Rust & Huang - Service Revolution

Question 1

The effect of advanced IT on the service revolution

Answer 1

1 - ubiquitous customer communication, SM, WOM, etc.
2 - big data storage cheaper and processing faster -> big data

=> results in better, more personalized services
=> leads to deeper customer relationship
=> more profitable customers
=> expansion of service economy

Question 2

What are the substantial areas of the service revolution ?

Answer 2

(1) how to understand big customer data best
(2) how best to personalize service
(3) service quality–productivity tradeoffs in the application of IT
(4) the impact of IT on customer relationships
(5) the impact of deeper customer relationships on the expansion of service at both the firm and economy levels