Reference content from this presentation as: JC Spohrer (2012) Future Avenues In Industrial Service Research and Business. Service Day. BestServ Forum. Helsinki, Finland, Tuesday May 29th, 2012 Permission to redistribute granted upon request to firstname.lastname@example.org
Service system entities calculate value from multiple stakeholder perspectives Four Key Stakeholder Perspectives: P = Provider C = Customer A = Authority S = Substitute (Competitor)
Service system entities learn to systematically exploit info & tech Learning Systems – Choice and Change Do = operate in comfort zone, applying existing knowledge Copy = to be the best, learn from the rest Invent = double monetize from internal use and external sales Add Rickets “Reaching the Goal” for Internal-External-Interaction Constraints. Explain Incremental-Radical-Super-Radical in terms of units (scientific measurement) For more on Exploitation-Exploration see below.. http://sonic.northwestern.edu/wp-content/uploads/2011/03/Keynote-Watts_Collective_Problems.pdf Lavie D & L Rosenkopf (2006) BALANCING EXPLORATION AND EXPLOITATION IN ALLIANCE FORMATION, The Academy of Management Journal, 49(4). 797-818. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.123.8271&rep=rep1&type=pdf “ Pressures for exploration. Whereas inertia drives firms’ tendencies to exploit, absorptive capacity facilitates counter pressures by furnishing the mechanism via which firms can identify the need for and direction of exploratory activities. Exploration is guided not only by inventing but also by learning from others (Huber, 1991; Levitt & March, 1988) and by employing external knowledge (March & Simon, 1958). Absorptive capacity, defined as the ability to value, assimilate, and apply external knowledge (Cohen & Levinthal, 1990), helps firms identify emerging opportunities and evaluate their prospects, thus enhancing exploration. It adjusts firms’ aspiration levels, so that they become attuned to learning opportunities and more proactive in exploring them. Indeed, prior research has demonstrated how absorptive capacity enhance organizational responsiveness and directs scientific and entrepreneurial discovery (Deeds, 2001; Rosenkopf & Nerkar, 2001). It also increases the likelihood of identifying external opportunities and can therefore lead to exploration in one or more domains of alliance formation.” For more on Run-Transform-Innovate see below… When I asked how he measures the performance and effectiveness of IBM's IT team, Hennessy pointed to its &quot;run-to-transform&quot; ratio. IBM's IT department is divided into three groups: a &quot;run&quot; organization that's responsible for keeping systems running smoothly; a &quot;transform&quot; team focused on business-process simplification and other business transformation; and an &quot;innovate&quot; unit that pursues leading-edge technology initiatives. Hennessy reports to Linda Sanford, IBM's senior VP of on-demand transformation and IT. Practicing what it preaches, IBM doesn't think of its IT organization as being merely an IT department. &quot;We call it BT and IT,&quot; Hennessy says, giving business transformation equal billing to the software, systems, and services side of its mission. http://www.informationweek.com/blog/main/archives/2009/04/ibm_cio_turns_d.html IBM CIO's Strategy: Run, Transform, Innovate Posted by John Foley on Apr 30, 2009 11:05 AM Like other CIOs, IBM's Mark Hennessy knows that a dollar saved on data center operations is a dollar earned for business-technology innovation. IBM has moved the dial on its IT budget 10 percentage points toward innovation in recent years, and Hennessy says there are still more operational efficiencies to be gained.I sat down with Hennessy for more than an hour recently in New York to talk about how he has adapted to being a CIO. A 25-year IBM veteran, he took over as CIO about 18 months ago, having spent most of his career on the business side, in sales, marketing, finance, and, most recently, as general manager of IBM's distribution sector, which works with clients in the retail, travel, transportation, and consumer products industries. Hennessy's IT team supports the company's strategy in three broad ways: by running and optimizing IBM's internal IT operations, by working with IBM business units in support of their objectives, and by facilitating company-wide collaboration, innovation, and technology requirements across 170 countries. In times past, IBM had as many as 128 different CIOs across its businesses. These days--in support of CEO Sam Palmisano's strategy of establishing a global, integrated enterprise--it has only one, and Hennessy is it. When I asked how he measures the performance and effectiveness of IBM's IT team, Hennessy pointed to its &quot;run-to-transform&quot; ratio. IBM's IT department is divided into three groups: a &quot;run&quot; organization that's responsible for keeping systems running smoothly; a &quot;transform&quot; team focused on business-process simplification and other business transformation; and an &quot;innovate&quot; unit that pursues leading-edge technology initiatives. A few years ago, IBM was spending 73% of its IT budget on keeping systems and services running and 27% on innovation. This year, its run-to-transform ratio will hit 63%-37%. Roughly speaking, IBM is shifting an additional 2% of its IT budget from run to innovation each year, and Hennessy has every expectation that his group will continue moving the ratio in that direction. &quot;I don't see an end in sight,&quot; he says. In fact, Hennessy says that IBM's run-to-innovation ratio has improved more this year than last. &quot;So it's actually accelerating for us,&quot; he says. Where do the efficiencies come from? The same place other CIOs find them. Server virtualization, data center consolidation (IBM has consolidated 155 data centers down to five), energy savings, applications simplification (from 15,000 apps to 4,500 apps), end user productivity, organizational collaboration, shifting skills globally, and business-process simplification. IBM has internal IT projects underway now in the areas of its supply chain, finance, workforce management, and order-to-cash processes. Hennessy reports to Linda Sanford, IBM's senior VP of on-demand transformation and IT. Practicing what it preaches, IBM doesn't think of its IT organization as being merely an IT department. &quot;We call it BT and IT,&quot; Hennessy says, giving business transformation equal billing to the software, systems, and services side of its mission.
Before we talk about the future of technology…. We should remember rules matter a lot too…. How we design systems matters….. Both how we design the technology & the rules (or institutions we live in) matters a lot… It matters for four key measures of systems – innovativeness, equity, sustainability, and resiliency… Societal performance on these four measures depends on technology (infrastructure), rules (institutions), skills (individuals), and what we value interms of quality of life (information)… Why are these people smiling? Every year NFL (National Football League) teams select the best new college players who indicate they are eligible for the NFL Draft…. Stanford’s quarterback Andrew Luck is one the best from 2011 What’s interesting is the Indianapolis Colts, the team he will play for the next decade, is one of the worst Source: http://www.rgj.com/viewart/20120426/SPORTS/304260061/NFL-draft-Colts-take-Stanford-QB-Andrew-Luck-open-draft http://en.wikipedia.org/wiki/National_Football_League_Draft