AT&T (A) and AT&T (C)

1. AT&T (A) and AT&T (C)

2. AT&T: Case Objectives • To examine the importance of service employees to organizational success • To analyze appropriate hiring, training, and rewards for sales/service people • To understand the values and orientation of the “new workforce” • To review the implementation and use of employee and customer satisfaction surveys • To explore different sales strategies as they apply to different customer segments in a business-to-business context

3. Selling to Small vs. Large Business Markets

4. Figure 11-5Human Resource Strategies for Closing GAP 3 Hire for Service Competencies and Service Inclination Be the Preferred Employer Compete for the Best People Train for Technical and Interactive Skills Measure and Reward Strong Service Providers Hire the Right People Customer- oriented Service Delivery Develop People to Deliver Service Quality Treat Employees as Customers Retain the Best People Empower Employees Include Employees in the Company’s Vision Promote Teamwork Provide Needed Support Systems Develop Service- oriented Internal Processes Measure Internal Service Quality Provide Supportive Technology and Equipment

5. Case Conclusions • Falcone, through his newly created salesforce, has accomplished a lot: • Financial objectives have been exceeded • SBU’s are happy • Small business customers rate satisfaction with AT&T better than competitors • AT&T is once again a major player in the small business telecommunication market

6. Case Conclusions • Falcone faces some challenges internally: • Overall, sales people are not satisfied with their jobs • Employees want a greater sense of open communication • Employees want better feedback and recognition (beyond rewards for meeting financial goals) • Employees want personal and individual needs met

7. Learnings from the AT&T Cases • Selling services depends on the quality, caliber and morale of a firm’s people. • New tools need to reflect the working styles and needs of present generation services employees. • Frameworks and structures must enable, rather than impede, service employees from achieving customer satisfaction. • To effectively drive a change process, leaders must consider all factors—”hard” (results) and “soft” (how people feel)—in their criteria for success.

8. Learnings • Employee satisfaction is as important as customer satisfaction in achieving long-term competitiveness and profitability in services. • Firms have three customers: the corporation, the customer, and the employee. The paradoxes of managing all three have to be worked out in order to achieve high-quality services. • It is therefore necessary to provide empowerment and a supportive environment (“bottom up”), plus some boundaries and directives (“top down”).

9. Ernst & Young LLP/ The Quality Improvement Customers Didn’t Want

10. Ernst & Young: Case Objectives • To explore technology-delivered service in a professional consulting context • To review the new service development process, including the challenges of marketing a totally new concept such as Ernie • To explore the customer’s role and how it should be facilitated to ensure greater customer value • To examine pricing strategies for professional services • To assess the competitive positioning of an Internet-based service • To compare and contrast the use of technology by E&Y with proposed use of technology in the Quality Improvement case

11. The Quality Improvement Customers Didn’t Want:Case Objectives • To understand the challenges and tradeoffs in introducing technology-delivered service in a consumer context • To understand the customer’s role in service • To explore the limitations of customer and competitive information in aiding decision making • To review the new service development process and understand Quality Care’s approach • To compare and contrast the proposed use of technology for Quality Care with that of Ernst and Young

12. Figure 1-6 The Services Triangle and Technology Company Technology Providers Customers Source: Adapted from A. Parasuraman

13. Figure 8-2 New Service Development Process • Business Strategy Development or Review • New Service Strategy Development Front End Planning • Idea Generation Screen ideas against new service strategy • Concept Development and Evaluation Test concept with customers and employees • Business Analysis Test for profitability and feasibility • Service Development and Testing Conduct service prototype test • Market Testing Implementation Test service and other marketing-mix elements • Commercialization • Postintroduction Evaluation Source: Booz-Allen & Hamilton, 1982; Bowers, 1985; Cooper, 1993; Khurana & Rosenthal 1997.

14. Information Technology and Services - Common Goals • Improve Efficiencies/Reduce Costs • Innovation - Provide New Services • Increase Service Quality/Customer Satisfaction • Provide additional channels/access

15. Issues to Consider • How does serving one purpose influence other outcomes? • What are the costs/benefits of introducing the new technology? • Technology for technology sake is not the answer--in other words “Why are we doing this?”

16. Self-Service Technologies (SSTs) Technological interfaces that allow customers to perform entire services on their own, without direct assistance from employees

17. ATM Pay at the pump Automated airline check-in Automated hotel check-in/out Automated car rental Automated filing of legal claims Automated drivers license testing Automated betting machines Electronic blood pressure machines Various vending services (food, drink, cameras, etc.) Tax preparation software Self-scanning at retail stores Internet banking MVD auto registration on-line On-line auctions Home & car buying on-line Automated investment transactions Insurance on-line Package tracking Internet shopping (Amazon.com, Gap, E-Stamps, etc.) Internet information search Various IVR phone systems (phone banking, prescription ordering, etc.) Examples of SSTs in Use

18. Growth in On-line Transactions* 1997 Sales2001 Est. Sales Financial Services $1.2 Billion $5 Billion Entertainment $298 Million $2.7 Billion Apparel & Footwear $92 Million $514 Million Travel $654 Million $7.4 Billion PC Hardware & Software $863 Million $3.8 Billion Books & Music $156 Million $1.1 Billion Ticket Event Sales $79 Million $2 Billion Business to Business $8 Billion $183 Billion *Source: Forrester Research Inc., reported in Business Week, June 22, 1998