Shift to service is 'vital' for UK industry

New research led by Prefessor Andy Neely, Director of the Cambridge Service Alliance (CSA) argues that a shift to services is vital for UK industry.

A newly published white paper co-authored by Professor Neely and Dr Ivanka Visnjic, shows that ‘service’ offers companies significant opportunities to create and capture economic value.


Forty per cent of manufacturers now sell ‘services’ alongside products, to the extent that 50% of the income of many manufacturing firms stems from ‘services’.


The white paper entitled ‘From processes to promises: How complex service providers use business model innovation to deliver sustainable growth’, is published today at the CSA’s industrial conference ‘Service Innovation: Competitive Advantage Through New Business Models’ taking place in Cambridge.


The paper indicates 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,” says Professor Neely.


“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.”


The white paper lists 12 issues which executives keen to pursue a business model innovation approach to service provision should follow.


They include value propositions, value delivery and accountability spread including the range of risks a business model innovation creates.


The Cambridge Service Alliance is a business-led alliance founded in 2010 by the Institute for Manufacturing and the Judge Business School at Cambridge University, with BAE Systems and IBM as the founding industrial members. CSA brings together some of world's leading scholars working on the design and delivery of complex service solutions.


Cambridge Service Alliance website


Download a PDF of the white paper

Date published

21 September 2011

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