Service science progress and directions 20100620
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Service science progress and directions 20100620

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Provides and overview of IBM University Programs, as well as an update on applying service science (an emerging discipline) to holistic service systems, like cities, universities, and resort hotels - ...

Provides and overview of IBM University Programs, as well as an update on applying service science (an emerging discipline) to holistic service systems, like cities, universities, and resort hotels - that have to deal with transportation, water, food, energy, communications, buildings, retail, finance, health, education, and governance-security-development-rights

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  • Permission to re-distribute granted by Jim Spohrer – please request via email (spohrer@us.ibm.com) Reference content from this presentation as: Spohrer, JC (2010) Service Science: Progress and Directions. AMA SERVSIG, Porto Portugal at FEUP Engineering School. June 2010. Source of UN chart is Wikipedia “World Population” World population from 1800 to 2100, based on UN 2004 projections (red, orange, green) and US Census Bureau historical estimates (black). The human population “carrying capacity” of planet Earth depends on the ecology of service systems we can collectively create and maintain…. Especially important building blocks to get right are cities and universities – we call these tightly-coupled holistic service systems, and argue for their importance as a topic of research in the emerging area known as service science… http://en.wikipedia.org/wiki/Carrying_capacity The carrying capacity of a biological species in an environment is the population size of the species that the environment can sustain indefinitely, given the food, habitat, water and other necessities available in the environment. For the human population, more complex variables such as sanitation and medical care are sometimes considered as part of the necessary establishment. As population density increases, birth rate often decreases and death rate typically increases. For humans, we need transportation, water/air, food, energy, communications as basics…. We also need buildings, retail, finance, health, education, and governance for high quality of life… Our human needs for water/air and food are obvious… Transportation, energy, communications are less obvious – but cities do not work very well without them… Buildings, retail, finance, health, education, and governance are needed for high quality of high density living in cities… This talk provides a concise introduction to the area of “Smarter Systems and Modern Service” with a focus on urban systems and service innovation, especially how cities and universities and cities can create a vital partnership and together (better than separately) thrive on accelerating change and sustainable innovation – driven primarily by IT advances and globalization, but also requiring skill changes, organizational changes, business model changes, policy changes, and investment model changes – to truly adapt and thrive in the age of smarter systems and modern service – or more simply “the decade of smart.” But I want to start by sharing some relevant quotes, which will surface in various forms during the course of this talk… The first you may have seen on TV or heard on the radio – it is from IBM – Instrumented, Interconnected, Intellient – Let’s build a smarter planet (more on this one shortly) Second, If we are going to build a smarter planet, let’s start by building smarter cities, (as we will see cities turn out to be ideal building blocks to get right for a number of reasons) And if we focus on cities, then the quote from the Foundation Metropolitan paints the right picture, cities learning from cities learning from cities… The next is probably the best known quote in the group “think global, act local” (we will revisit this important thought) Since all the major cities of the world have one or more universities, the next quote is of interest “the future is born in universities” And two more well known quotes about the future – the best way to predict the future is to build it, and the future is already here… it is just not evenly distributed. The next quote is an important one for discipline specialists at universities to keep in mind – real-world problems may not respect discipline boundaries (so be on guard for myopic solutions that appear too good to be true, they often are!)… Because if we are not careful, today’s problems may come from yesterday’s solutions… And since we cannot anticipate all risks or quickly resolve them once we notice them, we should probably never forget what HG Wells said - that history is a race between education and catastrophe… In a world of accelerating change, this last statement also serves as a reminder that the pace of real innovation in education is a good target for study in terms of smarter systems and modern service…
  • Today’s talk about Smarter Systems and Modern Service is organized into eight sections – that correspond to eight points I hope this talk will make… First, we want smarter systems and modern service – because we want to sustain and improve quality of life for ourselves and others on the planet – and our quality of life depends on many types of systems – we will take a look at the major types of systems on the next slide. Second, the world can be viewed as a system of systems with a total value of around $54 trillion, with an identifiable $4trillion in addressable waste and inefficiency – gas wasted in traffic james or looking for parking spaces, water wasted in leaky pipes, etc. Third, a number of groups have begun to identify reducing the waste and making smarter systems as “Grand Challenge” problems – some of these problems, like climate change, may very well fall into the category of the race between education and catastrophe… Fourth, and in many ways this is the main opportunity that this talk brings forward, a vital partnership between cities and universities is starting to happen in many places around the world – and these two important building blocks of the modern world, cities and their local universities, as well as their twin or sister cities and their universities – are important building blocks to get right if we are going to win the race between education and catastrophe – if we are going to create smarter systems and modern service. I lead IBM’s University Programs, and so I’ll describe what we are doing in IBM university programs to encourage the partnership between cities and universities, by presenting our 2010 key directions, and to help remember what we do in IBM UP or IBM University Programs we will review the 5 R’s – research, readiness, recruiting, revenue, and responsibility – which are the five categories of activities we support in our interactions with around 5000 universities around the world. The sixth point, which is a bit deeper dive on these systems we depend on for quality of life, reveals a megatrend in the growth of service systems – complex systems that serve customers that also have people inside – these service systems are evolving rapidly as IT-enables a new division of labor between people and technology. The seventh point, is that in the future we will need more T-shaped professionals whose skills are deep in one (or more) areas and broad across many – and a transdisciplinary framework will be presented because as we know real world problems do not respect discipline boundaries, so to more quickly solve complex problems, in the future we will need more people who have depth and breadth – T-shaped. Finally, we conclude with a short definition of smarter – smarter means sustainable innovsation – that is working to reduce waste and expand capabilities simultaneously. One way to reduce waste is to simply do less, but we want to both reduce waste and do more – can we have our cake and eat it too? This is perhaps the ultimate grand challenge facing humanity, and if we can get the city and university partnership working well enough – then the answer for at least the next century may be yes – yes, we can both reduce waste, mitigate the effects of climate change, and expand capabilities, and quality of life for billions more on a “smarter planet” ======================== People work hard to improve quality of life for themselves and their children… Today quality of life depends on many types of systems, and the first part of this talk reviews the 13 most important systems for quality of life The systems that we depend on for quality of life form a global system of systems – increasingly interdependent – and all together the global system of systems generates about $54 trillion in value (the GDP of the world), but there is plenty of room for improvement, including an estimated $4 trillion in addressable waste that can be reduced or eliminated… There is growing concern that this global system of systems is leading to climate change and global warming – Senge has even gone so far as to say that “today’s solutions are tomorrow’s problems” -- which resonates with the H.G. Well’s quote – “History is a race between educaiton and catastrophe”…. There are also concerns that we do not understand the system of systems well enough, and unintended consequences can result – such as selling mortgages in the US leading to a global financial meltdown that causes leading economists and politicians to acknowledge they did not see it coming, and must rethink very fundamental beliefs about their understanding of the mechanisms that keep the system of systems called the global economy working…. A number of organizations have started to identify grand challenge problems, that if we are able to solve them, will indicate that in some sense we are getting smarter… In other words, solving grand challenges is proof we are getting smarter as a species… we are learning to reduce waste and expanding our capabilities In this talk, we will argue that cities and universities are the right building blocks to get right in order to accelerate progress on many grand challenge problems that are important to maintaining and improving quality of life for people, and ensuring that we get better at improving the global system of systems…. If we can get universities and cities to work more effectively together on grand challenges, tremendous benefits could result… as we will see, in some sense cities are the living labs for much research that needs to get done at universities… Next, we talk about what IBM University Programs is doing to improve the partnership between universities and cities…. Both encouraging research to solve grand challenge problems, but also working with universities to develop future skills needed for a world in which there is growing importance of service systems, or complex systems that serve customers and have people inside… the global trend in city growth is mirrored by a growth in the service sector of the economy, and a rethinking of what types of skills are needed for the future. Finally, we end by defining “Smarter” as sustainable innovation, that both reduces waste and expands capabilities – “Smarter” is a focus on grand challenges aimed at improving the global system of systems and thereby improving quality of life, but also importantly, getting better at identifying grand challenge problems that can help establish and investment roadmap, and attain continuous improvement of these systems…
  • In IBM’s Global University Programs, we work with universities around the world, and we invest time and funds to improve global talent and infrastructure. The skills of people around the world The infrastructure, such as water, electricity, energy, transportation, around the world Human resources, or talent, can be improved through targeted projects. For example, we have research award, faculty award, and student award programs to fund research. We also have Academic Initiatives to help students learn skills they will need in industry. And we recruit students with the right skills and/or research background at IBM. Capital resources, or infrastructure, can be improved through targeted projects. For example, we work with education, industry, and government to establish cloud computing centers that provide improved infrastructure and access to computing resources. One way to think about the investments here is that if industry does well, the taxes allow government to support more education programs, if education improves then industry gets more talent so they can perform better, and the cycle repeats. Also, more and more of the university research is done in multidisciplinary research centers, like MIT’s Energy Initiative or UMichigans Transportation Research Institute. These research centers work on real world problems that are exactly the type of improvement projects that help improve infrastructure for transportation, elctric grid, water management, etc. This connects to IBM’s Smarter Planet initiative. Service science is the study of these complex system of systems that serve customers. Some people will recognize the 3 P’s of corporate social responsibility, or the triple bottom line, in this chart – People, Planet, and Profits. http://en.wikipedia.org/wiki/Triple_bottom_line Profit, People, Planet logo is from: http://www.sustainability-ed.org/assets/turbineLogo.gif
  • Public Private Partnerships are government funded initiatives in which university-industry partnerships respond to request-for-proposals. For example, improving the safety of highway transportation in remote rural areas might be a government funded initiative that requires linking university and industry capabilities to respond with state-of-the-art solutions. See DOT (Department of Transportation) TIGER grants for example.
  • The best relations between IBM and universities involve what we call the five R’s – Research (or open collaborative research with a focus on grand challenge problems for business and society), Readiness (or skills), Recruiting (or jobs working on teams to building a smarter planet), Revenue (which is more and more about public-private partnerships that connect great universities and great cities), and Responsibility (where IBM employees share their expertise, time, and resources with universities – including IBM guest lecturing in courses or judging student competitions). About 15-20% of awards are in the analytics areas, and we see that growing to 25-33% this coming year and the future…. For more information: http://www.ibm.com/university Bay Area numbers… 300 fulltime hires in last five years 400 interns and co-ops students over 1000 employees who are alumni, between 2-10% executives over $3M in research and matching grant awards, over five times that in matching from government good customers of IBM
  • http://download.boulder.ibm.com/ibmdl/pub/software/dw/university/awards/IBM_awards.pdf Our 2010 IBM UP (IBM University Programs) focus areas include six priorities and Smarter Cities is at the top of the list… With three subgoals as we work with universities… Area of Future Growth: Holistic Modeling and Analytics for Cities (Urban Service System Sustainability and Innovation Centers) Improve Input for this area: STEM (Science Technology Engineering and Mathematics) Education Pipeline, and Improve Output for this area: Jobs & Entrepreneurship
  • The mission of the Urban Service Systems Sustainability and Innovation Centers will be to increase understanding in three areas that can have a direct impact on quality of life in cities…. Holistic modeling, STEM Education Pipeline, and Entrepreneurship & Job Creation…. Area of Future Growth: Holistic Modeling and Analytics for Cities (Urban Service System Sustainability and Innovation Centers) Improve Input for this area: STEM (Science Technology Engineering and Mathematics) Education Pipeline, and Improve Output for this area: Jobs & Entrepreneurship Regarding quality of living and quality of infrastructure, Boston rated #33 in both rankings for 2009... http://www.mercer.com/qualityoflivingpr#Top_50_cities:_Quality_of_living What would it take to get Boston into the #1 position in both rankings? Also, of interest - ranking by population... http://www.mongabay.com/cities_pop_01.htm For truly large cities, Japan seems to do best in quality of living and quality of infrastructure.... Mercer evaluates local living conditions in all the 420 cities it surveys worldwide. Living conditions are analysed according to 39 factors, grouped in 10 categories: Political and social environment (political stability, crime, law enforcement, etc) Economic environment (currency exchange regulations, banking services, etc) Socio-cultural environment (censorship, limitations on personal freedom, etc) Health and sanitation (medical supplies and services, infectious diseases, sewage, waste disposal, air pollution, etc) Schools and education (standard and availability of international schools, etc) Public services and transportation (electricity, water, public transport, traffic congestion, etc) Recreation (restaurants, theatres, cinemas, sports and leisure, etc) Consumer goods (availability of food/daily consumption items, cars, etc) Housing (housing, household appliances, furniture, maintenance services, etc) Natural environment (climate, record of natural disasters)
  • Add social networks…
  • The image is from the NSF LIFE (Learning in Informal and Formal Environments Center) at http://life-slc.org/?page_id=124 The amount of time (waking hours) that people spend in formal education settings (classrooms) is only a small fraction of their lives. Most of the learning we do is outside the classroom. Today, technology allows us to learn in more contexts. On June 1 st , 2009 IBM Education released a new report… Education for a Smarter Planet: The Future of Learning Signposts for the future provide opportunities for transformation Institutions can view this as a challenge or an opportunity… as technology immersion, etc. breaks down the distinctions between formal and informal learning… more learning in formal setting is problem-based and employs technologies that connect learners to the real-world… At IBM we spend well over half a billion dollars a year ($648M in 2008) enabling our employees to have access to lifelong learning activities and materials. Our continued investment in the development of our people prepares them for the many challenges they face in the competitive environment, enabling them to develop the skills and capabilities that are required to deliver the systems and processes that enable: goods to be developed, manufactured, bought and sold; services to be delivered; people and commodities to be moved; and billions of people to work and live in a digital and interconnected world. In 2008, IBM invested $648 million in learning activities to help employees grow their skills with employees averaging 61 hours of training. 70% of the IBM target population completed a skill assessment that helped employees plan their career development and helped managers determine how to place employees on projects and assignments. Additionally, IBM is introducing a client-valued career framework and a single enterprise-wide brand for employee career development that will enable our employees to lead this agenda, to gain new experiences and build smarter careers -- for themselves, for our partners, our communities, and for the world. Globally, employees spend an estimated 23 million hours each year engaged in training which is approximately 61 hours per employee — either online, in a collaborative space, or in a traditional classroom -- and in informal ways such as experiential learning activities as part of their job. IBM continues to be a leader in employee training and development and has been recognized not only for our investment in training but also for our innovative approaches using advanced technology to provide employees the training they need on demand when and where they need it. In 2008, 73% of learning was offered online. IBM has defined a learning culture that permeates every facet of an employee's work experience. The learning culture is heavily focused on a blend of work enabled activities that allows IBM to provide training where and when it is most efficient and effective for IBM and IBMers. IBM's extensive use of technology allows us to focus on work enabled learning, versus the more traditional classroom training, leverages learning assets and technology. A new career framework The complexity and rapid change in our world today demands integrated, pervasive learning. Employees need to learn rapidly, day to day, on the job. IBM “brings it home” to employees by providing clarity around careers and roles in IBM and offers every IBMer personalized career and learning guidance. As IBM continues it’s transformation as a Globally Integrated Enterprise, it is critical that all IBM employees develop business skills to not only produce innovative solutions that matter to our company and to the world, but that have real value to our clients. IBM strives to stay ahead of the curve with a strategy that will meet the needs of our clients by enhancing the skills and capabilities to serve our clients. This starts with knowledge and expertise linked to our clients' agendas. IBM has an integrated expertise management process that identifies skills unique to a job, capabilities unique to a career and competencies unique to IBM. Our strategy is based on defining key roles by business unit and geography, identifying and assessing who is currently in these roles and what the demand is for the future. It is critical to define a pipeline for these roles to ensure that we meet the needs of our clients' agenda, especially in the growth countries. Enhancing and retaining critical skills IBM’s Expertise Assessment tool helps employees identify and address gaps between current skill levels and IBM’s expected targets. The Personalized Job Matching tool allows employees to explore scenarios and model the time, cost and development impact of changes to job role, and ultimately, to their career. IBM recognizes the need to have employees with the right skills, in the right place, at the right time. As part of the SmarterPlanet strategy, we are working to align, create, and update Job Roles and Job Role Skill Sets to support the growth areas that will be needed globally across the Enterprise. The team is also working to identify key Market Valued Skills (Market Valued Skills are those skills that are in demand in the marketplace) for the Growth Markets, BRICs, and Mature markets. Technical Leadership IBM provides on-going, year-long learning and exchange focused on key Smarter Planet initiatives, business acumen, global leadership and global delivery. This learning fosters connections among global leaders in major and growth markets for purposes of business-focused collaboration via interactive session, workshops, discussion threads, and jams. Career Paths for technical community At IBM we have very specific career paths to accommodate the many disciplines that are part of our 250,000 member technical community. As one moves to the top of that path, be it as a Senior Technical Staff Member (STSM) in our development community, or a IT Architect or IT Specialist in our services organizations, the next career leap, for those willing to go-for-it, is to be nominated for the coveted position of Distinguished Engineer. Which is an executive level position. In the 250,000 member technical community at IBM .... only 550 have earned the Distinguished Engineer designation . A very select group! No position in IBM get's the scrutiny that a Distinguished Engineer nominee does. First of all, the nominee has to have the support of the Senior Vice-President of their business unit. Secondly, a very thorough nomination template is completed, which highlights the nominees technical achievements over their career, and includes references that can attest to the person's work, and on their softer qualities such as what they've done to reach out to IBM's technical community. That nomination template is then reviewed and validated by a senior IBM executive, who will form an opinion if the nominee should be appointed a Distinguished Engineer, or not. That recommendation is reviewed by a committee of evaluators, numbering 40+, who give their input. And that recommendation is than presented to two Senior Vice Presidents ... who will make the after reviewing the final determination. However, as rigorous as this process is, the nominees get a lot of help along the way. Their management team is responsible to make sure the employee gets the advice, counsel and right experiences, to position them for the DE role. And equally as important, we insist that the technical community itself, all the DEs and Fellows who are in place today, spend a good deal of their focus on developing IBMs technical community. Three years ago, all the DEs at IBM submitted a report on the technical projects they are working on, and what they are doing to reach-out to the IBM community. One question was very specific ..... how many people do you mentor? Over 2,000 IBM employees were personally mentored by a Distinguished Engineer. What a great story ... let's face it, who is in a better position to guide someone to a DE role, that one who is already there. And this does not include the other community enriching initiatives that our DEs are involved in. Such as round-tables, IBM Academy Affiliates, Technical Leadership Exchange events, local site and business unit initiatives, and so on. Industry Learning The Industry Learning program helps IBMers build industry skills and knowledge needed to more effectively sell and deliver value to our clients. By understanding the industry landscape and issues, IBM client-facing teams can better develop winning value propositions, and demonstrate expertise with their clients in order to become trusted business advisors. Experiential learning opportunities In addition to more formal ways of learning in the classroom or through e-learning, IBM has developed an experiential-based learning program designed to help employees take advantage of a range of on-the-job learning opportunities. The program provides structure and guidance on how to create and participate in unique learning opportunities. It is an enabler to help employees navigate their professional and career development in IBM. The program is currently deployed to over 150,000 IBM employees worldwide. In 2008, there were over 2,800 available opportunities in the "opportunity posting bank" where employees can see what opportunities are available. Over 2,100 employees participated in opportunities globally. Mentoring A focus area in 2008 was to use mentoring to increase skill levels of employees in emerging countries. IBM established an international mentoring program whereby subject matter experts from the U.S. were matched with leaders from such countries as South Africa, India and China in a mentoring relationship. The focus was on knowledge and skill transfer on helping these employees grow leadership skills. IBM is also involved with a university mentoring program in Africa, whereby IBM employees mentor university students. Today, over one third of the employee population has been voluntarily participating in mentoring and little under a third of the population has been using mentoring as a critical component of their development planning to acquire new skills. Leadership Development IBM continues to invest in developing leadership capabilities and cultivating our leadership pipeline with LEADing@IBM program— which includes employees who have the potential to become managers, newly appointed managers and experienced leaders at all levels. In addition, IBM is not just be looking at how to improve people’s skills, but also at how to enable a person to have the full set of capabilities for a new role in an emerging country, rather than an existing role in a mature country. This type of integrated talent management will be needed in a globally integrated enterprise. Leadership Talent within growth countries is critical and we are implementing an integrated leadership/talent development framework to address the leadership development paradox - - exponential growth and inexperienced talent.
  • Analogy is taking four separate vitamins or a single multi-vitamin.
  • Numbers in yellow: Number of AMA ServSIG 2010 abstracts that study each type of service system… (http://www.servsig2010.org/) Of 132 total abstracts… 10 studies all types of service systems 19 could not be classified In a moment we will look at definitions of quality of life, but for the moment, consider that everyday we all depend on 13 systems to have a relatively high quality of life, and if any one of these systems goes out or stops providing good service, then our quality of life suffers…. Transportation, Water, Food, Energy, Information, Buildings, Retail, Banking & Financial Services (like credit cards), Healthcare, Education, and Government at the City, State, and National levels…. Volcanic ash, hurricanes, earthquakes, snow storms, floods are some of the types of natural disasters that impact the operation of these service systems – but human made challenges like budget crises, bank failures, terrorism, wars, etc. can also impact the operation of these 13 all important service systems. Moreover, even when these systems are operating normally – we humans may not be satisfied with the quality of service or the quality of jobs in these systems. We want both the quality of service and the quality of jobs in these systems to get better year over year, ideally, but sometimes, like healthcare and education, the cost of maintaining existing quality levels seems to be a challenge as costs continue to rise… why is that “smarter” or sustainable innovation, which continuously reduces waste, and expands the capabilities of these systems is so hard to achieve? Can we truly achieve smarter systems and modern service? A number of organizations are asking these questions – and before looking at how these questions are being formalized into grand challenge questions for society – let’s look at what an IBM report concluded after surveying about 400 economists…. ==================== Quality of life for the average citizen (voter) depends on the quality of service and quality of jobs in 13 basic systems….. Local progress (from the perspective of the average citizen or voter) can be defined for our purposes as (quality of service & jobs) + returns (the provider, which is really the investor perspective, the risk taker in provisioning the service) + security (the authority or government perspective on the cost of maintaining order, and dealing with rules and rule violations) + smarter (or the first derivative – does all this get better over time – parents often talk about wanting to help create a better world for their children - sustainable innovation, means reducing waste, being good stewards of the planet, and expanding our capabilities to do things better and respond to challenges and outlier events better)…. Without putting too fine a point on it, most of the really important grand challenges in business and society relate to improving quality of life. Quality of life is a function of both quality of service from systems and quality of opportunities (or jobs) in systems. We have identified 13 systems that fit into three major categories – systems that focus on basic things people need, systems that focus on people’s activities and development, and systems that focus on governing. IBM’s Institute for Business Value has identified a $4 trillion challenge that can be addressed by using a system of systems approach. Employment data… 2008 http://www.bls.gov/news.release/ecopro.t02.htm A. 3+0.4+0.5+8.9+1.4+2.0=16.2 B. C.13.1+1.8=14.9 Total 150,932 (100%) Transportation (Transportation and Warehousing 4,505 (3%)) Water & Waste (Utilities 560 (0.4%)) Food & Manufacturing (Mining 717 (0.5%), Manufacturing 13,431 (8.9%), Agriculture, Forestry, Fishing 2,098 (1.4%)) Energy & Electricity Information (Information 2,997 (2%)) Construction (Construction 7,215 (4.8%)) Retail & Hospitality (Wholesale Trade 5,964 (4.0%), Retail Trade 15,356 (10.2%), Leisure and hospitality 13,459 (8.9%)) Financial & Banking/Business & Consulting (Financial activities 8,146 (5.4%), Professional and business services 17,778 (11.8%), Other services 6,333 (4.2%)) Healthcare (Healthcare and social assistance 15,819 (10.5%) Education (Educational services 3,037 (2%), Self-employed and unpaid family 9,313 (6.2%), Secondary jobs self-employed and unpaid family 1,524 (1.0%)) City Gov State Gov (State and local government 19,735 (13.1%)) Federal Gov (Federal government 2,764 (1.8%))
  • Korsten, P. and Seider, C. (2010) The world’s US$4 trillion challenge: Using a system-of-systems approach to build a smarter planet. IBM Institute for Business Value. http://www-935.ibm.com/services/us/gbs/bus/html/ibv-smarter-planet-system-of-systems.html The IBM report concluded that our planet can be viewed as a complex, dynamic, highly interconnected $54 trillion system of systems…. Some of you recognize that $54 trillion number is 100% if the WW 2008 GDP, and because GDP does not capture all the value (both gray and black market, as well as many types of value created by families and communities that is not part of formal economic exchange) the real value is much higher – but still $54 trillion per year is a very large number. The US economy is about 20-25% of the total. Also the top 2000 publically traded companies in the world, have annual revenues that are nearly 50% of this amount. So while it is a large number, it is possible to estimate the contribution made by individual nations and individual large businesses – and most importantly it is possible to see how complex and interconnected these systems are. But what about the waste or inefficiencies in these systems…
  • Korsten, P. and Seider, C. (2010) The world’s US$4 trillion challenge: Using a system-of-systems approach to build a smarter planet. IBM Institute for Business Value. http://www-935.ibm.com/services/us/gbs/bus/html/ibv-smarter-planet-system-of-systems.html The 480 economists surveyed estimate that all the systems carry inefficientes of up to $15 trillion, of which $4 trillion could be eliminated… The title of this IBM Business Value report is in fact “The World’s $4 Trillion Challenge: Using a system of systems approach to build a smarter planet.” One implication of this report since cities are where most of the population of the world is concentrated, is that some number of cities have over $1B in annual waste and inefficiencies that can be eliminated. This report is required reading for everyone in cities and universities around the world, who are interested in partnering together to first (1) estimate and develop ways of measuring the inefficiencies, and then (2) create actions plans that can compete for funding and other resources to make needed changes. As the systems reduce waste and expand capabilities for measuring inefficiencies, the systems become smarter systems and quality of life is improved thru modern service… And the good news is that every day there are more and more success stories being created. For example, the 2009 IBM Annual Report contains a map of the world….
  • Ross Dawson says “Collaboration drives everything” in his talk about the future of universities… https://deimos.apple.com/WebObjects/Core.woa/BrowsePrivately/griffith.edu.au.3684852440 SSMED or service science, for short, provides a transdisciplinary framework for organizing student learning around 13 systems areas and 13 specialized academic discipline areas. We have already discussed the 13 systems areas, and the three groups (flows, human activity, and governing)… the discipline areas are organized into four areas that deal with stakeholders, resources, change, and value creation. If we have time, I have included some back-up slides that describes service science in the next level of detail. However, to understand the transdisciplinary framework, one just needs to appreciate that discipline areas such as marketing, operations, public policy, strategy, psychology, industrial engineering, computer science, organizational science, economics, statistics, and others can be applied to any of the 13 types of systems. Service science provides a transdisciplinary framework to organize problem sets and exercises that help students in any of these disciplines become better T-shaped professionals, and ready for teamwork on multidisciplinary teams working to improve any type of service system. As existing disciplines graduate more students who are T-shaped, and have exposure to service science, the world becomes better prepared to solve grand challenge problems and create smarter systems that deliver modern service. Especially, where students have had the opportunity to work as part of an urban innovation center that links their university with real-world problems in their urban environment – they will have important experiences to help them contribute to solving grand challenge problems. ================================================ SSMED (Service Science, Management, Engineering and Design) Systems change over their life cycle… what is inside become outside and vice versa In the course of the lifecycle… systems are merged and divested (fusion and fission) systems are insourced and outsourced (leased/contracted relations) systems are input and output (owner ship relations) SSMED standard should ensure people know 13 systems and 13 disciplines/professions (the key is knowing them all to the right level to be able to communicate and problem-solve effectively) Multidisciplinary teams – solve problems that require discipline knowledge Interdisciplinary teams – solve harder problems, because they create new knowledge in between disciplines Transdisciplinary teams – solve very hard problems, because the people know discipline and system knowledge
  • http://www.engineeringchallenges.org/ And the NAE’s Engineering Grand Challenge problems include – making solar energy economical – which fits into category 4. Smarter Energy… there are at least two NAE grand challenges that related to 10. Smarter Education systems – Advance personalized learning and Engineer the tools of scientific discovery… one might also want to include enhance virtual reality and reverse engineer the brain – and I included those under 5. Smarter Information systems… the point is that solving any one of these 14 NAE grand challenge problems has the potential to have significant impact on one or more of the 13 systems that we all depend on every day for quality of life… And so now would be a good time to say a little bit more about the component measurements and the challenges of defining quality of life…
  • High school drop out rates in cities can be high… by increasing focus on system of systems in all grade levels, especially STEM discussions of how to study and then propose solutions to local community challenges – there is evidence that exemplar programs increase the diversity and desire of students to go onto college in STEM areas, and then go on to jobs that use these skills to improve systems…. A number of NAE studies as well as NMC study on challenge-based learning provide encouraging information – also IBM has a Smater Learning white paper which confirms some of these findings. http://www.ibm.com/ibm/ideasfromibm/us/smartplanet/topics/educationtechnology/20090601/index1.shtml See Challenge-Based Learning: http://www.nmc.org/news/nmc/nmc-study-confirms-effectiveness-challenge-based-learning Smarter Planet University Jam Final report at: https://www.ibm.com/developerworks/university/smartplanet_jam/ Awards given to top participants, e.g., faculty and students… Prizes as Incentives for Public-Private Partnerships In recent years, there has been a renaissance in “incentive prizes” – which reward contestants for achieving a specific future goal. http://blog.ostp.gov/2009/06/17/prizes-as-incentives-for-public-private-partnerships/comment-page-2/ crowd-sourcing the world.... see http:// www.itsa.org /challenge/ WE are smarter than ME, i.e. and a diversified, independent, decentralized community can outperform even the greatest of experts. This challenge is open to entrepreneurs, commuters, transportation experts, researchers, universities, students, scholars, scientists and citizens from all fields around the globe. All ideas will be reviewed discussed and rated by an open global community, to determine the best and most creative ideas to effectively solve the consequences of traffic congestion. The winner will be announced during the 16th World Congress on Intelligent Transportation Systems in Stockholm, Sweden, September 21 - 25, 2009, and will receive a cash a of $50,000 USD , as well as development and implementation support to pursue turning the ideas into real-world solutions. Ideas will be reviewed, discussed and rated by an open global community. The public will determine the best and most creative ideas to effectively solve the consequences of traffic congestion. The winner will be chosen by the community. For the next 60 days the community (which anyone can join ) will review and rate all submissions on 5 criteria. On August 1st, the top 9 solutions will be announced. These 9 will then submit more information including a slideshow, a video and founder bios. Based on this information, the participating community members can decide who they each want to back. Each member allocates points they have earned through what is known as a predictive market. The overall winner is the solution that receives the most backing. This challenge truly is: for the people, by the people, and decided by the people.
  • Source: Urban Age research Urban-age.net
  • T-shaped people are ready for T-eamwork – they are excellent communicators, with real world experience, and deep (or specialized) in at least one discipline and systems area, but with good team work skills interacting with others who are deep in other disciplines and systems areas. Also, T-shaped professionals also make excellent entrepreneurs, able to innovate with others to create new technology, business, and societal innovations. T-shaped people are adaptive innovators, and well prepared for life-long learning in case they need to become deep in some new area… they are better prepared than I-shaped people, who lack the breadth. Therefore, IBM and other public and private organizations are looking to hire more of this new kind of skills and experience profile – one that is both broad and deep.. These organizations have been collaborating with universities around the world to establish a new area of study known as service science, management, engineering, and design (SSMED) – to prepare computer scientists, MBAs, industrial engineers, operations research, management of information systems, systems engineers, and students of many other discipline areas – to understand better how to work on multidisciplinary teams and attack the grand challenge problems associated with improving service systems…
  • Ecology is the study of the abundance and distribution of entities in an environment, and how the entities interact with each other and their environment over successive generations of entities. Most people think of ecology in terms of living organisms, like plants and animals in a natural environment. However, the concept of ecology is more general and can be applied to entities as diverse as the populations of types of atoms in stars to the types of businesses in a national economy. I want to start my talk today on “service,” by first thinking broadly about ecologies of entities and their interactions. Eventually, we will get to human-made service system entities and human-made value-cocreation mechanisms… but for today, let’s really start at the very beginning – the big bang. About 14B years ago (indicated by the top of this purple bar), our universe started with a big bang. And through a process of known as fusion, stars turned populations of lighter atoms like hydrogen into heavier atoms like helium, and when stars of a certain size have done all the fusion they could, they would start slowing down, and eventually collapse rapidly, go nova, explode and send heavier atoms out into the universe, and eventually new stars form, and the process repeats over and over, creating stars with different populations of types of atoms, including heavier and heavier elments. So where did our sun and the earth come from…. Eventually after about ten billion years in the ecology of stars and atoms within stars, a very important star formed our sun (the yellow on the left) – and there were plenty of iron and nickel atoms swirling about as our sun formed, and began to burn 4.5B years ago, and the Earth formed about 4.3B years ago (the blue on the left)… In less than a billion years, the early earth evolved a remarkable ecology of complex molecules, including amino acids, and after less than a billion years, an ecology of bacteria took hold on early earth (the bright green on the left). The ecology of single cell bacteria flourished and after another billion years of interactions between the bacteria, the first multicellular organisms formed, and soon the ecology of sponges (the light blue on the left) and other multi-cellular entities began to spread out across the earth. Then after nearly two billion years, a type of division of labor between the cells in multicelluar organism lead to entities with cells acting as neurons in the first clams (the red on the left), and these neurons allowed the clams to open and close at the right time. After only 200 million years, tribolites appeared the first organisms with dense neural structures that could be called brains appeared (the black on the left), and then after about 300 million years, multicelluar organisms as complex as bees appeared (the olive on the left), and these were social insects, with division of labor among individuals in a population, with queens, drones, worker bees. So 200 million years ago, over 13B years after the big bang, the ecology of living entities is well established on planet earth, including social entities with brains and division of labor between individuals in a population…. Living in colonies that some have compared to human cities – where thousands of individuals live in close proximity and divide up the work that needs to be done to help the colony survive through many, many generations of individuals that come and go. Bees are still hear today. And their wingless cousins, called ants, have taken division of labor to incredible levels of complexity in ant cities in nearly every ecological niche on the planet, except under water. Now let’s look at the human ecology,and the formation of service system entities and value-cocreation mechanisms, a small portion of which is represented by the colored bar on the right. Recall bees appeared about 200 million years ago, a small but noticeable fraction of the age of the universe. Now take 1% of this little olive slice, which is 2 million years… that is how long people have been on earth, just one percent of this little olive slice here. What did people do in most of that 2million years? Basically, they spread out to every corner of the planet, and changed their skin color, eye colors, and hair colors, they spread out and became diverse with many different appearances and languages. It took most of that 200 millions just to spread out and cover most of the planet with people. When there was no more room to spread out the density of people in regions went up…. Now take 1% of that 2million years of human history which basically involved spreading out to every corner of the planet and becoming more diverse, recall ecology is the study of abundance and distribution and types of interactions, and 1% of that 2million years is just 20,000 years, and now divide that in half and that represents 10,000 years. The bar on the right represents 10,000 years or just 500 generations of people, if a generation is about 20 years. 500 generations ago humans built the first cities, prior to this there were no cities so the roughly 100M people spread out around the world 0% lived in cities, but about 500 generations ago the first cities formed, and division of labor and human-made service interactions based on division of labor took off – this is our human big bang – the explosion of division of labor in cities. Cities were the big bang for service scientists, because that is when the diversity of specialized roles and division of labor, which is at the heart of a knowledge-based service economy really begins to take off... So cities are the first really important type of human-made service system entities for service scientists to study, the people living in the city, the urban dwellers or citizens are both customers of and providers of service to each other, and division of labor is the first really important type of human-made value-cocreation mechanism for service scientists to study. (Note families are a very important type of service system entity, arguably more important than cities and certainly much older – however, family structure is more an evolution of primate family structure – and so in a sense is less of a human-made service system entity and more of an inherited service system entity… however, in the early cities often the trades were handed down father to son, and mother to daughter as early service businesses were often family run enterprises in which the children participated – so families specialized and the family names often reflect those specialization – for example, much later in England we get the family names like smith, mason, taylor, cooper, etc.) So to a service scientist, we are very excited about cities as important types of service system entities, and division of labor as an important type of value-cocreation mechanism, and all this really takes off in a big way just 500 generations ago when the world population was just getting to around 100M people spread out all around the world – so 10,000 years about about 1% of the worlds population was living in early versions of cities. It wasn’t until 1900 that 10% of the world’s then nearly 2B people lived in cities, and just this last decade that 50% of the worlds 6B people lived in cities, and by 2050 75% of the worlds projected 10B population will be urban dwellers. If there is a human-made service system that we need to design right, it is cities. It should be noted that the growth of what economist call the service sector, parallels almost exactly the growth of urban population size and increased division-of-labor opportunities that cities enable – so in a very real sense SERVICE GROWTH IS CITY GROWTH OR URBAN POPULATION GROWTH… in the last decade service jobs passed agriculture jobs for the first time, and urban dwellers passed rural dwellers for the first time. But I am starting to get ahead of myself, let’s look at how the human-made ecology of service system entities and value-cocreation mechanisms evolved over the last 10,000 years or 500 generations. The population of artifacts with written language on them takes off about 6000 years ago or about 300 generations ago (the yellow bar on the right). Expertise with symbols helped certain professions form – and the first computers were people writing and processing symbols - scribes were required, another division of labor – so the service of reading and writing, which had a limited market at first began to emerge to help keep better records. Scribes were in many ways the first computers, writing and reading back symbols – and could remember more and more accurately than anyone else. Written laws (blue on right) that govern human behavior in cities takes off about 5000 years ago – including laws about property rights, and punishment for crimes. Shortly there after, coins become quite common as the first type of standard monetary and weight measurement system (green on right). So legal and economic infrastructure for future service system entities come along about 5000 years ago, or 250 generations ago, with perhaps 2% of the population living in cities…. (historical footnote: Paper money notes don’t come along much until around about 1400 years ago – bank notes, so use of coins is significantly older than paper money, and paper money really required banks as service system entities before paper money could succeed.). About 50 generations ago, we get the emergence of another one of the great types of service system entities – namely universities (light blue line) – students are the customers, as well as the employers that need the students. Universities help feed the division of labor in cities that needed specialized skills, including the research discipline skills needed to deepen bodies of knowledge in particular discipline areas. The red line indicates the population of printing presses taking off in the world, and hence the number of books and newspapers. This was only about 500 years or 25 generations ago. Now university faculty and students could more easily get books, and cities began to expand as the world’s population grew, and more cities had universities as well. The black line indicates the beginning of the industrial revolution about 200 years ago, the sream engine, railroads, telegraph and proliferation of the next great type of service system entity – the manufacturing businesses - that benefited from standard parts, technological advances and scale economies, and required professional managers and engineers. About 100 years ago, universities began adding business schools to keep up with the demand for specialized business management skills, and many new engineering disciplines including civil engineering, mechanical engineering, chemical engineering, and electrical engineering, fuel specialization and division of labor. By 1900, just over 100 years ago, or 5 generations ago 10% of the worlds population, or about 200 million people were living in cities and many of those cities had universities or were starting universities. Again fueling specialization, division of labor, and the growth of service as a component of the economy measured by traditional economists. Finally, just 60 years ago or 3 generations ago, the electronic semiconductor transistor was developed (indicated by the olive colored line on the right), and the information age took off, and many information intensive service activities could now benefit from computers to improve technology (e.g., accounting) and many other areas. So to recap, cities are one of the oldest and most important type of service system and universities are an important and old type of service system, as well as many types of businesses. Service science is the study of service system entities, their abundance and distribution, and their interactions. Division of labor is one of the most important types of value cocreation mechanisms, and people often need specialized skills to fill roles in service systems. Service science like ecology studies entities and their interactions over successive generations. New types of human-made service system entities and value-cocreation mechanisms continue to form, like wikipedia and peer production systems. Age of Unvierse (Wikipedia) The age of the universe is the time elapsed between the Big Bang and the present day. Current theory and observations suggest that the universe is 13.75 ±0.17 billion years old. [1] Age of Sun The Sun was formed about 4.57 billion years ago when a hydrogen molecular cloud collapsed. [85] Solar formation is dated in two ways: the Sun's current main sequence age, determined using computer models of stellar evolution and nucleocosmochronology , is thought to be about 4.57 billion years. [86] This is in close accord with the radiometric date of the oldest Solar System material, at 4.567 billion years ago. [87] [88] Age of Earth The age of the Earth is around 4.54 billion years (4.54 × 109 years ± 1%). [1] [2] [3] This age has been determined by radiometric age dating of meteorite material and is consistent with the ages of the oldest-known terrestrial and lunar samples . The Sun , in comparison, is about 4.57 billion years old , about 30 million years older. Age of Bacteria (Uni-cellular life) The ancestors of modern bacteria were single-celled microorganisms that were the first forms of life to develop on earth, about 4 billion years ago. For about 3 billion years, all organisms were microscopic, and bacteria and archaea were the dominant forms of life. [22] [23] Although bacterial fossils exist, such as stromatolites , their lack of distinctive morphology prevents them from being used to examine the history of bacterial evolution, or to date the time of origin of a particular bacterial species. However, gene sequences can be used to reconstruct the bacterial phylogeny , and these studies indicate that bacteria diverged first from the archaeal/eukaryotic lineage. [24] The most recent common ancestor of bacteria and archaea was probably a hyperthermophile that lived about 2.5 billion–3.2 billion years ago. [25] [26] Cities (Wikipedia) Early cities developed in a number of regions of the ancient world. Mesopotamia can claim the earliest cities, particularly Eridu, Uruk, and Ur. After Mesopotamia, this culture arose in Syria and Anatolia, as shown by the city of Çatalhöyük (7500-5700BC). Writing (Wikipedia) Writing is an extension of human language across time and space. Writing most likely began as a consequence of political expansion in ancient cultures, which needed reliable means for transmitting information, maintaining financial accounts, keeping historical records, and similar activities. Around the 4th millennium BC, the complexity of trade and administration outgrew the power of memory, and writing became a more dependable method of recording and presenting transactions in a permanent form [2] . In both Mesoamerica and Ancient Egypt writing may have evolved through calendrics and a political necessity for recording historical and environmental events. Written Law (Wikipedia) The history of law is closely connected to the development of civilization . Ancient Egyptian law, dating as far back as 3000 BC, contained a civil code that was probably broken into twelve books. It was based on the concept of Ma'at , characterised by tradition, rhetorical speech, social equality and impartiality. [81] [82] By the 22nd century BC, the ancient Sumerian ruler Ur- Nammu had formulated the first law code , which consisted of casuistic statements ("if ... then ..."). Around 1760 BC, King Hammurabi further developed Babylonian law , by codifying and inscribing it in stone. Hammurabi placed several copies of his law code throughout the kingdom of Babylon as stelae , for the entire public to see; this became known as the Codex Hammurabi . The most intact copy of these stelae was discovered in the 19th century by British Assyriologists, and has since been fully transliterated and translated into various languages, including English, German, and French. [83] Money (Wikipedia) Many cultures around the world eventually developed the use of commodity money . The shekel was originally both a unit of currency and a unit of weight. [10] . The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money – usually, the shell of the money cowry ( Cypraea moneta ) were used. According to Herodotus , and most modern scholars, the Lydians were the first people to introduce the use of gold and silver coin . [11] It is thought that these first stamped coins were minted around 650–600 BC. [12] Universities (Wikipedia) Prior to their formal establishment, many medieval universities were run for hundreds of years as Christian cathedral schools or monastic schools ( Scholae monasticae ), in which monks and nuns taught classes; evidence of these immediate forerunners of the later university at many places dates back to the 6th century AD. [7] The first universities were the University of Bologna (1088), the University of Paris (c. 1150, later associated with the Sorbonne ), the University of Oxford (1167), the University of Palencia (1208), the University of Cambridge (1209), the University of Salamanca (1218), the University of Montpellier (1220), the University of Padua (1222), the University of Naples Federico II (1224), the University of Toulouse (1229). [8] [9] Printing and Books (Wikipedia) Johannes Gutenberg's work on the printing press began in approximately 1436 when he partnered with Andreas Dritzehn—a man he had previously instructed in gem-cutting—and Andreas Heilmann, owner of a paper mill. [34] However, it was not until a 1439 lawsuit against Gutenberg that an official record exists; witnesses' testimony discussed Gutenberg's types, an inventory of metals (including lead), and his type molds. [34]
  • For physic, chemistry, need to add planetary science or environmental science – weather matters to the formation of life Physics – Planetary Ecology (Weather, Heating and Cooling Processes) Biology – Biological Ecology (Neural & Social Organisms) – many positive feedback loops, in neural & social -> physical symbol systems Service Ecology – Human Ecology (Globally Integrated Formal Service Systems) Measurement Theory (Instrumented) Network Theory (Interconnected) Statistical Control Theory, Decision Sciences, Knowledge Sciences (Intelligence)
  • Service-2 = intentional human activity or interactions that result in mutually beneficial outcomes (or simply, value-cocreation) (service-2 is an emerging service science or service-dominant logic way of looking at the world) (note that in service-2, both farms and factories are types of service systems!) (service-2 asks about what kinds of specialized labor (knowledge) is required, how is technology used to coordinate activities, and what type of rules (a kind of social technology) are also being used to coordinate activities) Betancourt, R. and Gautschi, D. (2001) Product innovation in services: A framework for analysis. Book Series: Advances in Applied Microeconomics. Volume 10. Pp. 155-183. The lesson of history is that technologies underlie improve value creation mechanisms when combined with the right societal rules. Nonzero – is about win-win interaction (not win-lose interactions that require someone to lose for another to get value). Morals and markets – is about balancing what is good for individuals with what is good for the collective. Paul Romer’s Charter Cities video – is about the need for the right rules and incentives in order to create investment in deploying technologies/infrastructures to get the most econoimc growth.
  • This world map shows the population growth per hour projected through 2015 in some of the fastest growing cities with populations over one million people. Source: Urban Age
  • Universities are often in the top ten list for largest employers of cities. City and county employees are usually at the very top of the list. The economic impact of universities can be quite substantial: http://www.edu-impact.com / For example, Harvard’s economic impact is substantial for Boston area and Massachusetts… $4.8B and 44,000 jobs. "Putting it all together 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. Statewide, Harvard directly and indirectly accounted for more than $5.3 billion in economic activity and more than 48,500 jobs. And if we add in people who are employed by companies with roots at Harvard (companies started by Harvard faculty members, or started with the goal of commercializing new technologies first developed at the University, examples of which are discussed below) then we can estimate that Harvard accounts, directly or indirectly, for more than 51,500 jobs in the Boston area, and more than 56,000 throughout the Commonwealth."
  • Analysis: Antonio Fischetto and Giovanna Lella (URome, Italy) students visiting IBM Almaden
  • … cities are a system of systems with dense population, which creates challenges and opportunities and even the potential for many new types of careers… some statistics… Demographic change: During the first decade of the 21 st century, for the first time in history, more than 50% of the world’s population live in cities and the urban population of all nations continues to grow. For developed nations, the urban population has reached 70% and continues to increase. Challenges: The negative impacts of urbanization are well known from traffic congestion, housing, clean water, and energy shortages, pollution, waste disposal costs, pandemic risks, high school drop-out rates, tax burden, and environmental stress (noise, lights at night, carcinogens, toxins, etc.). Opportunity: Cities may be the key building blocks for a sustainable planet, where innovations can quickly scale to impact the lives of millions of people. While technology will not be a panacea, rapidly advancing technology will offer new opportunities for efficiencies. Cities provide opportunities to more rapidly deploy and scale up advanced technologies to benefit the people living in a region. Careers: As urban sustainability and innovation projects increase in quantity, attractive long-term career paths will open up for students properly prepared. Examples: More US cities are adopting climate change action plans. PlaNYC (released 2007) has a focus initiatives that apply technology to reduce waste and continuously improve a long-term sustainability and quality of life roadmap for the city. In October 2009, 30 new initiatives to grow New York City’s green economy were announced by the mayor’s office, including an urban technology innovation center to promote smart building best practices and develop NYC’s green tech workforce. Without putting too fine a point on it, most of the really important grand challenges in business and society relate to improving quality of life. Quality of life is a function of both quality of service from systems and quality of opportunities (or jobs) in systems. We have identified 13 systems that fit into three major categories – systems that focus on basic things people need, systems that focus on people’s activities and development, and systems that focus on governing. IBM’s Institute for Business Value has identified a $4 trillion challenge that can be addressed by using a system of systems approach.
  • A growing number of cities are partnering with their local universities to address their grand challenge problems and to improve quality of life through investments in smarter systems and modern service… To understand how universities can respond and help cities, it is important to understand that universities are mini-cities (system of systems) – with their own operations and challenges. Cities are important building blocks in nations. Universities are important building blocks in cities.
  • http://web.mit.edu/urban_or_book/www/book/ http://www.usucoalition.org/downloads/part4/great_cities_great_universities.pdf As urban citizens demand more urban services – cities are challenged to pay for those additional services, and budgets become severely strained. The response of a growing number of universities, as members of those communities and good urban citizens, is to become partners in solving those problems. In fact many universities have established innovation centers, often with industry partners, that study the system of systems that make up the world, nations, cities, and even universities…. Universities and Cities: A Call to Action Over the past three years, the leaders of the nation’s public urban research universities have convened in historic numbers to articulate a vision for how higher education can respond to the challenges facing America’s cities and metropolitan regions. Never before has this agenda had greater urgency for our nation. Demographic changes within the United States have been dramatic, with nearly eight in 10 Americans now living in cities. According to the Brookings Institution, while the top 100 metropolitan areas make up only 12% of the land mass, they produce fully 75% of the gross domestic product, generate 78% of competitive patents, and account for 68% of the nation’s jobs. Increasingly, the prosperity of our cities and metro areas is inextricably linked to our national prosperity. Other Material and Readings (thanks to Antonio and Giovanna, my students from URome for their help) The university as urban developer: case studies and analysis : http:// books.google.com/books?id = vmcgIYDVWoIC&printsec = frontcover&dq = The+University+as+Urban+Developer&lr =&hl= it&source = gbs_similarbooks_s&cad =1#v= onepage&q&f =false Global Universities and Urban Development: http://www.lincolninst.edu/pubs/1375_Global-Universities-and-Urban-Development Partnerships for Smart Growth: University-Community Collaboration for Better Public Spaces: http:// books.google.com/books?id =lLbuilgD32QC&printsec= frontcover&dq = The+University+as+Urban+Developer&lr =&hl= it&source = gbs_similarbooks_s&cad =1#v= onepage&q =The%20University%20as%20Urban%20Developer&f=false University Economic Impact Reports are easily available for many universities… including: Harvard University: pdf file Stanford University: pdf file Colorado State University: pdf file Boston University: pdf file UCSF: http:// www.pleasantonweekly.com/news/show_story.php?id =4364 University of Rochester : http:// www.rochester.edu/aboutus/connections/development.html University of Buffalo: http:// www.buffalo.edu/community/impact_economic.html James Madison University: http://www.jmu.edu/jmuweb/general/news/general10884.shtml Trani, Eugene P. (2010) The Indispensable University: Higher Education, Economic Development and the Knowledge Economy. Rowman & Littlefield Education. The Indispensable University asserts that higher education is undergoing a "major transformation that is fundamentally redefining the relationship of colleges and universities to the broader community. "This transformation is occurring at every level of higher education, from community colleges, to comprehensive undergraduate schools, to research-intensive doctoral universities. And it is becoming an increasingly global phenomenon as universities around the world seek to redefine themselves in ways that will enable them to become significant actors in the modern, knowledge-based economy." By most definitions, the knowl edge economy focuses on the production and management of knowledge in the reality of economic constraints. The bulk of the book weaves together case studies and best practices about higher education from well-known urban and land-grant universities and community colleges as well as chapters devoted to examples from Britain and Ireland, the Middle East, and developing countries known as the BRIC Nations -- Brazil, Russia, India, and China. The book, which includes a foreword by former Gov. Timothy M. Kaine, adds to the growing literature on why it makes profound sense for cities to embrace what Harvard professor Michael Porter, "a leading economic development thinker," as he calls the anchor institutions. So does the urban think tank CEOs for Cities in a white paper released this month: Institutions of higher education are "anchored by place. Quite simply, they will never move and are highly motivated to invest" in their communities. .... "Indeed, contemporary economic development theory tends to place a heavier emphasis on talent availability than on other factors that may have previously exercised a greater impact on regional prosperity. In addition to their role in economic development, we have also shown that colleges and universities are increasingly seen by their communities as essential to social and cultural progress. "The research capacities of faculty in addressing matters that may appear intractable, the energy and enthusiasm of students, and the university's potential role in convening groups that address major social challenges are all vital assets for building social capital in contemporary society. In fact, universities often have the kind of credibility that enables them to bring disparate groups together to focus on shared interests more successfully than many other community institutions." The book pauses periodically to reflect on the role of the college president as a community leaders, no surprise given Trani's experience in leading regional groups. Times have certainly changed since Trani first became a university CEO. "Almost every high-level executive position in the country, whether in the public, private or nonprofit sectors, requires a far more complex set of skills today than thirty years ago," he writes. But at the same time, you can probably tell which universities advance their regions by the president's decision to stay inside the campus or travel comfortably outside the academic boundaries. "There is no other individual at a college or university who can mobilize the array of resources -- real estate development, procurement and employment policies, allocation of faculty time, and student service learning projects -- that a president can. Academic leaders cannot accomplish this alone, but they must develop a vision that sees how an entire university can contribute to the goal of community enhancement." The book touches on resulting "town-gown" controversies when university expansion collides with neighborhood interests, which occurred with VCU and Oregon Hill. It also acknowledges those who criticize collaborations and partnerships with community groups for fear of undermining "the sanctity of academic values." But Trani and Holsworth argue there's always a way to figure out how to collaborate beyond academia while preserving scholarly standards. http://www.edu-impact.com / If you look at it, you can find a lot of reports about the impact, under different points of view, of US universities in the cities or in the regions where they are located. Here below I just quote something about Harvard university and I attach the pdf.file about it: "Putting it all together 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. Statewide, Harvard directly and indirectly accounted for more than $5.3 billion in economic activity and more than 48,500 jobs. And if we add in people who are employed by companies with roots at Harvard (companies started by Harvard faculty members, or started with the goal of commercializing new technologies first developed at the University, examples of which are discussed below) then we can estimate that Harvard accounts, directly or indirectly, for more than 51,500 jobs in the Boston area, and more than 56,000 throughout the Commonwealth." 2) This is an intersting link for financial endowment ofa lot US universities: http://en.wikipedia.org/wiki/List_of_colleges_and_universities_in_the_United_States_by_endowment . I'll try to analyze it better. 3) And this is for the starting salary after degree: http://www.payscale.com/best-colleges/college-graduate-salary-statistics-by-location.asp
  • As universities become better partners with their host city, the innovations centers are strengthened and faculty and students get streams of data from different city systems from transportation, to water and waste, to healthcare, and energy systems…. Students learn to work on multidisciplinary teams and engage in understanding and creating proposed solutions to real-world problems that do not respect discipline boundaries – in this way students are better prepared to become good citizens in their future community, and to work on multidisciplinary teams when they graduate and get jobs… Urban Innovations Center are related to Urban Planning departments. However, Urban Planning tends to focus on land use and development, whereas Urban Innovations Centers are emerging with broader agendas…
  • Top 3000 cities: http://www.mongabay.com/cities_pop_02.htm Of course the opportunity is not just local – while local innovation impact the lives of staff, faculty, students and their families most directly – as cities partner more (twin city and sister city programs) and as universities also establish global collaborations with campuses in other regions of the world – the opportunity for better city-university partnerships is both local and global.
  • Of course, this is a case of universities, their staff, faculty, and students acting locally. In a sense, the cities are a living lab for the universities as they establish relevant projects and some create urban innovation centers… to help measure the waste in exisitng systems, and try to create smarter systems with more capabilities including provisioning and delivering modern service. As the list of cities with major populations indicates, the opportunity to create innovations that impact the lives of millions of people is a real opportunity for universities that can establish the right partnership with their host city…
  • IBM University Programs (IBM UP) has identified 30 major cities/universities around the world to be our focus in 2010. Of course, we work with over 5000 universities world wide, but nevertheless the focus on 30 cities and universities is important to create some exemplar programs and models…. By 2011 another 30 focus cities/universities will be added, and by 2012 we hope to have as many as 300 cities/universities that are partnering in the area of urban sustainable innovation or “Smarter Cities” …. US: Boston, New York, Los Angeles, Bay Area/SF-SJ, Atlanta, Miami, Pittsburg, DC-Metro-Baltimore, Houston, Phoenix DV: Toronto, London, Karlsruhe, Helsinki, Rome, Dubai, Singapore, Seoul, Tokyo, Melbourne, Porto Portugal EM: Mexico City, Rio De Janerio, Cairo, Duodomo/Dar Saleem, Istanbul, Moscow, India, Beijing, Manila, Bangkok US: Detroit-AnnArbor, Philadelphia, Seattle, Denver, Cincinatti, Minneapolis, Chicago,Dallas, Rochester, Raleigh DV: Calgary, Manchester-Cambridge, Madrid, Sydney, Paris, Johannesburg, Oslo, Riyadh, HongKong, Osaka EM: Saint Petersburg, Mumbai, Ho Chi Minh City, Buenos Aires, Sao Paolo, Quongzhou, Jordan, Shanghai, Bangalore, Lima Add Dublin Ireland… Girija Cheruvu Texas Italy India Lilian NYC, Texas Japan, S. Korea China Dianne Fodell North Carolina (Raleigh), Boston, Pittsburg London, Helsinki Poland, Mexico, Croatia, Central America
  • The mission of the Urban Service Systems Sustainability and Innovation Centers will be to increase understanding in three areas that can have a direct impact on quality of life in cities…. Holistic modeling, STEM Education Pipeline, and Entrepreneurship & Job Creation…. Area of Future Growth: Holistic Modeling and Analytics for Cities (Urban Service System Sustainability and Innovation Centers) Improve Input for this area: STEM (Science Technology Engineering and Mathematics) Education Pipeline, and Improve Output for this area: Jobs & Entrepreneurship Regarding quality of living and quality of infrastructure, Boston rated #33 in both rankings for 2009... http://www.mercer.com/qualityoflivingpr#Top_50_cities:_Quality_of_living What would it take to get Boston into the #1 position in both rankings? Also, of interest - ranking by population... http://www.mongabay.com/cities_pop_01.htm For truly large cities, Japan seems to do best in quality of living and quality of infrastructure.... Mercer evaluates local living conditions in all the 420 cities it surveys worldwide. Living conditions are analysed according to 39 factors, grouped in 10 categories: Political and social environment (political stability, crime, law enforcement, etc) Economic environment (currency exchange regulations, banking services, etc) Socio-cultural environment (censorship, limitations on personal freedom, etc) Health and sanitation (medical supplies and services, infectious diseases, sewage, waste disposal, air pollution, etc) Schools and education (standard and availability of international schools, etc) Public services and transportation (electricity, water, public transport, traffic congestion, etc) Recreation (restaurants, theatres, cinemas, sports and leisure, etc) Consumer goods (availability of food/daily consumption items, cars, etc) Housing (housing, household appliances, furniture, maintenance services, etc) Natural environment (climate, record of natural disasters)
  • Source: Building Luxury Hotels http://www.docstoc.com/docs/1604634/How-Much-Does-it-Cost-to-Build-a-Hotel IBM Case Study: St. Regis Hotel Shanghai Only Intelligent Building among 33 five stars hotels in the region Designed at 5.1% energy cost to revenue, now at 4.9% ... all other 5 star hotels average 8% 40% reduced energy cost / revenue vs. other 5 Star hotels
  • In conclusion, a focus on smarter systems and modern service can help cities and universities (along with other industry and government partners) to invest together in sustainable innovations, that both reduces waste and expands capabilities. Perhaps someday we may even discover and equivalent of Moore’s Law for improving service systems… but until that time, I want to say… ================================ Moore’s Law is sustained by investments that improve computational systems according to a roadmap Can we create an investment roadmap that will improve service systems according to a roadmap? GIE (Globally Integrated Enterprise) uses a run-transform-innovate investment model for continuous improvement. Run = use existing knowledge, routine operations and maintenance Transform = use industry best practice knowledge to gain the benefits of known improvements Innovation = create new knowledge that allows improvements in both ends and means of service systems, and the resources they configure. As information about service systems doubles each year, and storage, processing, and bandwidth rise, making globally better decisions is an important opportunity to explore. FYI.... short history of transistors, integrated circuits, and data centers From transistors... 1. The transistor is considered by many to be the greatest technology invention of the 20th Century 2. While the concept of the transistor has been around since the 1920's (Canadian Physicist Julius Edgar Lilienfeld's 1925 Patent - devices that use physical phenomenon of field electronic emissions)... 3. Commercially available individual transistors that could be wired into circuits, invented and commercialized in 1947 & 1948 (Bell Labs Shockley Point Contact/Junction Transistor Theory 1947, Raytheon CK703 first commercially available 1948) To Integrated circuits... 4. However, it was not until the late 1950's and early 1960's that manufacturing process advances and commercial applications began using many of them in integrated circuits (TI, Bell Labs, etc.) - Sept 1958 the first integrated circuit (Jack Kilby TI) To Moore's law.... 5. By 1965 Gordon Moore's (Intel) paper stated the number of transistors on a chip would double about every two years (and exponential increase that has over 40 years of confirmation)... 6. The number of transistors manufactured each year (in 2009) is estimated at 10**18 - 3.9 x 10**6 transistors produced in 1957 (tenth anniversary of first transistor) - abut 10**18 transistors manufactured in 2009 (62th anniversary of first transistor) To data centers and "electricity consumption" .... 7. By 2005, data centers and server farms consume 0.5% of total worldwide electricity production (1% if cooling is included) - 2005 consumption equivalent of seventeen 1000 MW powerplants - electric consumption for data centers doubled from 2000 to 2005 Sources: http://semiconductormuseum.com/HistoricTransistorTimeline_Index.htm http://www.mentor.com/company/industry_keynotes/upload/rhines-globalpress-low-power.pdf http://www.iop.org/EJ/article/1748-9326/3/3/034008/erl8_3_034008.pdf?request-id=7cf4b6e5-498f-4ed4-bfc9-76eda96773ce
  • Economics Service 1 = economic activities that are not agriculture or manufacturing Service 3 = a transformation that one economic entity performs with the permission of a second entity, that transforms the second entity or a possession of the second entity Service 4 = an exchange between economic entities that does not transfer ownership of a physical thing. Service Science Service 2 = human-made value-cocreation phenomena, specifically a mutually beneficial outcome proposed, agreed to, and realized by two or more service system entities interacting. Service system entities can be people, businesses, nations, and any other economic entities with legal rights, such as the ability to own property, enter into binding contracts, etc. Quantifiable measures associated with service system entity interactions over the life-time of the entity, include quality, productivity, compliance, and sustainable innovation measures. Service system entities configure four types of resources, accessible by four types of access rights, and reason about four types of stakeholders when designing value-cocreation interactions, and evaluating them via their processes of valuing. Both collaboration and competition can both be/not be forms of value-cocreation, depending on context Operations Service 5 = a production process that requires inputs from a customer entity Computer Science Service 6 = a modular capability that can be computationally accessed and composed with others Systems Engineering Service 7 = a system (with inputs, outputs, capacity limits, and performance characteristics) which is interconnected with other systems that may seek to access its capabilities to create benefits, and in which local optimization of the system interactions may not lead to global performance improvements Design and Psychology Service 8 = an experience of a customer entity that results from that customer entity interacting with provider entities’ offerings Marketing Service 9 = the application of competence (e.g., resources, skills, capabilities) for the benefit of another entity Service 10 = a customer-provider interaction that creates mutual benefits
  • Let’s agree on what the set of human-made service system entities are in the world, and the types of human-made value-cocreation mechanisms that connect them into networks are – and we can then study the entities and their interactions, like any proper systems science, such as ecology… And let’s make holistic service systems, such as cities, universities, and luxury hotels (smart buildings) – a priority for our study… these are important building blocks to get right!
  • Permission to re-distribute granted by Jim Spohrer – please request via email (spohrer@us.ibm.com) Reference content from this presentation as: Spohrer, JC (2010) Service Science: Progress and Directions. June 2010. This talk provides a concise introduction to the area of “Smarter Systems and Modern Service” with a focus on urban systems and service innovation, especially how cities and universities and cities can create a vital partnership and together (better than separately) thrive on accelerating change and sustainable innovation – driven primarily by IT advances and globalization, but also requiring skill changes, organizational changes, business model changes, policy changes, and investment model changes – to truly adapt and thrive in the age of smarter systems and modern service – or more simply “the decade of smart.” But I want to start by sharing some relevant quotes, which will surface in various forms during the course of this talk… The first you may have seen on TV or heard on the radio – it is from IBM – Instrumented, Interconnected, Intellient – Let’s build a smarter planet (more on this one shortly) Second, If we are going to build a smarter planet, let’s start by building smarter cities, (as we will see cities turn out to be ideal building blocks to get right for a number of reasons) And if we focus on cities, then the quote from the Foundation Metropolitan paints the right picture, cities learning from cities learning from cities… The next is probably the best known quote in the group “think global, act local” (we will revisit this important thought) Since all the major cities of the world have one or more universities, the next quote is of interest “the future is born in universities” And two more well known quotes about the future – the best way to predict the future is to build it, and the future is already here… it is just not evenly distributed. The next quote is an important one for discipline specialists at universities to keep in mind – real-world problems may not respect discipline boundaries (so be on guard for myopic solutions that appear too good to be true, they often are!)… Because if we are not careful, today’s problems may come from yesterday’s solutions… And since we cannot anticipate all risks or quickly resolve them once we notice them, we should probably never forget what HG Wells said - that history is a race between education and catastrophe… In a world of accelerating change, this last statement also serves as a reminder that the pace of real innovation in education is a good target for study in terms of smarter systems and modern service…
  • IBM 2009 Annual Report – survey of smarter planet projects around the world…. But how do we involve universities more? How do we weave a “total solution” that includes universities in smarter city projects? What is the role of the university in creating a smarter city? In the continuous improvement of quality of life in cities? And aren’t universities really mini-cities within cities? … and on this Map of the World, in the 2009 IBM Annual report one can see a sampling of IBM Smarter Planet engagements around the world… working to improve the complete spectrum of system of systems… often with a focus on one system in one city… such as smarter energy in venezula or smarter medical research for healthcare in the US… some of these engagements include a partnership between the cities and universities – but much more opportunity exists… to help focus cities and universities, among others, on these opportunities… IBM and other organizations have begun to identify grand challenge problems…. For example, if you look at the IBM Smarter Planet website….
  • http://www.ibm.com/think http://www.ibm.com/smarterplanet … that IBM Smarter Planet Website shows ICONS for a great variety of systems that can be organized into the 13 core systems needed for a high quality of life…. For example, system 5 is information & communication technology, and the IBM icons for Telecom, Cloud Computing, and Intelligence… and for system 11 cities, the IBM icones for Cities, Public Safety, and Infrastructure are related. Also, the US National Academy of Engineering has created their list of grand challenge engineering problems….
  • http://en.wikipedia.org/wiki/Quality-of-life_index http://www.economist.com/media/pdf/QUALITY_OF_LIFE.pdf For example, The Economist’s Intelligence Unit has established a quality of life index – and in 2005 published a ranking of nations by quality of life – Norway, Ireland, and Switzerland scored very high, and some nations in Africa and Asia scored substantially lower… The point is not that the Economists factors which define their quality of life index are the ideal set, my point is simply that to all nation’s their grand challenge problem is in part improving the quality of life for their citizens… and since more and more of their citizens live in cities, an important grand challenge problem faced by nations is improving quality of life for citizens in their cities – which means investing in “smarter systems and modern service” these investment are intended to improve quality of service and quality of jobs, but also create a context in which returns to investment for foreign investors improves, security improves, and sustainability and reducing waste is made a priority… Of course cities can be viewed as a system of systems… ================================ Smarter Definitions of Quality of Life are needed…. If we can build a more universally accepted definition of quality of life – much progress could be made. Recall, the best way to predict the future is to build it. (Kay)
  • http://www.terrafly.com An example of holistic modeling and analytics is the Florida International University’s Terrafly project – which combines cloud computing with geospatial data to perform a great variety of geospatial analytics for national, state, and city regions….
  • Encouraging entrepreneurship and job creating in these areas aligns well with a number of national, state, and city initiatives – as they create action plans to improve urban sustainability thru innovations and public-private partnerships… ===================== As every human being, company, organization, city, nation, natural system, and man-made system is becoming interconnected, instrumented, and literally made more intelligent. In this new world, we believe there are 4 questions to be considered: How can we take advantage of the wealth of information available in real time from a multitude of sources to make more intelligent choices? – New Intelligence How can we work smarter supported by flexible and dynamic processes modeled for the new way people buy, live & work? – Smart Work How do we create an infrastructure that drives down cost, is intelligent and secure, and is just as dynamic as today’s business climate ? – Dynamic Infrastructure How do we drive greater efficiencies, compete more effectively, and respond more quickly by taking action now on energy, the environment, and sustainability? -- Green & Beyond
  • At IBM, many of our employees work as part of project teams on innovation that matters to customers. The project teams include industry/system consultants, solution architects, project managers, sales teams, and many many specialists. Specialist (45% of IBM employees) can be technology specialists, industry specialists, academic discipline specialists, technicians, call center agents, software application specialists, data analytics experts, and more – what ever it takes to transform and innovate systems in business, government, education, healthcare, etc. About 60%, well more than half of IBM’s revenue comes from global business and technology service groups or GBS and GTS… this increase in business for IBM global service (IGS) groups is part of a bigger trend… ================== Consultant: Consultants have deep knowledge of customers. They help IBM customers realize business and societal benefits by helping them make faster, smarter decisions; reduce risks; leverage core competencies and increase return on investment (ROI). Consultants serve as effective business advisors; conduct research, data collection and analysis; and prepare, present and deliver recommendations and solutions to clients. Sales: Sales professionals are responsible for the sale and support of IBM solutions, services, products and offerings, including those from IBM Business Partners. These professionals are responsible for the overall business relationship with IBM's clients and sometimes specialize by industry, customer set, channel, brand, solution or offering. Architect: Defines, or architects, solutions to client business problems by applying reason through information technology. Much of the IT Architect's work is focused on the front end of the solution life cycle: listening to clients, understanding their business requirements and forming the structures of an information technology solution — an architecture. Project Manager: Leads and is accountable for the success of the project. Project managers are responsible for a variety of activities, including initializing and planning projects, developing project cost structure, tracking and reporting project deliverables, managing risk, managing contracts and applying project management processes and tools. Specialist: Specialists have deep knowledge of applications, industries, and types of models/data. Specialists develops proofs of concepts and complete systems., They design, develop, build, test and implement systems. Specialists are hands-on professionals who have in-depth understanding of products, offerings and services within their specialty. Members of this profession perform services for a fee, provide technical support for product sales or support IBM's internal infrastructure.
  • Increasingly the economies of nations are shifting to service work, as technological advances improve the productivity of agricultural and manufacturing systems, the growth in jobs is being driven by business, professional, healthcare, government, education, and information service work. ======================================== Service-1 = human activity that does not produce tangible (physical) outputs (service-1 is a traditional economists way of looking at the world) Labor becomes Increasingly “knowledge work” International Labor Organization report: 39% agriculture, 20% manufacturing, and 41% service (first time in history that service labor dominated) Source: Based on US Bureau of Labor Statistics data http://www.bls.gov/emp/ep_table_201.htm Source of picture is from (378 google image locations; where does the original come from?): http://hydrodictyon.eeb.uconn.edu/courses/EEB210/evolution.jpg http://www.impactlab.com/wp-content/uploads/2009/01/evolution-white.jpg http://images.google.com/images?hl=en&q=human%20evolution&um=1&ie=UTF-8&tab=wi&imgtype=i_similar&sa=X&ei=A9HFS8yQM4qMNf__4eMN&ct=img-sim-l&oi=image_sil&resnum=13&tbnid=PjqMmGfRAeDVkM:
  • Furthermore, as the population of people and organizations increases they can specialize to increase the productive capacity of the whole system. Of course, specialization (also known as division of labor or outsourcing in businesses) increases transaction or coordination costs between entities, and so Information Technology (IT) can be used to reduce transactions costs. For example, the internet and mobile phones have helped reduce transaction costs, and thereby allowed more IT-enabled division-of-labor. IT can also be used to enable self-service and further lower transaction costs between entities. So today increasing populations lead to increase specialization (outsourcing) and increasing need to use IT to lower transaction or coordination costs, and all together this fuels more service growth in economies – as entities seek to increase mutually beneficial interaction or value-cocreation interactions. Information Technology (IT) is most effective at lowering transaction or coordination costs when interactions become routine and standardized – for example, getting money from a bank (ATM), getting tickets to see a movie or to use a transportation systems (ticket kiosks)… However, at the other end of the spectrum, when entities must interact in new ways to solve very complex grand challenge problems, a different approach to lowering transaction and coordination costs is required. Ultimately, it comes down to how well people can communicate with each other on project teams as they discuss technological, societal, business model, and other dimensions of problems… this creates the need for T-shaped people to help lower transaction or coordination costs in an increasingly specialized world… ======================= Service-2 = intentional human activity or interactions that result in mutually beneficial outcomes (or simply, value-cocreation) (service-2 is an emerging service science or service-dominant logic way of looking at the world) (note that in service-2, both farms and factories are types of service systems!) (service-2 asks about what kinds of specialized labor (knowledge) is required, how is technology used to coordinate activities, and what type of rules (a kind of social technology) are also being used to coordinate activities) Betancourt, R. and Gautschi, D. (2001) Product innovation in services: A framework for analysis. Book Series: Advances in Applied Microeconomics. Volume 10. Pp. 155-183. Ramchandran Jaikumar (2005), "From Filing and Fitting to Flexible Manufacturing: A Study in the Evolution of Process Control", Foundations and Trends in Technology, Information and Operations Management, Vol 1, No 1, pp 1-120
  • Thank-you for listening, and let’s work together to build a smarter planet, aligning a smarter education, to focus on creating smarter cities. Cities that improve quality of life for the 3 billion+ (and growing) people living in cities around the world.
  • Permission to re-distribute granted by Jim Spohrer – please request via email (spohrer@us.ibm.com) Reference content from this presentation as: Spohrer, JC (2010) Service Science: Progress and Directions. June 2010. This talk provides a concise introduction to the area of “Smarter Systems and Modern Service” with a focus on urban systems and service innovation, especially how cities and universities and cities can create a vital partnership and together (better than separately) thrive on accelerating change and sustainable innovation – driven primarily by IT advances and globalization, but also requiring skill changes, organizational changes, business model changes, policy changes, and investment model changes – to truly adapt and thrive in the age of smarter systems and modern service – or more simply “the decade of smart.” But I want to start by sharing some relevant quotes, which will surface in various forms during the course of this talk… The first you may have seen on TV or heard on the radio – it is from IBM – Instrumented, Interconnected, Intellient – Let’s build a smarter planet (more on this one shortly) Second, If we are going to build a smarter planet, let’s start by building smarter cities, (as we will see cities turn out to be ideal building blocks to get right for a number of reasons) And if we focus on cities, then the quote from the Foundation Metropolitan paints the right picture, cities learning from cities learning from cities… The next is probably the best known quote in the group “think global, act local” (we will revisit this important thought) Since all the major cities of the world have one or more universities, the next quote is of interest “the future is born in universities” And two more well known quotes about the future – the best way to predict the future is to build it, and the future is already here… it is just not evenly distributed. The next quote is an important one for discipline specialists at universities to keep in mind – real-world problems may not respect discipline boundaries (so be on guard for myopic solutions that appear too good to be true, they often are!)… Because if we are not careful, today’s problems may come from yesterday’s solutions… And since we cannot anticipate all risks or quickly resolve them once we notice them, we should probably never forget what HG Wells said - that history is a race between education and catastrophe… In a world of accelerating change, this last statement also serves as a reminder that the pace of real innovation in education is a good target for study in terms of smarter systems and modern service…
  • Service Science: Practice, Theory, Teaching, and Future Service science is the study of service systems, complex systems with people inside, which serve customers, and seek to cocreate value through mutually agreed to value-proposition-based interactions. Reliable systems are necessary for a high quality of life in our modern world.   More than ever before in human history, quality of life depends critically on frequent individual and organizational interactions with complex business and societal systems.  For example, transportation and supply chain systems, water and waste management systems, food and product systems, energy and electricity systems, information and communication technology systems, building and construction systems, retail and hospitality systems, education and healthcare systems, cities as systems of systems, as well as state and national government systems -- all of these systems deliver benefits to  individuals  and  organizations on a daily basis.   Also, all of these systems are becoming more instrumented (e.g., sensors), interconnected (e.g., wireless),  and intelligent (e.g., algorithms that support the collective wisdom of the crowds, such as recommendation engines).   There is more and more demand for Science Technology Engineering and Math (STEM) driven service innovations that can continuously improve the reliability of complex systems that serve customers in modern societies (UK Royal Society "Hidden Wealth: Science in Service Innovations" report, July 2009).   Service innovations that improve reliability should also improve (a) the  quality of service as judged by customers, (b) the productivity of provisioning service as judged by providers, and (c) the compliance as judged by regulatory or governing authorities as well as society as a whole.   Furthermore, service innovations are what keep business systems competitive in a dynamic world characterized by globalization,  driven in part by business model and technological change.   Therefore, service innovations need to be sustainable innovations, both from an environmental perspective as well as an investment roadmap perspective that leads to continuous opportunities for individuals, businesses, and institutions. This talk tells the story of the growth of service science in four parts. Part one explains the growth of service at IBM, and the practice of service science at IBM. Part two explains the theory based on the changing nature of work in the global economy, and the need for T-shaped professionals to help build a smarter planet. Part three introduces teaching Service Science Management Engineering and Design (SSMED). Part four describes the next steps, including a Moore’s Law like vision for the future and the need for a Computer-Aided Design (CAD) tool for T-shaped professionals to plan and implement more service innovation projects. Dr. James (“Jim”) C. Spohrer Director of IBM University Programs (IBM UP) since 2009, Jim works to align IBM and university ecosystems globally in five key areas: research (from nanotechnology to smarter planet), readiness (core and emerging skills needs), recruiting (interns and full-time hiring), revenue (public-private partnerships), and responsibility (volunteerism and citizenship). His current priorities include applying service science, cloud computing, and analytics to create smarter buildings, campuses, and cities. Jim was one of the first to highlight for global audiences that universities are increasingly one of the largest employers of knowledge workers in cities, and play a vital role in urban sustainability and service innovation. Cities and universities are tightly-coupled holistic service systems, or integrated system of systems, and must constantly find ways to renew transportation, water, food, energy, communications, building, retail, finance, health, education, and governance systems at multiple scales to remain viable in an increasingly dynamic and interconnected world. Jim helped establish and was founding Director of IBM's first Service Research group in 2003 at the Almaden Research Center with a focus on STEM (Science Technology Engineering and Math) for service sector innovations. He led this group to attain ten times return on investment with four IBM outstanding and eleven accomplishment awards over seven years. Projects included SSME (Service Science Management and Engineering), Component Business Model (CBM), Solution Design Manager (SDM)/Financial Solutions Manager(FSM), Intelligent Document Gateway (IDG), BIW (Business Insight Workbench), COBRA (Corporate Brand Analytics), SIMPLE (Intellectual Property Analytics), Impact of Future Technologies (IoFT), Web Fountain, Call Center Management Dashboard and Analytics, and New Service Design Rehearsal Studio. Working with service research and innovation pioneers from many academic disciplines, industries, and governments, Jim advocates for Service Science, Management, Engineering, and Design (SSMED) as an integrative extended-STEM framework for global competency development, economic growth, and advancement of science. Jim helped establish and was founding CTO of IBM’s first Venture Capital Relations group in 2000 in Silicon Valley. Jim lead Apple Computer’s Learning Technologies group in the mid 1990’s, where he was awarded DEST (Distinguished Engineer Scientist and Technologist). Jim received a Ph.D. in Computer Science/Artificial Intelligence from Yale University and a B.S. in Physics from MIT. Jim grew up in the great State of Maine, where his family’s love of the outdoors helped propel him to become an Eagle Scout, Jr. Assistant Scout Master, and Summer Camp Counselor. He now lives in Silicon Valley California with his wife and two sons. Dr. Spohrer has over eighty publications, advancing our understanding of the application of information technology and related innovations to both improve human capabilities and transform human-made systems (also known as human-made service systems and human-made value-cocreation mechanisms), including: Spohrer, J. & Maglio, P. P. (2010). Service Science: Toward a Smarter Planet. In W. Karwowski & G. Salvendy (Eds.), Introduction to service engineering. Wiley. Hoboken, NJ. Maglio, P.P., C. Kielzyczski, and J. Spohrer (2010) The Handbook of Service Science. Springer. New York, NY. Spohrer, Jim (2009) Service Science and Systems Science: Perspectives on Social Value. In The Proceedings of the 21st Century Center of Excellence Program, Creation of Agent-Based Social Systems Sciences: 5th Symposium, Tokyo Institute of Technology, February 27 and 28. URL: http:/www.absss.titech.ac.jp/ Spohrer, J. & Kwan, S. K. (2009). Service Science, Management, Engineering, and Design (SSMED): An Emerging Discipline - Outline & References. Int. J. of Information Systems in the Service Sector, 1(3). ( http:// www.cob.sjsu.edu/ssme/refmenu.asp ) IfM and IBM (2008) Succeeding through service innovation: A service perspective for education, research, business, and government. Cambridge, United Kingdom: University of Cambridge Institute for Manufacturing. ISBN: 978-1-902546-65-0. Editors Jim Spohrer, Guangjie Ren, Michael Gregory. National Research Council (2008) Science Professional: Master's Education for a Competitive World. J. Spohrer on Committee on Enhancing Master's Degree in Natural Sciences. (www.nap.edu). Spohrer, J. & Maglio, P. P. (2008). The Emergence of Service Science: Toward systematic service innovations to accelerate co-creation of value. Production and Operations Management. 17(3): 238-246. Maglio, P.P, & Spohrer, J. (2008). Fundamentals of Service Science. Journal of the Academy of Marketing Science (Special issue on Service-Dominant Logic), 36, 18-20.. Spohrer, J., L. Anderson, N. Pass, T. Ager, Pass, and D. Gruhl (2008) Service Science. Journal of Grid Computing. 6:313-324. Spohrer, J., Maglio, P. P., Bailey, J. & Gruhl, D. (2007). Steps Toward a Science of Service Systems. Computer, 40, 71-77. Chesbrough, H. and J. Spohrer (2006) A Research Manifesto for Services Science. Communications of the ACM. July. 49(7). Maglio, P. P., J. Kreulen, S. Srinivasan, J. Spohrer (2006) Service Systems, Service Scientists, SSME, and Innovation. Communications of the ACM. July. 49(7). Spohrer, J. and D. Riecken (2006) Services Science: Introduction, Special Issue Editors. Communications of the ACM. July. 49(7). Spohrer, J. C. & Engelbart, D. C. (2004). Converging Technologies for Enhancing Human Performance: Science and Business Perspectives. Annals of the New York Academy of Sciences, 1013, 50–82 Spohrer, J. and M. Stein (2000) User Experience in the Pervasive Computing Age. IEEE Multimedia. January-March (Vol. 7, No. 1) pp. 12-17. Spohrer, J.C. (1999) Information in Places. IBM Systems Journal. 38(4). Pp. 602-628. Spohrer, J.C. (1998) Apple's ATG Education Research: The Authoring Tools Thread, SIGCHI Bulletin 30(2). http://acm.org/sigchi/bulletin/1998.2/spohrer.html Spohrer, J.C. (1995) Apple Computer's Authoring Tools and Titles Research Program: Site Description. Artificial Intelligence Review, Kluwer Academic Press, Netherland. Cypher, A., Smith, D.C. Spohrer, J.C. (1994) KidSim: Programming Agents Without a Programming Language. Communications of the ACM,37 (7):55-67. ACM Press, New York, NY. Spohrer, J.C. (1992) MARCEL: Simulating Novice Programmers, Ablex Publishers. N.J. Bennett, R.E., Rock, D.A., Braun, H.I., Frye, D., Spohrer, J.C., Soloway, E. (1990, June) The relationship of expert-system scored constrained free-response items to multiple-choice and open-ended items. Applied Psychological Measurement, 14(2): 151-162. Soloway, E. and Spohrer, J.C. (1989) Studying the Novice Programmer. Editors. Lawrence Erlbaum Associates, Inc. Hillsdale, N.J. Spohrer, J.C., Soloway, E., and Pope, E. (1985) A goal/plan analysis of buggy Pascal programs. Human-Computer Interactions, 1(2):163-207. Lawrence Erlbaum Associates, Inc. Hillsdale, NJ. Spohrer, J.C., Brown, P., and Roth, R. (1982) Automatic labeling of speech. Proceeding of ICASSP 82 the IEEE International Conference on Acoustics, Speech, and Signal Processing. Editor G. Bienvienu. May 3-5. Paris, France. Pages 1641-1644. Spohrer, J.C., Brown, P., Hochschild, P., and Baker, J. (1980) Partial traceback in continuous speech recognition. Proceedings of the IEEE International Conference on Cybernetics and Society. Cambridge, MA
  • IBM Institute for Business Value study - Component business models: Making specialization real http://www-935.ibm.com/services/us/index.wss/ibvstudy/imc/a1017908?cntxt=a1005266 IBM Institute for Business Value study - Unlocking the value of account opening with component business modeling http://www-935.ibm.com/services/us/index.wss/ibvstudy/imc/a1002832?cntxt=a1000401 IBM Executive Brief - New competitive weapons in the insurance business: Insurance component business modeling http://www-935.ibm.com/services/us/index.wss/executivebrief/imc/a1011070%3fcntxt=a1005119 Eventually, our service scientist and service system engineers will have powerful tools we can only now just imagine. For example the Blue Gene super computer behind me, will be running simulations of IBM and our customers as interacting service system. A first step towards this long-term ambitious goal is our CBM tool work. For every industry the businesses are viewed as hundreds of interacting business components with associated KPI (key performance indicators)… The CBM tool (based on Eclipse and developed here at Almaden based on the PWC original methodology that did not have the tool) is already being used by thousands of strategy and change consultants around the world. Each of the business components generates an enormous amount of data. The next tool addresses that…. Value: CBM tool, in the hands of IBM strategy & change consultants, helps customer plan and execute changes to their business. Notice that these changes happen at the business services level (business), work practices (people & organizations), and of course the technical architecture level (engineering). Service scientists deep in one of these three areas, and with broad understanding and communication skills across them all, will be more effective at finding the right solutions.
  • This is a variation of James March’s work. He is the father of organization theory, and worked with Herb Simon in the 1950’s… March, J.G.  (1991)  Exploration and exploitation in organizational learning.  Organizatinal Science. 2(1).71-87. Every entity -- individual, enterprise (business and non-profit), city/region and nation that can change – makes a resource allocation decision…. Run is least costly and least risky if the environment is not changing much (change is gaining experience – practice effects and learning curves, anomaly detections) Transform is costly and risky, but may have benefits once the change is complete (adopting a new best practice) Innovate may be costly and risky, but also may create the greatest value, if the practices can be monetized if others adopt them (e.g., patents, consulting practices, etc.) FYI.... short history of transistors, integrated circuits, and data centers From transistors... 1. The transistor is considered by many to be the greatest technology invention of the 20th Century 2. While the concept of the transistor has been around since the 1920's (Canadian Physicist Julius Edgar Lilienfeld's 1925 Patent - devices that use physical phenomenon of field electronic emissions)... 3. Commercially available individual transistors that could be wired into circuits, invented and commercialized in 1947 & 1948 (Bell Labs Shockley Point Contact/Junction Transistor Theory 1947, Raytheon CK703 first commercially available 1948) To Integrated circuits... 4. However, it was not until the late 1950's and early 1960's that manufacturing process advances and commercial applications began using many of them in integrated circuits (TI, Bell Labs, etc.) - Sept 1958 the first integrated circuit (Jack Kilby TI) To Moore's law.... 5. By 1965 Gordon Moore's (Intel) paper stated the number of transistors on a chip would double about every two years (and exponential increase that has over 40 years of confirmation)... 6. The number of transistors manufactured each year (in 2009) is estimated at 10**18 - 3.9 x 10**6 transistors produced in 1957 (tenth anniversary of first transistor) - abut 10**18 transistors manufactured in 2009 (62th anniversary of first transistor) To data centers and "electricity consumption" .... 7. By 2005, data centers and server farms consume 0.5% of total worldwide electricity production (1% if cooling is included) - 2005 consumption equivalent of seventeen 1000 MW powerplants - electric consumption for data centers doubled from 2000 to 2005 Sources: http://semiconductormuseum.com/HistoricTransistorTimeline_Index.htm http://www.mentor.com/company/industry_keynotes/upload/rhines-globalpress-low-power.pdf http://www.iop.org/EJ/article/1748-9326/3/3/034008/erl8_3_034008.pdf?request-id=7cf4b6e5-498f-4ed4-bfc9-76eda96773ce
  • Value-Cocreation is about win-win outcomes when entities interact (people, businesses, governments) More accurately win-win should be called benefit-benefit interactions Value-cocreation interactions can include many types of cooperation, competition (e.g., playing a game of chess), and coordinated activities. Ecology = diverse types of service systems (electric grid, water system, transportation system, healthcare, education, etc.) Entities = hospitals, schools, businesses, governments Value Proposition Based Interactions = from informal promises to formal contracts and treaties Governance Mechanism Based Interactions = means of resolving disputes, when value is not co-created according to plan Four types of Resources = people, technology, information, and organizations Four types of Access Rights = owned outright, leased/contracted, shared access, and privileged access Four main types of Stakeholder = customer, provider, authority, competitor, and others… Four main types of Measures = quality, productivity, compliance, sustainable innovation, and others… Outcome = win-win, lose-lose, win-lose, lose-win Again, more accurately benefit-benefit for win-win, since competitions in which one person loses (e.g., chess) can still co-create value For example, the losing player may have learned new techniques from the master, and the master may have increased his reputation…
  • UK Royal Society: http://royalsociety.org/Hidden-wealth-The-contribution-of-science-to-service-sector-innovation/ Germany MARS: http://www.slideshare.net/whatidiscover/mars-1834481 ASU CSL: http://wpcarey.asu.edu/csl/upload/CSL-Business-Report.pdf
  • http://www.ibm.com/developerworks/spaces/ssme
  • We even had a name for the pattern – T-shaped people….
  • How can value be created in service interactions between entities? From the inside-out (provider-side), and from the outside in (customer side)… Given service innovation is different, with product and process innovation as sub-components, what kinds of people are needed to deliver and innovate service offerings? We asked ourselves this question back in 2004… and decided to take a look at IBMers educational degrees in different parts of our business… Larry Keeley, the President of Chicago-based Doblin, Inc., has constructed a very useful framework which he calls “The Ten Types of Innovation”. The Ten Types of Innovation include two “inside-out” categories – Process and Offering – each with sub-elements. There are also two “outside-in” offerings: Delivery and Finance. The inside-out perspective is similar to the traditional understanding of value chains. It asks, “What assets and/or core competencies does our firm have and what products or services can we produce with them?” Outside-in thinking inverts this traditional perspective, asking instead, “What do our customers want, and how can our firm construct new business models or a new ecosystem of partnerships or external relationships to deliver it to them?”

Service science progress and directions 20100620 Service science progress and directions 20100620 Presentation Transcript

    • Service Science:
    • Progress and Directions
    Dr. James (“Jim”) C. Spohrer Director, IBM University Programs (IBM UP) WW spohrer@us.ibm.com Porto, Portugal For: AMA ServSIG June 18, 2010
  • Outline
    • Overview of IBM University Programs (IBM UP) WW
      • Investing in people and planet to improve talent and infrastructure
      • Five R’s – Research, Readiness, Recruiting, Revenue, Responsibilities
    • Quality of Life: Our growing dependence on networks of interconnected service systems
      • Local optimization does not equal global optimization
      • Local problems can cascade into global significance
    • Ecology: The study of the abundance and distribution of entities in an environment, and their interactions with each other and their environment over successive generations
      • Natural World
      • Human-Made World
    • Holistic Service Systems: Cities and universities
      • Fundamental building blocks (resource integrators) to get right
      • Beyond customer-provider dyad, toward networks of stakeholders
    • Profitable growth by investing in people and planet.
    • Projects that improve global talent and infrastructure.
    • Working with universities to build smarter cities and improve quality of life.
    IBM University Programs (IBM UP) WW Research Recruiting Skills People Talent Government Industry Education Planet Infrastructure
    • Partnership Executive Program (PEP) JoAnn Winson, GUP
    • Client Executives & Senior Location Execs S&D
    • Public Private Partnerships Kevin Reardon, Research
    • Industry-Academic IP Collaboration Dawn Tew, GUP
    Revenue & Responsibility Value creation, sales, and revenue generation
    • PhD Fellowship Program Jeff Brody, GUP
    • Global Recruitment Campaign (led by HR) HR
    • Global University Sourcing (led by HR) HR
    • Extreme Blue Internship Program (led by HR) HR
    Recruiting Acquiring top talent
    • Academic Initiative Program (led by SWG) Kevin Faughnan, SWG
    • SSME/Smarter Planet Skills for 21 st Century Dianne Fodell & Wendy Murphy, GUP
    • LA Grid Initiative (Hispanic Focus) Juan Caraballo, GUP
    • Student Contests / Competitions (e.g., ACM)
    • Innovation Centers and Developer Relations Mark Hanny, SWG
    • Volunteerism/Corp Citizenship (with CC&CA) Shannon Thrasher, GUP
    Readiness Building the skills pipeline
    • Shared University Research Awards (SUR) Lilian Wu, GUP
    • Faculty Awards Jeff Brody, GUP
    • Open Collaborative Research Awards (OCR) Dawn Tew, GUP
    • Centers for Advanced Study (CAS) Andy Rindos, SWG
    • World Community Grid (with CC&CA) Robin Wilner, CCCA
    Research Collaboration in areas of mutual interest & value Programs & Initiatives Five R’s
  • IBM University Programs (IBM UP): 2010 Focus “5 R’s”
    • 1. Research
      • Awards that connect university and IBM researchers/professionals to work on grand challenges
      • https://www.ibm.com/developerworks/university/research/index.html
    • 2. Readiness
      • Access to IBM tools, methods, and course materials to develop skills
      • https://www.ibm.com/developerworks/university/academicinitiative/
    • 3. Recruiting
      • Jobs on global teams working to build a smarter planet - nation by nation, system by system
      • http://www.ibm.com/jobs
    • 4. Revenue
      • Public-private partnerships that build great universities, great cities, and improve quality of life
      • http://www.ibm.com/services/us/gbs/bus/html/bcs_education.html
    • 5. Responsibility
      • IBM employees share their expertise, time, and resources with universities in community service
      • http://www.ibm.com/ibm/ibmgives/
  • IBM University Programs (IBM UP): 2010 Focus “6 Priorities”
    • 1. Smarter Cities & Service Innovation
      • A. Holistic Modeling & Analytics, B. STEM Education Pipeline, C. Jobs & Entrepreneurship
      • Establish Urban Sustainability and Service Innovation Centers (start with http://cityforward.org)
    • 2. Cloud Computing & Analytics
      • IBM Cloud Academy, IBM Academic Cloud, Massive Analytics
    • 3. Ecosystem Alignment
      • Internal and external coordination and collaborations (win-win relationships)
    • 4. IBM on Campus
      • IBM Centers for Advanced Study, IBM Innovation Centers, IBM Research Collaboratories
    • 5. Growth Markets
      • Enablement, Twin Cities, Sister Cities
    • 6. Awards Programs
      • Shared University Research, Open Collaborative Research, Faculty Awards, PhD Fellowships
  • Priority 1: Urban Sustainability & Service Innovation Centers
    • A. Research: Modeling & Analytics of Holistic Service Systems
      • Modeling and simulating cities will push state-of-the-art capabilities for planning interventions in complex system of systems (holistic service systems)
      • Includes maturity models of cities, their analytics capabilities, and city-university interactions
      • Provides an interdisciplinary integration point for many other university research centers that study one specialized type of system
      • Real-world data and advanced analytic tools are increasingly available
    • B. Education: STEM (Science Tech Engineering Math) Pipeline
      • City simulation and intervention planning tools can engage high school students and build STEM skills
      • Role-playing games can prepare students for real-world projects
    • C. Entrepreneurship: Job Creation
      • City modeling and intervention planning tools can engage university students and build entrepreneurial skills
      • Grand challenge competitions can lead to new enterprises
    Note: Universities are mini-cities within cities (building blocks to get right).
  • Technology immersion of today’s students Innovations in the consumer marketplace are driving rapid adoption of new technologies for communication, entertainment and learning Over 4 billion individuals now have access to mobile technologies worldwide – representing over 60% of the population Social networking sites, virtual worlds, and mass collaboration technologies allow crowd sourcing to gain insights
  • Vision for the Educational Continuum The Educational Continuum Any Device Learning TECHNOLOGY IMMERSION PERSONAL LEARNING PATHS Student-Centered Processes KNOWLEDGE SKILLS Learning Communities GLOBAL INTEGRATION Services Specialization ECONOMIC ALIGNMENT Systemic View of Education
    • Intelligent
    • Aligned Data
    • Outcomes Insight
    • Instrumented
    • Student-centric
    • Integrated Assessment
    • Interconnected
    • Shared Services
    • Interoperable Processes
    Continuing Education Higher Education Secondary School Primary School Workforce Skills Individual Learning Continuum Education System Continuum Economic Sustainability
  • Learning is changing…. Formal is a small fraction Informal is dominant Signposts show wall breaking down
  • Changing Nature of STEM Education Teach as a single integrated transdiscipline (2D = 2-Design improved SP service systems ) Teach as four disciplines Study confirms effectiveness of challenge-based learning designing and implementing improvements to real-world systems (http:// www.nmc.org/pdf/Challenge-Based-Learning.pdf ) “… by the end of their respective projects 80% of participating students reported that they had made a difference in their schools or communities by addressing their challenge.” Management Mathematics Engineering Technology (physical) Natural Sciences Environment, Economics & Law Technology (social) Social Sciences STEM 2D Mathematics Engineering Technology Science STEM
  • SSME Design Lab Virtual Summits
    • Annual Global Challenges
      • Example Transportation
      • Congestion Challenge
      • http://www.itsa.org/challenge/
    • Best Ideas Could Create New Businesses
    • Potential Telepresence Play-offs with VCs for Advice
    Two Half-day SSME Design Lab Network Virtual Summits: West – August 11, 2009 – 16 Academic Leaders from 8 Universities in 6 locations East – August 14, 2009 – 15 Academic Leaders from 7 Universities in 7 locations Productivity Sustainable Innovation Regulatory Compliance N a t i o n s I n d u s t r i e s Quality
  • Sam Palmisano, CEO IBM
    • “We need highly skilled people. So we say we need to help in the school systems. We’ll go in and create a services-as-a-science curriculum in Vietnam, or in Bulgaria, or in Indonesia.”
      • Wall Street Journal, February 14, 2008
    • At IBM, we know something about systems. As must be obvious by now, I don't mean simply "computer systems." I mean the economic, logistical and societal systems by which our world operates.
      • National Governors Association, July 9, 2010
  • Quality of life: We depend on service systems…
    • A. Systems that focus on flow of things that humans need (~15%)
      • 1. Transportation & supply chain
      • 2. Water & waste recycling/Climate & Environment
      • 3. Food & products manufacturing
      • 4. Energy & electricity grid/Clean Tech
      • 5. Information and Communication Technologies (ICT access)
    • B. Systems that focus on human activity and development (~70%)
      • 6. Buildings & construction (smart spaces) (5%)
      • 7. Retail & hospitality/Media & entertainment (tourism) (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 & development opportunities/investments (sales tax)
      • 13. Nations /NGOs & rights/rules/incentives/policies/laws (income tax)
    (Quality of Service & Jobs & Investment Opportunities) Measure -> Quality, Productivity, Compliance, “Smarter” “ Smarter” = Sustainable Innovation (continuously reduce waste, expand capabilities) 10 19? 7 1 6 1 17 0 24 20 10 2 3 0 2
  • Our planet is a complex, dynamic, highly interconnected $54 Trillion system-of-systems (OECD-based analysis) Communication $ 3.96 Tn Transportation $ 6.95 Tn Leisure / Recreation / Clothing $ 7.80 Tn Healthcare $ 4.27 Tn Food $ 4.89 Tn Infrastructure $ 12.54 Tn Govt. & Safety $ 5.21 Tn Finance $ 4.58 Tn Electricity $ 2.94 Tn Education $ 1.36 Tn Water $ 0.13 Tn Global system-of-systems $54 Trillion (100% of WW 2008 GDP) Same Industry Business Support IT Systems Energy Resources Machinery Materials Trade Legend for system inputs Note: 1. Size of bubbles represents systems’ economic values 2. Arrows represent the strength of systems’ interaction Source: IBV analysis based on OECD This chart shows ‘systems‘ (not ‘industries‘)  Our planet is a complex system-of-systems 1 Tn
  • Economists estimate, that all systems carry inefficiencies of up to $15 Tn, of which $4 Tn could be eliminated How to read the chart: For example, the Healthcare system‘s value is $4,270B. It carries an estimated inefficiency of 42%. From that level of 42% inefficiency, economists estimate that ~34% can be eliminated (= 34% x 42%).  We now have the capabilities to manage a system-of-systems planet Source: IBM economists survey 2009; n= 480 Global economic value of $4 Trillion 7% of WW 2008 GDP Improvement potential $15 Trillion 28% of WW 2008 GDP Inefficiencies $54 Trillion 100% of WW 2008 GDP System-of-systems System inefficiency as % of total economic value Improvement potential as % of system inefficiency Education 1,360 Building & Transport Infrastructure 12,540 Healthcare 4,270 Government & Safety 5,210 Electricity 2,940 Financial 4,580 Food & Water 4,890 Transportation (Goods & Passenger) 6,950 Leisure / Recreation / Clothing 7,800 Communication 3,960 Analysis of inefficiencies in the planet‘s system-of-systems Note: Size of the bubble indicate absolute value of the system in USD Billions 42% 34% This chart shows ‘systems‘ (not ‘industries‘)
  • Service Science: Transdisciplinary Framework to Study Service Systems Systems that focus on flows of things Systems that govern Systems that support people’s activities transportation & supply chain water & waste food & products energy & electricity building & construction healthcare & family retail & hospitality banking & finance ICT & cloud education &work city secure state scale nation laws social sciences behavioral sciences management sciences political sciences learning sciences cognitive sciences system sciences information sciences organization sciences decision sciences run professions transform professions innovate professions e.g., econ & law e.g., marketing e.g., operations e.g., public policy e.g., game theory and strategy e.g., psychology e.g., industrial eng. e.g., computer sci e.g., knowledge mgmt e.g., statistics e.g., knowledge worker e.g., consultant e.g., entrepreneur stakeholders Customer Provider Authority Competitors resources People Technology Information Organizations change History (Data Analytics) Future (Roadmap) value Run Transform (Copy) Innovate (Invent) Stackholders (As-Is) Resources (As-Is) Change (Might-Become) Value (To-Be)
  • NAE’s Engineering Grand Challenges
    • A. Systems that focus on flow of things humans need
      • 1. Transportation & Supply Chain
      • Restore and enhance urban infrastructure
      • 2. Water & Waste/Climate & Green tech
      • Provide access to clear water
      • 3. Food & Products
      • Manager nitrogen cycle
      • 4. Energy & Electricity
      • Make solar energy economical
      • Provide energy from fusion
      • Develop carbon sequestration methods
      • 5. Information & Communication Technology
      • Enhance virtual reality
      • Secure cyberspace
      • Reverse engineer the brain
    • B. Systems that focus on human activity & development
      • 6. Buildings & Construction (smart spaces)
      • Restore and enhance urban infrastructure
      • 7. Retail & Hospitality/Media & Entertainment (tourism)
      • Enhance virtual reality
      • 8. Banking & Finance/Business & Consulting
      • 9. Healthcare & Family Life
      • Advance health informatics
      • Engineer better medicines
      • Reverse engineer the brain
      • 10. Education & Work Life/Jobs & Entrepreneurship
      • Advance personalized learning
      • Engineer the tools of scientific discovery
    • C. Systems that focus on human governance
      • 11. City & Security
      • Restore and improve urban infrastructure
      • Secure cyberspace
      • Prevent nuclear terror
      • 12. State /Region & Development
      • 13. Nation & Rights
  • Why 13 types of service systems? K-12 STEM and the human-made world “ Imagine a better service system, and use STEM language to explain why it is better” STEM = Science, Technology, Engineering, and Mathematics See NAE K-12 engineering report: http://www.nap.edu/catalog.php?record_id=12635 See Challenge-Based Learning: http://www.nmc.org/news/nmc/nmc-study-confirms-effectiveness-challenge-based-learning
    • Challenge-based Project to Design Improved Service Systems
      • K - Transportation & Supply Chain
      • 1 - Water & Waste Recycling
      • 2 - Food & Products (Nano)
      • 3 - Energy & Electric Grid
      • 4 – Information /ICT & Cloud (Info)
      • 5 - Buildings & Construction
      • 6 – Retail & Hospitality/Media & Entertainment (tourism)
      • 7 – Banking & Finance/Business & Consulting
      • 8 – Healthcare & Family Life (Bio)
      • 9 - Education & Work Life/Jobs & Entrepreneurship (Cogno)
      • 10 – City (Government)
      • 11 – State /Region (Government)
      • 12 – Nation (Government)
      • Higher Ed – T-shaped teamwork, deep & broad education
      • Professional Life – T-shaped teamwork, series of projects
    Systems that focus on Governing Systems that focus on Human Activities and Development Systems that focus on Flow of things
  • Transportation Split: How did you get to school today?
  • T-Shaped Professionals: Ready for T-eamwork! SSMED = Service Science, Management, Engineering & Design Many disciplines (understanding & communications) Many systems (understanding & communications) Deep in one discipline (analytic thinking & problem solving) Deep in one system (analytic thinking & problem solving) Many team-oriented service projects completed (resume: outcomes, accomplishments & awards)
  • Time ECOLOGY 14B Big Bang (Natural World) 10K Cities (Human-Made World) Sun writing (symbols and scribes) Earth written laws bacteria (uni-cell life) sponges (multi-cell life) money (coins) universities clams (neurons) tribolites (brains) printing press (books) steam engine 200M bees (social division-of-labor) 60 transistor
  • Natural: Physics (Atoms) Natural: Chemistry (Molecules) Biology (Uni-Cell Organisms) Biology (Multi-Cell Organisms) Natural: Biology (Neural & Social Organisms) Human Made: Anthropology (Informal Service System Entities) Human Made: Economics & Law (Formal Service System Entities) Human Made: Network Theory (Globally Integrated Service System Entities) Systems Science Service Science Explain Evolution of Hierarchical Complexity Gray Area Social Sciences Sciences of the Natural and Human Made Worlds Natural Sciences Microscopic Structures Living Organisms Service System Entity Physics Atoms Chemistry Chemicals Biology Uni-cellular Biology Multi-cellular Biology Neural & Social Natural Anthropology Informal Economics & Law; Political Science Formal Network Theory Globally Integrated Human-made Science Domain
  • Systems & Hierarchy of Complexity Microscopic Structures Living Organisms Service System Entity Physics Atoms Chemistry Chemicals Biology Uni-cellular Biology Multi-cellular Biology Neural & Social Natural Anthropology Informal Economics & Law; Political Science Formal Network Theory Globally Integrated Human-made Science Domain
  • Understanding the Human-Made World See Paul Romer’s Charter Cities Video: http://www.ted.com/talks/paul_romer.html Also see: Symbolic Species, Deacon Company of Strangers, Seabright Sciences of the Artificial, Simon
  • Population growth per hour in major cities
  • Urban-Age.Net Currently, the world’s top 30 cities generate 80% of the world’s wealth. The Urban Age For the first time in history more than 50% the earth’s population live in cities - by 2050 it will be 75% The Endless City
  • Edu-Impact.Com “ 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.”
  • Example: San Jose, California (USA)
  • Nation’s % of Global GDP and Nation’s % of Top 500 Universities Correlation becomes stronger when we consider (in the graph) USA and its data: % of Top 500: 30,3 % % global GDP: 23,3 % Source: http://www.arwu.org/ARWUAnalysis2009.jsp
    • A. Flow of things
      • 1. Transportation : Traffic congestion; accidents and injury
      • 2. Water : Access to clean water; waste disposal costs
      • 3. Food : Safety of food supply; toxins in toys, products, etc.
      • 4. Energy : Energy shortage, pollution
      • 5. Information : Equitable access to info and comm resources
    • B. Human activity & development
      • 6. Buildings : Inefficient buildings, environmental stress (noise, etc.)
      • 7. Retail : Access to recreational resources
      • 8. Banking : Boom and bust business cycles, investment bubbles
      • 9. Healthcare : Pandemic threats; cost of healthcare
      • 10. Education : High school drop out rate; cost of education
    • C. Governing
      • 11. Cities : Security and tax burden
      • 12. States : Infrastructure maintenance and tax burden
      • 13. Nations : Justice system overburdened and tax burden
    Cities as Holistic Service Systems (Mini-Nations) Example: Singapore Population Challenges Careers Opportunities
  • Universities as Holistic Service Systems (Mini-Cities)
    • A. Flow of things
      • 1. Transportation : Traffic congestion; parking shortages.
      • 2. Water : Access costs; reduce waste
      • 3. Food : Safety; reduce waste.
      • 4. Energy : Access costs; reduce waste
      • 5. Information : Cost of keeping up best practices.
    • B. Human activity & development
      • 6. Buildings : Housing shortages; Inefficient buildings
      • 7. Retail : Access and boundaries. Marketing.
      • 8. Banking : Endowment growth; Cost controls
      • 9. Healthcare : Pandemic threat. Operations.
      • 10. Education : Cost of keeping up best practices..
    • C. Governing
      • 11. Cities : Town & gown relationship.
      • 12. States : Development partnerships..
      • 13. Nations : Compliance and alignment.
  • A Vital Partnership: Cities and universities
    • Citizens are demanding more urban services
      • Larson & Odonoi (MIT) Urban Operations Research.
      • Citizens are demanding more urban services, by type, quantity, and quality. Yet the ability of most cities in the United States and elsewhere to pay for additional services has been severely strained … For our purposes, a decision is an irrevocable allocation of resources. Thus, this book will deal with the allocation or deployment of the resources of urban service systems, including personnel, equipment, and various service-improving technologies. From this viewpoint, urban operations research can be thought of as a decision-aiding technology, one to assist urban managers in improving the deployment of their resources. Most deployments occur spatially throughout the city, so much of our work will have a strong spatial component.
    • Higher education can respond
      • Urban Serving University Coalition (USU) A Vital Partnership: Great Cities, Great Universities
      • Higher education can respond to the challenges facing our cities and metropolitan regions, becoming the R&D partners of cities that evaluate and deploy potential innovations. Never before has this agenda had greater urgency for our nation. For example, demographic changes within the United States have been dramatic, with nearly eight in ten Americans now living in cities . According to the Brookings Institution, while the top 100 metropolitan areas make up only 12% of the land mass, they produce fully 75% of the gross domestic product, generate 78% of competitive patents, and account for 68% of the nation’s jobs. Increasingly, the prosperity of our cities and metro areas is inextricably linked to our national prosperity.
    Demographic projection: By 2050 over 75% of the world’s population will live in cities Stimulus Response
  • University Trend: Growth of Disciplines & Centers
    • University sub-systems
    • Disciplines in Schools (circles)
    • Innovation Centers (squares)
      • E.g., CMU Website (2009)
        • “ Research Centers: where it all happens – to solve real-world problems”
    • Disciplines in Schools
      • Award degrees
      • Single-discipline focus
      • Research discipline problems
    • Innovation Centers (ICs)
      • Industry/government sponsors
      • Multi-disciplinary teams
      • Research real-world systems
    D D D D D D Engineering School Social Sciences, Humanities Professional Studies Business School water & waste transportation health energy/grid e-government Science & Mathematics I-School Design food & supply chain
  • City Trend: Sister Cities “Think Global”
    • World as System of Systems
    • World (light blue - largest)
    • Nations (green - large)
    • Regions (dark blue - medium)
    • Cities (yellow - small)
    • Universities (red - smallest)
    • Cities as System of Systems
    • Transportation & Supply Chain
    • Water & Waste Recycling
    • Food & Products ((Nano)
    • Energy & Electricity
    • Information /ICT & Cloud (Info)
    • Buildings & Construction
    • Retail & Hospitality/Media & Entertainment
    • Banking & Finance
    • Healthcare & Family (Bio)
    • Education & Professions (Cogno)
    • Government (City, State, Nation)
    • Nations: Innovation Opportunities
    • GDP/Capita (level and growth rate)
    • Energy/Capita (fossil and renewable)
    IBM UP WW: Tandem Awards: Increasing university linkages (knowledge exchange interactions) Developed Market Nations (> $20K GDP/Capita) Emerging Market Nations (< $20K GDP/Capita)
  • University & City Trend: Tight Local Coupling & Global Brand UNIVERSITIES: THE INNOVATION CENTERS OF GREAT CITIES CITIES: THE LIVING LABS FOR UNIVERSITIES IBM UP Connect Universities To Their Cities let’s work towards smarter cities let’s start with smarter education
  • IBM University Programs (IBM UP) WW
  • Priority 1: Urban Sustainability & Service Innovation Centers
    • A. Research: Holistic Modeling & Analytics of Service Systems
      • Modeling and simulating cities will push state-of-the-art capabilities for planning interventions in complex system of service systems
      • Includes maturity models of cities, their analytics capabilities, and city-university interactions
      • Provides an interdisciplinary integration point for many other university research centers that study one specialized type of system
      • Real-world data and advanced analytic tools are increasingly available
    • B. Education: STEM (Science Tech Engineering Math) Pipeline
      • City simulation and intervention planning tools can engage high school students and build STEM skills of the human-made world (service systems)
      • Role-playing games can prepare students for real-world projects
    • C. Entrepreneurship: Job Creation
      • City modeling and intervention planning tools can engage university
      • students and build entrepreneurial skills
      • Grand challenge competitions can lead to new enterprises
  • Luxury Hotels as Holistic Service Systems (Mini-Cities)
  • Smarter = Sustainable Innovation (reduce waste, expand capabilities) Computational System Building Smarter Technologies Requires investment roadmap Service Systems: Stakeholders & Resources 1. People 2. Technology 3. Shared Information 4. Organizations connected by win-win value propositions Building Smarter Universities & Cities Requires investment roadmap
  • However, Disciplines Still Debate Definition of Service Economics Design & Psychology Systems Engineering Operations Computer Science/ Artificial Intelligence Marketing
  • Many Definitions of Service
    • Economics
      • Service 1 = economic activities that are not agriculture or manufacturing
      • Service 3 = a transformation that one economic entity performs with the permission of a second entity, that transforms the second entity or a possession of the second entity
      • Service 4 = an exchange between economic entities that does not transfer ownership of a physical thing.
    • Service Science
      • Service 2 = human-made value-cocreation phenomena, specifically a mutually beneficial outcome proposed, agreed to, and realized by two or more service system entities interacting. Service system entities can be people, businesses, nations, and any other economic entities with legal rights, such as the ability to own property, enter into binding contracts, etc. Quantifiable measures associated with service system entity interactions over the life-time of the entity, include quality, productivity, compliance, and sustainable innovation measures. Service system entities configure four types of resources, accessible by four types of access rights, and reason about four types of stakeholders when designing value-cocreation interactions, and evaluating them via their processes of valuing.
      • Both collaboration and competition can both be/not be forms of value-cocreation, depending on context
    • Operations
      • Service 5 = a production process that requires inputs from a customer entity
    • Computer Science
      • Service 6 = a modular capability that can be computationally accessed and composed with others
    • Systems Engineering
      • Service 7 = a system (with inputs, outputs, capacity limits, and performance characteristics) which is interconnected with other systems that may seek to access its capabilities to create benefits, and in which local optimization of the system interactions may not lead to global performance improvements
    • Design and Psychology
      • Service 8 = an experience of a customer entity that results from that customer entity interacting with provider entities’ offerings
    • Marketing
      • Service 9 = the application of competence (e.g., resources, skills, capabilities) for the benefit of another entity
      • Service 10 = a customer-provider interaction that creates mutual benefits
    • Thank-You!
    Dr. James (“Jim”) C. Spohrer Director, IBM University Programs (IBM UP) WW spohrer@us.ibm.com Porto, Portugal For: AMA ServSIG June 18, 2010 “ 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/invent it.” – Moliere/Kay “ Real-world problems may not respect discipline boundaries.” – Popper “ Today’s problems may come from yesterday’s solutions.” – Senge “ History is a race between education and catastrophe.” – H.G. Wells “ The future is born in universities.” – Kurilov “ Think global, act local.” – Geddes
  • How do we involve universities? How do weave a “total solution” that includes universities?
  • IBM’s Smarter Planet Grand Challenge: Smarter Systems
    • A. Systems that focus on flow of things humans need
      • 1. Transportation & Supply Chain
      • Traffic, Rail
      • 2. Water & Waste/Climate & Green tech
      • Water
      • 3. Food & Products
      • Food, Products
      • 4. Energy & Electricity
      • Energy, Oil
      • 5. Information & Communication Technology
      • Intelligence, Telecom, Cloud Computing
    • B. Systems that focus on human activity & development
      • 6. Buildings & Construction (smart spaces)
      • Buildings, Infrastructure
      • 7. Retail & Hospitality/Media & Entertainment (tourism)
      • Retail
      • 8. Banking & Finance/Business & Consulting
      • Banking, Stimulus
      • 9. Healthcare & Family Life
      • Healthcare
      • 10. Education & Work Life/Jobs & Entrepreneurship
      • Education, Work
    • C. Systems that focus on human governance
      • 11. City & Security
      • Cites, Public Safety, Infrastructure
      • 12. State /Region & Development
      • 13. Nation & Rights
      • Government, Stimulus
  • Nations’ Grand Challenge: Quality of Life (how to define?) Smarter Systems = “We expect more” – Dawson
    • A. Systems that focus on flow of things humans need
      • 1. Transportation & Supply Chain
      • 2. Water & Waste/Climate & Green tech
      • Climate and geography
      • 3. Food & Products
      • 4. Energy & Electricity
      • 5. Information & Communication Technology
      • Material well being
    • B. Systems that focus on human activity & development
      • 6. Buildings & Construction (smart spaces)
      • Material well-being
      • 7. Retail & Hospitality/Media & Entertainment (tourism)
      • Material well-being
      • 8. Banking & Finance/Business & Consulting
      • Material well-being
      • 9. Healthcare & Family Life
      • Health & Family Life
      • 10. Education & Work Life/Jobs & Entrepreneurship
      • Job security
      • Gender equality
    • C. Systems that focus on human governance
      • 11. City & Security
      • Community Life
      • Political stability and security
      • 12. State/ Region & Development
      • Climate and geography
      • 13. Nation & Rights
      • Political freedom
      • Gender equality
      • Political stability and security
    Economist.com Example Only
  • A. Holistic Modeling & Analytics Example: FIU’s Terrafly
  • C. Entrepreneurship & Job Creation
    • Transportation
    • Water and waste
    • Energy and electricity
    • Buildings
    • Healthcare/Education
    • Cities/Government
    General Methods & Techniques Specific Technologies Specific Systems Cross Industry Competencies Industry Specific Competencies Jobs Systems Engineering/ Analytics/BAO/SSME Research to improve systems fuels
    • Model Systems
    • Connect/capture Data
    • Analyze, Improve
    • Optimize, Automate
    • Discipline Specialists
    Run Transform Innovate
    • Synapsense, SensorTronics
    • Infosphere Streams, ILOG, COGNOS, SPSS
    • WS, Tivoli, Rational, DB2, etc.
    • BAO, Green Sigma
    Specialists Consultant Project Manager Sales Architect Operations
  • IBM Jobs: Project teams focus on customer needs
    • 1. Consultant
    • (trusted advisor to customer)
    • a value proposition to address problems or opportunities and enhance value co-creation relationships
    • 2. Sales
    • a signed contract that defines work, outcomes, solution, rewards and risks for all parties
    4. Project Manager (often with co-PM from customer side) a detailed project plan that balances time, costs, skills availability, and other resources, as well as adaptive realization of plan
    • 3. Architect
    • (systems engineer, IT & enterprise architect)
    • An elegant solution design that satisfies functional and non-functional constraints across the system life-cycle
    • 5. Specialists
    • (systems engineer, Research, engineer,
    • Industry specialist, application, technician,
    • data, analyst, professional, agent)
    • a compelling working system (leading-edge prototype systems from Research)
    ~10% ~10% ~5% ~5% ~45% 6. Enterprise Operations Administrative Services, Other, Marketing & Communications Finance, Supply Chain, Manufacturing, Human Resources, Legal, General Executive Management ~25%
    • IBM Employees
      • ~10% Consultant
      • ~10% Sales
      • ~5% Architect
      • ~5% Project Manager
      • ~45% Specialists
      • ~25% Enterprise Operations
    Project Work: 90% B2B – Business to Business 10% B2G – Business to Government (i.e., “Smarter Planet” projects)
  • The Big Trend: “The future is service 1 ” Physical: mostly interact with things Social: mostly interact with others Service 2 growth as IT-enabled division of labor Service 1 growth as intangible outputs -1000K -10K -100 -1 +100 Hunter Gatherer (physical) Agriculture (physical) Manufacturing (physical) Service (social) Human Labor 100% Time (years)
  • The Big Trend: “The future is service 2 ”
    • More population (people & organizations) creates opportunity for specialization
      • Specialization (division of labor – Adam Smith) can improve productive capacity
    • More specialization (outsourcing) creates need for coordination mechanisms
      • Local interactions become distributed across space, time, and scale (transaction costs – Coase)
      • Local optimization may not lead to global performance improvements
    • More coordination (IT can lower costs) creates service growth (value-cocreation)
      • IT integrates across space, time, and scale improving global and local performance
      • Increase the ratio of productive interactions to unproductive interactions with others
    Service Growth (Value-Cocreation) increase mutually beneficial interactions decrease unproductive interactions T-shaped people to lower coordination costs Population (People & Organizations) entities interacting Specialization (Outsourcing) space, time, scale distribution Coordination (Information Technology) space, time, scale integration Service 2 growth as IT-enabled division of labor
  • Thank-you! And… “ 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 “ Cities learning from cities learning from cities.” – Fundacion Metropoli “ Think global, act local.” – Geddes “ The future is born in universities.” – Kurilov “ The best way to predict the future is to create/invent it.” – Moliere/Kay “ The future is already here. It is just not evenly distributed.” – Gibbons “ Real-world problems may not respect discipline boundaries.” – Popper “ Today’s problems may come from yesterday’s solutions.” – Senge “ History is a race between education and catastrophe.” – H.G. Wells let’s focus smarter education on… … sustainable innovations for smarter cities … helping to build a smarter planet instrumented+interconnected+intelligent (http://www.ibm.com/think)
    • Service Science: Progress and Directions
    Dr. James (“Jim”) C. Spohrer Director, IBM University Programs (IBM UP) WW spohrer@us.ibm.com Porto, Portugal For: AMA ServSIG June 18, 2010 “ 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/invent it.” – Moliere/Kay “ Real-world problems may not respect discipline boundaries.” – Popper “ Today’s problems may come from yesterday’s solutions.” – Senge “ History is a race between education and catastrophe.” – H.G. Wells “ The future is born in universities.” – Kurilov “ Think global, act local.” – Geddes
  • http://www.ibm.com/think Dr. James (“Jim”) C. Spohrer Director of IBM University Programs (IBM UP) since 2009, Jim founded IBM's first Service Research group in 2003 at the Almaden Research Center with a focus on STEM (Science Technology Engineering and Math) for Service Sector innovations. He led this group to attain ten times return on investment with four IBM outstanding and eleven accomplishment awards over seven years. Working with service research pioneers from many academic disciplines, Jim advocates for Service Science, Management, Engineering, and Design (SSMED) as an integrative extended-STEM framework for global competency development, economic growth, and advancement of science. In 2000, Jim became the founding CTO of IBM’s first Venture Capital Relations group in Silicon Valley. In the mid 1990’s, he lead Apple Computer’s Learning Technologies group, where he was awarded DEST (Distinguished Engineer Scientist and Technologist) Jim received a Ph.D. in Computer Science/Artificial Intelligence from Yale University and a B.S. in Physics from MIT. Sustainable Innovation: Aligning Urban and University Service Systems Gibbons said “The future is already here. It's just not very evenly distributed.&quot;. What if walking onto a university campus was like walking into the future. In a way it is, because the students at universities will someday fill roles in business and society – they are the future doers in all systems. Also, some of the important ideas from university research centers will someday become commonplace. More and more universities, especially urban serving research universities, are like living labs for the cities that host them. Universities are in fact small cities within larger cities. Many universities today have more students than the populations of some cities in past centuries, and the students have much better technologies for sharing and building knowledge. There is more and more demand for Science Technology Engineering and Math (STEM) driven service innovations that can continuously improve the reliability of complex systems that serve customers in modern societies (UK Royal Society &quot;Hidden Wealth: Science in Service Innovations&quot; report, July 2009).   Service innovations that improve reliability should also improve (a) the  quality of service as judged by customers, (b) the productivity of provisioning service as judged by providers, and (c) the compliance as judged by regulatory or governing authorities as well as society as a whole.   Furthermore, service innovations are what keep business systems competitive in a dynamic world characterized by globalization,  driven in part by business model and technological change.   Therefore, service innovations need to be sustainable innovations, both from an environmental perspective as well as an investment roadmap perspective that leads to continuous opportunities for individuals, businesses, and institutions. IBM University Programs (IBM UP) is working to align cities and universities on two important topics: Sustainability and Innovation. Service science is a global initiative to improve service system sustainable innovation tools and methods. Service science may someday lead to a Moore’s Law for service system improvement. This will require a Computer-Aided Design (CAD) tool that can be used by T-shaped professionals to plan and implement more service innovation projects. Improved service systems that continuously improve locally and globally can help achieve the vision of a Smarter Planet.
  • Most Wanted: A CAD for service systems (CAD = Computer Aided Design Tool) IEEE Computer, Jan 2007 CBM: Component Business Model WBM and RUP: Work Practices & Processes SOA: Technical Service-Oriented Architecture Key Performance Indicators (KPIs) IBM IBV: Component Business Models
  • How many entities to study? ~10B service systems - modular value creation systems
    • Nations (~100)
      • Regions (~1000)
        • Cities (~10,000)
          • Educational Institutions (~100,000)
          • Healthcare Institutions (~100,000)
          • Other Enterprises (~10,000,000)
            • Largest 2000
            • >50% GDP WW
          • Families (~1B)
          • Persons (~10B)
    • Balance/Improve
      • Quality of Life
        • GDP/Capita
          • Quality of Service
            • Customer Experience
          • Quality of Jobs
      • Sustainability
        • GDP/Energy-Unit
          • % Fossil
          • % Renewable
    Nation Region (e.g., State) City Educational Institution Healthcare Institution Other Enterprises (job roles) Family (customers ) Person (providers)
  • How entities (service systems) learn and change over time History and future of Run-Transform-Innovate investment choices
    • Diverse Types
      • Persons (Individuals)
        • Families
      • Regional Entities
        • Universities
        • Hospitals
        • Cities
        • States/Provinces
        • Nations
      • Other Enterprises
        • Businesses
        • Non-profits
    • Learning & Change
      • Run = use existing knowledge or standard practices (use)
      • Transform = adopt a new best practice (copy)
      • Innovate = create a new best practice (invent)
    March, J.G.  (1991)  Exploration and exploitation in organizational learning.  Organizational Science. 2(1).71-87. exploit explore Technology Technology Technology Technology Technology Technology Technology Technology Technology Technology Technology Technology Technology Technology Transform Innovate Invest in each type of change Ru n
  • How entities (service systems) interact Incentives & Rules Resources: People, Technology, Information, Organizations Stakeholders: Customers, Providers, Authorities, Competitors Measures: Quality, Productivity, Compliance, Sustainable Innovation Access Rights: Own, Lease, Shared, Privileged Ecology (Populations & Diversity) Entities (Service Systems) Interactions (Service Networks) Outcomes (Value Changes) Value Proposition Based Interactions (Incentives) Governance Mechanism Based Interactions (Rules) Access Rights (Relationships) Measures (Rankings of Entities) Resources (Roles in Processes) Stakeholders (Perspectives) win-win lose-lose win-lose lose-win Identity (Aspirations/Lifecycle) Reputation (Opportunities/Variety)
  • Reports: 3 Nations
    • UK Royal Society
    • Germany MARS
    • US ASU CSL
    • Fitzsimmons & Fitzsimmons
      • Graduate Students
      • Schools of Engineering
    • Teboul
      • Undergraduates
      • Schools of Business
      • Busy execs (4 hour read)
    • Ricketts
      • Practitioners
      • Manufacturers In Transition
    • And 200 other books…
      • Zeithaml, Bitner, Gremler; Gronross, Chase, Jacobs, Aquilano; Davis, Heineke; Heskett, Sasser, Schlesingher; Sampson; Lovelock, Wirtz, Chew; Alter; Baldwin, Clark; Beinhocker; Berry; Bryson, Daniels, Warf; Checkland, Holwell; Cooper,Edgett; Hopp, Spearman; Womack, Jones; Johnston; Heizer, Render; Milgrom, Roberts; Norman; Pine, Gilmore; Sterman; Weinberg; Woods, Degramo; Wooldridge; Wright; etc.
    Teaching…
    • Reaching the Goal: How Managers Improve a Services Business Using Goldratt’s Theory of Constraints
    • By John Ricketts, IBM
    • Service Management: Operations, Strategy, and Information Technology
    • By Fitzsimmons and Fitzsimmons, UTexas
    • Service Is Front Stage: Positioning services for value advantage
    • By James Teboul, INSEAD
    For details: http://www.cob.sjsu.edu/ssme/refmenu.asp
  • Teaching: IBM SSME Website: Creating T-shaped people http://www.ibm.com/developerworks/spaces/ssme
  • Changing Nature of Jobs: Deep & Broad Levy, F, & Murnane, R. J. (2004). The New Division of Labor: How Computers Are Creating the Next Job Market. Princeton University Press. Based on U.S. Department of Labor’ Dictionary of Occupational Titles (DOT) Expert Thinking (deep) Complex Communication (broad) Routine Manual Non-routine Manual Routine Cognitive Increasing usage of job descriptive terms
  • A Service System Innovation Framework “ The Ten Types of Innovation” by Larry Keeley, Doblin Inc. Innovate (inside and outside) systems that create value
  • Many definitions of service
    • Economics
      • Service 1 = economic activities that are not agriculture or manufacturing
      • Service 3 = a transformation that one economic entity performs with the permission of a second entity, that transforms the second entity or a possession of the second entity
      • Service 4 = an exchange between economic entities that does not transfer ownership of a physical thing.
    • Service Science
      • Service 2 = value-cocreation phenomena, specifically a mutually beneficial outcome proposed, agreed to, and realized by two or more service system entities interacting. Service system entities can be people, businesses, nations, and any other economic entities with legal rights, such as the ability to own property, enter into binding contracts, etc. Quantifiable measures associated with service system entity interactions over the life-time of the entity, include quality, productivity, compliance, and sustainable innovation measures. Service system entities configure four types of resources, accessible by four types of access rights, and reason about four types of stakeholders when designing value-cocreation interactions, and evaluating them via their processes of valuing.
      • Both collaboration and competition can both be/not be forms of value-cocreation, depending on context
    • Operations
      • Service 5 = a production process that requires inputs from a customer entity
    • Computer Science
      • Service 6 = a modular capability that can be computationally accessed and composed with others
    • Systems Engineering
      • Service 7 = a system (with inputs, outputs, capacity limits, and performance characteristics) which is interconnected with other systems that may seek to access its capabilities to create benefits, and in which local optimization of the system interactions may not lead to global performance improvements
    • Design and Psychology
      • Service 8 = an experience of a customer entity that results from that customer entity interacting with provider entities’ offerings
    • Marketing
      • Service 9 = the application of competence (e.g., resources, skills, capabilities) for the benefit of another entity
      • Service 10 = a customer-provider interaction that creates mutual benefits