Welcome to Service Management Chapter 01 Role of Services in an Economy David Fitzsimmons Seay Professor of Business Emeritus University of Texas by Austin McGraw-Hill/Irwin Service Managing: Operations, Technique, and Technology, 6e Copyright laws В© 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

Learning Objectives

Recognize traits that every services have in common. Discuss the central role of services in an economic climate. Identify and differentiate the five stages of monetary activity. Identify the features of preindustrial, industrial, and postindustrial societies. Illustrate the features with the new services economy. Contrast the force vs . pull theories of innovation. Determine the options for service sector growth.


Service Definitions

Services will be deeds, techniques, and shows. Valarie Zeithaml & Mary Jo Bitner A service can be described as time-perishable, intangible experience performed for a buyer acting inside the role of a co-producer. James Fitzsimmons 1-3

Definition of Support Firms

Services enterprises will be organizations that facilitate the production and division of goods, support other firms in appointment their desired goals, and add value to our personal lives. Wayne Fitzsimmons


Role of Services in an Economy

FINANCE В· Auto financing В· Procurment В· Insurance INFRASTRUCTURE SERVICES В· Marketing and sales communications В· Travel В· Ammenities В· Bank

MANUFACTURING Companies inside organization: В· Finance В· Accounting В· Legal В· R& D and design

SYNDICATION SERVICES В· Wholesaling В· Retailing В· Repairing

PERSONAL SERVICES В· Healthcare В· Restaurants В· Hotels

CLIENT (Self-service)

BUSINESS SERVICES В· Consulting В· Auditing В· Advertising В· Waste disposal

GOVERNMENT SERVICES В· Military В· Education В· Judicial В· Police and fire safety 1-5

Percent Employment in Services

Top Ten Postindustrial Countries

Country Usa United Kingdom The Netherlands Sweden Canada Australia Italy Japan Philippines Italy 1965 59. your five 51. three or more 52. 5 46. a few 57. 8 54. 6 43. on the lookout for 44. almost 8 41. eight 36. 5 1975 66. 4 fifty eight. 3 70. 9 57. 7 65. 8 sixty one. 5 51. 9 52. 0 n/a 44. 0 1985 75. 0 sixty four. 1 68. 3 sixty six. 1 75. 6 68. 4 61. 4 57. 0 51. 6 fifty five. 3 95 74. 1 71. four 73. some 71. your five 74. almost eight 73. 1 70. zero 61. four 60. 8 62. a couple of 2005 79. 6 77. 0 seventy six. 5 76. 3 76. 0 75. 8 seventy four. 8 sixty-eight. 6 sixty-eight. 5 66. 5 1-6

Proportation of total employement 60 seventy 80 85 10 20 30 forty 50 zero 1850 1860 1870 1880 1890 early 1900s 1910 1920 1930 1940 1950 1960 1970 80 1990 2000 Service Agriculture Manufacturing 12 months 1-7

Trends in U. S. Job by Sector

Distribution of GDP in the US Economy (GDP: Gross Domestic Product) Product A Physical 6% 31% Services B 37%





C 16% 84%



Phases of Economic Development

World PreIndustrial Video game Against Nature Predominant Activity Agriculture Mining Use of Human Labor Uncooked muscle electrical power Standard Device of of Living Social Life Measure Structure Expanded household Subsistence Technology

Schedule Simple hand Traditional equipment Authoritative Bureaucratic Machines Hierarchical


Against Goods Machine Individual fake production tending nature Between Services People

Quantity of merchandise


Artistic Community Quality of Interlife in terms reliant Creative Perceptive health, education, recreation



Financial Evolution

Overall economy Economic Giving Function Nature Attribute Method of Supply Retailer Buyer Expectation Agrarian Meals Industrial Packed goods Make Tangible Standardized Inventoried Manufacturer Customer Features Service Asset service Deliver Intangible Customized Delivered in demand Company Client Benefits Experience Customer services Level Memorable Personal Revealed over time Stager Guest Sensations Organization services Co-create Effectual Expansion Sustained after some time Collaborator Collaborator Capability 1-10

Extract Agotable Natural Trapped in bulk Investor Market Quantity

The Four Realms associated with an Experience

Client Participation Unaggressive Active

Compression Entertainment Education (Movie)...