ISS 2020 Vision Future of Service Management | Page 16

Economic growth & demographic development
Economic growth, globalization and changes in demography all represent complimentary
forces shaping the future service landscape. Meaning, greater diversity (in generation, culture,
gender, values, etc.) in a more global workforce and an expansive consumer pool is leading to
new user segments, each with their own service requirements and expectations. It also means
that much of the growth in the size of the service economy will not be driven by high income
countries, but by middle and low income countries, whose middle classes will soon have the
disposable income to seek experiences and fulfil their immaterial needs as the middle-classes
in high income countries have long done.
3.1.2 Trends in Service Management
In the future, service providers will need to prioritize the design of a service delivery system
that is built on an in-depth understanding of what creates value from a users’ perspective
and is aligned with buyers’ willingness to pay. The key elements of a successful Service
Management model in the future include a focus on service culture, employee engagement,
service quality and customer experience. 2 Surveyed service professionals indicate that service
culture, service quality and customer experience are the most underdeveloped areas in current
Service Management models with the greatest potential for improvement. 3
Trends are transforming Service Management in four key areas: Service landscape, service
strategy, service actors and service touch points. Service landscape refers to the way service
is defined and changes in the service market. Service strategy refers to the design and
changes in the service delivery process. Service touch points refer to the way service is
accessed and changes in service settings. Service actors refer to the way the service value
chain is organized and changes in the relationship dynamics between stakeholders.
Service landscape
The introduction of new technologies in parallel with new parameters of living is redefining
how we understand and use service. This emerging paradigm is characterized by the
everything-as-a-service (XaaS) mantra that is rapidly expanding beyond cloud computing and
the telecommunications sector. As one subject-matter expert noted, ”Service Management
as an industry is perpetually expanding...I believe that we will ’servicify’ everything.” 4 Indeed,
it is a movement that is about freedom from ownership – converting conventional products
and processes into service offerings that help buyers transition away from fixed costs towards
variable costs in life and in business. Buyers will increasingly expect service providers to
proactively anticipate their needs within a given set of circumstances and to offer a matching
service that reduces user complexity. 5
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Andersen, M., and Ankerstjerne, P., Service Management 3.0 – The Next Generation of Service, ISS White Paper, ISS World
Services, 2014.
CIFS; ISS, IFMA and CoreNet Global, ISS 2020 Vision: Future of Service Management, 2016.
Hohnen, M. ISS 2020 Vision: Future of Service Management, 2016.
Grönroos, C., ISS 2020 Vision: Future of Service Management, 2016.