Tertiary Sector history

Evolution of Service Organizations

Since its inception in the 1800s. Service Provision has evolved into 4 stages: Service 1.0, Service 2.0, Service 3.0 and Service 4.0.

  • Late 19th Century

    Service 1.0

    Service provision began in the 19th century. This is the basic level of service provision, which is manual and non-standardized, e.g. traditional (manual) bookkeeping performed by a clerk.

  • Early 20th Century

    Service 2.0

    Service 2.0 arose in the first half of the 20th century. At this stage, service became standardized, industrialized, remove, and labor intensive. Service 2.0 was driven by the widespread use of the postal service and telephone and adoption of scientific management • E.g. deployment of can centers in the 1950s.

  • Late 20th Century

    Service 3.0

    This stage arose in the late 20th century. In this phase, organizations began to automate service provisioning to a certain extent, integrate their value chains, and provide the first generation of channel- specific, self-service options. Service 3.0 was driven by the adoption of personal computers, the Internet, and open standards, e.g.: self-service terminals at banks, transportation stations, and grocery stores

  • Today

    Service 4.0

    Service 4.0 is happening now. Now, companies are delivering proactive and customized service, delivered through Multiple, integrated channels. Service 4.0 is driven by advances in Digital Transformation and Fourth Industrial Revolution technologies in both software and hardware, e.g. via Big Data and Analytics, many companies are anticipating customer needs and respond proactively

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