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How Technological Innovation is Revolutionising the Service Industry

Written by H2O Team

The service industry encompasses a variety of activities that provide value to customers including education, hospitality and entertainment.  It has existed for centuries, but its importance has increased in the modern economy. The service industry has evolved through the years impacted by technological innovation. Before the Industrial Revolution, most people were engaged in primary activities producing products. The service industry was limited to basic services such as trade. The Industrial Revolution tremendously transformed the production of goods, leading to increased urbanization, specialization, and mechanization. The service industry expanded to include new services such as finance, communication and health care. 

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Photo Credits 1 Museums Victoria Trevor Pearcey and CSIR Mk 1, 1952, ©Unsplash.com

These services supported the growth and development of the manufacturing sector and improved the living standards of the population. In the second half of the 20th century, the service industry surpassed the manufacturing sector in terms of employment and output in most developed countries. This was driven by several factors such as technological advancements, consumerism, and globalization. The service industry became more diverse and complex with new offerings such as information technology, consulting, and professional services. In the 21st century, the service industry is undergoing another major transformation due to the emergence of digital technologies such as artificial intelligence (AI), internet of things (IoT), cloud computing, big data analytics and blockchain. These technologies enable new ways of delivering and consuming services that are more efficient and more available to a wider audience. The service industry is facing many opportunities and challenges in the current environment. Customers today have higher expectations than ever before regarding the quality, convenience and personalization of services. Service providers need to constantly innovate and improve their offerings to meet or exceed customer expectations and create loyal customers.

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Photo Credits 2 Customer Service ©Canva.com

The evolution of human history is also linked to the development of machines. The invention of simple machines such as the lever, pulley and wheel allowed humans to magnify or reduce the forces necessary to perform a task.  More complex machines such as the printing press revolutionized society by standardizing language, increasing literacy and making information more readily available.  In the late 1700’s the industrial revolution began the transition from hand production methods to machines.  Steam power enabled the development of the mechanized factory system. In the late 1800’s a second industrial revolution occurred where mass production, assembly lines and the creation of the electrical grid system spurred rapid economic growth. All of these innovations were focused on physical work. 

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Photo Credits 3 – Industrial Revolution Timeline Infographic ©AQS by Aliaxis

The rise of computers can be traced to the development of the ENIAC system which was the first electronic digital device. Its main purpose was to perform mathematical calculations. This began the use of machines to do mental work. As mainframe computers developed, analysis was performed at a centralized location. Transistors and miniaturization allowed for the invention of personal computers and smart phones. This allowed computing to be done in a distributed manner. As devices became more powerful and more data was generated a move was made to re-centralize computing in the cloud.  The emergence of cloud computing enabled software to be installed on off-premise remote servers available to all those with an internet connection. Over time, improvements to the internet decreased the cost of hosting, leading to platforms lifting many of the early bandwidth limitations making online business processes faster and more reliable.

The newest innovation in the service industry officially began in 1999 when Salesforce launched their customer relationship management (CRM) platform as the first Software as a Service (SaaS) solution built from scratch. Cost-efficiency, ease of use, and improvements to core functionality all led to exponential growth in SaaS.  SaaS is a subscription-based software solution that allows customers to only pay for what they use.  It is a subset of “Everything-as-a-Service” where all core components of cloud computing including communications, infrastructure and data can be accessed.

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Photo Credits 4 – © Canva.com

There has been an oscillation between decentralized and centralized physical work from handmade to factory and back to artesian, and now there is the same oscillation in service work. Service began very personal and evolved into an automated assistant or chatbot. Customers must now rely on digital solutions that are remotely cloud based to perform their business. These solutions focus on automation to reduce the reliance on human resources.  Algorithms are developed to answer customer questions and reduce human to human interaction. There are great benefits to software solutions and the brave new world of machine learning and artificial intelligence. More detailed analyses can be accomplished in a shorter time than by humans alone. But, relying on this machine attribute alone is potentially a mistake.  There is a lack of insight and nuance from the programs that cannot yet be matched by the human brain. There needs to be a more formal interaction between humans and machine to obtain the best from both worlds.  The analysis capabilities of machines along with the nuance of the human condition can provide a much better experience for customers. 

One company that has embraced this model is AQS (Aquarius Spectrum). 

Aquarius Spectrum’s operational philosophy rests on a commitment to being customer oriented. This commitment is a strategic pillar that shapes the business model.  A key embodiment of this dedication is the innovative “Human-as-a-Service” (HaaS) offering, spearheaded by a customer success team.

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Photo Credits 5 – Customer Success Team Member reviewing AQS-SYS Platform ©AQS by Aliaxis

AQS views each customer as unique, with distinct challenges and goals. The HaaS offering ensures a personalized engagement model, recognizing the individual needs of every client. This tailored approach goes beyond standard solutions, aligning AQS’s efforts with the specific objectives of each customer.

AQS supports water utilities around the world to reduce their water loss through high-performance leak management solutions combined with superior tailor-made Human-as-a-Service (HaaS) offering Their solution consists of installing acoustic correlating sensors on the water supply system (distribution or transmission lines) that collect data to detect leakages in the pipe. The data is collected and backhauled to the cloud and analyzed to detect leaks and pinpoint their precise locations.

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Photo Credits 6 AQS Leak Detection Solution Infographic ©AQS by Aliaxis

This information is passed on to the utility managers so that crews can be deployed to repair the pipe before large quantities of water are lost or significant damage is done due to a pipe burst. The dedicated customer success team is empowered to discuss the results of the analysis with the customers on a regular basis so that the data can be interpreted in the most coherent manner.

This team is not only an operational support function, but a strategic partner invested in the success of the customer. Work is done collaboratively, understanding the intricacies of the customer’s operations, and aligning AQS’s technology to maximize its impact on their specific challenges.

The customer success team at AQS operates with foresight. Instead of merely reacting to issues, they proactively anticipate challenges that customers might face in their unique contexts. This proactive approach ensures that potential roadblocks are identified and addressed before they become critical, fostering a seamless customer experience.

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Photo Credits 7 Meeting with Customer to revie project, ©AQS by Aliaxis

AQS’s commitment to customer success goes beyond the initial implementation phase. The team consistently engages with customers to gather feedback, understand evolving needs, and implement continuous improvements. This iterative process ensures that AQS’s solutions evolve in tandem with the dynamic requirements of their customers.

Beyond the immediate solutions, AQS recognizes the importance of empowering customers with knowledge. The HaaS offering includes educational components aimed at enhancing the customer’s understanding of the technology, enabling them to harness its full potential independently.

AQS views each customer relationship as a long-term partnership. The HaaS model is designed to align AQS’s success with that of its customers. As the customer grows and evolves, so does AQS, ensuring that the partnership remains mutually beneficial and enduring.

In embracing a Human-As-A-Service offering, AQS sets the benchmark for what it means to be customer-oriented. The commitment to personalized engagement, proactive problem solving, knowledge sharing, and building long-term partnerships reflects not just a business strategy but a genuine dedication to the success and satisfaction of every customer.

By Koen Verweyen

CEO, AQS (Aquarius Spectrum)