7. Technology and its Impact on Services and Their Management
7.10. Summary of the Chapter
Services have traditionally been known for low productivity and the difficulty of substituting machines for humans. This is probably the main reason for the “productivity paradox” in services. During the past three decades service organizations as well as manufacturing firms made huge investments in information technology with no apparent increase in productivity in services. The most likely explanation for this paradox seems to be that the impact technology makes on productivity and profits depends on what managers and service workers do with it. In other words, technology may not be a magic wand that can be waved over poorly designed and inefficient ...
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