Service Science
and Serviceology
Dr. James C. (“Jim”) Spohrer
IBM Innovation Champion
Director, IBM Global University Programs
ICServ 2013, Tokyo, Japan, October 16, 2013

ICServ 2013 Organizing Committee
Masaaki MOCHIMARU

Service Amplification
Prof. Hiroyuki YOSHIKAWA
Yoshikawa, H. (2008). Introduction to service engineering.
Synthesiology–English edition, 1(2), 103-113.

Service Science Knowledge Environment:
Disciplines (23), Professional Associations (39), Journals (20), Conferences (31), Workshops (7)
Discipline
Association
Marketing
AMA
Operations Research
INFORMS
Information
Systems
AIS
Computer Science
and Engineering
ACM, IEEE
Human Factors
AHFE
Operations
Management
POMS
Systems Science
ISSS
Design
SDN
Systems Engineering
IIE
…
…
multiple
Serviceology
(SSME+DAPP)
ISSIP
IBM SSME Centennial Icon of Progress

ISSIP Ambassadors Global Network
(http://www.issip.org)

The Well-Read Service Scientist
(The top 300 papers – together over 100,000 citations)
• http://service-science.info/archives/2708

Service-Dominant Logic
Prof. Stephen VARGO
Prof. Robert LUSCH
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a
new dominant logic for marketing. Journal of
marketing, 1-17. (Oct. 2013, ~4500 citations)
Claude Frédéric Bastiat
David Ricardo
Colin Clark
Richard Normann
John Riordan

What’s Next Decade Bringing?
Building on the Foundation
• Next Generation of Service Innovators
– From I to T to Pi and Beyond!
• Platform Technologies and Smart Service Systems
– Accelerating Transform of Business & Society
• Transformation of Education Service System
– Towards a “Moore’s Law of Higher Education”
• Service Science (SSME+DAPP) Textbooks
– MOOCs (Massively-Open On-Line Courses)
• Holistic Service System Modeling Tools
– Order of Magnitude Observation

Next Generation:
T-Shaped Adaptive Innovators
Many disciplines
Many sectors
Many regions/cultures
(understanding & communications)
Deep in one region/culture
Deep in one sector
Deep in one discipline

Welcome to the new age of
platform technologies and
smarter service systems
for every sector of
business and society
nested, networks systems

The Future: My “Mentors”
• The future is already here at universities, it is
just not yet well distributed
– With apologies to Gibson
• The best way to predict the future is to
inspired the next generation of students to
build it better
– With apologies to Kay

Example: Are there “scale laws” of service innovation – year-over-year
compounding effects?
• Problems
Year 1:
Year 2:
20%
Year 3:
– Input: Student quality
– Process: Faculty motivation
– Output: Industry fit
20%
20%
• Augmentations
– A: -20% eLearning certification
– B. +10% Faculty interest tuning
– C. +10% On-the-job skills tuning
.
Year N:
.
.
.
.
.
.
.
20%
After a decade the course may look quite different
Service systems are learning systems: productivity, quality, etc.
12

Textbooks & MOOCs
Apply the 6 principles of service thinking
All value is co-created
Service systems we live and work in
Componentized business architecture
Global-mobile-social scalable platforms
Run-Transform-Innovate
Multi-sided metrics
1/11/13
CVC Group, LLC for Hult International
Business School
13

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
14

Next Generation:
T-Shaped Adaptive Innovators
Many disciplines
Many sectors
Many regions/cultures
(understanding & communications)
Deep in one region/culture
Deep in one sector
Deep in one discipline

IBM SSME Centennial Icon of Progress
IBM Smarter Planet
Students For Smarter Planet:
”I have MET the future, and its students!”
Jim Spohrer
IBM UP Worldwide
PICMET 2013, San Jose, CA
August 1st, 2013
Nano-Bio-Info-Cogno

Today’s Talk: S4SP
• Some statistics and brief discipline histories
• Some quotes
• Some strategy
– Sciences and Applied Arts: IBM UP Strategy
• Some possible futures

Some Stats: PICMET 2013 Sectors
Sector
Trans
Gov (36)
Environ
Things (36)
Things
Energy
Edu (37)
ICT
Buidling
Health (22)
ICT (48)
Retail
FinBiz
Health
Finance Biz (93)
Edu
Gov
Other

Some Stats: PICMET 2013 Regions
Sector
NA
World (39)
MexSA
NA (59)
EU
Africa
RussEEu
JapanKorea (50)
MexSA (20)
ME
China
EU (36)
India
JapanKorea
ASEAN
China (60)
Africa (26)
World
Other

Sciences & Applied Arts
• All sciences study systems
– Physics, Chemistry, Biology, Information and
Computer Science, Service Science, etc.
• All applied arts change systems
– Management, Engineering, Design Arts, Public
Policy seek to apply rigorous scientific knowledge
to create better worlds to inhabit

Some Short Histories:
Engineering Management Discipline
(service-science.info/archives/3138)
•
1950s & 1960s (Demand and Origins, Al Rubenstein et al.)
– World Events: Engineers promoted into management & executive ranks
– IEEE Transactions of Engineering Management
•
1970s & 1980s (Growth in many places, NSF Erik Block & Richie Henrick, et al.)
–
–
–
–
–
•
World Events: Oil crisis and competitiveness concerns
NSF adds engineering emphasis and computer science
Industrial Engineering (IE) and Management Science (OR) degree programs
World Events: Japan’s success and competitiveness concerns
NSF Meeting, Textbooks, Growth in Degree programs and courses
1990s to present (Growth, Dundar Kocaoglu, Tarek Kahlil, et al.)
– World Events: Internet growth and business school minor
– PICMET, IAMOT, IRI, and others ( IEEE, IIE, etc.)
– Challenges going forward
•
•
Academic Silos: Engineering (accreditation) and Management (minor)
Hiring graduates into industry and industry participation in academic communities
– Opportunities going forward
•
Strong interest in Asia

Information & Computer Science
• “The single strongest impulse for introducing
computers on campuses in the mid-1950s did
not come from the schools themselves or
from any federal agency, but instead from
IBM.”

Data Science
• “Data science incorporates varying elements
and builds on techniques and theories from
many fields… with the goal of extracting
meaning from data and creating data
products.”

By 2020, 35 Zettabytes per year
• What’s big today will look small in a decade
2 Billion Internet users in 2011
Google processes
By 2013, annual internet traffic
will reach 667 Exabytes
in a single day
Facebook processes
10 Terabytes of data every
day
The Hadron Collider at CERN
generates 40 Terabytes
of data / sec
> 24 Petabytes of data
Twitter processes
7 Terabytes of data every day
250,000,000 tweets
For every session, NY Stock
Exchange captures 1 Terabyte
of trade information

Urban Science
• Urban science is an interdisciplinary field that
studies diverse urban issues and problems

Service Science
• The transdisciplinary study of service, the
application of knowledge for mutual benefits
(value co-creation phenomena), in an ecology
of interacting many-tomany, nested, networked viable service
system entities.

Service Science
•
Service System Entities
– Types: Businesses, Universities, Governments, etc.
– Nested & Networked Globally
– SD Logic (A2A; Resource Integrators)
•
Value Co-Creation Interactions
– Types: Value-Proposition & Governance Mech-based
– Collaboration & Competition Blended
– SD Logic (Operant & Operant Resources)
•
Builds On…
– Decades of Service Research (Marketing, Operations, etc.)
– SSME+D; From I to T to Pi-shapes… and beyond!
– T Summit (March 24-25, 2014)
•
Measures
– Productivity, Quality, Compliance, Sustainable Innovation
– Holistic Service Systems
•
•
Quality of Life, Balance Challenge & Routine
Innovativeness, Equity, Sustainability, Resilience

NSF
A feature of a service system is the
participation and cooperation of the customer
in the service and its delivery. A service system
then requires an integration of knowledge and
technologies from a range of disciplines, often
including engineering, computer science, social
science, behavioral science, and cognitive
science, paired with market knowledge to
increase its social benefit.

NSF LinkedIn Group

Welcome to the new age of
platform technologies and
smarter service systems
for every sector of
business and society
nested, networks systems

Technology Platforms and
Smarter Service Systems Rapidly Scale
The Benefits of New Knowledge:
Customers As Co-Creators Spreads Faster Than
Customers as Consumers

Innovation Framework
• Z2B = Zero to a Billion in Revenue in a under a Decade
– University startups (e.g., Google, Facebook, etc.)
– Challenge: Find a “Moore’s Law for Service System Scaling”
• Service Science Fundamentals
– Service is the application of knowledge for mutual benefit of
entities (value co-creation processes)
– Service innovations scale the benefits of new knowledge
globally, rapidly, and profitably
– Smart service systems include the customer, provider, and other
entities as sources of
capabilities, resources, demand, constraints, rights, responsibiliti
es in value co-creation processes
– Technology and organizational platforms support rapid scaling
processes (smart phones, franchises, etc.)

Innovation Framework: Structure
Universities &
Startups
Smart Service
Systems
Technology
Platforms
Integrators &
API Ecology
Customers
MIT, Stanford,
Berkeley, SJSU,
Purdue, UUtah,
UArizona
Tucson,
LinneausU
(Sweden),
Aalto (Finland),
and major
teaching,
research, and
startup
universities in
many nations
globally & their
startups
Smart Phone,
Devices,
Appliances,
Furniture
iPhone,
Android
Apple, Google,
Microsoft,
Samsung, IKEA
Individuals:
Personal and
Employee PSS
& DSS
Smart Vehicles,
Grid, Roads,
Stores, Homes,
Campuses
Driverless Car
Google, Toyota,
Audi, Ford,
Deere, IKEA,
Starbucks, Tata
Individuals:
Personal &
Employee PSS
& DSS
Smart Schools,
Hospitals,
Businesses
Watson, CRM, IBM, HP, Cisco,
ERP, HCM,
SAP, Amazon,
SCM, PRM, EC2 Salesforce
Smart Cities,
Smarter City
Regions, States, Intelligent
Nations, Planet Operation
Center
IBM, HP, Cisco,
Siemens,
Accenture
Institutions:
Enterprise PSS
& DSS
Institutions:
Enterprise PSS
& DSS

Innovation Framework: Funders
Source
Motivation
Mechanisms
Government
Competitiveness, Close
knowledge gaps
Research and SBIR grants,
IRB’s and Offsets
Venture Capital
ROI
Equity Investments, Exits
(Go public, acquisitions)
Crowd-funding &
Prospective Customerfunding
Outcomes
Kickstarter.com, X-Prize,
Challenges, Kaggle.com,
Netflix
Industry Funding
New Offerings, Platform &
Ecosystem Development
IP Agreements & Open
Innovation Grants
Foundations
Social Benefits
Grants
RED
High Skill/High Pay Jobs
Tax incentives, Property
discounts

Innovation Framework: Players
Role
Supplies
Benefits
University Faculty
Course content/coaching
Course improvements
University Students
Learning by Doing
Become more T-shaped
Industry Mentors
Real-world challenges
Talent pipeline
Professional Association
Mentorship templates
Members development
University Startups
Offering for customers
Potential customers
Platform Provider
Potential to scale
New users
Ecosystem & SI Provider
Potential to scale
New offerings
Customer
Demand
Outcomes
Funder
Investment
(See previous funder slide)
Service Science Faculty
Orchestration & Expertise
Close knowledge gaps

What’s UP at IBM?
37

Those in-the-know say, “IBM is helping to build a Smarter Planet…”
38

Smarter Planet = Smarter Systems
INSTRUMENTED
INTERCONNECTED
INTELLIGENT
We now have the ability to
measure, sense and see
the exact condition of
practically everything.
People, systems and objects
can communicate and
interact with each other in
entirely new ways.
We can respond to changes
quickly and accurately,
and get better results
by predicting and optimizing
for future events.
IT NETWORKS
PRODUCTS
WORKFORCE
39
SUPPLY CHAIN
COMMUNICATIONS
TRANSPORTATION
BUILDINGS

City challenges
Ryan Chin:
Smart Cities
40

Smart Startup: Streetline
41

Smart Neonatal ICU
42

Land-population-energy-carbon
Carlo Ratti:
Senseable Cities
43

44

45

Four commandments for cities of the future: Eduardo Paes at TED2012
46

SC IOC as a Platform for Innovation
47



Exclusive Networking and
Mentoring event
Identifies entrepreneurs developing
businesses aligning with our Smarter Planet
vision.
SmartCamp finalists raised more than
$50m and received significant press in
Wall Street Journal, Forbes and
Bloomberg
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
48
48
North America SmartCamp lead: Eric Apse, eapse@us.ibm.com
University Programs lead: Dawn Tew, dawn2@us.ibm.com

What are the trends?
Digital Immigrant
Born: 1988
Graduated College: 2012
49
Digital Native
Born: 2012
Enters College: 2030

Transportation: Self-driving cars
Steve Mahan:
Test “Driver”
50

Water: Circular Economy
51

Manufacturing: Circular Economy
Baxter: Building the Future
Ryan Chin:
Urban Mobility
52
Maker-Bot: Replicator 2

Energy: Artificial Leaf
53

Technology: Cognitive Computing
54

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
Advancement of Question-Answering Initiative
(OAQA) architecture and methodology
 Provided technological advancement enabling a
computing system to remember the full
interaction, rather than treating every question like
the first one - simulating a real dialogue
Explored advanced machine learning
techniques along with rich text
representations based on syntactic and
semantic structures for the Watson’s
optimization
Pioneered an online natural language question
answering system called START, which provided the
ability to answer questions with high precision using
information from semi-structured and structured
information repositories
Worked on a visualization component to visually
explain to external audiences the massively parallel
analytics skills it takes for the Watson computing
system to break down a question and formulate a
rapid and accurate response to rival a human brain
Focused on large-scale
Worked on information retrieval information
and text search technologies
extraction, parsing, and
knowledge inference
technologies
http://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html
55
55
Worked to extend the
capabilities of Watson, with a
focus on extensive common sense
knowledge

Buildings: Circular Economy
China Broad Group:
30 Stories in 15 Days
56

Retail & Hospitality: Social Media
57

Finance: Crowd Funding
58

Health: Robotics & 3D Printing
59

Education: Challenge-Based Sport
60

Government: Parameterized Meta-Rules
• Innovativeness
• Equity
– Improve
weakest
link
• Sustainability
• Resiliency
61

Competitive Parity – Achieved.
• The NFL touts parity—the idea
that any team can win on any
given Sunday. But this
year, parity has truly run wild.
• 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…
62

2030 and Beyond…. Government, Health, Education, Finance, etc.
63

University: Four Missions
• Knowledge
–
–
–
–
1. Transfer (Teaching)
2. Creation (Research)
3. Application (Benefits)
• Commerce/Entrepreneurship
• Governance/Policymaking
4. Re-Integration (Challenge)
• Innovativeness, Equity
• Sustainability, Resilience
Nation
For-profits
• Nested, Networked Holistic Service Systems
– Flows
– Development
– Governance
64
Non-profits
State/Province
City/Metro
U-BEE
Job Creator/Sustainer
Cultural &
Conference
Hotels
University
College
K-12
Worker
Family
(professional)
Hospital
Medical
Research
(household)
Third Mission (Apply to Create Value)
is about U-BEEs =
University-Based
Entrepreneurial Ecosystems

Universities Matter #1
9
Japan
8
y = 0,7489x + 0,3534
R² = 0,719
7
China
Germany
% global GDP
6
5
France
4
United Kingdom
Italy
3
Russia
2
Spain
Canada
India
Mexico
Turkey
1
Brazil
South Korea
Australia
Netherlands
Sweden
0
0
1
2
3
4
5
6
7
8
9
% top 500 universities
Nation’s % WW GDP and % Top 500 Universities (2009 Data)
10/16/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
65

Universities Matter #2
…But it can be costly, American student loan debt is over $900M
10/16/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
66

Universities Matter #3
“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.”
10/16/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
67

Universities Matter #4
What is a U-BEE? A local job creator/sustainer
Innovating “whole service” in all regions worldwide
http://www.service-science.info/archives/1056
Nation
“The future is already
here (at universities),
it is just not evenly
distributed.”
For-profits
State/Province
City/Region
U-BEE
Job Creator/Sustainer
Cultural &
Conference
Hotels
“The best way to
predict the future
is to (inspire the next
generation of students
to) build it better.”
Non-profits
University
College
K-12
Worker
Family
(professional)
Hospital
Medical
Research
(household)
U-BEEs = University-Based Entrepreneurial Ecosystems
10/16/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
68

On Campus IBMers
Up-Skill
Cycle
= New Venture
= Acquisition
= Graduates with
Smarter Planet skills
= IBMer moving from
mature BU to acquisition
= High-Growth
Acquisition/
New IBM BU
(Growing)
= IBMer moving into
University-Region1
On Campus IBMer role
(help create graduates
with Smarter-Planet skills,
help create Smarter Planet
oriented new ventures;
Refresh skills
IBM
University-Region2
69
10/16/2013
= High-Productivity/
Mature IBM BU
(Shrinking)
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
69

Some more strategy…
IBM Platforms for Entrepreneurs
• Smarter Cities Intelligent Operations Center Platform
• IBM helping university startups to scale up (growth)
10/16/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
70

Some Strategy

Some Quotes
• The best way to predict the future is to inspire
the next generation of students to build it better
• The future is already here at universities it is just
not well distributed
• The core values of universities are learning,
discovery, and engagement
• All viable businesses and governments learn to
get smarter at scaling the benefits of new
knowledge to their customers and citizens.

•
•
•
•
•
•
6 R’s
Research (Collaborate)
Readiness (Skills)
Recruiting (Jobs)
Revenue (Solutions)
Responsibility (Volunteers)
Regions (Smarter Cities, Startups & Workforce)
COMMUNICATIONS
PRODUCTS
WORKFORCE
10/16/2013
SUPPLY CHAIN
TRANSPORTATION
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
BUILDINGS
73

What is a T-shaped Student?
Many disciplines
Many sectors
Many regions/cultures
(understanding & communications)
Deep in one region/culture
Deep in one sector
Deep in one discipline
10/16/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
74

10/16/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
75

Goods-Dominant Logic (GDL):
Sector Growth Argument

Tomorrow: “I am the block that will be
made into product X for customer Y.”
• McKinsey.com/Insights (June 2013)
– The “Internet of Things” and the future of manufacturing
• Industrial Revolutions: Manufacturing Tech Platforms
–
–
–
–
1. Steam Engine
2. Conveyor Belt
3. IT and Automation (Phase 1)
4. Internet of Things/Logistics (Phase 2)
• “After the fourth industrial revolution, there will no
longer be a difference between information and
materials, because products will be inextricably linked
to “their” information.”

Today: Servitization
• Rolls Royce: “Power By The Hour”

Servitization
• Start with ay traditional product that is sold to customers
• Make the product part of a smart service system
– Instrument it (sensors)
– Set-up an intelligent operation center to monitor all products’
performance across their life-cycles
– Use big data analytics to determine how to improve product
performance, efficiency, maintenance, etc.
– Offer customer the “product-performance-as-a-service” with
financing
– Customer benefits from cost-savings, predictability
– Provider benefits margin-improvements, predictability
• The product becomes a platform technology for innovative
university startups that teach about it, and research it

My tweets
•
•
•
•
•
•
•
•
•
•
•
rethinking categories of manufacturing as service-like “@McKinsey_MGI: @TheEconomist on
#manufacturing http://t.co/ngsa19EO” Nov 22, 2012
@auerswald pendulum swinging back now “@Forbes: Manufacturing may be coming back to the
U.S. - for the long term. http://t.co/2KcjdrCX” Sep 22, 2012
Baxter the $22K manufacturing robot looks like a butler http://t.co/mbfAKtUn Building robots small
& medium-size companies, mini-computers? Sep 19, 2012
Good read “@wadhwa: Forbes: The End of Chinese Manufacturing & Rebirth of US Industry
http://t.co/vVqD0jFW" watch this http://t.co/SE4uSkB2 Aug 17, 2012
Automating clothing manufacture http://t.co/H9oOONIH Jul 21, 2012
transforming manufacturing product and service innovation with people, process and technology
#cisco http://t.co/UYuxB5zz @SamMikhailCPE Jul 21, 2012
RT @grapealope: "By 2020, everything will be personalized in the manufacturing field." Sophie
Vandebroek (hopefully in healthcare too!) ... Jul 19, 2012
“@SamMikhailCPE: Apple wants U.S. #manufacturing, but it ain't that easy http://t.co/2ftMXejH”
deeper analysis please beyond dorms unions Jul 04, 2012
RT @iftf: How Will Employment Change with the Expansion of New Technologies—like Robotics—in
Manufacturing? - http://t.co/24HeSPmV #Robots Jul 03, 2012
RT @GreenbizStartup: RT @Richard_Florida Japanese revolutionized manufacturing by harnessing
workers' knowledge, now in service http://t ... Jun 27, 2012
Manufacturing as local recycling service http://t.co/RrcLMipv key part of smarter communities
http://t.co/JmnngFDL Jun 20, 2012

My Tweets (Continued)
•
•
•
•
•
•
•
•
•
•
•
RT @4byoung: Tech manufacturing: A disaster waiting to happen? http://t.co/CG3eSR3N Jun
19, 2012
RT @timoreilly: 5% of manufacturing jobs went unfilled last year due to lack of skilled applicants
http://t.co/WNa3Bzol Jun 19, 2012
America makes more today than ever. How&what have changed “@SamMikhailCPE: The Rebirth of
American #Manufacturing http://t.co/qVMoTo64” May 27, 2012
RT @auerswald: RT @emeka_okafor: "Making things with a 3D printer changes the rules of
#manufacturing" http://t.co/ttUZLNYO #3dprinting Apr 20, 2012
“@auerswald: RT @emeka_okafor: 'success of Local Motors, the first open source car?'
http://t.co/ROIoeQ4D...” manufacturing.” micro-factory Mar 14, 2012
Fortune 50 original equipment manufacturers, access to powerful computer tools provides
competitive advantage http://t.co/opzhUU0y Mar 11, 2012
MAKE: An Amercan Manufacturing Movement http://t.co/DjI8nhzr Mar 11, 2012
RT @autodesk: Story by @wadhwa on future of America’s manufacturing sector & the
developments @carlbass sees in defining new jobs http:/ ... Mar 08, 2012
@auerswald between 1995 and 2002 US lost 2M manufacturing jobs; during same period China
lost 15M; Weiner was right "The Coming Peosperity" Mar 06, 2012
Re-industrialize the US? Yes, and here is how - manufacturing as a local recycling service
http://t.co/cIwA2hv7 Mar 05, 2012
RT @HarvardBiz Manufacturing is being transformed - It's Time to Bring Manufacturing Back to the
U.S. http://t.co/oZOYumXT local recycling Feb 28, 2012

My Tweets (Continued)
•
•
•
•
•
•
•
•
•
•
•
RT @KurzweilAINews: Redesigning people: how medtech could expand beyond the injured: The exoskeleton
manufactured by Ekso Bionics in... ... Feb 28, 2012
@livingarchitect manufacturing jobs 8% 2010 to 7% 2020. Professional services health ed predicted to grow the
fastest http://t.co/Y9h3UHjs Feb 08, 2012
@went1955 Historically manufacturing jobs seen as one of few sources of well-paying jobs for less-educated
workers http://t.co/KEFmHXZ3 Feb 05, 2012
RT @went1955: Do Manufacturers Need Special Treatment? – Economist Christina Romer in New York Times –
http://t.co/gUUkYGcJ Feb 05, 2012
RT @rossdawson: RT @DanyDeGrave: Crowdsourced Capital and On-Demand Digital Fabrication #3D
#manufacturing #crowdsourcing http://t.co/04 ... Feb 04, 2012
@auerswald @wadhwa old-style manufacturing jobs going (off-shore to China) going (off-people to automation)
gone (3D printable automation) Feb 01, 2012
RT @auerswald: RT @wadhwa: Over the next few years, we are going to see dramatic changes in
manufacturing, design. Even BYO cars! http:/ ... Feb 01, 2012
RT @daviding: The structural shift from manufacturing economy to service economy can be denied or encouraged
by so... http://t.co/HlhkXf ... Feb 01, 2012
RT @ShaanHurley: Watch @carlbass and @wadhwa discuss education, innovation, and future of manufacturing.
#whichwaynext http://t.co/2NbgiIKL Jan 30, 2012
Future supply chains modular manufacturing with most parts coming from local recycling & a few high-tech
import parts http://t.co/XfuwWbH4 Jan 26, 2012
Long and slow - but worth watching - return to local manufacturing as a service with mini-mills disruptive
innovation http://t.co/dXlfQYRS Jan 26, 2012

My Tweets (continued)
•
•
•
•
•
•
•
•
•
•
•
RT @justinwolfers: Why will Obama single out "an economy built on American manufacturing" in the #SOTU?
What's wrong with those of us wi ... Jan 24, 2012
RT @KurzweilAINews: Microreactors enable safer, more efficient manufacturing: Manufacturing products and
drugs will be safer and mor... ... Jan 23, 2012
@timoreilly @johnmaeda @techreview @ydeologi US makes 19.4% world's manufactured goods—second to
China's 19.8% https://t.co/Uk2isnTj Jan 23, 2012
RT @timoreilly: RT @johnmaeda On the relation between manufacturing & innovation. http://t.co/T5rnzIPv via
@techreview @ydeologi Jan 23, 2012
RT @KurzweilAINews: Raspberry Pi starts manufacturing an ARM GNU/Linux box for $25: Raspberry Pi, a $25
computer, has gone into prod... ... Jan 16, 2012
RT @masscustom: Interesting: Difficulties of established #3dprinting manufacturers to mimik disruptive user
innovation @MakerBot: http:/ ... Jan 15, 2012
RT @auerswald: RT @trueventures: How AI and robotics will change manufacturing http://t.co/HHOqT4Fs from
@wadhwa and VentureBeat Jan 14, 2012
Smart cities rethink mobility http://t.co/807F5KAY MIT Chin's vision local manufacturing of body, in wheel motor
battery grid Jan 08, 2012
RT @Richard_Florida: US total compensation for manufacturing workers now 14th (BLS) abt same as Ireland/ Italy
- @erikbryn - http://t.co ... Dec 30, 2011
RT @erikbryn: My MIT colleague Rod Brooks discusses how America can use robots to compete with China in
manufacturing: http://t.co/JRjx0 ... Dec 23, 2011
@ireneclng good job! "And service systems are evolving. Future services include manufacturing, future of
manufacturing embedded in services" Dec 18, 2011

My Tweets (continued)
•
•
•
•
•
•
The loss of manufacturing jobs often cited as a marker of America’s decline... Dr.
Atala printed a kidney on stage http://t.co/TQQdqM65 Dec 03, 2011
RT @KurzweilAINews: Disruptions: the 3-D printing free-for-all: A 3-D printer at
home will not only change the nature of manufacturi... ... Nov 15, 2011
Building Materials Reuse deconstruction curriculum for community colleges:
manufacturing as a local recycling service http://t.co/1lBuutm Jul 22, 2011 RT
@KurzweilAINews: Manufacturers turn to 3-D printing: This May, General Electric
announced it would “intensify focus” on additive ... ... Jul 22, 2011
Manufacturing as a Local Recycling Service: Janet Unruh has the right idea in
Recycle Everything. See http://www... http://bit.ly/nxg0qw Jul 09, 2011
Manufacturing as a Printing Service: Z Corp Burlington MA from National
Geographic on 3D printing of tools. See http://bit.ly/mYyU5m Jul 09, 2011
Economist Debate: Manufacturing: Can a national economy thrive without a large
manufacturing sector? See the res... http://bit.ly/qfZ0iS Jul 09, 2011

My Tweets: Summary
• Renaissance of Regional Economic Development (RED)
• The Observatory of Economic Complexity

And Beyond… Utility Fog
• Ultimate vision of
material and energy
flows inseparable with
information flows
• Universal Building
Block
– Utility Fog:
Manufactured Things
– Cells:
Living Things

References
• The Circular Economy (Video) – Ellen MacArthur
Foundationhttp://www.youtube.com/watch?v=zCRKvDyyHmI
• The Internet of Things and the future of manufacturing (Interview)
– McKinsey
http://www.mckinsey.com/Insights/Business_Technology/The_
Internet_of_Things_and_the_future_of_manufacturing?cid=ot
her-eml-alt-mip-mck-oth-1306
• Changing the Dominant Logic: http://blog.egonl.com/?m=200902
• Rolls Royce: http://www.economist.com/node/18073351
• The Observatory of Economic Complexity
http://atlas.media.mit.edu
• Utility Fog: http://en.wikipedia.org/wiki/Utility_fog
• Utility Fog: The Stuff That Dreams Are Made Of:
http://www.kurzweilai.net/utility-fog-the-stuff-that-dreams-aremade-of

Silicon Valley: How many places…?
•
•
•
•
Help win a war? Terman
Help launch new industries? Shockley
Help launch many sub-industries? RAMAC
Help improve improvement? Lean Startups
– Steve Blank: Why You Must Test Your Hypotheses
• http://www.youtube.com/watch?v=_w-NUOjwMto
• Boast so many great universities!
– Stanford, Berkeley, UCSC, UCSF, SJSU, etc.

IBM: How many companies…?
•
1. Make it to 100?
–
IBM Centennial Film: 100 X 100 - A century of achievements that have changed the world
•
•
2. Achieve #1 Patents > 20 yrs in a row?
–
Twenty Years
•
–
Watson: Science Behind An Answer
•
–
http://www.youtube.com/watch?v=DywO4zksfXw
5 in 5: New Capabilities
•
http://www.youtube.com/watch?v=YwfJVwknvRo
4.Make ~100 acquisitions of big companies in a decade?
–
Partnerworld
•
•
http://www.youtube.com/watch?v=39jtNUGgmd4
3. Make computers smarter?
–
•
http://www-03.ibm.com/press/us/en/pressrelease/40070.wss
Boy And His Atom
•
•
http://www.youtube.com/watch?v=39jtNUGgmd4
http://www.youtube.com/watch?v=Iivc-7dLLhw
5. Help make a Smarter Planet?
–
Nation by nation, state by state, city by city
•
•
–
http://www.youtube.com/watch?v=2BadLt6XkyA
http://www.youtube.com/watch?v=vuBBGYFonXM
Internet of Thing
•
http://www.youtube.com/watch?v=sfEbMV295Kk

Questions
• What is ISSIP?
• What is a service platform?
• What is service science?
• What is a T-shaped professional?
• How is this related to your work at IBM with universities?
• What are the important future trends you see?

What is ISSIP?
• Pronounced I-ZIP
• International Society
of Service Innovation
Professionals
• SIG Education &
Research
– T-shapes
– Service Science
10/16/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
91

What is a service platform?
• Access Places & Entities
– Scale benefits
– Of new knowledge
– Globally & rapidly
• Smart Phones & Watson
• Smarter City IOC
• Franchises
10/16/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
92

Service Science
• Emerging Discipline
– Service Science,
Management, and
Engineering (SSME)
• Service
– Not sector (ECON)
– Not capability (CS)
• Value Co-Creation
• Service System Entities
10/16/2013
IBM SSME Centennial Icon of Progress
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
93

How do universities fit in?
• Best way to predict
the future is to inspire
the next generation to
build it better
• The future is already
here at universities it
is just not well
distributed
10/16/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
94

Growth
95

Nesting
Matryoska dolls:
Origin Japanese
96

~14B
Big Bang
Evolution of Natural Systems & Service Systems
(Natural
World)
Unraveling the mystery of evolving hierarchical-complexity in new populations…
To discover the world’s architectures and mechanisms for computing non-zero-sum
~10K
Cities
Time
(Human-Made
World)
writing
(symbols and scribes,
stored memory
and knowledge)
written laws
(governance and
stored control)
ECOLOGY
money
(governed
transportable value
stored value,
“economic energy”)
sun (energy)
earth
(molecules &
stored energy)
bacteria
(single-cell life)
bees (social
division-of-labor)
sponges
(multi-cell life)
97
clams (neurons)
trilobites (brains)
200M
transistor
(routine
cognitive work)
universities
(knowledge workers)
60
printing press (books)
steam engine (work)

~100 years of US job transformations
Source: US Bureau of Economic Analysis; McKinsey Global Institute Analysis
98

Context: IBM 101
More than 40% of IBMs
workforce does
business away from an
office
IBM has
~425,000
employees
worldwide
IBM operates in 170 countries
around the globe
2012 Financials
24% of IBMs revenue in
Growth Market countries;  Revenue - $ 104.5B
 Net Income - $ 17.6B
growing at 7% ( @cc) in
2012
 EPS - $ 15.25 (10 yrs of
IBM Growth Initiatives
EPS d/digit growth)
 Net Cash - $18.2B
Acquisitions contribute significantly
to IBM’s growth ; ~120 acquisitions in
last decade
Number 1 in patent
generation for 20
consecutive years ;
6,478 US patents
awarded in 2012
10/16/2013
New Era in IBM’s Leadership
100 Years of Business &
Innovation in 2011
The Smartest Machine On Earth
10 time winner of the
5 Nobel Laureates
President’s National
Medal of Technology &
Innovation – latest for
LASIK laser refractive
surgical techniques
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
99

Technological Acceleration
% Penetration
100
Television
Electricity
Telephone
Radio
Automobile
VCR
50
PC
Cellular
25
0
25
50
75
100
125
Years
YEARS
100
150

Many top in-demand jobs in 2011 did not exist in 2005!
•iPhone/iPad app developer
•wireless marketing director
•microfinance infrastructure designer
•3D content developer for movies, TV
•social network manager
•deploying technology into the cloud
•organic solar cell development
•digital image management
101
101

U.S Department of Labor
estimates that today’s learner
will have 10-14 jobs…
by the age of 38!
102
102


103

103

Estimates are 85% of the jobs today’s learners will be doing
haven’t been invented yet
they'll be using technologies that don't exist
to solve problems we don't yet know are problems

Five historical cycles …
104

Measuring Quality-of-Life?
* = US Labor % in 2009.
A. Systems that focus on flow of things that humans need (~15%*)
1. Transportation & supply chain 2/7/4
2. Water & waste recycling/Climate & Environment
2/1/1
3. Food & products manufacturing
4. Energy & electricity grid/Clean Tech7/6/1
5. Information and Communication Technologies (ICT access)
1/1/0
B. Systems that focus on human activity and development (~70%*)
5/17/27
6. Buildings & construction (smart spaces) (5%*)
7. Retail & hospitality/Media & entertainment/Tourism & sports (23%*)
8. Banking & finance/Business & consulting (wealthy) 1/0/2
(21%*)
24/24/1
9. Healthcare & family life (healthy) (10%*)
10. Education & work life/Professions & entrepreneurship (wise) (9%*)
7/10/3
C. Systems that focus on human governance - security and opportunity (~15%*)
2/20/24
11. Cities & security for families and professionals (property tax)
5/2/2
12. States/regions & commercial development opportunities/investments (sales tax)
13. Nations/NGOs & citizens rights/rules/incentives/policies/laws (income tax)
0/19/0
3/3/1
0/0/0
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)”
105

Data Science +
Urban Science +
Service Science =
Smarter Planet
Jim Spohrer
Director IBM University Programs
June 17, 2013

Sciences & Applied Arts
• All sciences study systems
– Physics, Chemistry, Biology, Information and
Computer Science, Service Science, etc.
• All applied arts change systems
– Management, Engineering, Design Arts, Public
Policy seek to apply rigorous scientific knowledge
to create better worlds to inhabit

ISSIP Introduction to
California Center for Service Science
Yassi Moghddam
Executive Director, ISSIP
yassi@ISSIP.org
twitter: @yassi_moghddam
(408) 318-0332
www.issip.org
2013 ISSIP and/or its affiliates. All rights reserved.
September 13, 2013
108

Who….Founded, July 2012
Ammar Rayes,
President, ISSIP;
Distinguished
Engineer,
Cisco Services
Ana Pinczuk
BOD Member, ISSIP;
SVP Transformation, Cisco
Services
Charlie Bess,
BOD Member, Vice
President, ISSIP;
HP Fellow, and VP
Haluk Demirkan
BOD Member, ISSIP;
Professor University of
Washington
Jim Spohrer
BOD
Member, Secretary, Tre
asure, ISSIP; Director
Global University
Programs, IBM
Ralp Badinelli
BOD Member, ISSIP;
Professor Virginia Tech
Yassi Moghaddam
Executive Director, ISSIP;
Formerly Bell
Labs, AT&T, Lucent, Wells
Fargo, & several startups
Jeff Welser
Vice President Elect, ISSIP;
Director Services
Research, IBM

Why?
BREADTH
DEPTH
• Our world is becoming more
interconnected and complex
• Yet most organizations
operate is silos
• Most professional
organizations do a great job
of focusing on one
discipline, function, or
ISSIP is a professional society designed
industry sector
to focus on the interconnected nature
of value co-creation for smart service
systems (tech, biz, social, etc.)
T-Shape
professionals can
innovate across
traditional
boundaries

Our Mission
“To promote service
innovations for our
interconnected world.”
- Individual Members: > 360
- Institutional members: 3 and growing
- Service Systems:
ICT, Education, Healthcare, Transportati
on, Financials, Energy, Government
- Universities: 55+
- Countries: 37+
Through:
•
•
•
•
•
Professional
Development
Education
Research
Practices
Policy Making
Special
Interest
groups
Ambassadors
Committees
Chapters
Students
Mentorshi
p

ISSIP Special Interest Groups
•
Existing SIGs
–
–
–
–
–
–
Cloud Mobility
Education & Research
Energy and Power
Service Futures
Software Defined Networks
User Experience
• Other topics: must relate to smart
services…. Big Data &
Analytics, IoT, Globalization, Innovation
Tools & Methods, and more…
• SIGs are proposed by members and
approved by the Board of Directors.
Outcomes
•White papers, journal
articles
•Influencing Standards
•Workshops
•Co-sponsoring or
presenting at
conferences
•Surveys
•Research best practices
for smart service systems
112

ISSIP Ambassadors
•
More than 15 Ambassadors
and growing…
•
Link ISSIP to other
professional
associations, research
centers, conferences, etc.
•
Help ISSIP co-sponsor
activities in other conferences
more...
http://www.issip.org/learningcenter/valuen
twork/

Academia-Industry-ISSIP Students
Mentorship
Mentorship
Internship
Job
•
Goal: Co-create a superior mentorship
expience between ISSIP members including
college students academics, industry
professionals, policy makers, and members
of other professional societies
•
Focus: projects that address real business
and societal challenges
•
Platform: pipeline of smart service projects
of mutual interest to:
• Students that make them more competitive for smart
service jobs
• Academicians, for smart services case development,
and research
• For industry partners to test a vetted pool of talent for
hiring
•
Participating Universities so far: Hult SF,
SJSU
•
Participating Companies so far: IBM,
Cisco, HP
Regions 2.0
San Jose State
University, IBM,
Cisco, HP, and ISSIP
now designing new
templates for regional
development through
service innovation!

Professional Development
•
ISSIP Certification, Badges, and Seals
– Certification Committee Chair: Professor Haluk
Demirkan, University of Washington,
– Committee Goals: Lead and define criteria for
ISSIP certifications and badges for
services, solutions, systems, courses and
workshops,
– In the short term:
• “ISSIP Reviewed” already granted through Hult
International School of Business
– Courses, workshops, books, etc.
– In the long term:
• Develop BOK
• Develop testing, certification, and auditing criteria
• Offer professional certifications
•
•
Professional Book Series – BEP, Co-editors:
Dr. Jim Spohrer, Dr. Haluk Demirkan
Developing T-shape assessment instruments Professor Lou Freund, SJSU

Let’s work together…
1. Register at issip.org:
http://www.issip.org/join-thecommunity
2. Inquire about becoming an
institutional member of ISSIP
@ execdir@issip.org
3. Join or start a SIG:
www.issip.org/community/speci
al-interest-groups
4. Become an ISSIP
Ambassador:
http://www.issip.org/community
/ambassadors
5. Join a Committee:
http://www.issip.org/community
/committees
6. Send ideas to
execdir@issip.org
116

Thank you!
Yassi Moghddam
Executive Director, ISSIP
yassi@issip.org
twitter: @yassi_moghddam
(408) 318-0332
www.issip.org
2013 ISSIP and/or its affiliates. All rights reserved.
117

ISSIP Chapters
•
Geographic chapters are
proposed by members and
approved by the Board of
Directors.
•
First Chapter: ISSIP Germany
•
Chapters for
Switzerland, Japan, UK, Italy,
Jordan, Australia, and others
are planned.
ISSIP Germany
118

Committees
• Conferences
Committee
– Oversee ISSIP
Conference activities
• Elections Committee
– Administers ISSIP
Elections
• Nominating
Committee:
– Administers ISSIP
nominations for various
elected positions
• Operations Committee
– Manages the tactical
operations of ISSIP
• Publications
Committee:
– Set guidelines for and
manage ISSIP
publications
• Certification Committee
– Leads and define criteria for
ISSIP certifications and
badges for
services, solutions, systems,
courses and
workshops, develop
BOK, develop testing and
auditing criteria
• Mentorship Committee
– Oversee ISSIP-industryacademia
Student Mentorship Program
• New Members Committee
– Increase quantity of both
Dues Paying members and
Individual members

Today’s Talk
• Vision: MMaaRRSS
–
–
–
–
Modular Manufacturing as a Regional Recirculation Service System
XaaS = Everything as a Service (value co-creation processes)
Near zero waste, everything is an input to some process
Doubling size of economy requires not only higher productivity
construction, but higher productivity deconstruction
• Trends: What’s In The News
– McKinsey, Servitization, My Tweets and Summary
• Innovation Framework: To get us there… and beyond!!!
–
–
–
–
Near Future: Platform Technologies and Smart Service Systems
Far Future: Utility Fog
More on Silicon Valley, IBM, Universities, and Smarter Planet
More on Service Science, Service Innovation, and ISSIP.org

Vision: MMaaRRSS
• Modular Manufacturing as a Regional
Recirculation Service System
– “I am the stuff that will be made into product X for
customer Y.”
– Stuff = Material, Energy, and Information Flows
– Minimize transport costs (for products and waste)
• The Vision: Circular Economy (~4 minutes)

Who I am
• Education & Startups – First Quarter Century
– 1974-78 MIT Physics, Bachelor of Science
– 1978-82 Startup: Verbex (employee #60, bought by Exxon)
– 1982-89 Yale Computer Science, PhD
• Specializing in Artificial Intelligence and Cognitive Science
• Consultant for Intelligent Tutoring System startups
– 1989 University of Rome LaSapienza in Italy, visiting scholar
• Silicon Valley & Big Businesses – Second Quarter Century
– 1989-98 Apple Computer
• Distinguished Engineer Scientist Technologist
• Learning Technologies (e.g., EOE, E/W Authoring Tools, WorldBoard, etc.)
– 1998-Present IBM
•
•
•
•
•
User Experience Research (1998-99)
Founding CTO IBM Venture Capital Group (1999-2002)
Founding Director IBM Service Science Research Group (2002-07)
Innovation Champion & Director Global University Programs (Since 2007)
ISSIP, non-profit Service Innovation Professionals, Board of Directors (Since 2012)

EDUCAUSE Review Article
Spohrer, J., Fodell, D., & Murphy, W. (2012). Ten
Reasons Service Science Matters to Universities.
EDUCAUSE Review, 47(6), 52-54.

Service-Dominant Logic (SDL):
Actor Competitiveness Argument
• Vargo, S. L., & Akaka, M. A. (2009). Service-dominant logic
as a foundation for service science: clarifications. Service
Science, 1(1), 32-41.

A2A Interactions:
Competing for Collaborators
• Collaborators: Customers, Suppliers, Employees, Partners, etc.
• FP4 Operant Resources & FP9 Resource Integration
– Operant resources are the fundamental source of competitive advantage
– All social and economic actors are resource integrators
• From an upcoming Vargo & Lusch Publication:
– “Not only do business enterprises and households engage in resource
integration, transformation, and exchange of service, but government
agencies, schools, and a host of other nonprofit organizations do so as well.”
– “As a broad, abstract perspective, businesses, households, and other
organizations engage in the acquisition, integration, and transformation of
resources to create new resources and then use these new resources in
exchange with other actors to co-create value. This perspective begins to
direct attention to viewing businesses, households, and other organizations,
including nonprofits and governments, as essentially and abstractly identical.
This insight led us to define exchange and exchange systems in terms of actorto-actor (A2A) interactions.”

Today’s Talk
•
•
•
•
•
•
•
Definitions
Sciences & Applied Arts
Ten Reasons
Progress To Date
What’s Next?
IBM Example
Future Trends

Definitions
• Service
– The application of knowledge for mutual benefits
– Value co-creation phenomena between entities
• Service Innovations
– Scale the benefits of new knowledge globally, rapidly, profitably
– Platforms can help, e.g., smart phones, franchises, etc.
– Growth businesses seek to scale benefits of knowledge
• Service System Entities
– Business and societal systems with capabilities, rights, and
responsibilities
– Dynamic configurations of
people, technology, organizations, and information linked by
value propositions

Definitions
• Service Science
– Study of service and service systems
– Measures:
Quality, Productivity, Compliance, Innovativeness, Sust
ainability, Resilience, Competitive Parity
• SSME
– Service Science, Management, and Engineering
• SSME+DAPP
– SSME + Design Arts and Public Policy
– “Big Tent”

Sciences & Applied Arts
• All sciences study systems
– Physics, Chemistry, Biology, Information and
Computer Science, Service Science, etc.
– Evolution of entities, interactions, outcomes
– Discover abstract universal patterns
• All applied arts change systems
– Management, Engineering, Design Arts, Public
Policy seek to apply rigorous scientific knowledge
to create better worlds to inhabit

Definitions
• Transdiscipline
– Borrows from disciplines without replacing them
• T-Shaped Service Innovation Professionals
– Depth and Breadth: Disciplines, Sectors, Cultures
– Adaptive Capacity and Boundary Spanners
• ISSIP
– International Society for Service Innovation
Professionals
– Pronounced I-ZIP
– An umbrella professional association

What is a T-shaped Professional?
Many disciplines
Many sectors
Many regions/cultures
(understanding & communications)
Deep in one region/culture
Deep in one sector
Deep in one discipline
10/16/2013
© IBM 2013 IBM University Programs worldwide
accelerating regional development (IBM UPward)
131

www.ISSIP.org
• Pronounced I-ZIP
• International Society of
Service Innovation
Professionals
• Service is the application
of knowledge for mutual
benefitis (value cocreation phenomena)
• Service innovations scale
the benefits of new
knowledge globally and
rapidly.
10/16/2013
© IBM 2013 IBM University Programs worldwide
accelerating regional development (IBM UPward)
132

Ten Competitiveness Reasons:
Regional Skills & Infrastructure
Skill Need
Service Science Topics
Big Data
Instrumenting Service Systems
Cloud Computing
Interconnecting Service Systems
Cognitive Computing
Intelligent Service Systems
Platforms
Scaling Service Systems & Faster Revenue Growth
Social & Mobile
Instrumented People as Service Systems (Open Data)
Cybersecurity
Security of Private Information in Service System
Business Models
Digital Age Business Models for Service Systems
Sustainability
Cities as Higher Quality-of-Life Service Systems
Entrepreneurism
Universities as More Competitive Service Systems
Regional Flows
Circular Economy of Regional Service Systems

Progress Indicators
• Other Sciences
–
–
–
–
Computer Science (30 years)
Data Science (Hadoop)
Urban Science (Scale Law)
Service Science (S-D Logic)
• Service Science
–
–
–
–
–
Courses & Degree Programs (>500)
Conferences (>25)
Journals, Articles, Papers, Books & Citations (>10,000)
Professional Associations (>25)
Government & Business Investment (>$5B)

The Well-Read Service Scientist
• http://service-science.info/archives/2708

What’s Next?
•
•
•
•
•
Better Open Data Sets & Simulation Tools
Better Textbooks & Education Materials
Better Frameworks & Entity Architectures
Better Theories & Models
New Discoveries
– Scale Laws & “Periodic Table” of Entities
– Comparative Parity & Learning Curves
– Innovation Methods & Investment Strategies

Service Science Article
Spohrer, J., Piciocchi, P., & Bassano, C. (2012). Three frameworks for service research: exploring
multilevel governance in nested, networked systems. Service Science, 4(2), 147-160.
If some entity architectures (EN and frameworks (FN) are better than others, then professionals working
to solve real-world problems (PRW) might benefit, and generate better sets of recommendations (RE).

Service Science
• The transdisciplinary study of service, the
application of knowledge for mutual benefits
(value co-creation phenomena), in an evolving
ecology of interacting many-tomany, nested, networked viable service
system entities.

Observations
• Every nation/state/city-university I talk to:
– We need help creating high skill, high pay jobs of the
future.
– We need help keeping our top talent from moving away
after graduation from university
• Every business I talk to:
– We need help scaling the benefits of new knowledge and
innovation globally, rapidly, profitably
– We need help making our employees and ecosystem more
innovative
– We would rather hire people with some entrepreneurial
experience (even if failed) than recent graduates, with no
entrepreneurial experience.

Holistic Service Systems (HSS)
http://www.service-science.info/archives/1056
Nation
“The future is already
here (at universities),
it is just not evenly
distributed.”
For-profits
State/Province
City/Region
U-BEE
Job Creator/Sustainer
Cultural &
Conference
Hotels
“The best way to
predict the future
is to (inspire the next
generation of students
to) build it better.”
Non-profits
University
College
K-12
Worker
Family
(professional )
(household)
Hospital
Medical
Research
“Multilevel nested,
networked
holistic service
systems (HSS)
that provision
whole service (WS) to
the people inside them.
WS includes
flows (transportation,
water, food, energy, com
development (buildings,
retail ,finance, health,
education),
and governance (city,
state, nation). ”
U-BEEs = University-Based Entrepreneurial Ecosystems
10/16/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
140

“Order of Magnitude Observation”:
Unique Time in Human History
Type:
Classes
Order
Tokens:
Instances
Individuals
Institutions
Planet
10**0
1
10B
Forbes 50
Continent
10**1
10
1B
F 1000
Nation
10**2
100
100M
F 2000
State
10**3
1000
10M
utilities
Metro
10**4
10,000
1M
uni’s
City
10**5
100,000
100,000
colleges
District
10**6
1M
10,000
hospitals
Community
10**7
10M
1000
schools
Street
10**8
100M
100
parks
Family
10**9
1B
10
Person
10**10 10B
1
Infrastructure
Information
PRISM
nuclear
gas
solar
HAT
Soc. Med.

GDL & SDL
GDL Reasons: Sector Growth Argument
SDL Reasons: Actor Competitiveness
Argument
Service Economy
Planet-wide Actors
Servitization/XaaS (Everything asa
Service)
Continental Unions as Actors (HSS)
Globalization
Nations as Actors (HSS)
Demographics
States as Actors (HSS)
Urbanization
Metros/Counties as Actors (HSS)
Social Services
Cities as Actors (HSS)
Financial Services
Districts as Actors (HSS)
IT Platforms & Services
Communities as Actors (HSS)
B2B Services
Streets/Apart. Buildings as Actors (HSS)
Service Innovation Needs
Families as Actors (HSS)
Individuals as Actors

Silicon Valley:
Past, Present, and Future
Steve Blank
www.steveblank.com
Twitter: sgblank

The Popular View of Silicon Valley
History
Marc Andreessen
Steve Jobs
Moore/Noyce
Hewlett & Packard
Internet
Personal
Computers
Integrated
Circuits
Fruit
Orchards
Innovation Networks
Fruit
Orchards
Fruit
Orchards
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000

The Real Story of Silicon Valley
History
Internet
Personal
Computers
Integrated
Circuits
Microwaves/
Defense
Innovation Networks
Test
Equipment
Vacuum
Tubes
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000

Terman and the Cold War
Silicon Valley’s 1st Engine of Entrepreneurship
Entrepreneurs
Military
Finance
Crisis
Profit
Motivation
Culture
Cooperative
Entrepreneurial
Outward-Facing
Tech Universities
Risk Capital
Free flow of
People/Information
Infrastructure
24/7 Utilities
Predictable
Economic System
Stable
Legal System
Technical
Labs/Universities
Steve Blank 23 Sept 2008

Venture Capital
Silicon Valley’s 2nd Engine of Entrepreneurship
Entrepreneurs
Venture
Finance
Crisis
Profit
Motivation
Culture
Cooperative
Entrepreneurial
Outward-Facing
Tech Universities
Risk Capital
Free flow of
People/Information
Infrastructure
24/7 Utilities
Predictable
Economic System
Stable
Legal System
Technical
Labs/Universities
Steve Blank 23 Sept 2008