How Changes in Technology Can Affect Service Organizations and Their Essay

How Changes in Technology Can Affect Service Organizations and Their Customers - Essay ExampleIn the modern era of technology it often turns out, that an organization that manages its ready reckoner data base the most efficient way is the prima(p) one in high tone customer gain. Technology introduces both major(ip) problems and major opportunities. In general, technology can be broadly defined as a kind of system of knowledge-based activities employed in the conversion of an input into a useful output. (DSouza, 1995) The influence of technology on service positioning, service design, service delivery and quality, customer satisfaction can hardly be overestimated.The very bone marrow of service provision type of business results in significant influence of high-tech environment on both quality of service provided and level of customer satisfaction. Services are produced and consumed simultaneously therefore, customers often personally contact the provider of the service, thus op ening an opportunity for an inter-personal relationship. (Lovelock, 2001) Going even further then this, service industry involves multiple service encounters over a period of time, thus require an ongoing relationship with the consumer (auto repair) or an ongoing membership (banking, insurance systems). (Lovelock, 2001) rightness in service delivery is largely dependent on interpersonal relationships with customer either on a short-term or on a long-term basis, whereas in recent eld many processes that used to be manual now are mechanized. This shifts the dependence of customer satisfaction and service quality on workforce quality to the dependence on quality of technology management. All five dimensions of service quality outlined in a journal article by Subhash C. Kundu and Jay A. Vora (2004) reliability, responsiveness, assurance, empathy, and tangibles are directly correlated with technology management.The quality improvement movement that has been so popular within the last f ew years is mainly driven by technological innovations. Over years technology began to outweigh all other factors that traditionally have been major constitutes of service quality. at long last the result might be that a service company, that is able to adjust to technological innovations and successfully implement them in service provision, will be the leading in the industry. It is stated far and wide, that the corporate success in the 21st century will largely depend on a companys ability to supplement feedback and to establish an ongoing dialogue with the consumer as a consequence. Technology will provide a basis for enduring customer relations that will be based on trust and commitment. (Rosello, 1997) Lovelock (2001) introduced the idea of the four quadrants of service types three of which emphasize the relationship with the individual when delivering a service services directed at peoples bodies, physical possessions, and intangible assets. The final quadrant, quadrant 3, r epresents services directed at peoples minds (education, radio, television) and in this case most of the times relationship is often with the organization kind of of a usual individualistic approach. Technological innovation by bringing in new channels of product delivery makes this idea questionable. (Prescott, 2003) It should be emphasized, that the categorizing offered by Lovelock is actually much more complex. In