IT has enabled all factories to shrink in size, such that only critical activities are done in-house and all others are sub-contracted.
Now outsourcing is increased in organizations through EDI and Inter-organizational Systems.
Japanese introduced new concepts like Just-in-time, total quality management, cycle time reduction and above all bringing in human and social values like honesty, integrity and mutual trust through their IT implementation.
In a service-dominated world a firm’s success depends heavily on how the interactions with customers are managed.
Jan Carlzon of Scandinavian Airlines calls these interactions “moments of truth”.
A “moment of truth” occurs anytime a customer comes in contact with a person of the service organization, and the customer’s impression about the organization is largely dependant upon the quality of interaction that takes place at this time.