Citris smarter planet ict and service 20110505 v1Presentation Transcript
Smarter Planet: ICT & Service Innovation Working Together to Build a Smarter Planet Dr. James (“Jim”) C. Spohrer [email_address] Innovation Champion and Director, IBM University Programs WW CITRIS Event, Berkeley, CA, USA, May 5th, 2011
Part 1: ICT Growth & Information Economy (Technology)
Very Brief History of ICT Innovation
Current Challenges: Need for Smarter Planet
Public Sector Fiscal Sustainability (Cloud Computing & Shared Service)
Commons Environmental Sustainability (Big Data & Analytics)
Part 2: Service Growth & Knowledge Economy (People)
Very Brief History of Service Innovation
Current Challenges: Need for Smarter Planet
Jobs Sustainability (Regional Innovation Ecosystems & Universities)
IBM operates in 170 countries around the globe IBM has 426,000 employees worldwide
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 Planet 9 time winner of the President’s National Medal of Technology & Innovation - latest award for Blue Gene Supercomputer
IBM Centennial – 100 Years of Innovation! IBM Centennial Film: 100 People & 100 Years http: // www.youtube.com/watch?v=39jtNUGgmd4
Watson and Jeopardy!
Part 1: ICT Innovation
1945 Columbia’s Watson Lab
1947-1954 Transistor (G -> S)
1958 Integrated Circuit
1969 First IMP 2 IMP Msg
1997 IBM Deep Blue wins in Chess
2010 1/3 WW Population with Internet access
2010 Mobile phone subscriptions hit 5 billion
2011 IBM Watson wins in Jeopardy
? 3/4 WW population with smart phones connected to internet
? All WW population with smart phone with Watson++
In 2001, there were 60 million transistors for every human on the planet ... In 2011, there is more than 1 billion transistors per human… … each costing 1/10 millionth of a cent.
Corning: A Day Made of Glass http://www.youtube.com/watch?v=6Cf7IL_eZ38
2010 Environmental Scan (see www.mpict.org)
4% of all companies
4% of workforce
6% of private sector revenue
12% of salaries
600 Employers Surveyed
86% end-user support roles
67% data center support
71% on-line/internet suppot
51% HW&SW development
41% marketing & sales
Industry Specific Enterprise Specific Generally Applicable
2010 Environmental Scan: ICT
How will needs change?
Need more employees with ICT skills (self-service)
Need broader skill sets, higher skill sets
Need continual progression, currency (life-long learning)
IT services more important, more expertise needed
Improving ICT education
More real world experience
More soft skills, team work
More focus on systems, benefits
Global work readiness
Deeper analytic/problem-solving skills
Broader team-work, communications skills
Smarter Local Government: What's being done...
Seeding the Local Government Community Cloud
Discussion – Next Steps
Next Wave is ICT for Public Sector Thinking “Outside In” "We can't solve problems by using the same kind of thinking we used when we created them." - Albert Einstein Contact: Mark Dixon (email@example.com) – STG Systems Architect – Public Sector
There are now 6.8 Billion people on the planet… Source: National Geographic Society – “State of the Earth: 2010”
The world will get smarter…because it must... 40-70 % of electrical energy is lost due to inefficiencies in the grid In one small business district in Los Angeles alone, cars burned 47,000 gallons of gasoline looking for parking Consume products and retail industries lose about $40 billion annually due to inefficient supply chains. In a world where people are undernourished, $48 billion worth of food is thrown away each year in the U.S. Our healthcare “system” can’t link from diagnosis to drug discovery, providers, insurers, employers and patients. Financial markets spread risk but can’t track it; this has lead to undermined confidence and uncertainty Weather-related events inflicted $1 trillion in damage from 1980-2003 Only 22% of reserves are extracted from the world’s existing oil wells. Global water usage has increased 6X since the 1900s. Today 1 in 5 people lacks safe drinking water. With poor urban governance, life expectancy within developing countries can be as low as 35 years. “ History is a race between education and catastrophe.” – H.G. Wells
We need to build a smarter planet… … how can we start with smarter government ? Create a citizen-centered experience by improving citizen and business services. Embrace government transparency and accountability by managing resources effectively and efficiently. Possibilities to improve our quality of life and way of living + + = Instrumented Interconnected Intelligent
The reality of living in a globally integrated world...
Governments in deficit worldwide – reduced revenues / spending cuts
Local governments particularly stressed by the revenue/cost of service gap
Growth in demand for government services is continual
Sources of revenue depend on economic activity
The “New Normal”...
“ Today’s problems may come from yesterday’s solutions.” – Senge
Looking to the Future: The “New Normal” Economic recession and future uncertainties Energy shortfalls and erratic commodity prices Slowing superpowers and emerging economies Complex value chains and empowered citizens “ ...the Great Recession that began in 2008 was not your grandmother’s standard recession. This was not just a deep economic slowdown that we can recover from and then blithely go back to our old ways—with just a little less leverage, a little less risk, and a little more regulation. No, this Great Recession was something much more important. It was our warning heart attack.” - Thomas Friedman – Hot, Flat and Crowded
Is government’s digital infrastructure ready? 70 ¢ 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities. 82% 82% of executives expect some form of climate change regulation within 5 years. 59 59 countries or jurisdictions have or are considering mandatory cap and trade regulations. 2x Data center energy use doubling every 5 years 69X Storage growth will increase 69X this decade. 6X Server growth will increase 6X this decade. 78% 78% of data centers were built before the dot com era and are technically obsolete. 50% 50% of customers experience server or storage downtime as a direct result of power and cooling issues. 33% 33% of consumers notified of a security breach will terminate their relationship with the organization they perceived as responsible.
California the Unique
California Budget Deficit for 2010/2011 = $21 Billion
California gets $0.78 in Fed funding for every $1 it pays the Federal govt (Rank: 43 of 50)*
California Budget Surplus if at federal tax parity = $68B ($313B - $224B - $21B)
Legislature approved taking back $1.9B from local governments in 2009
Counties do not have broad revenue generating authority like cities
Over 2300 special districts (Transit, Sewage, Pests, Libraries, Harbor, Healthcare, Parks, etc.)
85% single function – 293 Water Districts / 172 Fire Districts
Community Service Districts are multi-function.
Most populous state – 37 Million (2009 est)
Most ethnically diverse
8 th largest economy in the world (similar to Spain or Italy)
13% of US GDP – $1.85 Trillion
World's largest human migration – the Gold Rush
Leads nation in 75 crop and livestock commodities
Significant production of 250+ agricultural commodities
Provides over 50% of the vegetables, fruits and nuts in the USA
“ Real-world problems may not respect discipline boundaries.” – Popper * http://www.taxfoundation.org/research/show/266.html
Local Government Collaboration for a Smarter Planet Contact: Mark Dixon (firstname.lastname@example.org) – STG Systems Architect – Public Sector Smarter Local Government Reinventing Local Government in California and the USA Smarter Government Smarter Water Smarter Analytics Smarter Cities Smarter Food Smarter Transportation Smarter Buildings Economics Innovation Integration
Part 2: Service Innovation
Stimulus: Service Growth
The World (Rethinking Product-Service Systems)
IBM (Overview, Centennial, Watson, Smarter Planet)
Response: Service Science Priorities
Cambridge University Report (2007, 2008, 2011)
UK Royal Society Report (2009)
Arizona State University Report (2010)
Handbook of Service Science (2011)
Open Services Innovation (2011)
Evolution: Regional Innovation Ecosystems
What is a “Smarter Planet”? “Quality of Life” Improvement?
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
Global competition for talent (“vote with feet”)
How are Cities & Universities Linked? What Jobs & Skills?
How to visualize Service Science? Systems & Knowledge?
What is a Holistic Service System (HSS)? Value-CoCreation (VCC)?
Where is the “Real Science”? VCC Architectures & HSS
42% 64 33 3 1.4 Germany 37% 26 11 63 2.1 Bangladesh 19% 20 10 70 1.6 Nigeria 45% 67 28 5 2.2 Japan 64% 69 21 10 2.4 Russia 61% 66 14 20 3.0 Brazil 34% 39 16 45 3.5 Indonesia 23% 76 23 1 5.1 U.S. 35% 23 17 60 14.4 India 142% 29 22 49 25.7 China 40yr Service Growth S % G % A % Labor % WW Nation World’s Large Labor Forces A = Agriculture, G = Goods, S = Service 2010 2010 CIA Handbook, International Labor Organization Note: 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 systems that create benefits for customers and sustainably improve quality of life. Service Growth: The World
Factory as a Product-Service System http://www.youtube.com/watch?v=nd5WGLWNllA
Rethinking “Product-Service Systems” F B Service System 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 Service Business Product Business Front-Stage Marketing/Customer Focus Back-Stage Operations/Provider Focus Based on Levitt, T (1972) Production-line approach to service. HBR. e.g., IBM e.g., Citibank “ Everybody is in service... Something is wrong… The industrial world has changed faster than our taxonomies.”.
Service Growth: IBM B2B Service Projects: IT (data center, call centers) & business process outsourcing/reengineering, systems integration, organizational change, etc. What do IBM Service Professionals Do? Run things on behalf of customers, help Transform customers to adopt best practices, and Innovate with customers. Revenue Growth by Segment
Stakeholder Priorities 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 Science To discover the underlying principles of complex service systems Systematically create, scale and improve systems Foundations laid by existing disciplines Progress in academic studies and practical tools Gaps in knowledge and skills 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 Skills & Mindset Knowledge & Tools Employment & Collaboration Policies & Investment Develop and improve service innovation roadmaps, leading to a doubling of investment in service education and research by 2015 Encourage an interdisciplinary approach 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
Priorities: Research Framework for the Science of Service Source: Global Survey of Service Research Leaders (Ostrom et al 2010) Pervasive Force: Leveraging Technology to Advance Service Strategy Priorities Execution Priorities Fostering Service Infusion 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 and Optimizing the Value of Service Development Priorities
UK Royal Society Report: Science in Service Innovation http://royalsociety.org/Hidden-wealth-The-contribution-of-science-to-service-sector-innovation/
What is Smarter Planet? Harmonized smarter product-service 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. IT NETWORKS WORKFORCE PRODUCTS SUPPLY CHAIN COMMUNICATIONS TRANSPORTATION BUILDINGS
Our planet is a complex, dynamic, highly interconnected $54 Trillion system-of-systems (OECD-based analysis) 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 Industry Business Support IT Systems Energy Resources Machinery Materials Trade Legend for system inputs Note: 1. Size of bubbles represents systems’ economic values 2. Arrows represent the strength of systems’ interaction Source: IBV analysis based on OECD 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 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 Global economic value of $4 Trillion 7% of WW 2008 GDP Improvement potential $15 Trillion 28% of WW 2008 GDP Inefficiencies $54 Trillion 100% of WW 2008 GDP System-of-systems System inefficiency as % of total economic value Improvement potential as % of system inefficiency Education 1,360 Building & Transport Infrastructure 12,540 Healthcare 4,270 Government & Safety 5,210 Electricity 2,940 Financial 4,580 Food & Water 4,890 Transportation (Goods & Passenger) 6,950 Leisure / Recreation / Clothing 7,800 Communication 3,960 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‘)
Well Being Index
January 10, 2011 By Mark Whitehouse at [email_address]
One approach is to enhance GDP with other objective factors such as inequality, leisure and life expectancy. In a paper presented Saturday at the American Economic Association meeting, Stanford economists Peter Klenow and Charles Jones found that doing so can make a big difference.
Making everybody work 120 hours a week could radically boost a country's GDP per capita, but it wouldn't make people happier. Removing pollution limits could boost GDP per hour worked, but wouldn't necessarily lead to a world we'd want to live in.
What improves Quality-of-Life? Product-Service System Innovations
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%*)
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)”
Regional Innovation Ecosystems & Holistic Service Systems http://www.service-science.info/archives/1056
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
For-profits Non-profits Start-Ups ~25-50% of start-ups are new IT-enabled service offerings SaaS PaaS IaaS A Day Made of Glass: Corning http://www.youtube.com/watch?v=w12B02eJpaM&feature=fvst Nation State/Province City/Region Hospital Medical Research University Colleges K-12 Luxury Resort Hotels Family (household ) Person (professional )
A. Flow of things
1. 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 resources
10. Education : Cost of keeping up best practices..
11. Cities : Town & gown relationship.
12. States : Development partnerships..
13. Nations : Compliance and alignment.
Luxury Hotels as Holistic Service Systems: All the systems http://www.youtube.com/watch?v=Hm7MeZlS5fo
University & Regional Innovation Ecosystems (Why?) School of Public Policy School of Engineering School of Business Mngmnt School of Medicine School of Education School of Architecture School of Urban Planning School of Hospitality School of Information School of Science & Arts University: The Heart of Regional Innovation Ecosystems Incubator & Start-Ups $ Cities & Public Safety Government Service to Individuals & Institutions Education Transportation Energy ICT (Computing & Communications) Retail & Hospitality Food & Products Health Building Finance University: The Heart of Regional Innovation Ecosystems
Universities & Regional Innovation Ecosystems (Data) % GDP and % Top-500-Universities Strong Correlation (2009 Data): National GDP and University Rankings http://www.upload-it.fr/files/1513639149/graph.html
Accelerating Regional Innovation: Universities as “Living Labs” for Host Cities UNIVERSITIES: Research Centers & Real-World Systems CITIES/METRO REGIONS: Universities Key to Long-Term Economic Development
Edu-Impact.Com: Growing Importance of Universities with Large, Growing Endowments “ 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.”
Growing Importance of HPC to Universities
HPC = High Performance Computing (2006 NSF Data)
Average NSF funding: $30,354,000 Average NSF funding: $7,781,000 95 of Top NSF-funded Universities with HPC 98 of Top NSF-funded Universities w/out HPC With HPC Without HPC Journal of Information Technology, Volume 10, Issue 2 (accepted) www.jiti.net
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
Population growth per hour in major cities
Example: San Jose, California (USA)
Regional Innovation Ecosystems: NY State Top Employers (Healthy, Frugal, Wealthy, Innovative, Wealthy, Wise…)
University Trend: “Sister Campuses” (People Flows)
Disciplines in Schools (circles)
Innovation Centers (squares)
E.g., CMU Website (2009)
“ Research Centers: where it all happens – to solve real-world problems”
Disciplines in Schools
Research discipline problems
Innovation Centers (ICs)
Research real-world systems
D D D D D D Engineering School Social Sciences, Humanities Professional Studies Business School water & waste transportation health energy/grid e-government Science & Mathematics I-School Design food & supply chain
City Trend: “Sister Cities” (People Flows)
World as System of Systems
World (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)
IBM UP WW: Tandem Awards: Increasing university linkages (knowledge exchange interactions) Developed Market Nations (> $20K GDP/Capita) Emerging Market Nations (< $20K GDP/Capita)
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 Operations Computer Science/ Artificial Intelligence Marketing “ a service system is a human-made system to improve customer-provider interactions, or value-cocreation” “ service science is the interdisciplinary study of service systems & value-cocreation”
How to visualize service science? The Systems-Disciplines Matrix disciplines systems Systems that focus on flows of things Systems that govern Systems 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 city secure state scale nation laws 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., stats & design e.g., knowledge worker e.g., consultant e.g., entrepreneur stakeholders Customer Provider Authority Competitors resources People Technology Information Organizations change History (Data Analytics) Future (Roadmap) value Run Transform (Copy) Innovate (Invent) Starting Point 1: The Stakeholders (As-Is) Starting Point 2: Their Resources (As-Is) Change Potential: Thinking (Has-Been & Might-Become) Value Realization: Doing (To-Be)
What is the skills goal? T-Shaped professionals, ready for T-eamwork! SSME+D = Service Science, Management, Engineering + Design Many disciplines (understanding & communications) Many systems (understanding & communications) Deep in one discipline (analytic thinking & problem solving) Deep in one system (analytic thinking & problem solving) Many team-oriented service projects completed (resume: outcomes, accomplishments & awards)
Jobs: Expert Thinking & Complex Communications 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
Job Roles: IBM Building Smarter Enterprises & A Smarter Planet https://jobs3.netmedia1.com/cp/find.ibm.jobs/location/
(trusted advisor to customer)
a value proposition to address problems or opportunities and enhance value co-creation relationships
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 that balances time, costs, skills availability, and other resources, as well as adaptive realization of plan
(systems engineer, IT & enterprise architect)
An elegant solution design that satisfies functional and non-functional constraints across the system life-cycle
(systems engineer, Research, engineer,
Industry specialist, application, technician,
data, analyst, professional, agent)
a compelling working system (leading-edge prototype systems from Research)
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
World Population & Product-Service System Scaling
Product-Service-Solution Systems as Learning Systems L Linda Sanford, IBM “Let Go To Grow” March, J.G. (1991) Exploration and exploitation in organizational learning. Organizational Science. 2(1).71-87. Learning Systems (“Viability = Choices”) Exploitation (James March) Exploration (James March) Run/Practice-Reduce (IBM) Transform/Follow (IBM) Innovate/Lead (IBM) Operations Costs Maintenance Costs Incidence Planning & Response Costs (Insure) Incremental Radical Super-Radical Internal External Interactions “ To be the best, learn from the rest” “ Double monetize, internal win and ‘sell’ to external” “ Try to operate inside the comfort zone”
How entities (service systems) learn and change over time History and future of Run-Transform-Innovate investment choices
Learning & Change
Run = use existing knowledge or standard practices (use)
Transform = adopt a new best practice (copy)
Innovate = create a new best practice (invent)
March, J.G. (1991) Exploration and exploitation in organizational learning. Organizational Science. 2(1).71-87. exploit explore Technology Technology Technology Technology Technology Technology Technology Technology Technology Technology Technology Technology Technology Technology Transform Innovate Invest in each type of change Ru n
Smarter = Sustainable Innovation (reduce waste, expand capabilities) Computational System Building Smarter Technologies Requires investment roadmap Service Systems: Stakeholders & Resources 1. People 2. Technology 3. Shared Information 4. Organizations connected by win-win value propositions Building Smarter Universities & Cities Requires investment roadmap
What happens when you take some of the nicotine out of cigarettes?
How do you create more lasting solutions?
Time ECOLOGY 14B Big Bang (Natural World) 10K Cities (Human-Made World) 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 engine Where is the “Real Science”? 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 Value-CoCreation (VCC) Architectures & Holistic Service Systems (HSS) 200M bees (social division-of-labor) 60 transistor
Dr. James (“Jim”) C. Spohrer Director, IBM University Programs (IBM UP) WW email@example.com “ 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
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”) Value Co-creation Value Configuration Density
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.
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 .
Spohrer, J., Maglio, P. P., Bailey, J. & Gruhl, D. (2007). Steps toward a science of service systems. Computer, 40 , 71-77.
A. Service Provider
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
Public or Private
Forms of Ownership Relationship (B on C) Forms of Service Relationship (A & B co-create value) Forms of Responsibility Relationship (A on C) Forms of Service 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.
Resources are the building blocks of service systems Formal service systems can contract Informal service systems can promise/commit Trends & Countertrends (Evolve and Balance): Informal <> Formal Social <> Economic Political <> Legal Routine Cognitive Labor <> Computation Routine Physical Labor <> Technology Transportation (Atoms) <> Communication (Bits) Qualitative (Tacit) <> Quantitative (Explicit) First foundational premise of service science Service system entities dynamically configure four types of resources The named resource is Physical or Not-Physical (physicists resolve disputes) The named resource has Rights or No-Rights (judges resolve disputes within their jurisdictions) Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . Physical Not-Physical Rights No-Rights 2. Technology 4.. Shared Information 1. People 3. Organizations
Value propositions are the building blocks of service system networks Second foundational premise of service science Service system entities calculate value from multiple stakeholder perspectives A value propositions can be viewed as a request from one service system to another to run an algorithm (the value proposition) from the perspectives of multiple stakeholders according to culturally determined value principles. The four primary stakeholder perspectives are: customer, provider, authority, and competitor 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. . Model of competitor: Does it put us ahead? Can we stay ahead? Does it differentiate us from the competition? Will we? (invest to make it so) Strategic Sustainable Innovation (Market share) 4.Competitor (Substitute) Model of authority: Is it legal? Does it compromise our integrity in any way? Does it create a moral hazard? May we? (offer and deliver it) Regulated Compliance (Taxes and Fines) 3.Authority Model of self: Does it play to our strengths? Can we deliver it profitably to customers? Can we continue to improve? Can we? (deliver it) Cost Plus Productivity (Profit) 2.Provider Model of customer: Do customers want it? Is there a market? How large? Growth rate? Should we? (offer it) Value Based Quality (Revenue) 1.Customer Value Proposition Reasoning Basic Questions Pricing Decision Measure Impacted Stakeholder Perspective (the players)
Access rights are the building blocks of service system ecology (culture and shared information) Third foundational premise of service science Service system entities reconfigure access rights to resources by mutually agreed to value propositions
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. . service = value-cocreation B2B B2C B2G G2C G2B G2G C2C C2B C2G *** provider resources Owned Outright Leased/Contract Shared Access Privileged Access customer resources Owned Outright Leased/Contract Shared Access Privileged Access OO SA PA LC OO LC SA PA S A P C Competitor Provider Customer Authority value-proposition change-experience dynamic-configurations (substitute) time
Premises of service science: What service systems do Service system entities dynamically configure (transform) four types of resources Service system entities calculate value from multiple stakeholder perspectives Service system entities reconfigure access rights to resources by mutually agreed to value propositions Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . S A P C Physical Not-Physical Rights No-Rights 2. Technology 4.. Shared Information 1. People 3. Organizations Model of competitor: Does it put us ahead? Will we? Strategic Sustainable Innovation 4.Competitor Model of authority: Is it legal? May we? Regulated Compliance 3.Authority Model of self: Does it play to our strengths? Can we? Cost Plus Productivity 2.Provider Model of customer: Do customers want it? Should we? Value Based Quality 1.Customer Reasoning Questions Pricing Measure Impacted Stakeholder Perspective
Understanding the Human-Made World See Paul Romer’s Charter Cities Video: http://www.ted.com/talks/paul_romer.html Also see: Symbolic Species, Deacon Company of Strangers, Seabright Sciences of the Artificial, Simon
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 Mathematics See 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
Systems that focus on Governing Systems that focus on Human Activities and Development Systems that focus on Flow of things
Where are the opportunities? Everywhere!
Vision for the Educational Continuum: Individuals & Institutions Learning The Educational Continuum http://www-935.ibm.com/services/us/gbs/bus/html/education-for-a-smarter-planet.html 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
Continuing Education Higher Education Secondary School Primary School Workforce Skills Individuals Learning Continuum Institutions Learning Continuum Economic Sustainability
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
Priority 1: Urban Sustainability & Service Innovation Centers
A. Research: Holistic Modeling & Analytics of Service Systems
Modeling 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) Pipeline & LLL
City 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
LLL = Life Long Learning
C. Entrepreneurship: Job Creation
City modeling and intervention planning tools can engage university
students and build entrepreneurial skills
Grand challenge competitions can lead to new enterprises
This talk will review the exciting current trends and future directions in ICT (Information and Communication Technologies). The implication for society, ICT workforce, and technical education will be explored. ICT educators should take heart and continue to be motivated for several key reasons that will be presented.
Every cloud has a silver lining, and in the seeds of today's problems lie the driver of tomorrow's growth. The ICT transformation that happened in the private sector is about to happen for the public sector, helping to create a Smarter Planet (sustainability, and quality of life improvements). Service is everything (theSRII.org) – IaaS, PaaS, SaaS.
This talk will provide a broad, high-level view of local and global changes, and what will drive the local, regional demand for ICT talent in the future. In many ways, the future for local ICT talent is exceptionally bright, but the nature of ICT talent will need to be re-defined in the process.
T-shaped professionals are in demand, with both depth and breadth across both academic disciplines and societal systems, and thereby better prepared as life-long-learners ready to constantly adapt to an accelerating rate of change. T-shaped professionals are needed to build a Smarter Planet.