Lecture 2: Knowledge intensive business services Flashcards
What are knowledge-intensive business services and why is this different from knowledge-intensive production processes?
- KiBS is short for knowledge intensive business services
o Central the clients play a central role in helping them to co-create/ co-produce the knowledge-based service solution they also account for larger share of innovation and value creation
o KIBS experience economic significance
o KIBS are enterprises whose primary value-added activity consists of accumulation, creation or dissemination of knowledge for the purpose of developing a customized service or product solution to satisfy the clients’ need.
o Therefore, clients need to be co-creators or co-producers of the knowledge-based solution (because they (clients) possess a lot of the knowledge)
Knowledge-intensive services are a combination of specialized contributions of economically and legally independent suppliers which are often provided in project-based cooperation networks.
Knowledge is used as a resource, is generated in a process, developed creatively, and is produced as a result.
Ex. of KIBS are consultancy management, R&D and IT-outsourcing
What are the challenges in managing all stakeholders in KIBS in order to deliver enterprise services successfully?
1 client collaboration for co-creating solution
- this co-creation can be difficult due to it requires knowledge of the client - tacit knowledge to become explicit
What is a service?
A service is an activity or series of activities of more or less intangible nature that normally, but not necessarily, take place in interaction between customer and service employees and/or physical resources or goods and/or systems of
the service provider, which are provided as solutions to customer problems.”
characterise knowledge intensive services
Knowledge is used as a resource, is generated in a process, developed creatively, and is produced as a result.
➢ Knowledge contains evaluations, interpretations and experience and is anchored in the network relations of individuals. Hence, it is difficult to be formalized, communicated and transferred. Services, which are based on this knowledge, can hardly be standardized.
➢ The exchange of knowledge-based products is connected with insecurities and information asymmetries, wherefore intensive communication and interaction processes between suppliers and consumer are necessary.
➢ Knowledge-intensive services are a combination of specialized contributions of economically and legally independent suppliers which are often provided in project-based cooperation networks.
ICT clusters
?
Why care about KIBS?
- change in economy, KIBS important for adding value
- We should care about KIBS because they are used to exploit processes and/or explore new businesses/markets.
- KIBS contribute in a unique and essential way to knowledge dynamics in firms, sectors and territorial contexts through the attributes and production of their products (Simone Strambach)
“Information technology is changing the way companies operate It is affecting the entire process by which companies create their products. Furthermore, it is reshaping the product itself: the entire package of physical goods, services and information companies
provide to create value for their buyers.”
Give examples of KIBS
IT outsourcing companies, R&D, management consultancy
Value chain - KIBS
Value chain represents the internal activities a firm engages in when transforming inputs into outputs.
Characteristics of Service oriented enterprises
Past = vertical (silos), Present = horizontal future = KIBS - outsourcing and sharing services
Change of value adding processes in the value chain
Documentation of the value-adding process information by the use of information technologies, Substitution of physical activities by virtual alternatives, Information management enables companies to create new value for their customers or to extend the customer base
mention the 7 different categories of role responsibility
There are seven categories of client role responsibilities that are essential for effective client co-production of a knowledge-based service solution. Read and discuss them in your team and think of examples for each category.
o Communication openness, shared problem-solving, tolerance, accommodation, advocacy, involvement in project governance, and personal dedication.
What are clusters
o Clusters are critical masses – in one place – of unusual competitive success in particular fields..
o Clusters are not unique, but they are highly typical are – therefore the competitive advantage for businesses (and thereby success) in a global economy lies in local things such as: knowledge, relationship, motivation (that distant rivals cannot match
o The role of businesses’ location has been overlooked, but the environment outside of companies play a vital role. There is evidence that innovation and competitive success in so many fields are geographically concentrated – whether it be in finance (wall street) Hollywood or electronics in Japan.
shared services
Ex. Businesses share IT or HR function - collaboration between organisation - helpdesk support or datacenters - local IT departments in a business - centralise them to reduce cost, trade off - loose connection and knowledge in the individual business unit
Clusters as an competitive advantage
compete and cooperate –>
specialized knowledge
motivation
close to costumers - innovation
spark new businesses
