Service Economy
Welcome to Service Management Chapter 01 Role of Services in an Economy
James Fitzsimmons Seay Professor of Business Emeritus University of Texas at Austin
McGraw-Hill/Irwin Service Management: Operations, Strategy, and Information Technology, 6e Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Learning Objectives
Identify traits that all services have in common. Discuss the central role of services in an economy. Identify and differentiate the five stages of economic activity. Describe the features of preindustrial, industrial, and postindustrial societies. Describe the features of the new service economy. Contrast the push vs. pull theories of innovation. Identify the sources of service sector growth.
1-2
Service Definitions
Services are deeds, processes, and performances. Valarie Zeithaml & Mary Jo Bitner A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-producer. James Fitzsimmons
1-3
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
1-4
Role of Services in an Economy
FINANCIAL SERVICES · Financing · Leasing · Insurance INFRASTRUCTURE SERVICE · Communications · Transportation · Utilities · Banking
MANUFACTURING Services inside company: · Finance · Accounting · Legal · R&D and design
DISTRIBUTION SERVICES · Wholesaling · Retailing · Repairing
PERSONAL SERVICES · Healthcare · Restaurants · Hotels
CONSUMER (Self-service)
BUSINESS SERVICES · Consulting · Auditing · Advertising · Waste disposal
GOVERNMENT SERVICES · Military · Education · Judicial · Police and fire protection
1-5
Percent Employment in Services
Top Ten Postindustrial Nations
Country United States United Kingdom The Netherlands Sweden Canada Australia France Japan Germany Italy 1965 59.5 51.3 52.5
James Fitzsimmons Seay Professor of Business Emeritus University of Texas at Austin
McGraw-Hill/Irwin Service Management: Operations, Strategy, and Information Technology, 6e Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Learning Objectives
Identify traits that all services have in common. Discuss the central role of services in an economy. Identify and differentiate the five stages of economic activity. Describe the features of preindustrial, industrial, and postindustrial societies. Describe the features of the new service economy. Contrast the push vs. pull theories of innovation. Identify the sources of service sector growth.
1-2
Service Definitions
Services are deeds, processes, and performances. Valarie Zeithaml & Mary Jo Bitner A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-producer. James Fitzsimmons
1-3
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
1-4
Role of Services in an Economy
FINANCIAL SERVICES · Financing · Leasing · Insurance INFRASTRUCTURE SERVICE · Communications · Transportation · Utilities · Banking
MANUFACTURING Services inside company: · Finance · Accounting · Legal · R&D and design
DISTRIBUTION SERVICES · Wholesaling · Retailing · Repairing
PERSONAL SERVICES · Healthcare · Restaurants · Hotels
CONSUMER (Self-service)
BUSINESS SERVICES · Consulting · Auditing · Advertising · Waste disposal
GOVERNMENT SERVICES · Military · Education · Judicial · Police and fire protection
1-5
Percent Employment in Services
Top Ten Postindustrial Nations
Country United States United Kingdom The Netherlands Sweden Canada Australia France Japan Germany Italy 1965 59.5 51.3 52.5