Service Systems


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Discussion of Knowledge-Intensive Service Systems definition and identification

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Service Systems

  1. 1. Knowledge Intensive Service firms, sectors, systems Ian Miles Professor of Technological Innovation & Social Change Centre for Service Research & MIoIR Manchester Business School
  2. 2. Towards understanding KISS
  3. 3. Definitions <ul><li>Service: “doing things” rather than “making things” – creating (largely) intangible products. Things that are of value (an economic or para-economic relationship [informal economies] is implied) </li></ul><ul><li>Service Firm : firms whose main business is directly producing services </li></ul><ul><li>Service Sector : NACE sections G to O: </li></ul><ul><ul><li>Hotels and Restaurants (HORECA) </li></ul></ul><ul><ul><li>Transport, Storage </li></ul></ul><ul><ul><li>Financial Intermediation (FI... </li></ul></ul><ul><ul><li>Real estate, Renting (…RE), Business Activities </li></ul></ul><ul><ul><li>Wholesale & Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal & Household Goods </li></ul></ul><ul><ul><li>Public Administration and Defence; Compulsory Social Security </li></ul></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>Health and Social Work </li></ul></ul><ul><ul><li>Other Community, Social and Personal Service Activities </li></ul></ul><ul><li>A service system is “a configuration of people, technologies, and other resources that interact with other service systems to create mutual value.” (SSMENet). Often firms and intra-firm activities involved. </li></ul>
  4. 4. Firms and Sectors <ul><li>Society (concept of eco-services, informal economy and self-services) </li></ul><ul><li>Formal Economy (in-house services, plus services delivered to others - sometimes sold - by non-service firms) </li></ul><ul><li>Services Sectors (main activity concept of eco-services) </li></ul><ul><li>Knowledge-Intensive Services </li></ul><ul><li>Business-Related Services </li></ul><ul><li>Business Services </li></ul><ul><li>Knowledge-Intensive Business Services </li></ul>
  5. 5. Firms and Sectors <ul><li>Society </li></ul><ul><li>Formal Economy </li></ul><ul><li>Services Sectors </li></ul><ul><li>Knowledge-Intensive Services </li></ul><ul><li>Business-Related Services </li></ul><ul><li>Business Services </li></ul><ul><li>Knowledge-Intensive Business Services </li></ul>
  6. 6. Some KISS? <ul><li>Society </li></ul><ul><li>Formal Economy </li></ul><ul><li>Services Sectors </li></ul><ul><li>Knowledge-Intensive Services </li></ul><ul><li>Business-Related Services </li></ul><ul><li>Business Services </li></ul><ul><li>Knowledge-Intensive Business Services </li></ul>
  7. 7. What do we mean by Knowledge-Intensive? <ul><li>Variations across sectors, firms, occupations, (possibly activities and processes): </li></ul><ul><li>Workforce </li></ul><ul><ul><li>educational credentials implying “embodied” knowledge of different depths </li></ul></ul><ul><li>Work activities </li></ul><ul><ul><li>reported experience implying on-the-job knowledge of different depths </li></ul></ul><ul><li>Organisation </li></ul><ul><ul><li>knowledge management systems, knowledge-directed business processes </li></ul></ul><ul><ul><li>Use of Information Technology </li></ul></ul>
  8. 8. Where is the knowledge? Seth Fisher cartoon <ul><li>To what extent: </li></ul><ul><li>Are agents possessed of considerable knowledge? </li></ul><ul><li>Are agents performing roles that require little knowledge to follow evolving knowledge-based instructions? </li></ul><ul><li>Are agents performing routine and monotonous roles? </li></ul>
  9. 9. Intensive, Extensive… <ul><li>“ Knowledge-based economy” discussions – growing role of (some forms of)* knowledge production and use: </li></ul><ul><li>Knowledge-based </li></ul><ul><ul><li>A,B,C,D </li></ul></ul><ul><li>Knowledge-driven </li></ul><ul><ul><li>A, B (?) </li></ul></ul><ul><li>Knowledge-intensive </li></ul><ul><ul><li>B, D (?) </li></ul></ul><ul><li>Are these the right parameters? </li></ul><ul><ul><li>E.g. other classifications based on standardisation vs specialisation, etc. </li></ul></ul><ul><li>* Mainly S&T knowledge, codified knowledge </li></ul>Workforce knowledge: Highly concentrated Workforce knowledge: Relatively distributed High reliance on codified or embodied tech. knowledge High reliance on codified or embodied soc. knowledge Low reliance on codified or embodied knowledge A B C D E
  10. 10. Sectoral Analysis <ul><li>A quick look at basic data on technology use, </li></ul><ul><li>Then exploring workforce qualificational and other data </li></ul>
  11. 11. UK data 2004 Sectoral data – Input-output tables: what do sectors purchase? Processing large volumes of Information Making or Working with Things Requiring physical presence of People
  12. 12. Sectoral Workforce skills (educational levels) Agriculture Manufacturing HORECA Trade Transport Pub. Admin. Other Sers. FIRE Education Business Sers._ Health & Soc. Sers. HIGH SKILL LOW SKILL MEDIUM SKILL Data on EU workforce, 2000 Knowledge-intensive services Low-skill services Medium-skill services
  13. 13. Graduates in Workforce: Focus on Knowledge-Intensive (private) services -KIBS UK, CIS3 data “ technology-based KIBS” &quot;professional KIBS&quot;
  14. 14. Work Experience across Sectors European Working Conditions Survey
  15. 15. Knowledge Development and Use
  16. 16. Knowledge-Intensive Service Sectors, then <ul><li>KIBS: Business Service sectors: Most of NACE 72-74 </li></ul><ul><li>This misses Education, Social services, several “Creative” industries, Finance, Telecomms… </li></ul>NOT: <ul><li>• Architectural activities • Engineering activities </li></ul><ul><li>Technical testing and analysis </li></ul>Technical 74.2, 74.3 <ul><li>Secretarial and translation activities </li></ul><ul><li>Packing activities • Fairs & exhibitions </li></ul>Other 74.81-84 <ul><li>Security activities • Industrial cleaning </li></ul>Operational 74.6, 74.7 <ul><li>Labour recruitment and provision of personnel </li></ul>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 73.1, 73.2 <ul><li>• Hardware consultancy • Software consultancy </li></ul><ul><li>Data processing • Database activities </li></ul>Computer 72.1 - 6 <ul><li>Renting of transport, construction equipment, office machinery </li></ul>Leasing & renting 71.1, 71.21-23, Most important activities Business Services NACE Classn
  17. 17. Sectors  Occupations <ul><li>ISCO Occupations matching KIBS activities: </li></ul><ul><ul><li>1: legislators, senior officials and managers; </li></ul></ul><ul><ul><li>2: professionals (in 1 Physical, mathematical and engineering science; Life science and health; Teaching; and Others); </li></ul></ul><ul><ul><li>3: technicians and associate professionals (as in group 2), </li></ul></ul><ul><ul><li>[4: clericals] </li></ul></ul>
  18. 18. ISCO Occupations and educational attainments, - shares of EU25 workforce, 2006
  19. 19. Three KISA Occupations CEDEFOP data, ISCO categories, EU-25 2006
  20. 20. Location of highly qualified workers
  21. 21. Source: Marja Toivonen More detailed KISA occupations – in KIBS and elsewhere
  22. 22. Training in formal education Other training From data in Employment in Europe 2008 ; Normalised scores; averages for each cluster of occupations Fourteen clusters of jobs
  23. 23. Beyond basic qualifications <ul><li>Scope for more sophisticated understanding/,measurement of knowledge and skills </li></ul><ul><li>E.g. O*Net classification and description of occupations, and characterisation in terms of levels of capability in various competence areas. (Davide Consoli currently studying) </li></ul><ul><li>Again, Scope for looking at knowledge as expressed in activities… </li></ul>
  24. 24. Features of Work across Different Occupational Groups, Europe 2005 KIS work
  25. 25. Features of Work across 4 Occupational Groups Europe 2005 – deviations from overall average for employees KIS work Own ideas New Things Complex Monotonous Unforeseen problems Use Internet Use computers Nonemployees
  26. 26. Training in formal education Other training From data in Employment in Europe 2008 ; Normalised scores; averages for each cluster of occupations Shoe cleaners.. !! Manufacturing labourers. Building finishers and related trades workers Agricultural and other mobile plant operators Directors and chief executives Health associate professionals Fashion and other models !! Animal producers & related workers Cashiers, tellers & related clerks Business services agents & trade brokers Crop & animal producers Administrative associate professionals Artistic, entertainment & sports associate professionals Architects, engineers & related professionals Bold > 10%; small font <.1% First job title in each occupational cluster
  27. 27. Key Clusters 2, 3 and 4 (16.8%) 2 3 4 5.7% of E 4.6% of E 5.5% of E Special education teaching professionals Secondary education teaching professionals Religious professionals Primary and preprimary education teaching professionals Preprimary education teaching associate professionals Physicists, chemists and related professionals Nursing and midwifery professionals Nursing and midwifery associate professionals Life science professionals Legal professionals Health professionals (except nursing) Health associate professionals (except nursing) Writers and creative or performing artists Special education teaching associate professionals Social science and related professionals Computing professionals College, university and higher education teaching professionals Business professionals Architects, engineers and related professionals Social work associate professionals Personal care and related workers Other teaching professionals Client information clerks Artistic, entertainment and sports associate professionals
  28. 28. Key Clusters 5, 7 – and 8 5 7 8 5.3% of E 17.6% of E 16.5% of E Administrative associate professionals Archivists, librarians and related information professionals Library, mail and related clerks Life science technicians and related associate professional Material recording and transport clerks Numerical clerks Optical and electronic equipment operators Other office clerks Physical and engineering science technicians Precision workers in metal and related materials Protective services workers Secretaries and keyboard operating clerks Ship and aircraft controllers and technicians Business services agents and trade brokers Computer associate professionals Finance and sales associate professionals Other teaching associate professionals Religious associate professionals Travel attendants and related workers Cashiers, tellers and related clerks Shop, stall and market salespersons and demonstrators Other personal services workers Housekeeping and restaurant services workers Cashiers, tellers and related clerks
  29. 29. End of Presentation