Technology Bundling

This chapter focuses on the theme of service innovation in the electronic brokerage sector. The discussion will cover the theories of “technology bundling” and how bundling together various technologies creates added value for the end-user. The proliferation of different e-trading systems raises the question of which systems provide better and more comprehensive bundled services to online stock traders. Many online brokers now provide low-cost transactions and financial research capabilities, so where is the next level of innovation? The objective of this chapter is to show that several innovations in broker e-services are critical in the following areas: a) how order processes are efficiently managed in financial e-markets; b) how responsive e-trading systems are in handling trading rules and regulations; c) how different systems address unique niches in financial e-markets; and d) improving systems stability and reliability. Combining different systems and technology features in these areas allow brokers to give much better services to their clients.