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act 222 Competitive Role of Information in Services 223 ? Create of barriers to entry – Reservation systems ? United Airline, SABRE – Frequent User Club ? United Airline, reward free trips, Create brand loyalty – Switching cost ? Create a cost in the form of inconvenience if switched ? Medical supplies pany provides order entry terminal for hospitals ? Revenue generation – Yield management ? System to improve the revenue of timeperishable resources ? Airlines make adjustment on price and allocation on unsold seats – Supersaver – Full fare ? Marriott hotels – Point of sale ? VideOcart of Walmart, China – Display items on sale as shopping cart pass ? Order of restaurants customers – Direct link to kitchen and cashier – Expert systems ? Otis Elevator pany – Data on the behavior of its elevator over the years 187。Quick diagnosis, less maintenance staff ? Database asset – Selling information ? Maintenance records of appliance can be sold to manufacturers ? Credit cards billing records can be sold to retailers – Developing service ? Study members characteristics – Single, bee married, with children – Senior (cruise) – Lifestyle relationship – Micromarketing ? American Express can tell when their member get married – Analyze their customer’s changing spending pattern ? Walmart’s shopping cart analysis – Beers and Diaper ? Productivity enhancement Retailer can make better use of shelves space by matching displaced products – Inventory status ? The daily updates of sales, manufacturing and distribution keep fresh products moving through the system – Data Envelopment Analysis ? A linear programming can optimize multiple inputs and multiple outputs Exploiting the Virtual Value Chain Production Distribution Retailing Customer Physical Value Chain Apply the generic valueadding steps of the information world: Gather Organize Select Synthesize Distribute to each physical activity to create virtual value. Virtual Value Chain New New New New Processes Knowledge Products Relationships (Stage 1) (Stage 2) (Stage 3) (Stage 4) 230 eCommerce Implementation The Virtual Value Chain ? Marketplace vs Marketspace ? Creating New Markets Using Information (Gather, Organize, Select, Synthesize, and Distribute) Four Stage Evolution ? 1st Stage (New Processes): See physical operations more effecti