Impact of Information Communication Technology on Service Sector - Case Study Example

Download file to see previous pages The high profits and increase in productivity are due to the compatibility of the service industry and ICT that involves a great deal of interaction and information exchange between clients and suppliers (Willcocks, Petherbridge and Olson 2007). This paper will look at the developments that have taken place in the transport industry for the last nine years with a prime focus on Combined European Management Transportation (CEMAT) and N.C. Commack &Son as examples.
The increase in efficiency of the back office operations in service firms is due to ICT which accelerates processing and monitoring of data on customers demands. The need for staff in the front office to have face-to-face interaction with the customers for example in the case of e-shopping has been reduced. Enormous economic performance in the service industry can, therefore, be linked to innovation that is based on ICT. The service industry has been able to outperform the manufacturing industry due to the importance of ICT (Miles 2004).
In order for any economy to be competitive and successful, there has to be a high-quality transport and communication sector which plays a crucial role. Efficient movement of people, goods and services from one area to another enables the economy to grow especially in Europe by creating employment. ICT is important in strengthening the competition that is beneficial to both the transport industry and other sectors by enhancing innovation and increasing the production rate. Transportation of goods within the European Union grew at a rate of 2.8% from 1995 to 2004 due to sound economic decisions and globalization. The growth has had positive impacts such as the creation of employment but at the same time it has led to congestion and increased damage to the environment through the use of fossil fuels leading to global warming. Ensuring sustainable growth and reducing the fossil fuel emission remains a major challenge to the European Union. ...Download file to see next pagesRead More