Can Technology Make The Money For You?

Crais writes: "Using JetBlue, the Mens' Wearhouse, and others as examples, this article out of Newsweek shows how tossing money into new technology, and giving employees nice benefits/perks can actually make your business profitable, and pleasurable to work for. Sheesh, I just want my company to buy some real networking equipment..."

note the "sponsored by Microsoft" image

[Infonaut]

at the top of the article. This is a technology company marketing the concept that injecting more technology into your company will help it succeed.

The article sounds like a .NET ad

[Target Drone]

It's funny how an article that says businesses can save money by developing software with new technologies has an ad for Microsoft .NET at the top.

Make Money Fasst

[scotch]

Can technology make money for you? Hmmm, let me think. Agriculture. The Wheel. Pentagon hammers. Vibrating dildos. Recorded music. Laser Hair Removal. Yes. Technology isn't just computers and other slashdot-style-geek toys.

Working from home

[AConnection]

I have often thought about working from home, and could probably justify doing so with my work (Electronic Records Management) but I have two little problems - a 2.5 yr old daughter and a 10 months old son. I love them both incredibly and spend a lot of time with them outside of work, but I see how little my wife sometimes can get done if the kids are demanding a lot of attention. In addition, I still think that getting out and working outside of the house is a nice break from the family and allows me to appreciate them even more.

The secret to JetBlue..

[KernelHappy]

These are what I see as the secrets behind JetBlue:

- Their ticket prices are very reasonable.
- They fly non-stop to their destinations.
- Their main hub is based close to a(the) major metropolitan city (New York).
- They don't serve crappy meals just snacks.
- Each seat has its own TV with 24 channels.
- They fly out of a notoriously annoying airport at off-peak hours making the airport far less of an issue.
- They have a new fleet of jets that are quiet and in excellent condition.

Where does their IT actually improve their product? They are a relatively small airline and they are bound to the scheduling and baggage routing procedures of the airports that they fly through and they don't have to schedule in flight meal delivery. As a JetBlue customer it seems more like their IT is barely relevant. Then again that can be a sign of excellent IT infrastructure.

Technology Can Be Used AGAINST Employees Too

[ltsmash]

The first section in the article discusses Jetblue Airways' efforts to allow employees to work at home. Half of the technology will actually allow an employee to work at home: phone lines to handle calls and dial into the booking system, Laptop computers, etc. On the flip side, the other half of the technology used by employers will make sure that telecommuters actually do work. While some of this is certainly justified, I wonder how far it will be pushed. The author makes practically no mention of this.

Bottom Line: Office-technology is not all-good and wonderful. What about the increasing surveillance of employees? We need to hear about the bad parts too.

Not about technology

[BurritoWarrior]

If you look at those varied companies, the underlying theme is not technology, but two words: Customer Service.

If you listen to your customer's needs and wants, you will be successful most of the time. Bad service is the one thing that will drive me away from a company, even if the product/service they are selling is good. There are usually plenty of others selling "good stuff" too.

Speaking of things that make sense...

[nehril]

... electronic kiosks in Virgin's stores that allow customers to sample 30-second snippets from a database of approximately 250,000 CDs. The experiment began last year in two of the chain's outlets and was considered a huge success. Virgin executives found that when customers come into a store with a specific album in mind, they're three times as likely to actually purchase the product if they give it a test drive.

hmn... letting people try music makes them more likely to purchase? where have we seen that before?

Virgin can't seem to understand that 2+2 = 4

[Anonymous Coward]

Wow, I love the irony in the section about Virgin Megastores and their kiosks, too bad they can't seem to add very well.

Virgin's stores that allow customers to sample 30-second snippets from a database of approximately 250,000 CDs. The experiment began last year in two of the chain's outlets and was considered a huge success. ... "The biggest problem we have as a music retailer is that we sell a product that is shrink-wrapped," says de Jong. "You can look at it, smell it and see it, but not hear it."

I mean, you wouldn't think that one reason people love to download MP3s is because they like to listen to albums before they purchase them? What a novel idea!

Re:The secret to JetBlue..

[steveha]

Where does their IT actually improve their product?

Read the article. When you call JetBlue to make a reservation, the agent you are talking to is working from home. JetBlue doesn't have the overhead of office space for their agents; their agents are happier; they have lower turnover among their agents. In short, they have lower overhead costs.

A company like JetBlue competes by offering good service for a lower price; cutting their overhead helps them keep their ticket prices lower. Happy employees helps keep the service good. It's good business any way you look at it.

Note that your first bullet point was "Their ticket prices are very reasonable." So we could say that lower overhead contributes directly to making their product better.

P.S. Older, more rigid Theory X [dushkin.com] companies don't like telecommuting. They want employees in an office where it is easy to keep an eye on them and crack a whip over them. I'm happy to see another example of why Theory X isn't needed.

steveha

Re:Technology Can Be Used AGAINST Employees Too

[steveha]

What about the increasing surveillance of employees? We need to hear about the bad parts too.

The traditional way to make sure employees are working is to require them to go to work in an office, where you have managers to crack a whip over them. Do you actually feel that the deal JetBlue is offering its phone agents is worse than this?

It only makes sense to monitor calls to ensure good customer service. Companies will monitor their phone agents even if they force the agents to work in an office. It isn't really any different from retail stores sending "secret shoppers" to shop anonymously at stores to make sure customers are being treated well.

They have only 10% turnover rate. Their employees are happy.

steveha