Karmarkar: Will you survive the services revolution?

9 important questions on Karmarkar: Will you survive the services revolution?

Offshoring and outsourcing happens a lot in the world, but according to Karmarkar its not a problem, why not?

Because baby boomers retirements and new job creations will be taken care of the unemployed people.

What is the issue regarding offshoring and outsourcing? (Karmarkar)

The real issue is the loss of service competitiveness. Due to industrialization of services, the rising global competitions, services being invaded by foreign firms and new entrants. Beside this, the automation is also transforming the service sector. Due to new hard/software systems, work is been taking over of staff functions. F.e. self service is taking over the work of employees.

How can firms survive this revolution? (Karmarkar)

All firms must put themselves through competitiveness boot camp: focusing on customer peference, quality and technological interfaces. Companies need to rewire their strategies and find new value from existing and unfamiliair sources.
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What does the article of Karmarkar do to understand what's happening in the service sector?

It reviews the transformation in the manufacturing industry. The companies who showed flexibility and adopted new strategies, have survived and succeeded. Service firm need to do the same to survive the present changes.

What does Karmarkar means with 'reconnecting the customer'?

Companies should look at customers, consumer behavior plays a much bigger role in information chains, customers are directly involved in service processes. By taking apart an information chain, deintegrating it, you can see 6 kind of opportunities.

Companies which best understand customer needs, delivers consistently high quality service and connects to the customer via the channel of choice wins. Which 3 ways are there to meet those challenges (Karmarkar)? Think about the R words.

1 Realigning strategy: overhaul (herzien) their offerings, cost structures, competitive platforms to align with the shortened information chain and changing demands and behavior of customers
2 Redesigning process: Understand the information processes, but also examine each stage of the process. The process need to be more specific and carefully managed than ever before.
3 Restructering the organization: reorganization of processes necessitates organizational change. Changes like automation, but more deeper: redesign organizations to addapt to new conditions and making sure the customer doesn't get lost in this process. 

Which 4 skills will companies most need according to Karmarkar?

1 Understand the impact of new technologies/strategies/channels on customer behavior > new skilled managers
2 Technology experts will need to distribute throughout the organization, rather than separate group
3 Managers of vendor (verkoper) and partner relationships will have a significant place in the new structure
4 Management will have to adapt to a more diverse workforce

What is the lesson according to Karmarkar for service companies?

Instead of competing over individual links in the chain, they should compete for the chain itself. This gives them the maximum opportunity to find areas of profit.

Who are the survivors in the service revolution? (Karmarkar)

The survivors will be those who understand that opportunities lie in removing and supplanting links of the information chains and also in understanding how the chain is being restructured. Once they understand their own information chains from end to end, companies must begin reorganizing strategies, processes and people of the challenge ahead. Surviving competitiveness boot camp will be difficult, but the alternative could be a disaster.

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