What is Service?

Managing Services

29 Jun 201514:28

Summary

TLDRJayant Chatterjee from IIT, Kanpur, discusses the evolution and importance of services in business over the last 8 sessions. He explores how services have transformed from traditional roles to integral parts of the economy, impacting various sectors like finance and industry. Chatterjee emphasizes the need to understand service business models, management, and marketing in the current economic landscape. He also touches on the role of services in creating new value and business insights, suggesting that they offer significant opportunities for innovation and economic activity.

Takeaways

😀 The speaker, Jayant Chatterjee, is from IIT and aims to discuss service management in the next 8 sessions.
⏰ The sessions will focus on the evolution of services, how they are perceived today compared to the past, and their impact on business.
🔍 There will be an in-depth look at how service businesses and industries are transforming, including the role of service management, marketing, and operations.
🌟 The discussions will also cover the contemporary research and how it guides high performance in service businesses.
💡 Services are now considered a significant part of the economy, with a substantial shift from the 18th century to the present.
🏭 The early days of the industrial revolution saw services as a support function, but today they are a dominant force in the financial structure.
📈 Services are now seen as a co-creation process, requiring a different approach to management and marketing.
🚀 The session will explore how services can provide a new rationale and a new philosophy for all businesses.
🌐 The importance of services in the economic activity is highlighted, with providers and consumers co-creating value.
💼 The speaker emphasizes the need to consider services as more than just a support function, but as a key driver of business strategy and value creation.

Q & A

What is the main topic of discussion in the given script?
-The main topic of discussion is the evolution and importance of services in business and industry, including service management, marketing, operations, and the impact of service economy on various sectors.
What does the speaker aim to discuss with the audience in the upcoming 8 weeks?
-The speaker aims to discuss in more detail about the nature of services, how they have been perceived in the past and present, and how the service business and industry have transformed over time.
What is the significance of service management in today's business environment according to the script?
-Service management is significant in today's business environment as it plays a crucial role in controlling and enhancing the customer experience, value creation, and overall business performance.
How does the speaker describe the historical perception of services in the script?
-The speaker describes the historical perception of services as being less significant compared to tangible goods, often considered intangible and less valuable, and not as a primary focus in business strategies.
What is the role of services in the current economic structure as mentioned in the script?
-Services play a significant role in the current economic structure, holding a substantial position in the economy, and are increasingly becoming a dominant factor in financial structures and business models.
What is the importance of understanding the service business model in the context of the script?
-Understanding the service business model is important as it helps in recognizing how services can be a new rationale and a new philosophy of thought for all businesses, offering a fresh perspective for value creation.
How does the speaker suggest services have evolved from being a support function to a core business function?
-The speaker suggests that services have evolved from being a support function to a core business function by becoming integral to the economic structure, influencing financial models, and driving business strategies and operations.
What examples does the speaker provide to illustrate the transformation of services in the script?
-The speaker provides examples such as going to a movie show, turning on a light, and the associated services like entertainment, education, and the underlying utilities like electricity generation and distribution, to illustrate the transformation of services.
What is the concept of 'co-creation' in services as discussed in the script?
-The concept of 'co-creation' in services refers to the collaborative process between the service provider and the customer, where both parties actively participate in the service experience, leading to the creation of value.
How does the speaker emphasize the importance of services in the modern business landscape?
-The speaker emphasizes the importance of services in the modern business landscape by discussing how services have become a key component in economic activities, driving innovation, and shaping the way businesses interact with customers.
What is the future outlook for services as presented in the script?
-The future outlook for services, as presented in the script, is that they will continue to grow in importance, becoming more integrated with technology, and playing a central role in creating new business models and economic activities.

Outlines

00:00

😀 Introduction to Service Management

Jayant Chatterjee from IIT introduces the topic of service management over the next 8 sessions. The discussion will delve into the evolution of services, how they are perceived today versus in the past, and the transformation of service businesses. Key areas to be explored include service management, marketing, operations, and the role of people in service delivery. The sessions aim to understand how service businesses are adapting to modern challenges and how they can be a source of innovation and new business strategies.

05:04

😉 The Changing Role of Services in Business

The paragraph discusses the shift in the perception of services within businesses. Historically, services were seen as secondary to goods production, but this has changed significantly. Services are now considered a crucial part of the economy, with a significant role in industrial revolutions and financial growth. The speaker emphasizes the importance of understanding the value of services in business, and how they can be a source of competitive advantage. The session will explore how services can be a platform for creating new knowledge and capabilities, and how they can drive economic activity without the need for physical production.

10:08

😃 The Importance of Service Innovation

In this section, the focus is on the opportunities and challenges presented by service innovation. The speaker highlights that while many businesses have adapted to service-based models, there is a need to continuously innovate to stay competitive. The discussion will cover how services can be integrated into business models to create value and solve complex problems. The speaker also introduces the concept of 'tangibles' and 'intangibles' in services and how they contribute to the customer experience. The session aims to provide insights into how businesses can leverage service innovation to enhance their offerings and meet customer needs.

Mindmap

Keywords

💡Service

In the context of the video, 'Service' refers to the activities performed to benefit another party. It is a fundamental concept as the discussion revolves around the evolution and management of service industries. The speaker mentions how services are perceived and managed differently today compared to the past, highlighting the shift from traditional to more modern approaches.

💡Service Management

This term is integral to the video's theme, focusing on the strategic and operational processes involved in creating, delivering, and improving services that meet or exceed customer expectations. The script discusses how service management has become more complex and critical in the current business landscape.

💡Economic Activity

Economic Activity in the script pertains to the actions and efforts of individuals and businesses that contribute to the economy. The speaker talks about how services have become a significant part of economic activities, especially with the rise of knowledge-based and service-oriented industries.

💡Industrial Revolution

The Industrial Revolution is mentioned to contrast the historical context with the current service economy. It marked a shift from agrarian to industrial societies, whereas the script discusses the subsequent shift towards service-based economies where the focus is on intangible products.

💡Innovation

Innovation is a key concept in the video, referring to the introduction of new ideas, products, or methods. The speaker emphasizes the importance of innovation in services to stay competitive and meet evolving customer needs, as exemplified by the discussion on how services have transformed over time.

💡Technology

Technology plays a significant role in the script's narrative, as it is seen as a catalyst for change in service delivery and management. The speaker discusses how technological advancements have enabled new ways of providing services and interacting with customers.

💡Value Creation

Value Creation is a central theme in the video, referring to the process of generating benefits and value for customers and stakeholders. The script explores how services, through innovation and strategic management, can create value and enhance the overall customer experience.

💡Marketing

Marketing is discussed in relation to services, focusing on the strategies used to promote, price, and distribute services to customers. The speaker suggests that marketing plays a crucial role in how services are perceived and consumed in the market.

💡Operational Excellence

Operational Excellence is mentioned as a goal for service businesses, emphasizing the need for efficient and effective operations to deliver high-quality services. The script implies that operational excellence is key to standing out in the competitive service sector.

💡Customer Experience

Customer Experience is a recurring theme, highlighting the importance of understanding and enhancing the interactions customers have with a service. The speaker discusses how services are designed and managed to improve customer satisfaction and loyalty.

💡Tangible vs. Intangible

This concept is used to differentiate between physical goods and services. The script explains how the service industry primarily deals with intangible offerings, which require a different approach to management and marketing compared to tangible products.

Highlights

Introduction to Jayant Chatterjee from IIT discussing service management in the next 8 weeks.

Exploration of how services have evolved from past to present understandings.

Discussion on the transformation of service business and industry today.

Importance of daily service control and how it contributes to service management.

The role of marketing, operations, and the impact on service industry personnel.

Examining contemporary research to understand the matrix of today's service.

The significance of service in the economy and its growth over the past century.

The historical context of service in the early days of the Industrial Revolution.

The evolution of service from being considered less productive to a significant economic force.

The role of services in the financial structure of developed economies.

How services are now considered a co-creation process.

The shift in the value provided by services and their impact on business operations.

The potential for services to create new insights and theories for all businesses.

The importance of understanding the service economy and its complex network.

The opportunity for services to solve individual and societal needs without creating additional value.

The transformative potential of services in creating new economic activities and theories.

The contrast between the service industry and other businesses in terms of value creation and resource utilization.

The necessity to rethink business models to incorporate service opportunities and challenges.

The future of services in the context of economic and business models.

Conclusion and call to action for the audience to embrace the service economy and its implications.