Service Science, Management and Engineering Education for the 21st Century by Bill Hefley pdf

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Service Science, Management and Engineering Education for the 21st Century by Bill Hefley and Wendy Murphy pdf

Service Science, Management and Engineering Education for the 21st Century by Bill Hefley and Wendy Murphy pdf free download. If you look at IBM’s business last year, services revenues were roughly over 50%, while systems (hardware) and software revenues were around 25% and 20% respectively. But services constituted around one-third of the company’s profit, for a very simple reason. Systems and software products leverage technology assets and apply engineering principles to improve quality, scale-up capacity, and achieve higher productivity and profit margins. Services, on the other hand, have historically been significantly more labor-based, less prone to economies of scale, subject to higher quality variations, and generally less productive and profitable.

Service Science, Management and Engineering Education for the 21st Century by Bill Hefley and Wendy Murphy pdf

The picture is similar across most businesses around the world. Services are an increasing portion of their revenues, but they are more labor-intensive than their product-based revenues and therefore not as profitable. Another way to appreciate the increased importance of services is to look at the three main sectors into which economies are usually grouped – the service, industrial and agriculture sectors. The service sector already accounts for more than 75% of the labor force in the US and UK, with the industrial sector being around 20% and agriculture in low single digits.

Service Science, Management and Engineering Education for the 21st Century by Bill Hefley and Wendy Murphy pdf

In other developed countries like Japan, Germany and France, services are more than two thirds of the labor force, and in Brazil, Russia and South Korea they are well over fifty percent. While huge progress has been made in the productivity of the industrial and agricultural sectors, the service sector has lagged far behind. A few years ago we started a major initiative across IBM’s technical community to better understand the nature of services, with particular focus on how to improve their productivity at IBM and in our clients’ businesses around the world.

Service Science, Management and Engineering Education for the 21st Century by Bill Hefley and Wendy Murphy pdf

We wanted to bring to bear on services the kinds of engineering, scientific and management disciplines that have been so successful in systems and software in the IT industry, as well as in the industrial and agricultural sectors of the economy. We therefore gave our initiative the somewhat unwieldy though academically inclusive name of Services Sciences, Management and Engineering, or SSME. Over time we decide to use the term Services Sciences. What are services – anyway? It is very interesting that while services are increasingly important to so many companies as well as the dominant sector of the economy, its nature is not well understood. A while back The Economist defined a service as anything sold in trade that cannot be dropped on your foot1 .

Service Science, Management and Engineering Education for the 21st Century by Bill Hefley and Wendy Murphy pdf

Beyond something that you cannot drop on your foot, we can all agree that services is all about people and organizations performing tasks for each other, such as providing medical treatment, selling products and solutions and making sure customers are satisfied. As we continue to standardize and automate back-office operations, it is not surprising that the front-office, market-facing activities involving people, – i.e., services – have become the largest and fastest growing components of any business, not just businesses in the service sector, but also those in the industrial and agricultural sectors.

Service Science, Management and Engineering Education for the 21st Century by Bill Hefley and Wendy Murphy pdf

Service Science, Management and Engineering Education for the 21st Century by Bill Hefley and Wendy Murphy pdf

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