Customer Service, Profit, and the Internet
Content and Web Application Development
Commercial database vendors are aggressively pursuing the Internet as a new market for their products.
Databases provide the architectural foundation for maintaining dynamic Web content supporting Web-based
data transactions, and providing the robustness and scalability necessary for high-volume Web
servers, as well as the tools for system maintenance. Similarly, application development tQOlvendors are
extending client/semer tools to support the development of Web applications with increasingly
sophisticated capabilities. Finally, encryption technology is feverishly being developed and integrated into
database and application development tools to provide the required security for widespread commercial
transactions.
Deployment Options
In the beginning there was the global lnternet, a network of networks designed to provide redundancy and
ubiquitous access to electronic data. In 1995 organizations began to experiment with what have become
known as intranets, private information systems developed and deployed using Intemet-derived
technologies and communications protocols, but separated from the global Internet. Most recently, we have
seen the emergence of extranets, an extension of intranets to trusted external users, such as customers and
suppliers, allowing them access to protected applications, data, and services.
What clearly is unfolding is a critical mass of end-user application standards, enabling technologies, and
implementation choices that is paving the way for pragmatic corporate use of Intemet-based systems today.
Now let’s explore how utilities and telecommunications providers can capitalize on the Intemet’s maturing
markets and tools for customer service and profitability.
The Internet's Impact on customer service and profitablity
To remain profitable in deregulating markets, utilities and telecommunications providers must retain
existing customers while attracting new ones. These companies can differentiate and lead their marketplace
by leveraging the Intemet with Intemet-based services. Ultimately, such services will be widespread
markets, at which time they will have become a competitive requirement. Companies that establish and
implement their Intemet strategies now will have the competitive edge over those who wait.
Companies can realize substantial process cost reductions by automating customer service with Intemet-based
systems. Customers who can “help themselves” reduce labor costs. Another key advantage of such
systems is that the cost of developing, training, deploying, and maintaining Intemet-based systems can be
dramatically lower than that of traditional clientherver alternatives.
How do customers benefit from a utility’s Intemet services? Their benefits can be categorized as follows:
convenience, information, flexibility, cost, and faster resolution of customer needs. In a competitive
m~ketplace, these customer benefits can make the difference between a customer won, a customer
retained, and a customer lost. A wide variety of potential utility and telecommunications applications that
deliver these benefits are outlined in Table 1.
Planning Considerations
Investments in any information system should be based on the company’s strategic goals and objectives.
Intemet initiatives should also be fully integrated with the company’s marketing plan. Products, services,
positioning, promotional messages, and image should be consistent across all media.
It is vital that resources be adequately planned and budgeted. Marshall McLuhan is famous for his quote
“The medium is the message.” Companies must be prepared to invest in developing and maintaining
Intemet content and services that are timely, accurate, interesting, responsive, and of high quality. Those
that do not risk sending a stronger, unintentionally negative, message to their customers. Customer input,
for example, through the use of focus groups, will be very uset%lin determining the applications, content
and presentation suited to your target markets.
Editorial procedures involving appropriate subject matter experts must be established, imposing strict
control on information posted on Intemet information systems. Policies governing employee Internet use
must also be established and well communicated throughout the organization.
Companies without extensive in-house expertise in this field should consider working with consultants and
systems integrators who specialize in planning, designing, and developing Intemet-based information
systems. Similarly, companies should consider outsourcing ongoing Web site creation, hosting, and
maintenance to vendors who focus on these services as their core business.
Conclusion
The Intemet represents a fertile opportunity for utilities and telecommunications organizations to
differentiate themselves in the marketplace and expand their real and perceived levels of customer service.
Organizations should begin now to design and implement Intemet-based information systems. Those who
do will benefit from increased customer loyalty and profitability now and in the fhture.
