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Introduction To Service Management

The document discusses the growth of the service sector in economies. It begins by defining economic sectors such as primary, secondary, and tertiary. It then defines services and discusses the five subgroups that make up the service sector. The document shows data on the increasing percentage of employment and GDP contribution from services in different countries over time. It also discusses factors that have driven growth in the service sector such as information technology, innovation, and changing demographics.

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Endrei Clyne Mercullo
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42 views

Introduction To Service Management

The document discusses the growth of the service sector in economies. It begins by defining economic sectors such as primary, secondary, and tertiary. It then defines services and discusses the five subgroups that make up the service sector. The document shows data on the increasing percentage of employment and GDP contribution from services in different countries over time. It also discusses factors that have driven growth in the service sector such as information technology, innovation, and changing demographics.

Uploaded by

Endrei Clyne Mercullo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to Service

Management
Characterization and Definition
Role of Services in Economy
Growth of the Service Sector
SERVICE Lecture 1, Term 2 AY 12 - 13

Economic Sectors
• Economic sector pertains to a certain type of
business activity within an economy.
• Different ways exist in dividing the sectors of the
economy.
▫ The most popular way is the Three-sector
hypothesis by Fisher, Clark, and Fourastie which
was developed in the 1930s.
SERVICE Lecture 1, Term 2 AY 12 - 13

Primary Sector
SERVICE Lecture 1, Term 2 AY 12 - 13

Secondary Sector
SERVICE Lecture 1, Term 2 AY 12 - 13

Tertiary Sector
SERVICE Lecture 1, Term 2 AY 12 - 13

Sectors of Economy

ECONOMIC DEVELOPMENT
Quinary
Quarternary
Tertiary Sector
(Post-Industrial)

Secondary Sector
(Industrial)

Primary Sector
(Pre-Industrial)
SERVICE Lecture 1, Term 2 AY 12 - 13

What is a Service?
• A service is a time-perishable, intangible
experience performed for a customer acting in
the role of a co-producer.

• Service enterprises are organizations that


facilitate the production and distribution of
goods, support other firms in meeting their
goals, and add value to our personal lives.
- James Fitzsimmons
SERVICE Lecture 1, Term 2 AY 12 - 13

Service Sector
• Service sector includes all economic activities
whose output:
▫ is not a physical product or construction
▫ is generally consumed at the time it is produced
▫ provides added value in forms (such as
convenience, timeliness, comfort or health) that
are essentially intangible concerns of its first
buyer
SERVICE Lecture 1, Term 2 AY 12 - 13

Five Subgroups in the Service Sector


• Business Services
• Infrastructure Services
• Trade Services
• Social/Personal Services
• Public Administration
SERVICE Lecture 1, Term 2 AY 12 - 13

Business Services
• Consulting, Auditing, Advertising, Customer
Support, and Human Resources

• Goal: Reduces operating/overhead costs and


increases efficiency of manufacturing firms
through fast and reliable services
SERVICE Lecture 1, Term 2 AY 12 - 13

Infrastructure Services
• Communications, Transportation, and Utilities
(Energy and Water)

• Goal: Function as intermediaries between the


extractive and manufacturing sectors and as the
channel of distribution to the final customer
SERVICE Lecture 1, Term 2 AY 12 - 13

Trade Services
• Retailing, Wholesaling, Maintenance, and
Repair

• Goal: Complements the infrastructure services


in intermediating between the extractive and
manufacturing sectors and in acting as channel
of distribution to the final customer
SERVICE Lecture 1, Term 2 AY 12 - 13

Social/Personal Services
• Restaurants, Health Care, Child Care, Cleaning,
and Lodging

• Goal: Created to move former household


functions into the economy
SERVICE Lecture 1, Term 2 AY 12 - 13

Public Administration
• Education and Government

• Goal: Plays a critical role in providing a stable


environment for investment and economic
growth
SERVICE Lecture 1, Term 2 AY 12 - 13

Comparison of Economies
Society Game Predominant Use of Standard Technology
Activity
Human Living of
Labor Measure

Pre- Against Agriculture Raw Muscle Subsistence Simple hand


Industrial nature Mining Power tools

Industrial Against Goods Machine Quantity of Machines


fabricated Production Tending Goods
nature

Post- Among Services Artistic Quality of Information


Industrial persons Creative life in terms
Intellectual of health,
education,
recreation
SERVICE Lecture 1, Term 2 AY 12 - 13

Growth of Service Sector


Percent Employment in Services for the Top Ten Postindustrial Nations
Country 1965 1975 1985 1995 2005 2010/2011
United States 59.5 66.4 70.0 74.1 78.6 79.6
United Kingdom 51.3 58.3 64.1 71.4 77.0 78.0
The Netherlands 52.5 60.9 68.3 73.4 76.5 73.7
Sweden 46.5 57.7 66.1 71.5 76.3 70.9
Canada 57.8 65.8 70.6 74.8 76.0 71.5
Australia 54.6 61.5 68.4 73.1 75.8 71.2
France 43.9 51.9 61.4 70.0 74.8 78.9
Japan 44.8 52.0 57.0 61.4 68.6 71.6
Germany 41.8 n/a 51.6 60.8 68.5 71.0
Italy 36.5 44.0 55.3 62.2 65.5 73.3
SERVICE Lecture 1, Term 2 AY 12 - 13

Growth of Service Sector


GDP Contribution by Sector for all South East Asia Countries, 2010 - 2011
Country Agriculture Industry Services
Cambodia 33.4 21.4 45.2
Laos 29.9 33.1 37.0
Burma 43.0 20.5 36.6
Thailand 8.6 39.0 52.4
Vietnam 20.0 41.4 38.6
Malaysia 10.5 41.4 48.2
Brunei 0.7 73.3 26.0
East Timor 32.1 12.9 55.0
Indonesia 15.3 47.0 37.6
Philippines 12.3 33.3 54.4
Singapore 0.0 26.6 73.4
SERVICE Lecture 1, Term 2 AY 12 - 13

Growth of Service Sector


SERVICE Lecture 1, Term 2 AY 12 - 13

Experience Economy
• First coined by Joseph Pine and James Gilmore
in their article/book titled “The Experience
Economy”

• A stage of economic evolution in which added


value is created by engaging and connecting with
the customer in a personal and memorable way
SERVICE Lecture 1, Term 2 AY 12 - 13

Sources of Service Sector Growth


• Information Technology
• Innovation
• Changing Demographics
SERVICE Lecture 1, Term 2 AY 12 - 13

Information Technology
SERVICE Lecture 1, Term 2 AY 12 - 13

Innovation
• Push Theory of Innovation

• Pull Theory of Innovation


SERVICE Lecture 1, Term 2 AY 12 - 13

Changing Demographics
• Human Lifestyle
▫ Occupation
▫ Health
▫ Security
• Age
• Culture
SERVICE Lecture 1, Term 2 AY 12 - 13

Reference
• Fitzsimmons, J. A., & Fitzsimmons, M. J. (2011).
Service Management: Operations, Strategy,
Information Technology (7th ed.). New York, NY:
McGraw-Hill Co.
SERVICE Lecture 1, Term 2 AY 12 - 13

Image Credits
• Fishing.http://en.wikipedia.org/wiki/File:Negrito_Fishing_Boat,_Philippines_%281899%29.jpg
• Farming. http://www.agriculture-ph.com/2009/01/govt-asks-farmers-to-plant-more-hybrid.html
• Forestry. http://section2-7.wikispaces.com/
• Mining. http://www.mining-technology.com/projects/skorpion/skorpion3.html
• Consumer Goods. http://marksom.wordpress.com/2012/05/25/fmcg-brand-network/
• Pottery. http://www.wolfpottery.com/
• Car. http://www.aldocs.in/manufacturing_industry.php
• Pharmaceutical. http://www.pharmaceutical-int.com/suppliers/b-braun-melsungen-ag--oem-division.html
• LRT. http://mapanuringpinoy.blogspot.com/2010/12/bagong-taon-bagong-pamasahe-sa-lrt.html
• Banking. http://www.affordablecebu.com/load/banking/top_10_banks_in_the_philippines_2011/13-1-0-2033
• Tourism. http://gelsantosrelos.typepad.com/my-blog/2012/01/its-more-fun-in-the-philippines.html
• Government. http://johnryanrecabar.wordpress.com/tag/university-of-the-philippines/
• Restaurant. http://www.south-seas-adventures.com/tahiti-resorts/Sofitel-Tahiti-Maeva-Beach-Resort.php
• University.
http://gmaseven.blogspot.com/2011/06/up-ateneo-ust-la-salle-in-2011-top-200.html?utm_source=feedburner&utm_med
ium=feed&utm_campaign=Feed%3A+KapusoOnline+%
28KAPUSO+ONLINE%29&utm_content=Google+International
• Business Services. http://specindia.blogspot.com/2012/01/best-practices-in-it-business.html
• Infrastructure. http://it.wikipedia.org/wiki/File:Infrastructure-vs-Services.jpg
• Retailing. http://www.bgwdealer.com/tag/retailing/
• Maintenance and Repair. http://www.123rf.com/photo_6513479_maintenance-and-repair.html
• University. http://thesplendorofthechurch.blogspot.com/2010/06/de-la-salle-university-president-bro.html
• Government. http://www.eserbisyo.gov.ph/Default.aspx?SSID=84

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