Preparing for Accelerated Third Order Impacts of Digital Technology in Post Pandemic Service Industry: Steep Transformation and Metamorphosis

COVID-19 has expedited digital technology adoption in the service sector ever under severe constraints. However, if not suitably appropriated, this haste adoption of digital technology might have unintended adverse effects in the longer term. In this introductory chapter, a theory of third-order impacts of digital technology is introduced to explore the effects of digital technology adoption in the service sector organizations. The third-order changes will have more profound implications for future services beyond the simple digitalization of service routines. Although third-order changes may occur much later, preparation is critical because the first-order adoption and the second-order adaptation may form a basis for the third-order metamorphosis. We hope that this theoretical lens is useful in providing foresight for the changes in the nature of services in the post-pandemic. As an exemplary analysis, the first-, second-, and third-order changes are extracted from the six cases of service transformation presented in this volume, and contrasted with each other. Finally, a refined theory of third-order changes in the service sectors is proposed in relation to the evolution of digital technology, and its implications are discussed.