routines
    • Costs and uncertainties
    • Network externalities
    • Need to pilot and market research – user requirements may not match innovator view of functionalities
    • Openness to reinvention, new complementary services
    • Other lessons?
  • Conclusions
    • Take-off of Web (and Minitel) indicates that there is strong demand for new IT-based services of these sorts
    • The right services, with the right content/communication partners -on the right platforms?
    • What other lessons need to be drawn?
    • Hoe can we design service (systems)?
  • End of Presentation (some extra slides follow)
  • How to explain different trajectories? 1
    • Terminal design and provision
    Britain Adapted TV set; later set-top box, PCs – Producers were private firms Germany Adapted TV set; later “multitel”)- Producers were private firms France Mintel dedicated terminal, distributed free – produced for France Telecom
  • How to explain different trajectories? 2
    • Systems architecture & service provision
    Britain Initially closed system (external computers allowed in 1982; one update system with several central databases; private information providers with a common carrier (changes in 1983 when BT becomes IP) Germany One central database, regional sub-bases, in a hierarchical network, with interconnection to private computers (expensive and cumbersome); private information providers; supposedly equitable France Transpac (packet-switched data) network; service computers and privately owned databases networked; trigger service of e-phone book; private IPS otherwise with DGT licensing access to Kiosque biling service
  • How to explain different trajectories? 3
    • Billing systems
    Britain Subscription fee; phone charges; page-based charges for some services; charge appears on phone bill Germany Subscription fee; phone charges; page-based charges for some services; charge appears on phone bill France No subscription: charged by time using services; up to 1 euro per minute but most services much cheaper; charge appears on phone bill
  • How to explain different trajectories? 4, finally
    • Regulatory constraints & political support
    Britain Not very politicised (though some campaigning for broadband); no specific regulations Germany Highly politicised, restrictive regime France Politicised but seen as significant industrial policy and specific regulations liberal Long debate over PTT break-up and privatisation Growth of VANS market for business
  • World Wide Web NUA’s "educated guess “ as to how many are online worldwide (May 2002): World Total - 580.78 m Africa - 6.31 m Asia/Pacific - 167.86 m Europe -185.83 m Middle East - 5.12 m Canada/USA - 182.67 m Latin America - 32.99 m Compiled by: Nua Internet Surveys Number of Web Hosts 