Your SlideShare is downloading. ×
0
Knowledge Intensive Business Services - KIBS Ian Miles [email_address] IME service innovation seminar 7
Sets of Services Whole Economy Including nonservices – AFF, extractive,  construction, manufacturing, utilities SERVICES B...
KIBS – classic definition (1995) <ul><li>As a first approach to a definition, we understand KIBS to be services that: </li...
KIBS – EMCC (2005) <ul><li>As business services, KIBS are mainly concerned with providing knowledge-intensive inputs to th...
What services are KIBs? <ul><li>Starting point: Business Service sectors: Most of NACE 72-74 </li></ul><ul><li>•  Architec...
A few KIBS are elsewhere <ul><li>Services to specific sectors </li></ul><ul><li>Some parts of section M (training), N (vet...
How important are these services? …share of economy…. Eurostat, 2007, European Business 15.5% EU employment;  14.5% VA
Relative Scale of various   BS in the UK, 2000 Rapid growth, across industrial world 0 10   20   30   40    50    60   70 ...
KIBS Graduate-Intensity ??? CIS3 data, UK “ technology-based KIBS” &quot;professional KIBS&quot;
So, why have KIBS grown? what do KIBS do? <ul><li>Outsourcing. </li></ul><ul><li>New knowledge demands. </li></ul><ul><li>...
Knowledge of internal characteristics and external environments – Competitors Clients, Suppliers Collaborators Regulators ...
Knowledge of internal characteristics and external environments – What’s the background? What’s the problem? What’s the so...
Knowledge Intermediators Universities  Laboratories  Governments  Other   KIBS  Clients  Suppliers  etc.  External (generi...
Its an Interactive Process! Universities  Laboratories  Governments  Other   KIBS  Clients  Suppliers  etc.  External (gen...
Relations with Clients are Central <ul><li>Tordoir: Jobbing, Sparring, Sales  P P Tordoir, 1996,  The Professional Knowled...
Relations with Clients are Central <ul><li>Tordoir: Jobbing, Sparring, Sales  P P Tordoir, 1996,  The Professional Knowled...
Relations with Clients are Central Client Problem formulation Agreement on shared problem definition Interaction around fe...
KIBS Professional Workers <ul><li>Retention </li></ul><ul><li>Motivation and Governance </li></ul><ul><li>Collaboration </...
Work  Experience  across Sectors
Work  Experience  across Sectors
KIBS are often particularly innovative  - UK CIS4 data Manufactured product  Service Product (good)   (service) UK CIS4 da...
KIBS are often particularly innovative 2 - UK CIS4 data UK CIS4 data: “ Understanding Hidden Innovation: Services in the U...
KIBS are often particularly innovative 4 - UK CIS4 data UK CIS4 data: “ Understanding Hidden Innovation: Services in the U...
KIBS are often particularly innovative 5 - UK CIS4 data UK CIS4 data: “ Understanding Hidden Innovation: Services in the U...
Structure of Innovation Spend in Services UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK  “  Programm...
Business Services UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK  “  Programme on Regional Innovation...
Effecting Innovation   1 KIBS Innovation Data production, processing, knowledge generation, generalisation, synthesis meth...
Its an Interactive Process! Universities  Laboratories  Governments  Other   KIBS  Clients  Suppliers  etc.  External (gen...
Interactive Innovation External (generic) knowledge resources Firm’s experience of problem KIBS fusing generic and local  ...
Swedish KIBS Survey (N ä hlinder) 1000 KIBS firms (Higher for less standardised services) (All higher for more innovative ...
UK environmental services 100 firms, 1995 Orientation to technology
Hipp - German Survey Services vary in standardisation…  some more designed for clients… especially in KIBS Surprisingly lo...
Hipp - German Survey <ul><li>Half  the innovating service firms thought their innovations  positively impacted client perf...
But what is the User’s View ?   PWC study of consultants’clients    2006 180 clients, large range of consultancy services ...
The User’s View ?   PWC study of consultants’clients, 2006 180 clients, large range of consultancy services
User’s View of Benefits –  PWC 2006
2010 MCA study <ul><li>http://www.mca.org.uk/value-consulting </li></ul><ul><li>Management consulting </li></ul>
Main conclusions on the industry
Main conclusions on users
Muller and Zenker– KIBS & SMEs Muller E, & A Zenker (2001) &quot;Business services as actors of knowledge transformation: ...
BS and their users’ performance – Value added ECORYS analysis of EU15 data
BS and their users’ performance – employment and productivity more complicated! ECORYS analysis of EU15 data
Who are the Users? Input Output data Various  EU  countries, c1995 Intensive users Major markets
Survey of Swedish KIBS Services  Manufacturing  Public Sector  Households Ranking of users First  Second Third Fourth
Who are the Users? UK 1995 UK - Business Services mainly supporting other services Computer  R&D  Other bus. services  ser...
Who are the Users? France 1995 France  - Business Services mainly supporting other services, except  R&D services Computer...
Top Ten Users- R&D Services UK  c1995 85% of output goes to top 20 - 9 are services, many public
Implications for  Innovation <ul><li>Apart from freeing up resources, & being dispensable… </li></ul><ul><li>KIBS are spec...
Some implications –    practical issues and research questions <ul><li>“  Absorption capacity” – what capabilities and pra...
KIBS’ importance recognised <ul><li>Important innovators </li></ul><ul><li>Important sources and “intermediaries” of knowl...
End of Presentation
Upcoming SlideShare
Loading in...5
×

Kibs

4,818

Published on

Knowledge intensive Business Services - presentation for 2010 IME seminar in Manchester MSc course

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
4,818
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
113
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • FEATURES OF WORK IN SECTORS OF EUROPEAN ECONOMY (EU27+)2005 Source : derived from data presented in Fourth European Working Conditions Survey Parent-Thirion et al (2007) Notes: countries covered are EU27 plus Croatia, Norway, Switzerland, Turkey. The comparison with the average for employees will not take into account the experience of self-employed people.
  • FEATURES OF WORK IN SECTORS OF EUROPEAN ECONOMY (EU27+)2005 Source : derived from data presented in Fourth European Working Conditions Survey Parent-Thirion et al (2007) Notes: countries covered are EU27 plus Croatia, Norway, Switzerland, Turkey. The comparison with the average for employees will not take into account the experience of self-employed people.
  • Transcript of "Kibs"

    1. 1. Knowledge Intensive Business Services - KIBS Ian Miles [email_address] IME service innovation seminar 7
    2. 2. Sets of Services Whole Economy Including nonservices – AFF, extractive, construction, manufacturing, utilities SERVICES Business-related Services KIBS Business Services
    3. 3. KIBS – classic definition (1995) <ul><li>As a first approach to a definition, we understand KIBS to be services that: </li></ul><ul><li>Rely heavily upon professional knowledge. Thus, their employment structures are heavily weighted towards scientists, engineers, experts of all types. Many are practitioners of technology and technical change, Whatever their technological or professional specialism, they will also tend to be leading users of Information Technology to support their activities. </li></ul><ul><li>Either supply products which are themselves primarily sources of information and knowledge to their users (e.g. measurements, reports, training, consultancy); </li></ul><ul><li>Or use their knowledge to produce services which are intermediate inputs to their clients' own knowledge generating and information processing activities (e.g. communication and computer services). These client activities may be for internal use or supplied to yet other users in turn. </li></ul><ul><li>Have as their main clients other businesses (including public services and the self-employed). Indeed, knowledge-intensive activities will frequently tend to be business-related, since as labour-intensive activities they will be relatively costly. (Educational and medical services demonstrate that delivery to final consumers often has to be mediated through collective service organisation.) </li></ul><ul><li>Miles et al (1995) at http://www.mbs.ac.uk/research/centres/engineering-policy/publications/reports.htm </li></ul>
    4. 4. KIBS – EMCC (2005) <ul><li>As business services, KIBS are mainly concerned with providing knowledge-intensive inputs to the business processes of other organizations. These other organizations can, and often do, include public sector clients – KIBS do not only provide services to businesses. </li></ul><ul><li>Knowledge-intensity is not easy to measure, but one convenient indicator is the shares of graduates in an industrial workforce. By this measure, KIBS are unusually high in terms of graduate-intensity. The graduates have been trained in different areas of knowledge: some specialize more in scientific and technological knowledge, others more in administrative, managerial or sociolegal affairs. </li></ul>http://www.emcc.eurofound.eu.int/publications/2005/ef0559en.pdf
    5. 5. What services are KIBs? <ul><li>Starting point: Business Service sectors: Most of NACE 72-74 </li></ul><ul><li>• Architectural activities • Engineering activities </li></ul><ul><li>Technical testing and analysis </li></ul>Technical 74 74.2,.3 <ul><li>• Secretarial and translation activities • Photography </li></ul><ul><li>Packing activities • Fairs & exhibitions </li></ul>Other 74.81-84 • Security activities • Industrial cleaning Operational 74.6, 74.7 • Labour recruitment and provision of personnel Labour recruitment 74.5 • Market research • Advertising Marketing 74.13, 74.4 <ul><li>• Legal activities • Accounting & tax consultancy </li></ul><ul><li>Management consulting </li></ul>Professional 74.11- .12, 74.14 • Research and experimental development on natural sciences and engineering • … on social sciences and humanities R&D 73 73.1, .2 <ul><li>• Hardware consultancy • Software consultancy </li></ul><ul><li>Data processing • Database activities </li></ul>Computer 72 72.1 – 6 • Renting of transport, construction equipment, office machinery Leasing & renting 71 71.1, .2 Most important activities Business Services NACE Classn
    6. 6. A few KIBS are elsewhere <ul><li>Services to specific sectors </li></ul><ul><li>Some parts of section M (training), N (veterinary), and O (Other community, social and personal service activities): NACE Rev 1 </li></ul><ul><ul><li>91.1 Activities of business, employers’ and professional organizations </li></ul></ul><ul><ul><li>92.1 Motion picture and video activities 921x </li></ul></ul><ul><ul><li>92.11 Motion picture and video production 9211x </li></ul></ul><ul><ul><li>92.12 Motion picture and video distribution 9211x </li></ul></ul><ul><ul><li>92.13 Motion picture projection 9212 </li></ul></ul><ul><ul><li>92.2 Radio and television activities 921x </li></ul></ul><ul><ul><li>92.20 Radio and television activities </li></ul></ul><ul><ul><li>92.31 Artistic and literary creation and interpretation (includes Technical Writing!) </li></ul></ul><ul><ul><li>92.40 News agency activities </li></ul></ul><ul><ul><li>92.51 Library and archives activities </li></ul></ul>
    7. 7. How important are these services? …share of economy…. Eurostat, 2007, European Business 15.5% EU employment; 14.5% VA
    8. 8. Relative Scale of various BS in the UK, 2000 Rapid growth, across industrial world 0 10 20 30 40 50 60 70 VALUE ADDED bn euros
    9. 9. KIBS Graduate-Intensity ??? CIS3 data, UK “ technology-based KIBS” &quot;professional KIBS&quot;
    10. 10. So, why have KIBS grown? what do KIBS do? <ul><li>Outsourcing. </li></ul><ul><li>New knowledge demands. </li></ul><ul><li>KIBS provide, or use, knowledge that clients lack (in sufficient quantity) </li></ul><ul><li>But what sorts of knowledge and what sorts of uses? </li></ul><ul><li>Answer – practically any knowledge, and a wide range of uses (later)! </li></ul>
    11. 11. Knowledge of internal characteristics and external environments – Competitors Clients, Suppliers Collaborators Regulators Financiers Markets Social & Institutional Env Natural & Physical Env Process Technology Management Organisational Structure/ Design Routines Techniques Human Resources Product Technology & Design Health and Safety
    12. 12. Knowledge of internal characteristics and external environments – What’s the background? What’s the problem? What’s the solution? How to effect it? Putting it into practice <ul><li>Knowledge applied to Problem solving: </li></ul><ul><li>Support for self-diagnosis </li></ul><ul><li>Diagnosis </li></ul><ul><li>Prescription </li></ul><ul><li>Configuration </li></ul><ul><li>Implementation of Solutions </li></ul>
    13. 13. Knowledge Intermediators Universities Laboratories Governments Other KIBS Clients Suppliers etc. External (generic) knowledge resources * Firm’s absorption of knowledge KIBS synthesising and translating generic knowledge Intelligence Diagnosis Prescription (Configuration) Implementation
    14. 14. Its an Interactive Process! Universities Laboratories Governments Other KIBS Clients Suppliers etc. External (generic) knowledge resources * * including previous service encounters Client’s knowledge and experienced problem KIBS fusing generic and local knowledge – and creating new knowledge through R&D etc Intelligence Diagnosis Prescription (Configuration) Implementation Preliminary Problem Formulation Coproduction and Absorption of Solution
    15. 15. Relations with Clients are Central <ul><li>Tordoir: Jobbing, Sparring, Sales P P Tordoir, 1996, The Professional Knowledge Economy: The Management and Integration of Professional Services in Business Organizations, Dordrecht, Kluwer Academic </li></ul>Christian Schulz (2000) “Environmental service-providers, knowledge transfer, and the greening of industry” paper given at IGU Commission on the Organization of Industrial Space Annual Residential Conference: Industry, Knowledge and Environment , Dongguan / China, 8-12 August 2000
    16. 16. Relations with Clients are Central <ul><li>Tordoir: Jobbing, Sparring, Sales P P Tordoir, 1996, The Professional Knowledge Economy: The Management and Integration of Professional Services in Business Organizations, Dordrecht, Kluwer Academic </li></ul><ul><li>Gallouj: Client Roles and Strategies in Managing Relationship – esp. selecting KIBS/specifying services C Gallouj, 1997, “Asymmetry of information and the service relationship: selection and evaluation of the service provider”, International Journal of Service Industry Management , Vol. 8 No. 1, 1997, pp. 42-64. </li></ul><ul><li>Bettencourt: role responsibilities for clients effective coproduction </li></ul><ul><ul><li>communication openness, </li></ul></ul><ul><ul><li>shared problem solving, </li></ul></ul><ul><ul><li>tolerance, accommodation, </li></ul></ul><ul><ul><li>advocacy, </li></ul></ul><ul><ul><li>involvement in project governance </li></ul></ul><ul><ul><li>personal dedication Bettencourt et al, 2002, “Client Co-Production in Knowledge-Intensive Business Services” California Management Review , Vol. 44, Issue 4 </li></ul></ul>
    17. 17. Relations with Clients are Central Client Problem formulation Agreement on shared problem definition Interaction around features of problem Delivery of solution Implementation of solution Reaction to client’s formulation of problem Agreement on shared problem definition Interaction around features of problem Formulation of solution Delivery of solution Ongoing support – “afterservice” Information interchanges Service Firm
    18. 18. KIBS Professional Workers <ul><li>Retention </li></ul><ul><li>Motivation and Governance </li></ul><ul><li>Collaboration </li></ul><ul><li>Knowledge Exchange and Capture </li></ul><ul><li>Good source: Dawson, R., 1999, Developing Knowledge-Based Client Relationships: The Future of Professional Services , Boston: Butterworth-Heinemann </li></ul>
    19. 19. Work Experience across Sectors
    20. 20. Work Experience across Sectors
    21. 21. KIBS are often particularly innovative - UK CIS4 data Manufactured product Service Product (good) (service) UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK “ Programme on Regional Innovation, Cambridge-MIT Institute 2008 report to NESTA Product Innovation
    22. 22. KIBS are often particularly innovative 2 - UK CIS4 data UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK “ Programme on Regional Innovation, Cambridge-MIT Institute 2008 report to NESTA Process Innovation
    23. 23. KIBS are often particularly innovative 4 - UK CIS4 data UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK “ Programme on Regional Innovation, Cambridge-MIT Institute 2008 report to NESTA NOVEL Innovation: new to market or industry
    24. 24. KIBS are often particularly innovative 5 - UK CIS4 data UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK “ Programme on Regional Innovation, Cambridge-MIT Institute 2008 report to NESTA Innovation Expenditure per employee
    25. 25. Structure of Innovation Spend in Services UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK “ Programme on Regional Innovation, Cambridge-MIT Institute 2008 report to NESTA Innovation Expenditure
    26. 26. Business Services UK CIS4 data: “ Understanding Hidden Innovation: Services in the UK “ Programme on Regional Innovation, Cambridge-MIT Institute 2008 report to NESTA Innovation Expenditure
    27. 27. Effecting Innovation 1 KIBS Innovation Data production, processing, knowledge generation, generalisation, synthesis methods; presentation tools; specific technologies and techniques for problem area... Client Innovation Reduced risks, accelerated learning, new ideas, training, freer resources, focus on core problems Coproduction of Innovation Interactive learning about problems and potential solutions; new market opportunities
    28. 28. Its an Interactive Process! Universities Laboratories Governments Other KIBS Clients Suppliers etc. External (generic) knowledge resources * * including previous service encounters Client’s knowledge and experienced problem KIBS fusing generic and local knowledge – and creating new knowledge through R&D etc Intelligence Diagnosis Prescription (Configuration) Implementation Preliminary Problem Formulation Coproduction and Absorption of Solution
    29. 29. Interactive Innovation External (generic) knowledge resources Firm’s experience of problem KIBS fusing generic and local knowledge Preliminary Problem Formulation Coproduction and Absorption of Solution Intelligence Diagnosis Prescription Configuration Implementation Knowledge of environments & technologies; scientific & engineering principles; innovation-relevant market conditions, regulations, laws Better understanding of problem, ways of measuring and monitoring Reduced risk in defining solution; introduction of new types of solution Easier learning and application of experience in combining processes Saving resources that can be applied to core products, processes - & other goals
    30. 30. Swedish KIBS Survey (N ä hlinder) 1000 KIBS firms (Higher for less standardised services) (All higher for more innovative firms)
    31. 31. UK environmental services 100 firms, 1995 Orientation to technology
    32. 32. Hipp - German Survey Services vary in standardisation… some more designed for clients… especially in KIBS Surprisingly low specialisation – may depend on question – cf Nahlinder
    33. 33. Hipp - German Survey <ul><li>Half the innovating service firms thought their innovations positively impacted client performance/productivity – 16% “very important” productivity, 13% performance. Fewer for the firms supplying standardised solutions - 1/3 </li></ul><ul><li>4/5 of software firms thought this (as opposed to only 2/5 financial firms, for instance) </li></ul><ul><li>Service innovation>organisational innovation (but this can have an impact too) </li></ul>
    34. 34. But what is the User’s View ? PWC study of consultants’clients 2006 180 clients, large range of consultancy services http://www.wwyltc.com/Ensuring-sustainable-value-from-consultants.pdf
    35. 35. The User’s View ? PWC study of consultants’clients, 2006 180 clients, large range of consultancy services
    36. 36. User’s View of Benefits – PWC 2006
    37. 37. 2010 MCA study <ul><li>http://www.mca.org.uk/value-consulting </li></ul><ul><li>Management consulting </li></ul>
    38. 38. Main conclusions on the industry
    39. 39. Main conclusions on users
    40. 40. Muller and Zenker– KIBS & SMEs Muller E, & A Zenker (2001) &quot;Business services as actors of knowledge transformation: the role of KIBS in regional and national innovation systems&quot; Research Policy vol 30 no 9 pp 1501-1516.
    41. 41. BS and their users’ performance – Value added ECORYS analysis of EU15 data
    42. 42. BS and their users’ performance – employment and productivity more complicated! ECORYS analysis of EU15 data
    43. 43. Who are the Users? Input Output data Various EU countries, c1995 Intensive users Major markets
    44. 44. Survey of Swedish KIBS Services Manufacturing Public Sector Households Ranking of users First Second Third Fourth
    45. 45. Who are the Users? UK 1995 UK - Business Services mainly supporting other services Computer R&D Other bus. services services services
    46. 46. Who are the Users? France 1995 France - Business Services mainly supporting other services, except R&D services Computer R&D Other bus. services services services
    47. 47. Top Ten Users- R&D Services UK c1995 85% of output goes to top 20 - 9 are services, many public
    48. 48. Implications for Innovation <ul><li>Apart from freeing up resources, & being dispensable… </li></ul><ul><li>KIBS are specialists - in acquiring, possessing and communicating knowledge. Alternative to labour mobility . </li></ul><ul><li>Able to draw on generalised knowledge from other firms and sectors. FUSION – and some creation of knowledge </li></ul><ul><li>Less wedded to heritage, organisational rigidities, factions </li></ul><ul><li>But… how far do they really help clients move in new directions? (E.g. : what role in move to cleaner technology?) </li></ul>
    49. 49. Some implications – practical issues and research questions <ul><li>“ Absorption capacity” – what capabilities and practices clients need to effectively select KIBS, define problems, use solutions? </li></ul><ul><li>“ Organisational amnesia” – how can they cope with loss of memory when activities outsourced? </li></ul><ul><li>Knowledge management (a) capture of new learning; (b) across organisational boundaries; (c) across professions? </li></ul><ul><li>Standard solutions vs. sensitivity to organisational culture, national circumstances, etc. </li></ul><ul><li>Professionalism: avoidance of “capture”, of collusion with clients and/or suppliers, of conflicts of interest </li></ul><ul><li>Methods for maintaining and demonstrating quality control, addressing information asymmetries </li></ul><ul><li>Retention and motivation of experts </li></ul>Client side KIBS side
    50. 50. KIBS’ importance recognised <ul><li>Important innovators </li></ul><ul><li>Important sources and “intermediaries” of knowledge </li></ul><ul><li>Growing (still?) </li></ul><ul><li>Limited knowledge about how different KIBS interact with clients and each other (in projects), about conditions and criteria for successful collaboration – what sorts of impact and innovation? What management lessons? What policy issues? </li></ul>
    51. 51. End of Presentation
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×