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Smarter Planet, Service Science, Innovation

Smarter Planet, Service Science, Innovation

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    Nordic trip 20120909 v2 Nordic trip 20120909 v2 Presentation Transcript

    • IBM University Programs worldwide, accelerating regional development (IBM Upward) Smarter Planet & Service Science IBM SSME Centennial Icon of Progress IBM Smarter PlanetDr. James (“Jim”) C. Spohrer, spohrer@us.ibm.comInnovation Champion and Director IBM UPward(University Programs worldwide, accelerating regional development)Nordic TripMonday-Friday Sept 9-14, 2012 © 2012 IBM Corporation
    • IBM Almaden Research Center, Silicon Valley/San Jose, CA2 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Today‟s Talk  Leading Brands & Innovation – Public Corporations – Nations  Knowledge-Value Economics – Smarter Planet Nano-Bio-Info-Cogno – Service Science  Smarter Regions – Cities (government) – Universities (academia) – Startups (business) – Foundations (social sector)  Thank-You‟s3 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Smarter Regions – Knowledge to Value Faster, Sustainably4 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • What does IBM do?5 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Most people say, “IBM makes computers”6 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • What IBM really does is help build a Smarter Planet…7 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • United States: Global Brands (4.5/26/30)8 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Denmark: Global Brands (0.08/0.5/0.8)9 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Sweden: Global Brands (0.1/1.25/2.2)10 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Great Challenges Are Opportunities  Big Four Crises – Financial – Healthcare – Education – Government11 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • What do universities do?  Knowledge Transfer (Teaching)  Knowledge Creation (Research)  Knowledge Application (Entrepreneurship)  Knowledge Integration (Reduce Silo Effect) Harvard – Rated #1 in World (2012) University of Utah – Rated #47 (#1 in Startups AUTM 2010/11)12 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Smarter Planet = Smarter System of Systems INSTRUMENTED INTERCONNECTED INTELLIGENT We now have the ability People, systems and We can respond to changes to measure, sense and objects can communicate quickly and accurately, see the exact condition and interact with each and get better results of practically everything. other in entirely new by predicting and optimizing ways. for future events. PRODUCTS IT NETWORKS COMMUNICATIONSWORKFORCE SUPPLY CHAIN TRANSPORTATION BUILDINGS13 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • IBM Watson14 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Universities Collaborate with IBM Research to Design Watson for the Grand Challenge of Jeopardy ! Assisted in the development of the Open Pioneered an online natural language Advancement of Question-Answering question answering system called START, Initiative (OAQA) architecture and which provided the ability to answer questions methodology with high precision using information from semi-structured and structured information repositories Provided technological advancementenabling a computing system to remember the Worked on a visualization component to Worked to extend thefull interaction, rather than treating every visually explain to external audiences the capabilities of Watson, with aquestion like the first one - simulating a real massively parallel analytics skills it takes for focus on extensive commondialogue the Watson computing system to break down sense knowledge a question and formulate a rapid and accurate response to rival a human brainExplored advanced machine learningtechniques along with rich textrepresentations based on syntactic andsemantic structures for the Watson‟s Worked on information Focused on large-scaleoptimization retrieval and text search information technologies extraction, parsing, and knowledge inference technologieshttp://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html 15 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • IBM Cognitive Computing & SyNAPSE SyNAPSE Project AI Neuromorphic Chip Macaque Long-Distance Brain Network16 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Evert Gummesson: Rise of ServiceHuman Activity Shifts: Sociotechnical System Evolution Relationship Networks Estimated world (pre-1800) and then U.S. Labor Percentages by Sector 120 100 Services (Info) 80 Services (Other) 60 Industry (Goods) Agriculture 40 Hunter-Gatherer 20 0 00 50 00 50 00 50 YA 10 YA 20 A 20 YA Y 18 18 19 19 20 20 00 0 0 0 00 00 00 00 20 Estimations based on Porat, M. (1977) Info Economy: Definitions and Measurement The Company of The Pursuit of Strangers : A Natural Organizational History of Economic Intelligence, Life by James G. March by Paul Seabright Exploitation vs exploration17 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Human Population: Sociotechnical System Evolution Information Technologies, etc. Scientific Method, Industrialization Colonial Expansion & Economics, Rise of the modern managerial firm & Politics, Education, Healthcare & Effects of Agriculture, Shadows in the The Visible Hand: The Sun, by Wade Davis Managerial Revolution in “Ethnosphere. sum total of all the thoughts, beliefs, myths, and American Business institutions brought into being by the by Alfred Dupont Chandler human imagination”18 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Economic Shift in National Economies World’s Large Labor Forces US shift to service jobs A = Agriculture, G = Goods, S = Service 2010 2010 Nation Labor A G S 40yr Service % WW % % % Growth (A) Agriculture: Value from China 25.7 49 22 29 142% harvesting nature India 14.4 60 17 23 35% (G) Goods: U.S. 5.1 1 23 76 23% Value from making products Indonesia 3.5 45 16 39 34% (S) Service: Brazil 3.0 20 14 Daryl Pereira/Sunnyvale/IBM@IBMUS, 66 61% Value from IT augmented workers in smarter systems Russia 2.4 10 21 69 64% that create benefits for customers and sustainably improve quality of life. Japan 2.2 5 28 67 45% Nigeria 1.6 70 10 20 19% Bangladesh 2.1 63 11 26 37% Germany 1.4 3 33 64 42% NationMaster.com, International Labor Organization Note: Pakistan, Vietnam, and Mexico now larger LF than Germany19 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Growth of Service Revenue at IBM 2010 Pretax Income Mix Revenue Growth by Segment SYSTEMS (AND FINANCING) 100 Revenue ($B)SOFTWARE 80 Services 17% 44% 60 40 Software 39% 20 Systems 0 SERVICES 82 88 94 98 10 04 06 07 08 09 20 19 19 19 19 20 20 20 20 20 Year IBM Annual ReportsWhat do IBM Service Professionals Do? Run IT & enterprise systems for customers,help Transform customer processes to best practices, and Innovate with customers.20 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Priorities: Succeeding through Service Innovation - A Framework for Progress (http://www.ifm.eng.cam.ac.uk/ssme/) Source: Workshop and Global Survey of Service Research Leaders (IfM & IBM 2008) IBM University Programs worldwide, accelerating regional development (IBM Upward) 1. Emerging demand 2. Define the domain 3. Vision and gaps 4. Bridge the gaps 5. Call for actions Service Service Service Stakeholder The white paper offers a starting point to - Innovation Systems Science Priorities Growth in service Customer-provider To discover the Education GDP and jobs interactions that underlying enable value principles of Skills Develop programmes Service quality cocreation complex service & Mindset & qualifications & productivity systems Dynamic Research Environmental configurations of Systematically Encourage an Knowledge friendly & resources: create, scale and interdisciplinary & Tools sustainable people, technologi improve systems approach es, organisations Urbanisation & and information Foundations laid Business aging population by existing Employment Increasing disciplines & Collaboration Develop and improve Globalisation & scale, complexity service innovation technology drivers and Progress in Government roadmaps, leading to a connectedness of academic studies doubling of investment Opportunities for service systems and practical tools Policies in service education businesses, & Investment and research by 2015 governments and B2B, B2C, C2C, B2 Gaps in knowledge individuals G, G2C, G2G and skills service networks Glossary of definitions, history and outlook of service research, global trends, and ongoing debate © 2012 IBM Corporation
    • Priorities: Research Framework for the Science of Service Pervasive Force: Leveraging Technology to Advance Service Strategy Development Execution Priorities Priorities Priorities Fostering Service Stimulating Effectively Branding Infusion and Growth Service Innovation and Selling Services Improving Well-Being Enhancing the Service Enhancing through Experience through Service Design Transformative Service Cocreation Optimizing Measuring and Creating and Maintaining Service Networks Optimizing the Value of a Service Culture and Value Chains Service Source: Global Survey of Service Research Leaders (Ostrom et al 2010)22 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Why is it hard to see service systems clearly? 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 23 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Our ambition is to reach K-12 students with Service Science & STEM:“The systems we live in, and the systems we are…”  Challenge-based Project to Design Improved Service Systems – K - Transportation & Supply Chain Systems – 1 - Water & Waste Recycling that focus on Flow of things – 2 - Food & Products (Nano) – 3 - Energy & Electric Grid – 4 – Information/ICT & Cloud (Info) Systems – 5 - Buildings & Construction that focus on – 6 – Retail & Hospitality/Media & Entertainment (tourism) and Human Activities Development – 7 – Banking & Finance/Business & Consulting – 8 – Healthcare & Family Life/Home (Bio) – 9 – Education /Campus & Work Life/Jobs & Entrepreneurship (Cogno) – 10 – City (Government) Systems that focus on – 11 – State/Region (Government) Governing – 12 – Nation (Government) – Higher Ed – T-shaped depth added, cross-disciplinary project teams – Professional Life – Adaptive T-shaped life-long-learning & projects “Imagine smarter systems, explain why better (service systems & STEM language)” STE(A)M = Science, Technology, Engineering, (Arts) and Mathematics See NAE K-12 engineering report: http://www.nap.edu/catalog.php?record_id=12635 See Challenge-Based Learning: http://www.nmc.org/news/nmc/nmc-study-confirms-effectiveness-challenge-based-learning24 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • “Service is the application of competence [knowledge] for the benefit of another entity.”Seeing Our World And Us Vargo,SL & RF Lusch (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68, 1 – 17. Building Smarter Cities = Natural Systems Service Systems Apply Service Systems Planetary Systems Knowledge To Realize Benefits water, electricity, transportation, education, healthcare, etc. Carbon Capabilities, Footprint Experience (Choices) (Choices) Quality of Life25 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • California Human Development Report 2011:Measuring quality-of-life…. http://www.measureofamerica.org/docs/APortraitOfCA.pdf26 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 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 & Environment 2/1/1 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 8. Banking & finance/Business & consulting (wealthy) (21%*) 9. Healthcare & family life (healthy) (10%*) 5/2/2 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) 13. Nations/NGOs & citizens rights/rules/incentives/policies/laws (income tax) 0/19/0 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)”27 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Sciences underlying HSSE Service Science Transdiscipline Foundations Disciplines Professions Phenomena: Run Past Present FutureValue-Cocreation Operators & Maintain Historical Studies: Future Studies: Research Anthrop, Economics & Law Stakeholders & Resources & Design & Mgmt of Innovation Transform Challenges Measures Access Rights Consultants Managers HumantesSocialScience Arts-Decision Sciences Customer & Quality People & PA Concepts & Marketing Psychology, Design Innovate Questions Behavioral Sciences Cognitive Sciences Scientists & Designers Provider & Productivity Technology & OO Tools & Operations Research & Mgmnt Indust. & Systems Engineering Work & Job Category Methods Management Sciences Engineering Sciences Evolution Authority & Compliance Information & SA Governance & Policymaking Management of Info Systems Political Sciences Computer & Info Sciences Rule Innovations Tech Innovations Competitors & Sust. Innov. Organizations & LC Strategy/Game Theory Project Management Contracts Learning Sciences Organization Science From: Spohrer, J. & Maglio, P. P. (2009). Service science: Toward a smarter planet. In W. Karwowski & G. Salvendy (Eds.), Introduction to service engineering. NY: Wiley. 28 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Service Science and Policymaking  EN: FN(PRW) -> {RE} – Entities – Frameworks – Problems – Recommendations From: Spohrer, J, P Piciocchi, CBassano (2012). Three Frameworks for Service Research: Exploring Multilevel Governance in Nested, Networked Systems. Service Science 4:147-16029 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Four measures  Innovativeness  Equity  Sustainability  Resiliency30 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Service Science: Conceptual Framework Ecology (Populations & Diversity) Entities Interactions Outcomes (Service Systems, both (Service Networks, (Value Changes, bothIndividuals & Institutions) link, nest, merge, divide) beneficial and non-beneficial) Identity Value Proposition Governance Mechanism Reputation (Aspirations & Lifecycle/ (Offers & Reconfigurations/ (Rules & Constraints/ (Opportunities & Variety/ History) Incentives, Penalties & Risks) Incentives, Penalties & Risks) History) Access Rights Measures (Relationships of Entities) (Rankings of Entities) lose-win win-win prefer sustainable lose-lose win-lose non-zero-sum Resources Stakeholders outcomes, (Competences, Roles in Processes, (Processes of Valuing, i.e., win-win Specialized, Integrated/Holistic) Perspectives, Engagement)  Resources: People, Organizations, Technology, Shared Information  Resources: Individuals, Institutions, Infrastructure, Information  Stakeholders: Customers, Providers, Authorities, Competitors  Measures: Quality, Productivity, Compliance, Sustainable Innovation  Access Rights: Own, Lease, Shared, Privileged Spohrer, JC (2011) On looking into Vargo and Luschs concept of generic actors in markets, or “Its all B2B …and beyond!” Industrial Marketing Management, 40(2), 199–201. 31 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Specialization has benefits Adam Smith: David Ricardo: Division of Labor Comparative Advantage32 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Technology has a cost  “The burden of knowledge” Cesar Hidalgo: Societal Knowledge33 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • ~250 years of infrastructure transformations Installation Crash Deployment Irruption Frenzy Synergy Maturity • Formation of Mfg. The Industrial Panic industry 1 1771 1829 Revolution 1797 • Repeal of Corn Laws opening trade Age of Steam • Standards on gauge, time 1829 Panic 1873 2 • Catalog sales companies and Railways 1847 • Economies of scale Age of Depression • Urban development 3 Steel, Electricity 1875 1893 • Support for interventionism 1920 and Heavy Engineering Age of Oil, • Build-out of Interstate 1908 Crash 1974 4 Automobiles 1929 highways • IMF, World Bank, BIS and Mass Production Age of Information Credit Crisis Coming period of 5 1971 2008 Institutional Adjustment and and Production Capital Telecommunications Source: Carlota Perez, Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages; (Edward Elar Publishers, 2003).34 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • ~100 years of US job transformations Source: US Bureau of Economic Analysis; McKinsey Global Institute Analysis35 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 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)36 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 37 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2012 BM Corporation
    • Smarter Regions IBM Research, CC&CA & IBM UP Supports IBM Russia & Bauman Moscow State Technical Brazil with 3 PhD Fellowships for 2012 University launch Smarter Cities Dev’t Education Center  BMSTU launched the Smarter Cities Education Center as a strategic initiative w/ IBM to help students  Flavio Figueiredo from Universidade Federal de Minas and city leaders develop expertise and apply innovative Gerais studying in filed of content popularity growth on online technologies to create smart solutions to tackle issues social networks that have high social and economic impact for cities around the world.  Ivan Mechado from Universidade Federal da Bahia studying  Aligned with the Russian governments priorities for the in field of variabilities in product lines and the most suitable modernization and technological development of urban testing strategies centers, the center will support the development of IT  Gabriel Nazar from Universidade Federal do Rio Grande do skills crucial to Russias innovation agenda Sul studying in the filed of cost-effective fault tolerance techniques for filed programmable gate arrays IBM India Univ Relations Receives IBM SWG, IBM China UR and Leading Universities Award from Zinnov Consulting in China Team Up on Joint EMBA Program  India University Relations was presented w/ the  As part of the Smarter Commerce China Summit, IBM announced the joint Smarter Marketing “Ecosystem Enablement for Universities” award from Course Program with Chinese University of Hong Zinnov Consulting for the 3rd consecutive year Kong and Shanghai Jiaotong University  The award recognizes IBM’s contribution towards the  The collaboration helps students learn more about the development of the University R&D Ecosystem through enormous opportunities brought by Smart Commerce and technology marketing and promote the local talent depth of research and breadth of reach across Tier 1, 2 education and 3 universities  The program will train students & industry leaders with  Zinnov is a consulting firm providing services in the advanced smarter marketing mindset and solutions and area of offshore advisory, market research, competitor build ecosystem for Smarter Commerce business impact analysis, business research, data analytics and HR consulting to Fortune 1000 companies38 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2012 BM Corporation
    • Smarter Regions IBM and University of Mauritius collaborate to IBM University Programs supports IBM’s Delivery boost computer skills in the Indian Ocean Islands Center at Brno in the Czech Republic Region off the coast of Africa  IBM and University of Mauritius struck a academic  IBM’s Delivery Center at Brno employs about 3,000 IT partnership to provide technology and training resources professionals and supports over 600 clients from for computer science professionals at the University around the world  IBM also launched an IBM Africa Technical Institute in  Best practices have been established by local Mauritius offering education about IBM technologies and University Relations personnel for internship how these solutions solve some of the challenges facing programs that support IBM’s resourcing needs businesses and the public sector in Africa.  This local expertise is now planned to be extended and  IBM technical staff will provide guest lectures to students applied to the resourcing requirements of the Brno and IBM will also offer research collaboration for UM Delivery Center researchers IBM and Stellenbosch University collaborate for IBM UP / SWG supports IBM’s new Delivery Center computer skills development in South Africa in Costa Rica with faculty training  IBM’s Delivery Center in Costa Rica opened in May with 1,200  IBM and Stellenbosch University (SU) have partnered to employees & intends to hire up to 1,000 new IT professionals by open a Software Center of Excellence to assist students 2014 in building strong SW development skills  Part of IBM’s agreement includes working with 6 local  The COE is a first-of-its-kind in South Africa including a universities to help build the future workforce and training them post-graduate computer laboratory with advanced software on IBM’s Cloud, Cyber Security & various other technologies (including Rational) to provide a full-fledged software  IBM UR & SWG team members along with NC State University production environment for students to hone their skills. faculty are conducting curriculum workshops for local faculty in  The Center seeks to integrate the latest technologies into country to “train the trainors”. IBM is the first company to offer SU’s curriculum to prepare students for high-value job such a creative approach to helping establish the latest in opportunities technology skills in Costa Rica 39 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2012 BM Corporation
    • 40 IBM GMU External Relations 2012
    • Cities: land-population-energy-carbon Carlo Ratti: Senseable Cities41 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • City challenge: buildings and transportation Ryan Chin: Smart Cities42 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Resiliency: Capability to rebuild (and recycle) rapidly China Broad Group: 30 Stories in 15 Days43 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Self-driving cars Steve Mahan: Test “Driver”44 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Manufacturing as a local recycling & assembly service Ryan Chin: Urban Mobility45 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Advanced Product-Service Systems: Cirque Du Soleilhttp://www.youtube.com/watch?v=nd5WGLWNllA46 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • University: Four Missions Nation Knowledge State/Province – 1. Transfer (Teaching) City/Metro For-profits U-BEE – 2. Creation (Research) Job Creator/Sustainer – 3. Application (Benefits) Cultural & University Hospital Medical Conference College • Commerce/Entrepreneurship Hotels K-12 Research • Governance/Policymaking Worker Family – 4. Re-Integration (Challenge) Non-profits (professional) (household) • Innovativeness, Equity • Sustainability, Resilience Nested, Networked Holistic Service Systems – Flows Third Mission (Apply to Create Value) – Development is about U-BEEs = – Governance University-Based Entrepreneurial Ecosystems 47 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Nations compete and cooperate: Universities important% WW GDP and % WW Top-500-Universities (2009 Data) 9 Japan 8 7 y = 0,7489x + 0,3534 R² = 0,719 China 6 Germany % global GDP 5 France 4 United Kingdom Italy 3 Russia Brazil Spain Canada 2 India Mexico South Korea Australia Turkey Netherlands 1 Sweden 0 0 1 2 3 4 5 6 7 8 9 % top 500 universities48 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • What are the benefits of more education? Of higher skills? …But it can be costly, American student loan debt is over $900M49 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • ~30 years of skill transformations: depth & breadth 15 10 Expert Thinking 5 Complex Communication 0 Routine Manual Non-routine Manual -5 Routine Cognitive -10 1969 1974 1979 1984 1989 1994 1999 Levy, F, & Murnane, R. J. (2004). The New Division of Labor: How Computers Are Creating the Next Job Market. Princeton University Press.50 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 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)5151 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 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 workervalue Transform (Copy) transform professions e.g., consultant Realize Value (To-Be) Innovate innovate professions (Invent) e.g., entrepreneur 52 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Working with universities-cities worldwide A long term investments to develop talent & skillsGovernment Global Placements & Collaboration withPartnerships Mentoring Universities Transferring knowledge and IBM works with 5,000 universitiesBy helping governments to and 10,000 faculties around theestablish new national expertise to the growth markets is critical. One of the ways we do this globe. We have joint initiativesresearch facilities, we are and investments with universitieshelping to create new is to move experts into the market to inindustries, helping to develop coach and train local teams. Vietnam, Malaysia, India, Russia,long terms skills curriculums Brazil, Bulgaria, Egypt, China andlike SSME. Africa to encourage the training of skills required. 53 IBM GMU External Relations 2012
    • We Are All Part Of Nested, Networked Service Systems Matryoska dolls: Origin Japanese54 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 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 UN55 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 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 NYU56 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • AHFE-HSSE 2012: Thank-you!57 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • ~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 (governance and ECOLOGY 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 58 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporationtrilobites (brains) 200M 60 steam engine (work)
    • Co-Evolution (Michael Gallis & Associates) http://www.scribd.com/doc/46259459/Co-Evolution59 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Visit IBM Almaden Research Center, San Jose, CA Upcoming Conferences – July 2012 • ISSS San Jose • HSSE San Francisco More Information – Blog • www.service-science.info – Twitter • @JimSpohrer – Presentations • www.slideshare.net/spohrer – Email • spohrer@us.ibm.com 60 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 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” – CityForward.org “Universities are major employers in cities and key to urban sustainability.” – Coalition of USU “Cities learning from cities learning from cities.” – Fundacion Metropoli “The future is already here… It is just not evenly distributed.” – Gibson “The best way to predict the future is to create it/invent it.” – Moliere/Kay “Real-world problems may not/refuse to respect discipline boundaries.” – Popper/Spohrer “Today‟s problems may come from yesterday‟s solutions.” – Senge “History is a race between education and catastrophe.” – H.G. Wells “The future is born in universities.” – Kurilov “Think global, act local.” – GeddesDr. James (“Jim”) C. SpohrerInnovation Champion &Director, IBM University Programs & open worldwide entrepreneurship research (IBM UPower) WWspohrer@us.ibm.com 61 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • IBM’s Leadership Change IBM has 426,000 employees worldwide 2011 Financials 22% of IBM’s revenue  Revenue - $ 106.9B in Growth Market countries; growing at  Net Income - $ 15.9B 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 62 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 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.63 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Service Science: Conceptual Framework Ecology (Populations & Diversity) Entities Interactions Outcomes (Service Systems, both (Service Networks, (Value Changes, bothIndividuals & Institutions) link, nest, merge, divide) beneficial and non-beneficial) Identity Value Proposition Governance Mechanism Reputation (Aspirations & Lifecycle/ (Offers & Reconfigurations/ (Rules & Constraints/ (Opportunities & Variety/ History) Incentives, Penalties & Risks) Incentives, Penalties & Risks) History) Access Rights Measures (Relationships of Entities) (Rankings of Entities) lose-win win-win prefer sustainable lose-lose win-lose non-zero-sum Resources Stakeholders outcomes, (Competences, Roles in Processes, (Processes of Valuing, i.e., win-win Specialized, Integrated/Holistic) Perspectives, Engagement)  Resources: Individuals, Institutions, Infrastructure, Information  Resources: People, Organizations, Technology, Information  Stakeholders: Customers, Providers, Authorities, Competitors  Measures: Quality, Productivity, Compliance, Sustainable Innovation  Access Rights: Own, Lease, Shared, Privileged Spohrer, JC (2011) On looking into Vargo and Luschs concept of generic actors in markets, or “Its all B2B …and beyond!” Industrial Marketing Management, 40(2), 199–201. 64 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Service Systems Thinking: ABC‟s Example Provider: College (A) A B Example Target: Student (C) Discuss: Who is the Customer (B)? A. Service Provider Forms of Service Relationship B. Service Customer - Student? They benefit… • Individual (A & B co-create value) • Individual - Parents? They often pay… • Institution • Institution • Public or Private - Future Employers? They benefit… • Public or Private - Professional Associations? Forms of Service Interventions - Government, Society? (A on C, B on C) Forms of Responsibility Relationship (A on C) C Forms of Ownership Relationship (B on C) C. Service Target: The reality to be transformed or operated on by A, for the sake of B • Individuals or people, dimensions of • Institutions or business and societal organizations, organizational (role configuration) dimensions of • Infrastructure/Product/Technology/Environment, “Service is the application of physical dimensions of • Information or Knowledge, symbolic dimensions competence for the benefit of another entity.” Spohrer, J., Maglio, P. P., Bailey, J. & Gruhl, D. (2007). Steps Vargo, S. L. & Lusch, R. F. (2004). Evolving to a new toward a science of service systems. Computer, 40, 71-77. dominant logic for marketing. Journal of Marketing, 68, 1 – 17. From… Gadrey (2002), Pine & Gilmore (1998), Hill (1977)65 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Service system entities configure four types of resources Rights No-Rights  First foundational premise of 2. Technology/ 1. People/ service science: Physical Environment Individuals Infrastructure – Service system entities dynamically configure four types of resources 4. Shared – Resources are the building blocks of entity Not-Physical 3. Organizations/ Information/ Institutions Symbolic architectures Knowledge  Named resources are: – Physical or Formal service systems can contract to configure resources/apply competence – Not-Physical Informal service systems can promise to configure resources/apply competence – Physicist resolve disputes Trends & Countertrends (Balance Chaos & Order):  Named resources have: (Promise) Informal <> Formal (Contract) – Rights or (Relationships & Attention) Social <> Economic (Money & Capacity) – No Rights (Power) Political <> Legal (Rules) – Judges resolve disputes (Evolved) Natural <> Artificial (Designed) (Creativity) Cognitive Labor <> Information Technology (Routine) (Dance) Physical Labor <> Mechanical Technology (Routine)Spohrer, J & Maglio, P. P. (2009) (Relationships) Social Labor <> Transaction Processing (Routine)Service Science: Toward a Smarter Planet. (Atoms) Transportation <> Communication (Bits)In Introduction to Service Engineering. (Tacit) Qualitative <> Quantitative (Explicit)Editors Karwowski & Salvendy. Wiley. Hoboken, NJ.. (Secret) Private <> Public (Shared) (Anxiety-Risk) Challenge <> Routine (Boredom-Certainty) (Mystery) Unknown <> Known (Justified True Belief)66 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Service system entities calculate value from multiple stakeholderperspectives Value propositions coordinate & motivate resource access  Second foundational premise of service science Stakeholder Measure Pricing Basic Value Perspective Impacted Decision Questions Proposition – Service system entities calculate (the players) Reasoning value from multiple stakeholder perspectives – Value propositions are the building 1.Customer Quality Value Should we? Model of customer: Do blocks of service networks (Revenue) Based (offer it) customers want it? Is there a market? How large? Growth rate?  A value propositions can be viewed as a request from one service system to another to run an algorithm (the value 2.Provider Productivity Cost Can we? Model of self: Does it play proposition) from the perspectives of (Profit, Missio Plus to our strengths? Can we (deliver it) multiple stakeholders according to n, deliver it profitably to culturally determined value principles. Continuous customers? Can we Improvement, continue to improve?  The four primary stakeholder Sustainability) perspectives are: customer, provider, 3.Authority Compliance Regulated May we? Model of authority: Is it authority, and competitor (Taxes and (offer and legal? Does it compromise Fines, Quality our integrity in any way? – Citizens: special customers deliver it) of Life) Does it create a moral – Entrepreneurs: special providers hazard? – Parents: special authority – Criminals: special competitors 4.Competitor Sustainable Strategic Will we? Model of competitor: Does Innovation (invest to it put us ahead? Can we (Substitute) (Market make it so) stay ahead? Does it share) differentiate us from the competition? Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ..67 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Service system entities reconfigure access rights to resources by mutually agreed to value propositions  Third foundational premise of service Competitor Provider Customer Authority science S P C A – Service system entities reconfigure access rights to resources by mutually agreed to value propositions (substitute) OO OO – Access rights are the building blocks of LC LC the service ecology (culture and information) SA SA  Access rights PA PA value-proposition – Access to resources that are change-experience owned outright (i.e., property) dynamic-configurations – Access to resource that are time leased/contracted for (i.e., rental car, home ownership via mortgage, insurance policies, etc.) – Shared access (i.e., roads, web service = value-cocreation information, air, etc.) B2B B2C – Privileged access (i.e., personal thoughts, inalienable kinship B2G relationships, etc.) G2C provider resources G2B customer resources Owned Outright G2G Owned Outright C2C Leased/Contract Leased/ContractSpohrer, J & Maglio, P. P. (2009) C2BService Science: Toward a Smarter Planet. Shared Access C2G Shared AccessIn Introduction to Service Engineering. Privileged Access *** Privileged AccessEditors Karwowski & Salvendy. Wiley. Hoboken, NJ..68 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Service system entities interact to create ten types of outcomes ISPAR descriptive model  Four possible outcomes from a two player game lose-win win-win Win (coercion) (value-cocreation) Provider Lose lose-lose win-lose (co-destruction) (loss-lead) Lose Win Customer  ISPAR generalizes to ten possible outcomes – win-win: 1,2,3 – lose-lose: 5,6, 7, maybe 4,8,10 – lose-win: 9, maybe 8, 10 – win-lose: maybe 4Maglio PP, SL Vargo, N Caswell, J Spohrer: (2009) The service system is the basic abstraction of service science. Inf. Syst. E-Business Management 7(4): 395-406 (2009)69 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Service system entities learn to systematically exploit technology:Technology can perform routine manual, cognitive, transactional work “Try to Learning Systems (“Choice & Change”) “Double operate monetize, inside internal win the Exploitation Exploration (James March) (James March) and „sell‟ to comfort external” zone” Run/Practice-Reduce Transform/Follow Innovate/Lead (IBM) (IBM) (IBM) Operations Costs L Internal Incremental “To be the best, Maintenance Costs learn from External Radical the rest” Incidence Planning & Interactions Super-Radical Response Costs (Insure) 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.70 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Service system entities are physical-symbol systems  Service is value cocreation.  Service system entities reason about value.  Value cocreation is a kind of joint activity.  Joint activity depends on communication and grounding.  Reasoning about value and communication are (often) effective symbolic processes. Newell, A (1980) Physical symbol systems, Cognitive Science, 4, 135-183. Newell, A & HA Simon(1976). Computer science as empirical inquiry: symbols and search. Communications of the ACM, 19, 113-126.71 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Summary Rights No-Rights 1. People/ 2. Technology/ Physical Individuals Infrastructure 3. Organizations/ 4.. Shared Not-Physical Institutions Information 1. Dynamically configure resources (4 I‟s) 4. Ten types of outcomes (ISPAR) Stakeholder Measure Pricing Questions Reasoning Perspective Impacted 1.Customer Quality Value Should we? Model of customer: Based Do customers want it? 2.Provider Productivity Cost Can we? Model of self: Does it Plus play to our strengths? 3.Authority Compliance Regulated May we? Model of authority: Is it legal? 4.Competitor/ Sustainable Strategic Will we? Model of competitor: Innovation Does it put us ahead? Substitutes 2. Value from stakeholder perspectives 5. Exploit information & technology S P C A 3. Reconfigure access rights 6. Physical-Symbol Systems Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ..72 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Service Management:Learning More Operations, Strategy,About Service Systems… and Information Technology  Fitzsimmons & Fitzsimmons By Fitzsimmons and – Graduate Students Fitzsimmons, UTexas – Schools of Engineering & Businesses  Teboul – Undergraduates – Schools of Business & Social Sciences Service Is Front Stage: – Busy execs (4 hour read) Positioning services for  Ricketts value advantage – Practitioners By James Teboul, INSEAD – Manufacturers In Transition  And 200 other books… – Zeithaml, Bitner, Gremler; Reaching the Goal: Gronross, Chase, Jacobs, Aquilano; Davis, Heineke; Heskett, Sasser, Schlesingher; Sampson; Lovelock, Wirtz, Chew; Alter; Baldwin, Clark; Beinhocker; How Managers Improve Berry; Bryson, Daniels, Warf; Checkland, Holwell; Cooper,Edgett; Hopp, Spearman; Womack, Jones; a Services Business Johnston; Heizer, Render; Milgrom, Roberts; Norman; Pine, Gilmore; Sterman; Weinberg; Woods, Degramo; Wooldridge; Wright; etc. Using Goldratt‟s  URL: http://www.cob.sjsu.edu/ssme/refmenu.asp Theory of Constraints By John Ricketts, IBM  More Textbooks: http://service-science.info/archives/193173 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    •  Our planet is a complex system-of-systemsOur planet is a complex, dynamic, highly interconnected$54 Trillion system-of-systems (OECD-based analysis) This chart shows „systems„ (not „industries„) Communication Transportation $ 3.96 Tn $ 6.95 Tn Education $ 1.36 Tn Water $ 0.13 Tn Leisure / Recreation / Electricity Clothing $ 2.94 Tn $ 7.80 Tn Global system-of-systems $54 Trillion (100% of WW 2008 GDP) Healthcare $ 4.27 Tn Infrastructure Legend for system inputs $ 12.54 Tn Note: Same Industry 1. Size of bubbles represents Business Support systems‟ economic values IT Systems 2. Arrows represent the strength of Energy Resources systems‟ interaction Machinery Finance Food Govt. & Safety 1 Tn Materials Source: IBV analysis based on OECD $ 4.58 Tn $ 5.21 Tn Trade $ 4.89 Tn74 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    •  We now have the capabilities to manage a system-of-systems planetEconomists estimate, that all systems carry inefficienciesof up to $15 Tn, of which $4 Tn could be eliminated This chart shows „systems„ (not „industries„) Analysis of inefficiencies in the 40% planet„s system-of-systems Healthcare Global economic value of Improvement potential as % of system inefficiency 4,270 35% Building & Transport 34% System-of- $54 Trillion Infrastructure Education systems 100% of WW 2008 GDP 12,540 1,360 Financial Electricity 42% 30% 2,940 4,580 Inefficiencies $15 Trillion 28% of WW 2008 Food & Water GDP 4,890 25% Communication Government & Safety Improvement $4 Trillion 3,960 5,210 potential Transportation (Goods 7% of WW 2008 GDP & Passenger) 6,950 20% Leisure / Recreation / Clothing Note: Size of the bubble indicate absolute 7,800 value of the system in USD Billions 15% How to read the chart: 15% 20% 25% 30% 35% 40% 45% For example, the Healthcare system„s System inefficiency as % of total value is $4,270B. It carries an estimated inefficiency of 42%. From that level of 42% economic value inefficiency, economists estimate that ~34% can be eliminated (= 34% x 42%). Source: IBM economists survey 2009; n= 48075 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • The New Normal: Smarter Systems Service Systems: Stakeholders & Resources 1. People 2. Technology 3. Shared Information 4. Organizations Computational System connected by win-win value propositions Smarter Technology Smarter Buildings, Universities, Cities Requires investment roadmap Requires investment roadmap76 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Normann: Reframing Business  Reframing Business: When the Map Changes the Landscape  Richard Normann  Value-Creating Systems77 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Deacon: Incomplete Nature  Incomplete Nature: How Mind Emerged From Matter  Terrence W. Deacon  Thermodynamics -> Teleodynamics (purpose- driven system dynamics)  Purpose = map78 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Knowledge: Individuals & Society Herbert Simon: Ben Jones: Bounded Rationality Burden of Knowledge79 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • The limits of our individual knowledge80 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 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) Developed Market Cities as System of Systems -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)81 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • 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.”82 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Regional Competitiveness and U-BEEs:Where imagined possible worlds become observable real worldshttp://www.service-science.info/archives/1056Innovations 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 83 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • What is the future? We can imagine many possibilities… Kurzweilai.net84 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Imagining quality-of-life innovations…85 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • A Game of Life: Essentials Game = board with squares & rules – Infrastructure both Environmental and Technological • PS (Physical Systems - Environment) – Natural Endowment (hidden & observable information) • PSS (Physical Symbol Systems – Environment & Technology) – Biological PSS (observable information – DNA, RNA, proteins, etc.) – Technological PSS (observable information – states of system, bits, etc.) Life = multiple generations of entities – Entities = SSE (Service System Entities) • Individuals with Competencies & Life-Spans – Competencies (vary with age) – Life-Spans (vary with stage) • Institutions with Roles & Rules Rights No-Rights – Roles (Competency-Levels and Pay-Levels) 1. People/ 2. Technology/ Environmental Physical Individuals – Rules (Compliance-Levels and Tax-Levels) Infrastructure 3. Organizations/ 4. Shared Not-Physical Institutions Information 1. Dynamically configure resources (4 I‟s)86 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Life = Multiple Generations of Entities (200 years = 10 generations x 20 years)Pedagogy: Ten Social-Technological-Economic-Environmental-Political (STEEP) StagesThought Experiment: Binary-Board-Space (Rule: Toggles Each Generation) 1. Hunter-Gatherer Knowledge-Value Economy 1 - 2K population (20 people/sq mile * 100 sq miles) 2. Transition Hunter-Gatherer Knowledge-Value Economy 2 - 4K population (40 people/sq mile * 100 sq miles) 10 miles 3. Agricultural Knowledge-Value Economy 1 - 8K population (80 people/sq mile * 100 sq miles) 4. Transition Agricultural Knowledge-Value Economy 2 In Use - 16K population (160 people/sq mile * 100 sq miles) Rule: 5. Manufacturing Knowledge-Value Economy 1 Toggles Each Generation - 32K population (320 people/sq mile * 100 sq miles) 6. Transition Manufacturing Knowledge-Value Economy 2 Recycle - 64K population (640 people/sq mile * 100 sq miles) 7. Service-Information Knowledge-Value Economy 1 - 128K population (1,280 people/sq mile * 100 sq miles) 8. Transition Service-Information Knowledge-Value Economy 2 - 256K population (2,560 people/sq mile * 100 sq miles) 9. Sustainable-Innovation Knowledge-Value Economy 1 - 512K population (5,120 people/sq mile * 100 sq miles) 10. Transition Sustainable-Innovation Knowledge-Value Economy 2 - 1024K population (10,240 people/sq mile * 100 sq miles) 11. And beyond!87 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Game = Board with Squares & RulesExample: Possible STEEP Stages 9 & 10 (infrastructure, sustainable-innovation cities)  Imagine nested holistic product-service-systems entities… Occupied – 10 Continents/planet (In Use) 11 Systems Toggle each generation – 20 year cycle – 10 Nations/continent – 10 States/nation transportation – 10 Cities/state water – 4 Sectors/city (interconnect to others) food/products – 11 Systems/sector energy  Rules: Board-space toggles each generation ICT – 20 years/generation buildings/family – New infrastructure/generation R&H/M&E/C&S Sector 1 Sector 2 finance city state  World: Further Pedagogical Purposes interconnect interconnect – “World Simulator” benchmarking health – Search to accelerate learning education Sector 3 Sector 4 • 10,000 city experiments/generation governance nation continent • Low skill/raw materials > Hi-talent/tech interconnect interconnect – Each generation new outcomes • Talents (skills & jobs) Recycling • Technologies (recycle & rebuild) (De-construction & • Investments (script & performance) Re-construction) 88 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • Entities = Life-Cycle ScriptExample: Possible STEEP Stages 9 & 10 (individuals, multiple generations of entities)  Children – Age 0-20 – (Local & Global) Grow, Learn, & Have Fun  Parents – Age 20-40 (offspring 2) – (Next Local) Reproduce, Raise Children, & Build New “City” SET Stage  Grand-Parents – Age 40-60 (offspring 4) – (Local) Run the “City” You Built & Connect with Family  Great-Grand-Parents – Age 60-80 (offspring 8) – (Global) Travel the World, Enjoy Experiences, & Share Ideas  Great-Great-Grand-Parents – Age 80-100 (offspring 16) – (Local) Return, Reconnect, and Document History & Future Plans  Great-Great-Great-Grand-Parents – Age 100-120 (offspring 32) – (Local & Global) Celebrate, Tell Stories, Depart & Explore Further Realms89 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
    • The Game of Life: Service Science Framework  The Game Board: A configuration of PS (Physical Systems), with interspersed PSS (Physical Symbol Systems) and SSE (Service System Entities). – The SSE are PSS are PS – The infrastructure is PS + PSS • The PS have hidden information (state) • The PSS have observable information (state and read-write) – The SSE use information to co-create value • World model – information about the world (The Game Board) • Self model – information about self (SSE) • The SSE have a beginning and an end (life-cycle) • The SSE judge quality-of-life across their life-cycle – The game is each generation of SSE try to improve quality-of-life, by improving the capabilities of the infrastructure (less waste, more support for SSE activities) and the capabilities of the SSE to co-create value (an SSE activity) – The starting game board consists of PS with a few PSS, and the goal is to see how quickly and with how little energy and with how few types and tokens of PS, the PSS can become SSE and reconstruct a high level infrastructure and high quality of life and continuously improve at a sustainable pace. • Processes of valuing are based on the above90 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation