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Service Research and Innovation, IT-Enabled Service
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Service Science:Progress & Directions
Mega-Topics for IT-Enabled Service ResearchJim Spohrer, IBM
See http://www.slideshare.net/spohrer
0
20
40
60
80
100
Year
Rev
enu
e ($
B) Services
Software
Systems
Financing
Why Service Matters to IBM
Revenue Growth by Segment
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
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/
Research: Award Programs
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)”
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
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
“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
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)
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)
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
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)
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
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
World Population & Service System Scaling
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
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
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
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
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
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”
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
© 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
© 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
© 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.
© 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.
© 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..
© 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..
© 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..
© 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..
© 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
© 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
fa
ste
r th
an
ou
r ta
xon
om
ies.
”.
© 2011 IBM CorporationIBM UP (University Programs) WW34
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
© 2011 IBM CorporationIBM UP (University Programs) WW
Fun: CityOne Game to Learn “CityInvesting”Serious Game to teach problem solving for real issues in key industries, helping companies to learn how to work smarter. Energy, Water, Banking, Retail
http://www.ibm.com/cityone
© 2011 IBM CorporationIBM UP (University Programs) WW
Priority 1: Urban Sustainability & Service Innovation Centers
A. Research: Holistic Modeling & Analytics of Service SystemsModeling and simulating cities will push state-of-the-art capabilities for planning interventions in
complex system of service 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
© 2011 IBM CorporationIBM UP (University Programs) WW
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!