Sanjivani College of Engineering, Kopargaon

Department of MBA

Service Operation Management-I

Concept of Service
Presented By

Dr. Niraj Chaudahri

Assistant Professor,
Sanjivani College of Engineering ,
Dept.of MBA,
Kopargaon

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 Service Definitions
• ‘Services are economic activities that create value and
provide benefits for customers at specific times and
places as a result of bringing about a desired change in
– or on behalf of – the recipient of the service.
• ‘A service is any activity or benefit that one party can
offer to another, which is essentially intangible and
does not result in the ownership of anything. Its
production may or may not be tied to a physical
product.
• “A service is any activity or benefit that are being an
offer to another that is essentially intangible and does
not result in the ownership of anything.”
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The characteristics of service Operation

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 The characteristics of service Operation
• It is a core area or an activity or a task of business,
• It is a major component and denotes a parallel size of
business
• Services may be collateral activity and have a
supplementary service to support the core area of
business
• A service is an act or performance offered by one part.
• It is an ideology or concept or an approach based on
customers.
• A service is an economic activity that creates values
and provides benefits for customers
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 The characteristics of service Operation
• The service process may be tied to a physical product and the
performance.
• Services are based on the concepts of rational behavior and the
norms of ethical values.
• Services may be treated as the philosophical part in the form of
art and a systematical part in the form of ‘science’.
• It is prominent task to serve at the input as well as output stages
in any value creation process.
• It serves as dynamic platform to accommodate professional
attitudes.
• Services having the continuous process within their performance.

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 The Service Economy
The service Industry forms a backbone of social and
economic development of a region. it has emerged as
the largest and fastest growing sectors in the world
economy . Making higher contributions to the global
output and employment. its growth rate has been
higher than that of agriculture and manufacturing
sector. It cover wide range of activity such as trading ,
transportation and communication, financial, real
estate ,social and personal services.

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Service Economy

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 Facilitating Role of Services in an Economy.

• Service sector involves of activities beginning from the

production of goods and service until it reaches to the
consumer. For the last 30 years there has been a substantial
shift from the primary and secondary sector to the service
sector. Now it has become a largest sector of the economy.
• However in recent years the service sector growing at a
very faster rate in the developing countries and is
contributing a major share in terms of output, income and
employment. Even the productivity per worker is becoming
higher in service sector when compared to agriculture and
industrial sectors. Already the service sector is dominant in
the developed countries.
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Facilitating Role of Services in an Economy

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 Facilitating Role of Services in an Economy.

1) Infrastructure Services
2) Business Services
3)Trade Services
4)Social / Personal Services
5)Public Administration

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 Economic Evolution of Service Sector

The First Era :

1)Crawling Out(Pre 1980)
2)Scurriying About ( 1980-1985)
3)Walkig out (1986-1992)

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 Economic Evolution of Service Sector

The Second Era:-

1)Making tools
2)Creating Language
3) Building Community

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 Stages of Economic Development in Service Sector

1) Pre- Industrial Stage

2)Industrial Stage
3)Post- Industrial Stage

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Stages of Economic Development in Service Sector

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