Services Innovation in Ireland - Options for ... - Europe INNOVA

Table 3 Sectors and Locations Selected for the Global Sector 'Hot Spot' Study
Creative Industries
Scotland (UK)
Stockholm (SWE)
The selection of appropriate geographical case studies for this Study emerged from initial discussions
between the Steering Group and the CMI consortium. 54 Descriptions of services innovation in the six
sector concentrations are given in Annex 5.
This Chapter examines the importance of services innovation to the three global services sectors and
provides specific illustrations taken from the six geographically based case studies. This description
draws upon the conceptual framework developed in Chapter 2 and considers the various types,
approaches, drivers and barriers of services innovation. It also identifies a number of environmental
attributes that favour or support services innovation.
3.2 Testing the Typology of Services Innovation
Chapter 2 of this study set out a number of important concepts and a typology that underpins our
understanding of services innovation. Amongst these was the distinction between different types of
services innovation that can be observed to be at work in service companies or sectors.
In this section, the aim is to explore this typology and to illustrate them with reference to the three
global sectors studied.
3.2.1 New Business Concepts and Models
The preceding Chapter identified a number of global trends affecting the services sector that create
or drive opportunities to create fresh models of doing business in the services sectors. A key feature
that was identified is the trend toward de-composition and re-composition of businesses and in
particular the influence of outsourcing of activities.
De-composition of services can be clearly seen in the trend towards ‘offshoring’ of services notably
in the financial sector. Offshoring of financial services is a form of outsourcing that is taking place at
a fast rate with some estimates suggesting that offshore functions may cover around 70% of staff,
while the remaining 30% will be retained onshore.
New business models emerging from de-composition of the financial services sector are also evident.
With an increasing push towards both globalisation and convergence, a number of international
financial service providers with strong links to their customer base are beginning to consider the
benefits of ‘owning’ the customer and leaving financial product manufacture or service provision to
others. This shift is evidence of a move towards smaller hubs of organisations within wider networks
and strategic alliances along supply and distribution lines. This will also have the effect of creating
numerous areas of professionalisation and new specialisations 55 . Financial services may, at one
extreme, display growing similarities with the automotive sector, with its efficient supply chain of
parts providers.
Financial Services
London (UK)
North Carolina (USA)
In the creative industries, the outsourcing of activities from big studios to specialist suppliers of
editing, lighting, recording, and sound has made the major creative industries companies little
more than bankers. Content creation is now typically outsourced from large corporations to SMEs,
consequently, creative content production is often held up as a model for new knowledge economy
54 The final selection by the Steering Group followed preliminary research into approximately ten potential case studies. Each was assessed in
order to ascertain their relative level of interest and relevance to the Irish context as well as their overall feasibility at a research level.
55 Financial Services Education Agency Australia (FSEAA). 2004., ‘Financial Industry – Future Growth and Challenges’, Sydney, Australia.
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SCM & Logistics
Amsterdam (NL)
Memphis (USA)