"Commoditization of Processes; Services Revolution; "Work of Nations""

Essay by tchiudaUniversity, Master'sA, October 2007

download word file, 4 pages 0.0

Case comparison table:CriteriaCommoditization of ProcessesServices Revolution“Work of Nations”Sequence of the activities as impacted by the trendInformation technology à human recourse administration à finance and accounting functions à and finally manufacturingInput service (data entry, credit card processing) à business service (IT, market research, content management) à administrative work (accounting, tax returns, data management. Billing, customer services) à other information inten-sive fields (engineering, manage-ment, publishing, financial services)Routine factory jobs à routine office jobs (claims adjustment, mortgage processing) à call centers, tech support, computer coding à jobs involved in patient applications, divorce papers, domains of research à software programmers, engineers, designers and researchersWinners and losers of the new economy and reasons why they’ve become suchW: companies: increase their on-time delivery, reduce inventory, reduce material acquisition and other costs, improve their processes, make their balance sheets leaner, gain flexibility and access to the specialized expertise. L: process services providers: commoditization of the services will lead to more competitors and lower prices.

Differentiation will be inevitable to protect their marginsW: customers will gain flexibly and convenience as well as lower costs, greater choice, more control, higher touch and higher quality services. Outsourcing company enjoys economies of scale, easy maintenance and volume purchasingN: Company loses some revenue, but gains by outsourcing operation that is not core, and saving themselves complex procedures out of their main scopeL: professionals who’s work can be substituted by automatizationW: global symbolic analysts: worldwide commerce’s size and complexity requires knowledge and connections above existing commercial or legal systems. N: personal service workers: populations aging, busy people get other to do lots of functions, but immigration and flow of production workers keeps the pace. L: national symbolic analysts: university trained professionals opera-ting within national economy. They begin loosing their ground, because their opponents on the other continents overtakes contracts with experience and knowledge...