Innovation is a destroyer of tradition; thus, it requires careful planning to ensure success. By necessity, the productivity benefits of new technology will change the nature of work. Any introduction of new technology should include employee familiarization to prepare workers for new tasks and to provide input into the technology interface design (e.g., will typing skill be required, or will employees just point and click?). For services, the impact of new technology might not be limited to the back office. It could require a change in the role that customers play in the service delivery process. Customer reaction to the new technology, determined through focus groups or interviews, also could provide input into the design to avoid future problems of acceptance (e.g., consider the need for surveillance cameras at automated teller machines).
Challenges of Adopting New Technology in Services
For services, “the process is the product” because customers participate directly in the service delivery. Therefore, the success of technological innovations, particularly for the front office, depends on customer acceptance. The impact on customers is not always limited to a loss of personal attention. Customers also might need to learn new skills (e.g., how to operate an automatic teller machine or pump gasoline), or they might have to forgo some benefit (e.g., loss of float through the use of electronic funds transfer). The contribution of customers as active participants or coproducers in the service process must be considered when making changes in the service delivery system.
As internal customers, employees also are affected by new technology and often need retraining. The example of scanning in retail stores was minor compared with the adoption of word processing by secretaries, who were used to typewriters. Back-office innovation that does not directly affect the customer may raise complications of a different sort. For example, consider the use of magnetic-ink-character recognition equipment in banking. This technological innovation did not affect the customer at all; instead, it made the “hidden” check-clearing process more productive. The full benefits, however, could not be realized until all banks agreed to imprint their checks using a universal character code. Without such an agreement, the checks of uncooperative banks would need to be sorted by hand, which would limit severely the effectiveness of this technology. When all banks in the United States finally agreed on the use of the same magnetic-ink-character imprints on checks, the check-clearing process became much more efficient. The Bank of America took a leadership role in gaining acceptance for the concept, but the self-interest of banks was a principal motivation. The volume of check processing had exceeded their manual sorting capacity. The incentive to innovate in services is hampered, however, because many ideas cannot be patented. One example is the idea of self-serve retailing. Much of the potential for technological and organizational progress is in this area. The prospective rewards for innovations are diminished, however, because the innovations may be imitated freely and implemented quickly by the competition.
Readiness to Embrace New Technology
Technology readiness refers to a person’s propensity to embrace and use new technologies for accomplishing goals in his/herlife at home or at work. Research on people’s reactions to technology identified eight technology-related paradoxes: control/ chaos, freedom/enslavement, new/obsolete, competence/incompetence, efficiency/inefficiency, fulfills/creates needs, assimilation/ isolation, and engaging/disengaging. These paradoxes imply that technology may trigger both positive and negative feelings. For example, the paradox competence/incompetence can facilitate feelings of intelligence and efficacy, or lead to feelings of ignorance and ineptitude.
The implications for managers introducing
new technology are two-fold. First, what is the overall level of readiness of the customer base affected by the new technology-based service? Once this level of readiness is assessed, the extent and appropriate technology to implement, the pace of implementation, and support needed to assist customers will be realized. Second, understanding the technology readiness of employees is important for making the right choices in terms of designing, implementing, and managing the employee interface. The issue of technology readiness is especially important for contact employees to whom customers may turn for assistance when problems arise. Employees who rate high on both interpersonal skills and technology readiness are likely to be good candidates for tech-support roles.
The Case of Radio Frequency Identification 8
Radio frequency identification (RFID) is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. The tag consists of an integrated circuit on a silicon chip with an antenna. A reader emits a radio signal to activate the tag, read the stored data, and in some cases write data as well. For monitoring inventory in supply chains, the tags are attached to shipping pallets but could be incorporated into a product and implanted in an animal or human being. RFID technology is similar to bar codes, but conveys much more information and does not require line-of-sight reading.
Today airlines, for example, use barcode readers on baggage belts, but the readers miss a high percentage of the tagged luggage. A hand-held scanner works better but slows loading. Because a passive RFID tag can be read up to a few meters, bags could be identified as they pass a baggage-belt reader and luggage could be sorted and routed to the correct flight automatically. Airlines plan worldwide deployment when RFID readers and tags become affordable. In 2005, the average cost of a single tag ranged from about 10 cents to 20 cents, with a typical reader going for about $1,000. RFID tags currently are used in several service industry applications:
For services, “the process is the product” because customers participate directly in the service delivery. Therefore, the success of technological innovations, particularly for the front office, depends on customer acceptance. The impact on customers is not always limited to a loss of personal attention. Customers also might need to learn new skills (e.g., how to operate an automatic teller machine or pump gasoline), or they might have to forgo some benefit (e.g., loss of float through the use of electronic funds transfer). The contribution of customers as active participants or coproducers in the service process must be considered when making changes in the service delivery system.
As internal customers, employees also are affected by new technology and often need retraining. The example of scanning in retail stores was minor compared with the adoption of word processing by secretaries, who were used to typewriters. Back-office innovation that does not directly affect the customer may raise complications of a different sort. For example, consider the use of magnetic-ink-character recognition equipment in banking. This technological innovation did not affect the customer at all; instead, it made the “hidden” check-clearing process more productive. The full benefits, however, could not be realized until all banks agreed to imprint their checks using a universal character code. Without such an agreement, the checks of uncooperative banks would need to be sorted by hand, which would limit severely the effectiveness of this technology. When all banks in the United States finally agreed on the use of the same magnetic-ink-character imprints on checks, the check-clearing process became much more efficient. The Bank of America took a leadership role in gaining acceptance for the concept, but the self-interest of banks was a principal motivation. The volume of check processing had exceeded their manual sorting capacity. The incentive to innovate in services is hampered, however, because many ideas cannot be patented. One example is the idea of self-serve retailing. Much of the potential for technological and organizational progress is in this area. The prospective rewards for innovations are diminished, however, because the innovations may be imitated freely and implemented quickly by the competition.
Readiness to Embrace New Technology
Technology readiness refers to a person’s propensity to embrace and use new technologies for accomplishing goals in his/herlife at home or at work. Research on people’s reactions to technology identified eight technology-related paradoxes: control/ chaos, freedom/enslavement, new/obsolete, competence/incompetence, efficiency/inefficiency, fulfills/creates needs, assimilation/ isolation, and engaging/disengaging. These paradoxes imply that technology may trigger both positive and negative feelings. For example, the paradox competence/incompetence can facilitate feelings of intelligence and efficacy, or lead to feelings of ignorance and ineptitude.
The implications for managers introducing
new technology are two-fold. First, what is the overall level of readiness of the customer base affected by the new technology-based service? Once this level of readiness is assessed, the extent and appropriate technology to implement, the pace of implementation, and support needed to assist customers will be realized. Second, understanding the technology readiness of employees is important for making the right choices in terms of designing, implementing, and managing the employee interface. The issue of technology readiness is especially important for contact employees to whom customers may turn for assistance when problems arise. Employees who rate high on both interpersonal skills and technology readiness are likely to be good candidates for tech-support roles.
The Case of Radio Frequency Identification 8
Radio frequency identification (RFID) is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. The tag consists of an integrated circuit on a silicon chip with an antenna. A reader emits a radio signal to activate the tag, read the stored data, and in some cases write data as well. For monitoring inventory in supply chains, the tags are attached to shipping pallets but could be incorporated into a product and implanted in an animal or human being. RFID technology is similar to bar codes, but conveys much more information and does not require line-of-sight reading.
Today airlines, for example, use barcode readers on baggage belts, but the readers miss a high percentage of the tagged luggage. A hand-held scanner works better but slows loading. Because a passive RFID tag can be read up to a few meters, bags could be identified as they pass a baggage-belt reader and luggage could be sorted and routed to the correct flight automatically. Airlines plan worldwide deployment when RFID readers and tags become affordable. In 2005, the average cost of a single tag ranged from about 10 cents to 20 cents, with a typical reader going for about $1,000. RFID tags currently are used in several service industry applications:
- Passports. The first RFID passport was issued by Malaysia in 1998.
- Transport payments. RFID passes were introduced in Paris in 1995 and are now usedthrough Europe.
- Human implants. Night clubs in Barcelona and Rotterdam use an implanted chip to identify their VIP customers, who then use it to pay for drinks.
- Libraries. RFID is replacing barcodes on library items. Patient identification. Implanted RFID tags help to avoid mistakes
No comments:
Post a Comment