Explain the role of information technology in service industries

Many service industries exploit information technology to achieve high customer service. Information technology systems helps to save time, improve accuracy by standardizing the order-taking, billing, and inventory procedures and reducing the need for handwriting. Credit authorizations, which once took several minutes by telephone, are now accomplished in seconds through computerized authorization systems. It allows businesses to maintain a database of individual customer preferences, previous difficulties, family and personal interests, and preferred credit cards. Information technology has had a huge impact on e-commerce. Customers can shop for almost any product; configure, price, and order computer systems; and take virtual test drives of automobiles and select from thousands of possible combinations of options on the Internet in the convenience of their homes. Information technology can be used to develop and enhance customer relationships. However, while information technology reduces labor intensity and increases the speed of service, it can have adverse effects on other dimensions of quality due to reduced personal interaction between the customers and the organization.