Abstract
The total value of services industry occupied around 80% of GDP in 2011 and it has become the major industry in Taiwan. Due to acute competition, the life cycle of commodities and services become shorter than before. Therefore, each entrepreneur should maintain innovative capability to enhance its competitive advantage through service innovation and design. The research is an empirical study that focuses on wholesalers of a private. Service innovation via IT skills extends traditional physical stores to both e-commerce marketing and physical operations. According to our result, four performances are improved: 1. Customer satisfaction performance: It consists of services level upgrade such as procurement electronic procedure, website combination and customization. 2. Financial performance: Business owners can facilitate operation procedures, reputation expansions and without time limitation as procurement places the order both in physical stores and websites. The proposed method can raise revenue of company by reducing four to five days inventory time and shortening purchasing processes about half to one day. 3. Operation efficiency promotion: It’s useful to reduce papers and avoid typos by e-operations. Moreover, business owners has flexibility to place order or apply e-procurement procedures and set up websites as running business in physical stores. In addition, customers all over the world can order around the clock. 4. Company image and prospect: Extra manpower in physical store can focus on service and expand current business operations to different market segments to serve current and potential customers better.