Wednesday, October 10, 2007

Research paper 1: www.Dell.com

Research paper 1 : DELL

1.0 PURPOSE

Since the very first Dell PC was introduced in 1986, Dell has continued to shape the industry, breaking new ground and pioneering critical developments in home, small business and enterprise computing.

The aims for Dell's innovation approach is to deliver new and better solutions that directly address customer needs.


1) Listen.

Dell gathers requirements directly through tens of thousands of customer interactions daily, organized events, and customer panels.

Partnerships with a wide variety of key industry software, hardware and component suppliers give a uniquely broad perspective on the computing landscape.

2) Solve.

Many innovations begin in-house, led by a global team of top engineers, product designers and technical experts. Others begin as a team effort with Dell's strategic partners.

The mission is to deliver innovative and cost-effective solutions that meet today's real-life customer challenges and work seamlessly in existing environments and with other products.



3) Impact.

Dell is uniquely positioned to impact industry trends. It maintains strong internal development capabilities.

Dell partner, rather than compete, with top industry technology suppliers and original development manufacturers.

Dell steer enabling industry standards and technologies through industry groups and strategic partners. In this way, Dell spurs innovation and delivers value to customers.

With a long track record of pioneering work and a wide network of strong industry alliances, Dell can drive adoption of open standards that give customers:

- Increased choice
- Decreased cost and complexity
- Product and process interoperability


2.0 FEATURES

Dell is a form of B2C or C2C e-commerce business where it consists of the direct sales of services or products to the end user.

Dell sells their product directly online to their customers. Moreover, it offers discounts when products are bought online.

Not only saving costs, the user-friendly system makes online shopping more enjoyable and hassle free.


When clueless about products, Dell provides material for potential customers to "learn more" on what they can buy.


After deciding the counterparts for assembly, buyer can begin customizing the system.


One of the delightful features is that the website prompts buyer to change part of the ‘CPU’ when incompatible for system.

Finalizing choices made, the webpage updates latest cost of system then leaving room for consumers to decide the final budget.

The homepage captures buyer’s final decision to buy, processes the order request then dispatches the product within a week.

The feature of equipping step-by-step instructions also gives Dell a competitive edge over their competitors.

3.0 DESIGN

Dell is one of the fastest and most hyper efficient organization and a straightforward company that sells custom-configured PCs to consumers and businesses.

It is also well known for eliminating finished goods inventory by eliminating an extra step of resellers and connecting directly to customers.

Dell started as a mail-order company that advertised at the back of magazines and sold their computers over the phone.

Dell's e-commerce presence is widely publicized these days because it is able to sell so much built-to-order merchandise over the Web and has done it for more than a decade.

They gain a competitive advantage by luring customers from other vendors who do not offer such a service.

Moreover, Dell’s early and wise decision by implementing an online purchase system builds up brand loyalty and attracts current buyers.

With Dell’s decision to sell PCs on the web, it has generated many sales and lowers cost.

Transaction costs are lowered when less sales representatives being employed or by simplifying administrative duties.

When people purchase PCs over the web, they may be enticed by accompanying merchandise due to its presentation, then encouraging them to buy more.

The main idea at Dell is to help customers help themselves by making them feel at home.

All customers need to do is to Click on http://www.dell.com/, be spoilt for choices to the extensive range of information obtained to configure the one and only PC for yourself, at the comfort of your own room.

At the information highway, Dell is not afraid that potential customers purchasing rivals’ products. Buyers can shop around, compare prices then decide to place order.

4.0 CRITICISMS/PROBLEMS CAUSED AND EVALUATION

4.1 RIGID TECHNICAL SUPPORT PROTOCOLS

Currently Dell offers four levels of customer support and encourages customers to educate themselves on the differences between these service types.

Dell Inc brands its service-agreements at four levels:

1. Bronze
2. Silver
3. Gold
4. Platinum Plus

Regardless of the level of service-agreement, Dell's agents rigorously follow a specific troubleshooting procedure.

Controversy has developed around this area when knowledgeable computer users have already troubleshot the equipment and know the source of the problem.

Since Dell policy requires the technicians to always follow this strict procedure, resolution-time can take longer than expected.

Some IT departments have even calculated times to place Dell agents on hold when callers are required to perform tests that customer-staff have already carried out prior to calling.

Dell's hardware-warranty contract says that customers must troubleshoot over the phone — including possibly opening the computer — before Dell will send a technical service provider to replace a part.

EVALUATION:

This will waste a lot of time for Dell’s troubleshooting department at the expense of the customer’s patience.

This might also affect Dell’s reputation in providing quality service and reliability.

Dell’s agents should be trained to troubleshoot efficiently and be more flexible, instead of following a rigid troubleshooting procedure.

Dell’s agents should know how to act according to the customer’s troubleshooting needs.

For example, if the customer already know the source of the problem, Dell’s agents should be flexible enough to also troubleshoot from the source of the problem and guide the customer from there (instead of following a rigid troubleshooting model).

This could save a lot of costs with regards to time, quality service and customer’s confidence in the company.

4.2 LEVEL-OF-SERVICE-CONCERNS

In 2005, according to the Better Business Bureau, complaints about Dell more than doubled, to 1,533.

Consumer complaints about the quality of customer-service mounted, and in 2006. Issues included call transfers of more than 45% of calls and long wait-times.

To reduce costs, Dell began moving technical support to outside the United States, however this has resulted in quality of service concerns.

With the offshoring of call-center type applications, debate has also surfaced that this practice does serious damage to the quality of customer service and technical support that customers receive from companies who do it.

Call centers have sprung up in South Africa, India, Pakistan, Canada and the Caribbean. This decision has caused many criticisms, mostly because of the apparent language barrier that it creates.

This has thus been alleged reported that quality of service has decreased tremendously.

"Part of the suit claims that though Dell gave the impression of an "award-winning service" available to consumers "24 hours a day, seven days a week," consumers faced "nightmarish obstacles" to get help and technical service for their computers. New York Attorney General Andrew Cuomo said that New York had received 700 complaints about Dell — more than the number of complaints for any other related subject.”


EVALUATION:

Provide better training for customer service agents, to decrease the number of complaints and in turn, complains relating costs i.e lawsuits about the services provide from Dell.

Provide a better customer service/technical support program/procedure so as to better facilitate troubleshooting and decrease call waiting time for customers.

Due to its direct-sales model via the internet and telephone network, Dell’s customers might lack confidence in the company in providing the so called “quality services and reliability”.

To overcome this lack of confidence by customers, Dell could set “troubleshooting kiosks” in shopping malls to help notebook customers to troubleshoot their notebooks.

This could indirectly increase the customer’s confidence since they now do not have to wait very long to have their calls/questions answered, and could bring their notebooks directly to a service centre.


Research Paper 2: www.Paypal.com

Research Paper 2: Paypal

1.0 PURPOSE

PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. It serves as an electronic alternative to traditional paper methods such as cheques and money orders.





PayPal performs payment processing for online vendors,auction sites, and other users, for which PayPal is not free if you are a seller. Its main purpose facilitates the transfer of money easier.

2.0 FEATURE

PayPal uses email address and phone number to send/receive money to/from family and friends, pay for goods and pay for eBay items. Before commencing any transaction, signing up to be a member of PayPal is required.





By simply entering the payment information, sending money by credit is effortless. Payer attaches details such as payee’s email address and amount to be paid, etc.

The request for money can also be done by PayPal. In situations whereby payer is not able to pay, the payee can send a request for intended transaction to be enabled.

There is no worry about not knowing when money will be received. PayPal disseminates an email alert when payer has transferred funds to payee’s account.

The process demonstrates an electronically-facilitated transaction between consumers through some third party, also known as Consumer-to-Consumer (C2C).

A straightforward method to track all your transactions is by clicking “History” where it lists long history and when unable to find transaction.
Therefore, the above mentioned features are user-friendly and uncomplicated for consumers.


3.0 DESIGN

PayPal, an online payment service that allows individuals and businesses to transfer funds electronically by using encryption software. People can use it to pay for online auctions, purchase goods and services, make donations or send cash to someone.

Funds transferred via PayPal reside in a PayPal account until the holder of the funds retrieves or spends them. If the user has entered and verified their bank account information, then the funds can be transferred directly into their account.

PayPal acts as a middleman between merchants(buyers and sellers) and banks and credit card companies. Credit and debit card transactions travel on different networks.

When a merchant accepts a charge from a card, the merchant pays a small fee ranging from 1.4% to 3.9% of sale amount which is then being paid to all the different companies that have a part in the transaction.



If someone pays by check, a different network is used, one that costs the merchant less but moves more slowly.

PayPal touts their presence as an extra layer as a security feature, because everyone's information, including credit card numbers, bank account numbers and address, stays with PayPal.

With other online transactions, that information is transmitted from the buyer to the merchant to the credit card processor.



4.0 CRITICISMS/PROBLEMS CAUSED AND EVALUATION






PayPal's customer service has been criticized for how they handle customer issues.

Paypal has also been involved in a number of lawsuits.



4.1 PAYPAL IS NOT REGULATED BY BANKING REGULATIONS:



Paypal is not a bank, and thus is not regulated by any banking authorities.


Paypal does not provide consumers with accounts linked directly to their own banks (Real Merchant Accounts).


The money is deposited in the customer's personal account with Paypal, in which Paypal has full control.


Paypal can thus freeze any accounts for any time period without having the need to give an explanation (as stated in their policies).


The account can now only receive money but the money cannot be withdrawn.


Paypal is not obliged to return the merchant the balance in their account (as stated in their policy).



One good example can be seen from a source:

-Start of article-
EBay payments 'not rock-solid'

Source from BBC NEWS (http://news.bbc.co.uk/2/hi/business/3544795.stm)


Paypal, the payment service of internet auction house eBay, has admitted misleading shoppers into believing it offered credit-card-style protection.

Eliot Spitzer, New York State Attorney General, has reached an agreement with the firm to disclose clients' rights and liabilities more accurately.



Customers who buy goods on eBay, which then fail to turn up, are not always due a refund if they pay with Paypal.

Most credit-card issuers, by contrast, offer refunds in such circumstances.


Full disclosure


Paypal has agreed to pay $150,000 to settle the New York case.

The firm is not obliged to begin offering so-called "chargebacks", the technical term for credits or refunds offered in case of fraud by a merchant.
Last year, Discover - the credit-card division of Morgan Stanley - and American Express agreed to start offering chargebacks for eBay transactions.


Paypal, which does not fall under the same regulatory regime as credit-card providers, has agreed to be more open with the exact level of protection it offers its 25 million customers.


Cases to answer
There are still question marks over Paypal, however.

The firm has admitted that it faces investigations in several states, and from the Federal Trade Commission.


No details of these cases are available, but eBay said they related to its "restriction and disclosure practices" - in other words, probably the same areas as the New York case.


PayPal has aroused considerable criticism from eBay's army of users, however.


The main complaint is that the firm is wont to freeze accounts it considers suspicious, often for months on end. Some users allege that this practice gives Paypal unfair use of clients' money.

-End of article-
Source from BBC NEWS (http://news.bbc.co.uk/2/hi/business/3544795.stm)



EVALUATION:


Paypal would have a lot of potential should they be more open and not be “misleading” in issues regarding “chargebacks”. They should try to follow as closely to bank regulatory framework in order to regain the confidence level from their customers, be it corporate or small retail customers.

By being more transparent, customer’s confidence will be boosted, and thus more transactions will be made. Paypal should base their business on customer’s trust (be more open), instead of misleading, complicated security features.

One reason for the lack of confidence of customers is because paypal mainly function over the internet, a virtual reality where transaction takes place without invoices and hardcopies of transactions.

This will make people have doubts on paying via the internet, they will instead, resume to the good old fashion of going to the banks to remit or transfer their money in a safe manner.


4.2 CURRENCIES PROBLEMS:

As of the end of 2006, PayPal operates in 103 markets in 13 countries, and it manages over 133 million accounts.

PayPal allows customers to send, receive, and hold funds in 17 currencies worldwide.

These currencies are the U.S. dollar, Canadian dollar, Australian dollar,Euro,Pound sterling,Japanese yen,Chinese renminbi,Czech Koruna,Danish krone, Hong Kong dollar, Hungarian forint, New Zealand dollar, Norwegian krone, Polish zloty, Singapore dollar,Swedish kron,and Swiss franc.


EVALUATION:

Paypal should allow transactions made available in more currencies, especially Taiwan (NT) since eBay caters to many different auctions from different countries, mostly from Taiwan.

Customers will find it inconvenient if, for example, they would like to transfer money in Taiwan Currencies.

Customers would have to calculate and change the amount payable to USD first before sending it over to the Taiwan Seller. This would incur exchange rate costs (subjected to daily fluctuations).

It is also time consuming to do this additional step as compared to going through Bank credit cards.


4.3 PROTECTION FOR SELLERS AND BUYERS OF EBAY:


The company—by its own admission—uses automated systems to verify tracking numbers (in the case of disputes between sellers and buyers where buyers claim that sellers did not send the ordered goods) in some cases.

If a seller has an item not received claim filed against them, they are required to enter a tracking number for the item.

If they fail to enter a valid tracking number that shows a successful delivery, or even mistype the number by one digit, they may lose the claim automatically without a real person ever adjudicating the claim.

In general, if a valid tracking number is entered which can be accessed online and shows a successful delivery, the seller will automatically win the claim.



EVALUATION:

They can upgrade the automated systems to verify tracking numbers, i.e by showing more leeway by giving more tries for the automated systems to track successful delivery.

In this way, buyers will feel safer when they order on ebay. Paypal can also implement a partly automated technical system (personnel to assist the affected customer) instead of a fully automated system.

In this way, they can also answer to the questions of the merchants and help them in a more personalised manner.