Service economy can refer to one or both of two recent economic developments: The increased importance of the service sector in industrialized economies. The current list of Fortune 500 companies contains more service companies and fewer manufacturers than in previous decades. The relative importance of service in a product offering. The service economy in developing countries is mostly concentrated in financial services, hospitality, retail, health, human services, information technology and education. Products today have a higher service component than in previous decades. In the management literature this is referred to as the servitization of products or a product-service system. Virtually every product today has a service component to it. The old dichotomy between product and service has been replaced by a Service (economics) service–product continuum . Many products are being transformed into services. For example, IBM treats its business as a service business. Although it still manufactures computers, it sees the physical goods as a small part of the "business solutions" industry. They have found that the price elasticity of demand for "business solutions" is much less than for hardware. There has been a corresponding shift to a subscription pricing model. Rather than receiving a single payment for a piece of manufactured equipment, many manufacturers are now receiving a steady stream of revenue for ongoing contracts. Full cost accounting and most accounting reform and monetary reform measures are usually thought to be impossible to achieve without a good model of the service economy. Since the 1950s, the global economy has undergone a structural transformation. For this change, the American economist Victor R. Fuchs called it “the service economy” in 1968. He believes that the United States has taken the lead in entering the service economy and society in the Western countries. The declaration heralded the arrival of a service economy that began in the United States on a global scale.

About this result
This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.
Related courses (5)
AR-492: Spatial and Regional Economy
Cours de cadrage destiné à appréhender les questions de répartition spatiale des hommes et des activités d'un point de vue historique
AR-480: UE X : Experience design
Experience Design examines the effects of digitalization on architectural typologies in the contemporary city. The course questions traditional typologies by focusing on an understanding and re-design
CS-491: Introduction to IT consulting
This course is an introduction to the alignment of enterprise needs with the possibilities offered by Information Technology (IT). Using a simulated business case, we explore how to define the require
Show more
Related lectures (30)
Economic Growth: Measuring HDI, GPI, and OECD Better Life Index
Explores alternative measures to GDP, HDI, GPI, and OECD Better Life Index for assessing economic growth and well-being.
Designing Solutions: Prototyping and User Experience
Covers the principles of prototyping and user experience design, emphasizing iterative processes and user feedback in creating effective solutions.
User Personas & User Journey + Q&A with End Users
Explores User Personas, user journey, and a Q&A session with end users, emphasizing the importance of representing different user types.
Show more
Related publications (48)
Related concepts (8)
Homelessness
Homelessness or houselessness – also known as a state of being unhoused or unsheltered – is the condition of lacking stable, safe, and functional housing. The general category includes many disparate situations, including: living on the streets, also known as sleeping rough (primary homelessness) moving between temporary shelters, including houses of friends, family, and emergency accommodation (secondary homelessness) living in private boarding houses without a private bathroom or security of tenure (tertiary homelessness) having no permanent house or place to live safely Internally Displaced Persons, persons compelled to leave their places of domicile, who remain as refugees within their country's borders The rights of people suffering from the devastating effects of homelessness also vary from country to country.
Service design
Service design is the activity of planning and arranging people, infrastructure, communication and material components of a service in order to improve its quality, and the interaction between the service provider and its users. Service design may function as a way to inform changes to an existing service or create a new service entirely. The purpose of service design methodologies is to establish the most effective practices for designing services, according to both the needs of users and the competencies and capabilities of service providers.
Post-industrial society
In sociology, the post-industrial society is the stage of society's development when the service sector generates more wealth than the manufacturing sector of the economy. The term was originated by Alain Touraine and is closely related to similar sociological theoretical concepts such as post-Fordism, information society, knowledge economy, post-industrial economy, liquid modernity, and network society. They all can be used in economics or social science disciplines as a general theoretical backdrop in research design.
Show more

Graph Chatbot

Chat with Graph Search

Ask any question about EPFL courses, lectures, exercises, research, news, etc. or try the example questions below.

DISCLAIMER: The Graph Chatbot is not programmed to provide explicit or categorical answers to your questions. Rather, it transforms your questions into API requests that are distributed across the various IT services officially administered by EPFL. Its purpose is solely to collect and recommend relevant references to content that you can explore to help you answer your questions.