Why the Tail Should Not Wag the Dog:Integrating the Deployment of Information and Communication Technologies (ICT) in Service Innovation and Delivery

Abstract

Services are fast overtaking products as the basis for the predominant economic model for companies and countries. Successful service organisations tend to employ a particular service logic that combines transactional and relational aspects. In the context of this service logic, there has been a lack of debate on the most appropriate role for Information and Communication Technology (ICT). In particular the question of the overall impact of increasing deployment of ICT from both organisational and customer perspectives has not been sufficiently explored. Does ICT add value to service marketing considering that one of the major elements of service marketing is the interpersonal relationship which is now mediated in many cases through ICT? Within a review of the extant literature in this area we suggest that ICT needs to be subservient to the creation of value for the customer. Decisions on how to use ICT are too often driven by what is technologically possible rather then what adds value to the service partners. In this paper we argue that it is more important to focus on achieving the full potential of the service encounter and thus ultimately the full relationship value than to concentrate on realizing the full potential of a particular technology.

This paper reviews the service logic from a relational perspective. It then links to the automational nature of much of ICT within organisations. This is further related to a review of how ICT moves aspect of the relational dimensions of services to a transactional or automational level. We suggest that technologist need to understand marketing and that marketers need to be cognisant of their own technological requirements and to be able to engage in meaningful dialogue with technologists in order to maximise the economic and relational value to be gained from ICT. There are thus three orientations that need to be considered jointly: the economic, the technological, and the marketing perspective. These three different views all require attention, but none can deliver the full value required in competitive service markets. Thus, the three sets of objectives require an arbitrator that can integrate technological potential with customer and service delivery requirements to maximise the business value of the firm’s market offerings. We believe that marketers are uniquely placed to fill this important role.