Transcript Slide 1

MBS CENTRE FOR SERVICE RESEARCH
UNIVERSITY OF MANCHESTER
22 APRIL 2009
Service Innovation and Performance: What is the Role of
Government?
Allan Mayo
Service Policy Unit
BERR
Two initial hypotheses
(i) Innovation intensity in services depends on
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Size of the market opportunity or threat
Flexibility/openness of the regulatory & business framework,
which incentivises innovation
A network of informed suppliers and buyers
Access to an advanced ICT infrastructure
Rate of change of underpinning technologies
Strategic, management, and workforce skills to handle change
Availability of capital
Two initial hypotheses
(ii) Individual Business success depends upon:
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Market Identification
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Speed of Response/Flexibility
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Availability/Scalability
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Quality/Price
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Credible Business/Revenue Model
Size of the market opportunity
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Not difficult to identify the most important areas
or the ones where Government has a clear
role…………
Societal challenges - Environment
“Climate change is the world's greatest environmental challenge”
Societal challenges - Population
Societal challenges – “Moving people
and things”
Societal challenges – the built
environment
Services Sector GVA and GVA/Job, 2006
UK SERVICES SECTORS BY GVA AND GVA/JOBV 2000-2006
110
Size: 100
90
GVA
80
£bn
70
60
50
40
30
20
15
10
5
0 •••
• Financial services
•Wholesale
•Constr
•Retail
•Logistics
•IT Services
•Hotels
•Telecomms
•Mot ret
• Lab recruit
•Insurance
•Arch/Eng ••Legal,
Above £13.5bn GVA
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0
Accounting •Advertising •R&T
20
30
40
50
•Waste
••film/video ,News Agency
••TT,Recycling
•R&D
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10
•Environmental
•Renting
•• ManCon
60
UK Average £37,138
Productivity GVA/Head £000
70 80
90 100 110 120 130
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140 150 160
Developments in Technology, particularly
ICT, a key driver of innovation
Informed consumers lie behind the
explosion in innovation
Size of the market opportunity
Government creating new opportunities
Millions
The emerging global middle class
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But typically public services are highly complex
services at the end of complex value
chains………….
Disparate policy interventions
Regulations
Standards
Market information
Develop, disseminate
best practice
R&D
&
technology
Skills
Public procurement
The challenge
How to “pull it all together”?
Develop, disseminate
best practice,
R&D
&
technology
Regulations
Standards
Market information
Skills
Public procurement
Assisted Living Innovation Platform 2007 - 2012
KNOWLEDGE TRANSFER AND STANDARDS
ALIP KT (running)
Standards?
OBJECTIVE:
Large scale
New technology
Demonstrator
SHORT TERM R&D
SCDE (running)
LONG TERM R&D
Knowledge
Home based systems & UCD (running)
Business & Economic modelling
Social and Behavioural studies
EXTERNAL to ALIP: Whole Systems Demonstrators
2007
2008
2009
2010
2011
2012
The power of roadmapping
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A roadmap to where?............clear objectives
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Guided by whom?..........leadership/ownership
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Barriers to progress?......Consider Options/Innovation
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Priorities for action by whom?.....accountability and
dependencies
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Key points en route…………clear milestones/timelines
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Who says so?.........transparency/debate
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PROVIDES THE BASIS FOR A CO-ORDINATED APPROACH
The power of demonstration
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Large Scale Demonstrators are the Laboratory of
the Service Economy
Demonstrators inform Government
Procurement
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clear joint objectives
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mutual understanding
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developing ongoing relationship
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appropriate risk sharing
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opportunities for innovation
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flexibility
A new “industrial activism”
A strategic vision for UK
economic recovery:
• Adapt, strengthen general
competitiveness policies
• Influence market in new,
more strategic way
• New approach to targeted
interventions: high growth areas,
major technological change
http://www.berr.gov.uk/files/file51023.pdf
Conclusions
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If my 2 hypotheses are right, the role of Government is to:
provide a high speed, reliable ICT infrastructure and ensure UK firms have
access to latest technological developments/applications
provide a framework which brings together the different stakeholders and
facilitates a shared perspective, particularly where Government is a key
actor
promote better understanding of the challenges we face and potential
solutions through demonstration, and then follow up with procurement
ensure openness and flexibility of markets, not only through competition
policy but also standards
encourage development of relevant skills for an i-enabled, service oriented
economy
improve the availability of funding to support innovation and risk
AND IF EUROPE WISHES TO REMAIN COMPETITIVE THEN WE
NEED TO CONSIDER THIS ON A EUROPEAN SCALE
For further details:
http://sigs.intelligus/
portal/site/sigs/?mode=0
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[email protected]
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http://www.berr.gov.uk/whatwedo/sectors/innovationinser
vices/index.html