Essay on Positive and Negative Aspects of Technology in the Service Sector

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The growth of the service sector in recent decades has been referred to as “a wonder of human history” and commensurate to both the agricultural and industrial revolutions alike (Spohrer and Maglio 2008, p19). It cannot be denied that technological advancements have played a vital role in this dramatic evolution. Technology has not only transformed the nature of services but also the means in which firms connect with their customers (Zeuthaml and Bitner 2000). It has enabled the development of new services, created new means of delivering services and has facilitated customers and firms to receive and administer improved, more accessible, efficient and customized services (Wang et. al 2013). Developments in communication technologies and most notably the internet have removed the traditional boundaries of geographical location and time and even created a whole new previously unimagined virtual marketplace; “the marketspace” (Bhakkad and Patil 2014). Although these vast technological advances have undoubtedly had a positive impact on the service industry, one must not be oblivious to the negative, downsides that also exist. This paper will elaborate further on the positive impacts looking at some emerging trends and also look at some of the negative impacts and how firms must be aware that technology is not an automatic recipe for success. The paper concludes with a quote from American writer Irene Peter “just because everything is different doesn't mean anything has changed” looking past these technological advancements and the transformation of the service sector, one thing remains unchanged; customers still want their needs and expectations to be satisfied from their service encounters in whatever form they come (Bitner 2001).

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...oduction and Operations Management, 17: 238–246.
Walker, R,H., Craig-Lees, M., Hecker,R and Francis, H.2002.Technology-enabled service delivery: An investigation of reasons affecting customer adoption and rejection. International Journal of Service Industry Management, 13(1), pp.91 – 106.
Willcocks, L.P and Plant, R. 2001. "Getting from bricks to clicks", Sloan Management Review, 42(3),pp.50-9.

Wang, C.C., Chen, M.C., Hsien, T.C. 2013. An Investigation of the correlation among the technology mode, service evidence and service quality from a customer perspective. Open Journal of Business Management,1, pp. 45–53

Irene Peter – quote

Hostage, G.M. 1975. Quality Control in a Service Business. Harvard Business Review,53(4), pp.98-106

IBM. 2014. IBM Reports 2013 Third-Quarter Results. [online] Available at: [

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