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Knowledge Intensive Service firms, sectors….systems. Ian Miles Professor of Technological Innovation & Social Change Centre for Service Research & MIoIR Manchester Business School. Towards understanding KISS. Definitions.

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knowledge intensive service firms sectors systems

Knowledge Intensive Servicefirms, sectors….systems

Ian Miles

Professor of Technological Innovation & Social Change

Centre for Service Research & MIoIR

Manchester Business School

definitions
Definitions
  • 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)
  • Service Firm: firms whose main business is directly producing services
  • Service Sector: NACE sections G to O:
    • Hotels and Restaurants (HORECA)
    • Transport, Storage
    • Financial Intermediation (FI...
    • Real estate, Renting (…RE), Business Activities
    • Wholesale & Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal & Household Goods
    • Public Administration and Defence; Compulsory Social Security
    • Education
    • Health and Social Work
    • Other Community, Social and Personal Service Activities
  • 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.
firms and sectors
Firms and Sectors
  • Society (concept of eco-services, informal economy and self-services)
  • Formal Economy (in-house services, plus services delivered to others - sometimes sold - by non-service firms)
  • Services Sectors (main activity concept of eco-services)
  • Knowledge-Intensive Services
  • Business-Related Services
  • Business Services
  • Knowledge-Intensive Business Services
firms and sectors1
Firms and Sectors

Society

Formal Economy

Services Sectors

Knowledge-Intensive Services

Business-Related Services

Business Services

Knowledge-Intensive Business Services

some kiss
Some KISS?

Society

Formal Economy

Services Sectors

Knowledge-Intensive Services

Business-Related Services

Business Services

Knowledge-Intensive Business Services

May include as members of system: consumers, manufacturers, .KIS/KIBS, other services.

What level of granularity? What role of coproduction?

what do we mean by knowledge intensive
What do we mean by Knowledge-Intensive?

Variations across sectors, firms, occupations, (possibly activities and processes):

  • Workforce
    • educational credentials implying “embodied” knowledge of different depths
  • Work activities
    • reported experience implying on-the-job knowledge of different depths
  • Organisation
    • knowledge management systems, knowledge-directed business processes
    • Use of Information Technology
where is the knowledge
Where is the knowledge?
  • To what extent:
  • Are agents possessed of considerable knowledge?
  • Are agents performing roles that require little knowledge to follow evolving knowledge-based instructions?
  • Are agents performing routine and monotonous roles?

Seth Fisher cartoon

intensive extensive
Intensive, Extensive…
  • “Knowledge-based economy” discussions – growing role of (some forms of)* knowledge production and use:
  • Knowledge-based
    • A,B,C,D
  • Knowledge-driven
    • A, B (?)
  • Knowledge-intensive
    • B, D (?)
  • Are these the right parameters?
    • E.g. other classifications based on standardisation vs specialisation, etc.

* Mainly S&T knowledge, codified knowledge

High reliance on codified or embodied tech. knowledge

A B

C D

E

Workforce knowledge: Highly concentrated

Workforce knowledge: Relatively distributed

High reliance on codified or embodied soc. knowledge

Low reliance on codified or embodied knowledge

sectoral analysis
Sectoral Analysis
  • A quick look at basic data on technology use,
  • Then exploring workforce qualificational and other data
slide11

Sectoral data – Input-output tables: what do sectors purchase?

UK data 2004

Processing large volumes of Information

Making or Working with Things

Requiring physical presence of People

slide12

Sectoral Workforce skills (educational levels)

HIGH SKILL

Data on EU workforce, 2000

Knowledge-intensive services

Education

Low-skill services

Medium-skill services

Business Sers._ Health & Soc. Sers.

FIRE

Other Sers.

Manufacturing

Trade Transport

MEDIUM SKILL

LOW SKILL

Agriculture

HORECA

Pub. Admin.

slide13

“technology-based KIBS”

"professional KIBS"

Graduates in Workforce:Focus on Knowledge-Intensive (private) services -KIBS

UK, CIS3 data

slide16

Knowledge-Intensive Business Service Sectors

  • KIBS: within Business Service sectors: Most of NACE 72-74
  • This misses Education, Social services, several “Creative” industries, Finance, Telecomms…

NOT:

slide17

0 10 20 30 40 50 60 70

VALUE ADDED bn euros

Relative Scale of variousBS in the UK, 2000

Rapid growth, across industrial world

sectors occupations
Sectors  Occupations
  • ISCO Occupations matching KIBS activities:
    • 1: legislators, senior officials and managers;
    • 2: professionals (in 1 Physical, mathematical and engineering science; Life science and health; Teaching; and Others);
    • 3: technicians and associate professionals (as in group 2),
    • [4: clericals]
slide20

Three KISA Occupations

CEDEFOP data, ISCO categories, EU-25 2006

slide23

Other training

Fourteen clusters of jobs

From data in Employment in Europe 2008;

Normalised scores; averages for each cluster of occupations

Training in formal education

beyond basic qualifications
Beyond basic qualifications
  • Scope for more sophisticated understanding/,measurement of knowledge and skills
  • 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)
  • Again, Scope for looking at knowledge as expressed in activities…
slide26

Own ideas

New Things

Complex

Monotonous

Unforeseen problems

Use Internet

Use computers

Nonemployees

Features of Work across4 Occupational Groups Europe 2005 – deviations from overall average for employees

KIS work

slide27

Other training

First job title in each occupational cluster

Health associate professionals

Architects, engineers & related professionals

From data in Employment in Europe 2008;

Normalised scores; averages for each cluster of occupations

Artistic, entertainment & sports associate professionals

Directors and chief executives

Business services agents & trade brokers

Administrative associate professionals

Training in formal education

Crop & animal producers

Shoe cleaners.. !!

Animal producers & related workers

Cashiers, tellers & related clerks

Manufacturing labourers.

Building finishers and related trades workers

Fashion and other models !!

Agricultural and other mobile plant operators

Bold > 10%; small font <.1%

key clusters 2 3 and 4 16 8
Key Clusters 2, 3 and 4 (16.8%)

3

2

5.7% of E

4.6% of E

4

5.5% of E

key clusters 5 7 and 8
Key Clusters 5,7 – and 8

5

7

17.6% of E

5.3% of E

8

16.5% of E

so k i firms sectors occupations can be assessed in various ways
So K-I firms, sectors, occupations can be assessed in various ways
  • But how can this be used to identify and classify, to understand and explore different KISS?
  • At micro-level: KISS involved with a KIBS or KIBS-like service. Interesting question: what sort of knowledge requirements for the client?
  • At macro-level – scope for definitions related to presence of particular shares of KISA workers relative to: overall employment? final cost of service? technology investment?
  • Research agendas at different levels for different service types