Disintermediation - Pay-As-You-Go Subscription strive to attract cl...

Business Models Advertising Affiliate Brokerage Crowdsourcing Disintermediation Franchise Fremium Low-Touch (Nor Frills) Pay-As-You-Go Subscription strive to attract clients in the hopes of luring them into long-time, loyal patrons • offering product that requires ongoing payment, usually in return for fixed duration of benefit

Example: Software, box delivery, Spotify, Tinder

attract customers by introducing them to basic, limited-scope products • ompany attempts to convert them to more premium, advance product that requires payment

Example: LinkedIn/ LInkedIn Premium, Tinder

based on marketing and broad reach of specific entity or person's platform • Companies pay entity to promote good, and that entity often receives compensation in exchange for their promotion Examples: Social Media Influencer, Tinderleverages existing business plans to expand and reproduce company at different location • work with incoming franchisees to finance business, promote new location, and oversee operations • receives percentage of earnings from franchisee

Example: Mc Donalds

connects buyers and sellers without directly selling good themselves • receive percentage of amount paid when deal is finalised

Example: Real Estate

amount charged depends on how much of product or service was used • may charge fixed fee for offering service in addition to amount that changes each month based on what was consumed

Example: Utility Companies

opening tasks of issues to large group in order to receive their input for operation • company is going to employ their knowledge to benefit your business • allows companies to save time and money while tapping into people with different skills or thoughts from all over world

Example: Graphic Designers

revenue generation strategy supported by sale of advertising • use of paid advertisements to promote products or services

Example: Newspaper, Television, Google,

Tinder Removal of intermediaries/ middlemen • consumer buy directly from wholesaler

• Purpose: cut cost, speed up delivery

Example: booking directly via airline

minimal sales-to-customer interaction between first contact to conversion • automation and digital sales

Example: eCommerce, Amazon 1 / 3

Chapter 1 - What is Service?‘IHIP’ Characterisitcs • not unique to services (as opposed to physical products • Technology had significant effect on application and limitations Service Operations Management (SOM) Transforming set of inputs into outputs • resources and processes are vital ingredients • OM how to manage this • Importance of customer • OM reflects both operations and customer perspective + overlap

•Customer Perspective: service

outcomes = results of being processed and having their state changed by experience

• Main outcomes: products, benefits,

emotions, judgments and intentions

• core of most services: where operations

and customer perspective meet > lead to concepts of ‘co-production’ and ‘co-creation’ = to indicate circumstances when customer collaborate with service operation to produce/ create value 2 / 3

Service Operations Managers Responsibilities Control of resources ad processes that deliver value • framing services operations • Understanding service people • Delivering service • Improving service operations Challenges of SOM • balancing operations and custom er perspective • Managing multiple customer groups • managing tactically and strategically Importance of SOM • managing design and delivery of services • managing most of organisation’s resources = costs and investments = significant impact on ability of organisation to innovate and improve its performance

• / 3