How Changes in Technology Can Affect Service Organizations and Their Essay

How Changes in Technology Can Affect Service Organizations and Their Customers - Essay Example In the modern era of technology it often turns out, that an organization that manages its computer data base the most efficient way is the leading one in high quality customer service. Technology introduces both major problems and major opportunities. In general, technology can be broadly defined as a kind of system of knowledge-based activities employed in the conversion of an input into a useful output. (D'Souza, 1995) The influence of technology on service positioning, service design, service delivery and quality, customer satisfaction can hardly be overestimated. The very essence of service provision type of business results in significant influence of high-tech environment on both quality of service provided and level of customer satisfaction. Services are produced and consumed simultaneously; therefore, customers often personally contact the provider of the service, thus opening an opportunity for an inter-personal relationship. (Lovelock, 2001) Going even further then this, service industry involves multiple service encounters over a period of time, thus require an ongoing relationship with the consumer (auto repair) or an ongoing membership (banking, insurance systems). (Lovelock, 2001) Excellence in service delivery is largely dependent on interpersonal relationships with customer either on a short-term or on a long-term basis, whereas in recent years many processes that used to be manual now are mechanized. This shifts the dependence of customer satisfaction and service quality on workforce quality to the dependence on quality of techn ology management. All five dimensions of service quality outlined in a journal article by Subhash C. Kundu and Jay A. Vora (2004): reliability, responsiveness, assurance, empathy, and tangibles are directly correlated with technology management.The quality improvement movement that has been so popular within the last few years is mainly driven by technological innovations. Over years technology began to outweigh all other factors that traditionally have been major constitutes of service quality. Eventually the result might be that a service company, that is able to adjust to technological innovations and successfully implement them in service provision, will be the leading in the industry. It is stated far and wide, that the corporate success in the 21st century will largely depend on a company's ability to leverage feedback and to establish an ongoing dialogue with the consumer as a consequence. Technology will provide a basis for enduring customer relations that will be based on t rust and commitment. (Rosello, 1997) Lovelock (2001) introduced the idea of the four quadrants of service types three of which emphasize the relationship with the individual when delivering a service: services directed at people's bodies, physical possessions, and intangible assets. The final quadrant, quadrant 3, represents services directed at people's minds (education, radio, television) and in this case most of the times relationship is often with the organization instead of a usual individualistic approach. Technological innovation by bringing in new channels of product delivery makes this idea questionable. (Prescott, 2003) It should be emphasized, that the categorizing offered by Lovelock is actually much more complex. In