Service enterprise productivity in action (SEPIA)

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International Series in Operations Research and Management Science, 2014, 215 pp. 93 - 114
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© Springer-Verlag Berlin Heidelberg 2014. Services [Service sectors include financial services (banking, insurance, securities, fund management), professional services (accounting, legal, engineering, architecture), health services, education services, environmental services, energy services, logistics, tourism, information technology, telecommunications, transport, distribution, standards and conformance, audio-visual, media, entertainment, cultural and other business services (Australian Services Round Table Memorandum of Understanding with Australia 2009)] are becoming increasingly important to the Australian economy and that of other developed and developing economies. Yet, evidence shows that as production moves from agriculture and manufacturing to service- and knowledge-based economies, productivity growth rates have declined. To date there are no clear indicators for quantifying productivity for service and network based firms. This raises the question: How can productivity be measured for service and network based firms? This chapter presents a systems view of productivity and is organized into five sections: Overview of productivity; Current measures of productivity using KLEMS; Existing Service Productivity Models; Service Enterprise Productivity in Action (SEPIA) model, and New Measures for Service Enterprise Productivity. The key contribution of this chapter involves the operationalisation of the SEPIA model and an illustration of the model through the use of an industry example.
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