Products And – Or Services – Defining "Service-Oriented" Products and the Related Role of Technology

The economy can be analyzed using both market-driven and production-driven approaches to industry classification. The North American Industry Classification System (NAICS) uses a market-driven approach; the older Standard Industrial Classification (SIC) uses a production-driven approach.

Under a market-driven approach, the economy comprises goods-producing and service-providing industries. Goods-producing industries include: natural resources and mining, construction, and manufacturing; service-providing industries include: wholesale and retail trade, transportation (and warehousing), utilities, information, financial activities, professional and business services, education and health services, leisure and hospitality, and public administration.

Under a production-driven approach, the economy comprises product-driven and service-driven industries. Product-driven industries comprise enterprises that manage inventories available for sale as primary activities (regardless of whether they transform them or not). Under this approach, the retail, wholesale, and food service industries are product-driven. (The kitchens of food service providers are equivalent to factories.) Product-driven enterprises may have extensive cost accounting and operations practices for inventory management.

Industry classifications can be applied to an enterprise as a whole (the primary industry), and to the establishments within it, which may be in differing secondary industries. Establishments are facilities that include plants (factories and warehouses) and branches (retail and wholesale outlets).

For example, the hospitality industry is service-driven; under the production-driven approach, the bar and restaurant establishments within a hotel are product-driven. The entertainment industry is service-driven; under the production-driven approach, the retail and bar establishments within a theater are product-driven. The health care industry is service-driven; under the production-driven approach, the retail pharmacy establishment within a hospital is product-driven. Under the market-driven approach, all of these establishments are service-providing.

For example, a manufacturing enterprise is goods-producing under a market-driven approach, and product-driven under a production-driven approach. If it also operates a retail delivery system, the stores are service-providers under a market-driven approach, and are product-driven under a production-driven approach. If all sales revenue is sourced from its own products, the enterprise is in two primary industries. However, if forced to decide, its selection should be based upon core competencies – activities that it performs well. The enterprise can be divided into two separate business units: manufacturing and merchandising. The merchandising unit is an internal customer of the manufacturing unit. However, depending on strategy and policy, the manufacturing unit could sell products to wholesalers and other retailers, and the merchandising unit could buy products from other manufacturers and wholesalers. Under a market-driven approach, the manufacturing unit is goods-producing and the merchandising unit is service-providing, whereas under the production-driven approach, the merchandising unit is product-driven.

The make-up of the economy changes overtime as newer industries emerge and grow and older industries mature and decline. For example, the manufacturing industry is shifting from vertically integrated to strategically outsourced. Strategic outsourcers may manufacture specialized components and assemble finished products. However, by outsourcing the manufacturing of utility components to specialty scale manufacturers, strategic outsourcers can lower their production costs.

Biotechnology and nanotechnology are emerging industries. The information industries are growing as technology becomes more ubiquitous, and as knowledge is packaged in digital products. Knowledge is information that has been learned and retained. In the future, knowledge will be retained extensively in electronic form.

Products and services…

The term “product” is associated with something that is tangible – the resulting inventory from agricultural, mining and drilling, construction, and manufacturing activities. Outputs are either end-products, or components that are assembled into end-products in downstream processes within the enterprise or in its customers.

The term “service” is associated with something that is intangible – capabilities either delivered at the point or time of sale, or shortly thereafter, or as a supporting service. Supporting services can be purchased at the time of sale for downstream use, or later, and consist of such items as warranties beyond those bundled with the product, preventive maintenance, and routine cleaning and repairs.

Functions and features of products are easier to discern than those of services, which are event or activity driven, and may occur in the future.

The term “time of sale” means when a contractual or non-contractual agreement between a buyer and a seller is made, and does not necessarily mean when revenue is recognized and earned. Revenue is recognized and earned according to the accounting principles that fit the service offering, which may be over a period of time.

A commodity is a product or service that is indistinguishable and interchangeable with another of the same type because there is little to no value added. Many commodities are natural, such as produce, minerals, oil, and gas. Services can be commoditized too. The distinguishing factors of a commodity provider include convenience, quality of service, and price.

Product-driven enterprises also offer delivery and supporting services. Delivery services include arranging for transportation, dealer preparation, training, and gift wrapping. Supporting services include cleaning, repairs, and maintenance. To remain competitive over time, enterprises have to add services with their product offerings that exceed customer expectations. However, if customers require such services, then they must become part of the basic offerings. For example, bathroom facilities and color TV are included in modern hotel rooms, even though the primary purpose is providing a place to sleep.

Although services are intangible, their effects are not. Transportation services move people, cleaning services remove dirt and stains, and repair services restore items to working order. Services require facilities, equipment, and supplies that are bundled in. When products are bundled in, the enterprise pays sales or use tax, if applicable; when products are sold with services, the customer usually pays sales or use tax, if applicable.

Service-driven enterprises can produce tangible deliverables. For example, dry cleaners produce clean and pressed clothes; professional service firms, such as architects, accountants, attorneys, and consultants produce reports; and engineers produce design drawings that can be transformed into facilities, equipment, or other tangible products.

The recording and movie industries employ technologies that can capture sound and pictures. Starting in laboratories, these industries transform science into art. Hence, live entertainment performances (services) can be transformed into recorded products. As a consequence, an event or activity can be reproduced, duplicated, distributed, and repeated to the public-at-large indefinitely. Digital products are impacting traditional manufacturing, distribution, and consumer buying behaviors, and placing intermediaries at risk.

Process control and information technologies have enabled seamless integration between designers and manufacturers. The “design-to-construction” process becomes ubiquitous as computer-aided design and manufacturing technologies (CAD/CAM) enable a designer in one location to transmit specifications to manufacturers in others. The designs are virtual, and result in instructions that control manufacturing equipment in both local and remote locations. As a consequence, manufacturing can be outsourced strategically to any manufacturer that can accept electronic designs anywhere at any time. Because the process is seamless, the precision is higher.

As more enterprises adopt the design-to-construction model, dramatic changes will occur in the structure of industries. For example, in the publishing industry, books can be printed on demand from electronic files upon receipt of orders placed over the internet, eliminating the need for physical inventory available for sale at printers, publishers, and bookstores. The electronic files represent a virtual finished goods inventory from which physical products can be made when necessary. As a consequence, inventory carrying costs are lower.

Both product-driven and service-driven industries render service from centers that receive inbound and place outbound service and telemarketing calls. Call center activities can be outsourced in a similar fashion to manufacturing.

The notion of strategic outsourcing can be applied to almost every function in an enterprise provided intellectual property is protected. However, although management consultants may be used in the development of strategy, the ultimate responsibility for planning, deployment, execution, and performance remains in-house with the governance function.

Products and/or services…

The term “products and/or services” describes collectively all types of products and services.

Service-driven industries are evolving into providers of both “product-oriented” and “service-oriented” services. In order to differentiate product-oriented services from the delivery and supporting services, the term “service-oriented” products provides more clarity. Service-oriented products must be definable, duplicable, and repeatable. They are intangible outputs of processes that are represented by tangible items, packaged in a definable form. Technology plays a major role in the delivery through hardware, software, and both voice and data telecommunications. “Hard” products are tangible and “soft” products are intangible.

For example, traditional land phone line services were offerings with few differentiating features, primarily in the style of equipment. As the telephone system migrated from electro-mechanical to electronic, the offerings were transformed into service-oriented products with features such as call forwarding, caller identification, call waiting, and voice mail. Cell phone offerings are service-oriented products with more extensive functions and features than land lines. Cell phone service-oriented products have cameras built-in, and have delivery and supporting services bundled in such as account information, internet access, and application software for calculators, calendars, contact information, notes, games, music, pictures and movies. Cell phone and computer technologies are converging.

In the financial and business and professional services industries, service-oriented products are packaged with such items as accounts, agreements, brochures, contracts, databases, documents, equipment, facilities, policies, procedures, and statements.

In the leisure and hospitality industries, service-oriented products such as flights, hotel rooms, car rentals, and limousine services are packaged with facilities, equipment, and supplies. The types of facilities and equipment define specific offerings. For example, an Airbus A380 renders a different experience from a Douglas DC3 even though the principal service is the same: providing air transportation. A hotel room with a view of the ocean renders a different experience from one with no windows at all, even though the principal service is the same: providing accommodation. The quality of the accoutrements such as blankets, pillows, towels, newspapers, cable TV, internet access, and fruit baskets can affect the overall experience. A Cadillac renders a different experience from a Chevrolet, even through the principal service is the same: providing a rental car to drive, or a limousine.

Travel-related service-providers bundle air, hotel, car rental, and limousine services into packages to make the buying decisions easier for consumers. Event planners bundle travel-related services with conference and convention services for enterprises.

Consumables, durables, and facilities…

Manufactured products consist consumables and durables.

Consumables are products change or wear out as they are used and comprise food, clothing, personal care, health care, household supply, and office supply items. Media such as books, records, audio and video CDs, and DVDs are classed as consumables – the intellectual property is worth far more than the media.

Durables are long lasting equipment items such as appliances, furniture, and vehicles.

Digital products may involve no media if they delivered electronically other than the server of the publisher and the electronic device of the user.

Facilities are the outputs of construction activities and are made of durable materials.

Contractual or non-contractual products and/or services…

Agreements are contractual or non-contractual based depending upon the type of offering, and the nature of the relationship between buyers and sellers.

Consumable products can be sold with the right to return for exchange or refund within a certain period of time. Durable products can be sold with agreements that define warranties and maintenance.

Service-oriented products and services can be sold with agreements that specify exactly what is to be delivered and when, with procedures for reporting problems or complaints.

In negotiations, discussions should embrace the specific functions and features of hard and soft products, and the delivery and supporting services. Experienced negotiators pay attention to both the tangibles and intangibles because the total cost of ownership comprises both.

Digital-construction and digital-manufacturing…

As technology continues to develop, service-oriented products will become more common because it makes intangible items definable. New knowledge-based industries will emerge.

The reproduction of software on physical media is classified as goods-producing, and all other development and publishing activities are classified as service-providing under NAICS. However, software and other digital products are durable because they can last indefinitely, even if they have to be transferred among storage media. Software products are developed by service-providers such as business and professional services firms, publishers, and “in-house” developers. Nevertheless, software development activities require the project management disciplines of goods-producing industries, such as construction and manufacturing, to be successful.

The “digital-construction” and “digital-manufacturing” industries are evolving: digital construction delivers software; digital manufacturing delivers soft service-oriented, information, and knowledge-based products. However, through CAD/CAM processes, software delivers hard products too. In the future, almost all hard and soft products will result from digital-construction and digital-manufacturing processes.

Defining product and/or services is an enterpriship (entrepreneurship, leadership, and management) competency.

The Differences Between A Digital Camera And A Traditional Camera – Digital Camera Inner Workings

Digital Cameras use lenses and a shutter to capture light inside the body of the camera just like traditional film cameras, but that is where the similarity ends.

Instead of using film to capture an image as the traditional cameras do, the digital camera captures the image using an image sensor.

These sensors are completely electronic in their operation. They have various internal electronic devices to measure light intensity and a host of other duties.

The complexity of the image sensor determines its rating, measured in MegaPixels. The higher the number of megapixels that a digital camera offers, the greater the clarity and quality of the resulting picture. Also the higher the megapixel rating of the digital camera, the higher the cost of the camera.

Digital cameras function by converting light into an electrical signal that is, in turn, converted into binary (1′s and 0′s) so they can be processed through the digital camera’s on-board computer. After the binary numbers are processed they are stored on the digital memory card or floppy disk.

The digital camera processes the light in such a way that the light is converted into the primary colors of Red, Green and Blue using internal filters. The photographs must be further refined by computer processing to produce the full color photograph. This process is called Demosaicing.

Many cameras offer photo sharpening to make the digital photographs clearer; usually, there are controls on the digital camera to adjust brightness, contrast, and color saturation.

After all this is done — inside the digital camera — the last step is to compress the image and then store it on the memory card.

To load images from a digital camera onto a computer and give you the ability to process the digital picture manually, requires a digital camera that offers this cability. If you would like this feature you should ask if the camera you are considering includes it before making your purchase.

What Is Car Body Glass Coating?

Glass coating is an inorganic material made of a Silica or a Quartz-Silane-based compound. It is used to protect the painted surfaces of car bodies. It is less likely to stain. Unlike traditional wax, its luster and protection can be long-lasting once it is applied. This is because they do not contain materials that oxidize (bind with oxygen). Oxidation weakens the original protection and shine of many car products, thus rendering the car surface prone to damage. It is easy to maintain, provides clean, shiny surfaces and long-lasting protection.

What is the difference between coating and wax?

The main component of wax is carnauba wax oil, which is extracted from palm trees. In recent years, some waxes have added petroleum. Higher quality waxes contain more carnauba oil. Carnauba wax is oil based, so it has water-repellent characteristics and can obscure scratches. However, there are also disadvantages. Waxes can easily become dirty because oil has a high viscosity (thick and sticky). This means dirt can stick to it. Also, wax can easily melt and deteriorate because it is sensitive to heat. Sunshine or engine heat can promote deterioration and cause wax to melt off the car’s surface. Wax can also break down in the rain or when the car is washed.

On the other hand, coating has a chemical composition of silicon, silica, fluorine and titanium. These molecules form a film coating that penetrates between the molecules of the car’s painted surface, creating a very powerful protective layer. Resistant to dirt, heat and rain, coating’s protection and shine will last over a longer period than wax.

There are various kinds of coatings that range in application complexity from simple, which any consumer can apply, to products for professional use only.

During its application, if the car’s surface is dirty and rough, materials will not adhere to car body paint, so surface preparation before application is important.

Types of Glass Coatings

Glass-based coatings can be broadly divided into two categories: quartz-silane based coatings and silica-based coatings.

The quartz-silane-based glass coating, also known as “completely cured glass film type” achieves very high gloss and strong durability. It protects the car body by creating a cured coating of silica on the car’s surface. However, it takes about three weeks for the coating to be fully cured, which is a drawback. It is also expensive because it takes a long time for the product to be formulated.

The silica-based glass coating, also known as “glass fiber type “, also makes a film, coating the surface of the car body. It is fixed to a silicon polymer molecule. It is an easy formulation and, therefore, is costs less to produce. However, its durability and water repellency is inferior compared to the quartz-silane-based.

In addition, some of the fluorine-based coatings, such as Teflon, are used to coat car bodies. They are excellent in durability. However, they are inferior compared to glass coatings and more expensive to formulate. As a result, glass coatings are on the cutting edge of technology’s focus of exploration.

A Glass Coating Hybrid

Currently, there is debate about whether hydrophilic (attracts water) products are more effective than hydrophobic (repels water) products for car care. Glass is hydrophilic. The new types of glass coatings are hybrids, adding a silicone resin layer to the existing glass layer to change the hydrophilic trait of glass to hydrophobic, thus creating a strong water repellant product.

Indoor Furniture, Outdoor Furniture – What’s the Difference?

In the world of furniture manufacturing, there are companies that specialize in indoor furniture, outdoor furniture and between the two there is a limited amount of crossover. Outdoor furniture is built differently than the indoor variety, and while you can always use outdoor furniture inside, the opposite is not always the case. If you are debating moving some furniture for outside for a party or a much longer period of time, know what should and shouldn’t be used, and what can be made over to better handle the elements.

Be a material girl:

You don’t have to be Madonna to figure out that some materials are better suited for the outdoors than others, depending on type of furniture. Outdoor materials need to be sturdy enough to withstand variant temperatures, a certain amount of moisture from rain, dew, etc. and humidity.

Common sense dictates that there are certain materials that should never be taken outside, unless you’re absolutely sure that the weather will be perfect. For instance, carpeting is a disaster when it gets wet. It takes forever to dry, and can mold, and it also gets really stiff when it’s cold. That’s why rugs not meant for the outside should stay inside. Likewise, materials like suede, fleece, and dry-only materials should also not be taken outside. Companies manufacture cushion and deep seating fabrics that mimic the feel of more luxurious materials, but are fully waterproof.

Then there are certain pieces that can go outdoors for limited periods of time before you have to worry. Wicker, for instance, though technically considered patio furniture, is not that strong and holds up much better in sunrooms and away from prolonged exposure to sun and rain. Then there are things like thin pottery, ceramic and plastic pieces that are waterproof but not suitable as furniture, outdoor or in. They aren’t strong enough to withstand extreme temperature changes or strong, inclement weather. Untreated metal is also okay to get wet for short periods, but for much longer than that and you risk it rusting.

Then there are those materials intended for use as outdoor furniture. Outdoor materials are especially hearty but still look visually pleasing. Examples of tables, chairs, planters, and more can be seen made out of the following: treated wood and hardwoods, galvanized metal, powder-coated metal (aluminum, wrought iron, zinc hardware), stone and cement (as tables, benches and umbrella stands), marbles, clay and reinforced ceramics (as planter pots), poly resin plastics and waterproof nylon (used in canopies and as cushion covers).

This list only begins to scratch the surface of the multitude of materials that make up our lives. In all, use your best judgment about whether something can go outdoors. Take into account weather patterns. If it’s really nice out, you can be more lenient about what you take outside as furniture. Outdoor conditions can change rapidly, though, so keep an eye out.

Treating Wood

The best thing you can repurpose for use as indoor furniture/outdoor furniture is wood. It’s no more difficult than adding some varnish and it might save you from unnecessarily buying all new furniture. To begin with, take a look at the wood you’re working with. Stay away from old wood that’s in bad condition, as it will deteriorate at an even more rapid pace once taken outside. Next, check what species of wood you have. Some of the naturally stronger woods, like teak, pine, cedar and cypress, are great for the outside. These woods are already strong and durable on their own and require little extra protection. More delicate woods will require extra sealant and even then they probably won’t last as long outside as hardwoods.

To begin the weatherproofing process, you will need to cover wood with a fade-proof, UV-resistant finish. Sand away any lacquer that may already exist on your furniture. Whatever finish is on there is most likely intended for inside, and while it will give furniture a high gloss shine, it’s not the right kind of varnish that will protect it from moisture and the outdoor elements. After the surface is smooth, even and clean you can apply a sealant, usually an oil-based varnish, unless you’re working with a wood that produces its own oils, like teak and cedar furniture. Outdoor atmospheric elements will dry out wood more quickly than furniture that’s kept indoors, so it’s important to protect the surface and heartwood against cracking, rotting and warping. Once that’s complete, you’re good to go. From then on, simply oil and clean your wood furniture once to twice a year to keep it healthy.