A service operating system is the manner in which inputs are organized and used to provide service outputs.

As shown above, without a customer the objective of service cannot be delivered and therefore the customer must be regarded as input into the system providing the service.

Other resources which are inputs into the system include:

1. Materials. Materials used by the operating system include utilities such as energy, water and gas. Materials also include goods that are consumed by the system, goods that are transformed by the system, and goods held for sale. (Transformation refers to changing the shape or form of inputs to produce an output - for example, by placing lettuce leaves, a slice of ground beef and a slice of tomato between two halves of a bun we have combined and transformed several goods to produce a new good, commonly known as a hamburger.)

2. Machines/equipment. Machines and equipment include computers, communication equipment, plant, fittings, vehicles, display racks etc., and real estate property available to the operating system.

3. People. This means not only the number of people employed in the operating system, but also includes the quality of the people (their knowledge and skill levels, and dependability and attitude).

All of the above represent either a capital investment or an ongoing expense to the organization.

Resources can be tangible or intangible. Tangible resources are physical, and the amount or rate of use can be measured in quantifiable terms. Intangible resources are more...