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Service Management Ch. 1, Role of Services in an Economy

Service Management Ch. 1, Role of Services in an Economy. Learning Objectives. 1. Central role of services in an economy. 2. Evolution of an economy from an agrarian society to a service society. 3. Features of preindustrial, industrial, and postindustrial societies.

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Service Management Ch. 1, Role of Services in an Economy

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  1. Service ManagementCh. 1, Role of Services in an Economy

  2. Learning Objectives 1. Central role of services in an economy. 2. Evolution of an economy from an agrarian society to a service society. 3. Features of preindustrial, industrial, and postindustrial societies. 4. Features of the new experience economy.

  3. 0. Service Definitions A Service is a Time-perishable, Intangible Experience Performed for a Customer Acting in the Role of a Coproducer. -James Fitzsimmons

  4. 0. Definition of Service Firms Service Enterprises are Organizations that Facilitate the Production and Distribution of Goods, Support Other Firms in Meeting Their Goals, and Add Value to Our Personal Lives. - James Fitzsimmons

  5. 1. Interactive Role of Services

  6. 1. Integration of Downstream Services • example: automobile manufacturers • Discussion: outsourcing, offshore

  7. 2. Economic Evolution • Clark-Fisher hypothesis • Three vs. Five stages • Three categories

  8. 2. Trends in U.S. Employment by Sector

  9. 2. Percent Employment in ServicesTop Ten Postindustrial Nations

  10. 2. Percent Service Employment for Selected Industrialized Nations Country 1980 1987 1993 2000 United States 67.1 71.0 74.3 74.2 Canada 67.2 70.8 74.8 74.1 Japan 54.5 58.8 59.9 72.7 France 56.9 63.6 66.4 70.8 Israel 63.3 66.0 68.0 73.9 Italy 48.7 57.7 60.2 62.8 China 13.1 17.8 21.2 40.6 Taiwan 38 42 48 55

  11. 2. 服務業在先進國家扮演火車頭

  12. 3. Stages of Economic Development by Daniel Bell Dominant Human Unit of Living Society Game activity labor social life measure Pre- Against Agriculture Raw Extended Sub- Industrial nature Mining muscle household sistence Industrial Against Goods Machine Individual Quantity fabricated production nature Post- Among Services Artistic Community Quality of industrial persons life

  13. 4. Experience Design Principles • Theme the Experience (Forum shops) • Harmonize Impressions with Positive Cues(O’Hare airport parking garage) • Eliminate Negative Cues(Cinemark talking trash containers) • Mix in Memorabilia (Hard Rock T-shirts) • Engage all Five Senses (Mist in Rainforest)

  14. 4. Source of Service Sector Growth • Information Technology (e.g. Internet) • Innovation Push theory (e.g. Post-it)Pull theory (e.g. Cash Management) Difficulty of testing service prototypes • Changing Demographics Aging of the population Two-income families Growth in number of single people Home as sanctuary

  15. Discussion Topics • Illustrate how the type of work he or she does influences a person’s lifestyle. E.g. contrast a farmer, a factory worker, and a school teacher. • Is it possible for an economy to be based entirely on services? • What is the value of self-service in an economy?

  16. Interactive Class Exercise • Identifies service firms that should be listed in the Fortune 100 and places them in rank order of annual revenue. www.fortune.com case: WAL-MART (p.14) 2. 搜尋台灣的企業排名，服務業次分類的排名。

  17. Distribution of GDP in the US Economy

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