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control systems (which include power train, traction, and stability-control modules) can be
done remotely. These updates save customers trips to the dealership for recommended
or recall-mandated updates. 28 Tesla is another automobile manufacturer that routinely
updates the software of its vehicles to increase performance and vehicle capabilities. Such
improvements include increasing horsepower and autopilot capabilities.
There are however are risks in relying too heavily or solely on technological solutions in Service
Management:“ 29 Service leaders should recognize that technology, just like funding, facilities,
even their workforce, enable the organization’s ability to provide the goods and services it’s
responsible for delivering to the end-user and other stakeholders.” 30
While technology is a central driver of change, one cannot ignore the value of the human
factor in the services industry, nor neglect the service experience dimension that goes
along with it: “Business is based on relationships, and long-term relationships are critical
to the success of any service-providing organisation. Unfortunately, there’s still not enough
emphasis placed on establishing connections with other people based on trust, respect and
honesty, all considered vital for developing successful long-term relationships with customers
as well as business partners.” 30
In addition, technological solutions are easy to copy. 31 As one interviewed subject-matter
expert said, “I believe that you are extremely vulnerable if you reduce your business model to
”an app” because competitors will sooner or later copy you. It is as simple as that. You have,
in effect, turned your service into a commodity” 31
Technology development may also lead to increased anonymity and as a result, reduced user
loyalty to any one specific provider or platform: “The main challenge for me is that when you
reduce your service to technology, you risk creating distance to the customers. I mean, you
could be loyal to an app, for example, but you have no idea who the company is behind it,
and if you find ‘a better app’, you will choose that.” 31
What will be important for service providers is to assume key roles in the ecosystem in which
they choose to operate and where they can apply excellent service experiences at the right
touch points. As one subject-matter expert remarked, “with the emergence of artificial
intelligence, we begin to get intelligent systems, robots, etc., and that leaves some users
hungry after some human contact.” 32 This requires finding the suitable balance between
the human touch and technology-based solutions, as well as adequately fulfilling the new
workforce requirements that such new technologies bring – attracting, integrating and
retaining the talent able to thrive in a technology-driven service world. 33
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Henschen, D., Microsoft Azure Drives Ford Hybrid-Cloud Plan, Informationweek.com 2015.
Williams, A., Mitchell, T. Bechmann, S., ISS 2020 Vision: Future of Service Management, 2016.
Mitchell, T., ISS 2020 Vision: Future of Service Management, 2016.
Bechmann, S., ISS 2020 Vision: Future of Service Management, 2016.
Hohnen, M., ISS 2020 Vision: Future of Service Management, 2016.
Staffeldt, S. ISS 2020 Vision: Future of Service Management, 2016.