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IBM University Programs (IBM UP)


        Service Science: Smarter Planet & Big Data




                    Working Together to Build a Smarter Planet


Dr. Jim Spohrer, spohrer@us.ibm.com
Innovation Champion and Director IBM UPward
University Programs worldwide, accelerating regional development
IESS 1.3 Porto, Portugal February 7, 2013
© IBM 2013




                                                                                © 2013 IBM Corporation
Today’s Talk: What I am working on

     Surveys: Five short ISSIP.org
       – Please email spohrer@us.ibm.com                                                          IBM Smarter Planet


     Certification: T-Shaped Service Innovators
       – 100 questions

     Tool: Simple Model of Service Ecology
       – ~20 billion service system entities
       – ~20 main types of service system entities
       – Flows of people, money, organizations, etc.                                            Nano-Bio-Info-Cogno

     Future Smarter Service Systems
       – By sector and quality-of-life
       – Universities, cities, businesses
                                                                                         IBM SSME Centennial Icon of Progress

2           IBM University Programs worldwide, accelerating regional development (IBM UPward)             © 2013 BM Corporation
ISSIP.org Surveys


   Professional Development: Societies with Service SIGs

   Research: Research Centers & Service Innovation

   Education: Service Science Related Courses & Degrees

   Practice: Business Service Innovation Methods & Hiring T-shapes

   Policymaking: Service Exports & Innovation Policies




          IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Professional Societies




                                                         http://service-science.info/archives/1982
1.   AMA SERVSIG       9.    Service Design Network
2.   INFORMS Service   10.   AISNET SIG Service
     Science Section   11.   IEEE SOSE
3.   TSIA              12.   ISSS Natural and Service
4.   POMS                    Systems
5.   AHFE HSSE         13.   INCOSE SeBOK
6.   ITSMFI            14.   IIE for Manufacturing and
7.   ACM SoC                 Service Systems
8.   SRII              15.   IAMOT
9.   PICMET            16.   For more check URL ->
ISSIP (pronounced I-ZIP)




                                                        http://service-science.info/archives/1982
1. Growth in service
2. Bridge many existing
   professional sociteties        BREADTH
  •   ISSIP supports




                                        DEPTH
      their conferences
  •   ISSIP contributes to
      their publications
3. Interconnected nature of    T-shaped professionals
   value co-creation in         with depth & breadth
   modern service systems
   (tech, biz, social, etc.)
Definitions
Service is the application of
     knowledge for mutual             (A) Agriculture:
     benefits                         Value from
                                      harvesting nature
     (value co-creation logic).
                                                          (M) Manufacturing:
                                                          Value from
Service innovations scale the                             making products
                                                                                      (S) Service:
     benefits of new knowledge,                                                            Value from
     globally, rapidly…                                   T-shaped professionals in smarter systems
                                                              that co-create benefits with customers
                                                               and sustainably improve quality of life.


Service innovators are often
     “T-shaped” professionals
     with depth & breadth of                         (% of Jobs in USA)
     knowledge, and the ability
                                        Value Co-Creation Logic:     :
     to span boundaries and
     rapidly synthesize diverse   Re-thinking Provider-Customer Interactions
                                        From: Agriculture, Manufacturing, Service
     perspectives.                To: Physical, Cognitive, Social Work/Risk/Info Sharing
Our Mission

Promote service
innovations for our
interconnected
world.
Link service innovators
through their stories
Bridge & celebrate diverse
existing professional associations.
Our Objectives

1. Professional
   Development
2. Education
3. Research
4. Practice
5. Policy         Many possible configurations
                      of service innovations
                   in our interconnected world
Coverage

1. Disciplines
2. Sectors
3. Regions


Examples:
  Jim <CS, Education, USA>
  Lou <HFS, Health, USA>
T-shaped Professionals

Depth & Breadth                          Many disciplines
                                          Many sectors
  Teamwork ready                          Many regions
  Trusted advisors           (broad understanding & communications skills )


  Professional Development




                                            Discipline: Deep at least one




                                                                                                           Region: Deep in at least one
                                                                            Sector: Deep in at least one
Span 3 career dimensions
  Discipline (Education/Research)
  Sector (Practice/Research)
  Region (Policy/Culture/Levels)
Digital Immigrant vs Digital Native




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




11         IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
2030 Transportation: Self-driving cars




     Steve Mahan:
     Test “Driver”

12            IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
2030 Water




13       IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
2030 Manufacturing
                                    Baxter: Building the Future




      Ryan Chin:
     Urban Mobility
                                        Maker-Bot: Replicator 2
14        IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
2030 Energy




15       IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
2030 ICT




16         IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
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

  17                        IBM University Programs worldwide, accelerating regional development (IBM UPward)                  © 2013 BM Corporation
2030 Buildings: Recycled to be stronger, safer, cleaner

  China Broad Group:
 30 Stories in 15 Days




18            IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
2030 Retail & Hospitality




19        IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
2030 Finance & Business




20       IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
2030 Health




21       IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
2030 Education: Watch one, do one, teach one…




22       IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
2030 Government

Four measures


      Innovativeness

      Equity
        – Improve
          weakest
          link


      Sustainability

      Resiliency



23              IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Competitive Parity – Achieved.


      The NFL has spent the last two
       decades touting its parity—the
       idea that any team can win on any
       given Sunday (or Monday or
       Thursday). But this year, parity
       has truly run wild.

      … here's the wackiest thing:
       Through six weeks, 11 of the
       NFL's 32 teams are 3-3. The
       Journal asked the statistical
       gurus of Massey-Peabody
       Analytics to run a coin-flip
       simulation…



24            IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
2030 and Beyond…. Government, Health, Education, Finance, etc.




25         IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
What improves Quality-of-Life? Service System Innovations
                                                                                                          * = US Labor % in 2009.

     A. Systems that focus on flow of things that humans need (~15%*)
          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)”

26                    IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
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
    27                         IBM University Programs worldwide, accelerating regional development (IBM UPward)                     © 2013 BM Corporation
We Are All Part Of Nested, Networked Service Systems




                                                                                             Matryoska dolls:
                                                                                             Origin Japanese




28       IBM University Programs worldwide, accelerating regional development (IBM UPward)       © 2013 BM Corporation
I am nested in at least 10 systems

Level                 AKA                           ~No. People                   ~No. Entities       Example
0. Individual         Person                        1                             10,000,000,000      Jim
1. Family             Household                     10                            1,000,000,000       Spohrer’s
2.Neighborhood        Street                        100                           100,000,000         Kensington
3. Community          Block                         1000                          10,000,000          Bird Land
4. Urban-Zone         District                      10,000                        1,000,000           SC Unified
5. Urban-Center       City                          100,0000                      100,000             Santa Clara
6.Metro-Region        County                        1,000,000                     10,000              SC County
7. State              Province                      10,000,000                    1,000               CA
8. Nation             Country                       100,000,000                   100                 USA
9. Continent          Union                         1,000,000,000                 10                  NAFTA
10. Planet            World                         10,000,000,000                1                   UN

29                IBM University Programs worldwide, accelerating regional development (IBM UPward)        © 2013 BM Corporation
Universities Worldwide Accelerating Regional Development




     “When we combined the impact of Harvard’s direct spending on payroll, purchasing and construction –
     the indirect impact of University spending – and the direct and indirect impact of off-campus spending by
     Harvard students – we can estimate that Harvard directly and indirectly accounted for nearly $4.8 billion
     in economic activity in the Boston area in fiscal year 2008, and more than 44,000 jobs.”

30                  IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
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
31                      IBM University Programs worldwide, accelerating regional development (IBM UPward)             © 2013 BM Corporation
What are the benefits of more education? Of higher skills?




                    …But it can be costly, American student loan debt is over $900M

32        IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Four Missions


      Knowledge Transfer (Teaching)

      Knowledge Creation (Research)

      Knowledge Application (Entrepreneurship)

      Knowledge Integration (Bridge Silos)




33           IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Big Business: Forbes Global 2000

      Totals: Largest Publically Traded Businesses
         – $36 trillion in revenues (45% of 2011 WW GDP)
         – $2.64 trillion in profits
         – $149 trillion in assets
         – $37 trillion in market value
         – Employ 83 million people worldwide (~1% of 2011 WW Population)

      Sectors:
         – Financial (478), Oil & Gas (131)

      Nations
         – US (524), Japan(258)




34               IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
35   IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
36   IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
37   IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
38   IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Portugal (0.12/0.3/0.6)




39             IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
United States (4.5/26/30)




40           IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Denmark (0.08/0.5/0.8)




41            IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Sweden (0.1/1.25/2.2)




42            IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
More than 40% of                                                                                               New Era in IBM’s Leadership
IBM’s workforce
conducts business
away from an office


                      IBM has
                      ~425,000
                                   24% of IBM’s revenue    2012 Financials
                      employees
                      worldwide    in Growth Market       Revenue - $ 104.5B
                                   countries; growing at  Net Income - $ 17.6B
IBM operates in 170                7% ( @cc) in 2012      EPS - $ 15.25 (10 yrs of
countries around the globe                                                 EPS d/digit growth)
Acquisitions contribute
                                                                          Net Cash - $18.2B
significantly to IBM’s growth ;
~120 acquisitions in last decade


                                                                                                              IBM’s Initiatives for Growth
                                     Number 1 in patent
                                     generation for 20
100 Years of Business &              consecutive years ;
Innovation in 2011                   6,478 US patents
                                     awarded in 2012                    The Smartest Machine On Earth

                                                      10 time winner of
                                                      the President’s           5 Nobel Laureates
                                                      National Medal of
                                                      Technology &
                                                      Innovation – latest
                                                      for LASIK laser
                                                      refractive surgical
                                                      techniques
  43                      IBM University Programs worldwide, accelerating regional development (IBM UPward)           © 2013 BM Corporation
What’s UP with IBM? University Programs




44       IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Most people say, “IBM makes computers”




45       IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Those in-the-know say, “IBM is helping to build a Smarter Planet…”




46          IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
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




47                   IBM University Programs worldwide, accelerating regional development (IBM UPward)         © 2013 BM Corporation
City challenge: buildings and transportation




     Ryan Chin:
     Smart Cities




48             IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Streetline: Instrumented-Interconnected-Intelligent




49        IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Example: Streetline




50        IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Neonatal ICU: Instrumented-Interconnected-Intelligent




51        IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
A city is essentially a
                                                                                    system of service
                                                                                    systems—transportation,
                                                                                    healthcare, public safety
                                                                                    and education.

                                                                                    To enable a Smarter
                                                                                    City, IBM is working to
                                                                                    improve the quality &
                                                                                    efficiency of service
                                                                                    systems and how they
                                                                                    operate and function.

 52   IBM GMU External Relations 2012
IBM GMU                   IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Cities: land-population-energy-carbon




   Carlo Ratti:
 Senseable Cities




53            IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
54   IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
55   IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Four commandments for cities of the future: Eduardo Paes at TED2012




56         IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
SC IOC as a Platform for Innovation




57        IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation

                                                                              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

                                                                                   in
                 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
                                       58




        North America SmartCamp lead: Eric Apse, eapse@us.ibm.com
        University Programs lead: Dawn Tew, dawn2@us.ibm.com
58           IBM University Programs worldwide, accelerating regional development (IBM UPward)        © 2013 BM Corporation
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




59                     IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
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



60           IBM University Programs worldwide, accelerating regional development (IBM UPward)        © 2013 BM Corporation
A Framework for Global Civil Society




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




61            IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
~14B                             Evolution of Natural Systems & Service Systems                                                   ~10K
Big Bang                                                                                                                            Cities
  (Natural                     Unraveling the mystery of evolving hierarchical-complexity in new populations…                   (Human-Made
 Time
   World)                    To discover the world’s architectures and mechanisms for computing non-zero-sum                       World)




                                                                                                                                     writing
                                                                                                                               (symbols and scribes,
                                                                                                                                  stored memory
                                                                                                                                  and knowledge)

                                                                                                                                  written laws




                        ECOLOGY
                                                                                                                                 (governance and
                                                                                                                                  stored control)




  sun (energy)                                                                                                                       money
     earth                                                                                                                         (governed
 (molecules &                                                                                                                 transportable value
stored energy)                                                                                                                   stored value,
                                                                                                                              “economic energy”)
    bacteria
(single-cell life)


                                 bees (social
  sponges                                                                                              transistor
                              division-of-labor)
(multi-cell life)                                                                                       (routine
                                                                                                     cognitive work)              universities
                                                                                                                              (knowledge workers
clams (neurons)                                                                                                                printing press (books
  62                     IBM University Programs worldwide, accelerating regional development (IBM UPward)              © 2013 BM Corporation
trilobites (brains)   200M                                                                                             60      steam engine (work)
ISSIP.org (pronounced I-ZIP)


      Five Short Surveys
        – Societies
        – Centers
        – Courses
        – Methods
        – Policies

      HSSE-2014
        – July 2014
        – Krakow, Poland

      Email:
       spohrer@us.ibm.com

63           IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
IBM Almaden Research Center, Silicon Valley/San Jose, CA




64       IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Thank-You! Questions?




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

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

 65                      IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
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)


66
66              IBM University Programs worldwide, accelerating regional development (IBM UPward)                                                           © 2013 BM Corporation
Systems-Disciplines Framework: Depth & Breadth
               systems                Systems that focus on flows of things              Systems that support people’s activities           Systems that govern
                                   transportation &                            ICT &               retail &            healthcare
                                                         food &                                                                   education city   state nation
    disciplines                    supply chain water &            energy
                                                         products & electricity
                                                                               cloud   building & hospitality banking & family
                                                                                                                                  &work     secure scale laws
                                                  waste                                construction           & finance
                      behavioral sciences
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


         67                         IBM University Programs worldwide, accelerating regional development (IBM UPward)                 © 2013 BM Corporation
The New Normal: Smarter Systems




                                                    Service Systems: Stakeholders & Resources
                                                    1. People
                                                    2. Technology
                                                    3. Shared Information
                                                    4. Organizations
    Computational System                                  connected by win-win value propositions
     Smarter Technology                                    Smarter Buildings, Universities, Cities
 Requires investment roadmap                                 Requires investment roadmap
68           IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
In Conclusion: Two Books To Help Us All Prepare For Change




69         IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
University: Four Missions
                                                                                Nation

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

 70                IBM University Programs worldwide, accelerating regional development (IBM UPward)                      © 2013 BM Corporation
Universities Worldwide Accelerating Regional Development




     “When we combined the impact of Harvard’s direct spending on payroll, purchasing and construction –
     the indirect impact of University spending – and the direct and indirect impact of off-campus spending by
     Harvard students – we can estimate that Harvard directly and indirectly accounted for nearly $4.8 billion
     in economic activity in the Boston area in fiscal year 2008, and more than 44,000 jobs.”

71                  IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Economic Shift in National Economies
     World’s Large Labor Forces                                                              US shift to service jobs
             A = Agriculture, G = Goods, S = Service
                                                                                                                                               2010
                                                                       2010

      Nation           Labor
                       % 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




72                            IBM University Programs worldwide, accelerating regional development (IBM UPward)                      © 2013 BM Corporation
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.
73               IBM University Programs worldwide, accelerating regional development (IBM UPward)           © 2013 BM Corporation
California Human Development Report 2011:
Measuring quality-of-life….




                                                                                                               http://www.measureofamerica.org/docs/APortraitOfCA.pdf
74         IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Smarter City Intelligent Operations Center (SC IOC)




75        IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
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)



76                IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
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)


77               IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
What is the future? We can imagine many possibilities…




            Kurzweilai.net
78        IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
Many cultures
                                                Many disciplines
                                                 Many systems
                                           (understanding & communications)




                                                                          Deep in one discipline

                                                                                                   Deep in one system
                                                    Deep in one culture




79
79   IBM University Programs worldwide, accelerating regional development (IBM UPward)                                  © 2013 BM Corporation
Outline


   IBM: 2015 Roadmap

   IBM UP: 2013 Priorities




          IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
IBM: 2015 Roadmap (Revenue Growth)




         IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation
IBM UP: 2013 Priorities (Adaptive)




                                                                                                     Research


                                                                                                                Readiness


                                                                                                                            Recruiting


                                                                                                                                           Revenue


                                                                                                                                                     Responsibility


                                                                                                                                                                      Regions
PRIORITY AREA


Smarter Cities and Service Innovation
- ENTREPRENEURSHIP (Smart Camps & GEP, U-BEEs, Students for a Smarter Planet, etc.)
- 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)

Cloud & Analytics, Cyber Security & Social Biz
- WATSON DEEP-QA (Analytics Skills, Massive Analytics, Stream Computing)
- BIG DATA (High Performance Computing, Grand Challenges, Boost University Rankings)
- SHARED SERVICE (On-line education, IBM Cloud Academy, IBM Academic Cloud, VCL)

Growth Markets
- SKILLS GAP (2015 Roadmap requires special focus and emphasis on ramping up global talent)
- 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)

Collaborative Innovation Centers & Global Entrepreneurs
-- STUDENTS FOR A SMARTER PLANET (Millennials, Social Media, Entrepreneurs)
-- 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.)

Events & Ecosystem Alignment
- BIG EVENTS (Social Media, Students for a Smarter Planet - SFSP, Entrepreneurs and U-BEE’s, etc.)
- EXTERNAL STAKEHOLDERS (Professional Associations, National Academies, Science Foundation)
- INTERNAL STAKEHOLDERS (S&D, GBS, GTS, STG, SWG, HR, CC&CA, IDR, VC, etc.)

Awards Programs
- 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 University Programs worldwide, accelerating regional development (IBM UPward)                                              © 2013 BM Corporation
Test


  Test
  Tets
  Test




          IBM University Programs worldwide, accelerating regional development (IBM UPward)   © 2013 BM Corporation

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Portugal iess 20130207 v3

  • 1. IBM University Programs (IBM UP) Service Science: Smarter Planet & Big Data Working Together to Build a Smarter Planet Dr. Jim Spohrer, spohrer@us.ibm.com Innovation Champion and Director IBM UPward University Programs worldwide, accelerating regional development IESS 1.3 Porto, Portugal February 7, 2013 © IBM 2013 © 2013 IBM Corporation
  • 2. Today’s Talk: What I am working on  Surveys: Five short ISSIP.org – Please email spohrer@us.ibm.com IBM Smarter Planet  Certification: T-Shaped Service Innovators – 100 questions  Tool: Simple Model of Service Ecology – ~20 billion service system entities – ~20 main types of service system entities – Flows of people, money, organizations, etc. Nano-Bio-Info-Cogno  Future Smarter Service Systems – By sector and quality-of-life – Universities, cities, businesses IBM SSME Centennial Icon of Progress 2 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 3. ISSIP.org Surveys  Professional Development: Societies with Service SIGs  Research: Research Centers & Service Innovation  Education: Service Science Related Courses & Degrees  Practice: Business Service Innovation Methods & Hiring T-shapes  Policymaking: Service Exports & Innovation Policies IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 4. Professional Societies http://service-science.info/archives/1982 1. AMA SERVSIG 9. Service Design Network 2. INFORMS Service 10. AISNET SIG Service Science Section 11. IEEE SOSE 3. TSIA 12. ISSS Natural and Service 4. POMS Systems 5. AHFE HSSE 13. INCOSE SeBOK 6. ITSMFI 14. IIE for Manufacturing and 7. ACM SoC Service Systems 8. SRII 15. IAMOT 9. PICMET 16. For more check URL ->
  • 5. ISSIP (pronounced I-ZIP) http://service-science.info/archives/1982 1. Growth in service 2. Bridge many existing professional sociteties BREADTH • ISSIP supports DEPTH their conferences • ISSIP contributes to their publications 3. Interconnected nature of T-shaped professionals value co-creation in with depth & breadth modern service systems (tech, biz, social, etc.)
  • 6. Definitions Service is the application of knowledge for mutual (A) Agriculture: benefits Value from harvesting nature (value co-creation logic). (M) Manufacturing: Value from Service innovations scale the making products (S) Service: benefits of new knowledge, Value from globally, rapidly… T-shaped professionals in smarter systems that co-create benefits with customers and sustainably improve quality of life. Service innovators are often “T-shaped” professionals with depth & breadth of (% of Jobs in USA) knowledge, and the ability Value Co-Creation Logic: : to span boundaries and rapidly synthesize diverse Re-thinking Provider-Customer Interactions From: Agriculture, Manufacturing, Service perspectives. To: Physical, Cognitive, Social Work/Risk/Info Sharing
  • 7. Our Mission Promote service innovations for our interconnected world. Link service innovators through their stories Bridge & celebrate diverse existing professional associations.
  • 8. Our Objectives 1. Professional Development 2. Education 3. Research 4. Practice 5. Policy Many possible configurations of service innovations in our interconnected world
  • 9. Coverage 1. Disciplines 2. Sectors 3. Regions Examples: Jim <CS, Education, USA> Lou <HFS, Health, USA>
  • 10. T-shaped Professionals Depth & Breadth Many disciplines Many sectors Teamwork ready Many regions Trusted advisors (broad understanding & communications skills ) Professional Development Discipline: Deep at least one Region: Deep in at least one Sector: Deep in at least one Span 3 career dimensions Discipline (Education/Research) Sector (Practice/Research) Region (Policy/Culture/Levels)
  • 11. Digital Immigrant vs Digital Native Born: 1988 Born: 2012 Graduated College: 2011 Enters College: 2030 11 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 12. 2030 Transportation: Self-driving cars Steve Mahan: Test “Driver” 12 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 13. 2030 Water 13 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 14. 2030 Manufacturing Baxter: Building the Future Ryan Chin: Urban Mobility Maker-Bot: Replicator 2 14 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 15. 2030 Energy 15 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 16. 2030 ICT 16 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 17. 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 17 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 18. 2030 Buildings: Recycled to be stronger, safer, cleaner China Broad Group: 30 Stories in 15 Days 18 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 19. 2030 Retail & Hospitality 19 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 20. 2030 Finance & Business 20 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 21. 2030 Health 21 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 22. 2030 Education: Watch one, do one, teach one… 22 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 23. 2030 Government Four measures  Innovativeness  Equity – Improve weakest link  Sustainability  Resiliency 23 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 24. Competitive Parity – Achieved.  The NFL has spent the last two decades touting its parity—the idea that any team can win on any given Sunday (or Monday or Thursday). But this year, parity has truly run wild.  … here's the wackiest thing: Through six weeks, 11 of the NFL's 32 teams are 3-3. The Journal asked the statistical gurus of Massey-Peabody Analytics to run a coin-flip simulation… 24 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 25. 2030 and Beyond…. Government, Health, Education, Finance, etc. 25 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 26. 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)” 26 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 27. 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 27 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 28. We Are All Part Of Nested, Networked Service Systems Matryoska dolls: Origin Japanese 28 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 29. I am nested in at least 10 systems Level AKA ~No. People ~No. Entities Example 0. Individual Person 1 10,000,000,000 Jim 1. Family Household 10 1,000,000,000 Spohrer’s 2.Neighborhood Street 100 100,000,000 Kensington 3. Community Block 1000 10,000,000 Bird Land 4. Urban-Zone District 10,000 1,000,000 SC Unified 5. Urban-Center City 100,0000 100,000 Santa Clara 6.Metro-Region County 1,000,000 10,000 SC County 7. State Province 10,000,000 1,000 CA 8. Nation Country 100,000,000 100 USA 9. Continent Union 1,000,000,000 10 NAFTA 10. Planet World 10,000,000,000 1 UN 29 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 30. 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.” 30 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 31. 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 31 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 32. What are the benefits of more education? Of higher skills? …But it can be costly, American student loan debt is over $900M 32 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 33. Four Missions  Knowledge Transfer (Teaching)  Knowledge Creation (Research)  Knowledge Application (Entrepreneurship)  Knowledge Integration (Bridge Silos) 33 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 34. Big Business: Forbes Global 2000  Totals: Largest Publically Traded Businesses – $36 trillion in revenues (45% of 2011 WW GDP) – $2.64 trillion in profits – $149 trillion in assets – $37 trillion in market value – Employ 83 million people worldwide (~1% of 2011 WW Population)  Sectors: – Financial (478), Oil & Gas (131)  Nations – US (524), Japan(258) 34 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 35. 35 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 36. 36 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 37. 37 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 38. 38 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 39. Portugal (0.12/0.3/0.6) 39 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 40. United States (4.5/26/30) 40 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 41. Denmark (0.08/0.5/0.8) 41 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 42. Sweden (0.1/1.25/2.2) 42 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 43. More than 40% of New Era in IBM’s Leadership IBM’s workforce conducts business away from an office IBM has ~425,000 24% of IBM’s revenue 2012 Financials employees worldwide in Growth Market  Revenue - $ 104.5B countries; growing at  Net Income - $ 17.6B IBM operates in 170 7% ( @cc) in 2012  EPS - $ 15.25 (10 yrs of countries around the globe EPS d/digit growth) Acquisitions contribute  Net Cash - $18.2B significantly to IBM’s growth ; ~120 acquisitions in last decade IBM’s Initiatives for Growth Number 1 in patent generation for 20 100 Years of Business & consecutive years ; Innovation in 2011 6,478 US patents awarded in 2012 The Smartest Machine On Earth 10 time winner of the President’s 5 Nobel Laureates National Medal of Technology & Innovation – latest for LASIK laser refractive surgical techniques 43 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 44. What’s UP with IBM? University Programs 44 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 45. Most people say, “IBM makes computers” 45 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 46. Those in-the-know say, “IBM is helping to build a Smarter Planet…” 46 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 47. 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 47 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 48. City challenge: buildings and transportation Ryan Chin: Smart Cities 48 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 49. Streetline: Instrumented-Interconnected-Intelligent 49 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 50. Example: Streetline 50 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 51. Neonatal ICU: Instrumented-Interconnected-Intelligent 51 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 52. A city is essentially a system of service systems—transportation, healthcare, public safety and education. To enable a Smarter City, IBM is working to improve the quality & efficiency of service systems and how they operate and function. 52 IBM GMU External Relations 2012 IBM GMU IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 53. Cities: land-population-energy-carbon Carlo Ratti: Senseable Cities 53 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 54. 54 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 55. 55 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 56. Four commandments for cities of the future: Eduardo Paes at TED2012 56 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 57. SC IOC as a Platform for Innovation 57 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 58. 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 in 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 58 North America SmartCamp lead: Eric Apse, eapse@us.ibm.com University Programs lead: Dawn Tew, dawn2@us.ibm.com 58 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 59. 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 59 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 60. 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 60 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 61. 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 61 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 62. ~14B Evolution of Natural Systems & Service Systems ~10K Big Bang Cities (Natural Unraveling the mystery of evolving hierarchical-complexity in new populations… (Human-Made Time World) To discover the world’s architectures and mechanisms for computing non-zero-sum World) writing (symbols and scribes, stored memory and knowledge) written laws ECOLOGY (governance and stored control) sun (energy) money earth (governed (molecules & transportable value stored energy) stored value, “economic energy”) bacteria (single-cell life) bees (social sponges transistor division-of-labor) (multi-cell life) (routine cognitive work) universities (knowledge workers clams (neurons) printing press (books 62 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation trilobites (brains) 200M 60 steam engine (work)
  • 63. ISSIP.org (pronounced I-ZIP)  Five Short Surveys – Societies – Centers – Courses – Methods – Policies  HSSE-2014 – July 2014 – Krakow, Poland  Email: spohrer@us.ibm.com 63 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 64. IBM Almaden Research Center, Silicon Valley/San Jose, CA 64 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 65. 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 65 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 66. 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) 66 66 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 67. 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 67 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 68. 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 68 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 69. In Conclusion: Two Books To Help Us All Prepare For Change 69 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 70. 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 70 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 71. 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.” 71 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 72. 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 72 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 73. 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. 73 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 74. California Human Development Report 2011: Measuring quality-of-life…. http://www.measureofamerica.org/docs/APortraitOfCA.pdf 74 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 75. Smarter City Intelligent Operations Center (SC IOC) 75 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 76. 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) 76 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 77. 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) 77 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 78. What is the future? We can imagine many possibilities… Kurzweilai.net 78 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 79. Many cultures Many disciplines Many systems (understanding & communications) Deep in one discipline Deep in one system Deep in one culture 79 79 IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 80. Outline  IBM: 2015 Roadmap  IBM UP: 2013 Priorities IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 81. IBM: 2015 Roadmap (Revenue Growth) IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 82. IBM UP: 2013 Priorities (Adaptive) Research Readiness Recruiting Revenue Responsibility Regions PRIORITY AREA Smarter Cities and Service Innovation - ENTREPRENEURSHIP (Smart Camps & GEP, U-BEEs, Students for a Smarter Planet, etc.) - 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) Cloud & Analytics, Cyber Security & Social Biz - WATSON DEEP-QA (Analytics Skills, Massive Analytics, Stream Computing) - BIG DATA (High Performance Computing, Grand Challenges, Boost University Rankings) - SHARED SERVICE (On-line education, IBM Cloud Academy, IBM Academic Cloud, VCL) Growth Markets - SKILLS GAP (2015 Roadmap requires special focus and emphasis on ramping up global talent) - 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) Collaborative Innovation Centers & Global Entrepreneurs -- STUDENTS FOR A SMARTER PLANET (Millennials, Social Media, Entrepreneurs) -- 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.) Events & Ecosystem Alignment - BIG EVENTS (Social Media, Students for a Smarter Planet - SFSP, Entrepreneurs and U-BEE’s, etc.) - EXTERNAL STAKEHOLDERS (Professional Associations, National Academies, Science Foundation) - INTERNAL STAKEHOLDERS (S&D, GBS, GTS, STG, SWG, HR, CC&CA, IDR, VC, etc.) Awards Programs - 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 University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation
  • 83. Test  Test  Tets  Test IBM University Programs worldwide, accelerating regional development (IBM UPward) © 2013 BM Corporation

Editor's Notes

  1. Reference content from this presentation as: Spohrer, JC (2013) Service Science: Smarter Planet &amp; Big Data. IESS 1.3 Conference, Porto, Portugal Feb 7 2013.
  2. Today ’s Talk NSF NBIC graphic – Converging Technology Service Science Handbook graphic All of the leading brands, be they corporations or universities, began as start-ups and grew… to maintain their leading status they need to innovate… apply knowledge to create great value for many. Today I want to talk to you about Innovation, including global corporations like IBM and Nations like the US, Denmark, and Sweden…. The context for the discussion is knowledge economics, and how knowledge gets applied to create value for others…. As the planet gets smarter, it will take less time for new knowledge to create value in the economy. I repeat, as the planet gets smarter it will take less time for new knowledge to create value in the economy. Service is defined as the application of knowledge to create value for others, so the science of service, service systems, and service innovation is key to creating a smarter planet, and using Big Data to make better decisions. Finally, I will talk about Smarter Regions, because where ever I travel in the world, this is the front and center topic, how to co-invest with others to create the infrastructure, skills, jobs, businesses, and institutions for the future, and it requires close collaboration of government, academia, business, and the social sector. A colleague of mine who recently visited Dubai for example, mentioned to me that one of the leaders in Dubai, said “My father road a camel, I drive a BMW, my children drive Land Rovers, their children will most likely drive Land Rovers, but their children, three generations out, may be back to riding camels when the oil &amp; gas run out….” Even if you are not worried about your region running out of a precision natural resource, you are probably worried about maintaining a growing stock of knowledge that ensures high skills &amp; high pay jobs for generations to come.” This is one reasons the universities, startups, and foundations are so important to the future of smarter regions.
  3. Yes, it is all connected, and it matters that it is all connected. More than two dozen professional associations and organizations ready to help…. For example, IIE 14,000 members, 75 countries Focus on productivity and quality of all industrial systems, not just manufacturing http://www.youtube.com/watch?v=sfm6GPxn9gI
  4. To introduce, ISSIP we will first have to understand the growth of service, which explains why so many disciplines and professional associations, have greatly increased their focus on service, service systems, and service platforms in the last ten years…. The International Society of Service Innovation Professionals (ISSIP.org) is a democratically-run non-profit organization . Individual and institutional members work to promote service innovations for business and society and to recognize and expand opportunities for service innovators.Within the last decade service innovation has become a focus of businesses and nations seeking ways to improve productivity, quality, compliance, sustainability, and other KPIs (Key Performance Indicators) of value co-creation between customers, providers, and other stakeholders.As a result, many existing professional associations have added service-science-related special interest groups or conference focus areas (e.g., INFORMS, AMA, AIS, ACM, IEEE, IIE, HFES, INCOSE, EPIC). ISSIP bridges these associations and supports their conferences and publications, linking members from academia, industry, government, and social sectors. Nearly two dozen professional associations with conferences and publications related to service, service innovation, service systems, etc. – but each from a different disciplinary or industry sector perspective.
  5. ISSIP embraces value co-creation logic (also known as service-dominant logic) as the foundational logic of service science and arts, and the basis of service innovations.
  6. Our mission is to “promote service innovations for our interconnected world.” Today ’s global environment depends on service system performance and outcomes. For example, in the United States the service segment of GDP is estimated at almost 80%. Yet the domain of service is typically a secondary focus at best for most organizations and nations. ISSIP exists to address this imbalance. Service is the application of knowledge and resources for the benefit of others, and sustainable service innovations co-elevate the capabilities of providers, customers, and all stakeholders. Service innovations become sustainable when they improve shared technology capabilities, people ’s skills, organizational governance, and inform shared goals, such as improving quality-of-life of individuals and effectiveness of institutions as platforms for working together to co-create value.
  7. All of our careers have many complex possible arrangements, pathways that lead to different possibilities, and ISSIP can help service innovators sort through the possibilities and find our what might be right for them, in part by listening to the stories of others. Our objectives are to “recognize service innovators who make significant contributions and expand opportunities across five areas, including…” 1. Professional Development (e.g., career paths) 2. Education (e.g., diverse life-long learning) 3. Research (e.g., open data sets and analytics) 4. Practice (e.g., technical standards and tools) 5. Policymaking (e.g., innovativeness, security, sustainability, resiliency of service systems.) Let ’s work together to define what “the new and improved service systems of tomorrow” should be. Please go to the website and sign up now to collaborate with service innovators from other professional associations, disciplines, industry sectors, societal sectors, cultures, and nations. http://www.issip.org Image URL: http://www.blogiversity.org/blogs/frankthetank/archive/2009/07/17/12-sided-rubix-cube-like-puzzle.aspx
  8. Nominate SIG and Chapter leaders Special Interest Groups Education &amp; Research Big Data &amp; Analytics Cyber Security Innovation Methods &amp; Tools Globalization Urban Service Systems And more… Chapters Germany Japan China And more… One Outcome of SIGs and Chapters - Books: Shorter: Business Expert (Demirkan &amp; Spohrer, Editors) Longer: Springer (Hefley &amp; Murphy, Editors) Nations: Springer (Kwan &amp; Spohrer, Editors) Governance: ISSIP By-Laws: http://www.issip.org/about/bylaws/
  9. Service Innovators are T-shaped professionals ready for teamwork. They have both depth and breadth, and are multi-dimensional. They have understanding and communication capabilities across many cultures, disciplines, and systems
  10. No wheels on suitcases… in 1988… When thinking about change…. It is useful to think in terms of two generations… What was the world like in 1988 What will the world be like in 2030 MIT Tuition fees 1988 ~10K by 2012 ~40K by 2030 ~100K http://en.wikipedia.org/wiki/College_tuition_in_the_United_States Photo recent college graduate: http://www.prlog.org/11878039-the-secrets-to-hiring-recent-college-graduates-edition.html Photo baby: http://images2.baby-connect.com/images/baby2.gif
  11. In the future, robots will drive most of the cars – faster, safer, and more economically than people can. Of course, the future is already here, it is just not well distributed. The state of Nevada was the first state to allow self-driving vehicles to legally drive on their roads, as of June 22, 2011. http://www.forbes.com/sites/alexknapp/2011/06/22/nevada-passes-law-authorizing-driverless-cars/ Headline: Robot Car Helps Blind Man Get a Taco March 29th, 2012 http://www.robotshop.com/blog/robot-car-helps-blind-man-get-a-taco-1564 Self-Driving Car Test – Steve Mahan
  12. Photo of tap water: http://aquatecuk.wordpress.com/2011/09/27/how-safe-%E2%80%98really%E2%80%99-is-our-tap-water-for-drinking/ Story http://www.usatoday.com/money/industries/environment/2011-03-03-1Apurewater03_CV_N.htm
  13. 3D printed clothing, dresses, shirts, pants, hats, shoes, etc. http://www.dezeen.com/2010/08/11/crystallization-by-iris-van-herpen-daniel-wright-and-mgx-by-materialise/ Imagine cars and other products, being part of local physical supply chains. Manufacturing as a local recycling and assembly service Headline: TEDx Boston, Ryan Chin Urban Mobility (July 28, 2009) http://tedxboston.org/speaker/chin Circular Economy: http://www.youtube.com/watch?v=zCRKvDyyHmI Circular Economy for China 10x productivity gains http://www.indigodev.com/Circular1.html
  14. One possible energy source is water to hydrogen and oxygen (via sun) and then back to water. Photos and stories: http://web.mit.edu/newsoffice/2011/artificial-leaf-0930.html http://www.rediff.com/business/slide-show/slide-show-1-how-an-artificial-leaf-can-solve-power-crisis/20110329.htm
  15. 2030 ICT or Information Communication Technology will be really smart phones… http://www.forbes.com/sites/greatspeculations/2012/09/07/ibms-watson-on-smartphones-will-lead-to-business-analytics-unchained/ IBM does continue to innovate in computing, technology but to build a Smarter Planet – what matters is both the computers and how those computers are used to create value for others. To demonstrate the new of age of Smarter Computing on a Smarter Planet IBM developed a demonstration project of using a the Watson Deep Question-Answering Technology to score higher than the world ’s best Jeopardy! players in an exhibition match on television game show Jeopardy! Imagine by 2030 the majority of people on the planet will have a smart phone that is like a cognitive bulldozer, smarter than watson in their pocket. For example, I have given teams of 3 students big data problems that took 3 students 3 months to analyze and report back to me on, that my smart phone will do for me in less than three minutes by 2030. Probably …. What will it mean when nearly everyone has access to smarter computing – this is one thing IBM is investigating the future of information technology on a Smarter Planet. Today just one of IBM Power 7 chips has more transistors that all the transistors in the world when I was born… “ Each core is capable of four-way simultaneous multithreading (SMT). The POWER7 has approximately 1.2 billion transistors and is 567 mm2 large fabricated on a 45 nm process.” And runs at between 3-4 Ghz. Puresystems are optimized personal clouds with self service application deployment – a range of businesses from day trading systems to small retail businesses…
  16. What most people don ’t know is IBM worked closed with 8 universities in order to develop Watson….
  17. In the future, robots will build and recycle whole buildings in a matter of hours. Already at Dongting lake in the Hunan Province in China, the Broad group has used prefab architecture to construct a 30 story building in 15 days (360 hours). When robots are used for construction and recycling, it will be even faster and more cost efficient. The building was stronger, safer, and more energy efficient than previous Broad group hotels. We often think of resiliency as the ability to recover very quickly, after a natural disaster or other external shock to a system. In the future resiliency will be more about rebuilding and recycling quickly to take advantage of newer and better materials, and ways of doing things. The external shocks to the system will more often than not be new innovations, not natural disasters… Headline: 30 stories in 15 days (story on Jan 10 th 2012 – built on Dec 31 2011) http://www.huffingtonpost.com/2012/01/10/30-story-hotel-constructed-in-15-days_n_1197991.html
  18. Leading Through Connections http://www.ibm.com/ceostudy2012 Infographic http://simpliflying.com/2011/infographic-the-future-of-loyalty-program-will-be-powered-by-social-media/
  19. Infographic http://www.appsblogger.com/kickstarter-infographic/ http://www.appsblogger.com/wp-content/uploads/2012/06/Kickstarter-Infographic-thumbnail.jpg Science to Deployment http://www.energy.ca.gov/research/buildings/demonstrations.html
  20. Photo of Da Vinci Surgical Systems http://en.wikipedia.org/wiki/Da_Vinci_Surgical_System http://www.davincisurgery.com/davinci-surgery/davinci-surgical-system/http://www.rapidtoday.com/future.html 3D Printed Organs http://www.rapidtoday.com/images/bioprinted%20heart.jpg http://www.makerbot.com/blog/2011/03/08/3d-printing-an-organ-live-onstage-at-ted/
  21. There are many visions of the future – and many show innovations that improve quality of life… by improving the way we interact to co-create value with others… http://www.youtube.com/watch?v=6Cf7IL_eZ38 http://www.youtube.com/watch?v=jZkHpNnXLB0
  22. Before we talk about the future of technology…. We should remember rules matter a lot too…. How we design systems matters….. Both how we design the technology &amp; the rules (or institutions we live in) matters a lot… It matters for four key measures of systems – innovativeness, equity, sustainability, and resiliency… Societal performance on these four measures depends on technology (infrastructure), rules (institutions), skills (individuals), and what we value interms of quality of life (information)… Why are these people smiling? Every year NFL (National Football League) teams select the best new college players who indicate they are eligible for the NFL Draft…. Stanford ’s quarterback Andrew Luck is one the best from 2011 What ’s interesting is the Indianapolis Colts, the team he will play for the next decade, is one of the worst Source: http://www.rgj.com/viewart/20120426/SPORTS/304260061/NFL-draft-Colts-take-Stanford-QB-Andrew-Luck-open-draft http://en.wikipedia.org/wiki/National_Football_League_Draft
  23. http://online.wsj.com/article/SB10000872396390444734804578062802698020758.html Where All NFL Teams Are Created Equal After six weeks of the NFL season, there&apos;s been one topic dominating the conversation: No team is dominating. The NFL has spent the last two decades touting its parity—the idea that any team can win on any given Sunday (or Monday or Thursday). But this year, parity has truly run wild. Since the NFL moved to its current division format in 2002, no division has ever had all its teams tied this late in the season—until this year. The four AFC East teams all have 3-3 records. Only two teams in the AFC, the Baltimore Ravens and Houston Texans, have winning records. Making one stadium home for both the New York Giants and the New York Jets requires an intricate changeover - from endzone logos, lighting, tee-shirts, banners, artwork - sometimes in just 12 hours. See the tricks used, including how the crew shuffles those 2,000-pound endzone trays. With &apos;Off Duty&apos; Host Wendy Bounds. But here&apos;s the wackiest thing: Through six weeks, 11 of the NFL&apos;s 32 teams are 3-3. The Journal asked the statistical gurus of Massey-Peabody Analytics to run a coin-flip simulation, in which they simulated the first six weeks of the NFL season 10,000 times, assuming all teams were exactly the same, but factoring in a slight home-field advantage edge. (Home teams won 57.8% of the time from 1978-2011.) So what would the result be if every NFL team were exactly the same? Odds dictate there would be 10.1 teams with a 3-3 record. In other words, this year&apos;s current standings (with 11 3-3 teams) have more parity than a hypothetical league in which every team was of equal strength. &quot;We&apos;ve had parity before but now what you are seeing is it&apos;s squeezing toward the middle more and more,&quot; said Houston Texans owner Bob McNair. — Kevin Clark, Michael Salfino
  24. Image courtesy of my colleague Jean Paul Jacob, at Berkeley So again, wherever I go leaders and citizens want to make sure their region is getting smarter…. Increasing their capacities for knowledge creation and knowledge application to create value for themselves and future generations, more competitively and more sustainably…
  25. What improves quality of life? Service system innovations. Every day we are customers of 13 types of service systems. If any of them fail, we have a “bad day” (Katrina New Orleans) I have been to two service science related conferences recently, one in Japan on Service Design and one in Portugal on Service Marketing… the papers from the proceedings of the conferences mapped onto all of these types of service systems… The numbers in yellow: 61 papers Service Design (Japan) / 75 papers Service Marketing (Portugal) / 78 Papers Service-Oriented Computing (US) Number in yellow Fist number: Service Design Conference, Japan 2 nd International Service Innovation Design Conference (ISIDC 2010), Future University Hakodate, Japan Second number Service Marketing Conference, Portugal, AMA SERVSIG at U Porto, Portugal 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 &amp; 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 &amp; 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 &amp; Waste (Utilities 560 (0.4%)) Food &amp; Manufacturing (Mining 717 (0.5%), Manufacturing 13,431 (8.9%), Agriculture, Forestry, Fishing 2,098 (1.4%)) Energy &amp; Electricity Information (Information 2,997 (2%)) Construction (Construction 7,215 (4.8%)) Retail &amp; Hospitality (Wholesale Trade 5,964 (4.0%), Retail Trade 15,356 (10.2%), Leisure and hospitality 13,459 (8.9%)) Financial &amp; Banking/Business &amp; 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%))
  26. What are the largest and smallest service system entities that have the problem of interconnected systems? Holistic Service Systems like nations, states, cities, and universities – are all system of systems dealing with flows, development, and governance. =============\\ Nations (~100) States/Provinces (~1000) Cities/Regions (~10,000) Educational Institutions (~100,000) Healthcare Institutions (~100,000) Other Enterprises (~10,000,000) Largest 2000 &gt;50% GDP WW Families/Households (~1B) Persons (~10B) Balance/Improve Quality of Life, generation after generation GDP/Capita Quality of Service Customer Experience Quality of Jobs Employee Experience Quality of Investment-Opportunities Owner Experience Entrepreneurial Experience Sustainability GDP/Energy-Unit % Fossil % Renewable GDP/Mass-Unit % New Inputs % Recycled Inputs
  27. Our world can be thought of as a nested system of systems…. Sources http://en.wikipedia.org/wiki/Matryoshka_doll http://blog.teacollection.com/history-of-nesting-dolls http://en.wikipedia.org/wiki/Japanese_traditional_dolls “ Japanese wooden dolls were made to look like the Seven Lucky Gods from Japanese mythology.  The outer most doll was Fukurokuju the Japanese god of happiness and longevity.  He had an abnormally long forehead “
  28. For example, we are all part of at least ten regional systems levels from our household to the world… Which level is most important for resiliency? Arguably the city… the level of population is enough to support “the knowledge burden of advanced technology” required for a high-quality of life
  29. Edu-Impact.Com: Growing Importance of Universities with Large, Growing Endowments Recently visited Yang building at Stanford One of the greenest buildings on the planet But if it does not evolve in 20 years it will not be the greenest building Visited supercomputers – we have two at IBM Almaden – there was a time they were in the top 100 supercomputers in the world – not any more …. So a Moore ’s law of buildings is more than cutting waste in half every year, it is also about the amount of time it takes to structural replace the material with newer and more modern materials that provide benefits…
  30. Why service scientists are interested in universities…. They are in many ways the service system of most central importance to other service systems… Graph based on data from Source: http://www.arwu.org/ARWUAnalysis2009.jsp Analysis: Antonio Fischetto and Giovanna Lella (URome, Italy) students visiting IBM Almaden Dynamic graphy based on Swiss students work: http://www.upload-it.fr/files/1513639149/graph.html US is still “ off the chart ” – China projected to be “ off the chart ” in less than 10 years: US % of WW Top-Ranked Universities: 30,3 % US % of WW GDP: 23,3 % Correlating Nation ’ s (2004) % of WW GDP to % of WW Top-Ranked Universities US is literally “ off the chart ” – but including US make high correlation even higher: US % of WW Top-Ranked Universities: 33,865 % US % of WW GDP: 28,365 %
  31. http://www.bls.gov/emp/ep_chart_001.htm http://theeconomiccollapseblog.com/archives/student-loan-debt-hell-21-statistics-that-will-make-you-think-twice-about-going-to-college Posted below are 21 statistics about college tuition, student loan debt and the quality of college education in the United States.... #1 Since 1978, the cost of college tuition in the United States has gone up by over 900 percent . #2 In 2010, the average college graduate had accumulated approximately $25,000 in student loan debt by graduation day. #3 Approximately two-thirds of all college students graduate with student loans . #4 Americans have accumulated well over $900 billion in student loan debt. That figure is higher than the total amount of credit card debt in the United States. #5 The typical U.S. college student spends less than 30 hours a week on academics. #6 According to very extensive research detailed in a new book entitled &quot;Academically Adrift: Limited Learning on College Campuses&quot;, 45 percent of U.S. college students exhibit &quot;no significant gains in learning&quot; after two years in college. #7 Today, college students spend approximately 50% less time studying than U.S. college students did just a few decades ago. #8 35% of U.S. college students spend 5 hours or less studying per week. #9 50% of U.S. college students have never taken a class where they had to write more than 20 pages. #10 32% of U.S. college students have never taken a class where they had to read more than 40 pages in a week. #11 U.S. college students spend 24% of their time sleeping, 51% of their time socializing and 7% of their time studying. #12 Federal statistics reveal that only 36 percent of the full-time students who began college in 2001 received a bachelor&apos;s degree within four years. #13 Nearly half of all the graduate science students enrolled at colleges and universities in the United States are foreigners. #14 According to the Economic Policy Institute, the unemployment rate for college graduates younger than 25 years old was 9.3 percent in 2010. #15 One-third of all college graduates end up taking jobs that don&apos;t even require college degrees. #16 In the United States today, over 18,000 parking lot attendants have college degrees. #17 In the United States today, 317,000 waiters and waitresses have college degrees. #18 In the United States today, approximately 365,000 cashiers have college degrees. #19 In the United States today, 24.5 percent of all retail salespersons have a college degree. #20 Once they get out into the &quot;real world&quot;, 70% of college graduates wish that they had spent more time preparing for the &quot;real world&quot; while they were still in school. #21 Approximately 14 percent of all students that graduate with student loan debt end up defaulting within 3 years of making their first student loan payment. http://www.citytowninfo.com/career-and-education-news/articles/georgetown-university-study-shows-a-bachelors-degree-in-stem-pays-off-11102002 About 65 percent of individuals with bachelor&apos;s degrees in STEM subjects commanded greater salaries than those with master&apos;s degrees in non-STEM fields, according to a Georgetown press release. Likewise, 47 percent of college graduates with bachelor&apos;s degrees in STEM fields earn higher wages than those with doctoral degrees in non-STEM subjects.
  32. I am interesting in building better models of the world – so need to model these giants…
  33. http://www.forbes.com/global2000/list/
  34. http://www.forbes.com/global2000/list/
  35. http://en.wikipedia.org/wiki/Portugal 0.12% of world population, 0.3% of Fortune 2000, 0.6% of top 500 universities Pop 10M GDP $210B
  36. The US with almost 5% of the world ’s population… The Unites States is home to some of the largest publicly traded businesses in the world… Apple now tops the Forbers Global 2000 list, but in April 2012 when Forbes published there list based on 2011 annual reports…. Exxon topped the list followd by Chase, GE, etc. IBM was number 32 on the list… The United States has 520 of the largest 2000 companies, so 26% of the list… “ The Forbes Global 2000 (The World’s Biggest Companies, p. 85) are the biggest, most powerful and most valuable companies in the world. Criteria for the ranking includes: sales, profits, assets and market value. In total, the Global 2000 companies account for $36 trillion in sales, $2.6 trillion in profits, $149 trillion in assets and $37 trillion in market value “ http://www.forbes.com/sites/forbespr/2012/04/18/press-release-forbes-global-2000-ranking-of-the-worlds-biggest-companies/ The US has 150 of the top ranked 500 universities of the world as well… 30% http://www.shanghairanking.com/ARWU2012.html http://www.shanghairanking.com/Country2012Main.jsp?param=United%20States
  37. Denmark with less than 1/10 of 1% of the world ’s population… Denmark, had 10 businesses on thre Forbes 2000 list – or 0.5% of the list http://www.forbes.com/global2000/list/#p_1_s_a0_All%20industries_Denmark_All%20states_ Denmark has four universities in the top 500 universities – or 0.8% of the list http://www.shanghairanking.com/Country2012Main.jsp?param=Denmark
  38. Sweden with about 1/10 of 1% of the world ’s population Sweden has 25 businesses in the Forbes Global 2000 list for 2012 report (based on 2011 annual reports) or 1.25% o the list http://www.forbes.com/global2000/list/#p_1_s_a0_All%20industries_Sweden_All%20states_ Sweden has 11 universities in the top 500, or 2.2% of the list http://www.shanghairanking.com/Country2012Main.jsp?param=Sweden Of course, looking at publically traded companies and top ranked universities misses a lot of global brands – such as private companies like IKEA…
  39. Sources http://en.wikipedia.org/wiki/IBM#cite_note-10K-0 http://www-03.ibm.com/press/us/en/pressrelease/33341.wss http://www.fiercecio.com/press-releases/ibm-reports-2010-fourth-quarter-and-full-year-results-nyse-ibm-q4
  40. IBM is a globally integrated enterpise, over $100B revenue per year, and over 400,000 employees – a huge corporation by any standards… but what do they do?
  41. Most people have heard of the IBM brand, and they say IBM makes computers… But “Lenovo purchased IBM&apos;s personal computer business and acquired the ThinkPad brand in 2005. “ http://en.wikipedia.org/wiki/ThinkPad
  42. What IBM is really apply IT knowledge and capabilities to help build a Smarter Planet…. One that using computing as a service (cloud computing) to help individuals and institutions make better decisions from systems that are more instrumened, interconnected, and intelligent… IBM is applying Information Technologies, including PowerPC computer chips, PureSystems, Mainframes, Blue Gene supercomputers, in giant cloud computing data centers around the world, grinding away on Big Data, to help apply knowledge to create value for others – businesses and governments around the world… IBM is also one of the largest software companies in the world and has acquired on average one business a month for the last 10 years. IBM has also been the top company for number of patents issues per year for 18 years in a row… And IBM has sponsored the ACM programming competition for over a decade – identifying some of the worlds best programming talent… IBM is also one of the largest service businesses in the world… applying knowledge in the form of 100,000 of skilled professionals geographically distributed in 100 of nations and all the top cities in the world…
  43. The evolution of service science is to apply service science to create a Smarter Planet. What is smarter planet? A smarter planet is built out of many harmonized smarter systems, systems that are instrumented, interconnected, and intelligent (data, models, and analytics software are used to make better decisions) The world is instrumented meaning everything has computers, cameras, gps or other sensors – cars, stop lights, signs, roads, hospitals, retail stores, rivers, bridges, etc.. The world is getting more and more interconnected. If we could capture the right data and analyze it, we can make our planet smarter. IBM has been working on cleaning up pollution in Galway Bay, Ireland. The marine scientists told the IBMers that the mussels in the water close their shells when something bad enters the water. So IBM put sensors in some of the mussels and connected the sensors to an alert system and visualization system. When a pollutant enters the water, the mussels shut their shells, the sensors sends an alert and water management officials begin to take action to clean it up. Over time, they realize that a particular ship may be coming into the bay every other Tuesday, causing the problem, and they can go after the ship company to not drop pollutants or to find another way to rid of waste. This optimization takes place with other causes of the pollutants.
  44. Transportation is essential for flows and buildings are essential for human development Headline: TEDx Boston, Ryan Chin Urban Mobility (July 28, 2009) http://tedxboston.org/speaker/chin
  45. Picture: https://www.ibm.com/developerworks/mydeveloperworks/blogs/782c981b-356f-4bd8-b494-da4da4899e70/entry/streetline_the_ibm_global_entrepreneur_of_the_year_real_time_success_continues54?lang=en Story https://www.ibm.com/developerworks/mydeveloperworks/blogs/782c981b-356f-4bd8-b494-da4da4899e70/entry/zia_yusuf_ceo_streetline_tips_to_winning_ibm_smartcamp2?lang=en
  46. Story: http://www-01.ibm.com/software/success/cssdb.nsf/CS/SSAO-8BQ2D3?OpenDocument&amp;Site=corp&amp;cty=en_us Image: http://infosthetics.com/archives/2010/03/babies_now_crawling_in_infographical_data.html
  47. This slides was created by IBM GMU External Relations For information or queries about this presentation please contact: Megan Rosier , Manager, GMU External Relations – [email_address] Karen Davis , Director, GMU External Relations – [email_address]
  48. Cities are about 2% of the land area, with 50% of the popuoation and 75% of the energy consumption, and 80% of the carbon emissions, according to Carolo Ratti who heads MIT Senseable Cities at MIT Media Lab. Of course, while the buildings and transportation in cities are important – what is really important are the people…. Headline: TED talk: Carlo Ratti (MIT) Architecture that senses and resonds http://www.ted.com/talks/carlo_ratti_architecture_that_senses_and_responds.html
  49. Photo: http://blog.ted.com/2012/02/29/four-commandments-for-cities-of-the-future-eduardo-paes-at-ted2012/
  50. IBM gathers statistics related to the five 6 R ’s on 5000 universities world wide… 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), Responsibility (where IBM employees share their expertise, time, and resources with universities – including IBM guest lecturing in courses or judging student competitions), and Regions – newest and most important working with regional innovation ecosystems, in conjunction with our IBM Global Entrepreneurs program and SmartCamps…. 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
  51. The Up-Skill Cycle People flow through the system of entities… As they flow they are upskilled…. Entities: Mature IBM Business Unit: From mature-business unit Acquired-IBM Business Unit: From IBM “ acquired company ” business unit University: From university role Venture: From venture that spun off from a university Other: None of the above One possible path A long-time IBMer is in an IBM business unit doing, say “ finance ” The IBMer ’ s business unit receives the 5% annual budget cut The IBMer moves to a new IBM acquisition to help the new acquisition adopt/learn IBM finance procedures After that the IBMer moves to a university as an IBMer on Campus The IBMer might work in a department/discipline, in the university incubator, or a university start-up, or even be a student at the university Eventually the IBMer signs up to be pat of a new venture that is spinning off from the university The new venture is aligned with IBM via HW, SW, or other IBM offerings/strategy IBM helps scale up the new venture global IBM might decide to acquire the new venture The IBM in the acquired new venture helps the new venture become a high growth business unit of IBM After the new IBM business unit asymptotes on revenue and profit improves, it has become a mature business unit Now the IBMer is back in a mature business unit, and the cycle repeats… A long-time IBMer is in an IBM business unit doing, say “ finance ” The IBMer ’ s business unit receives the 5% annual budget cut Transitions: Self-loop IBMer stays in mature business unit IBMer transitions from mature business unit to a newly acquired IBM acquisition IBMer transitions from mature business unit to a university role IBMer transitions from mature business unit to a new venture that spun off from a university IBMer transitions from mature business unit to an entity not mentioned above (some where else)
  52. However, it is also arguable that universities are important for resiliency… Source: http://www.nyu.edu/about/leadership-university-administration/office-of-the-president/redirect/speeches-statements/global-network-university-reflection.html
  53. To begin, let ’s consider the big picture – starting with the big bang…. and evolution of the earth, life on earth, human life, cities, universities, and the modern world… the evolution of observed hierarchical-complexity &quot;(1) Universe turns on, (2) Sun, (3) Earth, (4) Bacteria (single-cell), (5) Sponges (multi-cell), (6) Clams (neurons) (7) Tribolytes (brains), (8) Bees (social insects), (9) Humans (symbol and tool creating mammals), (10) Cities (division of labor), (11) Writing (knowledge accumulation), (12) Written Laws (open standards of justice), (13) Coins/Money (efficient exchange), (14) Universities (knowledge accumulation), (15) Printed Books (knowledge accumulation), (16) Coal-powered Steam Engines for mining coal (physical amplification), (17) Transistors for building smart machines with many transistors (logical switching amplification &amp; symboc processing amplification), (18) I turned on, i.e., was born&quot; Or in a bit more detail... &quot;About 13.7 billion years ago (~13.7Bya) the big bang that physics talks about, ~4.6Bya sun turns on, ~4.3Bya earth turns on, ~3.5Bya bacteria (single-cell) turn on, ~2.5Bya sponges (mult-cell) turn on, ~0.7Bya clams (neurons) turn on, ~0.5Bya tribolites (brains) turn on, ~0.2Bya bees (social insects) turn on, ~0.002Bya people (symbol reasoning, communications &amp; tools) turn on, then about 20 thousands years ago as the last planetary glaciation period comes to an end, the climate improves and the human population sky-rockets so that about 10 thousand years (~10Kya) ago the first cities turn on the big bang of division-of-knowledge and division-of-labor that service science talks about, ~7Kya writing turns on, ~5Kya Code of Hammurabi (written law) turns on with scaled punishments and contracts including liability to others, ~3Kya Lydian money (coins) turn on - still quite valuable today, ~1Kya University of Bologna and other universities that can be found in existence today turn on, ~0.7Kya Gutenberg printed books turn on allow more self-service learning,, about ~0.3Kya Newcomen&apos;s steam engine turns on and the world embraces coal for power, ~0.06Kya Shockley&apos;s AT&amp;T Belllabs transistor turns on that electronics and computer scientists talk about.... and it was about that same time that I turned on, in time to enjoy the integrated circuit 50 years ago, microprocessor 40 years ago, personal computer 30 years ago, world wide web and browsers 20 years ago, smart phones in the last 10 years, and who knows what next... 3D printing, self-replicating machines, robots, augmented reality, etc.&quot; Age of natural systems (age of the universe): Big Bang http://en.wikipedia.org/wiki/Age_of_the_universe Age of urban systems (age of complex human-made world): Oldest city http://en.wikipedia.org/wiki/List_of_cities_by_time_of_continuous_habitation (end of last Ice Age was about 20,000 years ago, about 5 million people on earth by 10,000 years ago) http://www.ncdc.noaa.gov/paleo/ctl/100k.html (last Ice Age was probably started about 70,000 years ago when a super volcano erupted blocking sun light) Many people still ask -- where is the science in the “Service Science?” One answer is that the science is hidden away in each of the component disciplines that study service systems, scientifically from their particular perspective… However, the big picture answer is “Ecology” - Ecology is the study of the abundance and distribution of entities (populations of things) in an environment… and how the entities interact with each other and their environment over successive generations of entities. The natural sciences (increasingly interdisciplinary) study the left side, using physics, chemistry, and biology Service science (originated as interdisciplinary) studies the right side, using history, economics, management, engineering, design, etc. Service science is still a young area, but from the growth of service in nations and businesses to the opportunity to apply service science to build a smarter planet, innovate service systems, and improve quality of life… it is an emerging science with bright future, and yes… it will continue to evolve : - ) 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 5M 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 5M 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&apos;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&apos;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 (&quot;if ... then ...&quot;). 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&apos;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&apos; testimony discussed Gutenberg&apos;s types, an inventory of metals (including lead), and his type molds.[34]
  54. First, thanks for coming to the talk today, and if you find yourself in the US and California, please come visit me at the IBM Almaden Research Center in San Jose, the Capitol of Silicon Valley. And bring your hiking shoes, because I like to take my meetings when possible as hikes, in the 800 acre county park that surrounds the Almaden Center. The snow is actually a rare event, most days are sunny and warm.
  55. Permission to re-distribute granted by Jim Spohrer – please request via email (spohrer@us.ibm.com) This talk provided a concise introduction to SSME+D evolving, and applying Service Science to build a Smarter Planet… Reference content from this presentation as: Spohrer, JC (2010) Presentation: SSME+D (for Design) Evolving: Update on Service Science Progress &amp; Directions. Event. Place. Date. Permission to redistribute granted upon request to spohrer@us.ibm.com But I want to end by sharing some relevant quotes… 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…
  56. Ready for Life-Long-Learning Ready for Teamwork Ready to Help Build a Smarter Planet T-shaped people are ready for Teamwork – they are excellent communicators, with real world experience, and deep (or specialized) in at least one culture, one discipline and one systems area, but with good team work skills interacting with others who are deep in other cultures, 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…
  57. There are many opportunities for educational institutions to specialize. Better tuned competence of individuals allows graduates to hit the ground running and better fill roles in business and societal institutions…. Better general education will allow more rapid learning of an arbitrary area of specialization, and create a more flexible labor force… All service systems transform something – perhaps the location, availability, and configuration of materials (flow of things), or perhaps people and what they do (people ’s activities), or perhaps the rules of the game, constraints and consequences (governance). How to visualize service science? The systems-disciplines matrix… 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 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
  58. What would it take to have a Moore ’s Law for buildings? Or university campuses? Or city infrastructure? 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&apos;s (Canadian Physicist Julius Edgar Lilienfeld&apos;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 &amp; 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&apos;s and early 1960&apos;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&apos;s law.... 5. By 1965 Gordon Moore&apos;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 &quot;electricity consumption&quot; .... 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
  59. Service systems and knowledge access evolving Nested, networked holistic product-service systems that provide “Whole Service” to the people-inside Source: Whole Service http://www.service-science.info/archives/1056 Source: Third Stream http://www2.lse.ac.uk/economicHistory/Research/CCPN/pdf/russell_report_thirdStream.pdf
  60. Edu-Impact.Com: Growing Importance of Universities with Large, Growing Endowments Recently visited Yang building at Stanford One of the greenest buildings on the planet But if it does not evolve in 20 years it will not be the greenest building Visited supercomputers – we have two at IBM Almaden – there was a time they were in the top 100 supercomputers in the world – not any more …. So a Moore ’s law of buildings is more than cutting waste in half every year, it is also about the amount of time it takes to structural replace the material with newer and more modern materials that provide benefits…
  61. We all know that economists have been reporting on the growth of the service economy for the last century… Over the last two hundred years, the US has shifted from agriculture to manufacturing to service jobs, as dominant. The growth in service jobs parallels the growth of the information economy, and many of the jobs are knowledge-intensive, including finance, health, education, government, B2B, etc. Developed and emerging markets are seeing the same shift – this is a global trend. What was clear was that all developed and emerging market nations where shifting to service economies due to increasing use of technology in manufacturing and agriculture (productivity increases), and increasing use of information technology in traditional service areas, including utilities, building maintenance, retail &amp; hospitality, finance, health, education, and government – making the service sector more knowledge-intensive and requiring more technical skills. As well as more outsourcing, leading to more B2B service. In the back-up slides we introduce the concept of product-service-systems to better understand the way the global economies are evolving… ServicesOLD= Not Natural or Manufactured Products (Negative) ServiceNEW = Applying Knowledge/Resources to Benefit Customers/Stakeholders (Positive) Why does outsourcing the jobs or changing the business model (e.g., leasing, mass-customizaton) cause the category to change? It shouldn ’t, modern farms and factories are service systems too… See the following papers… Vargo &amp; Lusch (2004) Evolving to a New Dominant Logic for Marketing. Journal of Marketing. Tien &amp; Berg (2006) On Services Research and Education. Journal of Systems Science and Systems Engineering. Two ways the Firm can think about the world: Firm – can I think of things my customers want to own, and how can I make and sell those things. Firm – can I think of ongoing relationships/interactions with my customers and their stakeholders, and how can I establish and continuously improve those interactions in a win-win manner Fact: Service growth in “national economies” All nations are experiencing a macro-economic shift from value in producing physical things (agriculture and goods) to value from apply capabilities for the benefit of others (services). Observation: Service sector is where the job growth is, not only in the US but around the world. Implication: Most science and engineering and management jobs will be in the service sector. For example, Kenneth Smith of H.B.Maynard (one of the oldest and most prestigious industrial engineering consulting firms) said - “Historically, most of our business at H.B. Maynard was manufacturing, today roughly 80% is in the retail sector…” So why do we still train most scientist and engineers for manufacturing age jobs? Could this be part of the reason that in most US engineering schools only 50% of entering engineering students graduate with an engineering degree? The service sector is the fastest growing segment of global economies. In the US, in 1800 90% of people were worked on farms, and today less than 3% of workers are employed in agriculture. Goods, or manufacturing of physical products, peaked in the US in the mid-1950 ’s and has been decreasing ever since due to automation and off shoring. However, services, especially complex information and business services, as we will see is where the growth is. But the growth in the service sector jobs is not just in the developed countries, it is also happening in the developing countries. In fact, the International Labor Organization, reports that 2006 was the first time in human history that more people worker in the service sector than in agriculture world wide. 40% in service sector, 39.7% in agriculture, and 21.3% in manufacturing, with the growth coming by moving people from agriculture to services – this represents the largest labor force migration in human history. 1970 estimates % of service in labor force (change to 2005/2009 est) China 12 +17 142% India 17 +6 35% US 62 +14 23% Indonesia 29 +10 34% Brazil 41 +25 61% Russia 42 +27 64% Japan 48 +19 45% Nigeria 16 +3 19% Bangledesh 19 +7 37% Germany 45 +19 42%
  62. What you may not know is that manufacturing companies are also seeing a growth in service revenue… from financing to maintenance to customer support services, because of the growing complexity of products… IBM has seen its service revenue grow, and lead the growth of IBM in the last two decades. In the last two decades the growth was B2B, in the coming decade it will be B2G service growth – powered in part by shared service across government and cloud computing… Fact: Service growth in “manufacturing” businesses 2008 GTS 40 (39.2) GBS 20 (19.6) SWG 22 (22.1) S&amp;T 20 (19.2) FIN 2 (2.6) Total 103.6B Profit 45.6% 2010 GTS 38.2B GBS 18.2B -&gt; 56.4B HW 18.0B SW 22.5B FIN 2.2B -&gt; 42.7B Source: http://www.fiercecio.com/press-releases/ibm-reports-2010-fourth-quarter-and-full-year-results-nyse-ibm-q4
  63. As we think about the future of cities and universities, as an optimist, I see future cities and universities better than they are today… what IBM calls a Smarter Planet is such a vision -- today cities and universities sustain our high quality of living on the planet -- we believe they do an even better job in the future – in future cities and universities, we can all do a better job of applying, creating, and transferring knowledge generation over generation… http://www.measureofamerica.org/docs/APortraitOfCA.pdf In a recent survey of young Californians, 90% said internet access was essential for a high quality of life, and 50% said access to a smart phone was essential for a high quality of life. Some would say that the middle-class person today lives better than king ’s did a thousand years ago… perhaps that is true in terms of material comforts… and in 1836 Nathan Rothschild the richest many in the British Empire, perhaps the world died of an infected abscess… http://en.wikipedia.org/wiki/Nathan_Mayer_Rothschild By the time an infected abscess caused his death in 1836, his personal net worth amounted to 0.62% of British national income.
  64. Photo: http://www.sfgate.com/business/article/IBM-pushes-Smarter-Planet-but-how-edgy-is-firm-3415000.php
  65. KPIs = Key Performance Indicators, the measures of service system performance Focus on service system resources, access rights, stakeholders (value propositions), and measures (KPIs) Calculating ROI and Success Rate for an industrial service research group 4 outstanding at $100M each and 11 accomplishments at $10M each = $510M business impact result in 7 years 2 outstanding at $100M each and 9 accomplishments at $10M each = $290M business impact result in 6 years 290M/8x ROI = 36M of base funding for 210 Person-years (36M/210 = $172K/person base funding level) 210 person years over six years = 10,20,40,50,50,40 (in year one there were 10 people, in year two 20 people, in year 3 40 people, etc.) Accomplishments (12 PY, 3-5 person, 2-4 years) = expected 12 PY (4 x 3) Outstanding (24 PY additional, 6-10 persons, 2-4 years) = additional 24 PY (8 x 3) = +24 is 12+24 = 36 So 2 outstandings take 36 (36 PY) and 9 accomplishments 12 (12 PY) = 2 * 36 + 9 x 12 = 72 + 108 = 180 (one could ask if this double counts on outstandings, since it pre-supposes and earlier accomplishment – in fact most accomplishments have more than $100M impact, so this is OK). 180/210 = 0.86 = 86% success rate (a big debate in research organizations is what should the success rate be – 100% success rate probably implies you are not taking enough risk, so learning/returns will not be maximized long-term) (put another way – solving really, really hard problems is not 100% guaranteed, but if they are solved they can pay enormous dividends; sometimes more so than simpler problems to solve) CBM = Component Business Model (Models of over 70 industries, decomposed into 100-200 business components/service systems, with associated KPIs) IDG = Intelligent Document Gateway (Process improvement workbench - process automation, business rules engines, authoring capability, document scan capability, etc.) SDM = Solution Design Manager (complex service offerings delivered globally are hard to describe, cost, price, and allow teams to collaboratively develop and iterate) BIW = Business Insight Workbench (unstructured text analytics, data mining, structured analytics, automatic taxonomy, trend analysis, co-occurrence statistics, etc.) COBRA = Corporate Brand Reputation Analysis (data mine blogs and customer service data, etc. for insights) SIMPLE = Patent Analytics (data mine patents and technical publications, etc. for insights) IoFT = Impact of Future Technologies (future studies method to identify signposts, and data mine for trends, etc.)
  66. In today ’s talk we will be thinking together about the future…. What is the future? We can imagine many possibilities… I show this for two reasons: - I believe computers will soon be helping policymakers and others explore future possibilities better - I want us to be thinking about resiliency of our systems in the future, and what are the weakest links in creating resilient cities and universities… what do we do if the computers go down, when we depend more and more on technology for a high quality of life? Source: http://www.kurzweilai.net/cartoon-what-is-the-meaning-of-life
  67. Ready for Life-Long-Learning Ready for Teamwork Ready to Help Build a Smarter Planet T-shaped people are ready for Teamwork – they are excellent communicators, with real world experience, and deep (or specialized) in at least one culture, one discipline and one systems area, but with good team work skills interacting with others who are deep in other cultures, 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…
  68. http://w3-03.ibm.com/relations/university/univrel2.nsf/ContentDocsByTitle/About+UR Research – IBM Research Readiness – SWG, IDR &amp; AI Recruiting – HR Revenue – S&amp;D, STG, and business units Regions – GP (Government Programs) &amp; VCR (Venture Capital Relations) – Global Entrepreneurship Program (SWG IDR &amp; VCR) Responsibility – CC&amp;CA