OPERATIONS

MANAGEMENT ICarolina Filter Cantos

Miguel Rueda Pérez

José Antonio Barrera García

OUTLINE

INTRODUCTION

GROWTH OF SERVICES

IMPACT OF TECHNOLOGY IN THE SERVICE SECTOR

SERVICE PAY

EXCITING NEW TRENDS IN OM

NEW TRENDS. SHARING ECONOMY

DEBATE: CALL CENTER CURRENT SITUATION

REFERENCES

INTRODUCTION

The service sector consists of the "soft" parts of the economy, i.e. activities where

people offer their knowledge and time to improve productivity, performance,

potential, and sustainability.

Education

Health

Entertainment

Government

Financial services

The basic characteristic of this sector is the production of services instead of end

products. Services (also known as "intangible goods") include attention, advice,

experience, and discussion.

The production of information is generally also regarded as a service, but some

economists now attribute it to a fourth sector, the quaternary sector.

GROWTH OF SERVICES

The world economy is increasingly classified as a service economy due to the

importance of services in developed and developing countries.

Indicator of a country's economic progress.

Largest economies sector postindustrial societies.

1900

Mostly agriculture

sector

Movement form farms to cities

Manufacturing employment has decreased in the

past 30 years

Services became the dominant

employer in the early 1920s

GROWTH OF SERVICES

We can observe that

since the 1920s the

service sector became

the most important

sector of the economy

arising nowadays

almost 80% of the

labor force.

As you can see there is

world trend to the blue

which means that the

services sector means an

important key factor for

the GDP composition.

IMPACT OF TECHNOLOGY IN THE SERVICE

SECTOR

What is technology?

According to:

Merriam-Webster: the use of science in industry, engineering, etc., to invent

useful things or to solve problems.

Oxford Dictionary: The application of scientific knowledge for practical

purposes, especially in industry: advances in computer technology.

Wikipedia: is the collection of tools, including machinery,

modifications, arrangements and procedures used by humans.

IMPACT OF TECHNOLOGY IN THE SERVICE

SECTOR

Services

Technology

Quaternary sector

IMPACT OF TECHNOLOGY IN THE SERVICE

SECTOR

What has it been the consequences of all of this?

The QUATERNARY SECTOR of the economy is a way to describe a

knowledge-based part of the economy which typically includes services such as

Information technology (IT)

R&D (particularly in scientific fields)

Consultancy (offering advice to businesses)

Financial services

IMPACT OF TECHNOLOGY IN THE SERVICE

SECTOR

We can observe

the emerge and

fast growth of this

new sector.

IMPACT OF TECHNOLOGY IN THE SERVICE

SECTOR

Information technology (IT) is the application of

computers and telecommunications equipment to store,

retrieve, transmit and manipulate data.

Several industries are associated with information technology,

including computer hardware, software, electronics,

semiconductors, internet, telecom equipment, e-commerce and

computer services.

Their definition consists of three categories: techniques for

processing, the application of statistical and mathematical methods

to decision-making, and the simulation of higher-order thinking

through computer programs.

IMPACT OF TECHNOLOGY IN THE SERVICE

SECTOR

IMPACT OF TECHNOLOGY IN THE SERVICE

SECTOR

Quinary Sector:

Some consider there to be a branch of the quaternary sector called the quinary

sector, which includes the highest levels of decision making in a society or

economy. This sector would include the top executives or officials in such fields

as government, science, universities, nonprofit, healthcare, culture, and the

media.

For example, the governmental decision to seek bids on a new military fighter

plane, considerations of the efficacy of human cloning or the creation of the

Environmental Protection Agency (EPA).

Primary

Secondary

Tertiary

Quaternary

Quinary

IMPACT OF TECHNOLOGY IN THE SERVICE

SECTOR

Quinary Sector: HIGHEST

LEVEL OF DECISION MAKING

IMPACT OF TECHNOLOGY IN THE SERVICE

SECTOR

CALL CENTERS

It is a centralized office used for the purpose of receiving or transmitting a large

volume of requests by telephone.

Inbound call centers are operated by a company to administer incoming product

support or information inquiries from consumers.

Outbound call centers are operated for telemarketing, solicitation of charitable

or political donations, debt collection and market research. In addition to a call

center, collective handling of letter, fax, live support software, social media and

e-mail at one location is known as a contact center.

IMPACT OF TECHNOLOGY IN THE SERVICE

SECTOR

CALL CENTERS TECHNOLOGY

Tools for telephone switch functionality

Intelligent routing

Automatic call distribution

Interactive voice response (IVR)

Outbound dialing

Voice mail

SERVICE PAY

Common perception that services industries are low paying but in fact it is

not.

Many service jobs are paid very well for example:

Operation managers who supervise computer services to the financial

community.

Operation managers in the maintenance facility of an airline.

42% of all service workers receive wages above the national average (US)

EXCITING NEW TRENDS IN OPERATIONS

MANAGEMENT

OM managers operate in a exciting and dynamic environment.

This environment is a result of a variety of challenging forces.

Ethics

Global focus

Rapid product development

Environmentally sensitive production

Mass customization

Empowered employees

Supply chain partnering

Just in-time-performing

EXCITING NEW TRENDS IN OPERATIONS

MANAGEMENT

TRADITIONAL APPROACH REASONS FOR CHANGE CURRENT CHALLENGES

Ethics and regulations not at

the forefront

Public concern over

pollution, corruption, child

labor, etc.

High ethical and social

responsibility; increase legal

and professional standards

Local, regional, national

focus

Growth of reliable, low cost

communication and

transportation.

Global focus; international

collaboration

Lengthy product

development

Shorter life cycles; growth of

global communication;

internet

Rapid product development;

design collaboration

Low cost production, with

little concern for

environment; free resources

ignore (air, water)

Public sensitivity to

environment; ISO 14000

standard; increasing disposal

cost

Environmentally sensitive

production; green

manufacturing; sustainability

EXCITING NEW TRENDS IN OPERATIONS

MANAGEMENT

TRADITIONAL APPROACH REASONS FOR CHANGE CURRENT CHALLENGES

Low cost standard productsRaise of consumerism; increase

affluence; individualismMass customization

Emphasis on specialized, often

manual tasks

Recognizing the importance of

the employees’ total

contribution. Knowledge society

Empowered employees;

enriched jobs

“In-house” production; low-bid

purchasing

Rapid technology change;

increasing competitive force

Supply chain partnering; joint

ventures, alliances

Large lot productionShorter product life; increasing

needs to reduce inventories

Just-in-time performance;

learn; continuous improvement

NEW TRENDS. SHARING ECONOMY

The Sharing Economy is a socio-economic ecosystem built around the

sharing of human and physical resources.

It includes the shared creation, production, distribution, trade and

consumption of goods and services by different people and organizations.

The Sharing Economy encompasses the following aspects:

Exchanging

Collective purchasing

Collaborative consumption

Shared ownership

Shared value

Recycling

SHARING ECONOMY: TRIP4REAL

Trip4real works to offer the world unique and quality activities created by local

experts so that the travelers can know and enjoy the most authentic part of a country

as marvelous as Spain.

SHARING ECONOMY: TED COLLABORATIVE

ECONOMY

Shane is a REconomist, entrepreneur,

environmentalist and dreamer. He left

the UK at 17 to discover the world,

without money, direction or date of

return just a fascination for big questions

like "is a better world possible?"

20 years later, his current work with the

Transition Network's REconomy Project

exposes him to the rise of the new

economy and a possible answer.

DEBATE: CALL CENTER CURRENT

SITUATION

Press Releases: Movistar’s call centers come back to Spain from Latin America to

recover its costumers’ confidence who were unhappy with the services provided

by for foreign staff.

Atento which is the outsource company of Movistar’s call centers, still has

15,000 employees in Spain and 120,000 in Latin America.

Do you have any anecdote regarding call center?

Have you been attended by national or foreign staff?

Share your experiences…

REFERENCES

BOOKS:

Heizer, J; Render, B. Operations Management. Prentice Hall. (2006).

Stevenson, W.J. Operations Management. McGraw-Hill. (2007).

WEBSITES FOR THE RESEARCH:

Academia.edu

Atento.com

Trip4real.com

Comunidad.movistar.com

Ted.com

Thank you for your attention!