A Value Platform Analysis Perspective on Customer Access Information Technology

Robert J. Kauffman, Laura Lally
1994 Decision Sciences  
Customer access information technologies (CAITs) provide a link between a firm and its customers. Firms invest in CAITs to reduce costs, increase revenues and market share, lock in existing customers and capture new ones. These benefits, however, are notoriously difficult to measure. This paper proposes an evaluative method for CAlT deployment called value platform analysis, that is based on a conceptual model drawn from the theory of retail outlet deployment in marketing science. The model
more » ... ses on the impact of CAIT features and environmental features on transactions generated by the CAIT. Specific econometric models are developed for deployment. Hypotheses regarding the likely impact of automated teller machine (ATM) location design choices and environmental features on ATM transactions are evaluated. The results indicate that there are a number of key features influencing ATM performance. Two distinct ATM deployment scenarios emerge: one for servicing a bank's own customers, and another for providing transaction services for customers for a fee. Pronto [I I ] . Yet, success stories such as American Airlines' SABRE system 1261 and McKesson Drug's Economost system [4] indicate that direct links to customers can result in large increases in revenue and market share. When considering an investment in such technologies, therefore, managers need guidance in crafting systems that will be used by customers and benefit the organization. This study addresses their concerns by: (1) providing a theory-based conceptual model for the deployment of computer and communication-based technologies that provide a direct link between organizations and their customers -customer access information technology
doi:10.1111/j.1540-5915.1994.tb01869.x fatcat:dpxt6lyxrjdb7mupnawpuot4u4