Adopting Self-Service Technology to Do More with Less. Dr. Toni Hilton: Westminster Business School, University of Westminster, London, England

What is pay at the pump?
How can a Web - based SST increase customer numbers without the need to increase the number of operating sites?
What is one option that a customer can use when using SST?

Transcription

1 Adopting Self-Service Technology to Do More with Less Dr. Toni Hilton: Westminster Business School, University of Westminster, London, England Dr. Tim Hughes, Dr. Ed Little & Dr. Ebi Marandi: Bristol Business School, University of the West of England Abstract Using the Service-Dominant Logic framework we consider the adoption of Self-Service Technologies (SST) by organizations seeking to do more with less. Qualitative research among UK customers suggests the need to clarify the resources (operant and operand) that both resource integrators (customer and organization) contribute and the processes that integrate the tasks performed by customers and employees to co-create value. Organizations need to manage customers as partial employees: identify the co-production tasks and ensure that customers have the requisite knowledge and skills to perform those tasks. The new employee roles also require managerial consideration as they replace service delivery tasks with self-service recovery tasks. Key words: Self-service Technology; Operant Resources; Co-production; Service-dominant logic 1

2 Adopting Self-Service Technology to Do More with Less Introduction As we emerge from the global recession there is much talk about the need for organizations to do more with less. For a discussion around achieving more with less to be useful it requires a practical context, to demonstrate how doing more with less might be achieved. As academics we expect a theory, notion or conceptual framework to provide rigour and ensure a contribution to knowledge when addressing key questions such as, more of what ; less of what and from who s perspective: customers or service providers? We use the discourse of service-dominant logic to gain insight into the practical context of self-service technology. Many might say that organizations adopt SST precisely to achieve more with less as customers interact with machines, undertaking tasks previously performed by service employees. SST transfers the active performance role from the service employee to the customer and therefore has the potential to reduce the organization s employee costs. The Automatic Teller Machine (ATM) is a well established SST. More recent SST introductions include self-serve checkouts in supermarkets; self check-in at airports and self-serve petrol pumps. However, it is the internet and the commercial development of the world-wide-web that have really accelerated the trend towards self-service. Now it is possible for organizations to dramatically increase the number of customers that can avail themselves of their service provision without a commensurate increase in staff operating costs and/or operating sites. Service dominant logic (SDL) is concerned with how resource integrators co-create value and considers the total resources employed, by all parties, to achieve that value. We outline findings from a qualitative research study, among UK customers, which identifies the managerial issues associated with value co-creation and the integration of customer resources with those of the organization when customers use SST. Service-Dominant Logic and Self Service Service-dominant logic (Vargo and Lusch, 2004) has attracted a widespread and generally favourable response from marketing academics, prompting a number of refinements, developments and amendments (Vargo and Lusch 2008). Three aspects of SDL provide the theoretical framework for this paper: value co-creation, co-production and the integration of resources. Co-creation and co-production have distinct meanings. Co-creation relates to value perceptions. Co-production is a component of co-creation (Lusch and Vargo, 2008) that relates to the specific tasks undertaken by customers prior to or during usage. Organizations can not deliver value to customers. They provide value offerings which customers gain value from as they use, consume or experience products and services. Therefore the customer is always a co-creator but co-produces to a varying degree. In using SST the degree of customer co-production increases through the transfer of task-performance from employee to customer, transforming the customer role into that of a partial employee (Baron et al, 2009, p. 49, Bitner et al, 1997). SDL focuses on the integration of the resources used to co-create value distinguishing two types of resource. Operand resources, such as raw materials, are resources on which an operation or act is performed to produce an effect (Vargo and Lusch 2004, p. 2). This type 2

3 of resource is usually tangible, inert and passive, requiring input from an active agent in order to realise its value potential (Arnould, Price and Malshe 2006, Lusch, Vargo and Wessels, 2008). In contrast, operant resources are those that are employed to act on operand resources and on other operant resources in order to create value. These are usually intangible resources such as knowledge, skills and labour (Vargo and Lusch, 2004; Arnould, Price and Malshe, 2006). SST meets the definition of an operand resource because it requires the application of customer operant resources to create value. It is the provision of an operand resource (SST) that enables organisations to replace the operant resources of their employees with the, more widely availably and less costly, operant resource of their customers. We now consider the co-creation role of both resource integrators, customers and organizations, when providing and using SST. Organizational Perspective Doing more with less suggests a goal of greater productivity and efficiency of operations. This might involve growing the business revenue/profit while maintaining current costs or maintaining the current level of business while reducing the costs. In this context organizations might introduce SST to reduce both their operand (eg: operating sites) and their operant resources (eg: employee inputs). Alternatively SST used within operating sites can reduce employee resources engaged in direct staff-customer interaction as in self-check outs and pay at the pump options. Web-based SST can also dramatically increase customer numbers without the need to increase the number of operating sites, as in on-line banking. While reducing, or significantly expanding service provision without increasing, employee numbers may seem attractive to organizations that goal is unlikely to be easily or simply achieved. Tasks still need to be performed, by customers if not employees. Thus the operant resource input moves from that which the organization directly manages (employees) to that which it does not (customers). Furthermore, SST transforms the role of the employee. While successful SST transactions will not involve employees, unsuccessful ones will require employees to adopt new self-service recovery roles. Successful adoption of SST will require effective management of customers and employees in these new roles. Customer Perspective: Research Findings Here we report findings from 24 qualitative interviews that took place in England during Four researchers participated in the study to ensure maximum coverage of gender, age and socio-economic groups (see Table 1). Table 1: Table of respondents AGE Socio-economic Group AB M, F F M,F M,F,M,F C1C2 M,M, F,F, F, F F M, M D F F, M, M F F A critical realist approach was taken as is appropriate when considering a complex phenomenon where different views exist (Van De Ven, 2007). This well-established research paradigm (Guba and Lincoln, 1994) allows for the independent existence of the social dimension (Magee, 1985), and accepts imperfections of understanding in a complicated world 3

4 (Tsoukas, 1989; Godfrey and Hill, 1995). Within this paradigm, in-depth interviewing is considered to be a very suitable method for exploring a social phenomenon (Healy and Perry, 2000). The data collection, coding, sorting and analysis were carefully controlled (Miles and Huberman, 1994) throughout. The interviews were coordinated and conducted in accordance with research protocols and processes, agreed among the research team, to ensure dependable and confirmable findings (Lincoln and Guba, 1985). A semi-structured interview guide was used in conducting the interviews, as recommended for obtaining information in some depth (Easterby-Smith et al. 1991). The guide was designed to encourage the interviewees to talk about their experience in using or failing to use SST, while ensuring that each interview covered common ground, relating to the research objectives. All interviews were conducted face-to-face, recorded and transcribed. Analysis of the interviews was facilitated through the use of NVIVO software. The authors jointly coded an initial sample of the interviews to gain a common understanding of the themes and, upon completion of the exercise, all reviewed a print out showing all the coded material under each theme to ensure consistency. The key findings related to value, operant and operand resources of both parties and how the resources of customers and organizations are integrated when using SST are reported below. Value Respondents provided examples where their use of SST delivered more value including a faster, more convenient service that provided them with more timely information and control: as far as the doctor s receptionist is concerned it does actually save time because when you went to say you were available for your appointment the doctor s receptionist was juggling with making appointments, and people phoning up, and sometimes you d stand at the window for 5 or 10 minutes waiting for her to finish by which time your appointment time had probably elapsed. Female AB 65+ It [on-line banking] makes you to know when you get paid. I don t have to wait for the bank statement now. I go on line straight away and see the transaction. Male D like the car tax as they are linked in to find out whether you are insured or not, and that s the way it should go. I just renewed my driving licence. They used my passport details to pick up my picture. I thought that was very good. Their ability to link up systems made it very simple to do on-line. I didn t have to get a new picture done. Male AB 65+ Although cost-saving was not widely reported, it was the key benefit when using on-line retailers to purchase a known item when not seeking a shopping experience. Another benefit was accessing services from home without the need to suffer the weather or to buy items that cannot be obtained at local stores. There was support for SST if staff are used more effectively to support customers: if it gives them time to do more important things, like the doctor s receptionist, then it s fair enough. If it s simply cutting down on staff then I m not so certain that it s a good thing, Female AB 65+ Perhaps the supermarket check-out if they don t have them there perhaps they can put them counting stock or whatever using in different areas of the store or perhaps helping out in customer services improving customer service in that way Female AB

5 However, the ability to achieve the best price or provide tailored information was questioned: I wonder whether the ticket machine, there must be a button to press for granny travel card but when I ask at the kiosk for a London travel card with a granny ticket please, they know what I want. When I went up yesterday, even though there was a board with the train details, I still asked and he was able to tell me that there had been a delay and there was one waiting at platform 1 sitting there. Obviously the ticket machine wasn t going to tell me. Female C1C2 65+ The need for customers to perform service tasks was also raised: If I wanted to swipe food across a thing I d work in a supermarket. I think it s a bit irritating to do that yourself. Just like, I wouldn t want to clean my own hotel room. It s the same sort of principle. I just don t think I should have to check-out my own food. Female AB Operant Resources: Customers and Organizations Customers bring a range of operant resources to the use of SST which we have categorised as: cognitive, physical and relational. Cognitive resources include familiarity with computers and technology generally to the ease of being able to access and navigate the SST on return visits as well as finding it easy to learn during the first use. Customers draw on a range of people (relational resources) to assist them in finding out about and using SST: No, I ve only just started because one of my friends show me the website in the past two months Male D SST design needs to take accountof a diverse range of customer physical resources: I m very concerned about the increasing encroachment of this as people age, perhaps because I m reaching a certain age very soon and my eyesight is already poor and so, if I don t have my glasses and there are very small appliances like [my mobile phone]. Small computer screens and as I get less dextrous with my fingers it s going to be very difficult for me to deal with this. Female AB Resource Integration Process Does SST enable organizations to reduce staff by transfering tasks from employees to customers? Respondents frequently mention the need for staff assistance, particularly when using supermarket self-check-outs, beyond the initial learning process. SST may have created an additional employee role of assisting self-scanners and moved employee resource from one role to another within the SST-driven resource integration process. Yes, there s a sort of line of people looking around for guidance so it does seem to be a pretty universal thing. Nobody seems to be able to work out how to use it. If all your items have a bar code and you didn t have a bag for life it would be relatively simple to do, manageable, but obviously that s quite often not the case. Lots of people buy loose fruit and things that don t have a barcode in which case there is a problem. Most people nowadays use a bag for life too so, most people do seem to have difficulties. And also, people want to buy things from behind the counter like cigarettes and alcohol so obviously that s tricky too. Oh yeah, I ve bought wine too and when you scan a bottle of wine it says you have to be 18 so the 5

6 assistant has to come over and verify my id as well you can t do your shopping by yourself really Female AB Several respondents required assistance with on-line services which led to frustrating telephone support queuing systems or the abandonment of the on-line service. SST may enable organizations to eliminate the operant resources of their employees when all goes well, but when the SST fails, for whatever reason, the traditional service delivery employee roles transform into self-service recovery roles. Management Challenges Building upon our findings, we now consider the management challenges associated with value and the need to integrate customer resources with those of the organization. SST must provide outcomes that customers value and consider commensurate with their co-production role. This might involve freeing up staff to perform other tasks that customers perceive to be more valuable. Using SST to check into the GP seems acceptable if patients receive enhanced service in other areas. Alternatively SSTs can provide more value that becomes achievable as customers increase their co-production roles. On-line banking is an exemplar of this approach. Seeing your GP at the appointed time also provides value. Organizations adopting SST will need to design the SST to accommodate diversity in physical operant resources available to customers, such as eyesight and dexterity; cognitive resources, such as familiarity with technology, and material resources including computer/broadband access, credit cards and bank accounts. The integration process requires support for two resource integrator roles: customer and organization. SST changes the customer facing employee role and additional employee roles are required to train and provide on-going support to customers. SST has limitations which effectively result in customer perceived SST failure. Even trained customers using selfscanning machines need employees to access employee vested knowledge and authorities. So, while successful SST transactions may well reduce employee involvement, failures require employee intervention. Such interventions require employees to perform self-service recovery tasks and not traditional service delivery tasks. This new role requires different aptitudes, knowledge and skills: a whole new set of operant resources that organizations will need to manage. SST transforms the customer role into an active resource to be managed as part of the resource integration process. Employees require induction, training, development and retention strategies. Every time changes are made to internal systems, employees require communication and, potentially, retraining. Customers using SST become partial employees but will require managing in different ways than employees. Conclusion SST has the potential to deliver more revenue/profits while utilising fewer staff/operating sites or to increase customer numbers without the commensurate additional expense of staff and operating sites. To achieve this, organizations should determine and manage the value to be co-created with, and perceived by, their customers; the resources (operant and operand) that both resource integrators (customers and organization) contribute and the integration process. They need to manage customers as partial employees identifying the tasks to be performed and ensuring that customers have, or can gain, the requisite knowledge and skills (operant resources) to perform those tasks. Employee roles and the consequential operant resources also need careful management to support SST-driven resource integration 6

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