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Service Science: Progress & Directions Mega-Topics for IT-Enabled Service Research Jim Spohrer, IBM See http://www.slideshare.net/spohrer

Srii spohrer education panel 20110331 v3

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Service Research and Innovation, IT-Enabled Service

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Page 1: Srii spohrer education panel 20110331 v3

Service Science:Progress & Directions

Mega-Topics for IT-Enabled Service ResearchJim Spohrer, IBM

See http://www.slideshare.net/spohrer

Page 2: Srii spohrer education panel 20110331 v3

0

20

40

60

80

100

Year

Rev

enu

e ($

B) Services

Software

Systems

Financing

Why Service Matters to IBM

Revenue Growth by Segment

Page 3: Srii spohrer education panel 20110331 v3

Why Universities Matter to IBM

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

Page 4: Srii spohrer education panel 20110331 v3

IBM UP & “5 R’s”1. Research

Awards focus on grand challenge problems and big betshttps://www.ibm.com/developerworks/university/research

2. ReadinessAccess to IBM tools, methods, and course materials to develop skillshttps://www.ibm.com/developerworks/university/academicinitiative

3. RecruitingInternships and full-time positions working to build a smarter planethttp://www.ibm.com/jobs

4. RevenuePublic-private partnerships build great universities and strengthen regionshttp://www.ibm.com/services/us/gbs/bus/html/bcs_education.html

5. ResponsibilityCommunity service provides access to expertise/resourceshttp://www.ibm.com/ibm/ibmgives/

Page 5: Srii spohrer education panel 20110331 v3

Research: Award Programs

Page 6: Srii spohrer education panel 20110331 v3

What improves Quality-of-Life? Service System Innovations

A. Systems that focus on flow of things that humans need (~15%*)1. Transportation & supply chain2. Water & waste recycling/Climate & Environment3. Food & products manufacturing4. Energy & electricity grid/Clean Tech5. 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, non-profits (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

2/7/4

2/1/1

7/6/1

1/1/0

5/17/27

1/0/2

24/24/1

2/20/24

7/10/3

5/2/2

3/3/1

0/0/0

1/2/2

Quality of Life = Quality of Service + Quality of Jobs + Quality of Investment-Opportunities

* = US Labor % in 2009.

“61 Service Design 2010 (Japan) / 75 Service Marketing 2010 (Portugal)/78 Service-Oriented Computing 2010 (US)”

Page 7: Srii spohrer education panel 20110331 v3

Smarter Planet/SSME Awards (Sample of 192)

Ttransportation

Wwater

Pproducts

Eenergy

Ccommunication

Bbuildings

Rretail

Ffinance

Hhealth

Eeducation

Ggovernment

US 3 8 3 11 41 2 1 5 7 17DV 6 4 4 5 18 1 6 5 1 10EM 4 6 1 3 20 3 2 2 6SUR 8 8 3 9 2 1 2 4 6OCR 1 1 15 6 5FAC 4 7 5 9 35 2 4 3 8 12PHD 3 27 12TOTAL 13 18 8 19 79 3 4 8 8 8 24

Column’s Explained in More Detail on Previous Slide

Page 8: Srii spohrer education panel 20110331 v3

US National Academy of Engineering

Grand ChallengesA. Systems that focus on flow of things humans need

1. Transportation & Supply ChainRestore and enhance urban infrastructure

2. Water & Waste/Climate & Green techProvide access to clear water

3. Food & ProductsManager nitrogen cycle

4. Energy & ElectricityMake solar energy economicalProvide energy from fusionDevelop carbon sequestration methods

5. Information & Communication TechnologyEnhance virtual realitySecure cyberspaceReverse 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 & Consulting9. Healthcare & Family Life

Advance health informaticsEngineer better medicinesReverse engineer the brain

10. Education & Work Life/Jobs & EntrepreneurshipAdvance personalized learningEngineer the tools of scientific discovery

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

Restore and improve urban infrastructureSecure cyberspacePrevent nuclear terror

12. State/Region & Development13. Nation & Rights

Page 9: Srii spohrer education panel 20110331 v3

“I am an IBMer: Building A Smarter Planet”

https://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 satisfies

functional and non-functionalconstraints across the

system life-cycle

5. Specialists(systems engineer, Research, engineer,

Industry specialist, application, technician, data, analyst, professional, agent)- a compelling working system

(leading-edge prototype systemsfrom 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

Page 10: Srii spohrer education panel 20110331 v3

Skills for 21st Century: T-Shaped Innovators Ready for T-

eamwork

Many disciplines (13)(understanding & communications)

Many systems (13)(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)

SSME(D) = Service Science Management Engineering (and Design)

Page 11: Srii spohrer education panel 20110331 v3

Service Systems & Current Academic Disciplines

Systems that focus on flows of things Systems that governSystems that support people’s activitiestransportation & 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 (Customers, Providers, etc.)

Resources (People, Technology, etc.)

Change (History, Future)

Value (Run, Transform, Innovate)

Page 12: Srii spohrer education panel 20110331 v3

Jobs: Expert Thinking & Complex Communications

-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

Page 13: Srii spohrer education panel 20110331 v3

Priorities: Research Framework

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

Strategy Priorities

Execution Priorities

Fostering ServiceInfusion and Growth

Improving Well-Being through

Transformative Service

Creating and Maintaining a Service Culture

Stimulating Service Innovation

Enhancing Service Design

Optimizing Service Networks and Value Chains

Effectively Branding and Selling Services

Enhancing the Service Experience through

Cocreation

Measuring andOptimizing the Value of

Service

Development Priorities

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

Page 14: Srii spohrer education panel 20110331 v3

Mega-Topics Super-Colleague

Humanitarian and labor productivity (augmentation) applications of Watson technology

E.g., Intelligent assistant that has read everything you should have read & can talk with you about it

Super-Service Beyond self-service (toward invisible super-colleagues and intelligent

environments) e.g, https://www.youtube.com/watch?v=44f5A8PCWiU

Home Health Technology-enabled home health systems (invisible super-doctor-nurse

intelligent environments) e.g., http://www.youtube.com/watch?v=6Cf7IL_eZ38

ManAg Servitization Manufacturing & Agriculture factory of the future service system with customer

co-creation e.g., https://www.youtube.com/watch?v=nd5WGLWNllA)

Crowd Sourcing Instrumented people and city service systems (fun read – World Wide Mind,

Collective Intelligence) e.g. https://www.youtube.com/watch?v=anKiEoxkpxM

Whole-Service Sustainability IT-enabled smart cities with universities at the core as living labs (Holistic

Service Systems research) City, University Sci-Tech Parks & Incubators, University, K-12 & Neighborhoods E.g., http://www.service-science.info/archives/1056

Page 15: Srii spohrer education panel 20110331 v3

Holistic Service Systems

Examples: Nations, States, Cities, Universities, Luxury Hotels, Cruise Ships, Households

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

Nation

State/Province

City/Region

HospitalMedicalResearch

UniversityCollegesK-12

LuxuryResortHotels

Family(household)

Person(professional)

For-profits

Non-profits

start-ups

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

Page 16: Srii spohrer education panel 20110331 v3

World Population & Service System Scaling

Page 17: Srii spohrer education panel 20110331 v3

Thank-You! Questions?

Dr. James (“Jim”) C. SpohrerInnovation Champion & Director, 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

Page 18: Srii spohrer education panel 20110331 v3

IBM operates in 170 countries around the globe

IBM has 426,000 employees worldwide 2010 Financials

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

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

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

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

5 Nobel Laureates

Smarter

Planet9 time winner of the President’s National Medal of Technology & Innovation - latest award for Blue Gene Supercomputer

Page 19: Srii spohrer education panel 20110331 v3

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 Service

Growth

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.

Service Growth: The World

Page 20: Srii spohrer education panel 20110331 v3

StakeholderPriorities

Education

Research

Business

Government

StakeholderPriorities

Education

Research

Business

Government

Service Systems

Customer-provider interactions that enable value cocreation

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

Increasing scale, complexity and connectedness of service systems

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

Service Systems

Customer-provider interactions that enable value cocreation

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

Increasing scale, complexity and connectedness of service systems

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

Service Science

To discover the underlying principles of complex service systems

Systematically create, scale and improve systems

Foundations laid by existingdisciplines

Progress in academic studies and practical tools

Gaps in knowledge and skills

Service Science

To discover the underlying principles of complex service systems

Systematically create, scale and improve systems

Foundations laid by existingdisciplines

Progress in academic studies and practical tools

Gaps in knowledge and skills

Develop programmes & qualifications

Develop programmes & qualifications

Service Innovation

Growth in service GDP and jobs

Service quality & productivity

Environmental friendly & sustainable

Urbanisation &aging population

Globalisation & technology drivers

Opportunities for businesses, governments and individuals

Service Innovation

Growth in service GDP and jobs

Service quality & productivity

Environmental friendly & sustainable

Urbanisation &aging population

Globalisation & technology drivers

Opportunities for businesses, governments and individuals

Skills& Mindset

Skills& Mindset

Knowledge& Tools

Knowledge& Tools

Employment& Collaboration

Employment& Collaboration

Policies & Investment

Policies & Investment

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

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

Encourage an interdisciplinary approach

Encourage an interdisciplinary approach

The white paper offers a starting point to -

The white paper offers a starting point to -

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

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

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

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

Page 21: Srii spohrer education panel 20110331 v3

Evolution: SSME+D (for Design) for a Smarter PlanetWhat is Smarter Planet? Harmonized smarter systems.

INSTRUMENTED

We now have the ability to measure, sense and see the exact condition of practically everything.

INTERCONNECTED

People, systems and objects can communicate

and interact with each other in entirely new

ways.

INTELLIGENT

We can respond to changes quickly and accurately, and get better results

by predicting and optimizing

for future events.

WORKFORCE

PRODUCTS

SUPPLY CHAIN

COMMUNICATIONS

TRANSPORTATION BUILDINGS

IT NETWORKS

Page 22: Srii spohrer education panel 20110331 v3

What is a Service System? What is Service Science? …customers just name <your favorite provider> …researchers just name <your favorite discipline>

Economics & Law

Design/ Cognitive Science Systems

Engineering

OperationsComputer Science/

Artificial Intelligence

Marketing

“a service system is a human-made systemto improve customer-provider interactions,

or value-cocreation”

“service science isthe interdisciplinary study of

service systems &value-cocreation”

Page 23: Srii spohrer education panel 20110331 v3

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” in SSME+D?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 structures and mechanisms for computing non-zero-sum

Page 24: Srii spohrer education panel 20110331 v3

© 2011 IBM CorporationIBM UP (University Programs) WW

Service System Ecology: Conceptual Framework

Resources: People, Technology, Information, Organizations Stakeholders: Customers, Providers, Authorities, Competitors Measures: Quality, Productivity, Compliance, Sustainable Innovation Access Rights: Own, Lease, Shared, Privileged

Page 25: Srii spohrer education panel 20110331 v3

© 2005 IBM Corporation© 2010 IBM Corporation

Service-dominant logic

Service is the application of competences for the benefit of another entity

Service is exchanged for service

Value is always co-created

Goods are appliances for delivery

All economies are service economies

All businesses are service businesses

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

Resource Integrator/Beneficiary

(“Firm”)

Resource Integrator/Beneficiary

(“Customer”)

Valu

e Co-

crea

tion

Value Configuration

Den

sity

Page 26: Srii spohrer education panel 20110331 v3

© 2005 IBM Corporation© 2010 IBM Corporation

What is value?

Value depends on the capabilities a system has to survive and create beneficial change in its environment.

Taking advantage of the service another system offers means incorporating improved capabilities.

Value can be defined as system improvement in an environment.

All ways that systems work together to improve or enhance one another’s capabilities can be seen as being value creating.

Vargo, S. L., Maglio, P. P., and Akaka, M. A. (2008). On value and value co-creation: A service systems and service logic perspective. European Management Journal, 26(3), 145-152.

Page 27: Srii spohrer education panel 20110331 v3

© 2005 IBM Corporation© 2010 IBM Corporation

What is a service system?

Service involves at least two entities applying competences and making use of individual and shared resources for mutual benefit.

We call such interacting entities service systems.

A. Service Provider

• Individual• Organization• Public or Private

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

• People, dimensions of• Business, dimensions of• Products, goods and material systems• Information, codified knowledge

B. Service Client

• Individual• Organization• 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)

Gadrey, J. (2002). The misuse of productivity concepts in services: Lessons from a comparison between France and the United States. In J. Gadrey & F. Gallouj (Eds). Productivity, Innovation, and Knowledge in Services: New Economic and Socio-economic Approaches. Cheltenham UK: Edward Elgar, pp. 26 – 53.

Spohrer, J., Maglio, P. P., Bailey, J. & Gruhl, D. (2007). Steps toward a science of service systems. Computer, 40, 71-77.

Page 28: Srii spohrer education panel 20110331 v3

© 2005 IBM Corporation© 2010 IBM Corporation

Resources are the building blocks of service systems

Formal service systems can contractInformal service systems can promise/commit

Trends & Countertrends (Evolve and Balance):Informal <> FormalSocial <> Economic

Political <> LegalRoutine Cognitive Labor <> ComputationRoutine Physical Labor <> Technology

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

First foundational premise of service science

Service system entitiesdynamically configure

four types of resources

The named resource isPhysical

orNot-Physical

(physicists resolve disputes)

The named resource hasRights

orNo-Rights

(judges resolve disputeswithin their jurisdictions)

Physical

Not-Physical

Rights No-Rights

2. Technology

4.. SharedInformation

1. People

3. Organizations

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

Page 29: Srii spohrer education panel 20110331 v3

© 2005 IBM Corporation© 2010 IBM Corporation

Value propositions are the building blocks of service system networks

Second foundational premise of service science

Service system entitiescalculate value from multiple

stakeholder perspectives

A value propositions canbe viewed as a request from

one service system to anotherto run an algorithm

(the value proposition)from the perspectives of

multiple stakeholders accordingto culturally determined

value principles.The four primary stakeholderperspectives are: customer,

provider, authority, and competitor

StakeholderPerspective(the players)

MeasureImpacted

PricingDecision

BasicQuestions

ValuePropositionReasoning

1.Customer Quality(Revenue)

ValueBased

Should we?(offer it)

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

2.Provider Productivity(Profit)

CostPlus

Can we?(deliver it)

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

3.Authority Compliance(Taxes andFines)

Regulated May we?(offer anddeliver it)

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

4.Competitor(Substitute)

Sustainable Innovation(Marketshare)

Strategic Will we?(invest tomake it so)

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

Value propositions coordinate & motivate resource access

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

Page 30: Srii spohrer education panel 20110331 v3

© 2005 IBM Corporation© 2010 IBM Corporation

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

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

Third foundational premise of service science

Service system entitiesreconfigure access rights to

resources by mutually agreed tovalue propositions

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.)

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

Page 31: Srii spohrer education panel 20110331 v3

© 2005 IBM Corporation© 2010 IBM Corporation

Premises of service science: What service systems do

Service system entitiesdynamically configure (transform)

four types of resources

Service system entitiescalculate value from multiple

stakeholder perspectives

Service system entitiesreconfigure access rights

to resources by mutually agreed to value propositions

S AP C

Physical

Not-Physical

Rights No-Rights

2. Technology

4.. SharedInformation

1. People

3. Organizations

StakeholderPerspective

MeasureImpacted

Pricing Questions Reasoning

1.Customer Quality Value Based

Should we? Model of customer: Do customers want it?

2.Provider Productivity CostPlus

Can we? Model of self: Does it play to our strengths?

3.Authority Compliance Regulated May we? Model of authority: Is it legal?

4.Competitor Sustainable Innovation

Strategic Will we? Model of competitor: Does it put us ahead?

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

Page 32: Srii spohrer education panel 20110331 v3

© 2011 IBM CorporationIBM UP (University Programs) WW

Teaching SSME+D

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 Constraints By John Ricketts, IBM

Service Management:Operations, Strategy,

and Information Technology

By Fitzsimmons and Fitzsimmons, UTexas

Service Is Front Stage:Positioning services for

value advantage By James Teboul, INSEAD

Page 33: Srii spohrer education panel 20110331 v3

© 2011 IBM CorporationIBM UP (University Programs) WW

Reality: “Product-Service-System” Networks

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 (

19

72

) P

rod

uct

ion

-lin

e a

pp

roa

ch t

o s

erv

ice

. H

BR

.

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

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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

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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

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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 systemsIncludes maturity models of cities, their analytics capabilities, and city-university interactionsProvides an interdisciplinary integration point for many other university research centers that

study one specialized type of systemReal-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 projectsLLL = Life Long Learning

C. Entrepreneurship: Job CreationCity modeling and intervention planning tools can engage university students and build entrepreneurial skillsGrand challenge competitions can lead to new enterprises

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A. Flow of things1. Transportation: Traffic congestion; accidents and injury2. Water: Access to clean water; waste disposal costs3. Food: Safety of food supply; toxins in toys, products, etc.4. Energy: Energy shortage, pollution5. Information: Equitable access to info and comm resources

B. Human activity & development6. Buildings: Inefficient buildings, environmental stress (noise, etc.)7. Retail: Access to recreational resources8. Banking: Boom and bust business cycles, investment bubbles9. Healthcare: Pandemic threats; cost of healthcare10. Education: High school drop out rate; cost of education

C. Governing11. Cities: Security and tax burden12. States: Infrastructure maintenance and tax burden13. Nations: Justice system overburdened and tax burden

Cities as Holistic Service Systems: All the systems

Example: Singapore

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Universities as Holistic Service Systems: All the systems

A. Flow of things1. Transportation: Traffic congestion; parking shortages.2. Water: Access costs; reduce waste3. Food: Safety; reduce waste.4. Energy: Access costs; reduce waste5. Information: Cost of keeping up best practices.

B. Human activity & development6. Buildings: Housing shortages; Inefficient buildings7. Retail: Access and boundaries. Marketing.8. Banking: Endowment growth; Cost controls9. Healthcare: Pandemic threat. Operations.10. Education: Cost of keeping up best practices..

C. Governing11. Cities: Town & gown relationship.12. States: Development partnerships..13. Nations: Compliance and alignment.

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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

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Where are the opportunities? Everywhere!