Identify examples of technology’s impact on services. Specifically, identify one that has led to labor cost reductions.
In the contemporary globalized business environment, the attention and focus of business analysts and researchers have been on the impacts of technology on manufacturing operations and processes; however, technology has caused equally significant changes in services such as the banking sector. Adoption of technology has diverse impacts on the quality of services, efficiency of service delivery processes, and marketing of such services.
Heizer and Render note that technology has led to a reduction in labor costs in the service industry in diverse perspectives (10). Major technological innovations, such as automation of processes have prompted a reduction in the use of labor in the service industry. In essence, some of the operations that were executed earlier using human labor have been taken over by technological inventions. Transformations in operations have, in turn, led to a cut down of labor hours required to perform tasks to save labor costs. Besides, technology has supported the achievement of better-quality services. Using advanced technological innovations has enabled seamless functioning of business operations with the services having sleek features, especially because of the high levels of precision and error-free processes. Notably, technology supports the speedy delivery of services. It has made information readily available and accessible, which has fastened the decision-making and problem-solving processes. Fast processes of decision-making result in efficient delivery of services.
Self-service checkout machines are an example of technology in the service sector that has reduced labor costs. They operate as terminals from where customers can access services with little or no assistance from human customer care workers. The machines are applicable in restaurants, banks, and shops to perform tasks initially set to be completed by humans. Although self-service checkout machines may be expensive to acquire, they are highly efficient, faster, and saves the business the cost of employing many customer care service employees.
Works Cited
Heizer, Jay and Render, Barry. Operations Management 10th Ed.
Prentice Hall, 2011. Print.
