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Basic differences between goods and services are easy to see Goods are tangible and can be consumed now or later, while are intangible and cannot be produced in advance. Of course, many purchases consist of a mix of goods and IAS Examination. Restaurants are roughly balanced. Gasoline purchases are 99 percent goods if you count the occasional once-over with a squeegee as a service. Airline flights are 99 percent services if you count refreshments as goods. So pure goods and pure are just end points on a continuum of possibilities. If you’ve ever been unable to get an appointment when you want it, languished in a waiting room or holding on the phone, been told you can’t get a sandwich without mayonnaise, or had your change request denied because customer service is closed, you weren’t getting services on demand. In a nutshell, on demand simply mean getting when, where, and how you want it. That may not sound hard if you’re a customer, but it can be ferociously hard if you’re a service provider. Physical limits no doubt explain some slow and inflexible service. After all, there are only so many hours in the workday, seats in the theater, cooks in the kitchen, and so forth. But more and more service providers are coming to realize there can be competitive advantage to delivering services on demand. The central questions are how to manage it and how to make it pay off. One of the most surprising findings from Theory of Constraints is that the hardest constraints to change aren’t physical at all. They’re the policies we set. For instance, why must every patient in a doctor’s office suffer the accumulated delay from all previous patients that day? If appointments run late day after day, the cause isn’t unpredictability it’s capacity or scheduling a policy constraint. First-in/first-out may seem simple and fair and it certainly keeps the doctors busy but it’s not a scheduling method that necessarily optimizes wait time, quality of care, or patient satisfaction. And keeping doctors busy is not the same as optimizing what they can produce. Imagine how different your office visit would be if information technology coordinated the scheduling, your arrival time, and the entire medical staff’s availability so that you could be welcomed into an examining room within moments of your arrival, no matter whether you were the first or last appointment of the day. That may sound far-fetched, but some rental cars, limousines, museums, hotels, buses, hospitals, and parking garages have this level of Exam For IAS. coordination today. So if you’re wondering why professionals, scientists, and technicians can’t work the same way, you’re not alone. In fairness to those groups, however, they do face some unique challenges, even when compared to other services industries, as we shall see shortly. Yet with the right tools, those challenges aren’t as insurmountable as they may seem at first. An on-demand enterprise can respond rapidly and flexibly to customer demands, market opportunities, or external threats. Why does this matter? On-demand enterprises earn more gross profit and have higher earnings growth than the median for their industries. Even in Professional, Scientific, and Technical Services, the standard of excellence is rising.
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