Managing value creation in knowledge intensive business services organisations

Abstract

Value creation is essential in the Knowledge Intensive Business Service (KIBS) industry, due to its problem-solving nature. KIBS organisations need to understand their internal value creation processes as well as the complexity in the environment in order to survive and thrive. This paper investigates how value creation is managed in KIBS organisation through a case study. It then goes on to adopt Beer's Viable System Model (VSM) to propose an organisational design, namely the Value Integration Office (VIO). The VIO focuses on the 5 functions/systems defined by VSM in the meta-system and operation of an organisation in order to manage value creation. This design is implemented in a case study organisation with the aim to adopt a holistic view on value creation within the organisation as well as facilitate future planning function. The implementation and impact of the proposed organisational design are reported in this paper