The document discusses various online services in the service industry that have grown rapidly with electronic commerce. It describes how ordering journals, broker services, travel/tourism, employment placement, real estate, stock trading, banking, auctions, publishing, and e-learning can now be conducted largely or fully online. This allows for considerable reductions in costs, greater convenience, and more access to information compared to traditional offline methods.

1. Electronic Commerce in
Service Industry
Chapter 5

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Cyber banking services offered
Current account balance at any time
Pay bills
Handle your finance while traveling
ATM
Download bank statement

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. 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. 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. 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. 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. 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. 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. 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. Other online services
E-Government
E-health
Matchmaking