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Literature Review

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Submitted By krvmech1986
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Literature Review Submitted on: 11th October, 2010

In Partial Fulfillment of the requirement for the Research Methodology course during the MBA (FT) Program 2010-12.

Submitted to Prof. Tripura Joshi

Submitted by: Manan Pamani (101323) Kaushal Vaidya (101320) Nupur Shah (091233)

Literature review

Health-related e-services can be customized to the needs of different customer groups and as such have the potential to improve delivery efficiency and increase customer satisfaction and loyalty. Following the emergence of the internet along with its rapid adoption, there has been an information revolution of immense importance. E-services can be utilized as a business tool to gain competitive advantage, to permit faster and on demand response to customer enquiries, to improve internal efficiency and productivity, and to reduce transaction cost. E-services are important to organizations because they can strengthen relations between customer and service provider and thereby improve customer satisfaction. A large number of industries have so far profited greatly from the possibilities of e-services. Successful examples include online banking, online stock trading systems, online travel planning and web search engines.

Successful e-services have the potential to, among other things, provide overview, increase communication efficiency, integrate people in their health management and aid in the improvement of healthcare networks. However, the adoption of e-services in the healthcare sector has been rather slow or negligible. While the benefits and the positive adoption of e-services such as electronic banking technologies, e-shopping and social network technologies have been extensively studied, little is understood about the cause of the slow adoption in sectors such as healthcare. The present research adds to the literature about diffusion and technology adoption by investigating the role of customer preferences and perception regarding novel health-related e-services. Health insurance providers identified health-related e-services that they see as future trends: (1) health wikis (online health lexicons); (2) online appointments tools for care providers (doctors, hospitals etc); (3) online health accounts; (4) online lifestyle information (diets, healthy recipes, personal fitness trainers, etc); (6) online patient communities; (7) live chats with health coaches; (8) live chats with insurance agents (9) follow up communication with doctors. Previous development of e-services has roughly tended to the following order: e-services of informative nature (eg company information); e-services allowing one-way interaction (eg downloadable forms); e-services allowing two-way interaction (eg blogs, social network platforms); and increasingly, e-services that allow complete transactions (full electronic case handling). To determine the most efficient, effective and most accepted health related e-services, the customer’s perception needs to be known and understood.

Internet usage in India has been rising steadily. In 2009, 63 million Indians are using the Internet (defined as anyone who uses the internet once a month), representing a 5.2% of the country's population. A survey conducted recently by the e-Tech group of IRB International and IAMAI for 2009-2010. A growing number of Internet users live in India's small- and medium-sized urban centers and not in metros as is commonly perceived. Of the total users in 2009, for instance, 34% lived in the top 8 metros, 18% in large towns, 12% in towns with 0.5-1 mn population and a surprising 36%, the largest group, in towns with below 0.5 mn population. Compare this to the year 2000, when only 5% of the total Internet usages (itself an abysmal 5 million users) was attributed to towns with population of less than 0.5 mn people. Internet, in rural villages, has grown from 5.5 Mn in 2008 to 6.46 Mn in 2009 - a 17% increase in a year. The number of Active Internet users, who have used Internet in the last one month, has also risen from 3.3 Mn in 2008 to 4.18 Mn in 2009, exhibiting nearly a 27% increase.

The implementation of online services in healthcare segment in India is abysmally low. However with the private sector coming up in Healthcare as well, the situation is set to change. Many of these private companies have already started some services online and hence it has become imperative to know the impact of e-services on customer satisfaction especially for small players in industry before going whole heartedly into spending lots of money for IT expansion.

References:

1. Bitner, M. J., Brown, S. W. and Meuter, M. L. (2000) ‘Technology infusion in service 2. encounters’, Journal of the Academy of Marketing Science, Vol. 28, No. 1, pp. 138–149. 3. Sweeney, T. (2000) ‘E-commerce enhances e-services’, Credit Union Management, Vol. 23, March, p. 6.

4. Louise Muhdi and Roman Boutellier ‘Diffusion of potential healthrelated e-services: An analysis of Swiss health customer perspectives’ Received (in revised form): 7th September 2009

5. Bill Bysinger, (1999) ‘E-Commerce in Healthcare Will Be Anything But Easy’ Managed Healthcare Vol. 9(4), pp. 36-9.

6. Aaron S. Wilkins (1999) ‘Expanding Internet Access for Health Care Consumers’ Health Care Management Review Vol. 24 (3), pp. 30-41.

7. For statistical data : http://www.iamai.in/PCov_Detail.aspx?nid=2170&NMonth=9&NYear=2010

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