Exploring Service Science in our current socio-economic environment The document discusses the changing world and the rise of service science. It notes that the world is becoming more instrumented, interconnected and intelligent. Examples are provided on smarter cities and cloud computing. Key skills are outlined for developing dynamic processes and infrastructure to create value in a service-oriented economy.

1. Exploring Service Science
in our current socio-economic environment
Diem Ho
Member of the IBM Academy of Technology
IESS1.0, University of Geneva, February 17-19, 2010
diem_ho@fr.ibm.com
IBM EMEA University Relations © 2002 IBM Corporation

2. The world is changing
Security
Environmental
Concerns
Complexity
and Instability
Globalization
Energy Supply
Information Explosion and Conservation
2 University Relations January 2010 © 2010 IBM Corporation

3. •-30 billion RFID
The world today tags embedded into
our world
•-1 billion transistors
INSTRUMENTED for each person
on earth
by 2011, 2 billion
people are expected
INTERCONNECTED to connect to the
internet
everyday,15
petabytes of
INTELLIGENT information are being
generated, 8x more
than information in all
US libraries
3 University Relations January 2010 © 2010 IBM Corporation

4. Reality in Numbers
In distributed
Annual $89B lost computing
impact of $3.7B lost hrs 85% environments, up to
congested 85% of computing
Roadways $2.3B gallons capacity sits idle
in the US of gas
The losses of electrical
40%-70% energy due to inefficiency
Annual consumer product around the world
and retail sales lost in
$40B United States due to supply
chain inefficiencies
70¢ per $1
Lost annually in the US Spent on
due to healthcare fraud $100B IT maintenance
of total port volume
22% in North America is
empty containers Increase in global water
Worth of produce is wasted usage since the 90s,
6X
$11.5B in India because of outdated
post-harvest infrastructure
twice the rate of human
population growth
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5. It’s all about
Values
and
Value Creation
Cost Quality Utility Perception
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6. Economic Evolution: Value Creation
Driver: getting closer to users
nomad agriculture goods services ?
integrating
Technical Vitality
Product complexity URGENCY
Client’s needsOF NOW!
New Technologies /
by Integration
h Products
Knowledge
Acquire Create
Assimilate
n
Products
tio
Understand
ica
business Develop values
challenges Services
ist
ph
so
Society/Businesses
Products Services
IBM EMEA University Relations © 2002 IBM Corporation
Service complexity

7. Value Creation
SHAREHOLDER´S
by STAKEHOLDER’S
Ultimate Objective
VALUE
Innnovation
CONSITUTUE
NTS SERVED
EFFICIENCY
REVENUE-
SURPLUS
MARKET
BUDGET
BUDGET
PROFIT-
SHARE-
Fundamental Indicators
(KPIs)
MARKET
SINGULARITY
PRODUCTS & Business
CUSTOMER OPERATIONS
INTIMACY
SERVICES
EXCELLENCE Expectation
LEADERSHIP
REGULATION COMPLIANCE Government
SOCIAL RESPONSIBILITIES /Society
Expectation
Cost Quality Utility Perception
7 University Relations January 2010 © 2010 IBM Corporation

8. Service Innovation: Value Creation Matrix
Do we have Science in Services?
Value Market Revenue Profit Productivity
Challenges Share /Utility
Customers Mass Customization
Products & Services
Facilitation, Simplification, Integration,
Standardization, Differentiation
Market & Competitors
Globalization, Market Singularization
Operations/
Optimization, Automation, Integration,
Processes/ Resources
Organization, Securitization, Virtualization
Governance & Regulation Compliance Optimization
Business Integrity Risk Management
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9. Examples: Smarter City
urbanization: demographic changes
•2008 was the first year in which more
than half of the world – 3.3 billion– was
living in cities
•by 2050, city dwellers are expected to
make up 70% of the earth’s total
population – 6.4 billion out of 9.2
billion–
•India: every minute for the next 20
years, 30 people will leave rural India
for urban India.
- They need 500 new cities
•There will be 1.2 billion cars on the
road by 2015 (~1 car/6 people)
•95% of the world's cities still dump raw
sewage into their waters
9 University Relations January 2010 © 2010 IBM Corporation

10. Examples: Smarter City
service focus & intensive users of information technologies
Smart Transportation Systems Public Safety
- Integrated Fare Management - Smart Surveillance System
- Road Usage Charging (S3)
- Traffic Information Management - Emergency Management
Integration
- Deep Thunder Micro-Weather
Forecasting
Healthcare
- Clinical and Business
Transformation
Energy Management - Enterprise Health Analytics
- Network Monitoring & Stability - Clinical Integration
- Smart Grid – Demand - Healthcare Infrastructure
Management
- Intelligent Building Management
- Automated Meter Management
Environmental Management
Water Management - City-wide Measurements
- Water purity monitoring - KPI’s Telecommunications
- Water use optimization - CO2 Management - Fixed and mobile
- Waste water treatment - Scorecards operators
10 optimization Relations January 2010
University - Reporting © 2010 IBM Corporation
- Media Broadcasters

11. Example: smarter supply chain
Fresh on demand, action against fresh food wastage
Total wastage: € 3 billion Total wastage: € 27+ billion
Production & Wholesale Logistics Retailers Out of home
Others
Source: Johan A Van Staalduinen/Netherlands/IBM
11 University Relations January 2010 © 2010 IBM Corporation

12. Example: Cloud Computing
Dynamic Infrastructure for Service Delivery
IMPROVE SERVICE
Not only ensuring high availability
and quality of existing services, but
also meeting customer expectations MANAGE RISK
REDUCE COST for real-time, dynamic access to
innovative new services. Not only addressing today’s
Not just containing operational cost
security, resiliency, and
and complexity, but achieving
compliance challenges, but
breakthrough productivity gains
also preparing for the new
through virtualization, optimization,
risks posed by an even
energy stewardship, and flexible
more connected and
sourcing.
collaborative world.
Cloud Computing
•Customization
•Efficiency
•Flexibility
VIRTUALIZATION
+ AUTOMATION
+ STANDARDIZATION
=
Cost
•Availability
Flexibility
•Resiliency
•Cost Effectiveness
http://www-03.ibm.com/press/us/en/pressrelease/29367.wss •Security & Privacy
12 University Relations January 2010 © 2010 IBM Corporation

13. Examples of Skills Required
for Service Science •Leadership
•Entrepreneurship
•Strategy
MARKET & •Critical Thinking/Analysis
COMPETITORS
•Macroeconomics
PRODUCTS &
SERVICES OPERATIONS/PROCESSES/RESOURCES CUSTOMERS
•Infrastructure •Processes
•BI/Data warehousing •BI//Data warehousing
-IT Architecture - e-Commerce
•Product/Service Management •Behaviour Science
-IT for Services - SOA/BPM/ERP/ISC
•Product/Service Marketing •Business Analytics
-IT Management - Quality Management
•R&D Management •Optimization
•Project Mgt/Consultancy
•Human Capacity Mgt
•Microeconomics •CRM, Marketing
•Financial Management •Knowledge Mgt
•Pricing •Sales
•Innovation and Design •Innovation
GOVERNANCE
BUSINESS INTEGRITY
•Social Responsibilities •Business Law/Reg. Compliances ERP: Enterprise Resource Plannng
BI: Business Intelligence
•IT based Risk Management ISC: Integrated Supply Chain
SOA: Service Oriented Architecture •Ethics and Values
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14. Making our service system
more efficient, better utilized and more responsive
Skills to develop flexible and
dynamic processes modeled
SMARTER
for the new way people buy, live
& work.
Skills to take advantage Smart Work
LE
Smart Work Skills to reduce energy costs,
of the wealth of
IB
information available in
drive greater efficiencies,
INSIGHTFUL NS SUSTAINABLE
real time from a New
New Green &
respond more quickly by taking
PO
action now on energy, the
multitude of sources to Intelligence
Intelligence Beyond
ES
environment, and sustainability,
make more intelligent
R
choices.
Dynamic
Dynamic
and develop new portfolio of
green services and products.
Infrastructure
Infrastructure
RESPONSIVE Skills to create intelligent
infrastructure that drives down cost,
is secure, and is just as dynamic as
today’s business environment
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15. Top Solutions for Smart Work for Smarter Planet
Agile Industry business solutions and Industry frameworks
Academic Initiative
Business Business Model Innovation services (CBMSOMA) Related Smart Work Courseware
SOA strategy services
Model Smart SOA INsight series
Collaboration software and services •Designing SOA Solutions with the IBM SOA Foundation
RFID, sensors, actuators, consulting services•Assessment Assets for Service Oriented Architecture (SW707)
Web 2.0 products and service •Developing Applications with a Service-Oriented Architecture
Connected Consulting services for CRM and SCM •Getting Started with SOA
Collaborative Software Development
Customers WebSphere Commerce
•Implementation Technologies for Service Oriented Designs
•Service Oriented Architecture Design Patterns
Mobility & Contact Center Solutions •The Value of Service Oriented Architecture
•Fundamentals of IBM Lotus Domino 8 Application Development
•Using IBM Lotus Notes 8 Mail, Calendar, and Contacts
Key Agility Indicators
•IBM WebSphere Portal v6.0: Administration 1&2
Dynamic BPM Suite and consulting services
•IBM WebSphere Business Modeler- Process Simulation and
WebSphere Business Events
Business Component Business Modeling services – (KAIs)
Analysis
Processes Enterprise Architecture products and services
•IBM WebSphere Enterprise Service Bus Implementing an ESB
•Using IBM WebSphere Business Modeler, Monitor and Process
Server for BPM
•IBM WebSphere Commerce V6.0 Hands-on Training for
Smart SOA and SOA solution services
Developers
Application Infrastructure
Smart SOA Connectivity and Integration
•Programming XML with Java 1.4
•Teaching Business Process Management with Innov8
SOA Sandbox
•Developing Supply Chains to support Service Operations
•Introduction to XML and Related Technologies
15
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•Teaching Business Process Modeling

16. Top Solutions for New Intelligence for Smarter Planet
Information on Demand
Academic Initiative
Information Information Agenda
Related New Intelligence Courseware
Management Information Infrastructure
Business Intelligence •Designing SOA Solutions with the IBM SOA Foundation
•Information Management Basics
Business Event Processing
Predictive Analytics Solutions •Architecting the Data Warehouse
•Relational Database Design
Capability Telelogic and Cognos
•Changing Business with Data Insight
•IBM Informix Dynamic Server Administration
•SQL & Database basics
Industry Specific Assets (IA, MRO, •Teaching Business Process Management with Innov8
Engaging Telelogic) •Teaching Business Process Modeling
CRM, SCM and HR Transformation
the Value Sensor and Actuator
•Introduction to IBM DB2
•Advanced Data Warehouse Workshop: Multi-Dimensional
Chain Information Integration Modeling
•DB2 for z/OS Fundamentals
Business Optimization Solutions •DB2 Family Fundamentals
Business Process Management •DB2 SQL Workshop
Smart SOA •Designing SOA Solutions with the IBM SOA Foundation
Business Information On Demand, Information Agenda •Getting Started with SOA
Optimization Information Infrastructure SW and Services •Implementation Technologies for Service Oriented Designs
•The Value of Service Oriented Architecture
•IBM WebSphere Business Modeler- Process Simulation and
Analysis
16 University Relations January 2010 •Using IBM WebSphere Business Modeler for BPM
© 2010 IBM Corporation

17. Top Solutions for Dynamic Infrastructure for Smarter Planet
Academic Initiative:
Related Dynamic Infrastructure Courseware
Reduce Cloud Computing
Cost
Virtualization •Foundations in IT Services I and II
•IBM Tivoli Netcool/Proviso 4.4.3 System Administration and
Energy Efficiency Maintenance
•IBM Tivoli Asset Management for IT 7.1 Implementation
•IBM Tivoli Access Manager for Enterprise Single Sign-On Workshop
Information Infrastructure •IBM Tivoli Business Services Manager 4.1 for Implementers
•IBM Tivoli Composite Appl. Mgr for RTT 6.1 - Install Monitor Deploy
•IBM Tivoli Composite Application Manager for Response Time 6.2
Improve Service Management Implement and Admin Workshop
•IBM Tivoli Federated Identity Manager 6.1 - Deployment and
Service Asset Management Administration
•IBM Tivoli Monitoring 6.2 for Implementers
•IBM Tivoli Netcool/Impact 4.0 - Administration and Implementation
Security Management •IBM Tivoli Netcool/OMNIbus 7.1 - User
•IBM Tivoli Netcool/Realtime Active Dashboards 3.0 Fundamentals
•IBM Tivoli Network Performance Reporting 3.X User
Business Resiliency •IBM Tivoli Provisioning Manager 5.1 - Operations Management
Workshop
Express Mid-Market •Service Desk Management Using IBM Maximo 6 for IT
•Work Management in IBM Maximo 6 for Enterprise Asset
Manage Management
Risk Offerings •An Introduction to the Mainframe - Large Scale Commercial
Computing
•An Introduction to the Mainframe - z/OS Basics
Strategic Outsourcing •Linux on System z
•Teaching Enterprise Systems
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18. Top Solutions for Green and Beyond for Smarter Planet
Data Center Assessment and Design
Finding the Services Academic Initiative:
Value in Green IT Related Green and Beyond Courseware &
Green Software for a Greener World Assets
Intelligent Utility Network and Metering
Intelligent Transportation
Consumer Driven Supply Chain •An Introduction to Large Scale Commercial Computing
Smart Intelligent Oilfields, Manufacturing •An Introduction to the Mainframe - Networking
•An Introduction to the Mainframe - z/OS Basics
Systems Productivity
•IBM’s Software for Greener World
•Lotus Quickr 8.1
•IBM Content Collector, Filenet
•Information Agenda for Energy & Utilities
•IBM Tivoli Usage and Accounting Manager, IBM Tivoli
Societal CSR and Sustainability Monitoring for Energy Management Accounting
Carbon Management •Rational Test Lab Manager Managing
Shifts and Reputation Management Services •Lotus Notes, Domino 8.5
•SmartSOA Sandbox Accelerating
Corporate Ethical Supply Chain Monitoring •IBM FileNet Business Process Manager,
Social •IBM FileNet Content Manager
•Lotus Forms & Lotus Forms Turbo
Responsibilit •Telelogic System Architect
y
http://www-304.ibm.com/jct01005c/university/scholars/academicinitiative/
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19. I1
Skills required for a changing world
We have
a smarter planet and
a service-oriented economy
We need
Skills to Create Values
in recursive
negative feedback service systems
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20. Diapositive 19
I1 IBM_USER; 10.09.2009

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22. About the speaker: Dr Diem Ho is Manager of University Relations for IBM Europe, Middle East and
Africa (EMEA).
His mission is to build and manage relationships of mutual value for IBM and the academic community.
Diem’s past research interests covered many disciplines in Science, Technology and
Finance/Economics. He has published widely in physics, mathematics, image processing, remote
sensing, engineering, optimization and finance.
He recently co-edited/authored a special issue of the Computational Economics on Stochastic Process
and Data Analysis published by Springer.
In recent years, he has lectured intensively on Higher Education Reform and is a member of the peer
review teams for the EFMD-EQUIS and EPAS accreditation programs and a member of the EPAS
committee.
He is an associate editor of the journal of Computational Economics and is a member of the IBM
Academy of Technology.
Before assuming his current position, he was an EMEA practice leader with the IBM Management
Technologies Consulting Group, specializing in using Technologies to address Business Challenges in
Banking and Finance sector.
Before joining IBM, Diem was a university professor and he continues to supervise PhD thesis to-date.
Diem obtained two Master degrees and a PhD in Magnetospheric Physics at Stanford University,
California.
21 University Relations January 2010 © 2010 IBM Corporation