IBM: Service Science, Management & Engineering

Global Service Economy Ten Nations US Employment History & Trends Total 50% of World Wide Labor A = Agriculture, G = Goods, S = Services 1980-2005 2005 PC Age United States Nation A G S Service % % % Growth (A) Agriculture: China 50 15 35 191% Value from harvesting nature India 60 17 23 28% (G) Goods: U.S. 3 27 70 21% Value from Indonesia 45 16 39 35% making products Brazil 23 24 53 20% (S) Services: Value from enhancing the Russia 12 23 65 38% capab ilities of things (customizing, distrib uting, etc.) and interactions b etween things Japan 5 25 70 40% Nigeria 70 10 20 30% Bangladesh 63 11 26 30% The largest labor force migration in human Spain 3.4 30 66 53% International Labor Organization history is underway, driven by global communications, business and technology growth, urbanization and low cost labor 2 Innovation and Technology © 2009 IBM Corporation © 2005 IBM Corporation

© 2009 IBM Corporation Need more T-shaped people – both deep and broad Science and Engineering Industrial and Systems Engineering 04/28/2009 Computer Science & Info. Systems Service Education is Interdisciplinary Math and Operations Research Economics and Social Sciences Business Anthropology Organizational Change & Learning Business and Management 3

Need for Academic Curricula Change: Service Science, Management & Engineering (SSME) Business Models Science & & Processes Technology SSME People & Culture The marketplace requires innovation that combines people, technology, value and clients 4 04/28/2009 © 2009 IBM Corporation

What Are We Saying?  To Universities – Update your curricula - teach in context around services – Train your students to be more multi-disciplinary with skills in technology, business and people/culture – Help develop new scientific models and algorithms to improve profitability of services businesses  To Governments – Fund University research and curricula for Service Science to help your economy and develop skills for the 21st Century  To Industry Partners – Fund and participate in new Service Innovation Research – Help with University outreach 5 © 2008 IBM Corporation

University Response  More than 250 Universities in 50 countries are teaching SSME courses  There are 102 degree programs in SSME worldwide 88 Masters degrees, 14 Bachelors 39 Technical degrees 38 Business degrees 25 MIS-type degrees  Numerous SSME W orkshops (e.g., Cambridge, GA Tech, Glasgow)  27 Service Research Centers W orldwide 6 © 2008 IBM Corporation

Service Research Centers - New in 2008  Bahcesehir and Northeastern (Turkey) Universities  Innovation University: Helsinki University of Technology (HUT)=Design Factory, Helsinki School of Economics HSE)= Service Factory and Helsinki University of Arts and Design (UAD)=Media  India SP Jain Institute for Management SSME Center  Karlsruhe Service Research Center  Shanghai Research Center (Charles King, Pund-IT)  National Tsinghua Institute for Service Science  University of Amsterdam and the VU University Amsterdam will launch one of the first European university centers for service innovation  University Federal de Rio de Janeiro SSME Research Group 8 © 2009 IBM Corporation

Six New Service Science Books  Service Science, Management and Engineering: Education for the 21st Century; Hefley, Bill; Murphy, Wendy (Eds.) 2008 www.springer.com/business/book/ 978-0-387-76577-8  Services Science: Fundamentals, Challenges and Future Developments; Stauss, B.; Engelmann, K.; Kremer, A.; Luhn, A. (Eds.) 2008, www.springer.com/business/book/ 978-3-540-74487-0  Advances in Services Innovations; Spath, Dieter; Fähnrich, Klaus-Peter (Eds.); 2007, www.springer.com/engineering/ production+eng/book/978-3-540-29858-8  Competing in a Service Economy: How to Create a Competitive Advantage Through Service Development and Innovation, Michael D. Johnson, Anders Gustafsson  New Service Development and Innovation in the New Economy Bo Edvardsson, Anders Gustafsson, Michael D. Johnson, Bodil Sanden  Product Development for the Service Sector: Lessons from Market Leaders by Robert G. Cooper, Scott J. Edgett 9 © 2009 IBM Corporation

SSME Roadmap for University Faculty 1. Learn about Services as a Science Go to the IBM SSME website www.ibm.com/university/ssme:  Recommended reading list  SSME-related conferences  Course-related linkages 1. Assess what your school is doing now in SSME-related studies and share with IBM and other universities. Identify gaps in curriculum and build SSME curriculum. 1. Collaborate with other Universities who are leaders in SSME research – Berkley, CMU, Stanford, MIT, Oxford, Tsing Hua, NCSU, GA Tech, SJSU 1. Participate in the SSME evolution:  Champion efforts to promote SSME  Conduct research in various challenge areas  Apply for research and new curricula grants from Government and Foundations  Build new course curriculum for degree programs  Build case studies using IBM customer examples, industry studies and business issues studies  Post SSME curricula and courseware on IBM Academic Initiative website for collaboration  Engage in SSME conferences and events 12 © 2009 IBM Corporation

SSME - Service Science, Management, and Engineering Discipline Classification System* General Service Management Service Arts • SSME Education • Service Marketing & Communications Service Arts Theory • Research in SSME • Service Operations Services-Inspired Art • SSME Policy • Service Management • Traditional Service Arts • History of Services Service Innovation Management • Services Market • Service Leadership Contemporary Service Arts • Miscellaneous • Service Quality History of Service Arts Service Science • Human Resources Management Service Industries • Service Theory • Customer Relationship Management The Service Industry • Economics of Services • Service Accounting Information Services • Mathematical Models of Services • Service Sourcing • Services as Value Co-Creation Systems • Services Law Business Services • Services as Dynamic Systems • Globalization of Services Professional Services • Services as Multi-agent Systems • Service Management Education Business Consulting • Services as Customer-Intensive Systems Human Behavior in Service Customer Relations • Service Complexity Theory Systems Maintenance and Repair • Service Innovation Theory • Service Systems Evolution • Behavioral Models of Services Public Services • Service Science Education Service Engineering • Decision Making in Services Health • Service Operations • People in Service Systems Hospitality • Service Optimization • Organizational Change in Services Transportation • Service Systems Engineering • Measurement and Incentive in Services Retail and Wholesale • Service Supply Chains • Customer Psychology Financial • Service Engineering Management Service Design • Service Design Theory Entertainment • Service Systems Performance • Service Information Systems • Service Design Methodology Religious and Spiritual Services • Service Standards • Service Representation Other Service Industries • Service Engineering Education • Aesthetics of Services • Service Design Education * Claudio Pinhanez 13 © 2009 IBM Corporation

IT Services Competencies  Business  IT Systems Architecture  IT Strategy  Management system architecture  Service marketing and sales  Service and component design  Service requirements management  Service Oriented Architecture  Service creation  Technology governance  Service request management  Architectural methods  Service Level Attainment  Client relationships  Infrastructure Services  Portfolio management  IT Services Operations  Customer satisfaction management  IT management system evaluation  Service pricing and contract administration  Performance Management  IT workforce management  Server administration  Service continuity  Backup and restore  Project management and service deployment  Storage  Solution globalization and accessibility  Event  Data privacy  Availability  Configuration  Capacity  Change  Facility  Asset  Network  Software distribution and license management  IT Recovery  Electronic inventory  Security Source: Paul Kontogiorgis 14 © 2009 IBM Corporation

IT Services Competencies (Continued)  Service Improvement  Advanced  Incident  Service Oriented Architecture  Problem  Services integration  User contact  Security  Product release  Disaster or business recovery and resiliency  Risk management  Data management  Process improvement  IT service research  IT solution test  IT service reporting  IT service acceptance  IT infrastructure consolidation  IT Knowledge Management  IT infrastructure virtualization  Capacity Management  Business process management  Policy based autonomic computing  On demand IT services  IT resource metering  Consumption based billing  Autonomic IT infrastructure Source: Paul Kontogiorgis 15 © 2009 IBM Corporation

IBM: Service Science, Management & Engineering

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