University and industry interactions for a smarter planet 20110830 v4

© 2011 IBM Corporation

IBM University Programs worldwide, accelerating regional development (IBM Upward)

University and Industry Interactions for a Smarter Planet

Dr. James (“Jim”) C. Spohrer, [email protected] Champion and Director IBM UPward(University Programs worldwide - accelerating regional development)NCET2 & UIDP, Wed 12noon EST August 31th, 2011

Dawn Tew, [email protected] Research Initiatives, University Programs Worldwide

Working Together to Build a Smarter Planet

2 © 2011 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

A Framework for Global Civil Society

Daniel Patrick Moynihan said nearly 50 years ago: "If you want to build a world class city, build a great university and wait 200 years." His insight is true today – except yesterday's 200 years has become twenty. More than ever, universities will generate and sustain the world’s idea capitals and, as vital creators, incubators, connectors, and channels of thought and understanding, they will provide a framework for global civil society.

– John Sexton, President NYU


Outline

Introduction: IBM & University Programs– IBM Almaden– IBM Overview– IBM University Programs Worldwide

Trend: Universities & Regional Development– Top universities and national GDP– The value of higher education– U-BEE’s as engines of job creation

Evolution: Smarter Planet & Service Science– What is Smarter Planet & Service Science?– How to measure Quality-of-Life?– How to visualize Service Science? – What’s the Skills Goal? Hint: T-Shaped People– Where are the Opportunities?– Where is the “Real Science” in SSME+D?

“Let’s Build a Smarter Planet"


Come visit IBM Almaden Research Center, San Jose, CA

Upcoming Conferences– Sept 27th, 2011

• Future Technologies,Skills & Jobs

– July 2012• ISSS & SRII San Jose• HSSE San Francisco

More Information– Blog

• www.service-science.info– Twitter

• @JimSpohrer– Presentations

• www.slideshare.net/spohrer– Email

• [email protected]


IBM operates in 170 countries around the globe

IBM has 426,000 employees worldwide 2010 Financials

Revenue - $ 99.9B Net Income - $ 14.8B EPS - $ 11.52 Net Cash - $11.7B

21% of IBM’s revenue in growth market countries; growing at 13% in late 2010

Number 1 in patent generation for 18 consecutive years ; 5,896 US patents awarded in 2010

More than 40% of IBM’s workforce conducts business away from an office

5 Nobel Laureates

9 time winner of the President’s National Medal of Technology & Innovation - latest award for Blue Gene Supercomputer

“Let’s Build a Smarter Planet"

The Smartest Machine On Earth

100 Years of Business & Innovation


Our History: Over 60 Years of Collaborations

1945: IBM Research born in cooperation w/

Columbia University

1951: PhD

Fellowship Program launched

1997: First ACM Int’l Collegiate Programming Contest (ACM

ICPC) held

2002: Virtual Computing Lab Initiative ( VCL ) created at NC

State

1990: First Center For Advanced Studies

( CAS ) opens in Toronto CA

2003: IBM and leading universities

pioneer the discipline of Services Science,

Management & Engineering ( SSME )

2008: Award programs

innovated with introduction of

Named Awards for outstanding achievers

2007: IBM, RPI and State of NY form CCNI ; A $100M public-

private partnership

2009: IBM Cloud Academy launched as a

forum for Higher Educ to create &

share cloud based

technologies

1945

2011

1983: Faculty Award

Program launched

1980

1993: Shared Univ Research

( SUR ) Program launched

2004: Launch of the Academic Initiative ( AI ) providing free

IBM SW to the academic community

2006: Open Collaborative

Research ( OCR ) award program

launched

8 © 2011IBM CorporationIBM University Programs World Wide (IBM UP)

What We Do: The “6 R’s” (not to be confused with 3 R’s)

1. ResearchResearch awards focus on grand challenge problems and big bets

https://www.ibm.com/developerworks/university/research

2. ReadinessAccess to IBM tools, methods, and course materials to develop skills

https://www.ibm.com/developerworks/university/academicinitiative

3. RecruitingInternships and full-time positions working to build a smarter planet

http://www.ibm.com/jobs

4. RevenueImprove performance, the university as a complex enterprise (city within city)

http://www.ibm.com/services/us/gbs/bus/html/bcs_education.html

5. ResponsibilityCommunity service provides access to IBMers expertise/resources

http://www.ibm.com/ibm/ibmgives/

6. RegionsRegional innovation ecosystems – incubators, entrepreneurship, jobs

http://www.ibm.com/ibm/governmentalprograms/innovissue.html


University as Complex Enterprise (City Within City)

Universities can be the innovation centers for Smarter Cities (U-BEE)University-Based Entrepreneurial Ecosystems

Cities can be living labs for University research

Universities produce the skilled workforce for cities.

Universities are among the largest employers (top 10) in a city.

Universities faculty, deans, provosts, presidents are often well connected & influential in city governments.

IBM and Tulane University Usher in a New Era for Smarter Buildings in New Orleans

http://www-03.ibm.com/press/us/en/pressrelease/34694.wss

As the largest private employer in the City of New Orleans, Tulane University has made significant advances in rebuilding in more environmentally sustainable ways both the community at large and its campus

The IBM project is helping to transform the home of Tulane's School of Architecture, the century-old Richardson Memorial Hall, into a "smarter building living laboratory," using IBM Intelligent Building Management while maintaining respect for its historic status


What are the benefits of top-ranked universities?% WW GDP and % WW Top-500-Universities

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

Strong Correlation (2009 Data): National GDP and University Rankingshttp://www.upload-it.fr/files/1513639149/graph.html


What are the benefits of more education? Of higher skills?

…But it can be costly, American student loan debt is over $900M


Universities Worldwide Accelerating Regional Development

“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:Research Centers & Real-World Systems

CITIES/METRO REGIONS:Universities Key to Long-Term Economic Development

U-BEEs: University-Based Entrepreneurial Ecosystems Universities as “Living Labs” for Host Cities


“Good ideas” evolving to higher value…

0

1

2

3

4

5

6

7

8

Patent Paper Prototype Customer $1M $10M $100M

Revenu

e

Revenu

e

Revenu

e


“I have a technology to license…”Now universities, businesses, individuals and technology brokers can submit non-confidential business proposals, patents, white papers, etc. to

http://www.ibm.com/contact/submissions


k

Learn more about our Global Entrepreneur initiative:

Opens our doors and resources to entrepreneurs looking to bring the next big idea to market

Brings together investors, mentors and entrepreneurs – 25 thought leaders in each city

Focused on startups with 2-5 employees

Supports cities building smart city solutions

Learn more about our results to date:

513 Global Entrepreneur participants

177 referrals to IBM Innovation Centers

119 builds or ports to IBM technologies

8 SmartCamp events in 2010, 9 more in 2011

fuels collaborative innovation

http://www.ibm.com/isv/startup

16


SmartCamps bring together regional leaders

2010 SmartCamp

finalists

17

2011 SmartCamp finalists…

IBM SmartCampNew York


Acumen Fund Invests in Sproxil, Inc. to Combat Counterfeit Medicine Using Mobile Technology

PRWeb

Sproxil wins $10,000 People’s Choice Award at Accelerate Michigan

Xconomy

SmartCamp winners attract venture capital funding

Streetline gets $15M for smart parking VatorNews

Parking-Technology Startup Streetline Backed by Bill Ford’s Firm Bloomberg

CareCloud Raises $5 Million in Second Angel Investor Round HealthPlanNews

Panoramic Power Announces $4.5 Million Funding

Globes Israel

18


IBM SmartCamps generate global media interest

SmartCamp Bangalore: IBM’s Adoption Plan Forbes India

IBM SmartCamp: A Green Future in Sensors

GreenTech

How IBM is Helping Entrepreneurs Build a Smarter Planet

GlobalKnowledgeEconomy blog

Big Blue’s bear hug for Silicon Valley startups VentureBeat

IBM’s Innovative Approach to Venture Capital The Street

IBM’s “Global Entrepreneur of the Year” Streetline: A silver bullet for urban traffic problems

CNN Money

With SmartCamp, IBM supports five French start-ups for Smarter Planet

Le Monde Informatique

IBM Announces Silicon Valley’s Smartest Green SMB Startups

InformationWeek

IBM’s SmartCamp Rewards Entrepreneurs for Good Intentions and Presentations

Building a Smarter Planet blog

19


IBM Innovation Centers – A proven gateway into SmartCamps

TECHNICAL ENABLEMENT– Support for building, porting,

and testing applications

– Industry Framework Validations SKILLS DEVELOPMENT

– Education on key IBM capabilities

– Access to IBM hardware COLLABORATION

– Entrepreneur / Venture Firm networking events

– Connect to Win events

– Academia / Partner networking events GO TO MARKET

– Support for expanding to new countries

– Partner demand generation seminars

Mexico

Slovenia


University-Based Entrepreneurial Ecosystems (U-BEEs)

Do you know that (from NCET2):

More than three quarters of post-1995 increase in productivity growth could be traced to science investments [D. W. Jorgenson, M. S. Ho, K. J. Stiroh, J. Econ. Perspect. 22, 3 (2008)]

1/3 of SBIRs reported involvement with a university including founder was a former academic, faculty were consultants, universities were subcontractors, or graduate students were employed

20 year returns for Early/Seed VCs was 20.6%, compared to 13.8% for Later Stage VCs and 8.2% for the S&P 500

8 percent of all university startups go public, in comparison to a "going public rate" of only 0.07 percent for other U.S. enterprises - a 114x difference

over 400 university startups are created nationally each year based on federally funded R&D, which included Google, Netscape, Genentech, Lycos, Sun Microsystems, Silicon Graphics, and Cisco Systems

Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were 5 years old or less

68% of university startups created between 1980 to 2000 remained in business in 2001, while regular startups experienced a 90% failure rate during that same time period

22

University Trend: Shift to e-Learning and IC U-BEEs

University sub-systemsDisciplines in Schools (circles)Innovation Centers (squares)

E.g., CMU Website (2009)“Research Centers:where it all happens – to solve real-world problems”

Disciplines in SchoolsAward degreesSingle-discipline focusResearch discipline problemsMore e-Learning

Innovation Centers (ICs)Industry/government sponsorsMulti-disciplinary teamsResearch real-world systemsU-BEEs:University-Based Entrepreneurial Ecosystems

D

D

D

D

D

D

Engine

ering

Schoo

l

Social

Scie

nces

,

Human

ities

Professional

Studies

Business School

water & waste transportation

health energy/grid

e-government

Science &

Mathem

atics

I-School

Design

food & supply chain

23

Universities connect innovation flows between Regions (“High Speed Bus”)

World as System of SystemsWorld (light blue - largest)Nations (green - large)States (dark blue - medium)Cities (yellow - small)Universities (red - smallest)

Cities as System of Systems-Transportation & Supply Chain-Water & Waste Recycling-Food & Products ((Nano)-Energy & Electricity-Information/ICT & Cloud (Info)-Buildings & Construction-Retail & Hospitality/Media & Entertainment-Banking & Finance-Healthcare & Family (Bio)-Education & Professions (Cogno)-Government (City, State, Nation)

Nations: Innovation Opportunities- GDP/Capita (level and growth rate)- Energy/Capita (fossil and renewable)

Developed MarketNations

(> $20K GDP/Capita)

Emerging MarketNations

(< $20K GDP/Capita)

IBM UP WW: Tandem Awards: Increasing university linkages (knowledge exchange interactions)


A New Paradigm: Collaborative Innovation

China

WatsonAlmaden

Austin

TokyoHaifa

Zurich

India

IBM Research Lab

Global, Smarter Planet Collaborations

Pangoo

Brazil


Connecting Universities and IBM

GlobalResearch Labs

Smarter Planet Solutions &Platforms

Sci Net Consortium

Mega Scale Centers of Competency

HSCCI

Innovation Showcase Centers

On Campus Collaborations

Services Research Institute

Collaboratory for Services Science

Grand Challenge Centers


Global University Programs in Action

Sci Net Consortium at Sci Net Consortium at University of TorontoUniversity of Toronto

IBM & University of IBM & University of Melbourne Collaboratory for Melbourne Collaboratory for Life Sciences ResearchLife Sciences Research

King Abdullah University of King Abdullah University of Science & Technology Science & Technology (KAUST)(KAUST)

IBM & Rice University to Tackle IBM & Rice University to Tackle Smarter Healthcare Challenges Smarter Healthcare Challenges with HPC POWER7with HPC POWER7


● Co-investing to improve capabilities of individuals & institutions.

● Realizing profitable & sustainable improvements.

● Smarter cities/regions improve quality-of-life (for all of us!)

Where We Focus: Universities

Research

Recruiting Skills

People

Individuals & Disciplines

Government

Industry Academia

Planet

Institutions & Systems

Talent Infrastructure


Big Picture in Words: Regional 4 I’s Upward Spirals

Academia, industry, and government, while different types of societal institutions, are nevertheless similar in that they provide career paths for individuals; in general higher skill, greater responsibility, and more productive-prior experiences and outcomes correlate with higher pay, one aspect of modern quality-of-life.

These individuals live somewhere and experience quality-of-life both where they live and where they visit; furthermore, their decisions about where to live, where to visit, which career paths and other options to pursue are shaped by culturally shared information about regional quality-of-life variations - some regions historically provide more and better opportunities than others.

Finally, stepping back for a moment, and taking a broad view of history, one can see academia, industry, and government interacting to build and rebuild more and more technologically advanced infrastructure, from buildings to transportation and utility systems; infrastructure which provides access to natural and human-made resources that support quality-of-life in regions - vast majority of regions today have increasing population densities that put stress on older systems.

How well do we understand “regional 4 I’s upward spirals” across generations?

IBM’s Smarter Planet research aims to understand infrastructure building and rebuilding, by institutions designing and redesigning career paths, for individuals working and reworking life’s options, based on shared information about regional quality-of-life and what is best for them, their families, and their communities.


Installation DeploymentIrruption

The Industrial Revolution

Age of Steam and Railways

Age of Steel, Electricityand Heavy EngineeringAge of Oil, Automobilesand Mass ProductionAge of Information and Telecommunications

Frenzy Synergy Maturity

Panic1797

Depression

1893

Crash

1929

Credit Crisis 2008

Coming period ofInstitutional Adjustment and Production Capital

1

2

3

4

5

Panic1847

1771

1829

1875

1908

1971

1873

1920

1974

1829

Crash

•Formation of Mfg. industry

•Repeal of Corn Laws opening trade

•Standards on gauge, time•Catalog sales companies •Economies of scale

•Urban development•Support for interventionism

•Build-out of Interstate highways

•IMF, World Bank, BIS

Source: Carlota Perez, Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages; (Edward Elar Publishers, 2003).

Five waves of infrastructure transformation


Evolution: Smarter Planet Infrastructure (3 I’s)

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


Communication$ 3.96 Tn

Transportation$ 6.95 Tn

Leisure / Recreation / Clothing

$ 7.80 Tn

Healthcare$ 4.27 Tn

Food$ 4.89 Tn

Infrastructure$ 12.54 Tn

Govt. & Safety$ 5.21 Tn

Finance$ 4.58 Tn

Electricity$ 2.94 Tn

Education$ 1.36 Tn

Water$ 0.13 Tn

Global system-of-systems$54 Trillion

(100% of WW 2008 GDP)

Same IndustryBusiness SupportIT SystemsEnergy ResourcesMachineryMaterials Trade

Legend for system inputsNote:1. Size of bubbles represents

systems’ economic values2. Arrows represent the strength of

systems’ interaction

Source: IBV analysis based on OECD

Our planet is a complex, dynamic, highly interconnected $54 Trillion system-of-systems (OECD-based analysis)

This chart shows ‘systems‘ (not ‘industries‘)

Our planet is a complex system-of-systems

1 Tn


Economists estimate, that all systems carry inefficiencies of up to $15 Tn, of which $4 Tn could be eliminated

Global economic value of

System-of-systems

$54 Trillion100% of WW 2008 GDP

Inefficiencies$15 Trillion28% of WW 2008 GDP

Improvement potential

$4 Trillion7% of WW 2008 GDP

How to read the chart:

For example, the Healthcare system‘s value is $4,270B. It carries an estimated inefficiency of 42%. From that level of 42% inefficiency, economists estimate that ~34% can be eliminated (= 34% x 42%).

We now have the capabilities to manage a system-of-systems planet

Source: IBM economists survey 2009; n= 480

System inefficiency as % of total economic value

Impr

ovem

ent

pote

ntia

l as

% o

f sy

stem

inef

ficie

ncy

Education1,360

Building & Transport Infrastructure

12,540

Healthcare4,270

Government & Safety5,210

Electricity2,940

Financial4,580

Food & Water4,890

Transportation (Goods & Passenger)

6,950

Leisure / Recreation /

Clothing7,800

Communication3,960

Analysis of inefficiencies in the planet‘s system-of-systems

Note: Size of the bubble indicate absolute value of the system in USD Billions

42%

34%

This chart shows ‘systems‘ (not ‘industries‘)

15%

20%

25%

30%

35%

40%

15% 20% 25% 30% 35% 40% 45%


Quality-of-Life: How to measure?

A. Systems that focus on flow of things that humans need (~15%*)1. Transportation & supply chain

2. Water & waste recycling/Climate & Environment

3. Food & products manufacturing

4. Energy & electricity grid/Clean Tech

5. 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)

20/10/10

0/19/0

2/7/42/1/1

7/6/11/1/0

5/17/27

1/0/2

24/24/1

2/20/247/10/3

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)”

34 © 2011 IBM CorporationIBM University Programs Worldwide (IBM UP)

Urban-Age.Net

Currently, the world’s top 30 cities generate 80% of the world’s wealth.The Urban Age

For the first time in history more than 50% the earth’s population live in cities - by 2050 it will be 75%The Endless City


Our 21st Century World:Nested, Networked Holistic Service Systemshttp://www.service-science.info/archives/1056 Holistic Service Systems provide access to

“Whole Service” to people inside, including Transportation, Water, Food, Energy, Communications, Buildings, Retail, Finance, Health, Education, Governance, etc.

Examples: Nations, States, Cities, Universities, Hotels, Hospitals, Homes

Definition: An holistic service system is a service system that can provide “whole service” to its primary population of people, independent of all external service systems, for an extended period of time, balancing independence with interdependence (outsourcing limits, re-cycle to sustain, etc.)

University-Based Entrepreneurial Ecosystems (U-BEE’s): Universities are usually in the “top five” job creators of regions, when they have associated incubators & science-technology parks, super-computing data centers, hospitals, cultural & conference hotels, K-12 schools, etc.

Nation

State/Province

City/Region

UniversityCollege

K-12

Cultural &ConferenceHotels

HospitalMedical

Research

Worker(professional)

Family(household)

For-profits

Non-profits

U-BEEJob Creators

~25-50% of start-ups are newIT-enabled service offerings

SaaSPaaSIaaS

http://www.thesrii.org


Questions leaders of every nation, state, city, etc. ask

How to create more and better jobs (meaningful activities) for citizens?– higher skill & higher pay– higher participation rate, opportunities for ALL people

How to shift work towards high-skill, high-value activities? – away from low-skill, low-value routine physical, mental, interactional activities– toward high-value innovation (inventing best-practices, often from new ventures)– toward high-value transformation (implementing best-practices)– toward operations, maintenance, and incident-planning for modern infrastructure

How to invest in progress?– continuously improve infrastructure, talent, and ability to invest wisely– “true value of automation cannot be assessed until we know where people land”

• Upward spiral or downward spiral? (e.g., “Robot Nation”)

How to improve quality-of-life?– sustainably, with less environmental impact, more recycling and less imports– equal access to opportunity & justice, generation after generation, for the long-run


Overview: Elements of Interest

Infrastructure & Environment(Technologies Deployed)

Individuals &Certified

Competences(Skills)

Institutions &Roles(Jobs)

Information, Quality-of-Life & Demographics(Careers)

Policies & InvestmentsRun-Transform-Innovate

Governance

Infrastructure(Technologies Deployed)


Competences(Skills)


Information, Quality-of-Life Demographics(Careers)



Competences(Skills)





Competences(Skills)





Competences(Skills)





Competences(Skills)





Competences(Skills)



Region 1 Region 2

Futur

eP

resent

Histor

y


Governance


Governance


Governance


Governance

FrameworksTheoriesModels

Sept 27th Workshop at IBM Almaden


What are T-shaped professionals?Ready for Life-Long-LearningReady for T-eamworkReady to Help Build a Smarter Planet

SSME+D = Service Science, Management, Engineering + Design

Many disciplines(understanding & communications)

Many systems(understanding & communications)

Deep in one discipline

(ana

lytic thinking & problem

solving)

Deep in one system

(analytic thinking & problem

solving)

Many multi-cultural-team service projects completed(resume: outcomes, accomplishments & awards)

BREADTH

DE

PT

H


Thank-You! Questions?

Dr. James (“Jim”) C. SpohrerInnovation Champion & Director, IBM University Programs & open worldwide entrepreneurship research (IBM UPower) [email protected]

“Instrumented, Interconnected, Intelligent – Let’s build a Smarter Planet.” – IBM“If we are going to build a smarter planet, let’s start by building smarter cities” – CityForward.org“Universities are major employers in cities and key to urban sustainability.” – Coalition of USU

“Cities learning from cities learning from cities.” – Fundacion Metropoli“The future is already here… It is just not evenly distributed.” – Gibson

“The best way to predict the future is to create it/invent it.” – Moliere/Kay“Real-world problems may not/refuse to respect discipline boundaries.” – Popper/Spohrer

“Today’s problems may come from yesterday’s solutions.” – Senge“History is a race between education and catastrophe.” – H.G. Wells

“The future is born in universities.” – Kurilov“Think global, act local.” – Geddes


A Science of Smarter Service Systems

Computational System

Smarter TechnologyRequires investment roadmap

Service Systems: Stakeholders & Resources

1. Individuals (People) 2. Infrastructure (Technology)3. Shared Information (QoL Decision-Making)4. Societal Institutions (Acad., Industry, Gov.)

connected by win-win value propositions

Smarter Buildings, Universities, CitiesRequires investment roadmap


Laws of Service? Computational power doubles at a predictable rate. Are there analogous capability-doubling laws that apply

in services? Suppose that traces of human activity in particular

service systems double at some rate, and that these human activity data lead to specific opportunities for improved or increased service productivity or quality.

Consider Amazon.com: The quality of recommendations depends on accurate statistics – the more purchases made, the better the statistics for recommendations.

Three improvement “laws” that might be applicable in services:

– The more an activity is performed (time period doubling, demand doubling), the more opportunities to improve

– The better an activity can be measured (sensor deployment doubling, sensor precision doubling, relevant measurement variables doubling) and modeled, the more opportunities to improve.

– The more activities that depend on a common sub-step or process (doubling potential demand points), the more likely investment can be raised to improve the sub-step.


IBM Centennial: Icon of Progress


What is service science? A service system? The ABC’s?

Economics & Law

Design/ Cognitive Science Systems

Engineering

OperationsComputer Science/

Artificial Intelligence

Marketing

“a service system is ahuman-made system to improve provider-customer interactionsand value-cocreation outcomes,

by dynamically configuring resourceaccess via value propositions,

most often studied by many disciplines,one piece at a time.”

“service science isthe transdisciplinary study of

service systems &value-cocreation”

The ABC’s:The provider (A)

and a customer (B)transform a target (C)


Growth of Service in National Economies

Daryl Pereira/Sunnyvale/IBM@IBMUS,

42%6433 3 1.4Germany

37%261163 2.1Bangladesh

19%201070 1.6Nigeria

45%6728 5 2.2Japan

64%692110 2.4Russia

61%661420 3.0Brazil

34%391645 3.5Indonesia

23%7623 1 5.1U.S.

35%23176014.4India

142%29224925.7China

40yr ServiceGrowth

S%

G%

A %

Labor% WW

Nation

World’s Large Labor ForcesA = Agriculture, G = Goods, S = Service

20102010

NationMaster.com, International Labor OrganizationNote: Pakistan, Vietnam, and Mexico now larger LF than Germany

US shift to service jobs

(A) Agriculture:Value from harvesting nature

(G) Goods:Value from making products

(S) Service:Value from

IT augmented workers in smarter systemsthat create benefits for customers

and sustainably improve quality of life.


Growth of Service Revenue at IBM

SOFTWARE

SYSTEMS(AND FINANCING)

SERVICES

2010 Pretax Income Mix Revenue Growth by Segment

Services

Software

Systems

44%

17%

39%

IBM Annual Reports

What do IBM Service Professionals Do? Run IT & enterprise systems for customers,help Transform customer processes to best practices, and Innovate with customers.

© 2011 IBM Corporation

IBM University Programs worldwide, accelerating regional development (IBM Upward)

StakeholderPriorities

Education

Research

Business

Government

StakeholderPriorities

Education

Research

Business

Government

Service Systems

Customer-provider interactions that enable value cocreation

Dynamic configurations of resources: people, technologies, organisations and information

Increasing scale, complexity and connectedness of service systems

B2B, B2C, C2C, B2G, G2C, G2G service networks

Service Systems

Customer-provider interactions that enable value cocreation

Dynamic configurations of resources: people, technologies, organisations and information

Increasing scale, complexity and connectedness of service systems

B2B, B2C, C2C, B2G, G2C, G2G service networks

Service Science

To discover the underlying principles of complex service systems

Systematically create, scale and improve systems

Foundations laid by existingdisciplines

Progress in academic studies and practical tools

Gaps in knowledge and skills

Service Science

To discover the underlying principles of complex service systems

Systematically create, scale and improve systems

Foundations laid by existingdisciplines

Progress in academic studies and practical tools

Gaps in knowledge and skills

Develop programmes & qualifications

Develop programmes & qualifications

Service Innovation

Growth in service GDP and jobs

Service quality & productivity

Environmental friendly & sustainable

Urbanisation &aging population

Globalisation & technology drivers

Opportunities for businesses, governments and individuals

Service Innovation

Growth in service GDP and jobs

Service quality & productivity

Environmental friendly & sustainable

Urbanisation &aging population

Globalisation & technology drivers

Opportunities for businesses, governments and individuals

Skills& Mindset

Skills& Mindset

Knowledge& Tools

Knowledge& Tools

Employment& Collaboration

Employment& Collaboration

Policies & Investment

Policies & Investment

Develop and improve service innovation roadmaps, leading to a doubling of investment in service education and research by 2015

Develop and improve service innovation roadmaps, leading to a doubling of investment in service education and research by 2015

Encourage an interdisciplinary approach

Encourage an interdisciplinary approach

The white paper offers a starting point to -

The white paper offers a starting point to -

Priorities: Succeeding through Service Innovation - A Framework for Progress(http://www.ifm.eng.cam.ac.uk/ssme/)

Source: Workshop and Global Survey of Service Research Leaders (IfM & IBM 2008)

Glossary of definitions, history and outlook of service research, global trends, and ongoing debate

1. Emerging demand 2. Define the domain 3. Vision and gaps 4. Bridge the gaps 5. Call for actions

http://www.ifm.eng.cam.ac.uk/ssme/


Priorities: Research Priorities: Research Framework Framework

for the Science of Servicefor the Science of ServicePervasive Force: Leveraging Technology to Advance Service

Strategy Priorities

Execution Priorities

Fostering ServiceInfusion and Growth

Improving Well-Being through

Transformative Service

Creating and Maintaining a Service Culture

Stimulating Service Innovation

Enhancing Service Design

Optimizing Service Networks and Value Chains

Effectively Branding and Selling Services

Enhancing the Service Experience through

Cocreation

Measuring andOptimizing the Value of

Service

Development Priorities

Source: Global Survey of Service Research Leaders (Ostrom et al 2010)


Systems-Disciplines Matrix: Visualizing the Scope of Service Science

Disciplines– Stakeholder-focus

• E.g., Customer = marketing

– Resource-focus

• E.g., Technology = engineering

– Change-focus

• E.g., Future = design

– Value-focus

• E.g., Innovation = entrepreneurship

Stakeholders

Resources

Change

Value

Flow

s Hum

an D

evelopment

Governanc

e Governanc

e

Systems– Flows

• E.g., Transportation– Human Development

• E.g., Health– Governance

• E.g., City-level-security


Systems-Discipline Matrix: More DetailSystems that focus on flows of things Systems that governSystems that support people’s activities

transportation & supply chain water &

waste

food &products

energy & electricity

building & construction

healthcare& family

retail &hospitality banking

& finance

ICT &cloud

education &work

citysecure

statescale

nationlaws

social sciences

behavioral sciences

management sciences

political sciences

learning sciences

cognitive sciences

system sciences

information sciences

organization sciences

decision sciences

run professions

transform professions

innovate professions

e.g., econ & law

e.g., marketing

e.g., operations

e.g., public policy

e.g., game theory and strategy

e.g., psychology

e.g., industrial eng.

e.g., computer sci

e.g., knowledge mgmt

e.g., stats & design

e.g., knowledge worker

e.g., consultant

e.g., entrepreneur

stake

holders Customer

Provider

Authority

Competitors

resources

People

Technology

Information

Organizations

change History

(Data Analytics)

Future(Roadmap)

value

Run

Transform(Copy)

Innovate(Invent)

Starting Point 1: Observe the Stakeholders (As-Is)

Starting Point 2: Observe their Resource Access (As-Is)

Change Potential: Think It! (Has-Been & Might-Become & To-Be)

Value Realization: Do It Together! (New As-Is)

disciplines

systems


How are advanced technologies changing the mix of jobs?

-10

-5

0

5

10

15

1969 1974 1979 1984 1989 1994 1999

Levy, F, & Murnane, R. J. (2004). The New Division of Labor: How Computers Are Creating the Next Job Market. Princeton University Press.

Expert Thinking

Complex Communication

Routine Manual

Non-routine Manual

Routine Cognitive


Interactions are Key

Johnson, B., Manyika, J., & Yee, L. (2005). The next revolution in interactions. McKinsey Quarterly, 4, 20-33.

As more 21st century companies come to specialize in core activities and outsource the rest, they have greater need for workers who can interact with other companies, their customers, and their suppliers.

Raising the productivity of employees whose jobs can’t be automated is the next great performance challenge – and the stakes are high.

Companies that get that right will build complex talent-based competitive advantages that competitors won’t be able to duplicate easily – if at all.


Where are the opportunities? Everywhere!

53

Time

ECOLOGY

14BBig Bang

(NaturalWorld)

10KCities

(Human-MadeWorld)

sun (energy)

writing(symbols and scribes,

stored memoryand knowledge)

earth(molecules &

stored energy)

written laws(governance and

stored 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)

60

transistor(routine

cognitive work)

Where is the “Real Science” - mysteries to explain?In the many sciences that study the natural and human-made worlds…

Unraveling the mystery of evolving hierarchical-complexity in new populations…To discover the world’s architectures and mechanisms for computing non-zero-sum

Entity Architectures (ЄN) of nested, networked Holistic-Product-Service-Systems (HPSS)


2011 Priorities

PRIORITY AREA

Rese

arch

Rea

din

ess

Recru

iting

Reve

nu

e

Reg

ion

s

Resp

on

sibility

Smarter Cities and Service Innovation --INTERNET OF THINGS (Instrumented, Interconnected, Intelligent)- LIVING LABS (Triple Helix Innovations, Smarter Buildings, Asset Management, CityForward.org)- QUALITY-OF-LIFE (Holistic Modeling (CityOne), STEM Education Pipeline, Jobs & Entrepreneurship)

Cloud Computing & Analytics- BIG DATA (High Performance Computing, Grand Challenges, Boost University Rankings)- SHARED SERVICE (IBM Cloud Academy, IBM Academic Cloud, VCL)- DEEP-QA (Analytics Skills, Watson technology, Massive Analytics, Stream Computing)

Growth Markets- REGIONAL INNOVATION ECOSYSTEMS (Smarter City Challenge, Universities as Living Labs)- TANDEM AWARDS (connect developed & emerging Twin Towns & Sister Cities to Boost Quality)- ACCELERATING INNOVATION (Bi-Directional Learning’ To Be The Best Learn From The Rest)

IBM on Campus-- ON CAMPUS IBMERS (Checklist for University Relationship Maturity Audit)-- IBM CENTERS (CAS, IIE, University Delivery Centers, Research Collaboratories, etc.)-- ALIGNMENT (IBM Cloud Academy, City Shared Service, Smarter City Challenge, etc.)

Events & Ecosystem Alignment- BIG EVENTS (Centennial, Watson, etc.)- EXTERNAL STAKEHOLDERS (Professional Associations, National Academies, Science Foundation)- INTERNAL STAKEHOLDERS (S&D, GBS, GTS, STG, SWG, HR, CC&CA, IDR, VC, etc.)

Awards Programs- CLASSICS: Shared University Research, Open Collaborative Research, Faculty, PhD Fellowships- SPECIALS: Special Award Programs, Named Awards, Smarter Planet Curriculum Awards- LEVERAGE: Leverage IBM CCC&A with government, foundation, and other external award programs

55 © 2011 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)55

Vision for the Educational Continuum: Individuals & Institutions Learning

Any Device Learning

TECHNOLOGY IMMERSION

PERSONAL LEARNING PATHS

Student-Centered Processes

KNOWLEDGE SKILLS

Learning Communities

GLOBAL INTEGRATION

Services Specialization

ECONOMIC ALIGNMENT

Systemic View of Education

Intelligent• Aligned Data• Outcomes Insight

Instrumented• Student-centric• Integrated Assessment

Interconnected• Shared Services• Interoperable Processes

ContinuingEducation

HigherEducation

SecondarySchool

PrimarySchool

WorkforceSkills

Individuals Learning Continuum TheEducationalContinuum

Institutio

ns Learn

ing Contin

uum

EconomicSustainability

http://www-935.ibm.com/services/us/gbs/bus/html/education-for-a-smarter-planet.html


A. Flow of things1. Transportation: Traffic congestion; accidents and injury

2. Water: Access to clean water; waste disposal costs

3. Food: Safety of food supply; toxins in toys, products, etc.

4. Energy: Energy shortage, pollution

5. Information: Equitable access to info and comm resourcesB. Human activity & development

6. Buildings: Inefficient buildings, environmental stress (noise, etc.)

7. Retail: Access to recreational resources

8. Banking: Boom and bust business cycles, investment bubbles

9. Healthcare: Pandemic threats; cost of healthcare

10. Education: High school drop out rate; cost of educationC. Governing

11. Cities: Security and tax burden

12. States: Infrastructure maintenance and tax burden

13. Nations: Justice system overburdened and tax burden

Complex Buildings: Modern Cities

Example: Singapore


Understanding the Human-Made World

See Paul Romer’s Charter Cities Video: http://www.ted.com/talks/paul_romer.html

Also see: Symbolic Species, DeaconCompany of Strangers, SeabrightSciences of the Artificial, Simon


Fun: CityOne Game to Learn “CityInvesting”Serious Game to teach problem solving for real issues in key industries, helping companies to learn how to work smarter. Energy, Water, Banking, Retail

http://www.ibm.com/cityone


World Population & Service System Scaling


What is Service?

Spohrer, J. & Maglio, P. P. (2010). Toward a science of service systems: Value and symbols. In P. P. Maglio, C. A. Kieliszewski & J. C. Spohrer (Eds.), Handbook of Service Science. New York: Springer.


Service Science: Conceptual Framework

Resources: Individuals, Institutions, Infrastructure, Information Stakeholders: Customers, Providers, Authorities, Competitors Measures: Quality, Productivity, Compliance, Sustainable Innovation Access Rights: Own, Lease, Shared, Privileged

Ecology(Populations & Diversity)

Entities(Service Systems, both Individuals & Institutions)

Interactions(Service Networks,

link, nest, merge, divide)

Outcomes(Value Changes, both

beneficial and non-beneficial)

Value Proposition (Offers & Reconfigurations/

Incentives, Penalties & Risks)

Governance Mechanism (Rules & Constraints/

Incentives, Penalties & Risks)

Access Rights(Relationships of Entities)

Measures(Rankings of Entities)

Resources(Competences, Roles in Processes,

Specialized, Integrated/Holistic)

Stakeholders(Processes of Valuing,

Perspectives, Engagement)

Identity(Aspirations & Lifecycle/

History)

Reputation(Opportunities & Variety/

History)

prefer sustainable non-zero-sum

outcomes,i.e., win-win

win-win

lose-lose win-lose

lose-win

Spohrer, JC (2011) On looking into Vargo and Lusch's concept of generic actors in markets, or“It's all B2B …and beyond!” Industrial Marketing Management, 40(2), 199–201.


Service system entities configure four types of resources

First foundational premise of service science:

– Service system entities dynamically configurefour types of resources

– Resources are the building blocks of entity architectures

Named resources are:– Physical or – Not-Physical– Physicist resolve disputes

Named resources have:– Rights or– No Rights– Judges resolve disputes

Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ..

Physical

Not-Physical

Rights No-Rights

2. Technology/EnvironmentInfrastructure

4. SharedInformation/

SymbolicKnowledge

1. People/Individuals

3. Organizations/Institutions

Formal service systems can contract to configure resources/apply competenceInformal service systems can promise to configure resources/apply competence

Trends & Countertrends (Balance Chaos & Order):(Promise) Informal <> Formal (Contract)

(Relationships & Attention) Social <> Economic (Money & Capacity)(Power) Political <> Legal (Rules)

(Evolved) Natural <> Artificial (Designed)(Creativity) Cognitive Labor <> Information Technology (Routine)

(Dance) Physical Labor <> Mechanical Technology (Routine)(Relationships) Social Labor <> Transaction Processing (Routine)

(Atoms) Transportation <> Communication (Bits)(Tacit) Qualitative <> Quantitative (Explicit)

(Secret) Private <> Public (Shared)(Anxiety-Risk) Challenge <> Routine (Boredom-Certainty)

(Mystery) Unknown <> Known (Justified True Belief)


Service system entities calculate value from multiple stakeholder perspectives

Second foundational premise of service science

– Service system entities calculate value from multiple stakeholder perspectives

– Value propositions are the building blocks of service networks

A value propositions can be viewed as a request from one service system to another to run an algorithm (the value proposition) from the perspectives of multiple stakeholders according to culturally determined value principles.

The four primary stakeholder perspectives are: customer, provider, authority, and competitor

– Citizens: special customers– Entrepreneurs: special providers– Parents: special authority– Criminals: special competitors

Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. .

Model of competitor: Does it put us ahead? Can we stay ahead? Does it differentiate us from the competition?

Will we?(invest tomake it so)

StrategicSustainable Innovation(Marketshare)

4.Competitor(Substitute)

Model of authority: Is it legal? Does it compromise our integrity in any way? Does it create a moral hazard?

May we?(offer anddeliver it)

RegulatedCompliance(Taxes andFines, Quality of Life)

3.Authority

Model of self: Does it play to our strengths? Can we deliver it profitably to customers? Can we continue to improve?

Can we?(deliver it)

CostPlus

Productivity(Profit, Mission, Continuous Improvement, Sustainability)

2.Provider

Model of customer: Do customers want it? Is there a market? How large? Growth rate?

Should we?(offer it)

ValueBased

Quality(Revenue)

1.Customer

ValuePropositionReasoning

BasicQuestions

PricingDecision

MeasureImpacted

StakeholderPerspective(the players)

Value propositions coordinate & motivate resource access


Service system entities reconfigure access rights to resources by mutually agreed to value propositions

Third foundational premise of service science

– Service system entities reconfigure access rights to resources by mutually agreed to value propositions

– Access rights are the building blocks of the service ecology (culture and information)

Access rights– Access to resources that are

owned outright (i.e., property)– Access to resource that are

leased/contracted for (i.e., rental car, home ownership via mortgage, insurance policies, etc.)

– Shared access (i.e., roads, web information, air, etc.)

– Privileged access (i.e., personal thoughts, inalienable kinship relationships, etc.)

service = value-cocreationB2BB2CB2GG2CG2BG2GC2CC2BC2G***

provider resourcesOwned OutrightLeased/ContractShared Access

Privileged Access

customer resourcesOwned OutrightLeased/ContractShared Access

Privileged Access

OO

SA

PA

LC

OO

LC

SA

PA

S AP C

Competitor Provider Customer Authority

value-proposition change-experience dynamic-configurations

(substitute)

time

Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ..


Service system entities interact to create ten types of outcomes

Four possible outcomes from a two player game

ISPAR generalizes to ten possible outcomes

– win-win: 1,2,3– lose-lose: 5,6, 7, maybe 4,8,10– lose-win: 9, maybe 8, 10– win-lose: maybe 4

lose-win(coercion)

win-win(value-cocreation)

lose-lose(co-destruction)

win-lose(loss-lead)

Win

L

ose

Pro

vide

r

Lose WinCustomer

ISPAR descriptive model

Maglio PP, SL Vargo, N Caswell, J Spohrer: (2009) The service system is the basic abstraction of service science. Inf. Syst. E-Business Management 7(4): 395-406 (2009)


Service system entities learn to systematically exploit technology:Technology can perform routine manual, cognitive, transactional work

L

Learning Systems(“Choice & Change”)

Exploitation(James March)

Exploration(James March)

Run/Practice-Reduce(IBM)

Transform/Follow(IBM)

Innovate/Lead(IBM)

Operations Costs

Maintenance Costs

Incidence Planning & Response Costs (Insure)

Incremental

Radical

Super-Radical

Internal

External

Interactions

“To bethe best,

learn fromthe rest”

“Doublemonetize,

internal winand ‘sell’ to

external”

“Try tooperateinside

thecomfortzone”

March, J.G. (1991) Exploration and exploitation in organizational learning. Organizational Science. 2(1).71-87.Sanford, L.S. (2006) Let go to grow: Escaping the commodity trap. Prentice Hall. New York, NY.


Service system entities are physical-symbol systems

Service is value cocreation.

Service system entities reason about value.

Value cocreation is a kind of joint activity.

Joint activity depends on communication and grounding.

Reasoning about value and communication are (often) effective symbolic processes.

Newell, A (1980) Physical symbol systems, Cognitive Science, 4, 135-183.

Newell, A & HA Simon(1976). Computer science as empirical inquiry: symbols and search. Communications of the ACM, 19, 113-126.


Summary

Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. .

Physical

Not-Physical

Rights No-Rights

2. Technology/Infrastructure

4.. SharedInformation



1. Dynamically configure resources (4 I’s)

Model of competitor: Does it put us ahead?

Will we?StrategicSustainable Innovation

4.Competitor/Substitutes

Model of authority: Is it legal?

May we?RegulatedCompliance3.Authority

Model of self: Does it play to our strengths?

Can we?CostPlus

Productivity2.Provider

Model of customer: Do customers want it?

Should we?Value Based

Quality1.Customer

ReasoningQuestionsPricingMeasureImpacted

StakeholderPerspective

2. Value from stakeholder perspectives

S AP C

3. Reconfigure access rights

4. Ten types of outcomes (ISPAR)

5. Exploit information & technology

6. Physical-Symbol Systems


Learning MoreAbout Service Systems…

Fitzsimmons & Fitzsimmons– Graduate Students– Schools of Engineering & Businesses

Teboul– Undergraduates– Schools of Business & Social Sciences– Busy execs (4 hour read)

Ricketts– Practitioners– Manufacturers In Transition

And 200 other books…– Zeithaml, Bitner, Gremler; Gronross, Chase, Jacobs,

Aquilano; Davis, Heineke; Heskett, Sasser, Schlesingher; Sampson; Lovelock, Wirtz, Chew; Alter; Baldwin, Clark; Beinhocker; Berry; Bryson, Daniels, Warf; Checkland, Holwell; Cooper,Edgett; Hopp, Spearman; Womack, Jones; Johnston; Heizer, Render; Milgrom, Roberts; Norman; Pine, Gilmore; Sterman; Weinberg; Woods, Degramo; Wooldridge; Wright; etc.

URL: http://www.cob.sjsu.edu/ssme/refmenu.asp

Reaching the Goal: How Managers Improve

a Services Business Using Goldratt’s

Theory of ConstraintsBy John Ricketts, IBM

Service Management:Operations, Strategy,

and Information Technology

By Fitzsimmons and Fitzsimmons, UTexas

Service Is Front Stage:Positioning services for

value advantageBy James Teboul, INSEAD


So what is service science?

Service is value-cocreation, that is, useful changes that result from communication, planning, or other purposeful interactions between distinct entities.

A service system is a collection of entities and interactions that cocreate value, that is, a set of distinct configurations of resources (including people, organizations, shared information, and technology) that are better off working together than working alone.

Service Science aims to create a body of knowledge that describes, explains, predicts, and improves value-cocreation between entities as they interact, that is, relying on methods and standards used by a community to account for observable phenomenon with conceptual frameworks, theories, models, and laws that can be empirically tested.

So the object of study value-cocreation, the basic abstraction is the service system, and the ultimate goal is develop methods and theories that can be used to explain and improve value-cocreation in service systems.


Service Systems Thinking: ABC’s

A. Service Provider

• Individual• Institution• Public or Private

A. Service Provider


C. Service Target: The reality to be transformed or operated on by A, for the sake of B

• Individuals or people, dimensions of • Institutions or business and societal organizations,

organizational (role configuration) dimensions of• Infrastructure/Product/Technology/Environment,

physical dimensions of• Information or Knowledge, symbolic dimensions

C. Service Target: The reality to be transformed or operated on by A, for the sake of B

• Individuals or people, dimensions of • Institutions or business and societal organizations,

organizational (role configuration) dimensions of• Infrastructure/Product/Technology/Environment,

physical dimensions of• Information or Knowledge, symbolic dimensions

B. Service Customer


B. Service Customer


Forms ofOwnership Relationship

(B on C)

Forms ofService Relationship(A & B co-create value)

Forms ofResponsibility Relationship

(A on C)

Forms ofService Interventions

(A on C, B on C)

Spohrer, J., Maglio, P. P., Bailey, J. & Gruhl, D. (2007). Steps toward a science of service systems. Computer, 40, 71-77.From… Gadrey (2002), Pine & Gilmore (1998), Hill (1977)

Vargo, S. L. & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68, 1 – 17.

“Service is the application ofcompetence for the benefitof another entity.”

Example Provider: College (A)Example Target: Student (C)Discuss: Who is the Customer (B)?- Student? They benefit…- Parents? They often pay…- Future Employers? They benefit…- Professional Associations?- Government, Society?

A B

C


Service System Dynamics: Four Key Drivers of Change

Provider: Technology (Tech) & Sustainable Value-Cocreation Models– New technology to boost productivity & capacity (innovate)

– Use technology to perform routine manual, cognitive, and transactional work

– New relationship networks: Business models and new ventures (for-profit & non-profits)

Customer: Self Service– New self-service options to lower costs & expand choice (educate)

Authority: Rules– New rules to fix problems & achieve policy goals (regulate)

– Institutional diversity and governance of resource commons (Ostrom et. al.)

Competitors: Rankings– New rankings to guide decision-making & gain “valued” customers (differentiate)

– Hint: You want to be at the top of an independently ranked list of what customers are looking for…

– Especially for “valued” customers - calculating customer lifetime value (Rust et. al.)


Example Service System Re-Design: A College Course

Problem: What if a college course had…– Input: Student quality lower

– Process: Faculty motivation lower

– Output: Industry fit lower

Solution: Tech + Self-Service– E: -20% E-learning enrollment

pre-certification

– F. +10% Faculty interest tuning

– J. +10% on-the-Job skills tuning

After a decade the course may look quite differentService systems are learning systems: productivity, quality, compliance, sustainable innovation

Maglio, P., Srinivasan, S., Kreulen, J.T., Spohrer, J. (2006), Service systems, service scientists, SSME, and innovation. Communications of the ACM, 49(7), 81-85.

Year 1: 20%

Year 2: 20%

Year 3: 20%

Year N: 20%

. . . . . . . .

E F J


Service Systems Are Complex Systems

• Types• A = Informal

• B = Formal• Dimensions

• 1. Social Systems

• 2. Technical Systems

• 3. Environmental Systems

• 4. Economic Systems

• 5. Political Systems

• 6. Learning Systems

• 7. Information Systems

• 8. Physical-Symbol Systems

A.

B.

1.2.

3.

4.5.

6.

7.

8.


What about advanced manufacturing?http://www.youtube.com/watch?v=nd5WGLWNllA


Rethinking “Product-Service Systems”

F

B

ServiceSystem Entity

Product-Service-System

B

F

SSE

B

F

SSE

B

F

SSE

B

F

SSE

B

F

SSE

B

F

SSE

B

F

SSE

B

F

SSE

B

F

SSE

B

F

SSE

B

F

F F

B B

ServiceBusiness

ProductBusiness

Front-Stage Marketing/Customer Focus

Back-Stage Operations/Provider Focus

Ba

sed

on

Le

vitt

, T

(1

97

2)

Pro

du

ctio

n-li

ne

ap

pro

ach

to

se

rvic

e.

HB

R.

e.g., IBM

e.g., Citibank

“Eve

ryb

od

y is

in s

erv

ice

...

So

me

thin

g is

wro

ng

…

Th

e in

du

stria

l wo

rld h

as

cha

ng

ed

fa

ste

r th

an

ou

r ta

xon

om

ies.

”.


Example Service Systems Innovation Framework

“The Ten Types of Innovation” by Larry Keeley, Doblin Inc.

Innovate (inside and outside) systems that create value


Most Wanted: A CAD for Service System DesignCBM: Component Business Model

WBM and RUP: Work Practices & Processes

SOA: Technical Service-Oriented Architecture

Key Performance Indicators (KPIs)IBM IBV: Component Business ModelsIEEE Computer, Jan 2007


Ultimately, a Service Ecology Simulation Tool is Needed

2000 2010 2020 2030

Log Entities

6

9

12

15

Projected

Simulation Capability Earth Simulator

Universe Simulation Brain Simulation

Heart Simulation

CBM-based Industry Simulations - 2013?

Every decade both HPC and PC platforms increase complex simulation capabilities by 1000x.- HPC: (2000 106), (2010 109), (2020 1012), (2030 1015) …- PC: (2000 103), (2010 106), (2020 109), (2030 1012) …


A Game of Life: Essentials

Game = board with squares & rules– Infrastructure both Environmental and Technological

• PS (Physical Systems - Environment)– Natural Endowment (hidden & observable information)

• PSS (Physical Symbol Systems – Environment & Technology)– Biological PSS (observable information – DNA, RNA, proteins, etc.)– Technological PSS (observable information – states of system, bits, etc.)

Life = multiple generations of entities– Entities = SSE (Service System Entities)

• Individuals with Competencies & Life-Spans– Competencies (vary with age)– Life-Spans (vary with stage)

• Institutions with Roles & Rules– Roles (Competency-Levels and Pay-Levels)– Rules (Compliance-Levels and Tax-Levels)

Physical

Not-Physical

Rights No-Rights

2. Technology/EnvironmentalInfrastructure

4. SharedInformation



1. Dynamically configure resources (4 I’s)


Life = Multiple Generations of Entities (200 years = 10 generations x 20 years)Pedagogy: Ten Social-Technological-Economic-Environmental-Political (STEEP) StagesThought Experiment: Binary-Board-Space (Rule: Toggles Each Generation)

1. Hunter-Gatherer Knowledge-Value Economy 1- 2K population (20 people/sq mile * 100 sq miles)

2. Transition Hunter-Gatherer Knowledge-Value Economy 2- 4K population (40 people/sq mile * 100 sq miles)

3. Agricultural Knowledge-Value Economy 1- 8K population (80 people/sq mile * 100 sq miles)

4. Transition Agricultural Knowledge-Value Economy 2- 16K population (160 people/sq mile * 100 sq miles)

5. Manufacturing Knowledge-Value Economy 1- 32K population (320 people/sq mile * 100 sq miles)

6. Transition Manufacturing Knowledge-Value Economy 2- 64K population (640 people/sq mile * 100 sq miles)

7. Service-Information Knowledge-Value Economy 1- 128K population (1,280 people/sq mile * 100 sq miles)

8. Transition Service-Information Knowledge-Value Economy 2- 256K population (2,560 people/sq mile * 100 sq miles)

9. Sustainable-Innovation Knowledge-Value Economy 1- 512K population (5,120 people/sq mile * 100 sq miles)

10.Transition Sustainable-Innovation Knowledge-Value Economy 2- 1024K population (10,240 people/sq mile * 100 sq miles)

11. And beyond!

10 miles

In Use

Recycle

Rule:Toggles EachGeneration


Game = Board with Squares & Rules Example: Possible STEEP Stages 9 & 10 (infrastructure, sustainable-innovation cities)

Imagine nested holistic product-service-systems entities…– 10 Continents/planet

– 10 Nations/continent

– 10 States/nation

– 10 Cities/state

– 4 Sectors/city (interconnect to others)

– 11 Systems/sector

Rules: Board-space toggles each generation– 20 years/generation

– New infrastructure/generation

World: Further Pedagogical Purposes– “World Simulator” benchmarking

– Search to accelerate learning • 10,000 city experiments/generation• Low skill/raw materials > Hi-talent/tech

– Each generation new outcomes• Talents (skills & jobs)• Technologies (recycle & rebuild)• Investments (script & performance)

Occupied(In Use)

Recycling(De-construction &

Re-construction)

waterfood/products

energyICT

R&H/M&E/C&Sfinancehealth

educationgovernance

transportation

buildings/family

Sector 1city

interconnect

11 Systems

Sector 2state

interconnect

Sector 3nation

interconnect

Sector 4continent

interconnect

Toggle each generation – 20 year

cycle


Entities = Life-Cycle Script Example: Possible STEEP Stages 9 & 10 (individuals, multiple generations of entities)

Children – Age 0-20– (Local & Global) Grow, Learn, & Have Fun

Parents – Age 20-40 (offspring 2)– (Next Local) Reproduce, Raise Children, & Build New “City” SET Stage

Grand-Parents – Age 40-60 (offspring 4)– (Local) Run the “City” You Built & Connect with Family

Great-Grand-Parents – Age 60-80 (offspring 8)– (Global) Travel the World, Enjoy Experiences, & Share Ideas

Great-Great-Grand-Parents – Age 80-100 (offspring 16)– (Local) Return, Reconnect, and Document History & Future Plans

Great-Great-Great-Grand-Parents – Age 100-120 (offspring 32)– (Local & Global) Celebrate, Tell Stories, Depart & Explore Further Realms


The Game of Life: Service Science Framework

The Game Board: A configuration of PS (Physical Systems), with interspersed PSS (Physical Symbol Systems) and SSE (Service System Entities).

– The SSE are PSS are PS

– The infrastructure is PS + PSS

• The PS have hidden information (state)• The PSS have observable information (state and read-write)

– The SSE use information to co-create value

• World model – information about the world (The Game Board)• Self model – information about self (SSE)• The SSE have a beginning and an end (life-cycle)• The SSE judge quality-of-life across their life-cycle

– The game is each generation of SSE try to improve quality-of-life, by improving the capabilities of the infrastructure (less waste, more support for SSE activities) and the capabilities of the SSE to co-create value (an SSE activity)

– The starting game board consists of PS with a few PSS, and the goal is to see how quickly and with how little energy and with how few types and tokens of PS, the PSS can become SSE and reconstruct a high level infrastructure and high quality of life and continuously improve at a sustainable pace.

• Processes of valuing are based on the above


Priority 1: Urban Sustainability & Service Innovation Centers

A. Research: Holistic Modeling & Analytics of Service SystemsModeling and simulating cities will push state-of-the-art capabilities for planning interventions in

complex system of service systems

Includes maturity models of cities, their analytics capabilities, and city-university interactions

Provides an interdisciplinary integration point for many other university research centers that study one specialized type of system

Real-world data and advanced analytic tools are increasingly available

B. Education: STEM (Science Tech Engineering Math) Pipeline & LLLCity simulation and intervention planning tools can engage high school students and build STEM

skills of the human-made world (service systems)

Role-playing games can prepare students for real-world projects

LLL = Life Long Learning

C. Entrepreneurship: Job CreationCity modeling and intervention planning tools can engage university

students and build entrepreneurial skills

Grand challenge competitions can lead to new enterprises


Universities as Holistic Service Systems: All the systems

A. Flow of things1. Transportation: Traffic congestion; parking shortages.

2. Water: Access costs; reduce waste

3. Food: Safety; reduce waste.

4. Energy: Access costs; reduce waste

5. Information: Cost of keeping up best practices.B. Human activity & development

6. Buildings: Housing shortages; Inefficient buildings

7. Retail: Access and boundaries. Marketing.

8. Banking: Endowment growth; Cost controls

9. Healthcare: Pandemic threat. Operations.

10. Education: Cost of keeping up best practices..C. Governing

11. Cities: Town & gown relationship.

12. States: Development partnerships..

13. Nations: Compliance and alignment.


University: The Heart of Regional Innovation Ecosystems

$

Cities & Public Safety

Government Service to Individuals & Institutions

Education

Transportation

Energy

ICT (Computing & Communications)

Retail & Hospitality

Food & Products

Health

Building

Finance

University:

The Heart of

Regional Innovation

Ecosystems

School ofPublic Policy

School ofEngineering

School ofBusinessMngmnt

School ofMedicine

School ofEducation

School ofArchitecture

School ofUrban

Planning

School ofHospitality

School ofInformation

School ofScience &

Arts

University:The Heart of

Regional InnovationEcosystems

Incubator& Start-Ups


Job Roles: University Research and Education

1. Model Systems

2. Connect/capture Data

3. Integrate, Analyze

4. Improve, Automate

5. Optimize, Evolve

• Water Supply

• Transportation

• Energy, Electric Grid

• Cities, Buildings

• Healthcare

• Education/Government

General

Methods

& Techniques

Specific

Technology

Run Transform Innovate

SP Service

Systems

1.Synapsense, SensorTronics

2. Infosphere Streams, ILOG, COGNOS

3.WS, Tivoli, Rational, DB2, etc.

4.BAO, Green Sigma

Specialists

Consultant

Project Manager

Sales Architect

Cross Industry

Skills

Industry Specific

Skills

Job

Roles

Systems Engineering/Analytics/BAO/SSME

University Research fuels


Job Roles: IBM Building Smarter Enterprises & A Smarter Planethttps://jobs3.netmedia1.com/cp/find.ibm.jobs/location/

1. Consultant(trusted advisor to customer)

- a value proposition to addressproblems or opportunities and

enhance value co-creationrelationships

2. Sales- a signed contract that

defines work, outcomes, solution,rewards and risks

for all parties

4. Project Manager(often with co-PM from customer side)

a detailed project plan thatbalances time, costs, skills availability,

and other resources, as well asadaptive realization of plan

3. Architect(systems engineer, IT & enterprise architect)

-An elegant solution design that satisfiesfunctional and non-functional

constraints across thesystem life-cycle

5. Specialists(systems engineer, Research, engineer,

Industry specialist, application, technician, data, analyst, professional, agent)

-a compelling working system(leading-edge prototype systems

from Research)

~10%

~10% ~5%

~5%

~45%

6. Enterprise OperationsAdministrative Services, Other, Marketing & Communications

Finance, Supply Chain, Manufacturing, Human Resources, Legal,

General Executive Management

~25%

IBM Employees1. ~10% Consultant2. ~10% Sales3. ~5% Architect4. ~5% Project Manager5. ~45% Specialists6. ~25% Enterprise Operations

Project Mix From 90-10 to 80-20:B2B – Business to BusinessB2G – Business to Government


US National Academy of Engineering Grand ChallengesA. Systems that focus on flow of things humans need

1. Transportation & Supply Chain

Restore and enhance urban infrastructure

2. Water & Waste/Climate & Green tech

Provide access to clear water

3. Food & Products

Manager nitrogen cycle

4. Energy & Electricity

Make solar energy economical

Provide energy from fusion

Develop carbon sequestration methods

5. Information & Communication Technology

Enhance virtual reality

Secure cyberspace

Reverse engineer the brain

B. Systems that focus on human activity & development6. Buildings & Construction (smart spaces)

Restore and enhance urban infrastructure

7. Retail & Hospitality/Media & Entertainment (tourism)

Enhance virtual reality

8. Banking & Finance/Business & Consulting

9. Healthcare & Family Life

Advance health informatics

Engineer better medicines

Reverse engineer the brain

10. Education & Work Life/Jobs & Entrepreneurship

Advance personalized learning

Engineer the tools of scientific discovery

C. Systems that focus on human governance11. City & Security

Restore and improve urban infrastructure

Secure cyberspace

Prevent nuclear terror

12. State/Region & Development

13. Nation & Rights


Our ambition is to reach K-12 students with Service Science & STEM: “The systems we live in, and the systems we are…”

“Imagine smarter systems, explain why better (service systems & STEM language)”STEM = Science, Technology, Engineering, and MathematicsSee NAE K-12 engineering report: http://www.nap.edu/catalog.php?record_id=12635

See Challenge-Based Learning: http://www.nmc.org/news/nmc/nmc-study-confirms-effectiveness-challenge-based-learning

Challenge-based Project to Design Improved Service Systems

– K - Transportation & Supply Chain

– 1 - Water & Waste Recycling

– 2 - Food & Products (Nano)

– 3 - Energy & Electric Grid

– 4 – Information/ICT & Cloud (Info)

– 5 - Buildings & Construction

– 6 – Retail & Hospitality/Media & Entertainment (tourism)

– 7 – Banking & Finance/Business & Consulting

– 8 – Healthcare & Family Life/Home (Bio)

– 9 – Education /Campus & Work Life/Jobs & Entrepreneurship (Cogno)

– 10 – City (Government)

– 11 – State/Region (Government)

– 12 – Nation (Government)

– Higher Ed – T-shaped depth added, cross-disciplinary project teams

– Professional Life – Adaptive T-shaped life-long-learning & projects

Systemsthat focus onGoverning

Systemsthat focus on

Human Activities andDevelopment

Systemsthat focus onFlow of things


Students for a Smarter Planet

YouTube - animated!!– http://www.youtube.com/watch?

v=P7bEyPrtFHM

and another– http://www.youtube.com/watch?v=WklJujtIip4

Tweet comments to…– @wendywolfie

Continuously Improving Product-Service Systems = Smarter Systems

– Simplify the message

– Provide advanced organizers


Proposed Guidelines

Please send feedback to Wendy Murphy

– [email protected]

Help us devise better ways to visualize scope of service science

For use with:– Students– Faculty– Practitioners– Policy-makers– Scientists & Engineers– Government officials


Corning: A Day Made of Glass (Our Homes)http://www.youtube.com/watch?v=6Cf7IL_eZ38


Complex Buildings: Luxury Hotelshttp://www.youtube.com/watch?v=Hm7MeZlS5fo


Infrastructure: Smarter Buildings Examples

SMART ISSolving building systems shortcomings with the most appropriate, effective & energy efficient approaches.

Tulane University:Connecting to existing building systems to collect metered data; incorporating advanced analytics to uncover sub optimal conditions; bringing disparate data together to drive better decision making and measurably reduce overall energy costs..

IBM Rochester, MN:Incremental energy savings of approximately 5% yearly through various improvements and programs; after the installation of IBM Intelligent Building Management, the team achieved an incremental 8% savings.

SMART ISIntegration of energy and asset management to lower operating cost.

SMART ISOptimizing energy consumption lowers operating costs and reduces carbon emissions.

Bryant University:An IT initiative to create an energy-efficient data center shifted to a partnership between IT & Facilities to construct smarter buildings. A 15% reduction in energy use and 50% reduction in floor space in the data center are helping to reduce Bryant’s carbon footprint..


Thought Experiment: People

Youth (20%)

Elderly (20%)

Prisoners (5%)

Disabled (5%)Retired (5%)

Unemployed (5%)

Workers (40%)

Workers (40%)

Public (5%)Private (35%)

For-Profit (25%)Publicly Traded (10%)Privately Held (15%)

Not-For-Profit (10%)Paid (5%)Endowed (1%)

Donations & Grants (3%)At-Home-Workers (1%)

Unpaid (5%)At-Home-Workers (5%)


Measuring Impact

SSME: IBM Icon of Progress & IBM Research Outstanding Accomplishment– Internal 10x return: CBM, IDG, SDM Pricing & Costing, BIW COBRA, SIMPLE, IoFT, Fringe, VCR

• Key was tools to model customers & IBM better• Also tools to shift routine physical, mental, interactional & identify synergistic new ventures• Alignment with Smarter Planet & Analytics (instrumented, interconnected, intelligent)• Alignment with Smarter Cities, Smarter Campus, Smarter Buildings (Holistic Service Systems)

– External: More than $1B in national investments in Service Innovation activities

– External: Increase conferences, journals, and publications

– External: Service Science SIGs in Professional Associations

– External: Course & Program Guidelines for T-shaped Professionals, 500+ institutions

– External: National Service Science Institutions, Books & Case Studies (Open Services Innovation)

Service Research, a Portfolio Approach– 1. Improve existing offerings (value propositions that can move the needle on KPI’s)

– 2. Create new offerings (for old and new customers)

– 3. Improve outcomes insourcing, outsourcing, acquisitions, divestitures (interconnect-fission-fusion)

– 4. For all three of the above, improve customer/partner capabilities (ratchet each other up)

– 5. For all four of the above, increase patents and service IP assets (some donated to open forums)

– 6. For all five of the above, increase publications and body-of-knowledge (professional associations)

100 © 2010 IBM CorporationGlobal University Programs

Who I am

Director IBM Global University Programs since 2009– Global team works with 5000 university world wide (http://www.ibm.com/university)

– Research (Awards), Readiness (Skills), Recruiting, Revenue, Responsibility

– Transform “IBM on Campus” brand awareness (“Smarter Planet/Smarter Cities”)

– Create “Urban Service System” Research Centers & U-BEEs Founding Director of IBM's first Service Research group from 2003-2009

– Almaden Research Center, San Jose, CA

– 10x ROI with four IBM outstanding and eleven accomplishment awards

– Improve existing offerings, create new, portfolio synergies, partners, patents, publications

– I know/work with service research pioneers from many academic disciplines• I advocate for Service Science, Management, Engineering, and Design (SSME+D)

– Short-term: Curriculum (T-shaped people, deep in an existing discipline)– Long-term: New transdiscipline and profession (awaiting CAD tool)

• I advocate for SRII (“one of the founding fathers”)• Co-editor of the “Handbook of Service Science” (Springer 2010)

Other background (late 90’s and before)– Founding CTO of IBM’s Venture Capital Relations group in Silicon Valley

– Apple Computer’s (Distinguished Engineer Scientist and Technologist) award (90’s)

– Ph.D. Computer Science/Artificial Intelligence from Yale University (80’s)

– B.S. in Physics from MIT (70’s)

University and industry interactions for a smarter planet 20110830 v4

Education

Transcript of University and industry interactions for a smarter planet 20110830 v4