ISSIP Service Innovation Weekly Speaker Series

1. KIT – The Research University in the Helmholtz Association
KARLSRUHE SERVICE RESEARCH INSTITUTE (KSRI)
www.kit.edu
www.ksri.kit.edu
Karlsruhe Service Research Institute (KSRI) –
Experiences from “Industry-on-Campus”
Prof. Dr. Gerhard Satzger / Niels Feldmann
ISSIP , April 6, 2016

2. Karlsruhe Service Research Institute
www.ksri.kit.edu
Agenda
KSRI – „Industry-on-Campus“
KSRI Service Education Concept
KSRI „Menu“ of University-Industry Cooperations
Some „Industry-on-Campus“ Experiences
2 Prof. Dr. Gerhard Satzger / Niels Feldmann

3. Karlsruhe Service Research Institute
www.ksri.kit.edu
Karlsruhe Institute of Technology (KIT) is one of the
largest research institutions in Europe
In 2009, KIT was created as a merger of Karlsruhe
University and a National Research Center:
• 24,800 students
• 9,500 employees
• budget of €850M p.a., o/w 1/3 industry
Three equally-weighted pillars:
• Research
• Education
• Innovation
Top ranked education programs e.g.
• Computer Science (2,500 students)
• Industrial Engineering and Management (3,200
students)
3 Prof. Dr. Gerhard Satzger / Niels Feldmann

4. Karlsruhe Service Research Institute
www.ksri.kit.edu
KSRI* – An “industry-on-campus” model with focus on
interdisciplinary and application-oriented research
Software Design &
Quality
Prof. Dr. Ralf Reussner
Discrete Optimization &
Logistics
Prof. Dr. Stefan Nickel
Knowledge
Management
Prof. Dr. Rudi Studer
Prof. Dr. York Sure-Vetter
Information &
Market Engineering
Prof. Dr. Christof Weinhardt
Service Innovation &
Management
Prof. Dr. Gerhard Satzger
Energy Economics
Prof. Dr. Wolf Fichtner
Value Stream
Services
Dr. Helmut Wlcek,
Prof. Dr. Kai Furmans
Information Systems
& Service Design
Prof. Dr. Alexander Mädche
Service Marketing
Prof. Dr. Ju-Young Kim
4
* KSRI: Karlsruhe Service Research Institute (@ KIT)
Prof. Dr. Gerhard Satzger / Niels Feldmann

5. Karlsruhe Service Research Institute
www.ksri.kit.edu
The “KSRI”- a Public-Private-Partnership since 2008
• „Industry on campus“ model with focus on IT-
based services and digital transformation
• Initial objectives for IBM:
1. Position IBM as transformation leader
2. Spearhead innovation with clients
3. Build IBM relevant service capabilities
4. Position IBM as an attractive employer
• Governance:
• positive external evaluation in 2011
• yearly IBM evaluation and rolling contract
prolongation three years out
• Development:
• Bosch group and 5 university research
groups added
• About 45 affiliated researchers
• Direct involvement in KIT initiatives
• Smart Data Innovation Lab (SDIL)
• Karlsruhe Decision & Design Lab (KD2)
2008
2013
SDIL
Prof. Dr. Gerhard Satzger / Niels Feldmann5

6. Karlsruhe Service Research Institute
www.ksri.kit.edu
We move away from a product perspective to the notion
of joint value creation within „service systems“
Producer Consumer
Partner Partner
Consumer
service system –
tied together via IT
Traditional:
new:
Prof. Dr. Gerhard Satzger / Niels Feldmann6

7. Karlsruhe Service Research Institute
www.ksri.kit.edu
We support to innovate and manage
services within digital service systems
Service Transformation
• Industrial Services,
• Data-driven Business Models
• Services in E-Mobility
Service Innovation & Design
• Design Thinking
• Open Innovation
• Enterprise Crowdfunding
Service Analytics
• Customer Intimacy / Contr.
• Service Level Engineering
• Outcome-based Contracts
Prof. Dr. Gerhard Satzger / Niels Feldmann7

8. Karlsruhe Service Research Institute
www.ksri.kit.edu
OR INF WahlpflichtBWL
KSRI Service Education Concept – Offering Majors and
Minors in Digital Service Systems
Job Profiles
Digital Service Systems
BWL:
Information & Service Systems
ServiceInnovation,
Design&Engineerg.
ServiceDesign
ServiceEconomics
&Management
ServiceAnalytics
ServiceSociety
ServiceMarketing
ServiceOperations
ServiceComputing
DigitalServiceSystemsI
DigitalServiceSystemsII
B.Sc.M.Sc.
Fundamentals of Service Systems
I D E A S
Master Thesis
Bachelor Thesis
8 Prof. Dr. Gerhard Satzger / Niels Feldmann

9. Karlsruhe Service Research Institute
www.ksri.kit.edu
9
Globally first textbook on Service Systems is out ...
Prof. Dr. Gerhard Satzger / Niels Feldmann

10. Karlsruhe Service Research Institute
www.ksri.kit.edu
10
Teams of international top
students from renowned
universities like KIT,
St. Gallen, Aalto, Stanford
New types of teaching offerings:
Service Design Thinking
Strong global network of research institutions –
developing and driving Design Thinking Methods
Partners with exciting
innovation challenges
The Design Thinking approach is human-centric and driven by prototyping. In a 9-month „hands-on“ class
international top students work in small teams to develop disruptive innovations for selected industry partners.
* Stanford University Global Alliance for Re-Design
Will be featured in next
ISSIP call Apr 13
Prof. Dr. Gerhard Satzger / Niels Feldmann

11. Karlsruhe Service Research Institute
www.ksri.kit.edu
New types of teaching offerings: Cognitive Services –
KIT one of first European institutions to use IBM Watson
April – Oct 2015; 4 groups of 5 students each
High demand, interest, and enthusiasm with
students
Watson Experience Manager, Q&A API
March 2015: Students present @ CeBIT fair
Watson Travel Advisor Watson Formula 1 Expert
Watson Game of Thrones Expert Watson Takes the USMLE
11 Prof. Dr. Gerhard Satzger / Niels Feldmann

12. Karlsruhe Service Research Institute
www.ksri.kit.edu
KSRI „menu“ of university – industry cooperations
• Long-Term Contract Research: Duration > 2 years, larger project, new research assistant fully dedicated to partner hired
• PhD Scholarship: Duration: 3 years (= 1 PhD Cycle), new research assistant fully dedicated to partner hired, topic-oriented
cooperation, deliverables not formally defined
“On-campus"
partnership
Long-Term
Contracted Research
Research Cooperation
Sponsoring
(Ph.D. Scholarship)
12
1
2
3
4
1
2 3
4
Prof. Dr. Gerhard Satzger / Niels Feldmann

13. Karlsruhe Service Research Institute
www.ksri.kit.edu
“Industry-on-campus“ experiences - “The best or the
worst of both worlds?“...
13
Opportunities
• “Two hat” – identity enables linkage
of capabilities of KIT – IBM/Bosch
• Teaching excellence (how to, link to
business)
• Freedom of research, entrepreneurial
environment
• Easy access to excellent students
and personal coverage (“war for
talents”)
• “cheap way” to create inroads into new
areas, establish proof of concepts,
build prototypes
• Gain credibility with (IBM) customers
• Closeness to university ecosystem
Challenges
• Speed and stringency of decision
processes (or lack thereof)
• Demonstrate / earn academic
reputation
• Narrow academic focus vs. broad
industry coverage
• Mistrust: industry exploiting the
university
• Formal structures in universities
• Benefits long-term and often not
tangible/measurable
Prof. Dr. Gerhard Satzger / Niels Feldmann

14. Karlsruhe Service Research Institute
www.ksri.kit.edu
Hope to see you soon ! –
2015 KSRI service summit impressions...
14 Prof. Dr. Gerhard Satzger / Niels Feldmann

15. Karlsruhe Service Research Institute
www.ksri.kit.edu
www.ksri.kit.edu
Thank you –
Pls. contact us for more …
Prof. Dr. Gerhard Satzger
Research Group Service Innovation and
Management
Karlsruhe Service Research Institute (KSRI)
Karlsruhe Institute of Technology (KIT)
Englerstr. 11, D-76131 Karlsruhe, Germany
gerhard.satzger@kit.edu /
satzger@de.ibm.com
http://www.ksri.kit.edu
15 Prof. Dr. Gerhard Satzger / Niels Feldmann
Niels Feldmann
Research Group Service Innovation and
Management
Karlsruhe Service Research Institute (KSRI)
Karlsruhe Institute of Technology (KIT)
Englerstr. 11, D-76131 Karlsruhe, Germany
Niels.feldmann@kit.edu /
niels.feldmann@de.ibm.com
http://www.ksri.kit.edu