2030 inspire students to build it better 20150113 v3

Thinking About Value

Jim Spohrer, IBMRoyal College of Art

1/13/2015 (c) 2014 IBM UP (University Programs) 1

Tuesday January 13, 2015

Todays Talks

• Service as value co-creation

– The application of knowledge for mutual benefits (outcomes) when entities interact

• Service innovations scale benefits

– Role of platforms (tech, biz, social)

• Service experience

– Expectations, Interactions, Outcomes

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

Basics

Service science is the study of service systems and value-cocreation interactions and outcomes, through the lens of a service-dominant logic (SDL) worldview

– All economic interactions are direct or indirect service interactions

– Goods are vehicles for indirect service interactions

SDL (Vargo & Lusch) defines service as…

– the application of competence (e.g., knowledge) for the benefit of another entity

– slightly more specific, easier to understand

Service science (Spohrer & Maglio) defines service as…

– value-cocreation interactions among service system entities

– slightly more general, harder to understand


Service Systems Thinking: ABC’s

A. Service Provider

• Individual

• Institution

• Public or Private

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

• Individual

• Institution

• Public or Private

Forms of

Ownership Relationship(B on C)

Forms of

Service Relationship(A & B co-create value)

Forms of

Responsibility Relationship(A on C)

Forms of

Service 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 of

competence for the benefit

of 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 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.

© 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)6

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/

Environment

Infrastructure

4. Shared

Information/

Symbolic

Knowledge

1. People/

Individuals

3. Organizations/

Institutions

Formal service systems can contract to configure resources/apply competence

Informal 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 to

make it so)

StrategicSustainable

Innovation

(Market

share)

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 and

deliver it)

RegulatedCompliance

(Taxes and

Fines, 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)

Cost

Plus

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)

Value

Based

Quality

(Revenue)1.Customer

Value

Proposition

Reasoning

Basic

Questions

Pricing

Decision

Measure

Impacted

Stakeholder

Perspective

(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-cocreationB2B

B2C

B2G

G2C

G2B

G2G

C2C

C2B

C2G

***

provider resourcesOwned Outright

Leased/Contract

Shared Access

Privileged Access

customer resourcesOwned Outright

Leased/Contract

Shared 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

Lo

se

Pro

vid

er

Lose Win

Customer

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 be

the best,

learn from

the rest”

“Double

monetize,

internal win

and ‘sell’ to

external”

“Try to

operate

inside

the

comfort

zone”

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.. Shared

Information

1. People/

Individuals

3. Organizations/

Institutions

1. Dynamically configure resources (4 I’s)

Model of competitor:

Does it put us ahead? Will we?StrategicSustainable

Innovation4.Competitor/

Substitutes

Model of authority: Is

it legal? May we?RegulatedCompliance3.Authority

Model of self: Does it

play to our strengths? Can we?Cost

Plus

Productivity2.Provider

Model of customer:

Do customers want

it?

Should we?Value

Based

Quality1.Customer

ReasoningQuestionsPricingMeasure

Impacted

Stakeholder

Perspective

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

More Textbooks: http://service-science.info/archives/1931

Reaching the Goal:

How Managers Improve

a Services Business

Using Goldratt’s

Theory of ConstraintsBy John Ricketts, IBM

Service Management:

Operations, Strategy,

and Information

TechnologyBy Fitzsimmons and

Fitzsimmons, UTexas

Service Is Front Stage:

Positioning services for

value advantageBy James Teboul, INSEAD

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

http://www.diesel-ebooks.com/cgi-bin/item/0132359472/Reaching-the-Goal-How-Managers-Improve-a-Services-Business-Using-Goldratt's-Theory-of-Constraints-eBook.html

http://www.diesel-ebooks.com/cgi-bin/item/0132359472/Reaching-the-Goal-How-Managers-Improve-a-Services-Business-Using-Goldratt's-Theory-of-Constraints-eBook.html

ISSIP.orgProfessional Development for Service Innovators

• 2015 Conferences– HICSS, Honolulu, HI, Jan 5-8– T Summit, E Lansing, MI, Mar 16-17– ICSERV,San Jose, CA July 6-8– Frontiers, San Jose, CA July 9-12– AHFE HSSE,Las Vegas, NV July 23-27


From I to T-shape and Beyond!IBMers with more depth and breadth for a Smarter Planet

1/13/2015© IBM 2013 IBM University Programs

worldwide accelerating regional development (IBM UPward)

15

Many disciplinesMany sectors

Many regions/cultures(understanding & communications)

Deep

in o

ne se

ctor

Deep

in o

ne re

gion

/cultu

re

Deep

in o

ne d

isciplin

e

Thinking About Value

Welcome to the new age ofplatform technologies and

smarter service systemsfor every sector of

business and society

nested, networks systems

18

What are the trends?

Digital ImmigrantBorn: 1988

Graduated College: 2012

Digital NativeBorn: 2012

Enters College: 2030

http://www.prlog.org/11878039-the-secrets-to-hiring-recent-college-graduates.jpg

http://www.prlog.org/11878039-the-secrets-to-hiring-recent-college-graduates.jpg


2030 Transportation: Self-driving cars

Steve Mahan:

Test “Driver”


2030 Water


2030 Manufacturing

Ryan Chin:

Urban Mobility

Baxter: Building the Future

Maker-Bot: Replicator 2


2030 Energy


2030 Buildings: Recycled to be stronger, safer, cleaner

China Broad Group:

30 Stories in 15 Days


2030 ICT


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

optimizationWorked on information

retrieval and text search

technologies

http://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html

http://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html


2030 Retail & Hospitality


2030 Finance & Business


2030 Health


2030 Education: Watch one, do one, teach one…


2030 Government

Four measures

Innovativeness

Equity

– Improve

weakest

link

Sustainability

Resiliency


Competitive Parity – Achieved.

The NFL has spent the last two decades touting its parity—the idea that any team can win on any given Sunday (or Monday or Thursday). But this year, parity has truly run wild.

… here's the wackiest thing: 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…


2030 and Beyond…. Government, Health, Education, Finance, etc.



33

34

What’s UP at IBM?

Platforms for Entrepreneurs

• Smarter Cities Intelligent Operations Center Platform• IBM Watson & Cognitive Computing Platform• IBM UP helping university startups to scale-up (growth)



35

36

Those in-the-know say, “IBM is helping to build a Smarter Planet…”

37

Smarter Planet = Smarter “Service” 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

38

Land-population-energy-carbon

Carlo Ratti:Senseable Cities



41

ISSIP.orgProfessional Development for Service Innovators

• 2015 Conferences– HICSS, Honolulu, HI, Jan 5-8– T Summit, E Lansing, MI, Mar 16-17– ICSERV,San Jose, CA July 6-8– Frontiers, San Jose, CA July 9-12– AHFE HSSE,Las Vegas, NV July 23-27


IBM University Programs

From I to T-shape and Beyond!IBMers with more depth and breadth for a Smarter Planet

1/13/2015© IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)

43



Deep

in o

ne se

ctor

Deep

in o

ne re

gion

/cultu

re

Deep

in o

ne d

isciplin

e


Systems-Disciplines Framework: Depth & BreadthSystems that focus on flows of things Systems that governSystems that support people’s activities

transportation &

supply chain water &

waste

food &

productsenergy

& electricitybuilding &

construction

healthcare

& family

retail &

hospitality banking

& finance

ICT &

cloudeducation

&work

city

securestate

scale

nation

laws

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

sta

ke

hold

ers

Customer

Provider

Authority

Competitors

reso

urc

es

People

Technology

Information

Organizations

ch

an

ge

History(Data Analytics)

Future(Roadmap)

va

lue

Run

Transform

(Copy)

Innovate

(Invent)

Observe Stakeholders (As-Is)

Observe Resource Access (As-Is)

Imagine Possibilities (Has-Been & Might-Become)

Realize Value (To-Be)

disciplines

systems

Recent Report, Funding, etc.

http://california-center-for-service-science.org/nsf-workshop/

http://www.nsf.gov/pubs/2014/nsf14610/nsf14610.htm

https://www.linkedin.com/groups/NSF-Industry-Academe-Enabling-Smart-5109582

http://web.mit.edu/mitssrc/nsf/index.html

Journals

For more see: http://service-science.info/archives/2634

Paul Maglio, Editor Mary Jo Bitner, Editor

Readings & Textbooks

See http://service-science.info/archives/2708 http://service-science.info/archives/1931


A Moore’s-like Law for Smarter Service Systems?

Computational System

Smarter Technology

Requires investment roadmap

Service Systems: Stakeholders & Resources

1. People

2. Technology

3. Shared Information

4. Organizations

connected by win-win value propositions

Smarter Buildings, Universities, Cities

Requires investment roadmap


What improves Quality-of-Life? Service System Innovations

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)

0/19/02/7/4

2/1/1

7/6/1

1/1/0

5/17/27

1/0/2

24/24/1

2/20/24

7/10/3

5/2/2

3/3/1

0/0/0

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)”

Smarter Service Systems Workshop

National Science FoundationA feature of a service system is the participation and cooperation of the customer in the service and its delivery. A service system then requires an integration of knowledge and technologies from a range of disciplines, often including engineering, computer science, social science, behavioral science, and cognitive science, paired with market knowledge to increase its social benefit.

Nano-Bio-Info-Cogno

Brief History of AI

1956 – Dartmouth Conference1956 – 1981 Micro-Worlds1981 – Japanese 5th Generation1988 – Expert Systems Peak1990 – AI Winter1997 – Deep Blue1997 – 2011 Real-World2011 – Jeopardy! & SIRI2013 – Cognitive Systems Institute2014 – Watson Business Unit2015 – “Cognition as a Service”

1/13/2015 (c) IBM 201452

Vision: Augment & Scale Expertise

1/13/2015 (c) IBM 201453

Cognitive Assistants - Occupations

1/13/2015 (c) IBM 201454

Biochemist/Biochemical Engineer

1/13/2015 (c) IBM 201455

Occupations = Many Tasks

1/13/2015 (c) IBM 201456

Watson Discovery Advisor

1/13/2015 (c) IBM 201457

Simonite, T. 2014. Software Mines Science Papers to Make New Discoveries. MIT. November 25, 2014.

URL: http://m.technologyreview.com/news/520461/software-mines-science-papers-to-make-new-discoveries/

User Models

1/13/2015 (c) IBM 201458

New Era of Computing:Cognitive Technologies & Componentry

59

Natural Language– Reasoning, Logic & Planning

– Symbolic Processing

– Natural Language Processing

– Ranking of Hypotheses

– Knowledge Representations

– Domain-Specific Ontologies

– Information Storage/Retrieval

– Machine Learning, Reasoning

– Von Neumann Componentry

– OpenPOWER Systems

Pattern Recognition– Recognition, Sensing & Acting

– Pattern Processing

– Image & Speech Processing

– Ranking of Hypotheses

– Pattern Representations

– Domain-Specific Neural Nets

– Information Storage/Retrieval

– Machine Learning, Perception

– Neuromorphic Componentry

– TrueNorth & Corelets Systems

AI for IA:

Intelligence

Augmentation

Cognitive Systems

(“Cogs”) that boost

learning,

discovery,

engagement,

transformation, and

long-range planning.

Cognition as a Service

1/13/2015 (c) IBM 201459

Watson Platform on BlueMix

1/13/2015 (c) IBM 201460

61

Cognitive Systems Institute

Engage with Universities on

Research, including Watson

Platform Next (“WatsNext?”)

Build a pipeline of university

skills by working with Faculty

on courses and curricula

Actively recruit best students

with skills that align to our

business needs

61


Academic Industry PartnershipsResearch, Readiness, Recruiting, Revenue, Responsibility, Regions

Jim Spohrer, DirectorIBM University Programs (IBM UP)

http://www.ibm.com/universityNovember 20, 2014


62

http://www.ibm.com/university

Holistic Service Systems (HSS)



63

http://www.service-science.info/archives/1056

Nation

State/Province

City/Region

University

College

K-12

Cultural &

Conference

Hotels

Hospital

Medical

Research

Worker(professional)

Family(household)

For-profits:Business Entrepreneurship

Non-profitsSocial Entrepreneurship

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). ”

University Four Missions1. Learning2. Discovery3. Engagement4. Convergence

Universities Matter #1



64

Japan

ChinaGermany

France

United KingdomItaly

Russia SpainBrazil

CanadaIndia

Mexico AustraliaSouth KoreaNetherlandsTurkey

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

lob

al G

DP

% top 500 universities

Nation’s % WW GDP and % Top 500 Universities (2009 Data)




65

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




66

“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.”

IBM University Programs 6 R’s• Research (Collaborate)

• Readiness (Skills)

• Recruiting (Jobs)

• Revenue (Solutions)

• Responsibility (Volunteers)

• Regions (Smarter Cities, Startups & Workforce)


67

WORKFORCE

PRODUCTS

SUPPLY CHAIN

COMMUNICATIONS

TRANSPORTATION BUILDINGS

Partnering for Skills

Marisa Viveros,VP Cybersecurity

Innovation

Dianne Fodell,Program ExecSkills for 21st C

Nanci Knight,AcademicInitiatives(Western Region)

T-Shaped People:Next Generation Adaptive Innovators

for a Smarter Planet



Deep

in o

ne se

ctor

Deep

in o

ne re

gion

/cultu

re

Deep

in o

ne d

isciplin

e

“No one knows everything, but a well-chosen team of T-shapes has empathy to learn anything.”


http://tsummit2014.org


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71

Educating Service InnovatorsJim Spohrer, IBM

AHFE Human Side of Service Engineering

Krakow, PolandJuly 22, 2014


This presentation with speaker notes is available for download at: http://www.slideshare.net/spohrer/ahfe-hsse-20140722-v3


Economic Shift in National Economies

Daryl Pereira/Sunnyvale/IBM@IBMUS,

42%643331.4Germany

37%2611632.1Bangladesh

19%2010701.6Nigeria

45%672852.2Japan

64%6921102.4Russia

61%6614203.0Brazil

34%3916453.5Indonesia

23%762315.1U.S.

35%23176014.4India

142%29224925.7China

40yr Service

Growth

S

%

G

%

A

%

Labor

% WW

Nation

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

2010

2010

NationMaster.com, International Labor Organization

Note: 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 systems

that 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

0

20

40

60

80

100

1982

1988

1994

1998

2004

2006

2007

2008

2009

2010

Year

Reven

ue (

$B

)

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.

Professionals Associations & T-Shapes

• ISSIP

• INFORMS

• IEEE

• ACM

• AMA (Marketing)

• AIS

• POMS

• TSIA

For more complete list of 24 see: http://service-science.info/archives/1982

http://tsummit2014.org

• Founded Jul 2012 by IBM, Cisco, HP, and several universities as an umberella association to help institutions and individuals to grow and be successful in our global service economy

• ISSIP members representing industry, research, academia, students, NGOs, and government, collaborate to promote service innovation and service innovators in research, education, practice, policy making, and professional development.

• Special Interest Groups collaborate to produce papers, workshops, webinars, reports, surveys; current SIGs:

– Research and Education, – Service Innovation Framework in Practice, – SDN,– Service UE,– IoT (currently recruiting SIG Chair)), – Other of interest to members: Cognitive Computing, Big Data and analytics. Health IT, ….

• ISSIP Ambassadors connect ISSIP to over 30 professional association and research centers globally to sponsor conferences and awards

• ISSIP-BEP Service Innovation Books Series: 7 published, 12 in the pipeline

• Grand Challenges, members collaborate to solve pressing problems in business and society

Mission: to

“promote service

innovations for our

interconnected

world”.

Please join us!

www.issip.org

http://www.issip.org

Conferences• HICSS

– January 5-8, Hawaii

• ICSERV, July– July 7-9, San Jose

• Frontiers, July– July 9-12, San Jose– Deadline Nov 20th

• AHFE HSSE, July– July 26-30, Las Vegas


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 a

human-made system to improve

provider-customer interactions

and value-cocreation outcomes,

by dynamically configuring resource

access via value propositions,

most often studied by many disciplines,

one piece at a time.”

“service science is

the transdisciplinary study of

service systems &

value-cocreation”

The ABC’s:

The provider (A)

and a customer (B)

transform a target (C)


California Human Development Report 2011:Measuring quality-of-life…. h

ttp://w

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asu

reo

fam

eric

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rg/d

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IBM University Programs On Campus IBMers


8080

Up-SkillCycle

University-Region1

University-Region2

= New Venture

= Acquisition

= High-GrowthAcquisition/New IBM BU(Growing)

= High-Productivity/Mature IBM BU(Shrinking)

= IBMer moving from

mature BU to acquisition

= IBMer moving into

On Campus IBMer role(help create graduateswith Smarter-Planet skills,help create Smarter Planetoriented new ventures;Refresh skills

= Graduates with

Smarter Planet skills

IBM


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


Thank-You! Questions?

Dr. James (“Jim”) C. Spohrer

Innovation Champion &

Director, IBM University Programs worldwide accelerating regional development (IBM UPward)

[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

What is more important than this?

• “To our children and children’s children, to whom we elders owe an explanation of the world that is understandable, realistic, forward-looking, and whole.”– Stephen Jay Kline (1922-1997)

– From the dedication of “The Conceptual Foundations of Multidisciplinary Thinking,” Stanford University Press, 1995.



Service Innovators

ISSIP = International

Society of

Service Innovation

Professionals

T-shaped Professionals

– Depth

– Breadth

Register at:

– ISSIP.org



85



86

IBM operates in 170 countries around the globe

Acquisitions contribute significantly to IBM’s growth ; ~120 acquisitions in last decade

2012 Financials

Revenue - $ 104.5B

Net Income - $ 17.6B

EPS - $ 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 refractivesurgical 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

Jim Spohrer, IBM

• Dr. James (“Jim”) C. Spohrer is IBM Innovation Champion and Director of IBM University Programs (IBM UP). Jim works to align IBM and universities globally for innovation amplification. Previously, Jim helped to found IBM’s first Service Research group, the global Service Science community, and was founding CTO of IBM’s Venture Capital Relations Group in Silicon Valley. During the 1990’s while at Apple Computer, he was awarded Apple’s Distinguished Engineer Scientist and Technology title for his work on next generation learning platforms. Jim has a PhD in Computer Science/Artificial Intelligence from Yale, and BS in Physics from MIT. His current research priorities include applying service science to study nested, networked holistic service systems, such as cities and universities. He has more than ninety publications and been awarded nine patents.


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)


Who I am (http://www.service-science.info/archives/2233)

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

– 6 R’s: Research (Awards), Readiness (Skills), Recruiting, Revenue, Responsibility, Regions

– 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 ISSIP (“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)



90

2030 inspire students to build it better 20150113 v3

Education

science of service

definition of service

service target

study of service systems

service science spohrer

modern service sytems

important concept service

interactions of entities