The Algorithmic Revolution Transforms Activities
- Task underlying services can be transformed into formalizable, codifiable, computable processes.
- Bank ATMs.
- Existing activities that create new forms of value.
Reposition Services to Avoid Commoditization
Fims see services as the solution to creating defensible positions in market .
- Products themselves can be transformed into services when delivered via ICT network.
- Can be portals to services, or be embedded in services.
Blurring the Boundaries Between Manufacturing and Services
- In the current era, manufacturing itself is offered as a service.
- The services transformation is pervasive.
The Services Spectrum
- Irreductible services.
- Hybrid services.
- Automated services.
* Fully automated systems, the evidence suggests, offer the greatest potential productivity gains.
The limits in the Transformation: The need for Human Judgement.
The Services Dilemma
Its pits potential productivity gains against the threat of commoditization.
Two Matters Must be Noted:
1.- This applications of the ICT is always a beginning of the story-a cycle.
2.- For radical new services, the competitive problem is how to maintain advantage.
As ICT tools became more sophisticated producing both goods and services and managing the complex operations this implied, all became easier and less expensive.
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