Web 2.0 Contributions To Multi-Channel Management

Web 2.0 contributions to multi-channel managementAn exploratory study of the travel, retail and healthcare industries

Sjoerd Blauw

2Web 2.0 contributions to multi-channel management

1. 2. 3.- Web 2.0

- Multi-channel management

- Problem Area

- Objective

Introduction Analysis Conclusions


Web 2.0

Social

TechnicalBusiness

1. In

troduct

ion

Adapted from Stocker, Dosinger et al, 2007

Web 2.0


Multi-Channel Management1. In

troduct

ion

Management

Coordination

Integration

Facilitation


Pre-Sales, Sales, After Sales1. In

troduct

ion

Bhattacherjee, 2001; Simons, 2006


Problem Area

• Technology push

• Interactivity of Web 2.0

• Literature gap

1. In

troduct

ion


Main Research Question

How is Web 2.0 able to contribute to multi-channel management

1. In

troduct

ion

for business to consumer interaction to companies in the travel, retail and healthcare industries?


Objectives

• Web 2.0 description

• Asses contributions of Web 2.0 to multi-channel management

• Give recommendations

1. In

troduct

ion


1. 2. 3.- Methodology

- Findings

- Web 2.0 implementation recommendations


- Web 2.0

- Multi-channel management

- Problem Area

- Objective


Methodology

• Case study strategy

1. Selecting cases

2. Crafting instruments and protocols

3. Entering the field

4. Data analysis

5. Research closure

2. A

naly

sis

Eisenhardt, 1989, p.533


Findings: Pre-Sales2. A

naly

sis

• Additional channels



naly

sis

• Technical implementations



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sis

• Business aspect: Social networking


Findings: Sales2. A

naly

sis

• Served by traditional channels


Findings: After Sales2. A

naly

sis

• Social networks and Micro blogging

• “My Pages”


Recommendations (I)2. A

naly

sis


Recommendations (II)2. A

naly

sis


1. 2. 3.- Contributions

- Conclusions


- Methodology

- Findings

- Web 2.0 implementation recommendations


Scientific Contributions (I)3. C

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ons

Figure from 2006


Scientific Contributions (II)

• The three phases of the channel functions developed by Simons (2006) are not a linear process but a cycle

3. C

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ons

Pre-Sales Sales After Sales


Pre-Sales

SalesAfter Sales

Scientific Contributions (II)

• The three phases of the channel functions developed by Simons (2006) are not a linear process but a cycle

3. C

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ons


Limitations

• Focus on three industries• Focus on B2C interaction• Limited lifespan research findings• Convenient sample• Customer perspective

3. C

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Conclusions3. C

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ons

Yes

Interactivity

Publish, Micro blogging, Social networking

Additional channels Decision support

• When?

• How?

• Which tools?

• Is Web 2.0 contributing?

Pre-Sale

s



Backup Slides


Interactivity models

Simons 2007, p.32

CP

CC

C

PCP

CC

C

C

C

CC

Uni-directionalMass communication

InteractiveMass customization

CommunityMulti-lateral

P: Producer C: Customer Exchange

Hummel & Lechner, 2002, p. 1


Channel FunctionsChannel function Customer requirements

Pre-Sales1. Need identification Obtain non-intrusive suggestions to help me understand & fulfil

potential needs2. Information provisioning Find out whether a product or service is good for me3. Decision support Obtain help in making choices that are right for me4. Generating trust Check if supplier, offer and processes are trustworthy5. Negotiation Fit offer to my wishes

Sales6. Ordering Purchase & initiate transfer of possession7. Payment Pay conveniently and safely8. Order processing Process order ‘invisibly’9. Pick, pack, ship & delivery Obtain goods timely and easily10. Transferring possession Obtain possession11. Inventory management Availability of products/service within easy reach

After-Sales12. Coordinate tasks, track & trace, order status

Co-ordinate tasks and ensure effectiveness

13. Notification Support my tasks or help seize opportunities14. Calamity support and distress relief Have urgent/important problems resolved & damage repaired15. After sales usage advice and support Resolve questions and problems, increase usage benefits

16. Relationship building/maintenance Increase ordering efficiency and effectiveness by better knowing suppliers

Simons 2007, p.32


Channel Contact Types

Simons 2007, p.32

Transaction

Distribution

Interaction

Registration

Consultation

Allocution

adapted from Ebbers, Pieterson et al. (2007) and Pieterson, Teerling et al. (2007)


MCM definition

Simons 2007, p.32

adapted from Cespedes (1988), Schulze(2000), Stone, Hobbs et al. (2002), Neslin, Grewal et al.(2006), Nieuwehuis & Kan (2006), Sfirtsis (2006) and Rosenbloom (2007)

Multi-channel management is the coordination, integration and usage of multiple channels using different media, which reinforce each other, to create value for the customer and acquire, retain and develop customers which leads to optimal company returns.


Web 2.0 Definition

Simons 2007, p.32

adapted from Stocker, Dösinger et al. (2007) and Musser & O’Reilly (2007)

Web 2.0 is defined as a transformation of the social and technological aspects into business, leading to a redesign of existing business processes or to an evolution of new business models characterized by user participation, openness, and network effects.


Industry – NACE – Company list

Simons 2007, p.32

Industry NACE classification CasesTravel H49.1 - Passenger rail transport

H49.3 - Other passenger land transportH50.1 - Sea and coastal passenger water transport Carnival Cruises

H50.3 - Inland passenger water transportH51.1 - Passenger air transport Transavia, JetBlue, KLMI55 - Accommodation EuroRelais, Sheratan hotelsN79 - Travel agency, tour operator and other reservation service and related activities

Tripadvisor, Sunweb, Orbitz, WikiTravel

Retail G47 - Retail trade, except of motor vehicles and motorcycles

Amazone, Boll.com, Dell, MyCom, CompUSA, kieskeurig, Mydeco,Wehkamp, shirtcity, iBood

Healthcare Q86 - Human health activities Ziekenhuis.nl, NPCF, lopus patients Group

Q87 - Residential care activitiesQ88 - Social work activities without accommodationK65 - Insurance, reinsurance and pension funding, except compulsory social security

Centraal beheer achmea, Menzis

Other Patientslikeme, dokterdokter, google health


Decision Rules – Business Aspects

Simons 2007, p.32

Business aspect types Decision RuleCommunity – Social networking

The channel is a social networking community. The goal of the community is connecting individuals.

Community – Knowledge sharing

The channel is a community with the specific goal to share knowledge between the company and its customers.

Community – Interests groups The channel is a community focused at special interests groups.Platform / Tools – Aggregation of services

The channel is a platform or tool used to aggregate multiple services into a new application.

Platform / Tools – Data mash-ups

The channel is a platform or tool used to aggregate multiple data sources into a new application.

Platform / Tools – Tracking and filtering content

The channel is a platform or tool used to track and filter large quantities of content.

Online collaboration – Replicate office software

The channel is used as online office software. I.e. an online word processor.

Online collaboration – Web based application

The channel is used as online application. I.e. an online bookkeeping application.

Online collaboration – Virtual workflow

The channel is used to manage a (virtual) workflow processes. I.e. the process of approval of a investment.

Decision support The channel is used by the customer to make a decision what product or service to buy.


Findings Table2. A

naly

sis

Travel Retail Healthcare

Pre-Sales

Sales

After Sales

Web 2.0 Usage

Bhattacherjee, 2001’ Simons, 2007 p.32


Channel function Travel Retail Health

Pre-Sales

1. Need identification

2. Information provisioning

3. Decision support

4. Generating trust

5. Negotiation

Twitter

Publishing

Social networks

Review & Rating Review & Rating

Fun

Awareness

Twitter

Publishing

Social networks

Social networks



Sales

6. Ordering

7. Payment

8. Order processing

9. Pick, pack, ship & delivery

10. Transferring possession

11. Inventory management

No Web 2.0 applications used

all sales steps are performed using traditional channels



After-Sales

12. Coordinate tasks, track & trace, order status

13. Notification

14. Calamity support and distress relief

15. After sales usage advice and support

16. Relationship building/maintenance

“My Pages” / Newsletters

“My Pages”

Twitter

Telephone

Social networks

Chat

Social networks

Various tools


Recommendations Complete

1. Fun channels2. Web 2.0 in sales phase3. Chat channels for calamity support and distress

relief4. Integration of social networks5. Social network in decision support step in retail

industry6. Micro blogging healthcare industry

2. A

naly

sis


Scientific Contributions Complete

1. Turning over the control of the channel to the customer.2. the degree of change is much higher compared to offline

media3. Many partial Web 2.0 implementations are used.4. The barrier between offline and online channels is

diminishing5. Web 2.0 is appears that Web 2.0 is used as an extra feature

besides traditional forms of communication6. The three phases of the channel functions developed by

Simons (2006) are not a linear process but a cycle7. The data protocol developed and used in this research can

be reused in future research

3. C

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