Post on 06-May-2015
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Ten Reasons Why Service Science Matters
More Than Ever
Jim SpohrerDirector IBM University Programs
June 18, 2013
Importance & Opportunity
• Why is this important?– Ten Reasons Service Science Matter More Than Ever
• There is a real opportunity to shift a lot of professionals (academics, industry, government, social sector, etc.) from thinking in GDL (Goods Dominant Logic) towards SDL (Service Dominant Logic)– International Society of Service Innovation
Professionals (http://www.issip.org)– ISSIP (pronounced I-ZIP) will create whitepapers
EDUCAUSE Review Article
Spohrer, J., Fodell, D., & Murphy, W. (2012). Ten Reasons Service Science Matters to Universities. EDUCAUSE Review, 47(6), 52-54.
CACM Article
• Maglio, P. P., Srinivasan, S., Kreulen, J. T., & Spohrer, J. (2006). Service systems, service scientists, SSME, and innovation. Communications of the ACM, 49(7), 81-85.
Service Science Article
• Vargo, S. L., & Akaka, M. A. (2009). Service-dominant logic as a foundation for service science: clarifications. Service Science, 1(1), 32-41.
IMM Article
• Vargo, S. L., & Lusch, R. F. (2011). It's all B2B… and beyond: Toward a systems perspective of the market. Industrial Marketing Management, 40(2), 181-187.
Service Science Article
Spohrer, J., Piciocchi, P., & Bassano, C. (2012). Three frameworks for service research: exploring multilevel governance in nested, networked systems. Service Science, 4(2), 147-160.
If some entity architectures (EN and frameworks (FN) are better than others, then professionals working to solve real-world problems (PRW) might benefit, and generate better sets of recommendations (RE).
Goods-Dominant Logic (GDL):Service Economy
10 GDL Reasons• 1. Service Economy
– Growth of service sector in GDP and Labor of nations• 2. Servitization
– Growth of revenue from service offerings of businesses• 3. Globalization
– Franchises and outsourcing, taxation, immigration, exports, • 4. Demographics
– Aging population, young populations, etc.• 5. Urbanization
– Growth of urban population, specialization, higher education, etc.• 6. Social Services
– Urban populations need more social services, crime, poverty, mental illness, etc.• 7. Financial Services
– Wealth effect, families outsource mode, business outsource more• 8. IT Platforms and Services
– From on-line retail to social media, gamification, big data, platforms,, to outsourcing and hyperspecializaion, self-service, digital business models, open data
• 9. B2B Services– Growth in number of businesses business, entrrepreneurship, open innovation
• 10. Service innovation needs– Overcome Baumol’s disease of low productivity in government, health, education, etc.
How to generate ten SDL reasons?• FP4 Operant Resources & FP9 Resource Integration
– Operant resources are the fundamental source of competitive advantage– All social and economic actors are resource integrators
• From an upcoming Vargo & Lusch Publication: – “Not only do business enterprises and households engage in resource
integration, transformation, and exchange of service, but government agencies, schools, and a host of other nonprofit organizations do so as well.”
– “As a broad, abstract perspective, businesses, households, and other organizations engage in the acquisition, integration, and transformation of resources to create new resources and then use these new resources in exchange with other actors to co-create value. This perspective begins to direct attention to viewing businesses, households, and other organizations, including nonprofits and governments, as essentially and abstractly identical. This insight led us to define exchange and exchange systems in terms of actor-to-actor (A2A) interactions.”
“Order of Magnitude Observation”:Unique Time in Human History
Type: Classes
Order Tokens:Instances
Individ-uals
Insti-tutions
Infra-structure
Inform-ation
Planet 10**0 1 10B Forbes 50
Continent 10**1 10 1B F 1000
Nation 10**2 100 100M F 2000 PRISM
State 10**3 1000 10M utilities nuclear
Metro 10**4 10,000 1M uni’s
City 10**5 100,000 100,000 colleges gas
District 10**6 1M 10,000 hospitals
Community 10**7 10M 1000 schools
Street 10**8 100M 100 parks
Family 10**9 1B 10 solar HAT
Person 10**10 10B 1 Soc. Med.
GDL & SDLGDL Reasons: Sector Transformation, adopting new technologies
SDL Reasons: Entity’s Competitive Strategy, Competing for Collaborators
Service Economy Planet-wide Actors
Servitization/XaaS (Everything asa Service)
Continental Unions as Actors (HSS)
Globalization Nations as Actors (HSS)
Demographics States as Actors (HSS)
Urbanization Metros/Counties as Actors (HSS)
Social Services Cities as Actors (HSS)
Financial Services Districts as Actors (HSS)
IT Platforms & Services Communities as Actors (HSS)
B2B Services Streets/Apart. Buildings as Actors (HSS)
Service Innovation Needs Families as Actors (HSS)
Individuals as Actors
Observations
• Every nation/state/city-university I talk to:– We need help creating high skill, high pay jobs of the future.– We need help keeping our top talent from moving away after
graduation from university• Every business I talk to:
– We need help scaling the benefits of new knowledge and innovation globally, rapidly, profitably
– We need help making our employees and ecosystem more innovative
– We would rather hire people with some entrepreneurial experience (even if failed) than recent graduates, with no entrepreneurial experience.
Holistic Service Systems (HSS)
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http://www.service-science.info/archives/1056
Nation
State/Province
City/Region
UniversityCollege
K-12
Cultural &ConferenceHotels
HospitalMedical
Research
Worker(professional)
Family(household)
For-profits
Non-profits
U-BEEJob Creator/Sustainer
U-BEEs = University-Based Entrepreneurial Ecosystems
“The future is already here (at universities),it is just not evenlydistributed.”
“The best way topredict the futureis to (inspire the nextgeneration of studentsto) build it better.”
“Multilevel nested, networked holistic service systems (HSS) that provision whole service (WS) tothe people inside them. WS includes flows (transportation, water, food, energy, communications), development (buildings, retail ,finance, health, education), and governance (city, state, nation). ”
Service Science
• The transdisciplinary study of service, the application of knowledge for mutual benefits (value co-creation phenomena), in an ecology of interacting many-to-many, nested, networked viable service system entities.
www.ISSIP.org
• Pronounced I-ZIP• International Society of
Service Innovation Professionals
• Service is the application of knowledge for mutual benefitis (value co-creation phenomena)
• Service innovations scale the benefits of new knowledge globally and rapidly.
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Future Directions:Big Data & Cognitive Computing Age
• What new capabilities will service system entities (species?) have in the future?– Natural Language Interactions– Recommendations Rank Ordered– Historical Awareness
• Were recommendations followed?• What outcomes resulted?• Who has responsibility for negative outcomes?• What responsibility for privacy of data?
The Well-Read Service Scientist
• http://service-science.info/archives/2708
Questions
• What is ISSIP?
• What is a service platform?
• What is service science?
• What is a T-shaped professional?
• How is this related to your work at IBM with universities?
• What are the important future trends you see?
What is ISSIP?
• Pronounced I-ZIP• International Society
of Service Innovation Professionals
• SIG Education & Research– T-shapes– Service Science
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What is a service platform?
• Access Places & Entities– Scale benefits– Of new knowledge– Globally & rapidly
• Smart Phones & Watson• Smarter City IOC• Franchises
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Service Science
• Emerging Discipline– Service Science,
Management, and Engineering (SSME)
• Service– Not sector (ECON)– Not capability (CS)
• Value Co-Creation• Service System Entities04/11/2023
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IBM SSME Centennial Icon of Progress
What is a T-shaped Professional?
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Many disciplinesMany sectors
Many regions/cultures(understanding & communications)
Deep in one sector
Deep in one region/culture
Deep in one discipline
How do universities fit in?
• Best way to predict the future is to inspire the next generation to build it better
• The future is already here at universities it is just not well distributed
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Backups
• To help answering questions
Data Science +Urban Science + Service Science =Smarter Planet
Jim SpohrerDirector IBM University Programs
June 17, 2013
Sciences & Applied Arts
• All sciences study systems– Physics, Chemistry, Biology, Information and
Computer Science, Service Science, etc.• All applied arts change systems
– Management, Engineering, Design Arts, Public Policy seek to apply rigorous scientific knowledge to create better worlds to inhabit
Information & Computer Science
• “The single strongest impulse for introducing computers on campuses in the mid-1950s did not come from the schools themselves or from any federal agency, but instead from IBM.”
Data Science
• “Data science incorporates varying elements and builds on techniques and theories from many fields… with the goal of extracting meaning from data and creating data products.”
By 2020, 35 Zettabytes per year
• What’s big today will look small in a decadeGoogle processes > 24 Petabytes of data in a single day
Facebook processes 10 Terabytes of data every day
The Hadron Collider at CERN generates 40 Terabytes of data / sec
For every session, NY Stock Exchange captures 1 Terabyte of trade information
Twitter processes 7 Terabytes of data every day250,000,000 tweets
2 Billion Internet users in 2011By 2013, annual internet traffic will reach 667 Exabytes
Urban Science
• Urban science is an interdisciplinary field that studies diverse urban issues and problems
Service Science
• The transdisciplinary study of service, the application of knowledge for mutual benefits (value co-creation phenomena), in an ecology of interacting many-to-many, nested, networked viable service system entities.
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What’s UP at IBM?
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Those in-the-know say, “IBM is helping to build a Smarter Planet…”
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Smarter Planet = Smarter Systems
INSTRUMENTED We now have the ability to
measure, sense and see the exact condition of practically everything.
INTERCONNECTED People, systems and objects
can communicate and interact with each other in
entirely new ways.
INTELLIGENT We can respond to changes
quickly and accurately, and get better results
by predicting and optimizing for future events.
WORKFORCE
PRODUCTS
SUPPLY CHAIN
COMMUNICATIONS
TRANSPORTATION BUILDINGS
IT NETWORKS
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City challenges
Ryan Chin:Smart Cities
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Smart Startup: Streetline
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Smart Neonatal ICU
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Land-population-energy-carbon
Carlo Ratti:Senseable Cities
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Four commandments for cities of the future: Eduardo Paes at TED2012
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SC IOC as a Platform for Innovation
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Identifies entrepreneurs developing businesses aligning with our Smarter Planet vision.
SmartCamp finalists raised more than $50m and received significant press in Wall Street Journal, Forbes and Bloomberg
in
Healthcare SmartCamp kickstart - Miami - May 15, 2012 Apply by April 27th
SmarterCities SmartCamp kickstart - New York - May 24, 2012 Apply by May 3rd
North America Regional SmartCamp - Boston - June 20 & 21, 2012 Apply by May 25th
apply now at www.ibm.com/isv/startup/smartcamp
Exclusive Networking andMentoring event
North America SmartCamp lead: Eric Apse, eapse@us.ibm.comUniversity Programs lead: Dawn Tew, dawn2@us.ibm.com
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What are the trends?
Digital ImmigrantBorn: 1988
Graduated College: 2012
Digital NativeBorn: 2012
Enters College: 2030
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Transportation: Self-driving cars
Steve Mahan:Test “Driver”
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Water: Circular Economy
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Manufacturing: Circular Economy
Ryan Chin:Urban Mobility
Baxter: Building the Future
Maker-Bot: Replicator 2
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Energy: Artificial Leaf
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Technology: Cognitive Computing
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Example: Leading Through Connections with…Universities Collaborate with IBM Research to Design Watson for the Grand Challenge of Jeopardy !
Assisted in the development of the Open Advancement of Question-Answering Initiative (OAQA) architecture and methodology
Pioneered an online natural language question answering system called START, which provided the ability to answer questions with high precision using information from semi-structured and structured information repositories
Worked to extend the capabilities of Watson, with a focus on extensive common sense knowledge
Focused on large-scale information extraction, parsing, and knowledge inference technologies
Worked on a visualization component to visually explain to external audiences the massively parallel analytics skills it takes for the Watson computing system to break down a question and formulate a rapid and accurate response to rival a human brain
Provided technological advancement enabling a computing system to remember the full interaction, rather than treating every question like the first one - simulating a real dialogue
Explored advanced machine learning techniques along with rich text representations based on syntactic and semantic structures for the Watson’s optimization
Worked on information retrieval and text search technologies
http://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html
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Buildings: Circular EconomyChina Broad Group:30 Stories in 15 Days
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Retail & Hospitality: Social Media
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Finance: Crowd Funding
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Health: Robotics & 3D Printing
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Education: Challenge-Based Sport
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Government: Parameterized Meta-Rules
• Innovativeness
• Equity
– Improveweakestlink
• Sustainability
• Resiliency
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Competitive Parity – Achieved.• The NFL touts parity—the idea
that any team can win on any given Sunday. But this year, parity has truly run wild.
• Through six weeks, 11 of the NFL's 32 teams are 3-3.
• The Journal asked the statistical gurus of Massey-Peabody Analytics to run a coin-flip simulation…
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2030 and Beyond…. Government, Health, Education, Finance, etc.
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IBM operates in 170 countries around the globe
Acquisitions contribute significantly to IBM’s growth ; ~120 acquisitions in last decade
2012 FinancialsRevenue - $ 104.5BNet Income - $ 17.6BEPS - $ 15.25 (10 yrs of
EPS d/digit growth)Net Cash - $18.2B
24% of IBMs revenue in Growth Market countries; growing at 7% ( @cc) in 2012
Number 1 in patent generation for 20 consecutive years ; 6,478 US patents awarded in 2012
More than 40% of IBMs workforce does business away from an office
5 Nobel Laureates10 time winner of the President’s National Medal of Technology & Innovation – latest for LASIK laser refractive surgical techniques
The Smartest Machine On Earth
100 Years of Business & Innovation in 2011
New Era in IBM’s Leadership
IBM Growth Initiatives
IBM has ~425,000 employees worldwide
Context: IBM 101
IBM Platforms for Entrepreneurs
• Smarter Cities Intelligent Operations Center Platform• IBM helping university startups to scale up (growth)04/11/2023
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University: Four Missions• Knowledge
– 1. Transfer (Teaching) – 2. Creation (Research)– 3. Application (Benefits)
• Commerce/Entrepreneurship• Governance/Policymaking
– 4. Re-Integration (Challenge)• Innovativeness, Equity• Sustainability, Resilience
• Nested, Networked Holistic Service Systems– Flows– Development– Governance
Nation
State/Province
City/Metro
UniversityCollege
K-12
Cultural &ConferenceHotels
HospitalMedical
Research
Worker(professional)
Family(household)
For-profits
Non-profits
U-BEEJob Creator/Sustainer
Third Mission (Apply to Create Value) is about U-BEEs = University-Based
Entrepreneurial Ecosystems
Universities Matter #1
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Japan
ChinaGermany
France
United KingdomItaly
Russia SpainBrazilCanada
IndiaMexico AustraliaSouth Korea
NetherlandsTurkey
Sweden
y = 0,7489x + 0,3534R² = 0,719
0
1
2
3
4
5
6
7
8
9
0 1 2 3 4 5 6 7 8 9
% g
loba
l G
DP
% top 500 universities
Nation’s % WW GDP and % Top 500 Universities (2009 Data)
Universities Matter #2
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…But it can be costly, American student loan debt is over $900M
Universities Matter #3
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“When we combined the impact of Harvard’s direct spending on payroll, purchasing and construction – the indirect impact of University spending – and the direct and indirect impact of off-campus spending by Harvard students – we can estimate that Harvard directly and indirectly accounted for nearly $4.8 billion in economic activity in the Boston area in fiscal year 2008, and more than 44,000 jobs.”
Universities Matter #4
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What is a U-BEE? A local job creator/sustainerInnovating “whole service” in all regions worldwide
http://www.service-science.info/archives/1056
Nation
State/Province
City/Region
UniversityCollege
K-12
Cultural &ConferenceHotels
HospitalMedical
Research
Worker(professional)
Family(household)
For-profits
Non-profits
U-BEEJob Creator/Sustainer
U-BEEs = University-Based Entrepreneurial Ecosystems
“The future is already here (at universities),it is just not evenlydistributed.”
“The best way topredict the futureis to (inspire the nextgeneration of studentsto) build it better.”
On Campus IBMers
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Up-SkillCycle
University-Region1
University-Region2
= New Venture
= Acquisition
= High-Growth Acquisition/ New IBM BU (Growing)
= High-Productivity/ Mature IBM BU (Shrinking)
= IBMer moving from mature BU to acquisition
= IBMer moving intoOn Campus IBMer role(help create graduateswith Smarter-Planet skills,help create Smarter Planetoriented new ventures;Refresh skills
= Graduates withSmarter Planet skills
IBM
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Measuring Quality-of-Life?A. Systems that focus on flow of things that humans need (~15%*)
1. Transportation & supply chain2. Water & waste recycling/Climate & Environment3. Food & products manufacturing4. Energy & electricity grid/Clean Tech5. Information and Communication Technologies (ICT access)
B. Systems that focus on human activity and development (~70%*)6. Buildings & construction (smart spaces) (5%*)7. Retail & hospitality/Media & entertainment/Tourism & sports (23%*)8. Banking & finance/Business & consulting (wealthy) (21%*)9. Healthcare & family life (healthy) (10%*)10. Education & work life/Professions & entrepreneurship (wise) (9%*)
C. Systems that focus on human governance - security and opportunity (~15%*)11. Cities & security for families and professionals (property tax)12. States/regions & commercial development opportunities/investments (sales tax)13. Nations/NGOs & citizens rights/rules/incentives/policies/laws (income tax)
0/19/02/7/42/1/1
7/6/1
1/1/0
5/17/27
1/0/2
24/24/1
2/20/24
7/10/3
5/2/2
3/3/10/0/0
1/2/2
Quality of Life = Quality of Service + Quality of Jobs + Quality of Investment-Opportunities
* = US Labor % in 2009.
“61 Service Design 2010 (Japan) / 75 Service Marketing 2010 (Portugal)/78 Service-Oriented Computing 2010 (US)”
Growth
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Nesting
Matryoska dolls:Origin Japanese
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I am nested in at least 10 systemsLevel AKA ~No. People ~No. Entities Example
0. Individual Person 1 10,000,000,000 Jim
1. Family Household 10 1,000,000,000 Spohrer’s
2.Neighborhood Street 100 100,000,000 Kensington
3. Community Block 1000 10,000,000 Bird Land
4. Urban-Zone District 10,000 1,000,000 SC Unified
5. Urban-Center City 100,0000 100,000 Santa Clara
6.Metro-Region County 1,000,000 10,000 SC County
7. State Province 10,000,000 1,000 CA
8. Nation Country 100,000,000 100 USA
9. Continent Union 1,000,000,000 10 NAFTA
10. Planet World 10,000,000,000 1 UN
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Time
ECOLOGY
~14BBig Bang
(NaturalWorld)
~10KCities
(Human-MadeWorld)
sun (energy)
writing(symbols and scribes,
stored memoryand knowledge)
earth(molecules &
stored energy)
written laws(governance andstored control)
bacteria(single-cell life)
sponges(multi-cell life)
money(governed
transportable valuestored value,
“economic energy”)
universities(knowledge workers)
clams (neurons)trilobites (brains)
printing press (books)steam engine (work)200M
bees (socialdivision-of-labor)
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transistor(routine
cognitive work)
Evolution of Natural Systems & Service Systems
Unraveling the mystery of evolving hierarchical-complexity in new populations…To discover the world’s architectures and mechanisms for computing non-zero-sum
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Automobile
Inte
rnet
Technological Acceleration
0 25 50 100 125 15075Years
25
50
100TelephoneElectricity
Radio
Television
VCR
PC
Cellular
% P
enet
ratio
n
YEARS
75
•iPhone/iPad app developer•wireless marketing director•microfinance infrastructure designer•3D content developer for movies, TV•social network manager•deploying technology into the cloud •organic solar cell development•digital image management
Many top in-demand jobs in 2011 did not exist in 2005!
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U.S Department of Labor estimates that today’s learner will have 10-14 jobs…
by the age of 38!
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Estimates are 85% of the jobs today’s learners will be doing haven’t been invented yet
they'll be using technologies that don't exist to solve problems we don't yet know are problems
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Five historical cycles …
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~100 years of US job transformations
Source: US Bureau of Economic Analysis; McKinsey Global Institute Analysis
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6 R’s• Research (Collaborate)• Readiness (Skills)• Recruiting (Jobs)• Revenue (Solutions)• Responsibility (Volunteers)• Regions (Smarter Cities, Startups & Workforce)
WORKFORCE
PRODUCTS
SUPPLY CHAIN
COMMUNICATIONS
TRANSPORTATION BUILDINGS
Gamification
• Gamification is the use of game thinking and game mechanics in a non-game context in order to engage users and solve problems.
Service Economy
• “The increased importance of the service sector in industrialized economies. The current list of Fortune 500 companies contains more service companies and fewer manufacturers than in previous decades.”
Social Media
• Social media refers to the means of interactions among people in which they create, share, and exchange information and ideas in virtual communities and networks
Big Data
• Big data is a collection of data sets so large and complex that it becomes difficult to process using on-hand database management tools or traditional data processing applications.
• Data science incorporates varying elements and builds on techniques and theories from many fields … with the goal of extracting meaning from data and creating data products.
Service-oriented modeling
• Service-oriented modeling is the discipline of modeling business and software systems… This overall servicing vision embodies the general notion: “everything is a service”…
Franchising
• Franchising is the practice of using another firm's successful business model.
Servitization
• Products today have a higher service component than in previous decades. In the management literature this is referred to as the servitization of products. Virtually every product today has a service component to it.
Digital Age
• The Information Age (also known as the Computer Age, Digital Age, or New Media Age) is a period in human history characterized by the shift from traditional industry that the industrial revolution brought through industrialization, to an economy based on the information computerization.
Export
• In national accounts "exports" consist of transactions in goods and services (sales, barter, gifts or grants) from residents to non-residents. Amazon and eBay have largely bypassed the involvement of Customs in many countries because of the low individual values of these trades.
Immigration
• Immigration is the movement of people into another country or region to which they are not native in order to settle there.[
Cybersecurity
• The field covers all the processes and mechanisms by which computer-based equipment, information and services are protected from unintended or unauthorized access, change or destruction.
Service-Dominant Logic
• Exchange– Indirect– Goods– Operant– Economies
• Co-creator– Value proposition– Relational
• Resource Integrators• Beneficiary