The service sector is the largest and most rapidly expanding part of the economy of
advanced industrial nations. The major service industry groups are financial services,
insurance, real estate, business services, and health services. Within these
service industry groups, companies can be further categorized into those that
involve transaction brokering and those that involve providing a “hands-on” service.
With some exceptions, the service sector is by and large a knowledge- and information-
intense industry. For this reason, many services are uniquely suited to e-commerce
and the strengths of the Internet.
The rapid expansion of e-commerce services in the areas of finance, including
insurance and real estate, travel, and job placement, can be explained by the ability
of these firms to:
• Collect, store, and disseminate high-value information
• Provide reliable, fast communication
• Personalize and customize service or components of service
E-commerce offers extraordinary opportunities to improve transaction efficiencies
and thus productivity in a sector where productivity has so far not been markedly
affected by the explosion in information technology.
The service sector is the largest and most rapidly expanding part of the economy ofadvanced industrial nations. The major service industry groups are financial services,insurance, real estate, business services, and health services. Within theseservice industry groups, companies can be further categorized into those thatinvolve transaction brokering and those that involve providing a “hands-on” service.With some exceptions, the service sector is by and large a knowledge- and information-intense industry. For this reason, many services are uniquely suited to e-commerceand the strengths of the Internet.The rapid expansion of e-commerce services in the areas of finance, includinginsurance and real estate, travel, and job placement, can be explained by the abilityof these firms to:• Collect, store, and disseminate high-value information• Provide reliable, fast communication• Personalize and customize service or components of serviceE-commerce offers extraordinary opportunities to improve transaction efficienciesand thus productivity in a sector where productivity has so far not been markedlyaffected by the explosion in information technology.
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