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Ten reasons service science matters more than ever

Ten reasons service science matters more than ever

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  • Permission to use granted on request:spohrer@us.ibmcomReference this presentation:
  • Spohrer, J., Fodell, D., & Murphy, W. (2012). Ten Reasons Service Science Matters to Universities. EDUCAUSE Review, 47(6), 52-54.
  • Maglio, P. P., Srinivasan, S., Kreulen, J. T., & Spohrer, J. (2006). Service systems, service scientists, SSME, and innovation. Communications of the ACM, 49(7), 81-85.
  • Vargo, S. L., & Akaka, M. A. (2009). Service-dominant logic as a foundation for service science: clarifications. Service Science, 1(1), 32-41.
  • Vargo, S. L., & Lusch, R. F. (2011). It's all B2B… and beyond: Toward a systems perspective of the market. Industrial Marketing Management, 40(2), 181-187.
  • If some entity architectures (EN 􏰄 and frameworks (FN 􏰄 are better than others, in these respects, then profes- sionals solving real-world problems (PRW 􏰄 might benefit. Spohrer, J., Piciocchi, P., & Bassano, C. (2012). Three frameworks for service research: exploring multilevel governance in nested, networked systems. Service Science, 4(2), 147-160.
  • Service science matter more than even because:Growth of service sector GDP and Labor ForceLet’s get as good at service innovation as we are at product and process innovation. Service quality and service productivity become important measures.http://en.wikipedia.org/wiki/Service_economy
  • GDL = Goods-Dominant Logic vs SDL = Service-Dominant LogicCitation: Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of marketing, 1-17.
  • Spohrer’s “Order of Magnitude Observation: Unique Time in Human History”There is a market for a few organizations and types of organizations that try to please everyone….HAT = http://hubofallthings.wordpress.comPRISM = http://en.wikipedia.org/wiki/PRISM_(surveillance_program)Forbes 2000 = http://en.wikipedia.org/wiki/PRISM_(surveillance_program)
  • HSS = Holistic Service Systems1. Service EconomyGrowth of service sector in GDP and Labor of nations2. ServitizationGrowth of revenue from service offerings of businesses3. GlobalizationFranchises and outsourcing, taxation, immigration, exports, 4. DemographicsAging population, young populations, etc.5. UrbanizationGrowth of urban population, specialization, higher education, etc.6. Social ServicesUrban populations need more social services, crime, poverty, mental illness, etc.7. Financial ServicesWealth effect, families outsource mode, business outsource more8. IT Platforms and ServicesFrom on-line retail to social media, gamification, big data, platforms,, to outsourcing and hyperspecializaion, self-service, digital business models, open data9. B2B ServicesGrowth in number of businesses business, entrrepreneurship, open innovation10. Service innovation needsOvercome Baumol’s disease of low productivity in government, health, education, etc.
  • Multilevel nested, networked holistic service systems (HSS) that provision whole service (WS) to the people inside them. WS includes flows (transportation, water, food, energy, communications), development (buildings, retail, finance, health, education), and governance (city, state, nation). 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 WWFamilies/Households (~1B)Persons (~10B)Balance/ImproveQuality of Life, generation after generationGDP/CapitaQuality of ServiceCustomer ExperienceQuality of JobsEmployee ExperienceQuality of Investment-OpportunitiesOwner ExperienceEntrepreneurial ExperienceSustainabilityGDP/Energy-Unit% Fossil% RenewableGDP/Mass-Unit% New Inputs% Recycled Inputs
  • Ricardo’s law of association of comparative advantage (beyond division of labor, includes learning curve effects – do more of what you do best, less of what you do least well)Outsourcing and self-service upward spiral of capabilities (employee productivity improvements lead to customer-self-service)Improve strongest and weakest network links capabilities (swim-lane competitions accelerate learning and balance routine (boredom) and challenge (anxiety))
  • - What is ISSIP?ISSIP = the International Society of Service Innovation ProfessionalsISSIP is pronounced I-ZIPISSIP was founded by industry and academic collaborators to promote service innovations for an interconnected world.AmmarRayes, a Cisco DE, is the founding President of ISSIP.Charlie Bess, an HP Fellow, is the founding Vice President of ISSIP.Jeff Welser, Director IBM Almaden Service Research, is the VP elect for ISSIP.I am one of the founding Board members, as well as chair of the ISSIP SIG Education and Research.ISSIP SIG Education and Research aims to increase the quantity and quality of service science related courses and degree programs.ISSIP SIG Education and Research aims to increase the number of T-shaped service innovators in business and society.
  • - What is ISSIP?ISSIP = the International Society of Service Innovation ProfessionalsISSIP is pronounced I-ZIPISSIP was founded by industry and academic collaborators to promote service innovations for an interconnected world.AmmarRayes, a Cisco DE, is the founding President of ISSIP.Charlie Bess, an HP Fellow, is the founding Vice President of ISSIP.Jeff Welser, Director IBM Almaden Service Research, is the VP elect for ISSIP.I am one of the founding Board members, as well as chair of the ISSIP SIG Education and Research.ISSIP SIG Education and Research aims to increase the quantity and quality of service science related courses and degree programs.ISSIP SIG Education and Research aims to increase the number of T-shaped service innovators in business and society.
  • - What is a service platform?A service platform provides access to places and entities to scale the benefits of new knowledge globally and rapidly.IBM’s Watson natural language and question answering capability will become available for smart phone app developers as a service platform.Watson specializes in ranking queries that related semantic classes and instances, so for the classes “Explorers” and “Dates” - the instance “Columbus” is highly correlated with “1492″ and less so with “1506″ and “1451″.IBM Smarter Cities Intelligent Operations Center is a service platform for scaling business solutions that improve the performance of urban regions.IBM itself can be viewed as a service platform for scaling businesses and solutions with some 120 acquisitions in the last ten years alone.Pharmaceutical companies be viewed as service platforms for scaling the benefits of new molecules.Franchises are service platforms for scaling the benefits of new knowledge globally and rapidly.Cities with high use airports can become negative-service platforms when they scale human viruses negative consequences globally and rapidly.
  • - What is service science?ISSIP embraces the service-dominant-logic definition of service.Service is defined, not as the tertiary economic sector, but more generally as the application of knowledge for mutual benefits.Service innovations scale the benefits of new knowledge, globally and rapidly (and for businesses profitably).Service innovations includes technology platforms (e.g., smart phones), organizational platforms (e.g., franchises) and others platforms for scaling.Service science is the rigorous study of service systems and value co-creation phenomena, both collaborative and competitive mechanisms.Value co-creation is a kind of win-win outcome – for example, when customers build their own furniture they can get higher quality components, but lower costs.Performance measures of service systems include quality, productivity, compliance, and innovativeness.Types of service systems entities include people, businesses, universities, cities, states, and nations.Performance measures of a service ecology include resilience, sustainability, competitive parity, and quality-of-life (learning rates & knowledge burden).
  • - What is a T-shaped professional?T-shaped professionals have both depth and breadth.An I-shaped professional may be an expert, but lacks skills for interacting with other disciplines, sectors, and/or regions/cultures.Pi-shapes and M-shapes have depth in two or three areas, but most employees today are I-shapes.An organization or nation with more T-shapes is more likely to have higher performance teamwork as well as more boundary spanning innovations.The T-shaped metaphor has been used for at least a couple decades, but ISSIP is working on making the concept more rigorous.=======From I to T to Pi-shapes … and beyond! IBM needs graduates who can work on multidisciplinary, multisector, multicultural teams… T-shapes have depth and breadth … Disciplines from computer science to marketing to social sciences to arts & humanitiesSectors from transportation to energy to healthcare to governmentCultures from US to Europe to China to India to Latin America to Africa to Middle East and more!!
  • - How is this related to your work at IBM with universities?At IBM I helped start IBM’s Venture Capital Group, Service Research area in IBM Research, and now run IBM’s University Programs worldwide.IBM University Programs is concerned with the 6 R’s – research, readiness (skills), recruiting, revenue (universities are like small cities), responsibility, and regions.Part of IBM Smarter Planet strategy is to help universities increase the quantity and quality of start-ups (Smart Camps).IBM also wants to help start-ups scale up globally and rapidly.Universities are the most important drivers of innovation in a knowledge economy, and more and more startups come from universities.Many businesses instead of hiring a student with a new degree, would rather hire that same student after they have entrepreneurial experience, even if the start-up failed.Most start-ups fail, but they create T-shaped people – which is what businesses want to improve performance of teams and boundary spanning innovations.IBM acquires about one company a month for last ten years (see the IBM M&A wikipedia page)By one estimate, 2/3 of these acquisitions started in a university-based entrepreneurial ecosystem.SSME (Service Science Management and Engineering), Smarter Planet, Big Data Analytics, Data Science, Smarter Cities, and Urban Science – are all related.IBM University Programs uses the 6 R’s to advance IBM’s Smarter Planet strategy, and increase the number of T-shaped innovators.
  • Permission to use granted on request to: spohrer@us.ibm.comReference presentation as:Spohrer, JC (2013) Data Science + Urban Science + Service Science = Smarter Planet. Milano, Italy. Monday June 17, 2013. URL: http://www.slideshare.net/spohrer/data-urban-service-science-20130617-v2
  • The sciences that study systems that nature has evolved do not include the word “science”The sciences that study systems that our species has designed do include the word “science”Complexity Science, Organization Science, Social Sciences study both naturally evolved and human designed systemsSystems Science is perhaps the most general of the sciences – and studies all types of systems from a transdisciplary perspective.Both sciences and applied arts are driven by imagination, data and experience play a role, but imagination (i.e., creativity) is the fundamental driver of progress (i.e., better explanation of systems) and change (i.e., better change that does more with less).
  • http://en.wikipedia.org/wiki/Data_sciencePagerank (map-reduce & hadoop) – helping people find what they are most likely looking forRecommendation systems – helping people find what they most likely want to buy
  • 35 Zettabytes - IDC
  • http://www.santafe.edu/research/cities-scaling-and-sustainability/Cities get larger wealth creation and innovation get faster2x size in city 15% increase wealth, innovation, negative effectsCities shrink time and space, and concentrate and accelerate social interactionsNetwork constraints …
  • Ricardo’s law of association of comparative advantage (beyond division of labor, includes learning curve effects – do more of what you do best, less of what you do least well)Outsourcing and self-service upward spiral of capabilities (employee productivity improvements lead to customer-self-service)Improve strongest and weakest network links capabilities (swim-lane competitions accelerate learning and balance routine (boredom) and challenge (anxiety))
  • Why service scientists are interested in universities…. They are in many ways the service system of most central importance to other service systems…Graph based on data from Source: http://www.arwu.org/ARWUAnalysis2009.jspAnalysis: Antonio Fischetto and Giovanna Lella (URome, Italy) students visiting IBM AlmadenDynamicgraphybased on Swissstudents work:http://www.upload-it.fr/files/1513639149/graph.htmlUS isstill “off the chart” – China projected to be “off the chart” in lessthan 10 years: US % of WW Top-RankedUniversities: 30,3 % US % of WW GDP: 23,3 %CorrelatingNation’s (2004) % of WW GDP to % of WW Top-Ranked UniversitiesUS isliterally “off the chart” – butincluding US make high correlationevenhigher: US % of WW Top-RankedUniversities: 33,865 % US % of WW GDP: 28,365 %
  • http://www.bls.gov/emp/ep_chart_001.htmhttp://theeconomiccollapseblog.com/archives/student-loan-debt-hell-21-statistics-that-will-make-you-think-twice-about-going-to-collegePosted below are 21 statistics about college tuition, student loan debt and the quality of college education in the United States....#1 Since 1978, the cost of college tuition in the United States has gone up by over 900 percent.#2 In 2010, the average college graduate had accumulated approximately $25,000 in student loan debt by graduation day.#3 Approximately two-thirds of all college students graduate with student loans.#4 Americans have accumulated well over $900 billion in student loan debt. That figure is higher than the total amount of credit card debt in the United States.#5 The typical U.S. college student spends less than 30 hours a week on academics.#6 According to very extensive research detailed in a new book entitled "Academically Adrift: Limited Learning on College Campuses", 45 percent of U.S. college students exhibit "no significant gains in learning" after two years in college.#7 Today, college students spend approximately 50% less time studying than U.S. college students did just a few decades ago.#835% of U.S. college students spend 5 hours or less studying per week.#950% of U.S. college students have never taken a class where they had to write more than 20 pages.#1032% of U.S. college students have never taken a class where they had to read more than 40 pages in a week.#11 U.S. college students spend 24% of their time sleeping, 51% of their time socializing and 7% of their time studying.#12 Federal statistics reveal that only 36 percent of the full-time students who began college in 2001 received a bachelor's degree within four years.#13Nearly half of all the graduate science students enrolled at colleges and universities in the United States are foreigners.#14 According to the Economic Policy Institute, the unemployment rate for college graduates younger than 25 years old was 9.3 percent in 2010.#15One-third of all college graduates end up taking jobs that don't even require college degrees.#16 In the United States today, over 18,000 parking lot attendants have college degrees.#17 In the United States today, 317,000 waiters and waitresses have college degrees.#18 In the United States today, approximately 365,000 cashiers have college degrees.#19 In the United States today, 24.5 percent of all retail salespersons have a college degree.#20 Once they get out into the "real world", 70% of college graduates wish that they had spent more time preparing for the "real world" while they were still in school.#21Approximately 14 percent of all students that graduate with student loan debt end up defaulting within 3 years of making their first student loan payment.http://www.citytowninfo.com/career-and-education-news/articles/georgetown-university-study-shows-a-bachelors-degree-in-stem-pays-off-11102002About 65 percent of individuals with bachelor's degrees in STEM subjects commanded greater salaries than those with master's degrees in non-STEM fields, according to a Georgetown press release. Likewise, 47 percent of college graduates with bachelor's degrees in STEM fields earn higher wages than those with doctoral degrees in non-STEM subjects.
  • Edu-Impact.Com: Growing Importance of Universities with Large, Growing EndowmentsRecently visited Yang building at StanfordOne of the greenest buildings on the planetBut if it does not evolve in 20 years it will not be the greenest buildingVisited 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…
  • 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 WWFamilies/Households (~1B)Persons (~10B)Balance/ImproveQuality of Life, generation after generationGDP/CapitaQuality of ServiceCustomer ExperienceQuality of JobsEmployee ExperienceQuality of Investment-OpportunitiesOwner ExperienceEntrepreneurial ExperienceSustainabilityGDP/Energy-Unit% Fossil% RenewableGDP/Mass-Unit% New Inputs% Recycled Inputs
  • The Up-Skill CyclePeople flow through the system of entities… As they flow they are upskilled….Entities:Mature IBM Business Unit: From mature-business unitAcquired-IBM Business Unit: From IBM “acquired company” business unitUniversity: From university roleVenture: From venture that spun off from a universityOther: None of the aboveOne possible pathA long-time IBMer is in an IBM business unit doing, say “finance”The IBMer’s business unit receives the 5% annual budget cutThe IBMer moves to a new IBM acquisition to help the new acquisition adopt/learn IBM finance proceduresAfter that the IBMer moves to a university as an IBMer on CampusThe IBMer might work in a department/discipline, in the university incubator, or a university start-up, or even be a student at the universityEventually the IBMer signs up to be pat of a new venture that is spinning off from the universityThe new venture is aligned with IBM via HW, SW, or other IBM offerings/strategyIBM helps scale up the new venture globalIBM might decide to acquire the new ventureThe IBM in the acquired new venture helps the new venture become a high growth business unit of IBMAfter the new IBM business unit asymptotes on revenue and profit improves, it has become a mature business unitNow the IBMer is back in a mature business unit, and the cycle repeats…A long-time IBMer is in an IBM business unit doing, say “finance”The IBMer’s business unit receives the 5% annual budget cutTransitions:Self-loop IBMer stays in mature business unitIBMer transitions from mature business unit to a newly acquired IBM acquisitionIBMer transitions from mature business unit to a university roleIBMer transitions from mature business unit to a new venture that spun off from a universityIBMer transitions from mature business unit to an entity not mentioned above (some where else)
  • Big Data in business has grown over 60 years from ~10MB to 100PB or a billion times :MB -> GB -> TB –> PB All that Big Data from 1950 can easily be handled by one person’s smart phoneService science is now taught in over 500 universities that we know of and probably at least 2x more that we don’t know about…The number of service science conferences and service science related journals has also expanded
  • From IBM Christopher BishopGlobally interconnectedData from embedded devicesDriving new and evolving business models
  • From IBM Christopher Bishop
  • Synopsis:All the programs fall within the 6 R's of IBM University Programs (IBM UP)... R = Research (Awards: University Relations) R = Readiness (Skills: Academic Initiatives) R = Recruiting (Internships & Jobs: IBM Global Centers) R = Revenue (Solutions: Super-Computers to Asset/Risk Management) R = Responsibility (Volunteers: On Campus IBMers & Smarter Cities Challenge) R = Regions (Startups & Jobs: Smart Camp Challenge)Examples:Our best university relationships are when all 6 R's are active - some examples... NYU Center for Urban Science and Progress: http://cusp.nyu.edu/partners/ OSU Big Data Analytics Center: http://www.forbes.com/sites/tomgroenfeldt/2012/11/29/ibm-and-ohio-state-university-get-analytical/ KIT Karlsruhe Service Research Institute: http://www.ksri.kit.edu/Default.aspx?PageId=273&lang=enIBM University Programs (the 6 R’s of IBM UP) include:1. Research (ibm.com/university/awards)2. Readiness (ibm.com/developerworks/university/academicinitiative/)3. Recruiting (ibm.com/jobs or ibm.com/developerworks/university/students/)4. Revenue (ibm.com/education and ibm.com/systems)5. Responsibility (ibm.com/responsibility, ibm.com/ibm/ondemandcommunity and en.wikipedia.org/wiki/World_Community_Grid)6. Regions (ibm.com/partnerworld/isv/startup)Local “On Campus IBMers”(where available) help with the above…
  • http://en.wikipedia.org/wiki/Gamification
  • http://en.wikipedia.org/wiki/Service_economy
  • http://en.wikipedia.org/wiki/Social_media
  • http://en.wikipedia.org/wiki/Big_data
  • http://en.wikipedia.org/wiki/Service-oriented_modeling
  • http://en.wikipedia.org/wiki/Franchising
  • Redirected to Service Economyhttp://en.wikipedia.org/wiki/Servitization_of_products_business_model
  • http://en.wikipedia.org/wiki/Export
  • Redirecthttp://en.wikipedia.org/wiki/Cybersecurity
  • “As noted in exhibit 3.1 under axiom-1 (FP1), “service is the fundamental basis of exchange,” we have four derivative FP’s: FP2, “indirect exchange masks the fundamental basis of exchange; FP3, “goods are distribution mechanisms for service provision; FP4, “operant resources are the fundamental source of competitive advantage; FP5, “all economies are service economies”. Under axiom-2 (FP6) “the customer is always a co-creator of value” there are two derivative FP’s: FP7, “the enterprise cannot deliver value, but only offer value propositions; and FP8, “a service-centered view is inherently customer oriented and relational. Axiom-3 (FP9), “all economic and social actors are resource integrators” and axiom-4 (FP10), “Value is always uniquely and phenomenologically determined by the beneficiary” stand alone without direct derivative FP’s. The structure and the order of the FP’s under the four axioms are used primarily for pedagogical purposes. As you become more familiar with the FP’s and all of their intricacies you will begin to see how all of the FP’s relate to each other but with the four axioms as the most foundational. In brief, six FP’s are nested under four axioms. “

Matters more than ever 20130618 v3 Matters more than ever 20130618 v3 Presentation Transcript

  • Ten Reasons WhyService Science MattersMore Than EverJim SpohrerDirector IBM University ProgramsJune 18, 2013
  • Importance & Opportunity• Why is this important?– Ten Reasons Service Science Matter More Than Ever• There is a real opportunity to shift a lot ofprofessionals (academics, industry, government,social sector, etc.) from thinking in GDL (GoodsDominant Logic) towards SDL (Service DominantLogic)– International Society of Service InnovationProfessionals (http://www.issip.org)– ISSIP (pronounced I-ZIP) will create whitepapers
  • EDUCAUSE Review ArticleSpohrer, J., Fodell, D., & Murphy, W. (2012). TenReasons Service Science Matters to Universities.EDUCAUSE Review, 47(6), 52-54.
  • CACM Article• Maglio, P. P., Srinivasan, S., Kreulen, J. T., &Spohrer, J. (2006). Service systems, servicescientists, SSME, and innovation.Communications of the ACM, 49(7), 81-85.
  • Service Science Article• Vargo, S. L., & Akaka, M. A. (2009). Service-dominant logicas a foundation for service science: clarifications. ServiceScience, 1(1), 32-41.
  • IMM Article• Vargo, S. L., & Lusch, R. F. (2011). Its all B2B…and beyond: Toward a systems perspective ofthe market. Industrial MarketingManagement, 40(2), 181-187.
  • Service Science ArticleSpohrer, J., Piciocchi, P., & Bassano, C. (2012). Three frameworks for service research: exploringmultilevel governance in nested, networked systems. Service Science, 4(2), 147-160.If some entity architectures (EN and frameworks (FN) are better than others, then professionals workingto solve real-world problems (PRW) might benefit, and generate better sets of recommendations (RE).
  • Goods-Dominant Logic (GDL):Service Economy
  • 10 GDL Reasons• 1. Service Economy– Growth of service sector in GDP and Labor of nations• 2. Servitization– Growth of revenue from service offerings of businesses• 3. Globalization– Franchises and outsourcing, taxation, immigration, exports,• 4. Demographics– Aging population, young populations, etc.• 5. Urbanization– Growth of urban population, specialization, higher education, etc.• 6. Social Services– Urban populations need more social services, crime, poverty, mental illness, etc.• 7. Financial Services– Wealth effect, families outsource mode, business outsource more• 8. IT Platforms and Services– From on-line retail to social media, gamification, big data, platforms,, to outsourcing andhyperspecializaion, self-service, digital business models, open data• 9. B2B Services– Growth in number of businesses business, entrrepreneurship, open innovation• 10. Service innovation needs– Overcome Baumol’s disease of low productivity in government, health, education, etc.
  • How to generate ten SDL reasons?• FP4 Operant Resources & FP9 Resource Integration– Operant resources are the fundamental source of competitive advantage– All social and economic actors are resource integrators• From an upcoming Vargo & Lusch Publication:– “Not only do business enterprises and households engage in resourceintegration, transformation, and exchange of service, but governmentagencies, schools, and a host of other nonprofit organizations do so as well.”– “As a broad, abstract perspective, businesses, households, and otherorganizations engage in the acquisition, integration, and transformation ofresources to create new resources and then use these new resources inexchange with other actors to co-create value. This perspective begins todirect attention to viewing businesses, households, and other organizations,including nonprofits and governments, as essentially and abstractly identical.This insight led us to define exchange and exchange systems in terms of actor-to-actor (A2A) interactions.”
  • “Order of Magnitude Observation”:Unique Time in Human HistoryType:ClassesOrder Tokens:InstancesIndivid-ualsInsti-tutionsInfra-structureInform-ationPlanet 10**0 1 10B Forbes 50Continent 10**1 10 1B F 1000Nation 10**2 100 100M F 2000 PRISMState 10**3 1000 10M utilities nuclearMetro 10**4 10,000 1M uni’sCity 10**5 100,000 100,000 colleges gasDistrict 10**6 1M 10,000 hospitalsCommunity 10**7 10M 1000 schoolsStreet 10**8 100M 100 parksFamily 10**9 1B 10 solar HATPerson 10**10 10B 1 Soc. Med.
  • GDL & SDLGDL Reasons: Sector Transformation,adopting new technologiesSDL Reasons: Entity’s CompetitiveStrategy, Competing for CollaboratorsService Economy Planet-wide ActorsServitization/XaaS (Everything asaService)Continental Unions as Actors (HSS)Globalization Nations as Actors (HSS)Demographics States as Actors (HSS)Urbanization Metros/Counties as Actors (HSS)Social Services Cities as Actors (HSS)Financial Services Districts as Actors (HSS)IT Platforms & Services Communities as Actors (HSS)B2B Services Streets/Apart. Buildings as Actors (HSS)Service Innovation Needs Families as Actors (HSS)Individuals as Actors
  • Observations• Every nation/state/city-university I talk to:– We need help creating high skill, high pay jobs of thefuture.– We need help keeping our top talent from moving awayafter graduation from university• Every business I talk to:– We need help scaling the benefits of new knowledge andinnovation globally, rapidly, profitably– We need help making our employees and ecosystem moreinnovative– We would rather hire people with some entrepreneurialexperience (even if failed) than recent graduates, with noentrepreneurial experience.
  • Holistic Service Systems (HSS)6/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)14http://www.service-science.info/archives/1056NationState/ProvinceCity/RegionUniversityCollegeK-12Cultural &ConferenceHotelsHospitalMedicalResearchWorker(professional)Family(household)For-profitsNon-profitsU-BEEJob Creator/SustainerU-BEEs = University-Based Entrepreneurial Ecosystems“The future is alreadyhere (at universities),it is just not evenlydistributed.”“The best way topredict the futureis to (inspire the nextgeneration of studentsto) build it better.”“Multilevel nested,networkedholistic servicesystems (HSS)that provisionwhole service (WS) tothe people inside them.WS includesflows (transportation,water, food, energy, comdevelopment (buildings,retail ,finance, health,education),and governance (city,state, nation). ”
  • Service Science• The transdisciplinary study of service, theapplication of knowledge for mutual benefits(value co-creation phenomena), in an ecologyof interacting many-to-many, nested,networked viable service system entities.
  • www.ISSIP.org• Pronounced I-ZIP• International Society ofService InnovationProfessionals• Service is the applicationof knowledge for mutualbenefitis (value co-creation phenomena)• Service innovations scalethe benefits of newknowledge globally andrapidly.6/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)16
  • Future Directions:Big Data & Cognitive Computing Age• What new capabilities will service systementities (species?) have in the future?– Natural Language Interactions– Recommendations Rank Ordered– Historical Awareness• Were recommendations followed?• What outcomes resulted?• Who has responsibility for negative outcomes?• What responsibility for privacy of data?
  • The Well-Read Service Scientist• http://service-science.info/archives/2708
  • Questions• What is ISSIP?• What is a service platform?• What is service science?• What is a T-shaped professional?• How is this related to your work at IBM with universities?• What are the important future trends you see?
  • What is ISSIP?• Pronounced I-ZIP• International Societyof Service InnovationProfessionals• SIG Education &Research– T-shapes– Service Science6/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)20
  • What is a service platform?• Access Places & Entities– Scale benefits– Of new knowledge– Globally & rapidly• Smart Phones & Watson• Smarter City IOC• Franchises6/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)21
  • Service Science• Emerging Discipline– Service Science,Management, andEngineering (SSME)• Service– Not sector (ECON)– Not capability (CS)• Value Co-Creation• Service System Entities6/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)22IBM SSME Centennial Icon of Progress
  • What is a T-shaped Professional?6/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)23Many disciplinesMany sectorsMany regions/cultures(understanding & communications)DeepinonesectorDeepinoneregion/cultureDeepinonediscipline
  • How do universities fit in?• Best way to predictthe future is to inspirethe next generation tobuild it better• The future is alreadyhere at universities itis just not welldistributed6/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)24
  • Backups• To help answering questions
  • Data Science +Urban Science +Service Science =Smarter PlanetJim SpohrerDirector IBM University ProgramsJune 17, 2013
  • Sciences & Applied Arts• All sciences study systems– Physics, Chemistry, Biology, Information andComputer Science, Service Science, etc.• All applied arts change systems– Management, Engineering, Design Arts, PublicPolicy seek to apply rigorous scientific knowledgeto create better worlds to inhabit
  • Information & Computer Science• “The single strongest impulse for introducingcomputers on campuses in the mid-1950s didnot come from the schools themselves orfrom any federal agency, but instead fromIBM.”
  • Data Science• “Data science incorporates varying elementsand builds on techniques and theories frommany fields… with the goal of extractingmeaning from data and creating dataproducts.”
  • By 2020, 35 Zettabytes per year• What’s big today will look small in a decadeGoogle processes> 24 Petabytes of datain a single dayFacebook processes10 Terabytes of data everydayThe Hadron Collider at CERNgenerates 40 Terabytesof data / secFor every session, NY StockExchange captures 1 Terabyteof trade informationTwitter processes7 Terabytes of data every day250,000,000 tweets2 Billion Internet users in 2011By 2013, annual internet trafficwill reach 667 Exabytes
  • Urban Science• Urban science is an interdisciplinary field thatstudies diverse urban issues and problems
  • Service Science• The transdisciplinary study of service, theapplication of knowledge for mutual benefits(value co-creation phenomena), in an ecologyof interacting many-to-many, nested,networked viable service system entities.
  • 33What’s UP at IBM?
  • 34Those in-the-know say, “IBM is helping to build a Smarter Planet…”
  • 35Smarter Planet = Smarter SystemsINSTRUMENTEDWe now have the ability tomeasure, sense and seethe exact condition ofpractically everything.INTERCONNECTEDPeople, systems and objectscan communicate andinteract with each other inentirely new ways.INTELLIGENTWe can respond to changesquickly and accurately,and get better resultsby predicting and optimizingfor future events.WORKFORCEPRODUCTSSUPPLY CHAINCOMMUNICATIONSTRANSPORTATION BUILDINGSIT NETWORKS
  • 36City challengesRyan Chin:Smart Cities
  • 37Smart Startup: Streetline
  • 38Smart Neonatal ICU
  • 39Land-population-energy-carbonCarlo Ratti:Senseable Cities
  • 40
  • 41
  • 42Four commandments for cities of the future: Eduardo Paes at TED2012
  • 43SC IOC as a Platform for Innovation
  • 4444 Identifies entrepreneurs developingbusinesses aligning with our Smarter Planetvision. SmartCamp finalists raised more than$50m and received significant press inWall Street Journal, Forbes andBloomberginHealthcare SmartCamp kickstart - Miami - May 15, 2012Apply by April 27thSmarterCities SmartCamp kickstart - New York - May 24, 2012Apply by May 3rdNorth America Regional SmartCamp - Boston - June 20 & 21, 2012Apply by May 25thapply now at www.ibm.com/isv/startup/smartcampExclusive Networking andMentoring eventNorth America SmartCamp lead: Eric Apse, eapse@us.ibm.comUniversity Programs lead: Dawn Tew, dawn2@us.ibm.com
  • 45What are the trends?Digital ImmigrantBorn: 1988Graduated College: 2012Digital NativeBorn: 2012Enters College: 2030
  • 46Transportation: Self-driving carsSteve Mahan:Test “Driver”
  • 47Water: Circular Economy
  • 48Manufacturing: Circular EconomyRyan Chin:Urban MobilityBaxter: Building the FutureMaker-Bot: Replicator 2
  • 49Energy: Artificial Leaf
  • 50Technology: Cognitive Computing
  • 5151Example: Leading Through Connections with…Universities Collaborate with IBM Research to Design Watsonfor the Grand Challenge of Jeopardy !Assisted in the development of the OpenAdvancement of Question-Answering Initiative(OAQA) architecture and methodologyPioneered an online natural language questionanswering system called START, which provided theability to answer questions with high precision usinginformation from semi-structured and structuredinformation repositoriesWorked to extend thecapabilities of Watson, with afocus on extensive common senseknowledgeFocused on large-scaleinformation extraction,parsing, and knowledgeinference technologiesWorked on a visualization component to visuallyexplain to external audiences the massively parallelanalytics skills it takes for the Watson computingsystem to break down a question and formulate arapid and accurate response to rival a human brain Provided technological advancement enabling acomputing system to remember the full interaction,rather than treating every question like the first one -simulating a real dialogueExplored advanced machine learningtechniques along with rich textrepresentations based on syntactic andsemantic structures for the Watson’soptimizationWorked on information retrievaland text search technologieshttp://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html
  • 52Buildings: Circular EconomyChina Broad Group:30 Stories in 15 Days
  • 53Retail & Hospitality: Social Media
  • 54Finance: Crowd Funding
  • 55Health: Robotics & 3D Printing
  • 56Education: Challenge-Based Sport
  • 57Government: Parameterized Meta-Rules• Innovativeness• Equity– Improveweakestlink• Sustainability• Resiliency
  • 58Competitive Parity – Achieved.• The NFL touts parity—the ideathat any team can win on anygiven Sunday. But this year,parity has truly run wild.• Through six weeks, 11 of theNFLs 32 teams are 3-3.• The Journal asked the statisticalgurus of Massey-PeabodyAnalytics to run a coin-flipsimulation…
  • 592030 and Beyond…. Government, Health, Education, Finance, etc.
  • 6/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)60
  • 6/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)61IBM operates in 170 countriesaround the globeAcquisitions contribute significantlyto IBM’s growth ; ~120 acquisitions inlast decade2012 FinancialsRevenue - $ 104.5BNet Income - $ 17.6BEPS - $ 15.25 (10 yrs ofEPS d/digit growth) Net Cash - $18.2B24% of IBMs revenue inGrowth Market countries;growing at 7% ( @cc) in2012Number 1 in patentgeneration for 20consecutive years ;6,478 US patentsawarded in 2012More than 40% of IBMsworkforce doesbusiness away from anoffice5 Nobel Laureates10 time winner of thePresident’s NationalMedal of Technology &Innovation – latest forLASIK laser refractivesurgical techniquesThe Smartest Machine On Earth100 Years of Business &Innovation in 2011New Era in IBM’s LeadershipIBM Growth InitiativesIBM has~425,000employeesworldwideContext: IBM 101
  • IBM Platforms for Entrepreneurs• Smarter Cities Intelligent Operations Center Platform• IBM helping university startups to scale up (growth)6/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)62
  • 63University: Four Missions• Knowledge– 1. Transfer (Teaching)– 2. Creation (Research)– 3. Application (Benefits)• Commerce/Entrepreneurship• Governance/Policymaking– 4. Re-Integration (Challenge)• Innovativeness, Equity• Sustainability, Resilience• Nested, Networked Holistic Service Systems– Flows– Development– GovernanceNationState/ProvinceCity/MetroUniversityCollegeK-12Cultural &ConferenceHotelsHospitalMedicalResearchWorker(professional)Family(household)For-profitsNon-profitsU-BEEJob Creator/SustainerThird Mission (Apply to Create Value)is about U-BEEs =University-BasedEntrepreneurial Ecosystems
  • Universities Matter #16/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)64JapanChinaGermanyFranceUnited KingdomItalyRussia SpainBrazilCanadaIndiaMexico AustraliaSouth KoreaNetherlandsTurkeySwedeny = 0,7489x + 0,3534R² = 0,71901234567890 1 2 3 4 5 6 7 8 9%globalGDP% top 500 universitiesNation’s % WW GDP and % Top 500 Universities (2009 Data)
  • Universities Matter #26/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)65…But it can be costly, American student loan debt is over $900M
  • Universities Matter #36/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)66“When we combined the impact of Harvard’s direct spending on payroll, purchasing and construction – theindirect impact of University spending – and the direct and indirect impact of off-campus spending by Harvardstudents – we can estimate that Harvard directly and indirectly accounted for nearly $4.8 billion in economicactivity in the Boston area in fiscal year 2008, and more than 44,000 jobs.”
  • Universities Matter #46/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)67What is a U-BEE? A local job creator/sustainerInnovating “whole service” in all regions worldwidehttp://www.service-science.info/archives/1056NationState/ProvinceCity/RegionUniversityCollegeK-12Cultural &ConferenceHotelsHospitalMedicalResearchWorker(professional)Family(household)For-profitsNon-profitsU-BEEJob Creator/SustainerU-BEEs = University-Based Entrepreneurial Ecosystems“The future is alreadyhere (at universities),it is just not evenlydistributed.”“The best way topredict the futureis to (inspire the nextgeneration of studentsto) build it better.”
  • On Campus IBMers6/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)6868Up-SkillCycleUniversity-Region1University-Region2= New Venture= Acquisition= High-GrowthAcquisition/New IBM BU(Growing)= High-Productivity/Mature IBM BU(Shrinking)= IBMer moving frommature BU to acquisition= IBMer moving intoOn Campus IBMer role(help create graduateswith Smarter-Planet skills,help create Smarter Planetoriented new ventures;Refresh skills= Graduates withSmarter Planet skillsIBM
  • 69Measuring Quality-of-Life?A. Systems that focus on flow of things that humans need (~15%*)1. Transportation & supply chain2. Water & waste recycling/Climate & Environment3. Food & products manufacturing4. Energy & electricity grid/Clean Tech5. Information and Communication Technologies (ICT access)B. Systems that focus on human activity and development (~70%*)6. Buildings & construction (smart spaces) (5%*)7. Retail & hospitality/Media & entertainment/Tourism & sports (23%*)8. Banking & finance/Business & consulting (wealthy) (21%*)9. Healthcare & family life (healthy) (10%*)10. Education & work life/Professions & entrepreneurship (wise) (9%*)C. Systems that focus on human governance - security and opportunity (~15%*)11. Cities & security for families and professionals (property tax)12. States/regions & commercial development opportunities/investments (sales tax)13. Nations/NGOs & citizens rights/rules/incentives/policies/laws (income tax)0/19/02/7/42/1/17/6/11/1/05/17/271/0/224/24/12/20/247/10/35/2/23/3/10/0/01/2/2Quality 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)”
  • Growth70
  • 71NestingMatryoska dolls:Origin Japanese
  • 72I 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 UN
  • 73TimeECOLOGY~14BBig Bang(NaturalWorld)~10KCities(Human-MadeWorld)sun (energy)writing(symbols and scribes,stored memoryand knowledge)earth(molecules &stored energy)written laws(governance andstored control)bacteria(single-cell life)sponges(multi-cell life)money(governedtransportable valuestored value,“economic energy”)universities(knowledge workers)clams (neurons)trilobites (brains)printing press (books)steam engine (work)200Mbees (socialdivision-of-labor)60transistor(routinecognitive work)Evolution of Natural Systems & Service SystemsUnraveling the mystery of evolving hierarchical-complexity in new populations…To discover the world’s architectures and mechanisms for computing non-zero-sum
  • 74AutomobileTechnological Acceleration0 25 50 100 125 15075Years2550100TelephoneElectricityRadioTelevisionVCRPCCellular%PenetrationYEARS
  • 75•iPhone/iPad app developer•wireless marketing director•microfinance infrastructure designer•3D content developer for movies, TV•social network manager•deploying technology into the cloud•organic solar cell development•digital image managementMany top in-demand jobs in 2011 did not exist in 2005!75
  • 76 76U.S Department of Laborestimates that today’s learnerwill have 10-14 jobs…by the age of 38!
  • 77 Estimates are 85% of the jobs today’s learners will be doinghaven’t been invented yet theyll be using technologies that dont exist to solve problems we dont yet know are problems77
  • 78Five historical cycles …
  • 79~100 years of US job transformationsSource: US Bureau of Economic Analysis; McKinsey Global Institute Analysis
  • 6 R’s• Research (Collaborate)• Readiness (Skills)• Recruiting (Jobs)• Revenue (Solutions)• Responsibility (Volunteers)• Regions (Smarter Cities, Startups & Workforce)6/19/2013© IBM 2013 IBM University Programsworldwide accelerating regionaldevelopment (IBM UPward)80WORKFORCEPRODUCTSSUPPLY CHAINCOMMUNICATIONSTRANSPORTATION BUILDINGS
  • Gamification• Gamification is the use of game thinking andgame mechanics in a non-game context inorder to engage users and solve problems.
  • Service Economy• “The increased importance of the servicesector in industrialized economies. Thecurrent list of Fortune 500 companies containsmore service companies and fewermanufacturers than in previous decades.”
  • Social Media• Social media refers to the means ofinteractions among people in which theycreate, share, and exchange information andideas in virtual communities and networks
  • Big Data• Big data is a collection of data sets so large andcomplex that it becomes difficult to process usingon-hand database management tools ortraditional data processing applications.• Data science incorporates varying elements andbuilds on techniques and theories from manyfields … with the goal of extracting meaning fromdata and creating data products.
  • Service-oriented modeling• Service-oriented modeling is the discipline ofmodeling business and software systems…This overall servicing vision embodies thegeneral notion: “everything is a service”…
  • Franchising• Franchising is the practice of using anotherfirms successful business model.
  • Servitization• Products today have a higher servicecomponent than in previous decades. In themanagement literature this is referred to asthe servitization of products. Virtually everyproduct today has a service component to it.
  • Digital Age• The Information Age (also known as theComputer Age, Digital Age, or New MediaAge) is a period in human historycharacterized by the shift from traditionalindustry that the industrial revolution broughtthrough industrialization, to an economybased on the information computerization.
  • Export• In national accounts "exports" consist oftransactions in goods and services (sales,barter, gifts or grants) from residents to non-residents. Amazon and eBay have largelybypassed the involvement of Customs in manycountries because of the low individual valuesof these trades.
  • Immigration• Immigration is the movement of people intoanother country or region to which they arenot native in order to settle there.[
  • Cybersecurity• The field covers all the processes andmechanisms by which computer-basedequipment, information and services areprotected from unintended or unauthorizedaccess, change or destruction.
  • Service-Dominant Logic• Exchange– Indirect– Goods– Operant– Economies• Co-creator– Value proposition– Relational• Resource Integrators• Beneficiary