Technology is playing an increasing role in service operations management. Some key trends include a rise in self-service which reduces costs and speeds up service, a decrease in the importance of location as technology allows for more remote access, and an increase in disintermediation as technology connects buyers and sellers directly. Technology also enables greater integration and efficiency in operations as well as more effectiveness in serving customers.

1. ROLE OF TECHNOLOGY
IN SERVICE
OPERATIONS
MANAGEMENT

2. Technology Trends in Services

Increase in Self-Service
 Reduces
labor costs
 Speeds up service

Decrease in the Importance of Location
 Lower
costs for delivery of products and services
increases remote points of access and reduces
the need for specific service locations

3. Technology Trends in Services

Increase in Disintermediation
 Technology
brings buyers and sellers closer
together, eliminating intermediate steps or
organizations.

Integration Benefits
 Efficiency
in operations
 Effectiveness in serving customers

4. Technology Trends in Services
 Increased
efficiency
 Economies
of scale in consolidating operations.
 Reduced labor costs through replacement of manpower and
increased labor productivity.

5. Categories of E-Services
Category
Function
Internet
World-wide web presence with open
access to all.
Intranet
Internal network providing limited access
by individuals within an organization.
Extranet
A resource-limited network open only to
specified internal and external users
Electronic Data Interchange
(EDI)
A network designed to support the
exchange of data between the
organization and its vendors and
suppliers.
Value-added network (VAN)
A third party service that is used in
conjunction with EDI to provide the link to
customers and suppliers.

6. The Role of the Internet, Intranet,
Extranet and EDI in an
Organization

7. Automation in Services







Fixed sequence (F)
Variable sequence (V)
Playback (P)
Numerical controlled (N)
Intelligent (I)
Expert system (E)
Totally automated system (T)

8. Types of E-Services
Broad Categories
Specific Service Types
Business-to-Consumer
(B2C)
E-tailers (Goods and Services)
Consumer-to-Consumer
(C2C)
Customer Support
Business-to-Business
(B2B)
Network Providers
Government-to-Business
(G2B)
Information Providers
Government-to-Consumer
(G2C)
Application Service Providers
(ASPs)

9. Technology Issues

Overcoming Barriers to Entry (Customer)
 “Fear
of the unknown”
 Lack of knowledge by the customer

Training and Support
 Worker
skill development through hands-on
training in the new technology.
 Customer familiarization with technology.

10. THANK
YOU….!