Information-intensive Services Research Articles

Global industrialisation of information-intensive services: a reference architecture for electronic business media

The relentless march of improvements in the cost-performance ratio of information technology today, facilitates the provision and consumption of Electronic Information-Intensive Services (EIIS) across company boundaries. However, existing products and services exhibit both managerial and technological weaknesses. Therefore, new concepts are required to facilitate a comprehensive industrialisation of cross-organisational EIIS. In this work, we present and thoroughly discuss a modular, service-oriented reference architecture for electronic business media which allows for realising 'Lean' management and implementation of cross-organisational collaboration. Based on the IEEE Recommended Practice for Architectural Description, in combination with the St. Gallen Media Reference Model, this reference architecture provides four main views: community (structural organisation), process (process-oriented organisation), services and infrastructure. By applying this reference architecture to the case of public administration in Switzerland, we show its potential to realise a 'Lean' organisation and implementation of cross-organisational electronic collaboration.

Outsourcing of front-end business processes: Quality, information, and customer contact

We examine the recent supply chain phenomenon of outsourcing front-end business processes in this paper. Few, if any, of the existing theories provide satisfactory explanation for the rapid growth in this area. We use a model proposed by Sridhar and Balachandran [Sridhar, S.S., Balachandran, B.V. 1997. Incomplete information, task assignment, and managerial control systems. Manage. Sci. 43(6), 764–778] to determine the factors that might contribute to this phenomenon. Our analysis reveals that the ability of the vendor to forecast the task environment without bias and to gain sophistication in interpreting contract terms might make the firm indifferent between outsourcing and retaining front-end processes in-house. We validate our findings against the work of Apte and Mason [Apte, U.M., Mason, R.O., 1995. Global disaggregation of information-intensive services. Manage. Sci. 41(7), 1250–1262], who develop a theoretical framework to identify criteria for companies to select services to be outsourced. They base their decisions predominantly on the nature of “customer contact.” The combined theories are shown to provide a rich framework for identifying customer-facing tasks that can be outsourced.

The growth of information workers in the US economy, 1950–2000: the role of technological change, computerization, and structural change

Using data from the decennial US Censuses of 1950, 1960, 1970, 1980, 1990, and 2000, I construct matrices of employment by 267 occupations and 64 industries and then aggregate the occupations into four categories: (i) knowledge producers; (ii) data processors; (iii) service workers; and (iv) goods-processing workers. I find that information workers (the sum of the first two categories) increased from 37% of the workforce in 1950 to 59% in 2000. Then, using an input–output decomposition analysis, I find that the growth in information workers was driven not by a shift in tastes toward information-intensive goods and services (as measured by the composition of final demand) but rather by a roughly equal combination of the substitution of information workers for goods and service workers within the structure of production of industries and the unbalanced growth effect (from differential rates of industry productivity growth). Finally, on the basis of regression analysis, I find that R&D expenditures and computer investment are positively associated with the growth in knowledge workers but negatively associated with the growth of data workers.

The intention to use computerized reservation systems: the moderating effects of organizational support and supplier incentive

While information systems have become an integral part of information-intensive service organizations, they have also caused systems-related stress and consequent job dissatisfaction among front-line service employees. This study looks into the phenomenon of technology adoption for front-line service and identifies potential factors that nurture positive intentions toward technology usage. It finds that front-line service workers can be motivated to use the technology not only by technological characteristics, such as ease of use and usefulness, but that they are also motivated by external management support and market supplier incentive. These two management interventions are revealed as moderating variables. The study also provides insight into research, suggesting that the service organization and technology market supplier together can guide front-line employees to feel less stressed yet more challenged by their job. It is assumed that these efforts will result in better customer service.

Applying lean manufacturing principles to information intensive services

Lean manufacturing principles have been successfully applied to manufactured products for several decades to significantly reduce inventory in the supply chain and to increase productivity as well as the quality of the products. However, it is not clear whether such principles can be similarly applied to information intensive services that usually do not carry inventory. In this paper, we use an example of insurance claims handling process to illustrate how the lean manufacturing principles can be beneficially applied, albeit with some modifications, to information intensive services. Since such services do not have significant amount of inventory, we argue that minimising cycle time plays the same role as reducing inventory. We also show that a slightly different but parallel set of metrics should be used to evaluate the performance of the system after the implementation of lean principles to information intensive services.

Key Account Management in information-intensive services

Key Account Management (KAM) is surprisingly little known marketing approach in retailing and consumer services context, however it has much to offer to companies in these industries. It provides an effective, practical and rather simple method for companies interested in increasing their profits by right customer and relationship management. Indeed, KAM is a business-to-business marketing approach, however most retailers and service companies can greatly benefit from it. A large number of retailers and service companies operate both in the consumer and business-to-business market. Few retailers or service providers have never invoiced another company. Moreover, most consumer goods and services are influenced by business-to-business services. The availability and quality of consumer goods and services often essentially depends on various business-to-business services in the earlier phases of marketing channels. Furthermore, by understanding the logic of KAM, retailers and consumer service providers can develop their own key supplier management. Information is one of the most important resources of goods and services in post-industrial economy. Information-intensive services are based on knowledge and refining of information. Increasing number of information-intensive services emerge both in the consumer and business-to-business market. This paper describes the nature of KAM and information-intensive services, and suggests a framework for KAM practices in information-intensive services.

Innovation in investment banking: the dynamics of control systems within the Chandlerian firm

This paper extends the technological aspects of Chandler's 'Scale and Scope' framework from 19th-century manufacturing firms that processed physical materials, to a modern service firm that processes information. The intangible nature of information-intensive service provision means that scale and scope economies in investment banking are constrained more by regulations on risk-exposure than developments in production technologies. Profitability and corporate dynamics are therefore dependent on innovation in risk-control systems. Drawing on a case study, the paper shows that risk control systems undergo qualitative changes as they increase in size and complexity.

An Analysis of the Production Line versus the Case Manager Approach to Information Intensive Services*

The production line approach has been beneficially used in manufacturing companies to yield consistent‐quality standard products at relatively low cost. For this reason, service firms have also employed this approach, which embodies a division of labor, sequential flow processes, and standardization of services. Today's customers, however, are demanding customized services and shorter cycle times—outcomes that the production line approach finds difficult to achieve. An alternative process design proposed for information intensive services is the emerging “case manager” approach, in which all the steps required to deliver a service are performed by a single information technology‐enabled individual. This paper uses queuing theory to compare the waiting time performance of the production line and the case manager approaches. This comparison shows that when the number of process steps under the production line approach is relatively large, the relative efficiency of the case manager is sufficiently high, system utilization rate is moderate, and the size of staff downsizing is small, the case manager approach is preferred. Critical issues for the design of enabling information technology are then discussed. The paper concludes with suggestions for future research on the case manager approach.

Basic features and trends of the economic base of Beijing

In China, systematic studies on economic base of a single city are very weak. Based on the 1990 census and relevant statistics during 1990 – 1994, a comparative study is conducted on Beijing, Shanghai and Tianjin. The major conclusions are as follows: (1) Beijing is not only the national political and cultural center, but also the national economic center, viz the commercial service center and the low water-consuming, light polluting, external economy-typed and knowledge-intensive manufacturing industrial center, which is appropriate for Beijing’s comparative advantage. (2) The high water-consuming, heavy polluting and regional market-oriented industry is overdeveloped as far as Beijing’s scarce water and other natural resources are concerned. (3) Beijing’s industrial base is smaller, more regional market-based, and the service base is more diverse, larger and more national market-based than Shanghai’s and Tianjin’s. (4) With the development of socialist market economy and implement of sustainable development strategy, the external economy-typed and knowledge-intensive manufacturing industry with lower input of water and less environmental pollution, and information-intensive service industries will centralize further, and the industry with higher input of water and/or severe environmental pollution will decentralize.

Competing in Information-Intensive Services: Analyzing the Impact of Task Consolidation and Employee Empowerment

:We analyze the competitive and economic implications of information technology, the allocation of decision rights, and task bundling during business process reengineering. The popular reengineering literature advocates employee empowerment—decentralizing decision authority and consolidating tasks—as complementary strategies. Our analysis reveals, however, that implementing these two changes simultaneously is suboptimal in many cases. Decentralization and consolidation decisions can occur separately or together; the optimal combination depends on the effectiveness of technology aimed at skill enhancement and the customers’ sensitivity to time and quality. We identify those process parameters that can cause decentralization and consolidation to have opposite effects on process performance; we also point to other parameters, such as customer-to-customer variability, which can cause them to complement one another. Finally, we explain why, in a time-based competitive marketplace, firms are more likely to centralize their decision-making process while concentrating their information technology investments on enhancing productivity and intraorganizational communications.

The Creation and Growth of Small Business Service Firms in Post-Industrial Britain

Since 1980, the United Kingdom has experienced a dramatic growth in firms and employment in information-intensive business services, such as management consultancy and market research. This article reports the results of the first substantial nation-wide investigation into the nature and causes of small professional business service firm growth in Britain, undertaken in 1991. It reveals marked differences in the characteristics, markets and competitive requirements of such firms, compared with small manufacturing firms. The demand for their services comes predominantly from large companies, and is more focussed on financial and other services and government. But small firms are also making increasing use of business services. Specialised expertise, reputation and educational and professional qualifications are essential prerequisites for the establishment of new business service firms. Their success is also being enhanced by increasing use of informal networking, collaborative partnerships, and subcontracting.

Global Disaggregation of Information-Intensive Services

Information-intensive services are being globally disaggregated as corporations respond to the pressures of increasing global competition, and take advantage of the opportunities made available by the progress of information technology and the emerging global work force. In order to globally disaggregate services, corporations must decide whether or not to carry out a service activity within the organization, and where to locate it, within or outside the geographic boundary of the home-base country. This paper analyzes the opportunities and challenges of global disaggregation of information-intensive services. Specifically, the paper proposes a taxonomy of disaggregation, and develops a theoretical framework that identifies the criteria and guidelines for successfully selecting service activities to be globally disaggregated.

The Rise and Role of Small Service Firms in the United Kingdom

Dr. David Keeble and Dr. Johan Bryson are lecturer and research associate respectvely in the deaprtment of geography and small business research Center, Cambrige University, England, and peter Wood is senior lecturer in the department of Geography, University of College, London. Since at leeast the early 1980s turnover, employment and the stock of firms in a range of inforatmion intensive business service in the United kingodm have all grown at an explosive rate. Yet the role of small firms in this remarkable growth of business service has received surprisingly little attention from acedmic research.The review is focussed on two key information intensive business service sectors, managment counsultancy and market research. The autors find that small firm prolifiration in these sector appears chiefly to reflect 'pull'not 'push' factors recession and redunacy have generated some 'unwillingly' enterpreneurship but only in a mionrity of business, in cotrast with manufacturing. They find that the ability of small firms to complete effectively with large firms reflects two key advatages. One is the professional expertise, reputation and network of personal contacts embodied in the founder and greter flexiblity in terms of widespread access to associates and complementary expertise and frequent networkingbetween small firms and individual professionals.

Sectoral Clustering and Growth in American Metropolitan Areas

O HUALLACHAIN B. (1991) Sectoral clustering and growth in American metropolitan areas, Reg. Studies 25, 411–426. The purposes of this paper are to develop a theory of industrial clustering of information intensive industries, identify intermetropolitan clusters of sectors in the US, to test the relationship between the clustering pattern and metropolitan employment and income growth, and to interpret temporal changes in the clusters. The empirical results reported here are based on factor analyses of employment shares in seventy-seven sectors in the 150 largest metropolitan areas in 1977 and 1986. The sectors are mainly two-digit industries. Also included are nine auxiliary and administrative sectors and three government sectors. The factor analyses succeeded in identifying spatial associations among sectors. Little association was found between the location of high-order services and corporate auxiliary and administrative employment. I interpret clustering of information intensive service and manufacturi...

Telecommunications in the Uruguay Round

Within the Uruguay Round, the “Group of Negotiations on Trade in Services” deals with the formation of a multilateral framework of principles and rules for the “progressive liberalization” of trade in services. Telecommunications is of high priority in the framework preparations, both as a delivery vehicle for information-intensive services and as a service industry itself. This article attempts to clarify possible economic and developmental opportunities for LDCs which could emerge from the Uruguay negotiations regarding telecommunications and information-intensive services. It contains an up-to-date analysis of the present results of the Uruguay Round and offers an outlook on the consequences of the negotiations.

Trade in Information-Intensive Services: How and Why Regions Develop Export Advantages

Starting from the observation that Canada is a net exporter of engineering consulting services, largely attributable to a single province, Quebec, this paper attempts to explain how regions develop export advantages in information intensive services. The authors contend that trade in services is based on comparative advantage just as trade in goods, that the development of competitive advantage in the service sector is not fundamentally different from that in the manufacturing sector. Services do not offer a short-cut to developing export advantages. The authors specifically examine the role of technology (knowledge), work experience, R&D, external economies and public policy in the development of export advantages in information intensive services.