Amsterdam Centre for Service Innovation launch

AMSI launch - Amsterdam 03/09/09

MIIRCentre

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


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Thanks, Greetings to AMSIfrom Manchester


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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.


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Back to basics:

Service as product (the service), as production and delivery (the service process), as philosophy (service orientation), as encounter (service journey).

Innovation as output (the innovation), as process (innovation management), as philosophy (innovation orientation).

Service innovation: new service development; service elements of innovation; innovation within service organisations; innovation through services.

Service and Innovation

DOING USEFUL THINGS (as opposed to MAKING USEFUL THINGS – goods)

DOING BETTER (products or processes…)

DOING THINGS BETTER, DOING BETTER THINGS


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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 THINGSInnovation 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


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Varieties Of Service

What they are doing: transforming people, artefacts, symbolsWho are they doing it with: services among highest- and lowest-skilled sectorsWho they do it for: consumer services, public services, business servicesHow they are organised – in-house, outsourced, offshored; large and small organisations, network organisations…Differences in innovation (process)


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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.


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(Side-Note on Service Trade)

Average annual change

in OECD service exports

1999–2004

Source: William Cave (2006 OECD WP), from OECD

TIS 2006

Total service exports 2004: $2234bn –

Half of which is Travel & Transport;

Focus of trade: 1/3 trade intra-Europe, ½ intra-

Europe and N America

Distance is more important for services trade than for

goods trade

About 20% of all trade is services – fairly static share– well

below economic scale of services


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We know that: Service sectors innovate in different ways -

This varies across sectors: high-tech KIBS are much like other high-tech 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


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We also know that: Service elements are important for ALL sectors:

Production servicesProduct servicesServicisationCustomer service orientation

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.


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Client ProblemsClient Problems

How KIBS function

Generic Knowledge

KIBS communities“Science Base”

Technology and training providers

Client Problems

Local knowledge derived from client


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Service/Innovation Policymakers

Service Providers

Advancing the study of service innovation

Generic Knowledge

KIBS communitiesServices and

Innovation ResearchCommunities

Technology and training providers

Service Providers

Specific innovation experiences, including action research


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The Time is Right…

…and the needs are apparent.Knowledge generation and action is required at many levels.

Networking of research communitiesCooperation within and across service sectors and service practitioners more generallyInitiatives from policy and other stakeholders at city and city-region levels.

Link to Grand Challenges and emerging social practice.


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End of Presentation

Amsterdam Centre for Service Innovation launch

Business

Transcript of Amsterdam Centre for Service Innovation launch