ISS 2020 Vision Future of Service Management | Page 46

Differentiated
Relevant to
Customization
Customization
Customization
Make
goods
Extract
commodities
Stage
experiences
Deliver
services
Competitive position
Guide
transformation
Commoditization
Commoditization
Commoditization
Undifferentiated
Irrelevant to
Pricing
The transition from the service towards experience economy requires a greater focus on
authenticity from service providers.
Service providers will be expected to offer services that focus on and appeal to adventure,
history, culture, identity and an increasing interest in intellectual or spiritual activity. Service
providers will not only be expected to offer services, but also stage experiences and guide
transformations that are entertaining and educational in nature and align with the value
system of users. Understanding the user journey, and identifying and responding to their
challenges, ambitions, desires, and fears, will become an essential aspect of future Service
Management.
5.1.4 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
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Needs of users
Figure 14: Progression of economic value
(Source: Joseph Pine and James H. Gilmore, 2011)