Unit 1: Service Sector & Technology. Sharing Economy
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The document discusses the evolution and significance of the service sector in the economy, highlighting its growth and technological impacts. It emphasizes trends in operations management, such as globalization and the sharing economy, while also addressing the economic viability of service jobs. Additionally, it explores the current state of call centers and their role in customer service dynamics.
Unit 1: Service Sector & Technology. Sharing Economy
- 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!