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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

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Ic serv japan 20131016 v2

  • 1. Service Science and Serviceology Dr. James C. (“Jim”) Spohrer IBM Innovation Champion Director, IBM Global University Programs ICServ 2013, Tokyo, Japan, October 16, 2013
  • 2. ICServ 2013 Organizing Committee Masaaki MOCHIMARU
  • 3. Service Amplification Prof. Hiroyuki YOSHIKAWA Yoshikawa, H. (2008). Introduction to service engineering. Synthesiology–English edition, 1(2), 103-113.
  • 4. 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
  • 5. ISSIP Ambassadors Global Network (http://www.issip.org)
  • 6. The Well-Read Service Scientist (The top 300 papers – together over 100,000 citations) • http://service-science.info/archives/2708
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. Welcome to the new age of platform technologies and smarter service systems for every sector of business and society nested, networks systems
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. Today’s Talk: S4SP • Some statistics and brief discipline histories • Some quotes • Some strategy – Sciences and Applied Arts: IBM UP Strategy • Some possible futures
  • 18. 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
  • 19. 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
  • 20. 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
  • 21. 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
  • 22. 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.”
  • 23. 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.”
  • 24. 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
  • 25. Urban Science • Urban science is an interdisciplinary field that studies diverse urban issues and problems
  • 26. 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.
  • 27. 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
  • 28. 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.
  • 30. Welcome to the new age of platform technologies and smarter service systems for every sector of business and society nested, networks systems
  • 31. Technology Platforms and Smarter Service Systems Rapidly Scale The Benefits of New Knowledge: Customers As Co-Creators Spreads Faster Than Customers as Consumers
  • 32.
  • 33. 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.)
  • 34. 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
  • 35. 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
  • 36. 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
  • 37. What’s UP at IBM? 37
  • 38. Those in-the-know say, “IBM is helping to build a Smarter Planet…” 38
  • 39. 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
  • 44. 44
  • 45. 45
  • 46. Four commandments for cities of the future: Eduardo Paes at TED2012 46
  • 47. SC IOC as a Platform for Innovation 47
  • 48.   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
  • 49. What are the trends? Digital Immigrant Born: 1988 Graduated College: 2012 49 Digital Native Born: 2012 Enters College: 2030
  • 50. Transportation: Self-driving cars Steve Mahan: Test “Driver” 50
  • 52. Manufacturing: Circular Economy Baxter: Building the Future Ryan Chin: Urban Mobility 52 Maker-Bot: Replicator 2
  • 55. 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
  • 56. Buildings: Circular Economy China Broad Group: 30 Stories in 15 Days 56
  • 57. Retail & Hospitality: Social Media 57
  • 59. Health: Robotics & 3D Printing 59
  • 61. Government: Parameterized Meta-Rules • Innovativeness • Equity – Improve weakest link • Sustainability • Resiliency 61
  • 62. 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
  • 63. 2030 and Beyond…. Government, Health, Education, Finance, etc. 63
  • 64. 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
  • 65. 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
  • 66. 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
  • 67. 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
  • 68. 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
  • 69. 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
  • 70. 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
  • 72. 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.
  • 73. • • • • • • 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
  • 74. 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
  • 75. 10/16/2013 © IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward) 75
  • 77. 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.”
  • 78. Today: Servitization • Rolls Royce: “Power By The Hour”
  • 79. 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
  • 80. 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
  • 81. 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
  • 82. 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
  • 83. 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
  • 84. 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
  • 85. My Tweets: Summary • Renaissance of Regional Economic Development (RED) • The Observatory of Economic Complexity
  • 86. 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
  • 87. 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
  • 88. 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.
  • 89. 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
  • 90. 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?
  • 91. 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
  • 92. 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
  • 93. 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
  • 94. 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
  • 97. ~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)
  • 98. ~100 years of US job transformations Source: US Bureau of Economic Analysis; McKinsey Global Institute Analysis 98
  • 99. 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
  • 101. 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
  • 102. U.S Department of Labor estimates that today’s learner will have 10-14 jobs… by the age of 38! 102 102
  • 103.  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
  • 105. 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
  • 106. Data Science + Urban Science + Service Science = Smarter Planet Jim Spohrer Director IBM University Programs June 17, 2013
  • 107. 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
  • 108. 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
  • 109. 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
  • 110. 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
  • 111. 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
  • 112. 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
  • 113. 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/
  • 114. 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!
  • 115. 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
  • 116. 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
  • 117. 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
  • 118. 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
  • 119. 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
  • 120. 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
  • 121. 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)
  • 122. 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)
  • 123. EDUCAUSE Review Article Spohrer, J., Fodell, D., & Murphy, W. (2012). Ten Reasons Service Science Matters to Universities. EDUCAUSE Review, 47(6), 52-54.
  • 124. 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.
  • 125. 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.”
  • 126. Today’s Talk • • • • • • • Definitions Sciences & Applied Arts Ten Reasons Progress To Date What’s Next? IBM Example Future Trends
  • 127. 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
  • 128. 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”
  • 129. 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
  • 130. 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
  • 131. 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
  • 132. 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
  • 133. 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
  • 134. 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)
  • 135. The Well-Read Service Scientist • http://service-science.info/archives/2708
  • 136. 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
  • 137. 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).
  • 138. 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.
  • 139. 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.
  • 140. 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
  • 141. “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.
  • 142. 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
  • 143. Silicon Valley: Past, Present, and Future Steve Blank www.steveblank.com Twitter: sgblank
  • 144. 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
  • 145. 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
  • 146. 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
  • 147. 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

Editor's Notes

  1. Introduction to Service Engineering:http://www.aist.go.jp/aist_e/research_results/publications/synthesiology_e/vol1_no2/vol01_02_p103_p113.pdfVideo:http://www.youtube.com/watch?v=SocTRKPaj24
  2. There is a conference nearly every week, and approx. ten publication every day…Service Science Knowledge Environmenthttp://sske.cloud.upb.ro/sskemw/index.php/Main_Page
  3. Bastiat: Economic HarmoniesRicardo: Principles of Political Economy and TaxationClark: Conditions of Economic ProgressRiordan: Stochastic Service Systems
  4. Individuals with smartphonesDrivers in driveless carsHome owners in smart rooms in their smart housesOccupants of smart buildings, sometimes 30 story smart buildings built in just 15 daysPatients, doctors, and nurses in smart hospitals and operating roomsTechnicians monitoring multiples aspects of from a smarter city intelligent operations centersSmall retail businesses taking credit card purchses on their smart phones
  5. Request to use: spohrer@us.ibm.comAlso downloadablefrom:http://www.slideshare.net/spohrer/picmet-20130801-v2
  6. Kids today are increasingly empowered to contribute to discoveries and change the worldhttp://www.kartendesign.com/5740/fast-company-covers-karten-designs-project-with-the-da-vinci-design-school/
  7. Analysis of 300+ PICMET 2013 Abstracts
  8. Analysis of 300+ PICMET203 abstracts
  9. The sciences that study systems that nature has evolved do not include the word “science”The sciences that study systems that our species has designed do include the word “science”Complexity Science, Organization Science, Social Sciences study both naturally evolved and human designed systemsSystems Science is perhaps the most general of the sciences – and studies all types of systems from a transdisciplary perspective.Both sciences and applied arts are driven by imagination, data and experience play a role, but imagination (i.e., creativity) is the fundamental driver of progress (i.e., better explanation of systems) and change (i.e., better change that does more with less).
  10. See http://www. service-science.info/archives/3138
  11. http://en.wikipedia.org/wiki/Data_sciencePagerank (map-reduce & hadoop) – helping people find what they are most likely looking forRecommendation systems – helping people find what they most likely want to buyData Science Manhttp://m.computing.co.uk/ctg/news/2274485/unknown-unknowns-are-the-future-of-data-science
  12. 35 Zettabytes - IDC
  13. http://www.santafe.edu/research/cities-scaling-and-sustainability/Cities get larger wealth creation and innovation get faster2x size in city 15% increase wealth, innovation, negative effectsCities shrink time and space, and concentrate and accelerate social interactionsNetwork constraints …
  14. Ricardo’s law of association of comparative advantage (beyond division of labor, includes learning curve effects – do more of what you do best, less of what you do least well)Outsourcing and self-service upward spiral of capabilities (employee productivity improvements lead to customer-self-service)Improve strongest and weakest network links capabilities (swim-lane competitions accelerate learning and balance routine (boredom) and challenge (anxiety))
  15. Individuals with smartphonesDrivers in driveless carsHome owners in smart rooms in their smart housesOccupants of smart buildings, sometimes 30 story smart buildings built in just 15 daysPatients, doctors, and nurses in smart hospitals and operating roomsTechnicians monitoring multiples aspects of from a smarter city intelligent operations centersSmall retail businesses taking credit card purchses on their smart phones
  16. API (Application Programmer Interface)PSS (Performance Support System)DSS (Decision Support System)CRM (Customer Relationship Management)ERP (Enterprise Resource Management)HCM (Human Capital Management)SCM (Supply Chain Manaagement)PRM (Performance and Risk Management)EC2 (Elastic Cloud Computing)
  17. RED (Regional Economic Development)ROI (Return on Investment)SBIR (Small Business Innovation and Research)IRB (Industrial and Regional Benefits)
  18. T-shaped students have depth and breadth, which increases both their innovation capacity and adaptive capacity – making them more employable and better potential entrepreneurs
  19. 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.jspAnalysis: Antonio Fischetto and Giovanna Lella (URome, Italy) students visiting IBM AlmadenDynamicgraphybased on Swissstudents work:http://www.upload-it.fr/files/1513639149/graph.htmlUS isstill “off the chart” – China projected to be “off the chart” in lessthan 10 years: US % of WW Top-RankedUniversities: 30,3 % US % of WW GDP: 23,3 %CorrelatingNation’s (2004) % of WW GDP to % of WW Top-Ranked UniversitiesUS isliterally “off the chart” – butincluding US make high correlationevenhigher: US % of WW Top-RankedUniversities: 33,865 % US % of WW GDP: 28,365 %
  20. http://www.bls.gov/emp/ep_chart_001.htmhttp://theeconomiccollapseblog.com/archives/student-loan-debt-hell-21-statistics-that-will-make-you-think-twice-about-going-to-collegePosted 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 "Academically Adrift: Limited Learning on College Campuses", 45 percent of U.S. college students exhibit "no significant gains in learning" 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.#835% of U.S. college students spend 5 hours or less studying per week.#950% of U.S. college students have never taken a class where they had to write more than 20 pages.#1032% 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's degree within four years.#13Nearly 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.#15One-third of all college graduates end up taking jobs that don'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 "real world", 70% of college graduates wish that they had spent more time preparing for the "real world" while they were still in school.#21Approximately 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-11102002About 65 percent of individuals with bachelor's degrees in STEM subjects commanded greater salaries than those with master's degrees in non-STEM fields, according to a Georgetown press release. Likewise, 47 percent of college graduates with bachelor's degrees in STEM fields earn higher wages than those with doctoral degrees in non-STEM subjects.
  21. Edu-Impact.Com: Growing Importance of Universities with Large, Growing EndowmentsRecently visited Yang building at StanfordOne of the greenest buildings on the planetBut if it does not evolve in 20 years it will not be the greenest buildingVisited 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…
  22. 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>50% GDP WWFamilies/Households (~1B)Persons (~10B)Balance/ImproveQuality of Life, generation after generationGDP/CapitaQuality of ServiceCustomer ExperienceQuality of JobsEmployee ExperienceQuality of Investment-OpportunitiesOwner ExperienceEntrepreneurial ExperienceSustainabilityGDP/Energy-Unit% Fossil% RenewableGDP/Mass-Unit% New Inputs% Recycled Inputs
  23. The Up-Skill CyclePeople flow through the system of entities… As they flow they are upskilled….Entities:Mature IBM Business Unit: From mature-business unitAcquired-IBM Business Unit: From IBM “acquired company” business unitUniversity: From university roleVenture: From venture that spun off from a universityOther: None of the aboveOne possible pathA long-time IBMer is in an IBM business unit doing, say “finance”The IBMer’s business unit receives the 5% annual budget cutThe IBMer moves to a new IBM acquisition to help the new acquisition adopt/learn IBM finance proceduresAfter that the IBMer moves to a university as an IBMer on CampusThe IBMer might work in a department/discipline, in the university incubator, or a university start-up, or even be a student at the universityEventually the IBMer signs up to be pat of a new venture that is spinning off from the universityThe new venture is aligned with IBM via HW, SW, or other IBM offerings/strategyIBM helps scale up the new venture globalIBM might decide to acquire the new ventureThe IBM in the acquired new venture helps the new venture become a high growth business unit of IBMAfter the new IBM business unit asymptotes on revenue and profit improves, it has become a mature business unitNow 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 cutTransitions:Self-loop IBMer stays in mature business unitIBMer transitions from mature business unit to a newly acquired IBM acquisitionIBMer transitions from mature business unit to a university roleIBMer transitions from mature business unit to a new venture that spun off from a universityIBMer transitions from mature business unit to an entity not mentioned above (some where else)
  24. Synopsis:All the programs fall within the 6 R's of IBM University Programs (IBM UP)... R = Research (Awards: University Relations) R = Readiness (Skills: Academic Initiatives) R = Recruiting (Internships & Jobs: IBM Global Centers) R = Revenue (Solutions: Super-Computers to Asset/Risk Management) R = Responsibility (Volunteers: On Campus IBMers & Smarter Cities Challenge) R = Regions (Startups & Jobs: Smart Camp Challenge)Examples:Our best university relationships are when all 6 R's are active - some examples... NYU Center for Urban Science and Progress: http://cusp.nyu.edu/partners/ OSU Big Data Analytics Center: http://www.forbes.com/sites/tomgroenfeldt/2012/11/29/ibm-and-ohio-state-university-get-analytical/ KIT Karlsruhe Service Research Institute: http://www.ksri.kit.edu/Default.aspx?PageId=273&lang=enIBM University Programs (the 6 R’s of IBM UP) include:1. Research (ibm.com/university/awards)2. Readiness (ibm.com/developerworks/university/academicinitiative/)3. Recruiting (ibm.com/jobs or ibm.com/developerworks/university/students/)4. Revenue (ibm.com/education and ibm.com/systems)5. Responsibility (ibm.com/responsibility, ibm.com/ibm/ondemandcommunity and en.wikipedia.org/wiki/World_Community_Grid)6. Regions (ibm.com/partnerworld/isv/startup)Local “On Campus IBMers”(where available) help with the above…
  25. - What is a T-shaped professional?T-shaped professionals have both depth and breadth.An I-shaped professional may be an expert, but lacks skills for interacting with other disciplines, sectors, and/or regions/cultures.Pi-shapes and M-shapes have depth in two or three areas, but most employees today are I-shapes.An organization or nation with more T-shapes is more likely to have higher performance teamwork as well as more boundary spanning innovations.The T-shaped metaphor has been used for at least a couple decades, but ISSIP is working on making the concept more rigorous.=======From I to T to Pi-shapes … and beyond! IBM needs graduates who can work on multidisciplinary, multisector, multicultural teams… T-shapes have depth and breadth … Disciplines from computer science to marketing to social sciences to arts & humanitiesSectors from transportation to energy to healthcare to governmentCultures from US to Europe to China to India to Latin America to Africa to Middle East and more!!
  26. Service science matter more than even because:Growth of service sector GDP and Labor ForceLet’s get as good at service innovation as we are at product and process innovation. Service quality and service productivity become important measures.http://en.wikipedia.org/wiki/Service_economy
  27. http://www.mckinsey.com/Insights/Business_Technology/The_Internet_of_Things_and_the_future_of_manufacturing?cid=other-eml-alt-mip-mck-oth-1306
  28. The key is to think of everything in term of the data/information associated with it across it complete life-cycle form cradle-to-cradle, and redo the business model to benefit provider-customer-and-other stakeholdersChanging the Dominant Logic: http://blog.egonl.com/?m=200902Rolls Royce: http://www.economist.com/node/18073351
  29. The Observatory of Economic Complexityhttp://atlas.media.mit.eduRegions that innovate in many areas gain an innovation advantageT-Shaped or Pi-Shaped or M-Shaped regions…Specialization, plus BreadthLocal material flows and global information flowsSpecialized regions make profit by exporting information about their specialized areas and improvements (smarter service systems) for others to copy
  30. Utility Fog: http://en.wikipedia.org/wiki/Utility_fogUtility Fog: The Stuff That Dreams Are Made Of: http://www.kurzweilai.net/utility-fog-the-stuff-that-dreams-are-made-of
  31. - What is ISSIP?ISSIP = the International Society of Service Innovation ProfessionalsISSIP is pronounced I-ZIPISSIP was founded by industry and academic collaborators to promote service innovations for an interconnected world.AmmarRayes, a Cisco DE, is the founding President of ISSIP.Charlie Bess, an HP Fellow, is the founding Vice President of ISSIP.Jeff Welser, Director IBM Almaden Service Research, is the VP elect for ISSIP.I am one of the founding Board members, as well as chair of the ISSIP SIG Education and Research.ISSIP SIG Education and Research aims to increase the quantity and quality of service science related courses and degree programs.ISSIP SIG Education and Research aims to increase the number of T-shaped service innovators in business and society.
  32. - What is a service platform?A service platform provides access to places and entities to scale the benefits of new knowledge globally and rapidly.IBM’s Watson natural language and question answering capability will become available for smart phone app developers as a service platform.Watson specializes in ranking queries that related semantic classes and instances, so for the classes “Explorers” and “Dates” - the instance “Columbus” is highly correlated with “1492″ and less so with “1506″ and “1451″.IBM Smarter Cities Intelligent Operations Center is a service platform for scaling business solutions that improve the performance of urban regions.IBM itself can be viewed as a service platform for scaling businesses and solutions with some 120 acquisitions in the last ten years alone.Pharmaceutical companies be viewed as service platforms for scaling the benefits of new molecules.Franchises are service platforms for scaling the benefits of new knowledge globally and rapidly.Cities with high use airports can become negative-service platforms when they scale human viruses negative consequences globally and rapidly.
  33. - What is service science?ISSIP embraces the service-dominant-logic definition of service.Service is defined, not as the tertiary economic sector, but more generally as the application of knowledge for mutual benefits.Service innovations scale the benefits of new knowledge, globally and rapidly (and for businesses profitably).Service innovations includes technology platforms (e.g., smart phones), organizational platforms (e.g., franchises) and others platforms for scaling.Service science is the rigorous study of service systems and value co-creation phenomena, both collaborative and competitive mechanisms.Value co-creation is a kind of win-win outcome – for example, when customers build their own furniture they can get higher quality components, but lower costs.Performance measures of service systems include quality, productivity, compliance, and innovativeness.Types of service systems entities include people, businesses, universities, cities, states, and nations.Performance measures of a service ecology include resilience, sustainability, competitive parity, and quality-of-life (learning rates & knowledge burden).
  34. - How is this related to your work at IBM with universities?At IBM I helped start IBM’s Venture Capital Group, Service Research area in IBM Research, and now run IBM’s University Programs worldwide.IBM University Programs is concerned with the 6 R’s – research, readiness (skills), recruiting, revenue (universities are like small cities), responsibility, and regions.Part of IBM Smarter Planet strategy is to help universities increase the quantity and quality of start-ups (Smart Camps).IBM also wants to help start-ups scale up globally and rapidly.Universities are the most important drivers of innovation in a knowledge economy, and more and more startups come from universities.Many businesses instead of hiring a student with a new degree, would rather hire that same student after they have entrepreneurial experience, even if the start-up failed.Most start-ups fail, but they create T-shaped people – which is what businesses want to improve performance of teams and boundary spanning innovations.IBM acquires about one company a month for last ten years (see the IBM M&A wikipedia page)By one estimate, 2/3 of these acquisitions started in a university-based entrepreneurial ecosystem.SSME (Service Science Management and Engineering), Smarter Planet, Big Data Analytics, Data Science, Smarter Cities, and Urban Science – are all related.IBM University Programs uses the 6 R’s to advance IBM’s Smarter Planet strategy, and increase the number of T-shaped innovators.
  35. Big Data in business has grown over 60 years from ~10MB to 100PB or a billion times :MB -> GB -> TB –> PB All that Big Data from 1950 can easily be handled by one person’s smart phoneService science is now taught in over 500 universities that we know of and probably at least 2x more that we don’t know about…The number of service science conferences and service science related journals has also expanded
  36. From IBM Christopher BishopGlobally interconnectedData from embedded devicesDriving new and evolving business models
  37. From IBM Christopher Bishop
  38. Permission to use granted on request to: spohrer@us.ibm.comReference presentation as:Spohrer, JC (2013) Data Science + Urban Science + Service Science = Smarter Planet. Milano, Italy. Monday June 17, 2013. URL: http://www.slideshare.net/spohrer/data-urban-service-science-20130617-v2
  39. The sciences that study systems that nature has evolved do not include the word “science”The sciences that study systems that our species has designed do include the word “science”Complexity Science, Organization Science, Social Sciences study both naturally evolved and human designed systemsSystems Science is perhaps the most general of the sciences – and studies all types of systems from a transdisciplary perspective.Both sciences and applied arts are driven by imagination, data and experience play a role, but imagination (i.e., creativity) is the fundamental driver of progress (i.e., better explanation of systems) and change (i.e., better change that does more with less).
  40. The Circular Economy http://www.youtube.com/watch?v=zCRKvDyyHmI
  41. I have nine patents and over 90 publications (h-index 31) http://scholar.google.com/citations?user=7T2Pz1YAAAAJ&hl=en&oi=aohttp://service-science.info/archives/2233http://en.wikipedia.org/wiki/Jim_SpohrerContact:IBM Almaden Research Center, 650 Harry Road, San Jose, CA 95120 USA
spohrer@us.ibm.com 408-927-1928 (office)
spohrer@gmail.com 408-829-3112 (iPhone)
Skype: james.clinton.spohrerLinkedIn: Jim Spohrer (http://www.linkedin.com/in/spohrer/)
Twitter: @JimSpohrer (https://twitter.com/JimSpohrer)
Bio: http://en.wikipedia.org/wiki/Jim_Spohrer
Blog: http://www.service-science.info
Slides: http://www.slideshare.net/spohrerBio:
Dr. James (“Jim”) C. Spohrer is IBM Innovation Champion and Director of IBM University Programs (IBM UP). Jim works to align IBM and universities globally for innovation amplification.   Previously, Jim helped to found IBM’s first Service Research group, the global Service Science community, and was founding CTO of IBM’s Venture Capital Relations Group in Silicon Valley.  During the 1990’s while at Apple Computer, he was awarded Apple’s Distinguished Engineer Scientist and Technology title for his work on next generation learning platforms.  Jim has a PhD in Computer Science/Artificial Intelligence from Yale, and BS in Physics from MIT. His current research priorities include applying service science to study nested, networked holistic service systems, such as cities and universities. He has more than ninety publications and been awarded nine patents.
  42. Spohrer, J., Fodell, D., & Murphy, W. (2012). Ten Reasons Service Science Matters to Universities. EDUCAUSE Review, 47(6), 52-54.
  43. Vargo, S. L., & Akaka, M. A. (2009). Service-dominant logic as a foundation for service science: clarifications. Service Science, 1(1), 32-41.
  44. The sciences that study systems that nature has evolved do not include the word “science”The sciences that study systems that our species has designed do include the word “science”Complexity Science, Organization Science, Social Sciences study both naturally evolved and human designed systemsSystems Science is perhaps the most general of the sciences – and studies all types of systems from a transdisciplary perspective.Both sciences and applied arts are driven by imagination, data and experience play a role, but imagination (i.e., creativity) is the fundamental driver of progress (i.e., better explanation of systems) and change (i.e., better change that does more with less).
  45. - What is a T-shaped professional?T-shaped professionals have both depth and breadth.An I-shaped professional may be an expert, but lacks skills for interacting with other disciplines, sectors, and/or regions/cultures.Pi-shapes and M-shapes have depth in two or three areas, but most employees today are I-shapes.An organization or nation with more T-shapes is more likely to have higher performance teamwork as well as more boundary spanning innovations.The T-shaped metaphor has been used for at least a couple decades, but ISSIP is working on making the concept more rigorous.=======From I to T to Pi-shapes … and beyond! IBM needs graduates who can work on multidisciplinary, multisector, multicultural teams… T-shapes have depth and breadth … Disciplines from computer science to marketing to social sciences to arts & humanitiesSectors from transportation to energy to healthcare to governmentCultures from US to Europe to China to India to Latin America to Africa to Middle East and more!!
  46. - What is ISSIP?ISSIP = the International Society of Service Innovation ProfessionalsISSIP is pronounced I-ZIPISSIP was founded by industry and academic collaborators to promote service innovations for an interconnected world.AmmarRayes, a Cisco DE, is the founding President of ISSIP.Charlie Bess, an HP Fellow, is the founding Vice President of ISSIP.Jeff Welser, Director IBM Almaden Service Research, is the VP elect for ISSIP.I am one of the founding Board members, as well as chair of the ISSIP SIG Education and Research.ISSIP SIG Education and Research aims to increase the quantity and quality of service science related courses and degree programs.ISSIP SIG Education and Research aims to increase the number of T-shaped service innovators in business and society.
  47. If some entity architectures (EN 􏰄 and frameworks (FN 􏰄 are better than others, in these respects, then profes- sionals solving real-world problems (PRW 􏰄 might benefit. 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.
  48. Ricardo’s law of association of comparative advantage (beyond division of labor, includes learning curve effects – do more of what you do best, less of what you do least well)Outsourcing and self-service upward spiral of capabilities (employee productivity improvements lead to customer-self-service)Improve strongest and weakest network links capabilities (swim-lane competitions accelerate learning and balance routine (boredom) and challenge (anxiety))
  49. Multilevel nested, networked holistic service systems (HSS) that provision whole service (WS) to the people inside them. WS includes flows (transportation, water, food, energy, communications), development (buildings, retail, finance, health, education), and governance (city, state, nation). 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>50% GDP WWFamilies/Households (~1B)Persons (~10B)Balance/ImproveQuality of Life, generation after generationGDP/CapitaQuality of ServiceCustomer ExperienceQuality of JobsEmployee ExperienceQuality of Investment-OpportunitiesOwner ExperienceEntrepreneurial ExperienceSustainabilityGDP/Energy-Unit% Fossil% RenewableGDP/Mass-Unit% New Inputs% Recycled Inputs
  50. Spohrer’s “Order of Magnitude Observation: Unique Time in Human History”There is a market for a few organizations and types of organizations that try to please everyone….HAT = http://hubofallthings.wordpress.comPRISM = http://en.wikipedia.org/wiki/PRISM_(surveillance_program)Forbes 2000 = http://en.wikipedia.org/wiki/PRISM_(surveillance_program)
  51. HSS = Holistic Service Systems1. Service EconomyGrowth of service sector in GDP and Labor of nations2. ServitizationGrowth of revenue from service offerings of businesses3. GlobalizationFranchises and outsourcing, taxation, immigration, exports, 4. DemographicsAging population, young populations, etc.5. UrbanizationGrowth of urban population, specialization, higher education, etc.6. Social ServicesUrban populations need more social services, crime, poverty, mental illness, etc.7. Financial ServicesWealth effect, families outsource mode, business outsource more8. IT Platforms and ServicesFrom on-line retail to social media, gamification, big data, platforms,, to outsourcing and hyperspecializaion, self-service, digital business models, open data9. B2B ServicesGrowth in number of businesses business, entrrepreneurship, open innovation10. Service innovation needsOvercome Baumol’s disease of low productivity in government, health, education, etc.