ba343 wk10 services

7/29/2019 BA343 Wk10 Services

1/81

Marketing in theNew Economy

InternetMarketing

CRM

CRM

IntlMarketing

ServiceMarketing


2/81

SERVICES


3/81

Service Perspectives:

Not a Product

Intangible humanact- that isproduced at the

time ofconsumption &cant bestandardized orinventoried

No Difference-Products are just

appliances thatprovide services-

Shift perspectivefrom Mfgr toconsumer andfocus on benefits

No One-Automation,Virtualization

&

Outsourcing


4/81

Defining -a Service

An act or performance offered by oneparty for another

An economic activity that does not

result in ownership

A processthat creates benefitsby

facilitating a desired change in:customers themselvesget a haircut

physical possessions-get a wig

intangible assets-get therapy
http://images.google.com/imgres?imgurl=http://ects.in/ects/homefiles/services.jpg&imgrefurl=http://ects.in/ects/services.html&usg=__XKVbZfhSiEQbJpNmacEaMmlDkf4=&h=300&w=300&sz=10&hl=en&start=12&sig2=OUqOMUSbjKrWWu11HtCRNg&tbnid=bL-c_DcedSyzcM:&tbnh=116&tbnw=116&prev=/images%3Fq%3Dservices%26hl%3Den%26rlz%3D1T4GGLG_enUS315US315&ei=gBXySprBO5OKswON6uwV


5/81

Service as process.

People Processing PossessionProcessing

Mental StimulusProcessing

InformationProcessing(directed at intangible assets)

e.g., airlines, hospitals,

haircutting, restaurants

hotels, fitness centers

e.g., transport, repair,

cleaning, landscaping,

retailing, recycling

e.g. media, consulting,

education, psychotherapy

e.g., accounting, banking,

insurance, legal, research

TANGIBLE

ACTS

INTANGIBLE

ACTS

DIRECTED AT

PEOPLE

DIRECTED AT

POSSESSIONSWhat is the

Nature of theService Act?

Who / What is Direct Recipient of the Service?


6/81

Importance of Service Sector

In most countries,services add moreeconomic value than

agriculture, raw materialsand manufacturingcombined

In developed economies,

employment isdominated by servicejobs and most new jobgrowth comes fromservices

http://earthtrends.wri.org/searchable_db/index.php?action=se

lect_countries&theme=5&variable_ID=216
http://earthtrends.wri.org/searchable_db/index.php?action=select_countries&theme=5&variable_ID=216http://earthtrends.wri.org/searchable_db/index.php?action=select_countries&theme=5&variable_ID=216http://earthtrends.wri.org/searchable_db/index.php?action=select_countries&theme=5&variable_ID=216http://earthtrends.wri.org/searchable_db/index.php?action=select_countries&theme=5&variable_ID=216


7/81

Changing Structure of Employment

as Economic Development Evolves

Time, per Capita Income

Industry

Services

Agriculture

Source: IMF, 1997


8/81

The Economist, 1996

0

10

20

30

40

50

60

70

80

1820 1840 1860 1880 1900 1920 1940 1960 1980 2000

Year

Per

cent Services

Industry

Agriculture

Waves of Change..

% US WORK-FORCE


9/81

http://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-s


10/81

At present in U.S.

~80% workers are inservice sector

Services account for~80%of U.S. GDP Service occupations is

responsible for~90% jobgrowth0

10

20

30

40

50

60

70

80

90

workers

GDP

Growth

Composition of US GDP

In 2007, 1.2 percent of total US GDP was contributed by agricultural sector.

Industrial sector made up 19.8 percent of US GDP in 2007. Services sector

made up 79 percent of US GDP in that same period

http://www.economywatch.com/gdp/world-gdp/usa.html
http://www.economywatch.com/gdp/world-gdp/usa.htmlhttp://www.economywatch.com/gdp/world-gdp/usa.htmlhttp://www.economywatch.com/gdp/world-gdp/usa.htmlhttp://www.economywatch.com/gdp/world-gdp/usa.html


11/81

Fast growing services -next decade-predicted by macro-environmental trends..

Changes in workplace-automation, globalization:Computer & data processingBusiness services

Transportation

Increased need/desire torecreate & communicate:Hospitality & TravelInteractive EntertainmentMobile Communication

More People: working more,living longer, living alone:Social servicesHealth services

Residential careChild day-careFinance, Insurance, Real estate


12/81

Services dominate the United States Economy:

GDP by Industry, 2001

Source: Bureau of Economic Analysis, November 2002

Finance, Insurance,Real Estate

20%

Wholesale andRetail Trade

16%

Transport, Utilities,Communications

8%Health

6%BusinessServices

5%

Other Services 11%

Government(mostly services)

13%

Manufacturing 14%

Agriculture, Forestry,Mining, Construction 8%

SERVICES


13/81

http://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-s

US likely to devote "30 %+GDP on health by mid century."
http://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-shttp://seekingalpha.com/article/27883-gdp-by-category-services-spending-and-foreign-investments-in-u-s


14/81

Critical Questions

1. What is the debate all aboutregarding how services should bedefined / envisioned?

o How does the definition of a service affect yourmarketing strategy?

2. What are the key Ps to meeting

service management challenges?3. What are some of the factors &

considerations affecting the near

future of services marketing?


15/81

In the olden days- (a few years ago)A Service was defined

categorically according to itstangibility..

Puretangiblegood; noservice

Tangiblegoods with

some

services

Hybrid:equal partgoods and

service

Majorservice

withminorgood

Pureservice;no tangible

good

Milk Computer

& Warranty

Meal at

Restaurant

Legal

Advice

Hair

Styling


16/81

Product - Service Spectrum

TangibleDominant

Intangible

Dominant

SaltSoft Drinks

Detergents

Automobiles

Cosmetics

AdvertisingAgencies

AirlinesInvestment

Management

ConsultingTeaching

Fast-foodOutlets

Fast-foodOutlets

Pure

Service

TangibleGood

w/Services

MajorService

w/ GoodsHybrid

Pure

Tangible

Good


17/81

Customer Evaluation as a Function of Tangibility


18/81

Inseparability

Services cannotbe separated

from theirproviders

Intangibility

Services cannot

be experiencedbeforepurchase

VariabilityQuality of

services dependson who provides

them & when,

where, & how

Perish-ability

Services cannotbe stored for

later sale or use


19/81

Intangibility

Services mrktg:

Describe the

invisibleArticulate the

imaginary

& Define the

indistinct
http://images.google.com/imgres?imgurl=http://www.jjtc.com/Gallery/invisible2.jpg&imgrefurl=http://www.jjtc.com/neil/research.html&h=425&w=338&sz=20&tbnid=uJzbgOrrbYwJ:&tbnh=121&tbnw=97&start=59&prev=/images%3Fq%3Dinvisible%2Bman%26start%3D40%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DN


20/81

Inseparability

Performance &consumption ofservice - happens atsame time(eating @restaurant, staying @ hotel;getting haircut, etc)

Customers participatein & affect the

transaction Customers affect each

other


21/81

Variability-Heterogeneity

Difficult to standardize Delivery, Quality &Customer Satisfactiondepend on employee

actions Employees vary -attitudes,

skills, mood, etc.

No assuranceservice deliveredmatches what wasplanned/ promoted


22/81

Perishability

Can not beinventoried

Difficult tosynchronizesupply & demandwith services

Services cannotbe returned orresold
http://www.swiftprinting.com/seats.jpg


23/81

MarketingStrategies

that addressshortcoming

Perish-abilityMatch supply

& demand

Intangibility

Tangibilizethe intangible

VariabilitySystematize

serviceproduction& delivery

Inseparability

Increaseprofessionalism

ofemployees

Intangibility

use tangibles to create/convey

identity -signs, uniforms, imagery

Good hands of Allstate/ TravelersUmbrella/ Prudential Rock

standardization difficult

Constantly monitor-regularly evaluate staff

Systemize/franchiseproduction & marketing

Variability Perish-abilityconsumption cannot be storedmatch supply and demand use of part-time staff differential pricing stimulation of off-peak

demand comfortable waiting area reservation system

Inseparabilitysimultaneous production

& consumption importance of service

provider selection, training and

rewarding of staff avoid customer conflict

R i k ti


24/81

Re: service marketingfor decades this has been the thinking-

But is itthe

The Fo r Ser ice Marketing M ths


25/81

The Four Service Marketing Myths:Remnants of a Goods-Based,

Manufacturing Model

The 4 characteristics:

1.Do not distinguish services from goods

2. Only have meaning from amanufacturing perspective, and

3. Suggest inappropriate marketingstrategies

K P i t P d t i diff ti ti


26/81

Key Point- Product-service differentiationis result of industrial age-2nd wave

thinking

Re-Variabilty:

Customizaton not standardization is the goal

Re-Inseparability:

Customer-ization not isolation = goalRe-Perishability:

Services can be/are inventoried (ie-knowledge in databases &experts head) AND Inventory management not maximization is

the objective; Everything is perishableif not in substancecertainly in style

Re: Intangibility:

its not the product that people are buying. Its the

functions served & benefits rendered-as it is w/

services

A hift i ti


27/81

A shift in perspective

Instead of focusing on

product servicedifferences

Focus on consumercommonalities

in consuming &evaluating that whichis purchased

C iti l Q ti


28/81

Critical Questions

1. What is the debate all aboutregarding how services should bedefined / envisioned?

o How does the definition of a service affect yourmarketing strategy?

2. What are the key Ps to meetingservice management challenges?

3. What are some of the factors &considerations affecting the nearfuture of services marketing?

Ch ll


29/81

Challenges for Service MgtSameas Product Mgt

1. Creating & offering the consumer value

2. Communicating a desired & distinct image

3. Create, sustain & enhance customerrelationships

4. Defining- maintaining- improving quality Mind the gaps.


30/81

Service Quality Gaps

Word of Mouth

Communications Personal Needs Past Experience

Expected Service

Perceived Service

Service Delivery

Service Quality Specs

Mgmt. Perceptions of Consumer Expectations

External

Communications

to Consumers

MisunderstandingCommunication

Performance

Overpromising

Expectations

Marketer

Consumer


31/81

Closing the gaps by fine tuning

4 Service Ps

TargetTargetMarketMarket

Product Place

PromotionPrice


Product Place

PromotionPrice


Product Place

PromotionPrice

~Process

~People

~Physical

Evidence~Protocol


32/81

People are your Product

In many instances-people performing the

service arethe product They arethe service

and/ororganization in

customers eyes. They are the brand.

R it Hi T i
http://images.google.com/imgres?imgurl=www.municipality.clarington.on.ca/images/clerk.jpg&imgrefurl=http://www.municipality.clarington.on.ca/html/clerks.html&h=162&w=198&prev=/images%3Fq%3Dclerk%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=www.greasespotcafe.com/images/page-images/waitress-gum.jpg&imgrefurl=http://www.greasespotcafe.com/main/contact.htm&h=394&w=300&prev=/images%3Fq%3Dwaitress%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=www.carpet.org/images/cleaner.gif&imgrefurl=http://www.carpet.org/maintenance.htm&h=825&w=983&prev=/images%3Fq%3Dcarpet%2Bcleaner%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DG


33/81

Recruit, Hire, Train,Monitor, Motivate, Reward

Why customer

satisfaction startswith HR

Delivering excellent

service: Lessonsfrom the best firms


34/81

Marketing-to personnel is as important as to consumers

InternalMarketing

Employees

enabling thepromise

Performance/ ExperienceManagement

delivering promises

ExternalMarketing

Customers

settingpromises

ServicesMgt

Triangle


35/81

Process Trade-off betweenStandardization & Personalization

Although standardization mayprovide for manufacturingefficiency, this efficiency

comes at expense of marketingeffectiveness. ..the consumer orientation

screams heterogeneity

Same as w/ Products

Vargo & Lusch: The Four Service Marketing Myths

Limiting the variability in yourservice by standardizing the processof delivery & level of consumerinvolvement will lower expenses but

comes w/ a cost:


36/81

The importance ofPhysicalEvidence in the Service Encounter

At Moment of Truth when service delivered &evaluated by consumer everything in evidencecontributes to the consumer's evaluation of the

service Be it a website, restaurant, office, hotel room or theme

parkit needs to be designed & packaged as well as anyproduct

What the customersees -- hears, smells,feels-is what s/hell believes they will get Colors, textures, sounds, smells, dcor, dress,

demeanoreverything in evidence needs attention andmanagement
http://images.google.com/imgres?imgurl=http://www.pixelsaredead.com/main/evidence-bag-overlay.gif&imgrefurl=http://www.pixelsaredead.com/main/&h=200&w=200&sz=3&tbnid=r_Y34sBTpLcJ:&tbnh=99&tbnw=99&hl=en&start=3&prev=/images%3Fq%3Devidence%26svnum%3D10%26hl%3Den%26lr%3Dlang_en%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.pixelsaredead.com/main/evidence-bag-overlay.gif&imgrefurl=http://www.pixelsaredead.com/main/&h=200&w=200&sz=3&tbnid=r_Y34sBTpLcJ:&tbnh=99&tbnw=99&hl=en&start=3&prev=/images%3Fq%3Devidence%26svnum%3D10%26hl%3Den%26lr%3Dlang_en%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.pixelsaredead.com/main/evidence-bag-overlay.gif&imgrefurl=http://www.pixelsaredead.com/main/&h=200&w=200&sz=3&tbnid=r_Y34sBTpLcJ:&tbnh=99&tbnw=99&hl=en&start=3&prev=/images%3Fq%3Devidence%26svnum%3D10%26hl%3Den%26lr%3Dlang_en%26sa%3DG


37/81

Its the little things that count

How you design your service encounter iscritical in a highly competitive marketwhere consumers hard pressed to discern

a significant difference in serviceperformance

Herein the design of your serviceencounter will prove the most criticalvariable in your marketing mix

Again a lesson proven equally valid forproducts---

Id ifi bl l


38/81

Identifiable apparel:An image-making marketing tool

By ~ 8-to-1ratio, US

consumerspreferemployees

wear

identifiableapparel


39/81

A good uniformmakes all the

difference

Id tifi bl l


40/81

Identifiable apparel:An image-making marketing tool

1. Improves your image:Customersequate a professional-lookingworker w/ a well-run company

2. Increases employeecommitment:Adding employee'sname can boost morale & loyalty

3. Provides a popular employment"perk":.

4. Shows off your firm'sexperience and expertise:"certification" -job titles, slogans &performance emblems on shirts/sleeves


41/81

Instill ProperProtocol so as toavoid the air of indifference

Most common

aspect ofservicecomplaintsis lack of

respectforthecustomer.
http://www.jimbrittphoto.com/showbiz2/Rodney%20Dangerfield.jpghttp://www.puedo.com/forsale/rodney.jpg


42/81

______% move away

_______% lost due to competitive reasonsand/or unhappy w/ the service

______% suspend patronage because of anattitude of indifference from owner,

manager or an employee

Why services lose customers

~3

~30

~67


43/81

What Customers Desire:

2500 shoppers saidcourtesy,

knowledge &friendliness aremost important

components ofcustomer service.


44/81

The Multiplier Effect

When a customer has a minor service problem:In transactions >$100 - s/he will tell 9 to 10 people.In transactions over $100, s/he will tell 16 people.

TARP

statistics.


45/81

Time is Money (Lost Customers)

*Source: Forum Corporation

Time Taken to Resolve a Customers Problem

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

M inutes Hours Days Weeks M onths

20%25%

45%

55%

80%90

70

50

30

10

Percent of

Customers

That Will

Not Buy

Again

Minutes Hours Days Weeks Months


46/81

Where and Who Complains

Most complaints made to service provider(employee) at time & place of service

Less than 5% of complaints aboutservices ever reach corporateheadquarters.

High-income households, younger people,and service-knowledgeable customers aremore likely to complain.


47/81

Actively Encourage
http://www.at.vcu.edu/ovp/Graphics/suggestion.jpg


48/81

Actively EncourageComplaints

Average company does not hearfrom 95% of its unhappy customers.

Many complaints go unregisteredbecause customers do not thinkit will help and/or do not knowbest way to register complaint

Encouraging complaints is a goodway to break the silence.
http://images.google.com/imgres?imgurl=http://www.subwayla.com/ohcal/Comments.jpg&imgrefurl=http://www.subwayla.com/ohcal/&h=1074&w=800&sz=174&tbnid=U_Bzpu4MCo8J:&tbnh=150&tbnw=111&hl=en&start=4&prev=/images%3Fq%3Dcustomer%2Bcomplaint%26svnum%3D10%26hl%3Den%26lr%3Dlang_en%26rls%3DGGLD,GGLD:2004-27,GGLD:en%26sa%3DNhttp://www.at.vcu.edu/ovp/Graphics/suggestion.jpghttp://www.hillsideautomall.com/Smiley%20Face.jpg


49/81

Attitude is Crucial

Customers valueacknowledged w/ every

transactionCustomers lose

confidence when:

Complaints not readilyorpersonally addressed
http://www.hillsideautomall.com/Smiley%20Face.jpg


50/81

E-pologies?

Email responseshould include

options/names &telephonenumbers for

further

assistance..

Tarp Research -

S i G t
http://www.tarp.com/index.htmlhttp://www.tarp.com/index.htmlhttp://www.massbenefits.com/images/email.jpghttp://www.wolfram.com/solutions/publishing/images/email.jpg


51/81

Service Guarantees

Relatively new w/respect to services.

Service guaranteesprovide bothconsumer &

business benefits:

Service Guarantee: Customer


52/81

Service Guarantee: CustomerBenefits

Customers perceivebetter value.

Lower perceived risk. Higher perceived

reliability

Reinforces customerloyalty

Service Guarantee:


53/81

Forces firm to focus on

customer.

States a clear performance goal. Provides measures for tracking

poor service.

Forces examination of servicedelivery system.

Source of pride.

Service Guarantee:Organizational Benefits

Critical Questions


54/81

Critical Questions

1. What is the debate all about

regarding how services should bedefined / envisioned?

o How does the definition of a service affect your

marketing strategy?

2. What are the key Ps to meetingservice management challenges?

3. What are some of the factors &considerations affecting the nearfuture of services marketing?


55/81

Exact nature of Future Changes


56/81

Exact nature of Future Changes-depends on nature of the Service

Network Information Services: banking,credit card, insurance, telecom

Retail

Hospitality: travel, restaurants, lodging,

leisure, hotels Labor & Expertise:

Business Support: administration-processes, consulting, customerservice

Personal & Professional: medical,legal, financial, technical assistance

UCTEnhanced

Self-

Service

Increasingly

OutsourcedIncreasinglyVirtualized

Ubiquitious ComPunication


57/81

Ubiquitious ComPunicationTechnologies

3G videophones w/broadband 2 megper second alwaysonline for self-service

Mobile Kiosks

AI Enhanced PDAdevices w/ speechrecognition & avatars

RFID everywhere & ineverything

RFID h & i


58/81

RFID- everywhere & ineverything

SmartCode making0.25mm chips

targetcost 5-10 cents ..w/

15-20 feetrange

Manufacturingcapacity10+ billion a year


59/81

UCT in Everything you wear-

washable garments w/miniaturized in-earspeakers /solar cells toprovide energy.

technology woven intofabric,

components allowing

many functions to bealmost `built in' to ourbodies, creating a`second skin'.


60/81


61/81

UCT Enhanced Jewelry

embed functionaltechnology into jewelry& body accessories --rings, necklaces,earrings, glasses andwatches. - -

for body adornment and

for more intimate anddiscreetcommunication,information gatheringand entertainment.

Invisible intelligent wireless


62/81

Invisible, intelligent wirelesstickets

Can be read in yourpocket at 25 metres

Ultra-wide bandfrequency

One-ticket fits all


63/81

RFID Shopping Apps

Future grocery

shopping-

integratedinfosystem

Exact nature of Future Changes-
http://www.youtube.com/watch?v=sSlEa1udYGwhttp://www.youtube.com/watch?v=sSlEa1udYGwhttp://www.youtube.com/watch?v=sSlEa1udYGwhttp://www.youtube.com/watch?v=sSlEa1udYGw


64/81

Exact nature of Future Changes-depends on nature of the Service

Network Information Services: banking,credit card, insurance, telecom

Retail

Hospitality: travel, restaurants, lodging,

leisure, hotels Labor & Expertise:

Business Support: administration-processes, consulting, customerservice

Personal & Professional: medical,legal, financial, technical assistance

UCTEnhanced

Self-

Service

Increasingly

OutsourcedIncreasinglyVirtualized

Predicting a diverse future: Directions


65/81

Predicting a diverse future: Directionsand issues in the marketing of servicesEuropean Journal of Marketing ; Bradford; 2002; Angus Laing

Driven bytechnologicaldevelopments,

deregulation, andglobalization- the service sector in

post-industrialeconomies is facingunprecedented

change

Increasing importance of
http://asimov.uaa.alaska.edu:2051/pqdweb?RQT=305&SQ=AUTHOR(Angus%20Laing)&SMR=1&SAid=0&SAName=sa_menu&JSEnabled=1&TS=1057690643http://asimov.uaa.alaska.edu:2051/pqdweb?RQT=305&SQ=AUTHOR(Angus%20Laing)&SMR=1&SAid=0&SAName=sa_menu&JSEnabled=1&TS=1057690643


66/81

Increasing importance oftechnological mediation

Virtual ExperiencesRedefining concept of-

Service Encounter

The Moment of Truth when aservice is delivered &

evaluated by consumer

Commodification d di d


67/81

Commodification standardized"off-the-shelf" service packages

Pre-Packaged, fill in

the blank, instant-

service forms &queries

Some Computer

generatedExpert-system managed

Responses

Professional Services
http://www.free-financial-advice.net/forums/index.php?s=8efe9dd11baf1db7a508b338f968d35f&http://freeadvice.com/


68/81

To date-- characterized by high levels of

limited/regulated interpersonal interaction

NOW- 24/7 access to

specialist technical

information, formerly thepreserve of professionals,

fundamentally changed the

informational asymmetries

which have conventionallycharacterized the delivery of

professional services

http://www.psychadvisor.co

m/counsel/index.cfmFree Advice on Any

Topic

Online From America's

EldersPersonal Reply to

Each Requestwww.ElderWisdomCircle.

org

Technologically driven productivity
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Technologically driven productivity

growth is-most important factor in

shaping employment in U.S. & everycountry in the world.

Productivity growth substitutes

technology &/or more efficienttechniques for physical & mental labor

Inventors & investors always figure outways to replace people with machines

Automation- 1,2,3

Restaurants without waiters
http://www.youtube.com/watch?v=-_SxW_7v9ishttp://www.youtube.com/watch?v=1O6vYiWABTAhttp://www.youtube.com/watch?v=B3NGN4t4hm4http://www.youtube.com/watch?v=B3NGN4t4hm4http://www.youtube.com/watch?v=1O6vYiWABTAhttp://www.youtube.com/watch?v=-_SxW_7v9ishttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlsc


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Restaurants without waiters

Ultimately most all your service
http://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlschttp://www.youtube.com/watch?v=b79pwb6Wlsc


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Ultimately most all your serviceneeds will be handled by & thruyour AI enhanced PDA

Withtheruthlessnessof


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With the ruthlessness ofSkynet in "The Terminator,"

computerization in the tertiarysector is now committing massDilberticide, replacingreceptionists with automatedphone systems and travelagents with services likePriceline. Why Dilbert is

doomedThe jobs of tomorrow are

not what you'd expect

Recession creating a lost generation

mechanization of agriculture& i i f d l b f
http://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://faculty.cbpp.uaa.alaska.edu/afef/recession_creating_a_lost_genera.htmhttp://faculty.cbpp.uaa.alaska.edu/afef/recession_creating_a_lost_genera.htmhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.html


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"secondaryproduction

"primaryproduction

& mining -- freed up labor forfactories

automation in manufacturingfreed up workers for-officework

Computers & AI in the office-

-free up workers for..?

"tertiaryproduction"

As it has always done in

the past, labor will shift

from more mechanized

to less mechanized

sectors. But what will

those jobs be?

The most numerous & stable jobs of tomorrow


74/81

cannot be automated require a high degree of creativity

& rely on the human touch in face-to-face

interactions

these are called "proximity services"& include fastest-growing occupations,

healthcare & education.

Since the recession began, healthcare has added

559,000 jobs. Even more remarkable, the averagemonthly gain of 22,000 jobs during 2009 has been

only slightly lower than the average increase of 30,000

jobs a month in 2008.

The most numerous & stable jobs of tomorrow

will be those that cannot be offshored

Why

Dilbert is

doomedThe jobs of

tomorrow

are notwhat you'd

expect
http://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.htmlhttp://mobile.salon.com/opinion/feature/2009/11/02/healthcare_employment/index.html


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Outsourcing of IT Services


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g $10.8 billion The value of IT

outsourcing contracts

signed in the first quarter of2005. Source: TPI Index

400,000 Number of servicejobs sent overseas since

2000. Source: The GoldmanSachs Group Inc.

3% Percentage of last year'stotal layoffs due to

offshoring. Source: U.S.Department of Labor

104,000 Number of IT jobslost due to offshore

outsourcing between 2000and 2003, equaling 2.8% ofU.S. IT jobs. Source:Information TechnologyAssociation of America

3.5 million Number of U.S.white-collar jobs movingoffshore by 2015, averaging200,000 a year. Source:Forrester Research Inc.

Where the Jobs Go!
http://images.google.com/imgres?imgurl=http://www.computerworld.com/computerworld/records/images/teaser/37KCednote_tan.gif&imgrefurl=http://www.computerworld.com/managementtopics/outsourcing&h=140&w=150&sz=14&tbnid=m8EN5RuAkF0J:&tbnh=84&tbnw=90&hl=en&start=5&prev=/images%3Fq%3Doutsourcing%26svnum%3D10%26hl%3Den%26lr%3Dlang_en%26rls%3DGGLD,GGLD:2004-27,GGLD:en%26sa%3DN


77/81

Where the Jobs Go!

0% 5% 10% 15% 20% 25% 30% 35% 40%

Singapore

Russia

Phillipines

MalaysiaCanada

Ireland

Mexico

China

India

Source: Computer world and Interunity Group, Inc., April & May 2003

Base: Survey of 252 corporate IT managers in the U.S.; multiple responses allowed

India graduates 300,000 ITengineers and 90,000 MBAs

per year


78/81


79/81


80/81

The Other Side of Outsourcing
http://youtube.com/watch?v=8quDb3FIUuohttp://youtube.com/watch?v=8quDb3FIUuohttp://youtube.com/watch?v=8quDb3FIUuo


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