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					  MIIR
     Centre
   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

EWOSS - Eindhoven 09/11/09
  MIIR
     Centre
                 Towards understanding KISS
   for Service
    Research




EWOSS - Eindhoven 09/11/09
  MIIR
     Centre
   for Service
                                     Definitions
    Research


                 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:
                  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 Security
                  M. Education
                  N. Health and Social Work
                  O. 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.
EWOSS - Eindhoven 09/11/09
  MIIR
     Centre
   for Service
                       Firms and Sectors
    Research




             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

EWOSS - Eindhoven 09/11/09
  MIIR
     Centre
   for Service
                           Firms and Sectors
    Research




                           Society

                  Formal Economy

                  Services Sectors

         Knowledge-Intensive
                    Services

                 Business-Related
                         Services

                 Business Services

         Knowledge-Intensive
           Business Services

EWOSS - Eindhoven 09/11/09
  MIIR
     Centre
   for Service
                                     Some KISS?
    Research




                           Society
                                           May include as
                  Formal Economy              members of
                                                  system:
                  Services Sectors            consumers,
                                           manufacturers,
         Knowledge-Intensive                   .KIS/KIBS,
                    Services               other services.
                                            What level of
                 Business-Related            granularity?
                         Services            What role of
                                           coproduction?
                 Business Services

         Knowledge-Intensive
           Business Services

EWOSS - Eindhoven 09/11/09
                          What do we mean by
  MIIR
     Centre
   for Service
    Research
                          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
EWOSS - Eindhoven 09/11/09
  MIIR
     Centre
   for Service
                 Where is the knowledge?
    Research




                               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

EWOSS - Eindhoven 09/11/09
  MIIR
     Centre
   for Service
                            Intensive, Extensive…
    Research

             “Knowledge-based economy” discussions – growing role of (some forms
             of)* knowledge production and use:
                                                          High reliance on
             Knowledge-based                            codified or embodied
                  A,B,C,D                                 tech. knowledge

                                                       Workforce     A       B        Workforce
             Knowledge-driven
                                                      knowledge:                     knowledge:
                 A, B (?)
                                                           Highly                      Relatively
                                                     concentrated    C       D        distributed
             Knowledge-intensive
                 B, D (?)                                         High reliance on
                                                                codified or embodied
             Are these the right parameters?                      soc. knowledge
                 E.g. other classifications based on                                     E
                   standardisation vs specialisation, etc.                       Low reliance on
                                                                                      codified or
     * Mainly S&T knowledge, codified knowledge                                       embodied
                                                                                     knowledge
EWOSS - Eindhoven 09/11/09
  MIIR
     Centre
   for Service
                    Sectoral Analysis
    Research




             A quick look at basic data on technology
             use,
             Then exploring workforce qualificational
             and other data




EWOSS - Eindhoven 09/11/09
                                                            0
                                                                10
                                                                     20
                                                                                           30
                                                                                                       40
                                                                                                                                       50
                                                                                                                                                                           60
                             Post & telecommunications


                                    Computer services                                                                                                               Centre

                                                                                                                                                                   Research
                                                                                                                                                                  for Service
                                                                                                                                                                                           MIIR
                             Auxiliary financial services


                                Other service activities
                                                                                                                                    UK
                                                                                                                                   data
                               Financial intermediation
                                                                                                                                   2004
                              Other business services


                              Research & development
                                                                                        Processing
                                 Recreational services


                                                                                      of Information
                                                                                      large volumes
                                   Hotels & restaurants




EWOSS - Eindhoven 09/11/09
                             Membership organisations


                                   Health & social work


                                              Education


                                  Real estate activities

                             Insurance & pension funds


                             Ancillary transport services


                             Sewage & sanitary services
                                                                      Requiring physical
                                                                      presence of People




                                      Retail distribution
                                                                                                            drugs, furniture, etc.




                                  Public administration &
                                         defence

                             Renting of machinery etc
                                                                                                                                                                                                      sectors purchase?




                                   Motor vehicle distn. &
                                       repairs, fuel
                                                                                                                                                        IT investment as share of total




                                 Wholesale distribution


                                           SECONDARY
                                                                                                            Energy consumption as share of total




                                               PRIMARY


                                        Water transport
                                                                                                            Share of Consumption expenditure on food,




                                                                            Working
                                                                           Making or




                                          Land transport
                                                                           with Things
                                                                                                                                                                                          Sectoral data – Input-output tables: what do




                                           Air transport
                 Sectoral Workforce skills (educational levels)
  MIIR
     Centre
   for Service
    Research


                                   HIGH SKILL
                                                             Data on EU workforce, 2000


                                                  Knowledge-intensive services



       Low-skill services
                                   Education

                                                           Medium-skill services
                               Business Sers._
                            Health & Soc. Sers.
                                   Other Sers.    FIRE
                             Manufacturing    Trade
   LOW               Agriculture           Transport               MEDIUM
                                      HORECA     Pub. Admin.         SKILL
   SKILL
EWOSS - Eindhoven 09/11/09
                                                         10%
                                                               20%
                                                                            30%
                                                                                              40%
                                                                                                            50%
                                                                                                                                60%
                                                                                                                                                                                  70%




                                                    0%
                     Low Tech Manufacturing
                                                                                                                            Centre

                                                                                                                           Research
                                                                                                                          for Service

                             Passenger Transport
                                                                                                                                           Mean




         UK,
                                Freight Transport




         data
         CIS3
 Medium Low Tech Manufacturing


                                    Construction

                                                                                 KIBS
                                                                                                                                        MIIR % S&E Graduates




                                 Other Transport
                                                                                                                                                         Mean % Other Graduates




EWOSS - Eindhoven 09/11/09
   Medium High Tech Manufacturing
                                                                                                       Workforce:
                                                                                                      Graduates in




            Extraction, Utilities, Recycling
                                                                         Focus on Knowledge-




                                       Wholesale
                                                                     Intensive (private) services -




                             Renting and Leasing


                     High Tech Manufacturing


anking, Insurance, Property Trading


            Telecoms & other IT services
                                                                                                              KIBS"




                               Legal / Accounting
                                                                                                          "professional




            Publish, Trav/Est Ag, Mkt Res


  Managerial / Organisational Servs


                Architecture & Engineering
                                                                                                                                                 “technology-
                                                                                                                                                 based KIBS”




                 R&D and Technical Testing


                              Computer Services
  MIIR
     Centre
   for Service
    Research




            Work
    Experience
     across
     Sectors
          European
           Working
          Conditions
           Survey



EWOSS - Eindhoven 09/11/09
  MIIR
     Centre
   for Service
    Research




   Knowledge
   Development
   and Use




EWOSS - Eindhoven 09/11/09
                 Knowledge-Intensive Business Service Sectors
  MIIR
     Centre
                                 KIBS: within Business Service sectors: Most of NACE 72-74
   for Service
    Research
                        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,                 Professional        • Legal activities • Accounting & tax consultancy
   74.14                                            Management consulting
   74.13, 74.4                    Marketing        • Market research         • Advertising
                     74.5     Labour recruitment    Labour recruitment and provision of personnel
  NOT: 74.6, 74.7                    Operational    Security activities   • Industrial cleaning
                 74.81-84                 Other     Secretarial and translation activities
                                                   Packing activities • Fairs & exhibitions
EWOSS - Eindhoven 09/11/09
  MIIR                                  Relative Scale of various
     Centre
   for Service
    Research
                                          BS in the UK, 2000
                            900

                            800                                                                          Legal, accountancy,
                                                                        Labour recruitment
                                                                                                            management
                            700
    Employees (thousands)




                            600
                                                                                             computer services

                            500

                            400
                                                                Misc.                                                 Rapid
                                     Industrial Cleaning                Architecture &                               growth,
                            300                                          engineering
                                   Security &                                    Telecommunications                   across
                            200   investigation
                                                                                                                    industrial
                            100                   Advertising
                                       R&D                                                                             world
                             0
                                0
                              0.00           10        20        30         40         50     60        70
                                         10,000.00 20,000.00 30,000.00 40,000.00 50,000.00 60,000.00 70,000.00
                                                             VALUE ADDED
                                                  Value-added (million euros) bn euros

EWOSS - Eindhoven 09/11/09
  MIIR
     Centre
   for Service
                        Sectors  Occupations
    Research




             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]

EWOSS - Eindhoven 09/11/09
         ISCO Occupations and educational
  MIIR
   attainments, - shares of EU25 workforce, 2006
     Centre
   for Service
    Research




                                                                                                             low
                                     Elementary occupations
                                                                                                             medium
                                                                                                             high
                 Plant and machine operators and assemblers


                             Craft and related trades workers

                       Skilled agricultural and fishery workers

     Service workers and shop and market sales workers


                                                        Clerks

                     Technicians and associate professionals

                                                 Professionals


                    Legislators, senior officials and managers

                                                 Armed forces

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



EWOSS - Eindhoven 09/11/09
  MIIR                           Three KISA
     Centre
   for Service
    Research
                                 Occupations
     CEDEFOP data, ISCO categories, EU-25 2006


                 Non-marketed services

     Business and other services

           Distribution and transport

                          Construction

                                                                ISCO 1 (Legislators, etc)
                         Manufacturing
                                                                ISCO 2 (Professionals)
        Primary sector and utilities                            ISCO 3 (Technicians etc)

                                         0%   10%   20%   30%   40%    50%     60%       70%
EWOSS - Eindhoven 09/11/09
  MIIRLocation
     Centre
                                                 of highly qualified workers
   for Service
    Research


                     Non-marketed services




                 Business and other services



                                                                Armed forces

                   Distribution and transport                   Legislators, senior officials and managers

                                                                Professionals

                                                                Technicians and associate professionals
                                Construction
                                                                Clerks

                                                                Service workers and shop and market
                                                                sales workers
                              Manufacturing                     Skilled agricultural and fishery workers

                                                                Craft and related trades workers

                                                                Plant and machine operators and
                  Primary sector and utilities                  assemblers
                                                                Elementary occupations

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



EWOSS - Eindhoven 09/11/09
                              DISTRIBUTION OF THE PERSONNEL OF SOME EXPERT
                             PROFESSIONS BETWEEN KIBS INDUSTRIES AND OTHER
                                         INDUSTRIES IN FINLAND 1995
  MIIR
     Centre
   for Service
                                             Architects & engineers
    Research


                                                         Technicians


                              Physicists, chemists, biologists etc.


    More detailed                          Computing professionals


                                                 Industrial designers

         KISA                                    Legal professionals



    occupations –                                       Accountants


                                                       Book-keepers
                                                                                                in KIBS industries
                                                                                                in other industries




     in KIBS and                            Marketing professionals




      elsewhere
                                             Advertising copywriters


                         Economic & social science professionals


                                        Administrative professionals


                             Personnel & recruitment professionals


                       Training directors, training planners, trainers


                                                                         0   10,000 20,000 30,000 40,000 50,000 60,000 70,000
EWOSS - Eindhoven 09/11/09                                                         Source: Marja Toivonen
                                     Other training
                                       2
  MIIR
     Centre                                            Fourteen clusters of jobs
   for Service
    Research                                 C2
                                     1.5


   From data in
   Employment                          1
                                             C3       C4
   in Europe
   2008;                                      C7
                                     0.5

                 Training in         C1
                     formal                 C5
                                       0
                  education
                          -2    -1    C60         1    2        3 C14    4         5
   Normalised
   scores; averages                  -0.5              C8
   for each cluster                         C12
   of occupations
                                            C13                                C9
                                     C10
                                      -1
                               C11

EWOSS - Eindhoven 09/11/09           -1.5
  MIIR
     Centre
   for Service
                 Beyond basic qualifications
    Research




             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…
EWOSS - Eindhoven 09/11/09
                                         Average among
                                    employees of all types
  MIIR
                                                              10




      Centre
    for Service                 Elementary
     Research                   occupations
                                                              9




                  Features of       Plant &
                                                                            Able to apply own ideas in work
                                   machine                    8




                                  operators
                                         and                                Learning new things
          Work across            assembler
                                     Craft &
                                           s
                                     related                                Complex tasks
            Different
                                                              7




                                      trades
                                    workers
          Occupational                   and                                Monotonous tasks
                                Skilled agricultural &
         Groups, Europe           assemble
                                fishery rs
                                                              6




                                                                            Solving unforeseen problems
                                workers &
              2005              assemblers
                                                                            Using internet / email for work
                                                              5



                                    Service workers
                                    & shop & market
                                                                            Working with computers
                                       sales workers

                                                    Clerks
                                                              4

                                                                            Deal with nonemployees (eg
                                                                            consumers)

                                      Technicians and         3



                                            associate
                                        professionals

                                        Professionals         2
                                                                                 KIS
                                                                                 work
                                             Legislators,
                                           senior officials   1




                                             & managers


EWOSS - Eindhoven 09/11/09
                        -60               -40        -20           0   20   40       60        80       100
    assemble                          6




  fishery rs
                                                       Solving unforeseen problems
  workers &
  assemblers
  MIIR                   Features of Work across 4 Occupational Groups Europe
      Centre
    for Service
                                                      Using internet email for work
                          2005 – deviations from overall average for /employees
                                      5



        Service workers
     Research

        & shop & market
                                                       Working with computers
           sales workers
                                                                             Own ideas
                            Clerks
                                      4

                                                       Deal with nonemployees (eg
                                                                            New Things
                                                       consumers)
                                                                               Complex
            Technicians and           3                                      Monotonous
                  associate
              professionals                                         Unforeseen problems

 KIS                                                                         Use Internet
                  Professionals       2




 work                                                                    Use computers
                                                                         Nonemployees
                     Legislators,
                   senior officials   1




                     & managers

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



EWOSS - Eindhoven 09/11/09
                                                   Other training
                                                     2
  MIIR                First job title in each                   Health associate professionals
     Centre           occupational cluster
   for Service
    Research                                                C2
                                                   1.5    Architects, engineers & related professionals

   From data in                                                                    Artistic, entertainment
                                                                                   & sports associate
   Employment                                        1
                                                            C3           C4        professionals
                                   Directors
   in Europe                       and chief                                     Business services
   2008;                           executives                 C7                 agents & trade brokers
                                                   0.5
                                                                  Administrative
                         Training in               C1             associate
                             formal                        C5     professionals
                                                     0
                          education
                                   -2        -1     C60           1         2         3 C14        4         5
   Normalised            Crop & animal producers                                     Shoe cleaners.. !!
   scores; averages                                -0.5                    C8
   for each cluster Animal producers                      C12                   Cashiers, tellers &
   of occupations   & related workers                                           related clerks
                                                          C13                                             C9
                                                   C10
                                                    -1                   Manufacturing
                 Agricultural and other     C11           Building       labourers.
                                                                                           Fashion and
                                                                                          other models !!
                 mobile plant operators                   finishers and
                                                          related trades
EWOSS - Eindhoven 09/11/09                         -1.5   workers      Bold > 10%; small font <.1%
  MIIR Key
     Centre
                       Clusters 2, 3 and 4 (16.8%)
   for Service
    Research



                                                        Architects, engineers and related
    Health associate professionals (except nursing)      professionals
    Health professionals (except nursing)             Business professionals                 3
    Legal professionals                       2       College, university and higher education
                                       5.7% of E         teaching professionals 4.6% of E
    Life science professionals
                                                      Computing professionals
    Nursing and midwifery associate professionals
                                                      Social science and related professionals
    Nursing and midwifery professionals
                                                      Special education teaching associate
    Physicists, chemists and related professionals      professionals
    Preprimary education teaching associate           Writers and creative or performing artists
       professionals
    Primary and preprimary education teaching           Artistic, entertainment and sports
       professionals
    Religious professionals
                                                            associate professionals
                                                        Client information clerks
                                                                                         4E
                                                                                    5.5% of
    Secondary education teaching professionals          Other teaching professionals

      Special education teaching professionals          Personal care and related workers
                                                        Social work associate professionals
EWOSS - Eindhoven 09/11/09
  MIIR
     Centre
   for Service
                 Key Clusters 5, 7 – and 8
    Research




    Administrative associate professionals             Business services agents and trade
    Archivists, librarians and related information        brokers
        professionals                                  Computer associate professionals
    Library, mail and related clerks        5          Finance and sales associate
    Life science technicians and related associate
        professional                    17.6% of E
                                                          professionals
                                                       Other teaching associate
                                                                                                  7
    Material recording and transport clerks               professionals          5.3% of E
    Numerical clerks                                   Religious associate professionals
    Optical and electronic equipment operators         Travel attendants and related
    Other office clerks                                   workers
    Physical and engineering science technicians
    Precision workers in metal and related materials
                                                        Cashiers, tellers and related clerks
    Protective services workers
    Secretaries and keyboard operating clerks           Housekeeping and restaurant services
                                                           workers
                                                                                                  8
    Ship and aircraft controllers and technicians                                 16.5% of E
                                                        Other personal services workers
                                                        Shop, stall and market salespersons and
                                                           demonstrators
EWOSS - Eindhoven 09/11/09                              Cashiers, tellers and related clerks
                 So K-I firms, sectors, occupations
  MIIR
     Centre
   for Service
    Research
                 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

EWOSS - Eindhoven 09/11/09
  MIIR
     Centre
   for Service
    Research




                 End of Presentation




EWOSS - Eindhoven 09/11/09

				
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Description: Shoe Sales Associate Skill document sample