White Paper - 'Processes to Promise' Shift to Services Vital for UK Industry
The economy of three-quarters of the developed world relies on the stand-alone service sector. However, 40 per cent of manufacturers now sell ‘services’ alongside products to the extent that the income of 50 per cent of traditional manufacturing firms stems from ‘services’.
New research led by Dr Ivanka Visnjic and Professor Andy Neely, Director of the Cambridge Service Alliance, shows that ‘service’ offers companies significant opportunities to create and capture economic value.
The authors say that underlying this shift to ‘service’ is a change in the nature of service itself with firms increasingly focusing on how they can deliver services that help their customers deliver value.
Providers are progressing from ‘do-ers’ to problem ‘solvers’ and becoming capable of orchestrating the delivery of complex services.
'Understanding what is happening in the shift to services is vital to the future success of UK industry.
'Through this research into business model innovation we’ve really identified the three key elements to making successful innovation of your business model - understanding the value proposition; understanding the service value delivery system; and understanding the risk that is inherent in your new delivery system.'
In this research paper, entitled ‘Business Model Innovation in Complex Services in the 21st Century’ the authors suggests 12 issues that executives keen to pursue a business model innovation approach to service provision should follow.
They take in value propositions, value delivery and accountability spread including the range of risks a business model innovation creates.
The research was published as a White Paper on 21 September 2011 at the Cambridge Service Alliance conference ‘Service Innovation: Competitive Advantage Through New Business Models’.