Service science progress and directions 20100620

1 © 2010 IBM CorporationIBM UP (University Programs) WW

Service Science: Progress and Directions

Dr. James (“Jim”) C. SpohrerDirector, IBM University Programs (IBM UP) [email protected] Porto, PortugalFor: AMA ServSIG

June 18, 2010


Outline

Overview of IBM University Programs (IBM UP) WW– Investing in people and planet to improve talent and infrastructure

– Five R’s – Research, Readiness, Recruiting, Revenue, Responsibilities

Quality of Life: Our growing dependence on networks of interconnected service systems

– Local optimization does not equal global optimization

– Local problems can cascade into global significance

Ecology: The study of the abundance and distribution of entities in an environment, and their interactions with each other and their environment over successive generations

– Natural World

– Human-Made World

Holistic Service Systems: Cities and universities– Fundamental building blocks (resource integrators) to get right

– Beyond customer-provider dyad, toward networks of stakeholders


● Profitable growth by investing in people and planet.

● Projects that improve global talent and infrastructure.

● Working with universities to build smarter cities and improve quality of life.

IBM University Programs (IBM UP) WW

Research

Recruiting Skills

People

Talent

Government

Industry Education

Planet

Infrastructure


Five R’s Programs & Initiatives

ResearchCollaboration in areas of mutual interest & value

Shared University Research Awards (SUR) Lilian Wu, GUP

Faculty Awards Jeff Brody, GUP

Open Collaborative Research Awards (OCR) Dawn Tew, GUP

Centers for Advanced Study (CAS) Andy Rindos, SWG

World Community Grid (with CC&CA) Robin Wilner, CCCA

ReadinessBuilding the skills pipeline

Academic Initiative Program (led by SWG) Kevin Faughnan, SWG

SSME/Smarter Planet Skills for 21st Century Dianne Fodell & Wendy Murphy, GUP

LA Grid Initiative (Hispanic Focus) Juan Caraballo, GUP

Student Contests / Competitions (e.g., ACM) Innovation Centers and Developer Relations Mark Hanny, SWG

Volunteerism/Corp Citizenship (with CC&CA) Shannon Thrasher, GUP

RecruitingAcquiring top talent

PhD Fellowship Program Jeff Brody, GUP

Global Recruitment Campaign (led by HR) HR

Global University Sourcing (led by HR) HR

Extreme Blue Internship Program (led by HR) HR

Revenue & ResponsibilityValue creation, sales, and revenue generation

Partnership Executive Program (PEP) JoAnn Winson, GUP

Client Executives & Senior Location Execs S&D

Public Private Partnerships Kevin Reardon, Research

Industry-Academic IP Collaboration Dawn Tew, GUP

5 © 2010 IBM CorporationIBM University Programs (IBM UP) WW

IBM University Programs (IBM UP): 2010 Focus “5 R’s”

1. ResearchAwards that connect university and IBM researchers/professionals to work on grand challenges

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

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

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

3. RecruitingJobs on global teams working to build a smarter planet - nation by nation, system by system

http://www.ibm.com/jobs

4. RevenuePublic-private partnerships that build great universities, great cities, and improve quality of life

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

5. ResponsibilityIBM employees share their expertise, time, and resources with universities in community service

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


IBM University Programs (IBM UP): 2010 Focus “6 Priorities”

1. Smarter Cities & Service InnovationA. Holistic Modeling & Analytics, B. STEM Education Pipeline, C. Jobs & Entrepreneurship

Establish Urban Sustainability and Service Innovation Centers (start with http://cityforward.org)

2. Cloud Computing & AnalyticsIBM Cloud Academy, IBM Academic Cloud, Massive Analytics

3. Ecosystem AlignmentInternal and external coordination and collaborations (win-win relationships)

4. IBM on CampusIBM Centers for Advanced Study, IBM Innovation Centers, IBM Research Collaboratories

5. Growth MarketsEnablement, Twin Cities, Sister Cities

6. Awards ProgramsShared University Research, Open Collaborative Research, Faculty Awards, PhD Fellowships


Priority 1: Urban Sustainability & Service Innovation Centers

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

complex system of systems (holistic 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) PipelineCity simulation and intervention planning tools can engage high school students and build STEM

skills

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

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

Note: Universities are mini-cities within cities (building blocks to get right).

8 © 2010 IBM CorporationIBM UP (University Programs) WW8

Technology immersion of today’s students

Worldwide Mobile Subscribers

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Innovations in the consumer marketplace are driving rapid adoption of new technologies for communication, entertainment and learning

Over 4 billion individuals now have access to mobile technologies worldwide –

representing over 60% of the population

Social networking sites, virtual worlds,and mass collaboration technologies allow crowd sourcing to gain insights

9 © 2010 IBM CorporationIBM UP (University Programs) WW9

Vision for the Educational Continuum

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

Individual Learning Continuum TheEducationalContinuum

Educatio

n Sys

tem Contin

uum

EconomicSustainability


Learning is changing….

Formal is a small fractionInformal is dominantSignposts show wall breaking down


Changing Nature of STEM Education

STEM2D

NaturalSciences

SocialSciences

Technology(physical)

Technology(social)

Engineering Environment, Economics & Law

Mathematics Management

STEM

Science

Technology

Engineering

Mathematics

Teach as a single integrated transdiscipline(2D = 2-Design improved SP service systems)

Teach as four disciplines

Study confirms effectiveness of challenge-based learningdesigning and implementing improvements to real-world systems

(http://www.nmc.org/pdf/Challenge-Based-Learning.pdf)

“…by the end of their respective projects 80% of participating students reported that they had made a difference in their schoolsor communities by addressing their challenge.”


SSME Design Lab Virtual Summits

AnnualGlobalChallenges

– Example Transportation

– Congestion Challenge

– http://www.itsa.org/challenge/

Best IdeasCould CreateNew Businesses

Potential TelepresencePlay-offs with VCs for Advice

ProductivityProductivity

SustainableSustainableInnovationInnovation

RegulatoryRegulatoryComplianceCompliance

N a t i o n s

N a t i o n s I n d u s t

r i e s

I n d u s t

r i e s

QualityQuality

Two Half-day SSME Design Lab Network Virtual Summits:

West – August 11, 2009 – 16 Academic Leaders from 8 Universities in 6 locations

East – August 14, 2009 – 15 Academic Leaders from 7 Universities in 7 locations


Sam Palmisano, CEO IBM

“We need highly skilled people. So we say we need to help in the school systems. We’ll go in and create a services-as-a-science curriculum in Vietnam, or in Bulgaria, or in Indonesia.”

– Wall Street Journal, February 14, 2008

At IBM, we know something about systems. As must be obvious by now, I don't mean simply "computer systems." I mean the economic, logistical and societal systems by which our world operates.

– National Governors Association, July 9, 2010


Quality of life: We depend on service systems…

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) (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 & development opportunities/investments (sales tax)

13. Nations/NGOs & rights/rules/incentives/policies/laws (income tax)

(Quality of Service & Jobs & Investment Opportunities)Measure -> Quality, Productivity, Compliance, “Smarter”

“Smarter” = Sustainable Innovation (continuously reduce waste, expand capabilities)

10

19?

71

61

17

02420

102

30

2


Communication$ 3.96 Tn

Transportation$ 6.95 Tn

Leisure / Recreation / Clothing

$ 7.80 Tn

Healthcare$ 4.27 Tn

Food$ 4.89 Tn

Infrastructure$ 12.54 Tn

Govt. & Safety$ 5.21 Tn

Finance$ 4.58 Tn

Electricity$ 2.94 Tn

Education$ 1.36 Tn

Water$ 0.13 Tn

Global system-of-systems$54 Trillion

(100% of WW 2008 GDP)

Same IndustryBusiness SupportIT SystemsEnergy ResourcesMachineryMaterials Trade

Legend for system inputsNote:1. Size of bubbles represents

systems’ economic values2. Arrows represent the strength of

systems’ interaction

Source: IBV analysis based on OECD

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

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

Our planet is a complex system-of-systems

1 Tn


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

Global economic value of

System-of-systems

$54 Trillion100% of WW 2008 GDP

Inefficiencies$15 Trillion28% of WW 2008 GDP

Improvement potential

$4 Trillion7% of WW 2008 GDP

How to read the chart:

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

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

Source: IBM economists survey 2009; n= 480

System inefficiency as % of total economic value

Impr

ovem

ent

pote

ntia

l as

% o

f sy

stem

inef

ficie

ncy

Education1,360

Building & Transport Infrastructure

12,540

Healthcare4,270

Government & Safety5,210

Electricity2,940

Financial4,580

Food & Water4,890

Transportation (Goods & Passenger)

6,950

Leisure / Recreation /

Clothing7,800

Communication3,960

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

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

42%

34%

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

15%

20%

25%

30%

35%

40%

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


Service Science: Transdisciplinary Framework to Study Service SystemsSystems 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., statistics

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)

Stackholders (As-Is)

Resources (As-Is)

Change (Might-Become)

Value (To-Be)


NAE’s 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


Why 13 types of service systems? K-12 STEM and the human-made world

“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 (Bio)

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

– 10 – City (Government)

– 11 – State/Region (Government)

– 12 – Nation (Government)

– Higher Ed – T-shaped teamwork, deep & broad education

– Professional Life – T-shaped teamwork, series of projects

Systemsthat focus onGoverning

Systemsthat focus on

Human Activities andDevelopment

Systemsthat focus onFlow of things


Transportation Split: How did you get to school today?


T-Shaped Professionals: Ready for T-eamwork!

Many disciplines(understanding & communications)

Many systems(understanding & communications)

Deep in one discipline

(an

alytic th

inkin

g &

pro

ble

m so

lving

)

Deep in one system

(an

alytic th

inkin

g &

pro

ble

m so

lving

)

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

SSMED = Service Science, Management, Engineering & Design

22

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)tribolites (brains)

printing press (books)steam engine200M

bees (socialdivision-of-labor)

60

transistor


Natural: Physics (Atoms)

Natural: Chemistry (Molecules)

Biology (Uni-Cell Organisms)

Biology (Multi-Cell Organisms)

Natural: Biology (Neural & Social Organisms)

Human Made: Anthropology (Informal Service System Entities)

Human Made: Economics & Law (Formal Service System Entities)

Human Made: Network Theory (Globally Integrated Service System Entities)

Sys

tem

s S

cien

ceSer

vice

Sci

ence

Exp

lain

Evo

luti

on

of

Hie

rarc

hic

al C

om

ple

xity

Gra

yA

rea

So

cial

Sci

ence

s

Sciences of the Natural and Human Made Worlds

Nat

ura

l Sci

ence

s

Domain Entity Science

Human-made Service System Globally Integrated

Network Theory

Formal Economics & Law; Political Science

Informal Anthropology

Natural Living Organisms

Neural & Social Biology

Multi-cellular Biology

Uni-cellular Biology

Microscopic Structures

Chemicals Chemistry

Atoms Physics


Systems & Hierarchy of Complexity

Domain Entity Science

Human-made Service System Globally Integrated

Network Theory

Formal Economics & Law; Political Science

Informal Anthropology

Natural Living Organisms Neural & Social Biology

Multi-cellular Biology

Uni-cellular Biology

Microscopic Structures

Chemicals Chemistry

Atoms Physics


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


Population growth per hour in major cities


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


Edu-Impact.Com

“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.”


Example: San Jose, California (USA)


Nation’s % of Global GDP and Nation’s % of Top 500 Universities

Correlation becomes stronger when we consider (in the graph) USA and its data:% of Top 500: 30,3 %% global GDP: 23,3 %

Source: http://www.arwu.org/ARWUAnalysis2009.jsp

Japan

ChinaGermany

France

United KingdomItaly

Russia SpainBrazilCanada

IndiaMexico AustraliaSouth Corea

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


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 (Mini-Nations)

Example: Singapore


Universities as Holistic Service Systems (Mini-Cities)

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.


A Vital Partnership: Cities and universities

Citizens are demanding more urban servicesLarson & Odonoi (MIT) Urban Operations Research.

Citizens are demanding more urban services, by type, quantity, and quality. Yet the ability of most cities in the United States and elsewhere to pay for additional services has been severely strained… For our purposes, a decision is an irrevocable allocation of resources. Thus, this book will deal with the allocation or deployment of the resources of urban service systems, including personnel, equipment, and various service-improving technologies. From this viewpoint, urban operations research can be thought of as a decision-aiding technology, one to assist urban managers in improving the deployment of their resources. Most deployments occur spatially throughout the city, so much of our work will have a strong spatial component.

Higher education can respondUrban Serving University Coalition (USU) A Vital Partnership: Great Cities, Great Universities

Higher education can respond to the challenges facing our cities and metropolitan regions, becoming the R&D partners of cities that evaluate and deploy potential innovations. Never before has this agenda had greater urgency for our nation. For example, demographic changes within the United States have been dramatic, with nearly eight in ten Americans now living in cities. According to the Brookings Institution, while the top 100 metropolitan areas make up only 12% of the land mass, they produce fully 75% of the gross domestic product, generate 78% of competitive patents, and account for 68% of the nation’s jobs. Increasingly, the prosperity of our cities and metro areas is inextricably linked to our national prosperity.

Demographic projection: By 2050 over 75% of the world’s population will live in cities

34

University Trend: Growth of Disciplines & Centers

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 problems

Innovation Centers (ICs)Industry/government sponsorsMulti-disciplinary teamsResearch real-world systems

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

35

City Trend: Sister Cities “Think Global”World as System of SystemsWorld (light blue - largest)Nations (green - large)Regions (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)

36

University & City Trend: Tight Local Coupling & Global Brand

UNIVERSITIES:THE INNOVATION CENTERS OF GREAT CITIES

CITIES:THE LIVING LABS FOR UNIVERSITIES

IBM UPConnect

UniversitiesTo Their

Cities

let’s work towards smarter citieslet’s start with smarter education


IBM University Programs (IBM UP) 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) PipelineCity 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

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


Luxury Hotels as Holistic Service Systems (Mini-Cities)


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


However, Disciplines Still Debate Definition of Service

Economics

Design & Psychology Systems

Engineering

OperationsComputer Science/Artificial Intelligence

Marketing


Many Definitions of Service Economics

– Service1 = economic activities that are not agriculture or manufacturing

– Service3 = a transformation that one economic entity performs with the permission of a second entity, that transforms the second entity or a possession of the second entity

– Service4 = an exchange between economic entities that does not transfer ownership of a physical thing. Service Science

– Service2 = human-made value-cocreation phenomena, specifically a mutually beneficial outcome proposed, agreed to, and realized by two or more service system entities interacting. Service system entities can be people, businesses, nations, and any other economic entities with legal rights, such as the ability to own property, enter into binding contracts, etc. Quantifiable measures associated with service system entity interactions over the life-time of the entity, include quality, productivity, compliance, and sustainable innovation measures. Service system entities configure four types of resources, accessible by four types of access rights, and reason about four types of stakeholders when designing value-cocreation interactions, and evaluating them via their processes of valuing.

– Both collaboration and competition can both be/not be forms of value-cocreation, depending on context Operations

– Service5 = a production process that requires inputs from a customer entity Computer Science

– Service6 = a modular capability that can be computationally accessed and composed with others Systems Engineering

– Service7 = a system (with inputs, outputs, capacity limits, and performance characteristics) which is interconnected with other systems that may seek to access its capabilities to create benefits, and in which local optimization of the system interactions may not lead to global performance improvements

Design and Psychology– Service8 = an experience of a customer entity that results from that customer entity interacting with provider

entities’ offerings Marketing

– Service9 = the application of competence (e.g., resources, skills, capabilities) for the benefit of another entity

– Service10 = a customer-provider interaction that creates mutual benefits


Thank-You!


June 18, 2010

“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/invent it.” – Moliere/Kay“Real-world problems may not respect discipline boundaries.” – Popper

“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


How do we involve universities?How do weave a “total solution” that includes universities?


IBM’s Smarter Planet Grand Challenge: Smarter Systems

A. Systems that focus on flow of things humans need

1. Transportation & Supply Chain

Traffic, Rail


Water

3. Food & Products

Food, Products


Energy, Oil


Intelligence, Telecom, Cloud Computing

B. Systems that focus on human activity & development

6. Buildings & Construction (smart spaces)

Buildings, Infrastructure


Retail


Banking, Stimulus


Healthcare


Education, Work

C. Systems that focus on human governance

11. City & Security

Cites, Public Safety, Infrastructure


13. Nation & Rights

Government, Stimulus


Nations’ Grand Challenge: Quality of Life (how to define?)Smarter Systems = “We expect more” – Dawson

A. Systems that focus on flow of things humans need1. Transportation & Supply Chain


Climate and geography

3. Food & Products



Material well being

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

Material well-being


Material well-being


Material well-being


Health & Family Life


Job security

Gender equality

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

Community Life

Political stability and security


Climate and geography

13. Nation & Rights

Political freedom

Gender equality

Political stability and security


A. Holistic Modeling & AnalyticsExample: FIU’s Terrafly


C. Entrepreneurship & Job Creation

1. Model Systems

2. Connect/capture Data

3. Analyze, Improve

4. Optimize, Automate

5. Discipline Specialists

•Transportation

•Water and waste

•Energy and electricity

•Buildings

•Healthcare/Education

•Cities/Government

General

Methods

& Techniques

Specific

Technologies

Run Transform Innovate

Specific

Systems

1. Synapsense, SensorTronics

2. Infosphere Streams, ILOG, COGNOS, SPSS

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

4. BAO, Green Sigma

Cross Industry

Competencies

Industry Specific

Competencies

Jobs

Systems Engineering/Analytics/BAO/SSME

Research

to improve systems

fuels

Specialists

Consultant

Project Manager

Sales Architect

Operations


IBM Jobs: Project teams focus on customer needs

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 Work:90% B2B – Business to Business10% B2G – Business to Government(i.e., “Smarter Planet” projects)

50 © 2009 IBM CorporationGlobal University Programs

The Big Trend: “The future is service1”

-1000K -10K -100 -1 +100

HunterGatherer(physical)

Agriculture(physical)

Manufacturing(physical)

Service(social)

Human Labor

100%

Time (years)

Physical: mostly interact

with things

Social: mostly interact with others

Service2 growth asIT-enableddivision of labor

Service1 growth asintangible outputs

51 © 2009 IBM CorporationGlobal University Programs

The Big Trend: “The future is service2”

More population (people & organizations) creates opportunity for specialization – Specialization (division of labor – Adam Smith) can improve productive capacity

More specialization (outsourcing) creates need for coordination mechanisms– Local interactions become distributed across space, time, and scale (transaction costs – Coase)– Local optimization may not lead to global performance improvements

More coordination (IT can lower costs) creates service growth (value-cocreation)– IT integrates across space, time, and scale improving global and local performance– Increase the ratio of productive interactions to unproductive interactions with others

Service Growth (Value-Cocreation)increase mutually beneficial interactionsdecrease unproductive interactionsT-shaped people to lower coordination costs

Population (People & Organizations)entities interacting

Specialization (Outsourcing)space, time, scale distribution

Coordination (Information Technology)space, time, scale integration

Service2 growth asIT-enableddivision of labor


Thank-you! And…

let’s focus smarter education on… …sustainable innovations for smarter cities

…helping to build a smarter planet

instrumented+interconnected+intelligent(http://www.ibm.com/think)

“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

“Cities learning from cities learning from cities.” – Fundacion Metropoli“Think global, act local.” – Geddes

“The future is born in universities.” – Kurilov“The best way to predict the future is to create/invent it.” – Moliere/Kay“The future is already here. It is just not evenly distributed.” – Gibbons“Real-world problems may not respect discipline boundaries.” – Popper



Service Science: Progress and Directions


June 18, 2010

“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/invent it.” – Moliere/Kay“Real-world problems may not respect discipline boundaries.” – Popper


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

54

http://www.ibm.com/think

Dr. James (“Jim”) C. Spohrer Director of IBM University Programs (IBM UP) since 2009, Jim founded IBM's first Service Research group in 2003 at the Almaden Research Center with a focus on STEM (Science Technology Engineering and Math) for Service Sector innovations. He led this group to attain ten times return on investment with four IBM outstanding and eleven accomplishment awards over seven years. Working with service research pioneers from many academic disciplines, Jim advocates for Service Science, Management, Engineering, and Design (SSMED) as an integrative extended-STEM framework for global competency development, economic growth, and advancement of science. In 2000, Jim became the founding CTO of IBM’s first Venture Capital Relations group in Silicon Valley. In the mid 1990’s, he lead Apple Computer’s Learning Technologies group, where he was awarded DEST (Distinguished Engineer Scientist and Technologist) Jim received a Ph.D. in Computer Science/Artificial Intelligence from Yale University and a B.S. in Physics from MIT.

Sustainable Innovation: Aligning Urban and University Service SystemsGibbons said “The future is already here. It's just not very evenly distributed.". What if walking onto a university campus was like walking into the future. In a way it is, because the students at universities will someday fill roles in business and society – they are the future doers in all systems. Also, some of the important ideas from university research centers will someday become commonplace. More and more universities, especially urban serving research universities, are like living labs for the cities that host them. Universities are in fact small cities within larger cities. Many universities today have more students than the populations of some cities in past centuries, and the students have much better technologies for sharing and building knowledge.

There is more and more demand for Science Technology Engineering and Math (STEM) driven service innovations that can continuously improve the reliability of complex systems that serve customers in modern societies (UK Royal Society "Hidden Wealth: Science in Service Innovations" report, July 2009). Service innovations that improve reliability should also improve (a) the quality of service as judged by customers, (b) the productivity of provisioning service as judged by providers, and (c) the compliance as judged by regulatory or governing authorities as well as society as a whole. Furthermore, service innovations are what keep business systems competitive in a dynamic world characterized by globalization, driven in part by business model and technological change. Therefore, service innovations need to be sustainable innovations, both from an environmental perspective as well as an investment roadmap perspective that leads to continuous opportunities for individuals, businesses, and institutions.

IBM University Programs (IBM UP) is working to align cities and universities on two important topics: Sustainability and Innovation. Service science is a global initiative to improve service system sustainable innovation tools and methods. Service science may someday lead to a Moore’s Law for service system improvement. This will require a Computer-Aided Design (CAD) tool that can be used by T-shaped professionals to plan and implement more service innovation projects. Improved service systems that continuously improve locally and globally can help achieve the vision of a Smarter Planet.

55

Most Wanted: A CAD for service systems(CAD = Computer Aided Design Tool)

CBM: 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

56

How many entities to study? ~10B service systems - modular value creation systems

• Nations (~100)– Regions (~1000)

• Cities (~10,000)– Educational Institutions

(~100,000)– Healthcare Institutions

(~100,000)– Other Enterprises

(~10,000,000)» Largest 2000» >50% GDP WW

– Families (~1B)– Persons (~10B)

• Balance/Improve– Quality of Life

• GDP/Capita– Quality of Service

» Customer Experience

– Quality of Jobs

– Sustainability• GDP/Energy-Unit

– % Fossil– % Renewable

Nation

Region(e.g., State) City

EducationalInstitution

HealthcareInstitution

OtherEnterprises(job roles)

Family(customers)

Person(providers)

57

How entities (service systems) learn and change over timeHistory and future of Run-Transform-Innovate investment choices

• Diverse Types– Persons (Individuals)

• Families– Regional Entities

• Universities• Hospitals• Cities• States/Provinces• Nations

– Other Enterprises• Businesses• Non-profits

• Learning & Change– Run = use existing

knowledge or standard practices (use)

– Transform = adopt a new best practice (copy)

– Innovate = create a new best practice (invent)

Transform

Innovate

Invest in each Invest in each type of changetype of change

Run

March, J.G. (1991) Exploration and exploitation in organizational learning. Organizational Science. 2(1).71-87.

exploitexplore

58

How entities (service systems) interactIncentives & Rules

Ecology(Populations & Diversity)

Entities(Service Systems)

Interactions(Service Networks)

Outcomes(Value Changes)

Value Proposition Based Interactions (Incentives)

Governance Mechanism Based Interactions (Rules)

Access Rights(Relationships)

Measures(Rankings of Entities)

Resources(Roles in Processes)

Stakeholders(Perspectives)

win-win

lose-lose win-lose

lose-win

Identity(Aspirations/Lifecycle)

Reputation(Opportunities/Variety)

Resources: People, Technology, Information, OrganizationsStakeholders: Customers, Providers, Authorities, CompetitorsMeasures: Quality, Productivity, Compliance, Sustainable InnovationAccess Rights: Own, Lease, Shared, Privileged


Reports: 3 Nations

UK Royal Society Germany MARS US ASU CSL

60

• Fitzsimmons & Fitzsimmons– Graduate Students– Schools of Engineering

• Teboul– Undergraduates– Schools of Business– 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.

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

Teaching…

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

http://www.diesel-ebooks.com/cgi-bin/item/0132359472/Reaching-the-Goal-How-Managers-Improve-a-Services-Business-Using-Goldratt%27s-Theory-of-Constraints-eBook.html

61

Teaching: IBM SSME Website: Creating T-shaped people

http://www.ibm.com/developerworks/spaces/ssme

62

Changing Nature of Jobs: Deep & Broad

-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.

Based on U.S. Department of Labor’ Dictionary of Occupational Titles (DOT)

Expert Thinking(deep)

Complex Communication(broad)

Routine Manual

Non-routine Manual

Routine Cognitive

Increasing usage of job descriptive terms

63

A Service System Innovation Framework

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

Innovate (inside and outside) systems that create value

64

Many definitions of service• Economics

– Service1 = economic activities that are not agriculture or manufacturing– Service3 = a transformation that one economic entity performs with the permission of a second entity, that

transforms the second entity or a possession of the second entity– Service4 = an exchange between economic entities that does not transfer ownership of a physical thing.

• Service Science– Service2 = value-cocreation phenomena, specifically a mutually beneficial outcome proposed,

agreed to, and realized by two or more service system entities interacting. Service system entities can be people, businesses, nations, and any other economic entities with legal rights, such as the ability to own property, enter into binding contracts, etc. Quantifiable measures associated with service system entity interactions over the life-time of the entity, include quality, productivity, compliance, and sustainable innovation measures. Service system entities configure four types of resources, accessible by four types of access rights, and reason about four types of stakeholders when designing value-cocreation interactions, and evaluating them via their processes of valuing.

– Both collaboration and competition can both be/not be forms of value-cocreation, depending on context• Operations

– Service5 = a production process that requires inputs from a customer entity• Computer Science

– Service6 = a modular capability that can be computationally accessed and composed with others• Systems Engineering

– Service7 = a system (with inputs, outputs, capacity limits, and performance characteristics) which is interconnected with other systems that may seek to access its capabilities to create benefits, and in which local optimization of the system interactions may not lead to global performance improvements

• Design and Psychology– Service8 = an experience of a customer entity that results from that customer entity interacting with provider

entities’ offerings• Marketing

– Service9 = the application of competence (e.g., resources, skills, capabilities) for the benefit of another entity– Service10 = a customer-provider interaction that creates mutual benefits