service science t shaped for smarter planet 20110727 v1
DESCRIPTION
keynote at IRSSM-2 in Yogyakarta, Indonesia on July 27th, 2011, Service Science: T-shaped Professionals for Building a Smarter PlanetTRANSCRIPT
© 2011 IBM Corporation
IBM University Programs World Wide (IBM UP)
Service Science: T-Shaped Professionalsto Help Build a Smarter Planet
Dr. James (“Jim”) C. [email protected] Champion and Director, IBM University Programs WorldwideIRSSM-2 at Yogyakarta, IndonesiaJuly 27, 2011
BREADTH
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2 © 2011 IBM CorporationIBM UP (University Programs) WW
Republic of Indonesia (indexmundi.com estimates)
Labor Force:116.5M Labor Force by Sector: 48.9% service, 38.3% agriculture, 12.8% industry GDP by Sector: 37.1% service, 16.5% agriculture, 46.4% industry GDP: $1.03T (PPP), $706.7B (OER); GDP Growth Rate: 6.1%
© worldatlas.com
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Questions leaders of every region (nation, state, city) ask
How to create more and better jobs for their citizens?– higher skill
– higher pay
How to shift more work activities from routine physical, mental, interactional activities to higher-skill, higher-value activities?
– innovation (inventing best-practices, often from new ventures)
– transformation (implementing best-practices)
How to invest in progress?– continuously improve infrastructure
– continuously improve talent
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
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What are the benefits of more education? Of higher skills?
…But it can be costly, American student loan debt is over $900M
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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
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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
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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)
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What is a Smarter Planet?
INSTRUMENTED
We now have the ability to measure, sense and see the exact condition of practically everything.
INTERCONNECTED
People, systems and objects can communicate
and interact with each other in entirely new
ways.
INTELLIGENT
We can respond to changes quickly and accurately, and get better results
by predicting and optimizing
for future events.
WORKFORCE
PRODUCTS
SUPPLY CHAIN
COMMUNICATIONS
TRANSPORTATION BUILDINGS
IT NETWORKS
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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
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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%
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Quality-of-Life measures improveEducation system transfers and expands body-of-knowledge
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)”
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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 isa human-made system to improve
provider-customer interactionsand value-cocreation outcomes,
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)
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Stakeholders
Resources
Change
Value
Systems-Disciplines Matrix: Schematic Overview
Systems– Flows
• E.g., Transportation– Human Development
• E.g., Health– Governance
• E.g., National-level
Disciplines– Stakeholder-focus
• E.g., Customer = marketing– Resource-focus
• E.g., Technology = engineering– Change-focus
• E.g., History = economics– Value-focus
• E.g., Innovation = entrepreneurship
Flow
s Hum
an D
evelopment
Governanc
e Governanc
e
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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: Observing the Stakeholders (As-Is)
Starting Point 2: Observing their Resources & Access (As-Is)
Change Potential: Thinking (Has-Been & Might-Become)
Value Realization: Doing (To-Be)
disciplines
systems
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Proposed Guidelines
Please send feedback to Wendy Murphy
Help us devise better ways to visualize scope of service science
For use with:– Students– Faculty– Practitioners– Policy-makers– Scientists & Engineers– Government officials
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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
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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
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The New Normal: Smarter Systems
Computational System
Building Smarter TechnologiesRequires investment roadmap
Service Systems: Stakeholders & Resources
1. People 2. Technology3. Shared Information4. Organizations
connected by win-win value propositions
Building Smarter Universities & CitiesRequires investment roadmap
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IBM operates in 170 countries around the globe
IBM has 425,000 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
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IBM Centennial: Icon of Progress
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Revisiting the questions leaders ask…
How to create more and better jobs for their citizens?– higher skill
– higher pay
How to shift more work activities from routine physical, mental, interactional activities to higher-skill, higher-value activities?
– innovation (inventing best-practices, often from new ventures)
– transformation (implementing best-practices)
How to invest in progress?– continuously improve infrastructure
– continuously improve talent
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
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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)
Individuals &Certified
Competences(Skills)
Institutions &Roles(Jobs)
Information, Quality-of-Life Demographics(Careers)
Infrastructure(Technologies Deployed)
Individuals &Certified
Competences(Skills)
Institutions &Roles(Jobs)
Information, Quality-of-Life Demographics(Careers)
Infrastructure(Technologies Deployed)
Individuals &Certified
Competences(Skills)
Institutions &Roles(Jobs)
Information, Quality-of-Life Demographics(Careers)
Infrastructure(Technologies Deployed)
Individuals &Certified
Competences(Skills)
Institutions &Roles(Jobs)
Information, Quality-of-Life Demographics(Careers)
Infrastructure(Technologies Deployed)
Individuals &Certified
Competences(Skills)
Institutions &Roles(Jobs)
Information, Quality-of-Life Demographics(Careers)
Infrastructure(Technologies Deployed)
Individuals &Certified
Competences(Skills)
Institutions &Roles(Jobs)
Information, Quality-of-Life Demographics(Careers)
Region 1 Region 2
Futur
eP
resent
Histor
y
Policies & InvestmentsRun-Transform-Innovate
Governance
Policies & InvestmentsRun-Transform-Innovate
Governance
Policies & InvestmentsRun-Transform-Innovate
Governance
Policies & InvestmentsRun-Transform-Innovate
Governance
FrameworksTheoriesModels
Sept 27th Workshop at IBM Almaden
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Understanding Service Science
Stimulus: Service Growth– The World
– IBM Response: Service Science
– Cambridge University Report
– Arizona State University Report
Focus: Understand Service Systems– Service systems thinking: The ABC’s
– Service systems dynamics: Four drivers of change
– Service systems re-design: Example
– Future: Holistic Product-Service Systems
• Agriculture as local manufacturing (robotic factories)• Manufacturing as a local recycling service• An ecology of nested, networked holistic product-service systems
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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.
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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
© 2011 IBM Corporation
IBM University Programs World Wide (IBM UP)
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 -
The Birth of Service Science: 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
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Priorities: Research Priorities: Research Framework Framework
for the Science of Service for the Science of Service (2010)(2010)Pervasive 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)
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Service Systems Thinking: ABC’s
A. Service Provider
• Individual• Institution• Public or Private
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
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
B. Service Customer
• Individual• Institution• Public or Private
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
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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.)
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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
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Future: Holistic Product-Service Systems& Regional Innovation Ecosystems http://www.service-science.info/archives/1056
Examples: Nations, States, Cities, Universities, Luxury Hotels, Cruise Ships, Households
“Whole Service” Subsystems: Transportation, Water, Food, Energy, Communications, Buildings, Retail, Finance, Health, Education, Governance, etc.
Definition: A service system that can support its primary populations, independent of all external service systems, for some period of time, longer than a month if necessary, and in some cases, indefinitely
Balance independence with interdependence, without becoming overly dependent (outsourcing limits, maximum re-cycling for sustainability)
Nation
State/Province
City/Region
HospitalMedicalResearch
UniversityCollegesK-12
LuxuryResortHotels
Family(household)
Person(professional)
For-profits
Non-profits
Start-UpsNew Ventures
~25-50% of start-ups are newIT-enabled service offerings
SaaSPaaSIaaS
http://www.thesrii.org
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Universities Are Mini-Cities: A Complex System of Systems
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
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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)
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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
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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
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Edu-Impact.Com: Growing Importance of Universities with Large, Growing Endowments
“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.”
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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
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World Population & Service System Scaling: Quality-of-Life Measures
© 2011 IBM Corporation
Smarter Buildings on a Smarter Planet
39
The need for efficiency in buildings is clear
2nd
Real estate is the 2nd largest expense on the income statement.
50%
Up to 50% of energy and water in buildings are often wasted.
2025
By 2025, buildings will be the #1 consumer of energy.
2x
Data center energy use doubling every 5 years.
© 2011 IBM Corporation
Smarter Buildings on a Smarter Planet
40
The benefits from improving building efficiency are real
18% rise in productivity
Employee productivity increased up to 18% on average.
91%occupancy
Higher buildingusage and re-up rates insmarter buildings.
40%reduction
Energy usage reduced by up to 40% and maintenance cost 10-30%.
65% of occupants
Willing to help make their workplace more environmentally responsible.
© 2011 IBM Corporation
Smarter Buildings on a Smarter Planet
41
FireFunctionality
checks,Detector service
WaterSmart Meters,
Use / Flow Sensing
HVACFans, Variable Air
Volume, Air Quality
ElevatorsMaintenance, Performance
Access/SecurityBadge in,
Cameras, IntegrationPerimeter, Doors, Floors, Occupancy
LightingOccupancy
Sensing
24/7 MonitoringCondition Monitoring, Parking Lot Utilization
EnergySmart Meters,
Demand response
How does a building operate today?
Building Systems
Community Services
Transportation, Traffic, Events
Community Services
Transportation, Traffic, Events
UtilitiesDemand Mgmt,
Cost Control
UtilitiesDemand Mgmt,
Cost Control
WeatherCurrent
Predictions
WeatherCurrent
Predictions
Emergency Services
Alerts, Actions
Emergency Services
Alerts, Actions
Commercial Potential
Advertisement
Commercial Potential
Advertisement
Building & Communications Services
Facilities Managem
ent Processes Inte
ract
ion
with
Ext
erna
lities
PortfolioEstates MgmtPortfolio
Estates Mgmt
OccupancySpace Mgmt
OccupancySpace Mgmt
Waste MgmtTrash/Water/Recycle
Waste MgmtTrash/Water/Recycle
ComplianceEnvironmental reports
ComplianceEnvironmental reports
Tenant ServicesHelp Desk
Tenant ServicesHelp Desk
Asset MgmtLifecycle
Asset MgmtLifecycle
Building ServicesMaintenance
Building ServicesMaintenance
Industry Specific Hospital, hotel, etc.
Industry Specific Hospital, hotel, etc.
Energy UsePassive/ActiveEnergy UsePassive/Active
42 © 2011 IBM CorporationIBM UP (University Programs) WW
Thank-You! Questions?
Dr. James (“Jim”) C. SpohrerDirector, IBM University Programs (IBM UP) [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
43
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)
44 © 2011 IBM CorporationIBM UP (University Programs) WW
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.
45 © 2011 IBM CorporationIBM UP (University Programs) WW
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)
46 © 2011 IBM CorporationIBM UP (University Programs) WW
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
47 © 2011 IBM CorporationIBM UP (University Programs) WW
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..
48 © 2011 IBM CorporationIBM UP (University Programs) WW
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)
49 © 2011 IBM CorporationIBM UP (University Programs) WW
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.
50 © 2011 IBM CorporationIBM UP (University Programs) WW
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.
51 © 2011 IBM CorporationIBM UP (University Programs) WW
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. People/Individuals
3. Organizations/Institutions
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
52 © 2011 IBM CorporationIBM UP (University Programs) WW
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
53 © 2011 IBM CorporationIBM UP (University Programs) WW
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.
54 © 2011 IBM CorporationIBM UP (University Programs) WW
What about advanced manufacturing?http://www.youtube.com/watch?v=nd5WGLWNllA
55 © 2011 IBM CorporationIBM UP (University Programs) WW
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.
”.
56 © 2011 IBM CorporationIBM UP (University Programs) WW
Example Service Systems Innovation Framework
“The Ten Types of Innovation” by Larry Keeley, Doblin Inc.
Innovate (inside and outside) systems that create value
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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
58 © 2011 IBM CorporationIBM UP (University Programs) WW
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) …
59 © 2011 IBM CorporationIBM UP (University Programs) WW
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. People/Individuals
3. Organizations/Institutions
1. Dynamically configure resources (4 I’s)
60 © 2011 IBM CorporationIBM UP (University Programs) WW
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
61 © 2011 IBM CorporationIBM UP (University Programs) WW
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
62 © 2011 IBM CorporationIBM UP (University Programs) WW
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
63 © 2011 IBM CorporationIBM UP (University Programs) WW
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
64 © 2011 IBM CorporationIBM UP (University Programs) WW
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
65 © 2011 IBM CorporationIBM UP (University Programs) WW
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
66 © 2011 IBM CorporationIBM UP (University Programs) WW
Where are the opportunities? Everywhere!
67 © 2011 IBM CorporationIBM UP (University Programs) WW
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
68 © 2011IBM CorporationIBM University Programs World Wide (IBM UP)
What We Do: The “6 R’s” (not to be confused with 3 R’s)
1. ResearchAwards 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. RevenuePublic-private partnerships build great universities and strengthen regions
http://www.ibm.com/services/us/gbs/bus/html/bcs_education.html
5. RegionsRegional innovation ecosystems – incubators, entrepreneurship, jobs
http://www.ibm.com/ibm/governmentalprograms/innovissue.html
6. ResponsibilityCommunity service provides access to expertise/resources
http://www.ibm.com/ibm/ibmgives/
69 © 2011IBM CorporationIBM University Programs World Wide (IBM UP)
● 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: People and Planet
Research
Recruiting Skills
People
Individuals & Disciplines
Government
Industry Academia
Planet
Institutions & Systems
Talent Infrastructure
70 © 2011 IBM CorporationIBM UP (University Programs) WW70
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
71 © 2011 IBM CorporationIBM UP (University Programs) WW
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
72 © 2011 IBM CorporationIBM UP (University Programs) WW
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
Cities as Holistic Service Systems: All the systems
Example: Singapore
73 © 2011 IBM CorporationIBM UP (University Programs) WW
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.
74 © 2011 IBM CorporationIBM UP (University Programs) WW
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
75 © 2011 IBM CorporationIBM UP (University Programs) WW
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
76 © 2011 IBM CorporationIBM UP (University Programs) WW
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
77 © 2011 IBM CorporationIBM UP (University Programs) WW
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
78 © 2011 IBM CorporationIBM UP (University Programs) WW
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)
– 2. Create new offerings
– 3. Improve insourcing, outsourcing, acquisitions, divestitures results
– 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
– 6. For all five of the above, increase publications and service system body-of-knowledge
79 © 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)
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Come visit IBM Almaden Research Center, San Jose, CA
July 2012– ISSS San Jose
– HSSE San Francisco
– SRII San Jose More Information
– Service-Science.info
– Slideshare.net/spohrer
– @JimSpohrer