University and Industry Interactions for a Smarter Planet Working Together to Build a Smarter Planet Dr. James (“Jim”) C. Spohrer, [email_address] Innovation Champion and Director IBM UPward (University Programs worldwide - accelerating regional development) NCET2 & UIDP, Wed 12noon EST August 31th, 2011 Dawn Tew, [email_address] Collaborative Research Initiatives, University Programs Worldwide
Daniel Patrick Moynihan said nearly 50 years ago: "If you want to build a world class city, build a great university and wait 200 years." His insight is true today – except yesterday's 200 years has become twenty. More than ever, universities will generate and sustain the world’s idea capitals and, as vital creators, incubators, connectors, and channels of thought and understanding, they will provide a framework for global civil society.
Come visit IBM Almaden Research Center, San Jose, CA
Sept 27 th , 2011
Future Technologies, Skills & Jobs
ISSS & SRII San Jose
HSSE San Francisco
IBM operates in 170 countries around the globe IBM has 426,000 employees worldwide
Revenue - $ 99.9B
Net Income - $ 14.8B
EPS - $ 11.52
Net Cash - $11.7B
21% of IBM’s revenue in growth market countries; growing at 13% in late 2010 Number 1 in patent generation for 18 consecutive years ; 5,896 US patents awarded in 2010 More than 40% of IBM’s workforce conducts business away from an office 5 Nobel Laureates 9 time winner of the President’s National Medal of Technology & Innovation - latest award for Blue Gene Supercomputer The Smartest Machine On Earth 100 Years of Business & Innovation “ Let’s Build a Smarter Planet"
Our History: Over 60 Years of Collaborations 1945: IBM Research born in cooperation w/ Columbia University 1951: PhD Fellowship Program launched 1997: First ACM Int’l Collegiate Programming Contest (ACM ICPC) held 2002: Virtual Computing Lab Initiative ( VCL ) created at NC State 1990: First Center For Advanced Studies ( CAS ) opens in Toronto CA 2003: IBM and leading universities pioneer the discipline of Services Science, Management & Engineering ( SSME ) 2008: Award programs innovated with introduction of Named Awards for outstanding achievers 2007: IBM, RPI and State of NY form CCNI ; A $100M public-private partnership 2009: IBM Cloud Academy launched as a forum for Higher Educ to create & share cloud based technologies 1945 2011 1983: Faculty Award Program launched 1980 1993: Shared Univ Research ( SUR ) Program launched 2004: Launch of the Academic Initiative ( AI ) providing free IBM SW to the academic community 2006: Open Collaborative Research ( OCR ) award program launched
What We Do: The “6 R’s” (not to be confused with 3 R’s)
Research awards focus on grand challenge problems and big bets
University as Complex Enterprise (City Within City)
Universities can be the innovation centers for Smarter Cities (U-BEE) University-Based Entrepreneurial Ecosystems
Cities can be living labs for University research
Universities produce the skilled workforce for cities.
Universities are among the largest employers (top 10) in a city.
Universities faculty, deans, provosts, presidents are often well connected & influential in city governments.
IBM and Tulane University Usher in a New Era for Smarter Buildings in New Orleans
http://www-03.ibm.com/press/us/en/pressrelease/34694.wss As the largest private employer in the City of New Orleans, Tulane University has made significant advances in rebuilding in more environmentally sustainable ways both the community at large and its campus The IBM project is helping to transform the home of Tulane's School of Architecture, the century-old Richardson Memorial Hall, into a "smarter building living laboratory ," using IBM Intelligent Building Management while maintaining respect for its historic status
What are the benefits of top-ranked universities? % WW GDP and % WW Top-500-Universities Strong Correlation (2009 Data): National GDP and University Rankings http://www.upload-it.fr/files/1513639149/graph.html
What are the benefits of more education? Of higher skills? … But it can be costly, American student loan debt is over $900M
Universities Worldwide Accelerating Regional Development “ When we combined the impact of Harvard’s direct spending on payroll, purchasing and construction – the indirect impact of University spending – and the direct and indirect impact of off-campus spending by Harvard students – we can estimate that Harvard directly and indirectly accounted for nearly $4.8 billion in economic activity in the Boston area in fiscal year 2008, and more than 44,000 jobs.”
U-BEEs: University-Based Entrepreneurial Ecosystems Universities as “Living Labs” for Host Cities UNIVERSITIES: Research Centers & Real-World Systems CITIES/METRO REGIONS: Universities Key to Long-Term Economic Development
“Good ideas” evolving to higher value… Revenue Revenue Revenue
“I have a technology to license…” Now universities, businesses, individuals and technology brokers can submit non-confidential business proposals, patents, white papers, etc. to http:// www.ibm.com /contact/submissions
SmartCamps bring together regional leaders 2010 SmartCamp finalists 2011 SmartCamp finalists… IBM SmartCamp New York
SmartCamp winners attract venture capital funding Acumen Fund Invests in Sproxil, Inc. to Combat Counterfeit Medicine Using Mobile Technology PRWeb Sproxil wins $10,000 People’s Choice Award at Accelerate Michigan Xconomy Streetline gets $15M for smart parking VatorNews Parking-Technology Startup Streetline Backed by Bill Ford’s Firm Bloomberg CareCloud Raises $5 Million in Second Angel Investor Round HealthPlanNews Panoramic Power Announces $4.5 Million Funding Globes Israel
IBM SmartCamps generate global media interest SmartCamp Bangalore: IBM’s Adoption Plan Forbes India IBM SmartCamp: A Green Future in Sensors GreenTech How IBM is Helping Entrepreneurs Build a Smarter Planet GlobalKnowledgeEconomy blog Big Blue’s bear hug for Silicon Valley startups VentureBeat IBM’s Innovative Approach to Venture Capital The Street IBM’s “Global Entrepreneur of the Year” Streetline: A silver bullet for urban traffic problems CNN Money With SmartCamp, IBM supports five French start-ups for Smarter Planet Le Monde Informatique IBM Announces Silicon Valley’s Smartest Green SMB Startups InformationWeek IBM’s SmartCamp Rewards Entrepreneurs for Good Intentions and Presentations Building a Smarter Planet blog
IBM Innovation Centers – A proven gateway into SmartCamps
Support for building, porting, and testing applications
More than three quarters of post-1995 increase in productivity growth could be traced to science investments [D. W. Jorgenson, M. S. Ho, K. J. Stiroh, J. Econ. Perspect. 22, 3 (2008)]
1/3 of SBIRs reported involvement with a university including founder was a former academic, faculty were consultants, universities were subcontractors, or graduate students were employed
20 year returns for Early/Seed VCs was 20.6%, compared to 13.8% for Later Stage VCs and 8.2% for the S&P 500
8 percent of all university startups go public, in comparison to a "going public rate" of only 0.07 percent for other U.S. enterprises - a 114x difference
over 400 university startups are created nationally each year based on federally funded R&D, which included Google, Netscape, Genentech, Lycos, Sun Microsystems, Silicon Graphics, and Cisco Systems
Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were 5 years old or less
68% of university startups created between 1980 to 2000 remained in business in 2001, while regular startups experienced a 90% failure rate during that same time period
University Trend: Shift to e-Learning and IC U-BEEs
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
Research discipline problems
Innovation Centers (ICs)
Research real-world systems
University-Based Entrepreneurial Ecosystems
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
Universities connect innovation flows between Regions (“High Speed Bus”)
World as System of Systems
World (light blue - largest)
Nations (green - large)
States (dark blue - medium)
Cities (yellow - small)
Universities (red - smallest)
Cities as System of Systems
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)
A New Paradigm: Collaborative Innovation China Watson Almaden Austin Tokyo Haifa Zurich India IBM Research Lab Global, Smarter Planet Collaborations Pangoo Brazil
Connecting Universities and IBM Global Research Labs Smarter Planet Solutions &Platforms Sci Net Consortium Mega Scale Centers of Competency HSCCI Innovation Showcase Centers On Campus Collaborations Services Research Institute Collaboratory for Services Science Grand Challenge Centers
Global University Programs in Action Sci Net Consortium at University of Toronto IBM & University of Melbourne Collaboratory for Life Sciences Research King Abdullah University of Science & Technology (KAUST) IBM & Rice University to Tackle Smarter Healthcare Challenges with HPC POWER7
Co-investing to improve capabilities of individuals & institutions.
Realizing profitable & sustainable improvements.
Smarter cities/regions improve quality-of-life (for all of us!)
Where We Focus: Universities Research Recruiting Skills People Individuals & Disciplines Government Industry Academia Planet Institutions & Systems Talent Infrastructure
Big Picture in Words: Regional 4 I’s Upward Spirals
Academia, industry, and government, while different types of societal institutions , are nevertheless similar in that they provide career paths for individuals; in general higher skill, greater responsibility, and more productive-prior experiences and outcomes correlate with higher pay, one aspect of modern quality-of-life.
These individuals live somewhere and experience quality-of-life both where they live and where they visit; furthermore, their decisions about where to live, where to visit, which career paths and other options to pursue are shaped by culturally shared information about regional quality-of-life variations - some regions historically provide more and better opportunities than others.
Finally, stepping back for a moment, and taking a broad view of history, one can see academia, industry, and government interacting to build and rebuild more and more technologically advanced infrastructure , from buildings to transportation and utility systems; infrastructure which provides access to natural and human-made resources that support quality-of-life in regions - vast majority of regions today have increasing population densities that put stress on older systems.
How well do we understand “regional 4 I’s upward spirals” across generations?
IBM’s Smarter Planet research aims to understand infrastructure building and rebuilding, by institutions designing and redesigning career paths, for individuals working and reworking life’s options, based on shared information about regional quality-of-life and what is best for them, their families, and their communities.
Five waves of infrastructure transformation Source: Carlota Perez, Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages ; (Edward Elar Publishers, 2003). Installation Deployment Irruption The Industrial Revolution Age of Steam and Railways Age of Steel, Electricity and Heavy Engineering Age of Oil, Automobiles and Mass Production Age of Information and Telecommunications Frenzy Synergy Maturity Panic 1797 Depression 1893 Crash 1929 Credit Crisis 2008 Coming period of Institutional Adjustment and Production Capital 1 2 3 4 5 Panic 1847 1771 1829 1875 1908 1971 1873 1920 1974 1829 Crash
Formation of Mfg. industry
Repeal of Corn Laws opening trade
Standards on gauge, time
Catalog sales companies
Economies of scale
Support for interventionism
Build-out of Interstate highways
IMF, World Bank, BIS
Evolution: Smarter Planet Infrastructure (3 I’s) INSTRUMENTED We now have the ability to measure, sense and see the exact condition of practically everything. INTERCONNECTED People, systems and objects can communicate and interact with each other in entirely new ways. INTELLIGENT We can respond to changes quickly and accurately, and get better results by predicting and optimizing for future events. IT NETWORKS WORKFORCE PRODUCTS SUPPLY CHAIN COMMUNICATIONS TRANSPORTATION BUILDINGS
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‘)
20/10/10 0/19/0 2/7/4 2/1/1 7/6/1 1/1/0 5/17/27 1/0/2 24/24/1 2/20/24 7/10/3 5/2/2 3/3/1 0/0/0 1/2/2 Quality of Life = Quality of Service + Quality of Jobs + Quality of Investment-Opportunities * = US Labor % in 2009. “ 61 Service Design 2010 (Japan) / 75 Service Marketing 2010 (Portugal)/78 Service-Oriented Computing 2010 (US)”
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
Our 21 st Century World: Nested, Networked Holistic Service Systems http://www.service-science.info/archives/1056
Holistic Service Systems provide access to “Whole Service” to people inside, including Transportation, Water, Food, Energy, Communications, Buildings, Retail, Finance, Health, Education, Governance, etc.
Examples: Nations, States, Cities, Universities, Hotels, Hospitals, Homes
Definition: An holistic service system is a service system that can provide “whole service” to its primary population of people, independent of all external service systems, for an extended period of time, balancing independence with interdependence (outsourcing limits, re-cycle to sustain, etc.)
University-Based Entrepreneurial Ecosystems (U-BEE’s): Universities are usually in the “top five” job creators of regions, when they have associated incubators & science-technology parks, super-computing data centers, hospitals, cultural & conference hotels, K-12 schools, etc.
For-profits Non-profits U-BEE Job Creators ~25-50% of start-ups are new IT-enabled service offerings SaaS PaaS IaaS http://www.thesrii.org Nation State/Province City/Region University College K-12 Cultural & Conference Hotels Hospital Medical Research Worker (professional ) Family (household )
Questions leaders of every nation, state, city, etc. ask
How to create more and better jobs (meaningful activities) for citizens?
higher skill & higher pay
higher participation rate, opportunities for ALL people
How to shift work towards high-skill, high-value activities?
away from low-skill, low-value routine physical, mental, interactional activities
toward high-value innovation (inventing best-practices, often from new ventures)
What are T-shaped professionals? Ready for Life-Long-Learning Ready for T-eamwork Ready to Help Build a Smarter Planet SSME+D = 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 multi-cultural-team service projects completed (resume: outcomes, accomplishments & awards) BREADTH DEPTH
Dr. James (“Jim”) C. Spohrer Innovation Champion & Director, IBM University Programs & open worldwide entrepreneurship research (IBM UPower) WW email@example.com “ Instrumented, Interconnected, Intelligent – Let’s build a Smarter Planet.” – IBM “ If we are going to build a smarter planet, let’s start by building smarter cities” – CityForward.org “ Universities are major employers in cities and key to urban sustainability.” – Coalition of USU “ Cities learning from cities learning from cities.” – Fundacion Metropoli “ The future is already here… It is just not evenly distributed.” – Gibson “ The best way to predict the future is to create it/invent it.” – Moliere/Kay “ Real-world problems may not/refuse to respect discipline boundaries.” – Popper/Spohrer “ Today’s problems may come from yesterday’s solutions.” – Senge “ History is a race between education and catastrophe.” – H.G. Wells “ The future is born in universities.” – Kurilov “ Think global, act local.” – Geddes
A Science of Smarter Service Systems Computational System Smarter Technology Requires investment roadmap Service Systems: Stakeholders & Resources 1. Individuals (People) 2. Infrastructure (Technology) 3. Shared Information (QoL Decision-Making) 4. Societal Institutions (Acad., Industry, Gov.) connected by win-win value propositions Smarter Buildings, Universities, Cities Requires investment roadmap
Computational power doubles at a predictable rate.
Are there analogous capability-doubling laws that apply in services?
Suppose that traces of human activity in particular service systems double at some rate, and that these human activity data lead to specific opportunities for improved or increased service productivity or quality.
Consider Amazon.com: The quality of recommendations depends on accurate statistics – the more purchases made, the better the statistics for recommendations.
Three improvement “laws” that might be applicable in services:
The more an activity is performed (time period doubling, demand doubling), the more opportunities to improve
The better an activity can be measured (sensor deployment doubling, sensor precision doubling, relevant measurement variables doubling) and modeled, the more opportunities to improve.
The more activities that depend on a common sub-step or process (doubling potential demand points), the more likely investment can be raised to improve the sub-step.
What is service science? A service system? The ABC’s? Economics & Law Design/ Cognitive Science Systems Engineering Operations Computer Science/ Artificial Intelligence Marketing “ a service system is a human-made system to improve provider-customer interactions and value-cocreation outcomes, by dynamically configuring resource access via value propositions, most often studied by many disciplines, one piece at a time.” “ service science is the transdisciplinary study of service systems & value-cocreation” The ABC’s: The provider (A) and a customer (B) transform a target (C)
Growth of Service in National Economies Daryl Pereira/Sunnyvale/IBM@IBMUS, Parallels the growth of cities, universities, and the digital knowledge economy High Talent Individuals High Tech Infrastructure 42% 64 33 3 1.4 Germany 37% 26 11 63 2.1 Bangladesh 19% 20 10 70 1.6 Nigeria 45% 67 28 5 2.2 Japan 64% 69 21 10 2.4 Russia 61% 66 14 20 3.0 Brazil 34% 39 16 45 3.5 Indonesia 23% 76 23 1 5.1 U.S. 35% 23 17 60 14.4 India 142% 29 22 49 25.7 China 40yr Service Growth S % G % A % Labor % WW Nation World’s Large Labor Forces A = Agriculture, G = Goods, S = Service 2010 2010 NationMaster.com, International Labor Organization Note: Pakistan, Vietnam, and Mexico now larger LF than Germany US shift to service jobs (A) Agriculture: Value from harvesting nature (G) Goods: Value from making products (S) Service: Value from IT augmented workers in smarter systems that create benefits for customers and sustainably improve quality of life.
Growth of Service Revenue at IBM What do IBM Service Professionals Do? Run IT & enterprise systems for customers, help Transform customer processes to best practices, and Innovate with customers. SOFTWARE SYSTEMS (AND FINANCING) SERVICES 2010 Pretax Income Mix Revenue Growth by Segment Services Software Systems 44% 17% 39% IBM Annual Reports
Stakeholder Priorities Education Research Business Government Service Systems Customer-provider interactions that enable value cocreation Dynamic configurations of resources: people, technologies, organisations and information Increasing scale, complexity and connectedness of service systems B2B, B2C, C2C, B2G, G2C, G2G service networks Service Science To discover the underlying principles of complex service systems Systematically create, scale and improve systems Foundations laid by existing disciplines Progress in academic studies and practical tools Gaps in knowledge and skills Develop programmes & qualifications Service Innovation Growth in service GDP and jobs Service quality & productivity Environmental friendly & sustainable Urbanisation & aging population Globalisation & technology drivers Opportunities for businesses, governments and individuals Skills & Mindset Knowledge & Tools Employment & Collaboration Policies & Investment Develop and improve service innovation roadmaps, leading to a doubling of investment in service education and research by 2015 Encourage an interdisciplinary approach The white paper offers a starting point to - Priorities: Succeeding through Service Innovation - A Framework for Progress ( http://www.ifm.eng.cam.ac.uk/ssme/ ) Source: Workshop and Global Survey of Service Research Leaders (IfM & IBM 2008) Glossary of definitions, history and outlook of service research, global trends, and ongoing debate 1. Emerging demand 2. Define the domain 3. Vision and gaps 4. Bridge the gaps 5. Call for actions
Priorities: Research Framework for the Science of Service Source: Global Survey of Service Research Leaders (Ostrom et al 2010) Pervasive Force: Leveraging Technology to Advance Service Strategy Priorities Execution Priorities Fostering Service Infusion and Growth Improving Well-Being through Transformative Service Creating and Maintaining a Service Culture Stimulating Service Innovation Enhancing Service Design Optimizing Service Networks and Value Chains Effectively Branding and Selling Services Enhancing the Service Experience through Cocreation Measuring and Optimizing the Value of Service Development Priorities
Systems-Disciplines Matrix: Visualizing the Scope of Service Science
E.g., Customer = marketing
E.g., Technology = engineering
E.g., Future = design
E.g., Innovation = entrepreneurship
Stakeholders Resources Change Value Flows Human Development Governance Governance
Systems-Discipline Matrix: More Detail disciplines 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., stats & design 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) Starting Point 1: Observe the Stakeholders (As-Is) Starting Point 2: Observe their Resource Access (As-Is) Change Potential: Think It! (Has-Been & Might-Become & To-Be) Value Realization: Do It Together! (New As-Is)
How are advanced technologies changing the mix of jobs? Levy, F, & Murnane, R. J. (2004). The New Division of Labor: How Computers Are Creating the Next Job Market. Princeton University Press. Expert Thinking Complex Communication Routine Manual Non-routine Manual Routine Cognitive
Interactions are Key Johnson, B., Manyika, J., & Yee, L. (2005). The next revolution in interactions. McKinsey Quarterly , 4, 20-33. As more 21 st century companies come to specialize in core activities and outsource the rest, they have greater need for workers who can interact with other companies, their customers, and their suppliers. Raising the productivity of employees whose jobs can’t be automated is the next great performance challenge – and the stakes are high. Companies that get that right will build complex talent-based competitive advantages that competitors won’t be able to duplicate easily – if at all.
Time ECOLOGY 14B Big Bang (Natural World) 10K Cities (Human-Made World) sun (energy) writing (symbols and scribes, stored memory and knowledge) earth (molecules & stored energy) written laws (governance and stored control) bacteria (single-cell life) sponges (multi-cell life) money (governed transportable value stored value, “ economic energy”) universities (knowledge workers) clams (neurons) trilobites (brains) printing press (books) steam engine (work) Where is the “Real Science” - mysteries to explain? In the many sciences that study the natural and human-made worlds… Unraveling the mystery of evolving hierarchical-complexity in new populations… To discover the world’s architectures and mechanisms for computing non-zero-sum Entity Architectures (Є N ) of nested, networked Holistic-Product-Service-Systems (HPSS) 200M bees (social division-of-labor) 60 transistor (routine cognitive work)
2011 Priorities Regions Readiness Recruiting Revenue Research Events & Ecosystem Alignment - BIG EVENTS (Centennial, Watson, etc.) - EXTERNAL STAKEHOLDERS (Professional Associations, National Academies, Science Foundation) - INTERNAL STAKEHOLDERS (S&D, GBS, GTS, STG, SWG, HR, CC&CA, IDR, VC, etc.)
CLASSICS: Shared University Research, Open Collaborative Research, Faculty, PhD Fellowships
SPECIALS: Special Award Programs, Named Awards, Smarter Planet Curriculum Awards
LEVERAGE: Leverage IBM CCC&A with government, foundation, and other external award programs
IBM on Campus -- ON CAMPUS IBMERS (Checklist for University Relationship Maturity Audit) -- IBM CENTERS (CAS, IIE, University Delivery Centers, Research Collaboratories, etc.) -- ALIGNMENT (IBM Cloud Academy, City Shared Service, Smarter City Challenge, etc.)
REGIONAL INNOVATION ECOSYSTEMS (Smarter City Challenge, Universities as Living Labs)
TANDEM AWARDS (connect developed & emerging Twin Towns & Sister Cities to Boost Quality)
ACCELERATING INNOVATION (Bi-Directional Learning’ To Be The Best Learn From The Rest)
Cloud Computing & Analytics - BIG DATA (High Performance Computing, Grand Challenges, Boost University Rankings) - SHARED SERVICE (IBM Cloud Academy, IBM Academic Cloud, VCL) - DEEP-QA (Analytics Skills, Watson technology, Massive Analytics, Stream Computing) Smarter Cities and Service Innovation --INTERNET OF THINGS (Instrumented, Interconnected, Intelligent) - LIVING LABS (Triple Helix Innovations, Smarter Buildings, Asset Management, CityForward.org) - QUALITY-OF-LIFE (Holistic Modeling (CityOne), STEM Education Pipeline, Jobs & Entrepreneurship) Responsibility PRIORITY AREA
Vision for the Educational Continuum: Individuals & Institutions Learning The Educational Continuum http://www-935.ibm.com/services/us/gbs/bus/html/education-for-a-smarter-planet.html 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
Continuing Education Higher Education Secondary School Primary School Workforce Skills Individuals Learning Continuum Institutions Learning Continuum Economic Sustainability
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
11. Cities : Security and tax burden
12. States : Infrastructure maintenance and tax burden
13. Nations : Justice system overburdened and tax burden
Complex Buildings: Modern Cities Example: Singapore Population Challenges Careers Opportunities
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
Fun: CityOne Game to Learn “CityInvesting” Serious Game to teach problem solving for real issues in key industries, helping companies to learn how to work smarter. Energy, Water, Banking, Retail http://www.ibm.com/cityone
What is Service? Spohrer, J. & Maglio, P. P . (2010). Toward a science of service systems: Value and symbols. In P. P. Maglio, C. A. Kieliszewski & J. C. Spohrer (Eds.), Handbook of Service Science . New York: Springer.
Spohrer, JC (2011) On looking into Vargo and Lusch's concept of generic actors in markets, or “ It's all B2B …and beyond!” Industrial Marketing Management, 40(2), 199–201. Ecology (Populations & Diversity) Entities (Service Systems, both Individuals & Institutions) Interactions (Service Networks, link, nest, merge, divide) Outcomes (Value Changes, both beneficial and non-beneficial) Value Proposition (Offers & Reconfigurations/ Incentives, Penalties & Risks) Governance Mechanism (Rules & Constraints/ Incentives, Penalties & Risks) Access Rights (Relationships of Entities) Measures (Rankings of Entities) Resources (Competences, Roles in Processes, Specialized, Integrated/Holistic) Stakeholders (Processes of Valuing, Perspectives, Engagement) Identity (Aspirations & Lifecycle/ History) Reputation (Opportunities & Variety/ History) prefer sustainable non-zero-sum outcomes, i.e., win-win win-win lose-lose win-lose lose-win
Service system entities configure four types of resources
First foundational premise of service science:
Service system entities dynamically configure four types of resources
Resources are the building blocks of entity architectures
Named resources are:
Physicist resolve disputes
Named resources have:
Judges resolve disputes
Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . Formal service systems can contract to configure resources/apply competence Informal service systems can promise to configure resources/apply competence Trends & Countertrends (Balance Chaos & Order): (Promise) Informal <> Formal (Contract) (Relationships & Attention) Social <> Economic (Money & Capacity) (Power) Political <> Legal (Rules) (Evolved) Natural <> Artificial (Designed) (Creativity) Cognitive Labor <> Information Technology (Routine) (Dance) Physical Labor <> Mechanical Technology (Routine) (Relationships) Social Labor <> Transaction Processing (Routine) (Atoms) Transportation <> Communication (Bits) (Tacit) Qualitative <> Quantitative (Explicit) (Secret) Private <> Public (Shared) (Anxiety-Risk) Challenge <> Routine (Boredom-Certainty) (Mystery) Unknown <> Known (Justified True Belief) Physical Not-Physical Rights No-Rights 2. Technology/ Environment Infrastructure 4. Shared Information / Symbolic Knowledge
3. Organizations/ Institutions
Service system entities calculate value from multiple stakeholder perspectives
Second foundational premise of service science
Service system entities calculate value from multiple stakeholder perspectives
Value propositions are the building blocks of service networks
A value propositions can be viewed as a request from one service system to another to run an algorithm (the value proposition) from the perspectives of multiple stakeholders according to culturally determined value principles.
The four primary stakeholder perspectives are: customer, provider, authority, and competitor
Citizens: special customers
Entrepreneurs: special providers
Parents: special authority
Criminals: special competitors
Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . Value propositions coordinate & motivate resource access Model of competitor: Does it put us ahead? Can we stay ahead? Does it differentiate us from the competition? Will we? (invest to make it so) Strategic Sustainable Innovation (Market share) 4.Competitor (Substitute) Model of authority: Is it legal? Does it compromise our integrity in any way? Does it create a moral hazard? May we? (offer and deliver it) Regulated Compliance (Taxes and Fines, Quality of Life) 3.Authority Model of self: Does it play to our strengths? Can we deliver it profitably to customers? Can we continue to improve? Can we? (deliver it) Cost Plus Productivity (Profit, Mission, Continuous Improvement, Sustainability) 2.Provider Model of customer: Do customers want it? Is there a market? How large? Growth rate? Should we? (offer it) Value Based Quality (Revenue) 1.Customer Value Proposition Reasoning Basic Questions Pricing Decision Measure Impacted Stakeholder Perspective (the players)
Service system entities reconfigure access rights to resources by mutually agreed to value propositions
Third foundational premise of service science
Service system entities reconfigure access rights to resources by mutually agreed to value propositions
Access rights are the building blocks of the service ecology (culture and information)
Access to resources that are owned outright (i.e., property)
Access to resource that are leased/contracted for (i.e., rental car, home ownership via mortgage, insurance policies, etc.)
Shared access (i.e., roads, web information, air, etc.)
Privileged access (i.e., personal thoughts, inalienable kinship relationships, etc.)
Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . service = value-cocreation B2B B2C B2G G2C G2B G2G C2C C2B C2G *** provider resources Owned Outright Leased/Contract Shared Access Privileged Access customer resources Owned Outright Leased/Contract Shared Access Privileged Access OO SA PA LC OO LC SA PA S A P C Competitor Provider Customer Authority value-proposition change-experience dynamic-configurations (substitute) time
Service system entities interact to create ten types of outcomes
Four possible outcomes from a two player game
ISPAR generalizes to ten possible outcomes
lose-lose: 5,6, 7, maybe 4,8,10
lose-win: 9, maybe 8, 10
win-lose: maybe 4
Maglio PP, SL Vargo, N Caswell, J Spohrer: (2009) The service system is the basic abstraction of service science. Inf. Syst. E-Business Management 7(4): 395-406 (2009) lose-win (coercion) win-win (value-cocreation) lose-lose (co-destruction) win-lose (loss-lead) Win Lose Provider Lose Win Customer ISPAR descriptive model
Service system entities learn to systematically exploit technology: Technology can perform routine manual, cognitive, transactional work March, J.G. (1991) Exploration and exploitation in organizational learning. Organizational Science. 2(1).71-87. Sanford, L.S. (2006) Let go to grow: Escaping the commodity trap. Prentice Hall. New York, NY. L Learning Systems (“Choice & Change”) Exploitation (James March) Exploration (James March) Run/Practice-Reduce (IBM) Transform/Follow (IBM) Innovate/Lead (IBM) Operations Costs Maintenance Costs Incidence Planning & Response Costs (Insure) Incremental Radical Super-Radical Internal External Interactions “ To be the best, learn from the rest” “ Double monetize, internal win and ‘sell’ to external” “ Try to operate inside the comfort zone”
Service system entities are physical-symbol systems
Service is value cocreation.
Service system entities reason about value.
Value cocreation is a kind of joint activity.
Joint activity depends on communication and grounding.
Reasoning about value and communication are (often) effective symbolic processes.
Newell, A (1980) Physical symbol systems, Cognitive Science , 4, 135-183. Newell, A & HA Simon(1976). Computer science as empirical inquiry: symbols and search. Communications of the ACM, 19, 113-126.
Summary Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . 5. Exploit information & technology 6. Physical-Symbol Systems Physical Not-Physical Rights No-Rights 2. Technology/ Infrastructure 4.. Shared Information
3. Organizations/ Institutions 1. Dynamically configure resources (4 I’s) Model of competitor: Does it put us ahead? Will we? Strategic Sustainable Innovation 4.Competitor/ Substitutes Model of authority: Is it legal? May we? Regulated Compliance 3.Authority Model of self: Does it play to our strengths? Can we? Cost Plus Productivity 2.Provider Model of customer: Do customers want it? Should we? Value Based Quality 1.Customer Reasoning Questions Pricing Measure Impacted Stakeholder Perspective 2. Value from stakeholder perspectives S A P C 3. Reconfigure access rights 4. Ten types of outcomes (ISPAR)
Service is value-cocreation , that is, useful changes that result from communication, planning, or other purposeful interactions between distinct entities.
A service system is a collection of entities and interactions that cocreate value, that is, a set of distinct configurations of resources (including people, organizations, shared information, and technology) that are better off working together than working alone.
Service Science aims to create a body of knowledge that describes, explains, predicts, and improves value-cocreation between entities as they interact, that is, relying on methods and standards used by a community to account for observable phenomenon with conceptual frameworks, theories, models, and laws that can be empirically tested.
So the object of study value-cocreation, the basic abstraction is the service system, and the ultimate goal is develop methods and theories that can be used to explain and improve value-cocreation in service systems .
Institutions or business and societal organizations, organizational (role configuration) dimensions of
Infrastructure /Product/Technology/Environment, physical dimensions of
Information or Knowledge, symbolic dimensions
B. Service Customer
Public or Private
Forms of Ownership Relationship (B on C) Forms of Service Relationship (A & B co-create value) Forms of Responsibility Relationship (A on C) Forms of Service Interventions (A on C, B on C) Spohrer, J., Maglio, P. P., Bailey, J. & Gruhl, D. (2007). Steps toward a science of service systems. Computer, 40 , 71-77. From… Gadrey (2002), Pine & Gilmore (1998), Hill (1977) Vargo, S. L. & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68 , 1 – 17. “ Service is the application of competence for the benefit of another entity.”
Service System Dynamics: Four Key Drivers of Change
New technology to boost productivity & capacity (innovate)
Use technology to perform routine manual, cognitive, and transactional work
New relationship networks: Business models and new ventures (for-profit & non-profits)
Customer: Self Service
New self-service options to lower costs & expand choice (educate)
New rules to fix problems & achieve policy goals (regulate)
Institutional diversity and governance of resource commons (Ostrom et. al.)
New rankings to guide decision-making & gain “valued” customers (differentiate)
Hint: You want to be at the top of an independently ranked list of what customers are looking for…
Especially for “valued” customers - calculating customer lifetime value (Rust et. al.)
Example Service System Re-Design: A College Course
Problem: What if a college course had…
Input: Student quality lower
Process: Faculty motivation lower
Output: Industry fit lower
Solution: Tech + Self-Service
E: -20% E-learning enrollment pre-certification
F. +10% Faculty interest tuning
J. +10% on-the-Job skills tuning
After a decade the course may look quite different Service systems are learning systems: productivity, quality, compliance, sustainable innovation Maglio, P., Srinivasan, S., Kreulen, J.T., Spohrer, J. (2006), Service systems, service scientists, SSME, and innovation. Communications of the ACM, 49(7), 81-85. Year 1: 20% Year 2: 20% Year 3: 20% Year N: 20% . . . . . . . . E F J
What about advanced manufacturing? http://www.youtube.com/watch?v=nd5WGLWNllA
Rethinking “Product-Service Systems” F B Service System Entity Product-Service-System B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F F F B B Service Business Product Business Front-Stage Marketing/Customer Focus Back-Stage Operations/Provider Focus Based on Levitt, T (1972) Production-line approach to service. HBR. e.g., IBM e.g., Citibank “ Everybody is in service... Something is wrong… The industrial world has changed faster than our taxonomies.”.
Example Service Systems Innovation Framework “ The Ten Types of Innovation” by Larry Keeley, Doblin Inc. Innovate (inside and outside) systems that create value
Most Wanted: A CAD for Service System Design CBM: Component Business Model WBM and RUP: Work Practices & Processes SOA: Technical Service-Oriented Architecture Key Performance Indicators (KPIs) IBM IBV: Component Business Models IEEE Computer, Jan 2007
Ultimately, a Service Ecology Simulation Tool is Needed 2000 2010 2020 2030 Log Entities 6 9 12 15 Projected Simulation Capability Earth Simulator Universe Simulation Brain Simulation Heart Simulation CBM-based Industry Simulations - 2013?
Life = Multiple Generations of Entities (200 years = 10 generations x 20 years) Pedagogy: Ten Social-Technological-Economic-Environmental-Political (STEEP) Stages Thought Experiment: Binary-Board-Space (Rule: Toggles Each Generation)
Hunter-Gatherer Knowledge-Value Economy 1
- 2K population (20 people/sq mile * 100 sq miles)
Occupied (In Use) Recycling (De-construction & Re-construction) water food/products energy ICT R&H/M&E/C&S finance health education governance transportation buildings/family Sector 1 city interconnect 11 Systems Sector 2 state interconnect Sector 3 nation interconnect Sector 4 continent interconnect High Talent Individuals High Tech Infrastructure Toggle each generation – 20 year cycle
Entities = Life-Cycle Script Example: Possible STEEP Stages 9 & 10 ( individuals, multiple generations of entities)
Children – Age 0-20
(Local & Global) Grow, Learn , & Have Fun
Parents – Age 20-40 (offspring 2)
(Next Local) Reproduce, Raise Children, & Build New “City” SET Stage
Grand-Parents – Age 40-60 (offspring 4)
(Local) Run the “City” You Built & Connect with Family
Great-Grand-Parents – Age 60-80 (offspring 8)
(Global) Travel the World, Enjoy Experiences, & Share Ideas
Great-Great-Grand-Parents – Age 80-100 (offspring 16)
(Local) Return, Reconnect, and Document History & Future Plans
Great-Great-Great-Grand-Parents – Age 100-120 (offspring 32)
The Game Board: A configuration of PS (Physical Systems), with interspersed PSS (Physical Symbol Systems) and SSE (Service System Entities).
The SSE are PSS are PS
The infrastructure is PS + PSS
The PS have hidden information (state)
The PSS have observable information (state and read-write)
The SSE use information to co-create value
World model – information about the world (The Game Board)
Self model – information about self (SSE)
The SSE have a beginning and an end (life-cycle)
The SSE judge quality-of-life across their life-cycle
The game is each generation of SSE try to improve quality-of-life, by improving the capabilities of the infrastructure (less waste, more support for SSE activities) and the capabilities of the SSE to co-create value (an SSE activity)
The starting game board consists of PS with a few PSS, and the goal is to see how quickly and with how little energy and with how few types and tokens of PS, the PSS can become SSE and reconstruct a high level infrastructure and high quality of life and continuously improve at a sustainable pace.
Processes of valuing are based on the above
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 & LLL
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
LLL = Life Long Learning
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
Universities as Holistic Service Systems: All the systems
10. Education : Cost of keeping up best practices..
11. Cities : Town & gown relationship.
12. States : Development partnerships..
13. Nations : Compliance and alignment.
University: The Heart of Regional Innovation Ecosystems School of Public Policy School of Engineering School of Business Mngmnt School of Medicine School of Education School of Architecture School of Urban Planning School of Hospitality School of Information School of Science & Arts University: The Heart of Regional Innovation Ecosystems Incubator & Start-Ups $ Cities & Public Safety Government Service to Individuals & Institutions Education Transportation Energy ICT (Computing & Communications) Retail & Hospitality Food & Products Health Building Finance University: The Heart of Regional Innovation Ecosystems
Project Mix From 90-10 to 80-20: B2B – Business to Business B2G – Business to Government
US National Academy of 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
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
Prevent nuclear terror
12. State /Region & Development
13. Nation & Rights
Our ambition is to reach K-12 students with Service Science & STEM: “The systems we live in, and the systems we are…” “ Imagine smarter systems, explain why better (service systems & STEM language)” 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/Home (Bio)
9 – Education /Campus & Work Life/Jobs & Entrepreneurship (Cogno)
10 – City (Government)
11 – State /Region (Government)
12 – Nation (Government)
Higher Ed – T-shaped depth added, cross-disciplinary project teams
Professional Life – Adaptive T-shaped life-long-learning & projects
Systems that focus on Governing Systems that focus on Human Activities and Development Systems that focus on Flow of things
Infrastructure: Smarter Buildings Examples SMART IS Solving building systems shortcomings with the most appropriate, effective & energy efficient approaches. Tulane University: Connecting to existing building systems to collect metered data; incorporating advanced analytics to uncover sub optimal conditions; bringing disparate data together to drive better decision making and measurably reduce overall energy costs. . IBM Rochester, MN: Incremental energy savings of approximately 5% yearly through various improvements and programs; after the installation of IBM Intelligent Building Management, the team achieved an incremental 8% savings. SMART IS Integration of energy and asset management to lower operating cost. SMART IS Optimizing energy consumption lowers operating costs and reduces carbon emissions. Bryant University: An IT initiative to create an energy-efficient data center shifted to a partnership between IT & Facilities to construct smarter buildings. A 15% reduction in energy use and 50% reduction in floor space in the data center are helping to reduce Bryant’s carbon footprint..