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an introduction to service science that provides the basics of: service system thinking, service system dynamics, service system re-design examples, and tries to answer the "why questions" - end notes include the birth of service science, discussion of advanced manufacturing, outsourcing, sustainability, as well as ways to learn more about service science
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© 2011 IBM Corporation
IBM University Programs World Wide (IBM UP)
Introduction to Service Science
Dr. James (“Jim”) C. [email protected] Champion and Director, IBM University Programs WWTo Educational Policy ThinkersJune 29th, 2011, Washington DC
2 © 2011 IBM CorporationIBM UP (University Programs) WW
Outline
Service science– Service systems thinking: The ABC’s
– Service systems dynamics: Four drivers of change
– Service systems re-design: Some examples• A College Course• K-12 & Higher Education
– Higher Education Specialization Opportunities (Depth)– K-12 General Education Preparation (Breadth)– The Goal: Adaptive “T-shaped professionals” (ready for life-long learning)
Why? Data and trends– Why and how technology is changing jobs
– Why higher education & certification levels matter (to individuals)
– And therefore, why higher education matters (to nations)
– Why the study of service systems matters (to nations)
– Why the study of service systems matters (to businesses) End Notes
– The birth of service science
– What about advanced manufacturing, outsourcing, sustainability challenges? • Holistic-product-service-systems, regional capacity, regional innovation ecosystems
– Learning more about service systems - pointers to 200+ books & conceptual foundations
3 © 2011 IBM CorporationIBM UP (University Programs) WW
Service Systems Thinking
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
• People or Individuals, dimensions of • Business or Institutions, dimensions of • Product or Tech/Environment, physical dimensions • Information or Knowledge, symbolic dimensions
C. Service Target: The reality to be transformed or operated on by A, for the sake of B
• People or Individuals, dimensions of • Business or Institutions, dimensions of • Product or Tech/Environment, physical dimensions • 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.
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?- Parents?- Future Employers?- Professional Associations?- Government, Society?
4 © 2011 IBM CorporationIBM UP (University Programs) WW
Service System Dynamics: Four Key Drivers of Change
Provider: Technology (Tech) & Business Models (Service Systems)– New technology to boost productivity & capacity (innovate)– Use technology to perform routine manual, cognitive, and transactional work– New 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)– Calculating customer lifetime value (Rust et. al.)
5 © 2011 IBM CorporationIBM UP (University Programs) WW
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
6 © 2011 IBM CorporationIBM UP (University Programs) WW
Example: Specialization Opportunities for Higher EducationSystems 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
7 © 2011 IBM CorporationIBM UP (University Programs) WW
K-12 STEM: “The systems we live in, and the systems we are…”
“Imagine a better service system, and use STEM language to explain why it is better”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
8 © 2011 IBM CorporationIBM UP (University Programs) WW
The Goal: Adaptive T-shaped professionalsReady for Life-Long-LearningReady for T-eamwork
SSME+D = Service Science, Management, Engineering + Design
Many disciplines(understanding & communications)
Many systems(understanding & communications)
Deep in one discipline
(ana
lytic thinking & problem
solving)
Deep in one system
(analytic thinking & problem
solving)
Many multi-cultural-team service projects completed(resume: outcomes, accomplishments & awards)
BREADTH
DE
PT
H
9 © 2011 IBM CorporationIBM UP (University Programs) WW
Data: Why and how technology is changing 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
10 © 2011 IBM CorporationIBM UP (University Programs) WW
Data: Why education certification levels matter (to individuals)
…But it can be costly, American student loan debt is over $900M
11 © 2011 IBM CorporationIBM UP (University Programs) WW
Data: And therefore, why higher education matters (to nations)% 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
12 © 2011 IBM CorporationIBM UP (University Programs) WW
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
CIA Handbook, 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.
Data: Why the study of service systems matters (to nations)
13 © 2011 IBM CorporationIBM UP (University Programs) WW
Data: Why the study of service systems matters (to businesses)
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
© 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: IBM Centennial Icon of 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
16 © 2011 IBM CorporationIBM UP (University Programs) WW
What about advanced manufacturing?http://www.youtube.com/watch?v=nd5WGLWNllA
17 © 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.
”.
18 © 2011 IBM CorporationIBM UP (University Programs) WW
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
19 © 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
20 © 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
21 © 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)(Atoms) Transportation <> Communication (Bits)
(Tacit) Qualitative <> Quantitative (Explicit)(Secret) Private <> Public (Shared)
(Anxiety-Risk) Challenge <> Routine (Boredom-Certainty)(Mystery) Unknown <> Known (Justified True Belief)
22 © 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
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
23 © 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
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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
25 © 2011 IBM CorporationIBM UP (University Programs) WW
Service system entities learn to systematically exploit info & tech
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.
26 © 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.
27 © 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
4.. SharedInformation
1. People
3. Organizations
1. Dynamically configure resources
Model of competitor: Does it put us ahead?
Will we?StrategicSustainable Innovation
4.Competitor
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
28 © 2011 IBM CorporationIBM UP (University Programs) WW
Smarter = Sustainable Innovation (reduce waste, expand capabilities)
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
29
Time
ECOLOGY
14BBig Bang
(NaturalWorld)
10KCities
(Human-MadeWorld)
Sun
writing(symbols and scribes)
Earth
written laws
bacteria(uni-cell life)
sponges(multi-cell life)
money(coins)
universities
clams (neurons)trilobites (brains)
printing press (books)steam engine200M
bees (socialdivision-of-labor)
60
transistor
Where is the “Real Science” or mystery to explain?In the interdisciplinary 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-sumEntity Architectures (ЄN) of nested, networked Holistic Service Systems (HSS)
30 © 2010 IBM CorporationIBM UP (University Programs) WW
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)