Slide 1: MIIR
Centre for Service Research
Growth and prosperity come from services
Ian Miles
Professor of Technological Innovation & Social Change
Centre for Service Research & MIoIR Manchester Business School
AMSI launch - Amsterdam 03/09/09
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Centre for Service Research
Thanks, Greetings to AMSI
from Manchester
AMSI launch - Amsterdam 03/09/09
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Centre for Service Research
Why is the moment right?
We’re having to rethink our economic fundamentals in the light of the economic and environmental crises. We’ve been complacent about the transition to a service economy – but critical about our innovative capacity. Its necessary to go back to basics in thinking about services - and about innovation.
AMSI launch - Amsterdam 03/09/09
Slide 4: MIIR
Centre for Service Research
Why is the moment right?
We’re having to rethink our economic fundamentals in the light of the economic and environmental crises. We’ve been complacent about the transition to a service economy – but critical about our innovative capacity. Its necessary to go back to basics in thinking about services - and about innovation.
AMSI launch - Amsterdam 03/09/09
Slide 5: MIIR
Centre for Service Research
Service and Innovation
Back to basics: Service as productDOING USEFULproduction (the service), as THINGS and delivery (the service process), as philosophy (as opposed to MAKING (service orientation), as encounter (service USEFUL THINGS – goods) journey). Innovation as output (the innovation), as DOING BETTER process (innovation management), as philosophy (products or processes…) (innovation orientation). Service innovation: new service development; service elements of innovation; innovation within DOING THINGS BETTER, service organisations; innovation through DOING BETTER THINGS services.
AMSI launch - Amsterdam 03/09/09
Slide 6: MIIR
Centre for Service Research
Service and Innovation
All the terms are highly ambiguous: Service as product (the service), as production and delivery (the service process), as philosophy (service orientation), as encounter (service journey). DOING USEFUL THINGS Innovation as output (the innovation), as process (innovation management), as philosophy (innovation orientation). DOING BETTER. Service innovation: new service development; service elements of innovation; innovation within service organisations; innovation through services. DOING THINGS BETTER, DOING BETTER THINGS
AMSI launch - Amsterdam 03/09/09
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Centre for Service Research
Varieties Of Service
What they are doing: transforming people, artefacts, symbols Who are they doing it with: services among highest- and lowest-skilled sectors Who they do it for: consumer services, public services, business services How they are organised – in-house, outsourced, offshored; large and small organisations, network organisations… Differences in innovation (process)
AMSI launch - Amsterdam 03/09/09
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Centre for Service Research
We know that:
Service sectors are the bulk of our economies. The most rapid growth has come from knowledge-intensive business services. These support the whole economy, and thus growth, competitiveness, quality of life – and will be vital for sustainability, too. They do this through their roles in innovation, supplying knowledge to support efficiency and flexibility – and to help adaptation and creativity.
AMSI launch - Amsterdam 03/09/09
Slide 9: MIIR
Centre for Service Research
(Side-Note on Service Trade)
About 20% of all trade is services – fairly static share– well below economic scale of services
Total service exports 2004: $2234bn – Half of which is Travel & Transport; Focus of trade: 1/3 trade intra-Europe, ½ intraEurope and N America
Average annual change in OECD service exports 1999– 2004
Source: William Cave (2006 OECD WP), from OECD TIS 2006
Distance is more important for services trade than for goods trade
AMSI launch - Amsterdam 03/09/09
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Centre for Service Research
We know that:
Service sectors innovate in different ways This varies across sectors: high-tech KIBS are much like other hightech firms (R&D and technology acquisition). Otherwise innovation management (esp. R&D management structures) is rare outside of the biggest service firms. Professional KIBS (and creative services) are also very innovative, but based more on professional networks and in-practice ad-hoc innovation. Public services have distinctive patterns. Some other services are fairly low in terms of innovation, other than that related to new equipment and software – though innovation* is understated in standard statistics – and poor links to wider innovation systems. Organisational change is relatively more important (though technological innovators also tend to be organisational innovators). Skill needs are challenging.
* and R&D
AMSI launch - Amsterdam 03/09/09
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Centre for Service Research
We also know that:
Production services Product services Servicisation Customer service orientation
Service elements are important for ALL sectors:
Innovation in these elements is poorly measured and understood - with a few exceptions (Information Systems, ecommerce, logistics…) Innovation management at firm level often fails to deal with these elements. Skill needs are, again, challenging. General need to combine managerial, domain, technology and service capabilities.
AMSI launch - Amsterdam 03/09/09
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Centre for Service Research
How KIBS function
Technology and training providers “Science Base” KIBS communities
Generic Knowledge
Local knowledge derived from client Client Problems Client Problems Client Problems AMSI launch - Amsterdam 03/09/09
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Centre for Service Research
Advancing the study of service innovation
Technology and training providers Services and Innovation Research Communities KIBS communities
Generic Knowledge
Specific innovation experiences, including action research Service Providers Service Providers Service/Innovation Policymakers AMSI launch - Amsterdam 03/09/09
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Centre for Service Research
The Time is Right…
…and the needs are apparent. Knowledge generation and action is required at many levels.
Networking of research communities Cooperation within and across service sectors and service practitioners more generally Initiatives from policy and other stakeholders at city and city-region levels.
Link to Grand Challenges and emerging social practice.
AMSI launch - Amsterdam 03/09/09
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Centre for Service Research
End of Presentation
AMSI launch - Amsterdam 03/09/09
