Ibm 101 smarter planet and universities 20121011 v1

IBM University Programs worldwide, accelerating regional development (IBM Upward)

IBM 101:
Smarter Planet
and
Universities

Maker-Bot: Replicator 2

Baxter: Building the Future

Working Together to Build a Smarter Planet

Dr. James (“Jim”) C. Spohrer, spohrer@us.ibm.com
Innovation Champion and Director IBM UPward
(University Programs worldwide, accelerating regional development)

Silicon Valley Venture Capital Roundtable
Friday October 12, 2012

© 2012 IBM Corporation

Today’s Talk

 IBM 101: Smarter Planet

 IBM University Programs IBM Smarter Planet

 Two Generations: Accelerating Change

Nano-Bio-Info-Cogno

2 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation

IBM’s Leadership Changes

IBM has 426,000
employees worldwide
2011 Financials
22% of IBM’s revenue  Revenue - $ 106.9B
in Growth Market
 Net Income - $ 15.9B
countries; growing at
 EPS - $ 13.44
11% in 2011
 Net Cash - $16.6B More than 40% of IBM’s
workforce conducts business
away from an office

55% of IBM’s Workforce
IBM operates in 170 is New to the company in
countries around the globe the last 5 years
Number 1 in patent
generation for 19
100 Years of Business consecutive years ;
& Innovation in 2011 6,180 US patents
awarded in 2011 The Smartest Machine On Earth
9 time winner of the 5 Nobel
President’s National Laureates
Medal of Technology
& Innovation - latest “Let’s Build a Smarter Planet"
award for Blue Gene
Supercomputer


What’s UP with IBM? University Programs


Most people say, “IBM makes computers”


Those in-the-know say, “IBM is helping to build a Smarter Planet…”


A Smarter Planet is built from smarter service systems…

INSTRUMENTED INTERCONNECTED INTELLIGENT
We now have the ability People, systems and We can respond to changes
to measure, sense and objects can communicate quickly and accurately,
see the exact condition and interact with each and get better results
of practically everything. other in entirely new by predicting and optimizing
ways.
PRODUCTS IT NETWORKS for future events.
COMMUNICATIONS

WORKFORCE SUPPLY CHAIN TRANSPORTATION BUILDINGS


City challenge: buildings and transportation

Ryan Chin:
Smart Cities


Streetline: Instrumented-Interconnected-Intelligent


Example: Streetline


Neonatal ICU: Instrumented-Interconnected-Intelligent


A ci t y i s
e s s e nt i a l l y a
s ys t e m of s e r vi c e
s ys t e ms —
t r a n s po r t a t i o n,
h e a l t hc a r e ,
p ubl i c s a f e t y a n d
e duc a t i on.

To e na b l e a
Sma r t e r Ci t y , I BM
i s wor k i ng t o
i mpr ove t h e
q ua l i t y &
12 IBM GMU External Relations 2012

e f f i c i e nc y of
IBM GMU External Relations 2012

Cities: land-population-energy-carbon

Carlo Ratti:
Senseable Cities


Four commandments for cities of the future: Eduardo Paes at TED2012


SC IOC as a Platform for Innovation



Identifies entrepreneurs developing
businesses aligning with our Smarter
Planet vision.

SmartCamp finalists raised more than
$50m and received significant press in
Exclusive Networking and Wall Street Journal, Forbes and
Bloomberg
Mentoring event
-

Healthcare SmartCamp kickstart - Miami - May 15, 2012
Apply by April 27th

SmarterCities SmartCamp kickstart - New York - May 24, 2012
Apply by May 3rd

North America Regional SmartCamp - Boston - June 20 & 21, 2012
Apply by May 25th

apply now at www.ibm.com/isv/startup/smartcamp
18

North America SmartCamp lead: Eric Apse, eapse@us.ibm.com
University Programs lead: Dawn Tew, dawn2@us.ibm.com

IBM University Programs:
What We Do: The “6 R’s” (not to be confused with 3 R’s)

1. Research
Research awards focus on grand challenge problems and big bets
https://www.ibm.com/developerworks/university/research

2. Readiness
Access to IBM tools, methods, and course materials to develop skills
https://www.ibm.com/developerworks/university/academicinitiative

3. Recruiting
Internships and full-time positions working to build a smarter planet
http://www.ibm.com/jobs

4. Revenue
Improve performance, the university as a complex enterprise (city within city)
http://www.ibm.com/services/us/gbs/bus/html/bcs_education.html

5. Responsibility
Community service provides access to IBMers expertise/resources
http://www.ibm.com/ibm/ibmgives/

6. Regions
Regional innovation ecosystems – incubators, entrepreneurship, jobs
http://www.ibm.com/ibm/governmentalprograms/innovissue.html


What are the benefits of top-ranked universities?
% WW GDP and % WW Top-500-Universities
9

Japan
8

7 y = 0,7489x + 0,3534
R² = 0,719 China
6 Germany

5
France

4 United Kingdom
Italy
%
G
D
o
b
P
a
g
l

3
Russia Brazil Spain
Canada
2 India
Mexico South Korea Australia
Turkey Netherlands
1
Sweden

0
0 1 2 3 4 5 6 7 8 9

% top 500 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.”


Regional Competitiveness and U-BEEs:
Where imagined possible worlds become observable real worlds
http://www.service-science.info/archives/1056

novations Nation
niversities/ “The future is already
State/Province here (at universities),
egions City/Region
culus (Cambridge/UK)
For-profits
it is just not evenly
ysics (Cambridge/UK) U-BEE
mputer Science (Columbia/NY) distributed.”
rosoft (Harvard/WA) Job Creator/Sustainer
hoo (Stanford/CA) Hospital
Cultural & University
ogle (Stanford/CA) Medical
Conference College
ebook (Harvard/CA) Research
Hotels K-12
“The best way to
Non-profits Worker
(professional )
Family
(household)
predict the future
is to (inspire the next
generation of students
to) build it better.”

U-BEEs = University-Based Entrepreneurial Ecosystems, City Within City

Up-Skill = New Venture = Graduates with
Smarter Planet skills
= High-Growth
Cycle = Acquisition = IBMer moving from
Acquisition/
New IBM BU
mature BU to acquisition
(Growing)
= IBMer moving into
IBMer on Campus role
(help create graduates = High-Productivity/
University-Region1 with Smarter-Planet skills, Mature IBM BU
help create Smarter Planet
oriented new ventures; (Shrinking)
Refresh skills

University-Region2
IBM


Digital Immigrant vs Digital Native

Born: 1988 Born: 2012
Graduated College: 2011 Enters College: 2030


2030 Transportation: Self-driving cars

Steve Mahan:
Test “Driver”


2030 Water


2030 Manufacturing

Ryan Chin:
Urban Mobility


2030 Energy


2030 ICT


Example: Leading Through Connections with…
Universities Collaborate with IBM Research to Design
Watson for the Grand Challenge of Jeopardy !

Assisted in the development of the Open Pioneered an online natural language
Advancement of Question-Answering question answering system called START,
Initiative (OAQA) architecture and which provided the ability to answer questions
methodology with high precision using information from
semi-structured and structured information
repositories

 Provided technological advancement
enabling a computing system to remember the Worked to extend the
full interaction, rather than treating every Worked on a visualization component to capabilities of Watson, with a
question like the first one - simulating a real visually explain to external audiences the focus on extensive common
dialogue massively parallel analytics skills it takes for sense knowledge
the Watson computing system to break down
a question and formulate a rapid and accurate
response to rival a human brain

Explored advanced machine learning
techniques along with rich text
representations based on syntactic and
Focused on large-scale
semantic structures for the Watson’s Worked on information information extraction,
optimization
retrieval and text search parsing, and knowledge
technologies inference technologies

http://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html

31

2030 Buildings: Recycled to be stronger, safer, cleaner

China Broad Group:
30 Stories in 15 Days


2030 Retail & Hospitality


2030 Finance & Business


2030 Health


2030 Education: Watch one, do one, teach one…


2030 Government

Four measures

 Innovativeness

 Equity
– Improve
weakest
link

 Sustainability

 Resiliency


2030 and Beyond…. Government, Health, Education, Finance, etc.


A Framework for Global Civil Society

 Daniel Patrick Moynihan said nearly 50 years ago: "If you want to
build a world class city, build a great university and wait 200
years." His insight is true today – except 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.
– John Sexton, President NYU


IBM Almaden Research Center, Silicon Valley/San Jose, CA


In Conclusion: Two Books To Help Us All Prepare For Change


Thank-You! Questions?

“Instrumented, Interconnected, Intelligent – Let’s build a Smarter Planet.” – IBM
“If we are going to build a smarter planet, let’s start by building smarter cities” – CityForward.org
“Universities are major employers in cities and key to urban sustainability.” – Coalition of USU
“Cities learning from cities learning from cities.” – Fundacion Metropoli
“The future is already here… It is just not evenly distributed.” – Gibson
“The best way to predict the future is to create it/invent it.” – Moliere/Kay
“Real-world problems may not/refuse to respect discipline boundaries.” – Popper/Spohrer
“Today’s problems may come from yesterday’s solutions.” – Senge
“History is a race between education and catastrophe.” – H.G. Wells
“The future is born in universities.” – Kurilov
“Think global, act local.” – Geddes

Dr. James (“Jim”) C. Spohrer
Innovation Champion &
Director, IBM University Programs worldwide accelerating regional development (IBM UPward)
spohrer@us.ibm.com


What improves Quality-of-Life? Service System Innovations
* = US Labor % in 2009.

A. Systems that focus on flow of things that humans need (~15%*)
1. Transportation & supply chain 2/7/4 0/19/0

2. Water & waste recycling/Climate & Environment 2/1/1
3. Food & products manufacturing 7/6/1
4. Energy & electricity grid/Clean Tech 1/1/0
5. Information and Communication Technologies (ICT access)5/17/27
B. Systems that focus on human activity and development (~70%*)
6. Buildings & construction (smart spaces) (5%*) 1/0/2
7. Retail & hospitality/Media & entertainment/Tourism & sports (23%*)24/24/1
8. Banking & finance/Business & consulting (wealthy) (21%*) 7/10/3
9. Healthcare & family life (healthy) (10%*) 2/20/24
5/2/2
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) 3/3/1
12. States/regions & commercial development opportunities/investments (sales tax) 0/0/0
13. Nations/NGOs & citizens rights/rules/incentives/policies/laws (income tax) 1/2/2
Quality of Life = Quality of Service + Quality of Jobs + Quality of Investment-Opportunities
“61 Service Design 2010 (Japan) / 75 Service Marketing 2010 (Portugal)/78 Service-Oriented Computing 2010 (US)”


T-shaped professionals
depth & breadth

Many cultures
Many disciplines
Many systems
(understanding & communications)

BREADTH

Deep in one discipline

Deep in one system
Deep in one culture
DEPTH

(analytic thinking & problem solving)

44

Systems-Disciplines Framework: Depth & Breadth
systems Systems that focus on flows of things Systems that support people’s activities Systems that govern
transportation & ICT & retail & healthcare
food & education city state nation
disciplines supply chain water & energy
products & electricity
cloud building & hospitality banking & family
&work secure scale laws
waste construction & finance
behavioral sciences
Customer
stakeholders

e.g., marketing

Provider management sciences
e.g., operations
Observe Stakeholders (As-Is)
political sciences
Authority
e.g., public policy
learning sciences
Competitors e.g., game theory
and strategy
cognitive sciences
People
e.g., psychology
resources

system sciences
Technology
e.g., industrial eng.
information sciences
Observe Resource Access (As-Is)
Information
e.g., computer sci
organization sciences
Organizations
e.g., knowledge mgmt

History social sciences
change

e.g., econ & law
(Data Analytics)
decision sciences
Imagine Possibilities (Has-Been & Might-Become)
Future e.g., stats & design
(Roadmap)
run professions
Run
e.g., knowledge worker
Transform
value

(Copy)
transform professions
e.g., consultant
Realize Value (To-Be)
Innovate innovate professions
(Invent)
e.g., entrepreneur


The New Normal: Smarter Systems

Service Systems: Stakeholders & Resources
1. People
2. Technology
3. Shared Information
4. Organizations
Computational System connected by win-win value propositions
Smarter Technology Smarter Buildings, Universities, Cities
Requires investment roadmap Requires investment roadmap

University: Four Missions
Nation

 Knowledge State/Province
– 1. Transfer (Teaching) City/Metro
For-profits U-BEE
– 2. Creation (Research)
Job Creator/Sustainer
– 3. Application (Benefits) Cultural & University
Hospital
Medical
Conference College
Research
• Commerce/Entrepreneurship Hotels K-12

• Governance/Policymaking
Worker Family
– 4. Re-Integration (Challenge) Non-profits (professional ) (household)

• Innovativeness, Equity
• Sustainability, Resilience

 Nested, Networked Holistic Service Systems
– Flows
Third Mission (Apply to Create Value)
– Development is about U-BEEs =
– Governance University-Based
Entrepreneurial Ecosystems


Economic Shift in National Economies
World’s Large Labor Forces US shift to service jobs
A = Agriculture, G = Goods, S = Service
2010
2010

Nation Labor
% WW
A
%
G
%
S
%
40yr Service
Growth (A) Agriculture:
Value from
China 25.7 49 22 29 142%
harvesting nature

India 14.4 60 17 23 35%
(G) Goods:
U.S. 5.1 1 23 76 23% Value from
making products
Indonesia 3.5 45 16 39 34%
(S) Service:
Brazil 3.0 20 14 Daryl Pereira/Sunnyvale/IBM@IBMUS,
66 61% Value from
IT augmented workers in smarter systems
Russia 2.4 10 21 69 64% that create benefits for customers
and sustainably improve quality of life.
Japan 2.2 5 28 67 45%

Nigeria 1.6 70 10 20 19%

Bangladesh 2.1 63 11 26 37%

Germany 1.4 3 33 64 42%

NationMaster.com, International Labor Organization
Note: Pakistan, Vietnam, and Mexico now larger LF than Germany


Growth of Service Revenue at IBM
2010 Pretax Income Mix Revenue Growth by Segment
SYSTEMS
(AND FINANCING)

SOFTWARE

17% Services
44%

Software
39% Systems

SERVICES

IBM Annual Reports
What do IBM Service Professionals Do? Run IT & enterprise systems for customers,
help Transform customer processes to best practices, and Innovate with customers.

California Human Development Report 2011:
Measuring quality-of-life….

http://www.measureofamerica.org/docs/APortraitOfCA.pdf

Smarter City Intelligent Operations Center (SC IOC)


Measuring Impact

 SSME: IBM Icon of Progress & IBM Research Outstanding Accomplishment
– Internal 10x return: CBM, IDG, SDM Pricing & Costing, BIW COBRA, SIMPLE, IoFT, Fringe, VCR
• Key was tools to model customers & IBM better
• Also tools to shift routine physical, mental, interactional & identify synergistic new ventures
• Alignment with Smarter Planet & Analytics (instrumented, interconnected, intelligent)
• Alignment with Smarter Cities, Smarter Campus, Smarter Buildings (Holistic Service Systems)
– External: More than $1B in national investments in Service Innovation activities
– External: Increase conferences, journals, and publications
– External: Service Science SIGs in Professional Associations
– External: Course & Program Guidelines for T-shaped Professionals, 500+ institutions
– External: National Service Science Institutions, Books & Case Studies (Open Services Innovation)

 Service Research, a Portfolio Approach
– 1. Improve existing offerings (value propositions that can move the needle on KPI’s)
– 2. Create new offerings (for old and new customers)
– 3. Improve outcomes insourcing, outsourcing, acquisitions, divestitures (interconnect-fission-fusion)
– 4. For all three of the above, improve customer/partner capabilities (ratchet each other up)
– 5. For all four of the above, increase patents and service IP assets (some donated to open forums)
– 6. For all five of the above, increase publications and body-of-knowledge (professional associations)


Who I am (http://www.service-science.info/archives/2233)
 Director IBM Global University Programs since 2009
– Global team works with 5000 university world wide (http://www.ibm.com/university)
– 6 R’s: Research (Awards), Readiness (Skills), Recruiting, Revenue, Responsibility, Regions
– Transform “IBM on Campus” brand awareness (“Smarter Planet/Smarter Cities”)
– Create “Urban Service System” Research Centers & U-BEEs
 Founding Director of IBM's first Service Research group from 2003-2009
– Almaden Research Center, San Jose, CA
– 10x ROI with four IBM outstanding and eleven accomplishment awards
– Improve existing offerings, create new, portfolio synergies, partners, patents, publications
– I know/work with service research pioneers from many academic disciplines
• I advocate for Service Science, Management, Engineering, and Design (SSME+D)
– Short-term: Curriculum (T-shaped people, deep in an existing discipline)
– Long-term: New transdiscipline and profession (awaiting CAD tool)
• I advocate for ISSIP (“one of the founding fathers”)
• Co-editor of the “Handbook of Service Science” (Springer 2010)
 Other background (late 90’s and before)
– Founding CTO of IBM’s Venture Capital Relations group in Silicon Valley
– Apple Computer’s (Distinguished Engineer Scientist and Technologist) award (90’s)
– Ph.D. Computer Science/Artificial Intelligence from Yale University (80’s)
– B.S. in Physics from MIT (70’s)


What is the future? We can imagine many possibilities…

Kurzweilai.net

Ibm 101 smarter planet and universities 20121011 v1

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