E-services: operating strategy - a case study and a method for analyzing operational benefits

The Internet's influence in creating e-services has been revolutionary for providers and their customers. Unfortunately, there has been a wide gap between inspiring applications of the Internet that help increase service customization while maintaining or even improving delivery efficiency, and downright flops in which companies that have made bold promises have failed to deliver on even a portion of their pledges. This paper provides an examination of e-services utilizing three approaches in order to provide guidance on how to fly rather than flop. First, we develop a model of the e-service customer retention, Second, we offer a case study of Sothebys.com to illustrate how a well-known, but not typically technologically adventurous, company can utilize e-services to expand its offerings and streamline its services. Finally, we offer a profiling technique for analyzing the benefits and challenges of e-services for particular industries. (C) 2002 Elsevier Science B.V. All rights reserved.