A service technology

What is a service technology? Are different types of service technologies likely to be associated with different organization designs? Explain.

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Sample Answer

A service technology is a process or tool that is used to produce or deliver a service. Service technologies can be divided into two categories: front-office and back-office. Front-office service technologies are those that are directly visible to and used by customers. Back-office service technologies are those that are used to support front-office service technologies and are not directly visible to customers.

Examples of front-office service technologies include:

  • Self-checkout kiosks in supermarkets
  • Online banking websites and mobile apps
  • Automated teller machines (ATMs)
  • Customer relationship management (CRM) software
  • Point-of-sale (POS) systems

Full Answer Section

Examples of back-office service technologies include:

  • Enterprise resource planning (ERP) software
  • Human capital management (HCM) software
  • Supply chain management (SCM) software
  • Business intelligence (BI) software
  • Data analytics software

Different types of service technologies are likely to be associated with different organization designs. For example, a company that relies heavily on front-office service technologies is likely to have a more decentralized organization design. This is because front-office service technologies enable employees to work more independently and to make decisions on the spot.

On the other hand, a company that relies heavily on back-office service technologies is likely to have a more centralized organization design. This is because back-office service technologies need to be integrated and managed carefully.

Here are some specific examples of how different types of service technologies can lead to different organization designs:

  • A company that uses a self-checkout kiosk system in its supermarkets is likely to have a more decentralized organization design. This is because employees will not need to be as involved in the checkout process.
  • An online bank is likely to have a more decentralized organization design than a traditional bank. This is because online banks do not need to have as many physical branches.
  • A manufacturing company that uses a supply chain management system is likely to have a more centralized organization design. This is because the supply chain management system needs to be integrated with other systems in the company, such as the ERP system.

Overall, the type of service technology that a company uses can have a significant impact on its organization design. Companies should carefully consider their needs when choosing service technologies so that they can select technologies that will support their desired organization design.

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