Benefits and disadvantages of e-Services
21.10.2014 Blog written by Juha Palmgren and Marko Vuorio
General aspects of e-Services
The concept of e-Services can be considered as taking care of different kinds of a transactions, businesses and issues between various instances of organizations such as banks, commercial, authorities and commercial services.
Transactions executed digitally or, in other words, electrically, differ a lot from traditional forms of similar services. Traditionally, you have got a service face to face from a human clerk over a service desk. One very traditional form is communicating via traditional mail by writing letters. Another form that has preserved until now is telephone service such as help desks or call centers. Generally speaking, an electronic transaction requires some kind of a digitally operated terminal for the user.
Benefits of e-Transactions
You can easily find several points that speak for e-Services
From a customer´s point of view the following will highlight
- The image of a company that provides services over the net. If the service site is properly prepared you can provide an impression of a very modern company. The range of customer groups can be very wide.
- The quality of service from customers point of view. A company providing services on the Internet can easily be managed, development and the improvement of the service depending on the customers´ requirements. It is possible to adapt to the repertory of the products and services and needs of the field more rapidly.
- Differing from the competitors by providing completely new types of services to the customers.
- Today´s generations are used to using computers and online services. They use them with ease and thus, online shopping will not fail because of technology, unless the user interface is poorly designed.
- Contemporary networks are fast and computers have enough processing power so that customers will not get frustrated due to the long delay times or slow response times.
- Anything anywhere in the world can be purchased with just a credit card´s number and a few mouse clicks. Shoppers have no need for finding time or to take the effort of going in to a physical store and standing in line there.
- Money and credit card transactions are easy and fast to carry out (even in real time within your own bank). This has taken the financial environment a big leap into the future.
- Enhancements of the supplements over the net
- Electronic way of activity, the competitors are also improving their services continuously.
Naturally, every new technology has its disadvantages, too. Many of these are related to security issues and include the following aspects:
- Massive amounts of data, i.e. millions of transactions per second can be difficult to handle. High performance processing capacity is needed which is expensive to purchase and maintain. If a server hang out for even a few seconds occurs, transactions get interrupted and business is lost (customers might not try again).
- The above counts for temporary or permanent hardware failure as well.
- When sensitive customer information and other user data is kept on a database, there always exists a risk that credit card details, email addresses, passwords and like can be hacked.
- An electric supply failure and might cause catastrophically problems. Thus, an investing in a dual system with backup by generators is needed. This means higher costs for the platform.
Some issues related to the logistics and distribution. Online or not, the goods purchased still need to reach the buyer physically.
Reasons for utilizing the e-transactions and electronic customer relations managements are:
- Customer service
- Improvement of the services the customer is getting
- Offering of new types of services to the customer
- Enhancement of operations
- Electronic interactions
- Automatization of handling
Taking care of business is independent of the location and the time, i.e. when the customer has the freedom to carry out his business wherever he might be and whenever he chooses (self service), cost reductions will be achieved through the decrease in manual administrative work. Besides independence from time and location factors, another main benefit for the customer is the possibility to follow the process of his case online and a faster service cycle.
Links to look after considering this: http://www.vm.fi/vm/fi/04_julkaisut_ja_asiakirjat/01_julkaisut/04_hallinnon_kehittaminen/20051230Asioin/99202.pdf