Service productivity gains through information and communication technology applications: a service marketing approach Online publication date: Fri, 28-Dec-2007
by Christian Kowalkowski
International Journal of Knowledge Management Studies (IJKMS), Vol. 2, No. 1, 2008
Abstract: Based on examples from Information and Communication Technology- (ICT-) based improvements in service productivity in the service organisations of three manufacturing firms, this paper argues for a service-centred approach towards productivity. When improving the productivity of industrial services, one of the three profitability-generating strategies, cost-efficiency, revenue effectiveness and capacity utilisation – or a combination – can be used. Increased standardisation and automation is a consequence of technological development, making capacity less a constraint in services and even if ICT applications often primarily improve cost efficiency, the elements improved vary depending on the solution implemented. Thus, ICT can enhance existing service processes and enable new service offerings to increase overall profitability. A productivity model for ICT-based services is presented and it is suggested that central coordination is often required in order to develop ICT-based services.
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