The Global Service Economy Growth Trend - Coursework Example

hе Global Sеrviсе Есоnоmy Growth Trend Students Name Institution Тhе Global Sеrviсе Есоnоmy Growth Trend The services operation management is used to refer to the decisions activates and operation managers responsibilities within a service organization. On the other hand, service operation management main concern is in the delivery of services to the customers and involves an understanding of service needs to a target group. Other aspects contained in this case include managing the process of service delivery, making sure that the set goals and objective are met, and there is a continued improvement of the services (Parker, Waller, & Xu, 2013). In many countries in the world, services operations are the main economic activities. Additionally, the growth of GDP in many countries has been due to the development of these sectors of the economy. The service organizations respond to the customer requirements with the aim of satisfying their needs and leaving a particular experience in their minds through a service delivery system. This paper intends to confirm that the service economy has developed within the last decade and try to find out whether the trend might continue or not. The service systems The service system ranges from personal aspects such as an architect with extensive skills to social service Centrelink in Australia, a business like KFC or a charity organization like Red Cross. People’s beliefs, language norms, attitudes makes a service system and are likely to evolve over time as a result of individuals' adjustment to novel circumstances. This makes the service system complex and partially designed and evolving (Johnston, & Clark, 2008). The way these systems are designed enables delivery of services, and each of them is both a service provider offering multiple types of services. Whenever a service operations management is designing a service system, they endeavor to apply an complementary economic network or rapidly develop and scale up the service. For instance, the internet providers create a service system whereby an increased number of people and business use the internet and the more value that the internet holds for the service provider and the users in the system. Innovation In the service system requires technologies, value proposition and demand management integration. The process of measuring the service is challenging whereby a certain person measure of excellent services can be an acceptable service to another person (Johnston, & Clark, 2008). This implies that as the service economy is being termed, as having developed a person’s measure of excellence in service may be an unacceptable service to another person. This clearly indicates that there are various influencing factors which determine’s a person’s acceptable and excellent service. This is despite the fact that there are lived experiences of similar services that can be benchmarked against. Additionally, the significance of emotional factors in the assessment of the quality of the service is worth addressing. This is one way, or the other contributes to the developments being experienced in this economy. Individual satisfaction, emotional reward, a feeling of trust, self-actualization and perceived trust are just some of the emotional considerations in this in the service operations system (Parker, 2012). Customer pleasure emanates or is a response that they give due to a number of series activates that are designed in a way that enhances the level of customer satisfaction. This sis the emotion that customer’s experiences measured against preoccupied expectation. However, damaged merchandise can be exchanged using a receipt in a specified period, but replacing poor services is not possible. As a result, over time many service organizations have employed listening post and hardwiring the customers’ voice to effect on the service culture (Parasuraman, 2002). For instance, in on of the Australia travel company Greyhound, passers have been called to send text messages while riding in the bus. This is an approach that has been shown to be beneficial in that in gives companies a chance to improve their customer services before a customer deserts making it far more likely that the customer will develop loyalty and return. This marks some of the developments that have maybe contributed to the development of these services systems and the economy as a whole. Service economy The expression service economy is a comparatively modern terminology and alludes to modern economic developments. The first reference to this phrase is the increased significance of the service sector within the industrialized economies. In Australia services account for a higher percentage of the GDP compared to about 20 years ago and which is also evident from a majority of United state and European nations. In the current stock exchange listings for FTSE, ASX and DOW contains a larger number of service industries compared to manufacturing ones that the past decades (Mägi, & Julander, 1996). The service economy also refers to the significance of a service in a product offering. In the developing countries, the service economy is mainly concentrated in the health, financial, and education sectors. However, today products like motor cars and white goods like the washing machine hold a higher service component compared to the past years. According to the service operations management literature, this is termed to as products servitization (Parasuraman, 2002). Almost every product nowadays contains a service component in it, and service-product continuum has long replaced the divide between product and service that was in existence. It is notable that the aspects such as contrast and separation between the physical products and intangible services have increasingly become blurred. This is clear mainly from the teaching and oil production continuum (Parker, 2012). Nevertheless, a large number of organizations can be classified between these two extremes; for instance, restaurants provide a physical product in the form of food and at the same time offers services in the form of ambiances such as setting and cleaning of the table and others. Moreover, although some a certain utilities essentially deliver physical goods, such as gas utilities, provide gasses in containers are usually treated as services. In the developing countries over 50% of GDP is constituted by services and with continued growth and development in these countries, the significance of services in the economy goes on growing. The service operations are also crucial to the growth. For example, between the periods of 2000 and2005 more that 47% of economic growth experienced in the sub-Saharan countries was accounted to by the service economy. This implies that the modern growth seen in Africa depends more on services as a natural resource regardless of the fact that a large number of these countries benefits from trade preferences both in primary and secondary products. As a result, job creation is adjusting to the occurring changes and people are a shift from the agricultural sector to work in the service economy (Parker, 2012). Employment creation is a useful aspect that offers low-skilled people in the society with work mainly in the tourism and retail sectors. Therefore, benefiting the poor in particular leads into an overall net increase in employment. There is a well-established export potential for a large number of these service industries, for example, the financial and transport services. Nevertheless, there new opportunities that are arising in other sectors of the economy such as health sector where companies are offering scanning services for other countries hospitals (Grönroos, & Ojasalo, 2004). Therefore, growth in the service economy also contributes and influences growth in other sectors of the economy whereby services in s sectors like telecommunication and transportation are important to all other sectors of the economy. On the other hand, financial services enable investment and transaction in education and health to ensure that there is a healthy well-educated labor Sеrviсе Есоnоmy Grоwth Trend As discussed above it is clear that the service economy has contributed to GDP growth in many countries in the past decade. The effects of the service economy are also felt in other sectors of the economy and play a key role in their growth as well. However, the question of whether this growth trend is to be maintained or will fade sometime in the coming future is worth addressing (Boyne, 2002). In any sector of the economy, management plays the major role in its success or failure. Thus operations service management role is crucial in the trend being experienced. This can be understood clearly by addressing two main areas the management role and the culture of embracing change. A culture embracing change The process improvement journey needs to embark on a clearly defined direction towards total excellence. Aspects that can be termed as excellent today can fail to be taken seriously tomorrow. This implies that competitors in the service economy can manage to deliver a services ins a span of 20 days, but through improvements, it is possible to deliver the same service in 10 days, thus be seen as excellent (Harris, & Crane, 2002). However, as the competitors come up with ways on how they can deliver the service in ten days as well, then an organization ceases from becoming excellent because its customers would be used and term it as normal to receive the service in 10 days. Therefore, service process improvement is a continuous process, and the organization staff culture and skills all should be agile and accept a change and seek necessary improvements. Changing an organization from a stability position to a continuous process of development and growth has substantial implications for the employees and the organization as a whole. Change is a threatening aspect and takes people from their comfort zone to a period of adaption and learning new ways of doing work. This implies that the emotional and diverse techniques of doing things should be considered and planned to overcome both perceived and actual barriers. People might doubt their capability on carrying out novel ways of work whereby the person expected to undertake revised procedures may need diverse characteristics skills and personality tan previous ones. Confusion can occur regarding the new methods perhaps in information and communication failed channels (Harris, & Crane, 2002). Therefore, in all these conditions, appreciating and being aware of the numerous conditions is of paramount importance. The implication is the service economy must accept change brought about by about by drawing on the strength of the ‘collective’ associated with empowered teams and by acquiring suitable people and worthwhile success by positive reinforcement. Now that the service economy is experiencing a developing trend there are many aspects that need to be changed in order to fit in the trend. This implies that once all the parties involved accept the change, the developments seen in the service economy over the past decade are likely to continue. Management’s role Service Operations Management with self-regulated teams working together to achieve continuous development the manager's role in the change is worth addressing. The service economy has been confirmed as a key contributor to an every country increase GDP. Therefore managers in these sectors of the economy must cease from regarding themselves as the monitoring and controlling figures, but instead change and behave like leaders. Leading by example will ensure that there is consistency between their behaviors and the message they send out by learning to accept and indeed acknowledge the change (Roth, & Menor, 2003). In order to improve and keep up with the growing trend of the service economy, thus service operations management must be focused on the stability maintenance and status quo angle and be directed in a style that accepts differences. Important improvements in the service economy may emerge from all sides; the organization itself, customers and the benchmarking. A good idea does not necessarily depend on who had it initially. Therefore, the considerable global service economy growth being experienced is likely to keep up with the trend once all the involved parties creates an environment and even better ways than the ones that customers have got used to by making sure that they keep on changing their culture to one where constant improvement becomes both normal and desirable, and everyone is encouraged to challenge the status quo (Johnson, (1998). In addition, service operations management through empowering people by listening to them will lead to their ideas being implemented and followed and the service economy will continue to grow in pursuit of service operations excellence. Through transformational leadership in the service economy, the leaders will be able to, and the parties involved will be able to raise each other to higher levels of morality and motivation. Embracing this form of leadership holds a great promise for services advancement and those involved in their delivery because they can result in fundamental change, give answers to deeper issues and create new paradigms (Roth, & Menor, 2003). Therefore, transformational leadership will generate sufficient energy to launch and sustain a transformation process in the project and, by extension, in the parent organization. This is a key aspect in ensuring that the experienced growth in the global service economy is kept going. Summary and conclusion In most cases organization developing a service operation that is exceptional and that requires a key paradigm shift and a change in the normal operating culture. This move will have the organization maintain its feature as an excellent organization. Some of the changes may be directed towards the values, system beliefs and the way of doing business. This shift requires time and persistence effort. Therefore, during this time of good change management is paramount ad especially where there are parties working for the organization and another party working itself out with all of its parts (Roth, & Menor, 2003). The re-engineering of the service operations and performance associated indicators that effectively connects organizations top to bottom. The improvements of service operations can be achieved through the use of numerous tools and techniques these can be based on the aspect chosen whether customers feedback, total quality or key performance indicators. Process improvement and increasing focus on the service operation that delivers to the customer needs have become important in today's service organizations. For every kind of service operation whether commercial profit or nonprofit there is a need to develop an operating system that is appropriate to the customer contact intensity. Creating sustainability and ensure continued growth in the global service economy the improvements should redesign and examine all the business procedures that support customer service. Nevertheless, application of the techniques and tools of systematic business procedure improvement to the existing business processes such as problem solving and procedures mapping is not essentially sufficient. On the other hand, key performance indicators are in most cases used to recognize key areas of service activities and to measure performance against targets. Therefore, this paper can confirm that the global service economy growth that has been developed over the past decade has an increased likelihood of continuing with this trend. However, management roles directed into the economy and culture of change plays a key role in determining this trend. Thus, the service operations management should draw increased attention on these aspects and others. References Boyne, G. A. (2002). Theme: Local Government: concepts and indicators of local authority performance: an evaluation of the statutory frameworks in England and Wales. Public Money and Management, 22(2), 17-24. Grönroos, C., & Ojasalo, K. (2004). Service productivity: Towards a conceptualization of the transformation of inputs into economic results in services. Journal of Business Research, 57(4), 414-423. Harris, L. C., & Crane, A. (2002). 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