EWOSS - Eindhoven 09/11/09 MIIR Centre for Service Research Knowledge Intensive Service firms, sectors….systems Ian Miles Professor of Technological Innovation.

EWOSS - Eindhoven 09/11/09

MIIRCentre

for Service Research

Knowledge Intensive Service firms, sectors….systems

Ian Miles Professor of Technological Innovation & Social Change

Centre for Service Research & MIoIR

Manchester Business School


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Towards understanding KISS


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DefinitionsService: “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:

G. Hotels and Restaurants (HORECA) H. Transport, Storage I. Financial Intermediation (FI... J. Real estate, Renting (…RE), Business Activities K. Wholesale & Retail Trade; Repair of Motor Vehicles, Motorcycles and

Personal & Household Goods L. Public Administration and Defence; Compulsory Social SecurityM. EducationN. Health and Social WorkO. 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.


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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


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Firms and Sectors

Society

Formal Economy

Services Sectors



Business Services



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Some KISS?

Society

Formal Economy

Services Sectors



Business Services


May include as members of

system: consumers,

manufacturers, .KIS/KIBS,

other services.

What level of granularity? What role of

coproduction?


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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 processesUse of Information Technology


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Where is the knowledge?

Seth Fisher cartoon

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?


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Intensive, Extensive…“Knowledge-based economy” discussions – growing role of (some forms of)* knowledge production and use:

Knowledge-basedA,B,C,D

Knowledge-drivenA, B (?)

Knowledge-intensiveB, D (?)

Are these the right parameters?E.g. other classifications based on standardisation vs specialisation, etc.

* Mainly S&T knowledge, codified knowledge

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


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Sectoral Analysis

A quick look at basic data on technology use,

Then exploring workforce qualificational and other data


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for Service Research UK

data 2004

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

Processing large volumes of Information

Making or Working

with ThingsRequiring physical presence of People


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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


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0%

10%

20%

30%

40%

50%

60%

70%

Low

Tech M

anufa

ctu

ring

Passenger

Tra

nsport

Fre

ight T

ransport

Mediu

m L

ow

Tech M

anufa

ctu

ring

Constr

uctio

n

Oth

er

Tra

nsport

Mediu

m H

igh T

ech M

anufa

ctu

ring

Extr

actio

n, U

tiliti

es, R

ecyclin

g

Whole

sale

Rentin

g a

nd L

easin

g

Hig

h T

ech M

anufa

ctu

ring

Bankin

g, In

sura

nce, P

ropert

y T

radin

g

Tele

com

s &

oth

er

IT s

erv

ices

Legal /

Accountin

g

Publis

h, T

rav/E

st A

g, M

kt R

es

Managerial /

Org

anis

atio

nal S

erv

s

Arc

hite

ctu

re &

Engin

eering

R&

D a

nd T

echnic

al T

estin

g

Com

pute

r S

erv

ices

Mean % Other Graduates

Mean % S&E Graduates

Graduates in Workforce:

Focus on Knowledge-Intensive (private) services -

KIBS

UK, CIS3 data

“technology-based KIBS”

"professional KIBS"


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Work Experience

across Sectors

European Working

Conditions Survey


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Knowledge Development and Use


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Knowledge-Intensive Business Service SectorsKIBS: within Business Service sectors: Most of NACE 72-74

This misses Education, Social services, several “Creative” industries, Finance, Telecomms…

NACE Classn Business Services Most important activities

71.1, 71.21-23, Leasing & renting Renting of transport, construction equipment, office machinery

72.1 - 6 Computer • Hardware consultancy • Software consultancy Data processing • Database activities

73.1, 73.2 R&D • Research and experimental development on natural sciences and engineering • …on social sciences and humanities

74.2, 74.3 Technical • Architectural activities • Engineering activities Technical testing and analysis

74.11- .12, 74.14

Professional • Legal activities • Accounting & tax consultancy Management consulting

74.13, 74.4 Marketing • Market research • Advertising

74.5 Labour recruitment Labour recruitment and provision of personnel

74.6, 74.7 Operational Security activities • Industrial cleaning

74.81-84 Other Secretarial and translation activities Packing activities • Fairs & exhibitions

NOT:


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Relative Scale of various BS in the UK, 2000

0 10 20 30 40 50 60 70 VALUE ADDED bn euros

Rapid growth, across

industrial world


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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]


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ISCO Occupations and educational attainments, - shares of EU25 workforce, 2006

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Armed forces

Legislators, senior officials and managers

Professionals

Technicians and associate professionals

Clerks

Service workers and shop and market sales workers

Skilled agricultural and fishery workers

Craft and related trades workers

Plant and machine operators and assemblers

Elementary occupations low

medium

high


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Three KISA Occupations

0% 10% 20% 30% 40% 50% 60% 70%

Primary sector and utilities

Manufacturing

Construction

Distribution and transport

Business and other services

Non-marketed services

ISCO 1 (Legislators, etc)

ISCO 2 (Professionals)

ISCO 3 (Technicians etc)

CEDEFOP data, ISCO categories, EU-25 2006


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Location of highly qualified workers

0% 2% 4% 6% 8% 10% 12%

Primary sector and utilities

Manufacturing

Construction

Distribution and transport

Business and other services

Non-marketed services

Armed forces

Legislators, senior officials and managers

Professionals

Technicians and associate professionals

Clerks

Service workers and shop and marketsales workers Skilled agricultural and fishery workers

Craft and related trades workers

Plant and machine operators andassemblers Elementary occupations


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DISTRIBUTION OF THE PERSONNEL OF SOME EXPERT PROFESSIONS BETWEEN KIBS INDUSTRIES AND OTHER

INDUSTRIES IN FINLAND 1995

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

Architects & engineers

Technicians

Physicists, chemists, biologists etc.

Computing professionals

Industrial designers

Legal professionals

Accountants

Book-keepers

Marketing professionals

Advertising copywriters

Economic & social science professionals

Administrative professionals

Personnel & recruitment professionals

Training directors, training planners, trainers

in KIBS industries

in other industries

Source: Marja Toivonen

More detailed KISA

occupations – in KIBS and elsewhere


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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


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Beyond basic qualifications

Scope for more sophisticated understanding/,measurement of knowledge and skillsE.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…


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-60 -40 -20 0 20 40 60 80 100

1

2

3

4

5

6

7

8

9

10

Able to apply own ideas in work

Learning new things

Complex tasks

Monotonous tasks

Solving unforeseen problems

Using internet / email for work

Working with computers

Deal with nonemployees (egconsumers)

Average among employees of all types

Elementary occupations

Plant & machine

operators and

assemblers

Craft & related trades

workers and

assemblers fishery

workers & assemblers

Service workers & shop & market

sales workers

Technicians and associate

professionals

Professionals

Clerks

Legislators, senior officials

& managers

Skilled agricultural &

Features of

Work across Different

Occupational Groups, Europe

2005

KIS work


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Features of Work across 4 Occupational Groups Europe

2005 – deviations from overall average for employees

-60 -40 -20 0 20 40 60 80 100

1

2

3

4

5

6

7

8

9

10

Able to apply own ideas in work

Learning new things

Complex tasks

Monotonous tasks

Solving unforeseen problems

Using internet / email for work

Working with computers

Deal with nonemployees (egconsumers)

Service workers & shop & market

sales workers

Technicians and associate

professionals

Professionals

Clerks

Legislators, senior officials

& managers

Own ideas

New Things

Complex

Monotonous

Unforeseen problems

Use Internet

Use computers

Nonemployees

KIS work


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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


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Key Clusters 2, 3 and 4 (16.8%)

Health associate professionals (except nursing)

Health professionals (except nursing)

Legal professionals

Life science professionals

Nursing and midwifery associate professionals

Nursing and midwifery professionals

Physicists, chemists and related professionals

Preprimary education teaching associate professionals

Primary and preprimary education teaching professionals

Religious professionals

Secondary education teaching professionals

Special education teaching professionals

Architects, engineers and related professionals

Business professionals

College, university and higher education teaching professionals

Computing professionals

Social science and related professionals

Special education teaching associate professionals

Writers and creative or performing artists

Artistic, entertainment and sports associate professionals

Client information clerks

Other teaching professionals

Personal care and related workers

Social work associate professionals

23

4

5.7% of E 4.6% of E

5.5% of E


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Key Clusters 5, 7 – and 8

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

57

Cashiers, tellers and related clerks

Housekeeping and restaurant services workers

Other personal services workers

Shop, stall and market salespersons and demonstrators

Cashiers, tellers and related clerks

8

5.3% of E17.6% of E

16.5% of E


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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


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End of Presentation

EWOSS - Eindhoven 09/11/09 MIIR Centre for Service Research Knowledge Intensive Service firms, sectors….systems Ian Miles Professor of Technological Innovation.

Documents

service research intensive

services service sector

service research firms

st knowledge

little knowledge

knowledge production

considerable knowledge

miir centre