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Management article
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Reference no. 96106X
Published by: Harvard Business Publishing
Originally published in: "Harvard Business Review", 1996
Revision date: 30-Jan-2013

Abstract

Is investing in new technology always the right choice for a company and its customers? Allan Moulter, the Chief Executive Officer of Quality Care, isn't sure he wants to invest in the computerized reception system that consultant Jack Zadow has outlined for him. But in this HBR case study, the argument Zadow makes is impossible to ignore. Quality Care's rivals have invested in similar systems or are planning to do so. The new system promises to take care of routine busywork, freeing staff up for other interactions with patients. It seems as if the competition hasn't even cut staff and is counting on increased customer retention to pay for the investment. And yet, Quality Care's surveys of its own customers show that they prefer the human touch when checking in. How would customers feel if the first 'person' they met when they came in the door turned out to be a machine? Six experts weigh the costs and benefits of technology in a service industry. In 96106 and 96106Z, commentators Thomas O Jones, Mary Jo Bitner, Eric Hanselman, Christopher A. Swan, Teresa A Swartz, and Terri Capatosto offer advice on this fictional case study.

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Abstract

Is investing in new technology always the right choice for a company and its customers? Allan Moulter, the Chief Executive Officer of Quality Care, isn't sure he wants to invest in the computerized reception system that consultant Jack Zadow has outlined for him. But in this HBR case study, the argument Zadow makes is impossible to ignore. Quality Care's rivals have invested in similar systems or are planning to do so. The new system promises to take care of routine busywork, freeing staff up for other interactions with patients. It seems as if the competition hasn't even cut staff and is counting on increased customer retention to pay for the investment. And yet, Quality Care's surveys of its own customers show that they prefer the human touch when checking in. How would customers feel if the first 'person' they met when they came in the door turned out to be a machine? Six experts weigh the costs and benefits of technology in a service industry. In 96106 and 96106Z, commentators Thomas O Jones, Mary Jo Bitner, Eric Hanselman, Christopher A. Swan, Teresa A Swartz, and Terri Capatosto offer advice on this fictional case study.

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