Presentation1

1. OPERATIONS
MANAGEMENT I
Carolina Filter Cantos
Miguel Rueda Pérez
José Antonio Barrera García

2. OUTLINE
 INTRODUCTION
 GROWTH OF SERVICES
 IMPACT OF TECHNOLOGY IN THE SERVICE SECTOR
 SERVICE PAY
 EXCITING NEW TRENDS IN OM
 NEW TRENDS. SHARING ECONOMY
 DEBATE: CALL CENTER CURRENT SITUATION
 REFERENCES

3. INTRODUCTION
 The service sector consists of the "soft" parts of the economy, i.e. activities where
people offer their knowledge and time to improve productivity, performance,
potential, and sustainability.
 Education
 Health
 Entertainment
 Government
 Financial services
 The basic characteristic of this sector is the production of services instead of end
products. Services (also known as "intangible goods") include attention, advice,
experience, and discussion.
 The production of information is generally also regarded as a service, but some
economists now attribute it to a fourth sector, the quaternary sector.

4. GROWTH OF SERVICES
 The world economy is increasingly classified as a service economy due to the
importance of services in developed and developing countries.
 Indicator of a country's economic progress.
 Largest economies sector postindustrial societies.
1900
Mostly
agriculture
sector
Movement form
farms to cities
Manufacturing
employment has
decreased in the
past 30 years
Services became
the dominant
employer in the
early 1920s

5. GROWTH OF SERVICES
We can observe that
since the 1920s the
service sector became
the most important
sector of the economy
arising nowadays
almost 80% of the
labor force.

6. As you can see there is
world trend to the blue
which means that the
services sector means an
important key factor for
the GDP composition.

7. IMPACT OF TECHNOLOGY IN THE SERVICE
SECTOR
What is technology?
According to:
Merriam-Webster: the use of science in industry, engineering, etc., to invent
useful things or to solve problems.
Oxford Dictionary: The application of scientific knowledge for practical
purposes, especially in industry: advances in computer technology.
Wikipedia: is the collection of tools, including machinery,
modifications, arrangements and procedures used by humans.

8. IMPACT OF TECHNOLOGY IN THE SERVICE
SECTOR
Services
Technology
Quaternary
sector

9. IMPACT OF TECHNOLOGY IN THE SERVICE
SECTOR
What has it been the consequences of all of this?
The QUATERNARY
SECTOR of the economy
is a way to describe a
knowledge-based part of
the economy which
typically includes
services such as
Information
technology (IT)
R&D (particularly in
scientific fields)
Consultancy (offering
advice to businesses)
Financial services

10. IMPACT OF TECHNOLOGY IN THE SERVICE
SECTOR
We can observe
the emerge and
fast growth of this
new sector.

11. IMPACT OF TECHNOLOGY IN THE SERVICE
SECTOR
Information technology (IT) is the application of
computers and telecommunications equipment to store,
retrieve, transmit and manipulate data.
Several industries are associated with information technology,
including computer hardware, software, electronics,
semiconductors, internet, telecom equipment, e-commerce and
computer services.
Their definition consists of three categories: techniques for
processing, the application of statistical and mathematical methods
to decision-making, and the simulation of higher-order thinking
through computer programs.

12. IMPACT OF TECHNOLOGY IN THE SERVICE
SECTOR

13. IMPACT OF TECHNOLOGY IN THE SERVICE
SECTOR
Quinary Sector:
Some consider there to be a branch of the quaternary sector called the quinary
sector, which includes the highest levels of decision making in a society or
economy. This sector would include the top executives or officials in such fields
as government, science, universities, nonprofit, healthcare, culture, and the
media.
For example, the governmental decision to seek bids on a new military fighter
plane, considerations of the efficacy of human cloning or the creation of the
Environmental Protection Agency (EPA).

14. IMPACT OF TECHNOLOGY IN THE SERVICE
SECTOR
Primary
Secondary
Tertiary
Quaternary
Quinary
Quinary Sector: HIGHEST
LEVEL OF DECISION MAKING

15. IMPACT OF TECHNOLOGY IN THE SERVICE
SECTOR
CALL CENTERS
It is a centralized office used for the purpose of receiving or transmitting a large
volume of requests by telephone.
 Inbound call centers are operated by a company to administer incoming product
support or information inquiries from consumers.
 Outbound call centers are operated for telemarketing, solicitation of charitable
or political donations, debt collection and market research. In addition to a call
center, collective handling of letter, fax, live support software, social media and
e-mail at one location is known as a contact center.

16. IMPACT OF TECHNOLOGY IN THE SERVICE
SECTOR
CALL CENTERS TECHNOLOGY
 Tools for telephone switch functionality
 Intelligent routing
 Automatic call distribution
 Interactive voice response (IVR)
 Outbound dialing
 Voice mail

17. SERVICE PAY
 Common perception that services industries are low paying but in fact it is
not.
 Many service jobs are paid very well for example:
 Operation managers who supervise computer services to the financial
community.
 Operation managers in the maintenance facility of an airline.
 42% of all service workers receive wages above the national average (US)

18. EXCITING NEW TRENDS IN OPERATIONS
MANAGEMENT
 OM managers operate in a exciting and dynamic environment.
 This environment is a result of a variety of challenging forces.
 Ethics
 Global focus
 Rapid product development
 Environmentally sensitive production
 Mass customization
 Empowered employees
 Supply chain partnering
 Just in-time-performing

19. EXCITING NEW TRENDS IN OPERATIONS
MANAGEMENT
TRADITIONAL APPROACH REASONS FOR CHANGE CURRENT CHALLENGES
Ethics and regulations not at
the forefront
Public concern over
pollution, corruption, child
labor, etc.
High ethical and social
responsibility; increase legal
and professional standards
Local, regional, national
focus
Growth of reliable, low cost
communication and
transportation.
Global focus; international
collaboration
Lengthy product
development
Shorter life cycles; growth of
global communication;
internet
Rapid product development;
design collaboration
Low cost production, with
little concern for
environment; free resources
ignore (air, water)
Public sensitivity to
environment; ISO 14000
standard; increasing disposal
cost
Environmentally sensitive
production; green
manufacturing; sustainability

20. EXCITING NEW TRENDS IN OPERATIONS
MANAGEMENT
TRADITIONAL APPROACH REASONS FOR CHANGE CURRENT CHALLENGES
Low cost standard products
Raise of consumerism; increase
affluence; individualism
Mass customization
Emphasis on specialized, often
manual tasks
Recognizing the importance of
the employees’ total
contribution. Knowledge society
Empowered employees;
enriched jobs
“In-house” production; low-bid
purchasing
Rapid technology change;
increasing competitive force
Supply chain partnering; joint
ventures, alliances
Large lot production
Shorter product life; increasing
needs to reduce inventories
Just-in-time performance;
learn; continuous improvement

21. NEW TRENDS. SHARING ECONOMY
The Sharing Economy is a socio-economic ecosystem built around the
sharing of human and physical resources.
It includes the shared creation, production, distribution, trade and
consumption of goods and services by different people and organizations.
The Sharing Economy encompasses the following aspects:
 Exchanging
 Collective purchasing
 Collaborative consumption
 Shared ownership
 Shared value
 Recycling

22. SHARING ECONOMY: TRIP4REAL
Trip4real works to offer the world unique and quality activities created by local
experts so that the travelers can know and enjoy the most authentic part of a country
as marvelous as Spain.

23. SHARING ECONOMY: TED COLLABORATIVE
ECONOMY
Shane is a REconomist, entrepreneur,
environmentalist and dreamer. He left
the UK at 17 to discover the world,
without money, direction or date of
return just a fascination for big questions
like "is a better world possible?"
20 years later, his current work with the
Transition Network's REconomy Project
exposes him to the rise of the new
economy and a possible answer.

24. DEBATE: CALL CENTER CURRENT
SITUATION
Press Releases: Movistar’s call centers come back to Spain from Latin America to
recover its costumers’ confidence who were unhappy with the services provided
by for foreign staff.
Atento which is the outsource company of Movistar’s call centers, still has
15,000 employees in Spain and 120,000 in Latin America.
Do you have any anecdote regarding call center?
Have you been attended by national or foreign staff?
Share your experiences…

25. REFERENCES
 BOOKS:
Heizer, J; Render, B. Operations Management. Prentice Hall. (2006).
Stevenson, W.J. Operations Management. McGraw-Hill. (2007).
 WEBSITES FOR THE RESEARCH:
 Academia.edu
 Atento.com
 Trip4real.com
 Comunidad.movistar.com
 Ted.com

26. Thank you for your attention!