Software Business - Types of Software Businesses - Software Service Business - Service Operations

Service Operations

Characteristics of Service Operations that are relevant to software services industry:

  • Intangibility: Service is produced instead of tangible product. Therefore service innovations can be easily copied by competitors.
  • Perishability: Human resource intensive services cannot be produced in advance, therefore demand and supply is difficult to manage. This also affects business scalability.
  • Heterogeneity: Service encounters are unique and customer needs vary, therefore software services are difficult to standardize and productize. Therefore service business is also difficult to scale.

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Famous quotes containing the words service and/or operations:

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