Development of Service
Industry in IRAN
Ebrahim Eghbal
Industrial Management Institute (IMI),
IRAN
History
Geopolitics aspects and critical location of Iran in the
ancient SILK ROAD emerged the service industry in some
relevant segments like trading, hospitality and hosting,
traditional banking, etc.
2
Socioeconomic Trend
Oil discovery, extraction in the past century,
and nationalizing in 1950s
Major investment in manufacturing sectors
specially in petroleum, automotive, and other
large scale industries in 1960 - 1980
Emerging needs for service providing in 1990s
Strategic rotation to service industry, particular
in transport sector, insurance, tourism, and etc.
3
Main Drivers
Two important targets in Iran's 4th
development plan:
Increasing the percentage of service
sector in GDP
Overwhelming the barriers to trigger the
investment in service sector
Iran applied for WTO membership and trying
to find competitive advantage through
expanding service sector
4
Current Situation
Iran’s economy is marked by a bloated,
inefficient state sector.
Most economic activities are controlled by the
state.
Increasing private investment in service
sector with:
Small and Medium size
Internal and External problems
5
Current GDP
6
Current Major Services
Professional services:
Banking, Insurance, Consulting, …
Trading Services:
retail, selling, maintenance, Customer services, …
Infrastructure Services:
Telecommunication, Transportation, …
Public Services:
Training and Education, Health Care, Security, Research, …
Individual Services:
Restaurant and Catering, properties agencies, kinder
garden, …
7
Emergent Services
New emergent high potential services in
Iran:
Web based services
Public services
Modern Transportation services
Tourism services
Customer services
Health care services
etc.
8
ICT Opportunities for Service
Sector
National ICT Master Plan
Credit cards expansion
E-purchasing facilities
GIS and GPS facilities
…
9
Existing Barriers for Service Sector
Constraints of public laws
Weakness of the banking law
Lack of a Copyright law
Managerial problems:
Lack of management knowledge
Lack of experience in Service Management
Using Traditional Organizational Structures
Lack of enterprise-wide network linkage
10
IMI Role In Service Sector
An Introduction to IMI
IMI Lines of Businesses:
Consulting:
Service Business Modeling
Education:
MBA in Service Management
Training:
short-term courses and professional workshops for
service managers
11
IMI Market In Service Sector
Targeted Market Segment:
Finance and Credit Institutes
Insurance Institutes
Holdings
Funding Institutes
Transportation and Logistics Organizations
GCs
Training and Education Institutes
Research Centers
Hotels and Tourism Agencies
Advertisement Companies
Distributors
Health Care Institutes
Building Companies
Government Organizations
12
We are ready to collaborate with APO in area of
service sector in Asia for knowledge and
expertise sharing.
13
Thank you
14