Emerging Service Environment

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    Course WeightageCourse Weightage

    Internal AssessmentInternal Assessment

    OLT 1 10 %OLT 1 10 %

    OLT 2 10%OLT 2 10%

    Group Project 20 %Group Project 20 %

    Mi Term 10%Mi Term 10%

     Total !0% Total !0%

    "inal #$am !0%"inal #$am !0%

    Gran Total 100%Gran Total 100%

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     The #merging er&ice The #merging er&ice#n&ironment#n&ironment

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    ome e$amples o' er&iceome e$amples o' er&ice

    InustriesInustries

      ((

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    er&ice classi)e accoring toer&ice classi)e accoring to

    major 11 categoriesmajor 11 categories er&ices are e$tremel* heterogeneouser&ices are e$tremel* heterogeneous

    an &arie+ GAT ienti)es 1!! acti&itiesan &arie+ GAT ienti)es 1!! acti&ities

    as ser&ices in 11 major categories ,as ser&ices in 11 major categories ,  -usiness ser&ices-usiness ser&ices

      CommunicationCommunication

      Construction an #ngineeringConstruction an #ngineering  .istri/ution.istri/ution

      #ucation#ucation

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    #n&ironment#n&ironment

    "inance"inance

    ealthealth

     Tourism Tourism ecreationecreation

     Transport Transport

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     er&ices e)nitioner&ices e)nition

    omething that can /e /ought anomething that can /e /ought an

    sol /ut that cannot /e roppe onsol /ut that cannot /e roppe on

    *our 'oot3+*our 'oot3+++

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      hort an snapp* /ut not too help'ul+hort an snapp* /ut not too help'ul+

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    Wor4ing e)nition o'Wor4ing e)nition o'

    er&iceer&ice

     

    er&ices are acti&ities or /ene)ts thater&ices are acti&ities or /ene)ts that

    one part* can o5er another that areone part* can o5er another that are

    essentiall* intangi/le an o notessentiall* intangi/le an o not

    result in the o6nership o' an*thingresult in the o6nership o' an*thing

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    Classi)cation o' er&iceClassi)cation o' er&ice

    organi7ations /* o6nership anorgani7ations /* o6nership an-usiness O/jecti&es-usiness O/jecti&es

      Go&ernment 8on 9Go&ernment 8on 9

    Go&ernmentGo&ernment

      "or pro)t Go&ernment 8on :"or pro)t Go&ernment 8on :

    go&ernmentgo&ernment

      8on 9pro)t Go&t+ non pro)t 8on go&t+: non8on 9pro)t Go&t+ non pro)t 8on go&t+: non

    pro)tpro)t

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    "our -roa Categories o'"our -roa Categories o'

    er&iceser&ices -ase on i5erences in nature o' ser&ice act-ase on i5erences in nature o' ser&ice act

    ;tangi/le

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    "our Categories o' er&ices"our Categories o' er&ices

    #mplo*ing .i5erent ?nerl*ing Processes#mplo*ing .i5erent ?nerl*ing Processes

      People Processing Possession Processing

      Mental StimulusProcessing

    Information Processing(directed at intangible assets)

    e.g., airlines, hospitals,

    haircutting, restaurants hotels,

    fitness centers

     e.g., freight, repair,cleaning, landscaping,

    retailing, recycling

    e.g., broadcasting, consulting,

    education, psychotherapy

    e+g+> accounting> /an4ing>insurance> legal> research

     TA8GI-L#ACT

    I8TA8GI-L#

    ACT

    .I#CT#. AT P#OPL# .I#CT#. AT PO#IO8

    What is the

    Nature of the

    Service Act?

      Who or What is the Direct Recipient of the Service?

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    ==

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    teps in trans'orming an inustrialteps in trans'orming an inustrial

    societ* into a post : inustrial societ*societ* into a post : inustrial societ*

    1+1+ #$pansion o' ser&ices such as transportation#$pansion o' ser&ices such as transportation

    an pu/lic utilities is neee 'or thean pu/lic utilities is neee 'or thee&elopment o' inustr* an istri/ution o'e&elopment o' inustr* an istri/ution o'

    goos+goos+

    2+2+ Mass consumption o' goos an populationMass consumption o' goos an populationgro6th re@uire an e$pansion o' 6holesale angro6th re@uire an e$pansion o' 6holesale an

    retail ser&ices> as 6ell as ser&ices such asretail ser&ices> as 6ell as ser&ices such as

    )nance> real estate an insurance+)nance> real estate an insurance+

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    + As personal incomes rise> the %age o' mone*+ As personal incomes rise> the %age o' mone*e&ote to 'oo eclines+ Increments in incomee&ote to 'oo eclines+ Increments in incomeare )rst spent 'or ura/le consumer goos suchare )rst spent 'or ura/le consumer goos such

    as housing> automo/iles an appliances+as housing> automo/iles an appliances+

      "urther increases in income are spent on ser&ices"urther increases in income are spent on ser&icessuch as eucation> health care> &acations> tra&el>such as eucation> health care> &acations> tra&el>

    restaurants> sports an entertainment+restaurants> sports an entertainment+

      This tenenc* leas to the gro6th o' the personal This tenenc* leas to the gro6th o' the personalser&ices sector+ser&ices sector+

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    General reasons 'or gro6th inGeneral reasons 'or gro6th in

    ser&ices across the 6orlser&ices across the 6orl Increase in eBcienc* o' agriculture anIncrease in eBcienc* o' agriculture an

    manu'acturing that releases la/our to ser&icesmanu'acturing that releases la/our to ser&ices

    ++  The o6 o' 6or4ers 'rom agriculture an other The o6 o' 6or4ers 'rom agriculture an other

    e$traction to manu'acturing an then to ser&ices+e$traction to manu'acturing an then to ser&ices+

     The application o' comparati&e a&antage in The application o' comparati&e a&antage in

    international trae+international trae+

    A rise in per capita income+A rise in per capita income+

     

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    An increase in ur/ani7ationAn increase in ur/ani7ation

    .eregulation.eregulation

    .emographic shi'ts.emographic shi'ts

    An increase in international traeAn increase in international trae

     Doint s*m/iotic gro6th o' ser&ices an manu'acturing Doint s*m/iotic gro6th o' ser&ices an manu'acturing

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    easons 'or gro6theasons 'or gro6th

      Affluence : The huge per capita increase in income: from1950 to the present Affluence : The huge per capita increase in income: from1950 to the presentday is an indicator of increase in general affluence levels.day is an indicator of increase in general affluence levels.  IniaEs per capitaIniaEs per capitaincome rose /* F+ per cent to s HH>! in the last 'our *ears toincome rose /* F+ per cent to s HH>! in the last 'our *ears to201:1!201:1!( est control, personal security, interior design!.( est control, personal security, interior design!.

      "eisure time : eople have some spare time for travel and holidaying. #ence"eisure time : eople have some spare time for travel and holidaying. #encetravel agencies, resorts, hotels, entertainment.travel agencies, resorts, hotels, entertainment.

    $thers %ould li&e to use this time to enhance their career prospects. #ence$thers %ould li&e to use this time to enhance their career prospects. #enceeducation, distance learning, part ' time courses.education, distance learning, part ' time courses.

     

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    "ife epectancy : #ealth programmes have contributed"ife epectancy : #ealth programmes have contributedsignificantly to increase in life epectancy, hence old agesignificantly to increase in life epectancy, hence old agehomes, nursing homes, health care, insurance etc.homes, nursing homes, health care, insurance etc.

    Wor4ing Wi&es, Increase in num/ers o' 6or4ingWor4ing Wi&es, Increase in num/ers o' 6or4ing6omen has triggere an increase in a* care 'acilities6omen has triggere an increase in a* care 'acilities'or chilren> pac4e 'oo an home eli&er*+'or chilren> pac4e 'oo an home eli&er*+

    Prouct Comple$it* , Gro6th o' a large num/er o'Prouct Comple$it* , Gro6th o' a large num/er o'proucts that can onl* /e ser&ice /* speciali7eproucts that can onl* /e ser&ice /* speciali7epersons eg 6ashing machines> 6ater puri)ers> homepersons eg 6ashing machines> 6ater puri)ers> homecomputers etc+ neeing a'ter : sales ser&ice>computers etc+ neeing a'ter : sales ser&ice>maintenance etc+maintenance etc+

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    Li'eEs comple$it* , As ail* routines getLi'eEs comple$it* , As ail* routines get/usier> ini&iuals )n it iBcult to manage/usier> ini&iuals )n it iBcult to manage

    things on their o6n+ ence ta$ consultants>things on their o6n+ ence ta$ consultants>legal a&isors> insurance consultants>legal a&isors> insurance consultants>propert* a&isors etc+propert* a&isors etc+

    esource scarcit* an ecolog* ,With epletingesource scarcit* an ecolog* ,With epletingnatural resources > nee 'or conser&ationnatural resources > nee 'or conser&ationincreases+ ence pollution control agencies>increases+ ence pollution control agencies>car pools> 6ater management etc+car pools> 6ater management etc+

    8e6 proucts + IT has gi&en rise to PCOs>8e6 proucts + IT has gi&en rise to PCOs>pager ser&ice pro&iers> 6e/ shoppe etc+pager ser&ice pro&iers> 6e/ shoppe etc+

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    The contribution of the )ervices )ector in theThe contribution of the )ervices )ector in the*ndian + has also increased very rapidly as*ndian + has also increased very rapidly asmany foreign consumers have sho%n interest inmany foreign consumers have sho%n interest in

    the country-s service eports.the country-s service eports.

    This is due to the fact that *ndia has a large poolThis is due to the fact that *ndia has a large pool

    of highly s&illed, lo% cost, and educated %or&ersof highly s&illed, lo% cost, and educated %or&ersin the country. This has made sure that thein the country. This has made sure that theservices that are available in the country are ofservices that are available in the country are ofthe best uality.the best uality.

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    "oreign companies seeing this ha&e"oreign companies seeing this ha&e

    outsource their 6or4 to Inia speciall* inoutsource their 6or4 to Inia speciall* in

    the area o' /usiness ser&ices 6hich incluesthe area o' /usiness ser&ices 6hich inclues/usiness process outsourcing an/usiness process outsourcing an

    in'ormation technolog* ser&ices+in'ormation technolog* ser&ices+

     This has gi&en a major /oost to the er&ices This has gi&en a major /oost to the er&icesector in Inia> 6hich in its turn has maeector in Inia> 6hich in its turn has mae

    the sector contri/ute more to the Inia G.P+the sector contri/ute more to the Inia G.P+

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     The Changing Indian CustomerThe Changing Indian Customer

     

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     Things are changing+ Although Things are changing+ Althoughattitues remain comple$> the* ha&eattitues remain comple$> the* ha&e

    shi'te su/stantiall* to6arshi'te su/stantiall* to6ar

    consumerism> particularl* o&er theconsumerism> particularl* o&er thepast ecae+ The countr*Es recentpast ecae+ The countr*Es recent

    economic per'ormance is a 'actor> o'economic per'ormance is a 'actor> o'

    coursecourse

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     The populationEs emographic pro)le The populationEs emographic pro)le

    also pla*s a role, Inians constitute aalso pla*s a role, Inians constitute a

    )'th o' the 6orlEs citi7ens /elo6 age)'th o' the 6orlEs citi7ens /elo6 age

    20+ o a *outh'ul> e$u/erant20+ o a *outh'ul> e$u/erant

    generation> 6eane on success> isgeneration> 6eane on success> is joining the ran4s o' Inian consumers+ joining the ran4s o' Inian consumers+

    Main )nings in a ar&ar -usinessMain )nings in a ar&ar -usiness

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    Main )nings in a ar&ar -usinessMain )nings in a ar&ar -usiness

    e&ie6 esearch Paper @uoting Gallupe&ie6 esearch Paper @uoting Gallup

    ur&e*ur&e*

    Indians are getting more materialistic.Indians are getting more materialistic.

    Inians are o'ten stereot*pe as eepl*Inians are o'ten stereot*pe as eepl*

    spiritual people 6ho reject materialisticspiritual people 6ho reject materialistic

    &alues+ Our research suggests that this&alues+ Our research suggests that this

    stereot*pe no longer reects realit*+ "orstereot*pe no longer reects realit*+ "or

    instance> almost hal' o' IniaEs ur/aninstance> almost hal' o' IniaEs ur/anpopulation ha aopte a 6or4 har anpopulation ha aopte a 6or4 har an

    get rich3 ethos /* 1JJK another J% haget rich3 ethos /* 1JJK another J% ha

    one so /* 200+one so /* 200+

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     Consumerism is becoming a way of life inConsumerism is becoming a way of life inIndia.India.

    An anal*sis o' IniansE sa&ings goalsAn anal*sis o' IniansE sa&ings goalsunerscores the increase in materialism+unerscores the increase in materialism+Although long:term plans remain a highAlthough long:term plans remain a highpriorit*> li'eEs pleasures in the here an no6priorit*> li'eEs pleasures in the here an no6ha&e gaine importance o&er the pastha&e gaine importance o&er the pastecae+ecae+

     IniansE esire to set mone* asie 'orIniansE esire to set mone* asie 'or

    electronics an ura/les has gro6n soelectronics an ura/les has gro6n soramaticall* that it has nearl* caught up 6ithramaticall* that it has nearl* caught up 6iththeir esire to sa&e 'or their chilrenEstheir esire to sa&e 'or their chilrenEseucation+ Tra&el an entertainment ha&eeucation+ Tra&el an entertainment ha&e

    also gaine groun+also gaine groun+

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     This tren oes not appl* onl* to the *oung This tren oes not appl* onl* to the *oungit hols true 'or people age 1! to !!+ An it isit hols true 'or people age 1! to !!+ An it isnot merel* a large:cit* phenomenonK peoplenot merel* a large:cit* phenomenonK people

    in smaller to6ns ha&e these &alues as 6ell+in smaller to6ns ha&e these &alues as 6ell+

    Among ura/le goos> high:tech lu$ur* itemsAmong ura/le goos> high:tech lu$ur* itemsare increasingl* in eman+ The num/er o'are increasingl* in eman+ The num/er o'

    Inians 6ho o6n or use mo/ile phones> 'orInians 6ho o6n or use mo/ile phones> 'ore$ample> has gro6n 1>00%not surprising ine$ample> has gro6n 1>00%not surprising ina countr* that is aing more than milliona countr* that is aing more than millionsu/scri/ers a month+su/scri/ers a month+

     The num/er o' people 6ho o6n or use The num/er o' people 6ho o6n or usecomputers or laptops is up 100%+ O6nershipcomputers or laptops is up 100%+ O6nershipo' music s*stems an tele&isions is also ono' music s*stems an tele&isions is also onthe rise+the rise+

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      Foreign is out; Indian isForeign is out; Indian is

    paramount.paramount.

    Inians long /elie&e in theInians long /elie&e in the

    o&er6helming supremac* o' all thingso&er6helming supremac* o' all things

    'oreign+ Anti@uate proucts an'oreign+ Anti@uate proucts antechnologies> 6ell past their sell /*3technologies> 6ell past their sell /*3

    ate in more e&elope nations> 6ereate in more e&elope nations> 6ere

    once lappe up /* Inian consumers+once lappe up /* Inian consumers+8o6> though> 6ith Inians succeeing8o6> though> 6ith Inians succeeing

    on the glo/al economic stage> Maeon the glo/al economic stage> Mae

    in Inia3 is no longer an apolog*+in Inia3 is no longer an apolog*+

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    While IniansE con)ence in 'oreignWhile IniansE con)ence in 'oreigncompanies has remaine essentiall*companies has remaine essentiall*static> their 'aith in omestic companiesstatic> their 'aith in omestic companieshas gro6n+ In 1JJ> onl* % o' thosehas gro6n+ In 1JJ> onl* % o' thosesur&e*e e$presse con)ence in Iniansur&e*e e$presse con)ence in IniancompaniesK in 200> !% i+ InianscompaniesK in 200> !% i+ Iniansreali7e that not all 'oreign goos arereali7e that not all 'oreign goos are

    per'ectl* suite to their tastes an nees+per'ectl* suite to their tastes an nees+ The* ha&e /ecome iscerning consumers The* ha&e /ecome iscerning consumers6ho 6ant proucts that are mae in Inia6ho 6ant proucts that are mae in Iniaan 'or Inians+an 'or Inians+

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    A loo4 at the most respecte /rans in IniaA loo4 at the most respecte /rans in Iniais signi)cant+ O' the top 20 name in ais signi)cant+ O' the top 20 name in a

    sur&e*> eight are Inian> incluing namessur&e*> eight are Inian> incluing namesli4e Tata> Gorej> an -ajaj+ Onl* )&e o' theli4e Tata> Gorej> an -ajaj+ Onl* )&e o' thetop 20 are ne6 'oreign /rans+top 20 are ne6 'oreign /rans+

     These ha&e succeee /ecause the* ha&e These ha&e succeee /ecause the* ha&ecustomi7e technolog* to meet Iniancustomi7e technolog* to meet Iniannees+ utch> 8o4ia> an amsung ha&enees+ utch> 8o4ia> an amsung ha&eone this particularl* 6ell+ 8o4ia moi)eone this particularl* 6ell+ 8o4ia moi)eone o' its mo/ile phones /* aing a /uilt:inone o' its mo/ile phones /* aing a /uilt:in

    ashlight that truc4 ri&ers> 'or instance>ashlight that truc4 ri&ers> 'or instance>)n use'ul on poorl* lit high6a*s+)n use'ul on poorl* lit high6a*s+Iniani7ing3 also has to o 6ith 4eepingIniani7ing3 also has to o 6ith 4eepingprices at le&els that are managea/le 'or theprices at le&els that are managea/le 'or thea&erage Inian consumer+a&erage Inian consumer+

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    e&en o' the top /rans came 'rom 6ell:e&en o' the top /rans came 'rom 6ell:

    esta/lishe M8Cs that 6ere eitheresta/lishe M8Cs that 6ere either

    thoroughl* inigeni7e or in&ol&e in athoroughl* inigeni7e or in&ol&e in a

     joint &enture that gi&es them the joint &enture that gi&es them thea&antages o' /oth 6orlsa&antages o' /oth 6orls

    customi7ation o' proucts 'or Inia 6ithcustomi7ation o' proucts 'or Inia 6ith

    le&els o' @ualit* an technolog*le&els o' @ualit* an technolog*

    associate 6ith international companies+associate 6ith international companies+

    8ames such as Philips an ero ona>8ames such as Philips an ero ona>

    Maruti u7u4i 'all into this group+Maruti u7u4i 'all into this group+

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    A more comprehensi&eA more comprehensi&e

    e)nition o' er&icese)nition o' er&ices

    All economic acti&ities 6hose output isAll economic acti&ities 6hose output is

    not a ph*sical prouct or construction> isnot a ph*sical prouct or construction> is

    generall* consume at the time it isgenerall* consume at the time it isprouce> an pro&ies ae &alue inprouce> an pro&ies ae &alue in

    'orms; such as con&enience> amusement>'orms; such as con&enience> amusement>

      timeliness> com'ort or health= that aretimeliness> com'ort or health= that are

    essentiall* intangi/le concerns o' its )rstessentiall* intangi/le concerns o' its )rstpurchaser3+purchaser3+

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    What are er&ices (What are er&ices (

    In simple terms er&ices are ,In simple terms er&ices are ,

    ees> processes an per'ormances+ees> processes an per'ormances+

     Thus I-M o5ers repairs an maintenance Thus I-M o5ers repairs an maintenance

    ser&ices 'or its e@uipment> consultingser&ices 'or its e@uipment> consulting

    ser&ices 'or IT an e: commerceser&ices 'or IT an e: commerce

    applications> training ser&ices> 6e/ esignapplications> training ser&ices> 6e/ esign

    an hosting an other ser&ices+an hosting an other ser&ices+

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     These ser&ices ma* inclue , These ser&ices ma* inclue ,

    A )nal > tangi/le reportA )nal > tangi/le report

    A 6e/siteA 6e/site

    Instructional material 'or trainingInstructional material 'or training

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      -ut the* largel* in&ol&e ,-ut the* largel* in&ol&e ,

    Pro/lem anal*sis acti&itiesPro/lem anal*sis acti&ities Meetings 6ith the clientMeetings 6ith the client "ollo6: up calls"ollo6: up calls eportingeporting

    In short :ees> processes anIn short :ees> processes anper'ormances+per'ormances+

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    Core o5erings o',Core o5erings o',

    ospitals>ospitals>

    otelsotels

    -an4-an4

    ?tilities?tilities

      comprise ees an actionscomprise ees an actions

    per'orme 'or customersper'orme 'or customers

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     Tangi/ilit* pectrum Tangi/ilit* pectrum

      The /roa e)nition o' ser&ices The /roa e)nition o' ser&icesimplies that intangi/ilit* is a 4e*implies that intangi/ilit* is a 4e*

    eterminant o' 6hether an o5ering iseterminant o' 6hether an o5ering is

    a ser&ice+ Although this is true &er*a ser&ice+ Although this is true &er*'e6 proucts are purel* intangi/le or'e6 proucts are purel* intangi/le or

    tangi/le+tangi/le+

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     Tangi/ilit* pectrum Tangi/ilit* pectrum

    Salt

    T

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     Tangi/ilit* pectrum Tangi/ilit* pectrum

    Contri/ution o' er&iceContri/ution o' er&ice

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    Contri/ution o' er&iceContri/ution o' er&ice

    Inustries to IniaEs G.P>Inustries to IniaEs G.P>

    2011:122011:12  The er&ices ector contri/utes the most to the The er&ices ector contri/utes the most to the

    Inian G.P+ The er&ice ector in Inia has theInian G.P+ The er&ice ector in Inia has the

    /iggest share in the countr*s G.P at !J%+/iggest share in the countr*s G.P at !J%+

      Other sectors ,Other sectors ,

      Agriculture ;1%=Agriculture ;1%=Inustr* ;2F%=Inustr* ;2F%=

      er&ice ector ;!J%=er&ice ector ;!J%=

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     The contri/ution o' the er&ices ector in Inia The contri/ution o' the er&ices ector in Inia

    G.P has increase a lot in the last 'e6 *ears+G.P has increase a lot in the last 'e6 *ears+

     The er&ices ector contri/ute onl* 1!% to The er&ices ector contri/ute onl* 1!% to

    the Inian G.P in 1J!0+ "urther the Inianthe Inian G.P in 1J!0+ "urther the Inian

    er&ices ectors share in the countr*s G.Per&ices ectors share in the countr*s G.Phas increase 'rom % in 1JJ0: 1JJ1 to !1%has increase 'rom % in 1JJ0: 1JJ1 to !1%

    in 200! an aroun !!% in 200:200F+ !J% inin 200! an aroun !!% in 200:200F+ !J% in

    2011:122011:12

     Thus the er&ices ector in Inia accounts 'or Thus the er&ices ector in Inia accounts 'or

    nearl* 0 % o' the countr*s G.P+nearl* 0 % o' the countr*s G.P+

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     The ser&ices sector contri/ute ?N The ser&ices sector contri/ute ?N

    FH /illion to the 201:1! G.P ;atFH /illion to the 201:1! G.P ;at

    constant prices= gro6ing at CAG o'constant prices= gro6ing at CAG o'J per cent> 'aster than the o&erallJ per cent> 'aster than the o&erall

    G.P CAG o' +2 per cent in the pastG.P CAG o' +2 per cent in the past

    'our *ears+ : ee more at,'our *ears+ : ee more at,http,

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    er&ice sector /rea4 up ;!J%=er&ice sector /rea4 up ;!J%=

    o' Total G.Po' Total G.P

      Communit*>Communit*>

      social an personal ser&ices 1%social an personal ser&ices 1%

      "inance> Insurance> real estate 1F%"inance> Insurance> real estate 1F%

      an /usiness ser&icesan /usiness ser&ices

      Trae> hotels> transport 2H% Trae> hotels> transport 2H%

    an communicationan communication

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    ome other countries ; CIAome other countries ; CIA

    Worl "act -oo4 2010 =Worl "act -oo4 2010 =

    Countr* er&ices asCountr* er&ices as

    Percentage o' G.PPercentage o' G.P

    1+ ? FF1+ ? FF2+ "rance F22+ "rance F2

    +8etherlans F!+8etherlans F!

    +?Q F!+?Q F!

    !+Dapan F!+Dapan F

    +German* F0+German* F0

    F+Inia 1;Construction inclue=F+Inia 1;Construction inclue=

    H+China H+China

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    er&ice Inustrieser&ice Inustries

      er&ice inustries an companies 9er&ice inustries an companies 9

     Those inustries an companies 6ithin Those inustries an companies 6ithinthe ser&ice sector 6hose core prouctthe ser&ice sector 6hose core prouct

    is a ser&ice+; ITC Welcome Group o'is a ser&ice+; ITC Welcome Group o'

    otels 9 ;-oaring an Loging=> Detotels 9 ;-oaring an Loging=> DetAir6a*s; Transport=> -irla unAir6a*s; Transport=> -irla un

    Li'e; Insurance an "inancial er&ices=+Li'e; Insurance an "inancial er&ices=+

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    er&ices as prouctser&ices as proucts

    Intangi/le prouct o5erings that customersIntangi/le prouct o5erings that customers

    &alue an pa* 'or in the mar4et place+&alue an pa* 'or in the mar4et place+

     eg P an I-M o5ering IT consulting ser&ices toeg P an I-M o5ering IT consulting ser&ices to

    the mar4etplace in competition 6ith companiesthe mar4etplace in competition 6ith companies

    li4e Accenture 6hich o5er traitional pureli4e Accenture 6hich o5er traitional pure

    ser&ices+ .epartment stores li4e Mac*Es 6hichser&ices+ .epartment stores li4e Mac*Es 6hich

    sell ser&ices such as gi't 6rapping an shippingsell ser&ices such as gi't 6rapping an shipping

    an pet stores selling pet grooming an trainingan pet stores selling pet grooming an training

    ser&ices+ser&ices+

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    Customer ser&iceCustomer ser&ice

    A support ser&ice to the compan*EsA support ser&ice to the compan*Es

    core proucts+ 8ot to /e con'usecore proucts+ 8ot to /e con'use

    6ith a'ter 9 sales ser&ice+6ith a'ter 9 sales ser&ice+

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    "ee$"ee$

    Whilst at Sale> "re mith prouce a paperWhilst at Sale> "re mith prouce a paperon logistics that ienti)e the nee 'or aon logistics that ienti)e the nee 'or arapi eli&er* ser&ice to suppl* spare parts+rapi eli&er* ser&ice to suppl* spare parts+e e$plaine that a&ances in the use o'e e$plaine that a&ances in the use o'computers 6oul lea to a s*stem thatcomputers 6oul lea to a s*stem thatcoul replace ph*sical in&entories as 'ast ascoul replace ph*sical in&entories as 'ast as

    the computer mo&es ata+the computer mo&es ata+

    e 6as a6are a C 'or the papere 6as a6are a C 'or the paper

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    On his return 'rom militar* ser&ice>On his return 'rom militar* ser&ice>

    he ecie that a hu/ an spo4ehe ecie that a hu/ an spo4es*stem> 6here all the parcels 'ors*stem> 6here all the parcels 'or

    eli&er* 6oul /e sorte in a centraleli&er* 6oul /e sorte in a central

    location in America> shoul /e trielocation in America> shoul /e trieto get o&ernight eli&er* an*6here into get o&ernight eli&er* an*6here in

    the ?nite tates+the ?nite tates+

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    Was this an act o' 'aith(Was this an act o' 'aith(

      8o+8o+

    Goo jugment al6a*s nees to /e /ac4e upGoo jugment al6a*s nees to /e /ac4e up6ith ata+ e commissione a couple o'6ith ata+ e commissione a couple o'

    inepenent research stuies that con)rmeinepenent research stuies that con)rmethat there 6as a /usiness nee 'or o&ernightthat there 6as a /usiness nee 'or o&ernighteli&er*+ As a result> "eeral #$press 6as /orneli&er*+ As a result> "eeral #$press 6as /ornin 1JF+in 1JF+

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     Toa*> the e$pression "e#$ has /ecome Toa*> the e$pression "e#$ has /ecomee&er*a* tal4 'or o&ernight eli&er*e&er*a* tal4 'or o&ernight eli&er*6hate&er carrier is use+ The "e#$6hate&er carrier is use+ The "e#$satellite trac4ing s*stem ienti)es 6heresatellite trac4ing s*stem ienti)es 6heree&er* pac4age is in the s*stem an !!e&er* pac4age is in the s*stem an !!million electronic entries are mae e&er*million electronic entries are mae e&er*a*+a*+

    "ee$ 6hich eli&ers ! million pac4ages"ee$ 6hich eli&ers ! million pac4agese&er* night is achie&ing a JJ+H2% successe&er* night is achie&ing a JJ+H2% successin eli&er* on timein eli&er* on time

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    Management Philosoph*Management Philosoph*  The most impressi&e part o' "e#$ is not its The most impressi&e part o' "e#$ is not its

    a&ance technolog* or its increi/le ser&ice @ualit*+a&ance technolog* or its increi/le ser&ice @ualit*+

     The management philosoph* is a magni)cent The management philosoph* is a magni)cent

    e$ample o' ho6 to run a compan*+ "re mithe$ample o' ho6 to run a compan*+ "re mith'orme the 'ollo6ing &ie6 6hile ser&ing as a marine'orme the 'ollo6ing &ie6 6hile ser&ing as a marinein Uietnam,in Uietnam,

    Ta4e care o' *our People+ The* in turn 6ill eli&erTa4e care o' *our People+ The* in turn 6ill eli&er

    the impecca/le er&ice emane /* our customersthe impecca/le er&ice emane /* our customers6ho 6ill re6ar us 6ith the Pro)ta/ilit* necessar* to6ho 6ill re6ar us 6ith the Pro)ta/ilit* necessar* tosecure our 'uture+secure our 'uture+

     This has /ecome the 6atch6or o' the compan* This has /ecome the 6atch6or o' the compan*

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     The magic 'ormula The magic 'ormula

      PEOPLE!E"#ICEP"OFIT!PEOPLE!E"#ICEP"OFIT!

      Compare with $arriot %Compare with $arriot %

     &&Ta'e care of your employees andTa'e care of your employees and they will ta'e care of theirthey will ta'e care of their

    guests.(guests.(

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    The Essence of all successful ser)iceThe Essence of all successful ser)ice

    industriesindustries

    PeoplePeople

    er&iceer&ice

    Pro)tsPro)ts

     T6ist it> turn it> isguise it> a to it i' *ou T6ist it> turn it> isguise it> a to it i' *ou

     li4e> gi&e it ne6 a&atars> /ut *ou 4eepli4e> gi&e it ne6 a&atars> /ut *ou 4eep

    coming /ac4 to it> an *ou certainl* canEtcoming /ac4 to it> an *ou certainl* canEt

    su/tract 'rom it+su/tract 'rom it+

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    tri4ing a /alancetri4ing a /alance

     

    Qeeping these three elements inQeeping these three elements in

    /alance is the harest part+ In orer/alance is the harest part+ In orer

    to align the sta5 to this philosoph*>to align the sta5 to this philosoph*>

    "e#$ has a clear goal to ha&e"e#$ has a clear goal to ha&e

    people 6ho are committe>people 6ho are committe>moti&ate an 6ell traine+moti&ate an 6ell traine+

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    Learning PointsLearning Points

    Put *our people )rst i' *ou 6ant them toPut *our people )rst i' *ou 6ant them toreali7e *our &isionreali7e *our &ision

    ecogni7e /eha&iour that *ou 6ant othersecogni7e /eha&iour that *ou 6ant othersto cop*to cop*

    ?se *our /est people to train managers?se *our /est people to train managers

    .ont accept less than 100%.ont accept less than 100%

    Measure e&er*thing that *ou 6ant toMeasure e&er*thing that *ou 6ant toimpro&eimpro&e

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    Qe* Tools #mplo*eQe* Tools #mplo*e

    "e)iews"e)iews

    !ta* "ecruitment!ta* "ecruitment

    TrainingTraining

    Performance !ur)eysPerformance !ur)eys

    Fair TreatmentFair Treatment

    "eward and "ecognition"eward and "ecognition

    CommunicationCommunication

    $anagement +e)elopment$anagement +e)elopment

    ,uality,uality

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    In the American Management AssociationsIn the American Management Associations

    pu/lication -lueprints 'or er&ice Rualit*>pu/lication -lueprints 'or er&ice Rualit*>

    "re mith is @uote as sa*ing The 6a* I see"re mith is @uote as sa*ing The 6a* I see

    it> leaership oes not /egin 6ith po6er> /utit> leaership oes not /egin 6ith po6er> /ut

    rather 6ith a compelling &ision or goal o'rather 6ith a compelling &ision or goal o'

    e$cellence+e$cellence+

    One /ecomes a leaer 6hen he or she is a/leOne /ecomes a leaer 6hen he or she is a/le

    to communicate that &ision in such a 6a* thatto communicate that &ision in such a 6a* that

    others 'eel empo6ere to achie&e success+others 'eel empo6ere to achie&e success+

    The nine leaershipThe nine leaership

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     The nine leaership The nine leaership

    imensionsimensions

    Charismatic LeaershipCharismatic Leaership

    Consieration 'or Ini&iualsConsieration 'or Ini&iuals

    Intellectual timulationIntellectual timulation

    CourageCourage

    .epena/ilit*.epena/ilit*

    "le$i/ilit*"le$i/ilit*

    Integrit*Integrit*

     Dugment Dugment

    espect 'or Othersespect 'or Others

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    er&ice tanarer&ice tanar

    "ee$ has a 100% ser&ice stanar that"ee$ has a 100% ser&ice stanar thatsa*s,sa*s,

    We are committe to eli&ering eachWe are committe to eli&ering eachshipment entruste to us on scheuleshipment entruste to us on scheule

    100% o' the time+ #@uall* important> 6e100% o' the time+ #@uall* important> 6e

    6ill maintain 100% accurac* o' all6ill maintain 100% accurac* o' all

    in'ormation pertaining to each item 6ein'ormation pertaining to each item 6ecarr*+ Our o/jecti&e is to ha&e a 100%carr*+ Our o/jecti&e is to ha&e a 100%

    satis)e customer at the en o' eachsatis)e customer at the en o' each

    transaction+transaction+

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    e6ar an recognitione6ar an recognition

      The pay for performance of salaried sta* isThe pay for performance of salaried sta* isbased upon measures relating to thebased upon measures relating to thecompany-s 'ey philosophy.company-s 'ey philosophy. 

    PeoplePeople : measuring the leaership ine$ an the: measuring the leaership ine$ an thesa'et* per'ormancesa'et* per'ormance

    !er)ice!er)ice : results o' the compan*s er&ice: results o' the compan*s er&ice

    Rualit* Inicator+Rualit* Inicator+

    ProtProt : pre:ta$ margin+: pre:ta$ margin+

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     The 'ounations o' success The 'ounations o' success A UisionA Uision

    A -elie' A -elie' 

    -ac4e /* ata-ac4e /* ata

    A Philosoph* ; PP or something similar=A Philosoph* ; PP or something similar=

    Meticulous PlanningMeticulous Planning

    *stems 'or actuali7ing the PP philosoph**stems 'or actuali7ing the PP philosoph*

    MeasurementMeasurement

    A/ilit* to reassess> search 'or ne6 opportunities anA/ilit* to reassess> search 'or ne6 opportunities anregroupregroup

    C ti t t i llC ti t t i ll

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    Competing strategicall*Competing strategicall*

    through ser&icethrough ser&ice

    #$emplar* out o' the /o$ ser&ice#$emplar* out o' the /o$ ser&ice

    Inno&ati&e> cutting ege ser&icesInno&ati&e> cutting ege ser&ices

    Ualue 9 ae > e&enue ProucingUalue 9 ae > e&enue Proucing

    er&iceser&ices

    A ser&ice Culture that i5erentiatesA ser&ice Culture that i5erentiates