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Isss service science reframing skeleton and progress 20120717 v3


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ISSS systems sciences, service science, Bouldings Skeleton of Science, reframing progress with universities

ISSS systems sciences, service science, Bouldings Skeleton of Science, reframing progress with universities

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  • Reference content from this presentation as: Spohrer, JC (2012) Service Science Update: Reframing the Skeleton & Reframing Progress With Universities International Society of Systems Sciences San Jose State University, San Jose, CA, USA, Tuesday July 17, 2012 Permission to redistribute granted upon request to This presentation is available for download at: From the Paper: Service Science: Reframing Progress With Universities Spohrer, Giuiusa, Demirkan, Ing
  • SJO = San Jose International Airport QoS/J/O = Quality of Service, Jobs, Opportunity
  • To begin, let’s consider the big picture – starting with the big bang…. and evolution of the earth, life on earth, human life, cities, universities, and the modern world… the evolution of observed hierarchical-complexity Age of natural systems (age of the universe): Big Bang Age of urban systems (age of complex human-made world): Oldest city (end of last Ice Age was about 20,000 years ago, about 5 million people on earth by 10,000 years ago) (last Ice Age was probably started about 70,000 years ago when a super volcano erupted blocking sun light) Many people still ask -- where is the science in the “Service Science?” One answer is that the science is hidden away in each of the component disciplines that study service systems, scientifically from their particular perspective… However, the big picture answer is “Ecology” - Ecology is the study of the abundance and distribution of entities (populations of things) in an environment… and how the entities interact with each other and their environment over successive generations of entities. The natural sciences (increasingly interdisciplinary) study the left side, using physics, chemistry, and biology Service science (originated as interdisciplinary) studies the right side, using history, economics, management, engineering, design, etc. Service science is still a young area, but from the growth of service in nations and businesses to the opportunity to apply service science to build a smarter planet, innovate service systems, and improve quality of life… it is an emerging science with bright future, and yes… it will continue to evolve : - ) Most people think of ecology in terms of living organisms, like plants and animals in a natural environment. However, the concept of ecology is more general and can be applied to entities as diverse as the populations of types of atoms in stars to the types of businesses in a national economy. I want to start my talk today on “service,” by first thinking broadly about ecologies of entities and their interactions. Eventually, we will get to human-made service system entities and human-made value-cocreation mechanisms… but for today, let’s really start at the very beginning – the big bang. About 14B years ago (indicated by the top of this purple bar), our universe started with a big bang. And through a process of known as fusion, stars turned populations of lighter atoms like hydrogen into heavier atoms like helium, and when stars of a certain size have done all the fusion they could, they would start slowing down, and eventually collapse rapidly, go nova, explode and send heavier atoms out into the universe, and eventually new stars form, and the process repeats over and over, creating stars with different populations of types of atoms, including heavier and heavier elments. So where did our sun and the earth come from…. Eventually after about ten billion years in the ecology of stars and atoms within stars, a very important star formed our sun (the yellow on the left) – and there were plenty of iron and nickel atoms swirling about as our sun formed, and began to burn 4.5B years ago, and the Earth formed about 4.3B years ago (the blue on the left)… In less than a billion years, the early earth evolved a remarkable ecology of complex molecules, including amino acids, and after less than a billion years, an ecology of bacteria took hold on early earth (the bright green on the left). The ecology of single cell bacteria flourished and after another billion years of interactions between the bacteria, the first multicellular organisms formed, and soon the ecology of sponges (the light blue on the left) and other multi-cellular entities began to spread out across the earth. Then after nearly two billion years, a type of division of labor between the cells in multicelluar organism lead to entities with cells acting as neurons in the first clams (the red on the left), and these neurons allowed the clams to open and close at the right time. After only 200 million years, tribolites appeared the first organisms with dense neural structures that could be called brains appeared (the black on the left), and then after about 300 million years, multicelluar organisms as complex as bees appeared (the olive on the left), and these were social insects, with division of labor among individuals in a population, with queens, drones, worker bees. So 200 million years ago, over 13B years after the big bang, the ecology of living entities is well established on planet earth, including social entities with brains and division of labor between individuals in a population…. Living in colonies that some have compared to human cities – where thousands of individuals live in close proximity and divide up the work that needs to be done to help the colony survive through many, many generations of individuals that come and go. Bees are still hear today. And their wingless cousins, called ants, have taken division of labor to incredible levels of complexity in ant cities in nearly every ecological niche on the planet, except under water. Now let’s look at the human ecology,and the formation of service system entities and value-cocreation mechanisms, a small portion of which is represented by the colored bar on the right. Recall bees appeared about 200 million years ago, a small but noticeable fraction of the age of the universe. Now take 1% of this little olive slice, which is 2 million years… that is how long people have been on earth, just one percent of this little olive slice here. What did people do in most of that 2million years? Basically, they spread out to every corner of the planet, and changed their skin color, eye colors, and hair colors, they spread out and became diverse with many different appearances and languages. It took most of that 200 millions just to spread out and cover most of the planet with people. When there was no more room to spread out the density of people in regions went up…. Now take 1% of that 2million years of human history which basically involved spreading out to every corner of the planet and becoming more diverse, recall ecology is the study of abundance and distribution and types of interactions, and 1% of that 2million years is just 20,000 years, and now divide that in half and that represents 10,000 years. The bar on the right represents 10,000 years or just 500 generations of people, if a generation is about 20 years. 500 generations ago humans built the first cities, prior to this there were no cities so the roughly 5M people spread out around the world 0% lived in cities, but about 500 generations ago the first cities formed, and division of labor and human-made service interactions based on division of labor took off – this is our human big bang – the explosion of division of labor in cities. Cities were the big bang for service scientists, because that is when the diversity of specialized roles and division of labor, which is at the heart of a knowledge-based service economy really begins to take off... So cities are the first really important type of human-made service system entities for service scientists to study, the people living in the city, the urban dwellers or citizens are both customers of and providers of service to each other, and division of labor is the first really important type of human-made value-cocreation mechanism for service scientists to study. (Note families are a very important type of service system entity, arguably more important than cities and certainly much older – however, family structure is more an evolution of primate family structure – and so in a sense is less of a human-made service system entity and more of an inherited service system entity… however, in the early cities often the trades were handed down father to son, and mother to daughter as early service businesses were often family run enterprises in which the children participated – so families specialized and the family names often reflect those specialization – for example, much later in England we get the family names like smith, mason, taylor, cooper, etc.) So to a service scientist, we are very excited about cities as important types of service system entities, and division of labor as an important type of value-cocreation mechanism, and all this really takes off in a big way just 500 generations ago when the world population was just getting to around 5M people spread out all around the world – so 10,000 years about about 1% of the worlds population was living in early versions of cities. It wasn’t until 1900 that 10% of the world’s then nearly 2B people lived in cities, and just this last decade that 50% of the worlds 6B people lived in cities, and by 2050 75% of the worlds projected 10B population will be urban dwellers. If there is a human-made service system that we need to design right, it is cities. It should be noted that the growth of what economist call the service sector, parallels almost exactly the growth of urban population size and increased division-of-labor opportunities that cities enable – so in a very real sense SERVICE GROWTH IS CITY GROWTH OR URBAN POPULATION GROWTH… in the last decade service jobs passed agriculture jobs for the first time, and urban dwellers passed rural dwellers for the first time. But I am starting to get ahead of myself, let’s look at how the human-made ecology of service system entities and value-cocreation mechanisms evolved over the last 10,000 years or 500 generations. The population of artifacts with written language on them takes off about 6000 years ago or about 300 generations ago (the yellow bar on the right). Expertise with symbols helped certain professions form – and the first computers were people writing and processing symbols - scribes were required, another division of labor – so the service of reading and writing, which had a limited market at first began to emerge to help keep better records. Scribes were in many ways the first computers, writing and reading back symbols – and could remember more and more accurately than anyone else. Written laws (blue on right) that govern human behavior in cities takes off about 5000 years ago – including laws about property rights, and punishment for crimes. Shortly there after, coins become quite common as the first type of standard monetary and weight measurement system (green on right). So legal and economic infrastructure for future service system entities come along about 5000 years ago, or 250 generations ago, with perhaps 2% of the population living in cities…. (historical footnote: Paper money notes don’t come along much until around about 1400 years ago – bank notes, so use of coins is significantly older than paper money, and paper money really required banks as service system entities before paper money could succeed.). About 50 generations ago, we get the emergence of another one of the great types of service system entities – namely universities (light blue line) – students are the customers, as well as the employers that need the students. Universities help feed the division of labor in cities that needed specialized skills, including the research discipline skills needed to deepen bodies of knowledge in particular discipline areas. The red line indicates the population of printing presses taking off in the world, and hence the number of books and newspapers. This was only about 500 years or 25 generations ago. Now university faculty and students could more easily get books, and cities began to expand as the world’s population grew, and more cities had universities as well. The black line indicates the beginning of the industrial revolution about 200 years ago, the sream engine, railroads, telegraph and proliferation of the next great type of service system entity – the manufacturing businesses - that benefited from standard parts, technological advances and scale economies, and required professional managers and engineers. About 100 years ago, universities began adding business schools to keep up with the demand for specialized business management skills, and many new engineering disciplines including civil engineering, mechanical engineering, chemical engineering, and electrical engineering, fuel specialization and division of labor. By 1900, just over 100 years ago, or 5 generations ago 10% of the worlds population, or about 200 million people were living in cities and many of those cities had universities or were starting universities. Again fueling specialization, division of labor, and the growth of service as a component of the economy measured by traditional economists. Finally, just 60 years ago or 3 generations ago, the electronic semiconductor transistor was developed (indicated by the olive colored line on the right), and the information age took off, and many information intensive service activities could now benefit from computers to improve technology (e.g., accounting) and many other areas. So to recap, cities are one of the oldest and most important type of service system and universities are an important and old type of service system, as well as many types of businesses. Service science is the study of service system entities, their abundance and distribution, and their interactions. Division of labor is one of the most important types of value cocreation mechanisms, and people often need specialized skills to fill roles in service systems. Service science like ecology studies entities and their interactions over successive generations. New types of human-made service system entities and value-cocreation mechanisms continue to form, like wikipedia and peer production systems. Age of Unvierse (Wikipedia) The age of the universe is the time elapsed between the Big Bang and the present day. Current theory and observations suggest that the universe is 13.75 ±0.17 billion years old. [1] Age of Sun The Sun was formed about 4.57 billion years ago when a hydrogen molecular cloud collapsed. [85] Solar formation is dated in two ways: the Sun's current main sequence age, determined using computer models of stellar evolution and nucleocosmochronology , is thought to be about 4.57 billion years. [86] This is in close accord with the radiometric date of the oldest Solar System material, at 4.567 billion years ago. [87] [88] Age of Earth The age of the Earth is around 4.54 billion years (4.54 × 109 years ± 1%). [1] [2] [3] This age has been determined by radiometric age dating of meteorite material and is consistent with the ages of the oldest-known terrestrial and lunar samples . The Sun , in comparison, is about 4.57 billion years old , about 30 million years older. Age of Bacteria (Uni-cellular life) The ancestors of modern bacteria were single-celled microorganisms that were the first forms of life to develop on earth, about 4 billion years ago. For about 3 billion years, all organisms were microscopic, and bacteria and archaea were the dominant forms of life. [22] [23] Although bacterial fossils exist, such as stromatolites , their lack of distinctive morphology prevents them from being used to examine the history of bacterial evolution, or to date the time of origin of a particular bacterial species. However, gene sequences can be used to reconstruct the bacterial phylogeny , and these studies indicate that bacteria diverged first from the archaeal/eukaryotic lineage. [24] The most recent common ancestor of bacteria and archaea was probably a hyperthermophile that lived about 2.5 billion–3.2 billion years ago. [25] [26] Cities (Wikipedia) Early cities developed in a number of regions of the ancient world. Mesopotamia can claim the earliest cities, particularly Eridu, Uruk, and Ur. After Mesopotamia, this culture arose in Syria and Anatolia, as shown by the city of Çatalhöyük (7500-5700BC). Writing (Wikipedia) Writing is an extension of human language across time and space. Writing most likely began as a consequence of political expansion in ancient cultures, which needed reliable means for transmitting information, maintaining financial accounts, keeping historical records, and similar activities. Around the 4th millennium BC, the complexity of trade and administration outgrew the power of memory, and writing became a more dependable method of recording and presenting transactions in a permanent form [2] . In both Mesoamerica and Ancient Egypt writing may have evolved through calendrics and a political necessity for recording historical and environmental events. Written Law (Wikipedia) The history of law is closely connected to the development of civilization . Ancient Egyptian law, dating as far back as 3000 BC, contained a civil code that was probably broken into twelve books. It was based on the concept of Ma'at , characterised by tradition, rhetorical speech, social equality and impartiality. [81] [82] By the 22nd century BC, the ancient Sumerian ruler Ur- Nammu had formulated the first law code , which consisted of casuistic statements ("if ... then ..."). Around 1760 BC, King Hammurabi further developed Babylonian law , by codifying and inscribing it in stone. Hammurabi placed several copies of his law code throughout the kingdom of Babylon as stelae , for the entire public to see; this became known as the Codex Hammurabi . The most intact copy of these stelae was discovered in the 19th century by British Assyriologists, and has since been fully transliterated and translated into various languages, including English, German, and French. [83] Money (Wikipedia) Many cultures around the world eventually developed the use of commodity money . The shekel was originally both a unit of currency and a unit of weight. [10] . The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money – usually, the shell of the money cowry ( Cypraea moneta ) were used. According to Herodotus , and most modern scholars, the Lydians were the first people to introduce the use of gold and silver coin . [11] It is thought that these first stamped coins were minted around 650–600 BC. [12] Universities (Wikipedia) Prior to their formal establishment, many medieval universities were run for hundreds of years as Christian cathedral schools or monastic schools ( Scholae monasticae ), in which monks and nuns taught classes; evidence of these immediate forerunners of the later university at many places dates back to the 6th century AD. [7] The first universities were the University of Bologna (1088), the University of Paris (c. 1150, later associated with the Sorbonne ), the University of Oxford (1167), the University of Palencia (1208), the University of Cambridge (1209), the University of Salamanca (1218), the University of Montpellier (1220), the University of Padua (1222), the University of Naples Federico II (1224), the University of Toulouse (1229). [8] [9] Printing and Books (Wikipedia) Johannes Gutenberg's work on the printing press began in approximately 1436 when he partnered with Andreas Dritzehn—a man he had previously instructed in gem-cutting—and Andreas Heilmann, owner of a paper mill. [34] However, it was not until a 1439 lawsuit against Gutenberg that an official record exists; witnesses' testimony discussed Gutenberg's types, an inventory of metals (including lead), and his type molds. [34]
  • Our world is composed of planetary systems (our natural environment) and human systems (our social environment). We obtain benefits from both types of systems. We also interact with and contribute to both types of systems. Our choices (such as diet and resource usage) impact planetary systems, and our choices (such as education and jobs) impact human systems. It is really our opportunities and choices that matter. And our choices today will have an affect on our opportunities tomorrow. A smarter planet is about maintaining and improving our quality of life in a sustainable manner – meeting our short-term needs without jeopardizing future generations.
  • Jim Spohrer, Paolo Piciocchi, and Clara Bassano Three Frameworks for Service Research: Exploring Multilevel Governance in Nested, Networked Systems Service Science June 2012 4:147-160; doi:10.1287/serv.1120.0012
  • Service systems and knowledge access evolving Nested, networked holistic product-service systems that provide “Whole Service” to the people-inside Source: Whole Service Source: Third Stream
  • Our world can be thought of as a nested system of systems…. Sources “ Japanese wooden dolls were made to look like the Seven Lucky Gods from Japanese mythology.  The outer most doll was Fukurokuju the Japanese god of happiness and longevity.  He had an abnormally long forehead “
  • For example, we are all part of at least ten regional systems levels from our household to the world… Which level is most important for resiliency? Arguably the city… the level of population is enough to support “the knowledge burden of advanced technology” required for a high-quality of life
  • Ready for Life-Long-Learning Ready for Teamwork Ready to Help Build a Smarter Planet T-shaped people are ready for Teamwork – they are excellent communicators, with real world experience, and deep (or specialized) in at least one culture, one discipline and one systems area, but with good team work skills interacting with others who are deep in other cultures, disciplines and systems areas. Also, T-shaped professionals also make excellent entrepreneurs, able to innovate with others to create new technology, business, and societal innovations. T-shaped people are adaptive innovators, and well prepared for life-long learning in case they need to become deep in some new area… they are better prepared than I-shaped people, who lack the breadth. Therefore, IBM and other public and private organizations are looking to hire more of this new kind of skills and experience profile – one that is both broad and deep.. These organizations have been collaborating with universities around the world to establish a new area of study known as service science, management, engineering, and design (SSMED) – to prepare computer scientists, MBAs, industrial engineers, operations research, management of information systems, systems engineers, and students of many other discipline areas – to understand better how to work on multidisciplinary teams and attack the grand challenge problems associated with improving service systems…
  • Specialization Division of Labor – Wealth of Nation The Theory of Moral Sentiments , 1759, and An Inquiry into the Nature and Causes of the Wealth of Nations , 1776 Comparative Advantage - Principles of Political Economy and Taxation (1817) Chapter on Value and Riches Credits:
  • Sources: The Burden of Knowledge and the 'Death of the Renaissance Man': Is Innovation Getting Harder? Benjamin F. Jones NBER Working Paper No. 11360 Issued in May 2005 NBER Program(s):    PR This paper investigates, theoretically and empirically, a possibly fundamental aspect of technological progress. If knowledge accumulates as technology progresses, then successive generations of innovators may face an increasing educational burden. Innovators can compensate in their education by seeking narrower expertise, but narrowing expertise will reduce their individual capacities, with implications for the organization of innovative activity - a greater reliance on teamwork - and negative implications for growth. I develop a formal model of this "knowledge burden mechanism" and derive six testable predictions for innovators. Over time, educational attainment will rise while increased specialization and teamwork follow from a sufficiently rapid increase in the burden of knowledge. In cross-section, the model predicts that specialization and teamwork will be greater in deeper areas of knowledge while, surprisingly, educational attainment will not vary across fields. I test these six predictions using a micro-data set of individual inventors and find evidence consistent with each prediction. The model thus provides a parsimonious explanation for a range of empirical patterns of inventive activity. Upward trends in academic collaboration and lengthening doctorates, which have been noted in other research, can also be explained by the model, as can much-debated trends relating productivity growth and patent output to aggregate inventive effort. The knowledge burden mechanism suggests that the nature of innovation is changing, with negative implications for long-run economic growth.
  • So maybe technology will help us have greater and greater resiliency…. However, paradoxically there is a hidden cost to all this technology… How much knowledge does it take for a country, state, or city to have good measures on innovativeness, equity, sustainability, and resiliency? Source: Cesar Hidalgo, see minutes 7-19 of a longer youtube video
  • No one person has the knowledge or capabilities without the help of others and accumulated technology to build something as simple as a pencil. So resiliency and quality-of-life will exhibit scale effects and knowledge burden fragility… Source:
  • In the future, robots will build and recycle whole buildings in a matter of hours. Already at Dongting lake in the Hunan Province in China, the Broad group has used prefab architecture to construct a 30 story building in 15 days (360 hours). When robots are used for construction and recycling, it will be even faster and more cost efficient. The building was stronger, safer, and more energy efficient than previous Broad group hotels. We often think of resiliency as the ability to recover very quickly, after a natural disaster or other external shock to a system. In the future resiliency will be more about rebuilding and recycling quickly to take advantage of newer and better materials, and ways of doing things. The external shocks to the system will more often than not be new innovations, not natural disasters… Headline: 30 stories in 15 days (story on Jan 10 th 2012 – built on Dec 31 2011)
  • 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:
  • Universities connect information flows between other HSS, cities, states, nations Local optimizations can spread quickly to other HSS… Top 3000 cities: Of course the opportunity is not just local – while local innovation impact the lives of staff, faculty, students and their families most directly – as cities partner more (twin city and sister city programs) and as universities also establish global collaborations with campuses in other regions of the world – the opportunity for better city-university partnerships is both local and global.
  • Edu-Impact.Com: Growing Importance of Universities with Large, Growing Endowments Recently visited Yang building at Stanford One of the greenest buildings on the planet But if it does not evolve in 20 years it will not be the greenest building Visited supercomputers – we have two at IBM Almaden – there was a time they were in the top 100 supercomputers in the world – not any more …. So a Moore’s law of buildings is more than cutting waste in half every year, it is also about the amount of time it takes to structural replace the material with newer and more modern materials that provide benefits…
  • Cities are about 2% of the land area, with 50% of the popuoation and 75% of the energy consumption, and 80% of the carbon emissions, according to Carolo Ratti who heads MIT Senseable Cities at MIT Media Lab. Of course, while the buildings and transportation in cities are important – what is really important are the people…. Headline: TED talk: Carlo Ratti (MIT) Architecture that senses and resonds
  • What improves quality of life? Service system innovations. Every day we are customers of 13 types of service systems. If any of them fail, we have a “bad day” (Katrina New Orleans) I have been to two service science related conferences recently, one in Japan on Service Design and one in Portugal on Service Marketing… the papers from the proceedings of the conferences mapped onto all of these types of service systems… The numbers in yellow: 61 papers Service Design (Japan) / 75 papers Service Marketing (Portugal) / 78 Papers Service-Oriented Computing (US) Number in yellow Fist number: Service Design Conference, Japan 2 nd International Service Innovation Design Conference (ISIDC 2010), Future University Hakodate, Japan Second number Service Marketing Conference, Portugal, AMA SERVSIG at U Porto, Portugal Numbers in yellow: Number of AMA ServSIG 2010 abstracts that study each type of service system… ( Of 132 total abstracts… 10 studies all types of service systems 19 could not be classified In a moment we will look at definitions of quality of life, but for the moment, consider that everyday we all depend on 13 systems to have a relatively high quality of life, and if any one of these systems goes out or stops providing good service, then our quality of life suffers…. Transportation, Water, Food, Energy, Information, Buildings, Retail, Banking & Financial Services (like credit cards), Healthcare, Education, and Government at the City, State, and National levels…. Volcanic ash, hurricanes, earthquakes, snow storms, floods are some of the types of natural disasters that impact the operation of these service systems – but human made challenges like budget crises, bank failures, terrorism, wars, etc. can also impact the operation of these 13 all important service systems. Moreover, even when these systems are operating normally – we humans may not be satisfied with the quality of service or the quality of jobs in these systems. We want both the quality of service and the quality of jobs in these systems to get better year over year, ideally, but sometimes, like healthcare and education, the cost of maintaining existing quality levels seems to be a challenge as costs continue to rise… why is that “smarter” or sustainable innovation, which continuously reduces waste, and expands the capabilities of these systems is so hard to achieve? Can we truly achieve smarter systems and modern service? A number of organizations are asking these questions – and before looking at how these questions are being formalized into grand challenge questions for society – let’s look at what an IBM report concluded after surveying about 400 economists…. ==================== Quality of life for the average citizen (voter) depends on the quality of service and quality of jobs in 13 basic systems….. Local progress (from the perspective of the average citizen or voter) can be defined for our purposes as (quality of service & jobs) + returns (the provider, which is really the investor perspective, the risk taker in provisioning the service) + security (the authority or government perspective on the cost of maintaining order, and dealing with rules and rule violations) + smarter (or the first derivative – does all this get better over time – parents often talk about wanting to help create a better world for their children - sustainable innovation, means reducing waste, being good stewards of the planet, and expanding our capabilities to do things better and respond to challenges and outlier events better)…. Without putting too fine a point on it, most of the really important grand challenges in business and society relate to improving quality of life. Quality of life is a function of both quality of service from systems and quality of opportunities (or jobs) in systems. We have identified 13 systems that fit into three major categories – systems that focus on basic things people need, systems that focus on people’s activities and development, and systems that focus on governing. IBM’s Institute for Business Value has identified a $4 trillion challenge that can be addressed by using a system of systems approach. Employment data… 2008 A. 3+0.4+0.5+8.9+1.4+2.0=16.2 B. C.13.1+1.8=14.9 Total 150,932 (100%) Transportation (Transportation and Warehousing 4,505 (3%)) Water & Waste (Utilities 560 (0.4%)) Food & Manufacturing (Mining 717 (0.5%), Manufacturing 13,431 (8.9%), Agriculture, Forestry, Fishing 2,098 (1.4%)) Energy & Electricity Information (Information 2,997 (2%)) Construction (Construction 7,215 (4.8%)) Retail & Hospitality (Wholesale Trade 5,964 (4.0%), Retail Trade 15,356 (10.2%), Leisure and hospitality 13,459 (8.9%)) Financial & Banking/Business & Consulting (Financial activities 8,146 (5.4%), Professional and business services 17,778 (11.8%), Other services 6,333 (4.2%)) Healthcare (Healthcare and social assistance 15,819 (10.5%) Education (Educational services 3,037 (2%), Self-employed and unpaid family 9,313 (6.2%), Secondary jobs self-employed and unpaid family 1,524 (1.0%)) City Gov State Gov (State and local government 19,735 (13.1%)) Federal Gov (Federal government 2,764 (1.8%))
  • There are many opportunities for educational institutions to specialize. Better tuned competence of individuals allows graduates to hit the ground running and better fill roles in business and societal institutions…. Better general education will allow more rapid learning of an arbitrary area of specialization, and create a more flexible labor force… All service systems transform something – perhaps the location, availability, and configuration of materials (flow of things), or perhaps people and what they do (people’s activities), or perhaps the rules of the game, constraints and consequences (governance). How to visualize service science? The systems-disciplines matrix… SSMED or service science, for short, provides a transdisciplinary framework for organizing student learning around 13 systems areas and 13 specialized academic discipline areas. We have already discussed the 13 systems areas, and the three groups (flows, human activity, and governing)… the discipline areas are organized into four areas that deal with stakeholders, resources, change, and value creation. If we have time, I have included some back-up slides that describes service science in the next level of detail. However, to understand the transdisciplinary framework, one just needs to appreciate that discipline areas such as marketing, operations, public policy, strategy, psychology, industrial engineering, computer science, organizational science, economics, statistics, and others can be applied to any of the 13 types of systems. Service science provides a transdisciplinary framework to organize problem sets and exercises that help students in any of these disciplines become better T-shaped professionals, and ready for teamwork on multidisciplinary teams working to improve any type of service system. As existing disciplines graduate more students who are T-shaped, and have exposure to service science, the world becomes better prepared to solve grand challenge problems and create smarter systems that deliver modern service. Especially, where students have had the opportunity to work as part of an urban innovation center that links their university with real-world problems in their urban environment – they will have important experiences to help them contribute to solving grand challenge problems. ================================================ SSMED (Service Science, Management, Engineering and Design) Systems change over their life cycle… what is inside become outside and vice versa In the course of the lifecycle… systems are merged and divested (fusion and fission) systems are insourced and outsourced (leased/contracted relations) systems are input and output (owner ship relations) SSMED standard should ensure people know 13 systems and 13 disciplines/professions (the key is knowing them all to the right level to be able to communicate and problem-solve effectively) Multidisciplinary teams – solve problems that require discipline knowledge Interdisciplinary teams – solve harder problems, because they create new knowledge in between disciplines Transdisciplinary teams – solve very hard problems, because the people know discipline and system knowledge Ross Dawson says “Collaboration drives everything” in his talk about the future of universities…
  • Imagine cars and other products, being part of local physical supply chains. Manufacturing as a local recycling and assembly service Headline: TEDx Boston, Ryan Chin Urban Mobility (July 28, 2009)
  • In the future, robots will drive most of the cars – faster, safer, and more economically than people can. Of course, the future is already here, it is just not well distributed. The state of Nevada was the first state to allow self-driving vehicles to legally drive on their roads, as of June 22, 2011. Headline: Robot Car Helps Blind Man Get a Taco March 29th, 2012 Self-Driving Car Test – Steve Mahan
  • What are the largest and smallest service system entities that have the problem of interconnected systems? Holistic Service Systems like nations, states, cities, and universities – are all system of systems dealing with flows, development, and governance. =============\\ Nations (~100) States/Provinces (~1000) Cities/Regions (~10,000) Educational Institutions (~100,000) Healthcare Institutions (~100,000) Other Enterprises (~10,000,000) Largest 2000 >50% GDP WW Families/Households (~1B) Persons (~10B) Balance/Improve Quality of Life, generation after generation GDP/Capita Quality of Service Customer Experience Quality of Jobs Employee Experience Quality of Investment-Opportunities Owner Experience Entrepreneurial Experience Sustainability GDP/Energy-Unit % Fossil % Renewable GDP/Mass-Unit % New Inputs % Recycled Inputs
  • The reasonable questions: What is a service system? What is service science?
  • However, it is also arguable that universities are important for resiliency… Source:
  • Permission to re-distribute granted by Jim Spohrer – please request via email ( This talk provided a concise introduction to SSME+D evolving, and applying Service Science to build a Smarter Planet… Reference content from this presentation as: Spohrer, JC (2010) Presentation: SSME+D (for Design) Evolving: Update on Service Science Progress & Directions. Event. Place. Date. Permission to redistribute granted upon request to But I want to end by sharing some relevant quotes… The first you may have seen on TV or heard on the radio – it is from IBM – Instrumented, Interconnected, Intellient – Let’s build a smarter planet (more on this one shortly) Second, If we are going to build a smarter planet, let’s start by building smarter cities, (as we will see cities turn out to be ideal building blocks to get right for a number of reasons) And if we focus on cities, then the quote from the Foundation Metropolitan paints the right picture, cities learning from cities learning from cities… The next is probably the best known quote in the group “think global, act local” (we will revisit this important thought) Since all the major cities of the world have one or more universities, the next quote is of interest “the future is born in universities” And two more well known quotes about the future – the best way to predict the future is to build it, and the future is already here… it is just not evenly distributed. The next quote is an important one for discipline specialists at universities to keep in mind – real-world problems may not respect discipline boundaries (so be on guard for myopic solutions that appear too good to be true, they often are!)… Because if we are not careful, today’s problems may come from yesterday’s solutions… And since we cannot anticipate all risks or quickly resolve them once we notice them, we should probably never forget what HG Wells said - that history is a race between education and catastrophe… In a world of accelerating change, this last statement also serves as a reminder that the pace of real innovation in education is a good target for study in terms of smarter systems and modern service…
  • Sources
  • Most sciences, including physics, chemistry, and biology, study specific types of abstract entities, their interactions, and outcome universals (that occur in a wide range of contexts). From a service science perspective, cities and universities can be viewed as abstract entities known as service systems, and the compete and cooperate, in other words they engage in interactions that lead to value-cocreation outcomes… Because cities compete and cooperate, and therefore move up or down in the rankings, they can be studied as abstract entities (service systems) learning to apply knowledge to co-create value with other cities. Because universities compete and cooperate, and therefore move up or down in the rankings, they can be studied as abstract entities (service systems) learning to apply knowledge to co-create value with other universities.
  • 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.. Lavie D & L Rosenkopf (2006) BALANCING EXPLORATION AND EXPLOITATION IN ALLIANCE FORMATION, The Academy of Management Journal, 49(4). 797-818. “ 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 "run-to-transform" ratio. IBM's IT department is divided into three groups: a "run" organization that's responsible for keeping systems running smoothly; a "transform" team focused on business-process simplification and other business transformation; and an "innovate" 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. "We call it BT and IT," Hennessy says, giving business transformation equal billing to the software, systems, and services side of its mission. 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 "run-to-transform" ratio. IBM's IT department is divided into three groups: a "run" organization that's responsible for keeping systems running smoothly; a "transform" team focused on business-process simplification and other business transformation; and an "innovate" 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. "I don't see an end in sight," he says. In fact, Hennessy says that IBM's run-to-innovation ratio has improved more this year than last. "So it's actually accelerating for us," 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. "We call it BT and IT," Hennessy says, giving business transformation equal billing to the software, systems, and services side of its mission.
  • As we think about the future of cities and universities, as an optimist, I see future cities and universities better than they are today… what IBM calls a Smarter Planet is such a vision -- today cities and universities sustain our high quality of living on the planet -- we believe they do an even better job in the future – in future cities and universities, we can all do a better job of applying, creating, and transferring knowledge generation over generation… In a recent survey of young Californians, 90% said internet access was essential for a high quality of life, and 50% said access to a smart phone was essential for a high quality of life. Some would say that the middle-class person today lives better than king’s did a thousand years ago… perhaps that is true in terms of material comforts… and in 1836 Nathan Rothschild the richest many in the British Empire, perhaps the world died of an infected abscess… By the time an infected abscess caused his death in 1836, his personal net worth amounted to 0.62% of British national income.
  • There are many visions of the future – and many show innovations that improve quality of life… by improving the way we interact to co-create value with others…
  • In today’s talk we will be thinking together about the future…. What is the future? We can imagine many possibilities… I show this for two reasons: - I believe computers will soon be helping policymakers and others explore future possibilities better - I want us to be thinking about resiliency of our systems in the future, and what are the weakest links in creating resilient cities and universities… what do we do if the computers go down, when we depend more and more on technology for a high quality of life? Source:
  • Transcript

    • 1. IBM University Programs worldwide, accelerating regional development (IBM Upward) Service Science Update: Reframing the Skeleton & Reframing Progress With Universities IBM Centennial Icon of Progress Smarter Planet T-shaped People Alexandria/Egypt-Japan University of Science & TechnologyDr. James (“Jim”) C. Spohrer, Champion and Director IBM UPward(University Programs worldwide, accelerating regional development)International Society of Systems SciencesSan Jose State University, San Jose, CA, USA, Tuesday July 17, 2012 © 2012 IBM Corporation
    • 2. Today’s Talk Introduction: The Big Picture & Systems Thinking – Real World Systems (RWS): Natural Systems & Service Systems – Some Reading: Gallis, Normann, Deacon, etc. – Policymaking & Universities as Essential Institutions Reframing the Skeleton (Boulding) – General Phenomena/Ecology – Hierarchy Complexity/Evolution – Specialization/Academic Silos – Slowing Progress Reframing Progress With Universities – Bounded Rationality & Knowledge Burden – {Innovativeness, Equity, Sustainability, Resilience} – University as “Holistic Product-Service Systems” • Rehearsing Rebuilding Society • Rewinding The Tape of Life (Gould)2 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 3. ~14B Evolution of Natural Systems & Service Systems ~10KBig Bang Cities (Natural Unraveling the mystery of evolving hierarchical-complexity in new populations… (Human-Made Time World) To discover the world’s architectures and mechanisms for computing non-zero-sum World) writing (symbols and scribes, stored memory and knowledge) written laws ECOLOGY (governance and stored control) sun (energy) money earth (governed (molecules & transportable valuestored energy) stored value, “economic energy”) bacteria(single-cell life) bees (social sponges transistor division-of-labor)(multi-cell life) (routine cognitive work) universities (knowledge workersclams (neurons) printing press (books 3 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporationtrilobites (brains) 200M 60 steam engine (work)
    • 4. Co-Evolution (Michael Gallis & Associates) IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 5. Our World and Us Ha rt sP Pa art H as Smarter Service Systems = Natural Systems Complex Systems Service Systems Planetary Systems Serve Customers Better That water, electricity, transportation, education, healthcare, etc. Be ts n ef i n ef i ts Be Carbon Capabilities, Footprint Experience (Choices) (Choices) Quality of Life5 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 6. Normann: Reframing Business  Reframing Business: When the Map Changes the Landscape  Richard Normann  Value-Creating Systems6 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 7. Deacon: Incomplete Nature  Incomplete Nature: How Mind Emerged From Matter  Terrence W. Deacon  Thermodynamics -> Teleodynamics (purpose- driven system dynamics)  Purpose = map7 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 8. Spohrer et al: Service Science and Policymaking Three Frameworks for Service Research: Exploring Multilevel Governance in Nested, Networked Systems Jim Spohrer, Paolo Piciocchi, Clara Bassano Nested, Networked Systems8 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 9. University: Three Missions Nation Knowledge State/Province City/Metro – Transfer (Teaching) For-profits U-BEE Job Creator/Sustainer – Creation (Research) Cultural & Conference University Hospital Medical College Hotels Research K-12 – Application (RWS Impact) Worker Family • Commerce/Entrepreneurship Non-profits (professional) (household) • Governance/Policymaking Nested Holistic Systems – Flows Third Mission (Apply to Create Value) – Development is about U-BEEs = University-Based Entrepreneurial – Governance Ecosystems9 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 10. We Are All Part Of Nested, Networked Systems Matryoska dolls: Origin Japanese10 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 11. I am nested in at least 10 systemsLevel AKA ~No. People ~No. Entities Example0. Individual Person 1 10,000,000,000 Jim1. Family Household 10 1,000,000,000 Spohrer’s2.Neighborhood Street 100 100,000,000 Kensington3. Community Block 1000 10,000,000 Bird Land4. Urban-Zone District 10,000 1,000,000 SC Unified5. Urban-Center City 100,0000 100,000 Santa Clara6.Metro-Region County 1,000,000 10,000 SC County7. State Province 10,000,000 1,000 CA8. Nation Country 100,000,000 100 USA9. Continent Union 1,000,000,000 10 NAFTA10. Planet World 10,000,000,000 1 UN11 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 12. 8 levels of living systems (Miller, 1972)Cell ... living systems theory (LST) asserts that all of the great variety of livingOrgan entities that evolution has producedOrganism are complexly structured open systems.Group They maintain within their boundaries their thermodynamically improbableOrganization energetic states by continuous interactions with their environments.Community Inputs and outputs of both matter- energy and information are essential for living systems. The total inputs are lower in entropy and higher in information than the total outputs.Society [....] The eight levels of living systems evolved by a process of fray-out (see Figure 1) in which the larger higher-Supranational level systems developed increasingly complex components in eachSystem subsystem than those below them in the hierarchy of living systems. [....] Fray-out can be likened to the unraveling of a ships cable12 Service Systems, Natural Systems April 20, 2012 © 2012 David Ing
    • 13. General System Theory:The Skeleton of Science (Boulding, 1956) Two possible approaches to organization of general systems theory suggest themselves, which are to be thought of as complementary rather than competitive, or at least as two roads each of which is worth exploring. The first approach is The second approach is to look over to arrange the empirical universe and the empirical fields pick out in a hierarchy of complexity certain general phenomena of organization of which are found their basic “individual” or in many different disciplines, unit of behavior, and and to seek to build up try to develop an abstraction general theoretical models appropriate to each. relevant to those phenomena.13 Service Systems, Natural Systems April 20, 2012 © 2012 David Ing
    • 14. General System Theory:The Skeleton of Science (Boulding, 1956) Two possible approaches The first approach ... The second approach ... pick out in a hierarchy of complexity certain general phenomena ... of organization ... Some examples of the first approach .... … the interaction of population can be discussed in terms of … may competitive, complementary or parasitic relationships ... ultimately lead to … “behavior” of each individual is “explained” by the structure and something arrange of the lower individuals of which it is composed, or by like a certain principles of equilibrium or homeostasis according to general which “states” of the individual are “preferred”. field Some growth phenomena can be dealt with in terms of relatively theory of simple population models .... At the more complex levels, dynamics structural problems become dominant and the complex and interrelationships between growth and form are the focus of interaction interest. Communication and information processes … are unquestionably . essential in the development of organization, both in the biological and social world. This, however,14 Service Systems, Natural Systems April 20, 2012 is © 2012 David Ing a long
    • 15. General System Theory:The Skeleton of Science (Boulding, 1956) Two possible approaches The first approach ... The second approach ... pick out in a hierarchy of complexity certain general phenomena ... of organization ... … more systematic, leading to a “system of systems”.(I) … first level … static structure … level of frameworks. One(ii) … simple dynamic system with predetermined, necessary motions … level of advant clockworks. age …(iii) … control mechanism or cybernetic system … level of the thermostat. it gives us(iv) … “open system,” or self-maintaining structure … life begins to differentiate some itself from not-life … level of the cell. idea of(v) … genetic-societal level … typified by the plant. the(vi) … “animal” level, characterized by increased mobility, teleological behaviour present and self-awareness. gaps in(vii) … “human” level … self-consciousness … different from mere awareness. both theoreti(viii) … symbolic images and behavior based on them … social organization. cal and(ix) … transcendental systems … ultimates and absolutes and the inescapable empiric unknowables ... al15 Service Systems, Natural Systems April 20, 2012 knowled © 2012 David Ing ge.
    • 16. T-shaped professionalsdepth & breadth Many cultures Many disciplines Many systems (understanding & communications) BREADTH Deep in one discipline Deep in one system Deep in one culture DEPTH (analytic thinking & problem solving)1616 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 17. Specialization has benefits Adam Smith: David Ricardo: Division of Labor Comparative Advantage17 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 18. Knowledge: Individuals & Society Herbert Simon: Ben Jones: Bounded Rationality Burden of Knowledge18 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 19. Technology has a cost  “The burden of knowledge” Cesar Hidalgo: Societal Knowledge19 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 20. The limits of our individual knowledge20 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 21. Resiliency: Capability to rebuild (and recycle) rapidly China Broad Group: 30 Stories in 15 Days21 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 22. Four measures  Innovativeness  Equity  Sustainability  Resiliency22 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 23. Sustainability/Resilience & Innovation: Local-p global-i supply chains World as System of Systems World (light blue - largest) Nations (green - large) States (dark blue - medium) Cities (yellow - small) Universities (red - smallest) Cities as System of Systems Developed Market -Transportation & Supply Chain Nations -Water & Waste Recycling (> $20K GDP/Capita) -Food & Products ((Nano) -Energy & Electricity -Information/ICT & Cloud (Info) -Buildings & Construction Emerging Market -Retail & Hospitality/Media & Entertainment Nations -Banking & Finance (< $20K GDP/Capita) -Healthcare & Family (Bio) -Education & Professions (Cogno) -Government (City, State, Nation) Nations: Innovation Opportunities - GDP/Capita (level and growth rate) - Energy/Capita (fossil and renewable)23 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 24. Universities Worldwide Accelerating Regional Development “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.”24 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 25. Cities: land-population-energy-carbon Carlo Ratti: Senseable Cities25 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 26. What improves Quality-of-Life? Service System Innovations * = US Labor % in 2009. A. Systems that focus on flow of things that humans need (~15%*) 20/10/10 1. Transportation & supply chain 2/7/4 2. Water & waste recycling/Climate & Environment2/1/1 7/6/1 3. Food & products manufacturing 1/1/0 4. Energy & electricity grid/Clean Tech 5/17/27 5. Information and Communication Technologies (ICT access) B. Systems that focus on human activity and development (~70%*) 1/0/2 6. Buildings & construction (smart spaces) (5%*) 24/24/1 7. Retail & hospitality/Media & entertainment/Tourism & sports (23%*) 2/20/24 7/10/3 (wealthy) (21%*) 8. Banking & finance/Business & consulting 5/2/2 9. Healthcare & family life (healthy) (10%*) 10. Education & work life/Professions & entrepreneurship (wise) (9%*) 3/3/1 C. Systems that focus on human governance - security and opportunity (~15%*) 0/0/0 11. Cities & security for families and professionals (property tax) 1/2/2 12. States/regions & commercial development opportunities/investments (sales tax) 0/19/0 13. Nations/NGOs & citizens rights/rules/incentives/policies/laws (income tax) Quality of Life = Quality of Service + Quality of Jobs + Quality of Investment-Opportunities “61 Service Design 2010 (Japan) / 75 Service Marketing 2010 (Portugal)/78 Service-Oriented Computing 2010 (US)”26 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 27. Systems-Disciplines Framework: Depth & Breadth systems Systems that focus on flows of things Systems that support people’s activities Systems that govern transportation & ICT & retail & healthcare food & education city state nation disciplines supply chain water & energy products & electricity cloud building & hospitality banking & family &work secure scale laws waste construction & finance behavioral sciences Customerstakeholders e.g., marketing Provider management sciences e.g., operations Observe Stakeholders (As-Is) political sciences Authority e.g., public policy learning sciences Competitors e.g., game theory and strategy cognitive sciences People e.g., psychologyresources system sciences Technology e.g., industrial eng. information sciences Observe Resource Access (As-Is) Information e.g., computer sci organization sciences Organizations e.g., knowledge mgmt History social scienceschange e.g., econ & law (Data Analytics) decision sciences Imagine Possibilities (Has-Been & Might-Become) Future e.g., stats & design (Roadmap) run professions Run e.g., knowledge worker Transformvalue (Copy) transform professions e.g., consultant Realize Value (To-Be) Innovate innovate professions (Invent) e.g., entrepreneur 27 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 28. Manufacturing as a local recycling & assembly service Ryan Chin: Urban Mobility28 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 29. Self-driving cars Steve Mahan: Test “Driver”29 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 30. Regional Competitiveness and U-BEEs:Where imagined possible worlds become observable real worlds NationUniversities/ “The future is already State/Province here (at universities),Regions City/RegionCalculus (Cambridge/UK) For-profits it is just not evenlyPhysics (Cambridge/UK) U-BEEComputer Science (Columbia/NY) distributed.”Microsoft (Harvard/WA) Job Creator/SustainerYahoo (Stanford/CA) Hospital Cultural & UniversityGoogle (Stanford/CA) Medical Conference CollegeFacebook (Harvard/CA) Research Hotels K-12 “The best way to Non-profits Worker (professional) Family (household) predict the future is to (inspire the next generation of students to) build it better.” U-BEEs = University-Based Entrepreneurial Ecosystems, City Within City 30 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 31. What is service science? A service system? The ABC’s? Design/ Cognitive Science Systems Engineering “service science is “a service system is athe transdisciplinary study of human-made system to improve service systems & provider-customer interactions value-cocreation” and value-cocreation outcomes, by dynamically configuring resource Marketing access via value propositions, most often studied by many disciplines, one piece at a time.” The ABC’s: The provider (A) and a customer (B) transform a target (C) Computer Science/ Artificial Intelligence Economics & Law Operations 31 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 32. A Framework for Global Civil Society  Daniel Patrick Moynihan said nearly 50 years ago: "If you want to build a world class city, build a great university and wait 200 years." His insight is true today – except yesterdays 200 years has become twenty. More than ever, universities will generate and sustain the world’s idea capitals and, as vital creators, incubators, connectors, and channels of thought and understanding, they will provide a framework for global civil society. – John Sexton, President NYU32 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 33. Visit IBM Almaden Research Center, San Jose, CA Upcoming Conferences – July 2012 • ISSS San Jose • HSSE San Francisco More Information – Blog • – Twitter • @JimSpohrer – Presentations • – Email • 33 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 34. Thank-You! Questions? “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” – “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.” – GeddesDr. James (“Jim”) C. SpohrerInnovation Champion &Director, IBM University Programs & open worldwide entrepreneurship research (IBM UPower) 34 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 35. IBM’s Leadership Changes IBM has 426,000 employees worldwide 2011 Financials 22% of IBM’s revenue  Revenue - $ 106.9B in Growth Market  Net Income - $ 15.9B countries; growing at 11% in 2011  EPS - $ 13.44  Net Cash - $16.6B More than 40% of IBM’s workforce conducts business away from an office 55% of IBM’s WorkforceIBM operates in 170 is New to the company incountries around the globe the last 5 years Number 1 in patent generation for 19100 Years of Business consecutive years ;& Innovation in 2011 6,180 US patents awarded in 2011 The Smartest Machine On Earth 9 time winner of the 5 Nobel President’s National Laureates Medal of Technology & Innovation - latest “Let’s Build a Smarter award for Blue Gene Planet" Supercomputer 35 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 36. AEIOU of sciences – service science  Abstract Entities – service systems – Learning to apply knowledge to compete & cooperate  Interactions – value propositions  Outcome Universals – value-cocreation (or not) – Increasing capabilities and quality-of-life for individuals Cities compete & cooperate Universities compete & cooperate36 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 37. ~250 years of infrastructure transformations Installation Crash Deployment Irruption Frenzy Synergy Maturity • Formation of Mfg. industry 1 The I ndust r i al 1771 Panic • Repeal of Corn Laws 1829 Revol ut i on 1797 opening trade • Standards on gauge, time A ge of St eam Panic 2 and Rai l ways 1829 1847 • Catalog sales companies 1873 • Economies of scale A ge of St eel , Depressio • Urban development 3 El ect r i ci t y 1875 n • Support for interventionism 1920 1893 and Heavy Engi neer i ng • Build-out of Interstate A ge of Oi l , Crash 4 A ut omobi l es 1908 1929 highways 1974 • IMF, World Bank, BIS and Mass Pr oduct i on Coming period of A ge of I nf or mat i on Credit Crisis 5 and 1971 2008 Institutional Adjustment and Production Capital Tel ecommuni cat i ons Source: Carlota Perez, Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages; (Edward Elar Publishers, 2003).37 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 38. ~100 years of US job transformations Source: US Bureau of Economic Analysis; McKinsey Global Institute Analysis38 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 39. We need better frameworks, theories, and models of… Four I’s Cultural Information – Infrastructure (Quality-of-Life Measures) – Individuals – Institutions – Information Individuals Institutions Four Measures (Skills) (Rules, Jobs) – Innovativeness – Equity – Sustainability Societal Infrastructure – Resiliency (Technologies & Environment)39 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 40. Service systems entities learn to apply knowledge Learning To Apply Knowledge Do It Invent It Exploitation Exploration Run Transform Innovate Operations L Internal Incremental Maintenance Copy It External Radical Insurance Interaction Super-Radical March, J.G. (1991) Exploration and exploitation in organizational learning. Organizational Science. 2(1).71-87. Sanford, L.S. (2006) Let go to grow: Escaping the commodity trap. Prentice Hall. New York, NY.40 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 41. California Human Development Report 2011:From meaning-of-life to quality-of-life…. IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 42. Imagining quality-of-life innovations…42 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 43. What is the future? We can imagine many possibilities… Kurzweilai.net43 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation