Like its name suggests, the service industry is the industry concerned with provision of services rather than production of tangible. It is a broad category of the economy. The other category is the goods industry such as manufacturing firms which produces tangible objects.

Example of service industries include the transport sector, entertainment industry, computing services, plumbing and the medical sector with retailers too forming a part of the service industry.

Over the years, the service industry also called the tertiary industry has increasingly grown as compared to the goods industry and the most logical explanation for this is that production of goods is becoming automated creating a reduction in the human workforce needed in latters sector. For this reason, people prefer working in service industry as it ensures job security among other positive factors.

The industry however faces challenges too. Most of the problems defer according to the service industry of concern, with the financial industry such as the banking sector, being the mother of almost all industries, is probably the most affected service industry. Affecting its activities may impact on the way all other industries run. The major problems these industries face include:

Cyber crime

This includes problems such as hacking into databases, viruses and cyber-attacks. People don’t have to enter banks and steal money physically anymore. This is really difficult to handle as one is never sure how secure the security measures they have in place concerning cyber-crime are. This needs constant scrutiny of the IT systems and update of the security system in place which is adds extra cost to the industry.

Culture

The differences and diversities that culture bring do affect the tertiary industry in a big way. The most problematic part is culture changes unexpectedly with time and this means that the industry too has to adapt to the changes. This makes it difficult for analysts to forecast and predict maximum returns. They all have to sit and wait for things to change. This means that the industry has to be extra-dynamic and adaptive to changes.

Technology has become part of the service industry and its effects are positive, take for an instance, NFC membership card implementation.

Systems like that we offer at ERP:FM is a web based facility management system, and that has reduced companies expenditures significantly. The system comes completely online with the utilization of HTML5, which allow one to store records, utilities and maintain and manage them online. This process has cut the budget needed by companies to keep up facilities.

With our electronic point of sale terminals (EPOS) too has become useful to the retail industry. The technology has been embraced and widely used especially in supermarkets, malls and large stores. It has increased the speed of flow and the convenience with which things are done in the retail sector. Special point of sale software such as the kitchen monitor are being used in almost all restaurants with stock control omponents have also been distributed to vendors to keep stock and records of their activities.

These example shows how differently technology affects the service industry, unlike in the goods industry where technology causes unemployment, it increases job opportunities in the tertiary industry. This is why most developed countries have invested more in the service sector than the goods industry. The industry is revolutionary and promises to go a long way in bringing development.