9 - From managing ‘service’ to integrated services management

Summary

A wave of change

Services have emerged as the most important sector in many economies in recent times. The critical economic importance of services was highlighted by the political ‘storm’ over the export of service jobs from the United States and Australia to locations such as India and Sri Lanka, and this trend is set to escalate to other developed countries.

Overall, the shift of employment away from manufacturing to services requires managerial principles and practices to be reconsidered in terms of new conceptual frameworks. That is, the historical manufacturing paradigm has traditionally focused on goods, technology and marketing, whereas the services paradigm is rooted in the ideas of partnership, communication and value creation. These contrasting paradigms emphasise very different managerial priorities, although it is becoming clear that there is a considerable and increasing influence of both paradigms in both industry sectors. It is clear that 21st-century management thinking needs to be redefined in terms of the value creation and relationship-oriented services paradigm, since in an interconnected global context most contemporary businesses today have a very strong services component.

The holistic perspective

The preceding chapters explain, explore and argue a strong case for the application of the integrated services management model. The historical transition of economic activities from primary industries such as agriculture and mining, to secondary industries such as manufacturing and construction, has seen a revolutionary change in the development and application of late 19th-century managerial frameworks.