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11/20 Seminar Topic: SSME by IBM


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11/20 Seminar Topic: SSME by IBM

  1. 1. Service Science – Enabler of Taiwan’s Next Miracle Why, What, How CC Fan Senior Managing Consultant IBM, Global Business Services [email_address] +886 935264538
  2. 2. “ Service” Does Matter …. Europe NESSI (2005) Networked European Software and Service Initiative Japan SPRING (2007) Service Productivity & Innovation for Growth
  3. 3. Agenda <ul><li>The Why -- Industry Trends </li></ul><ul><li>The What – Services, SSME, from conceptual to practical </li></ul><ul><li>The How – </li></ul><ul><ul><li>SSME -- Start with multi-disciplinary approach and evolve </li></ul></ul><ul><ul><li>Practicality and Innovation </li></ul></ul><ul><li>Service Innovation Opportunities in Taiwan </li></ul>
  4. 4. Global Economy – Service is becoming the leading sector <ul><li>Economy Structure: </li></ul><ul><ul><li>Service is becoming the leading sector of the economy </li></ul></ul>Source: UNCTAD, Statistical databases on-line <ul><li>Global Trade: </li></ul><ul><ul><li>Services represent 20% of total world trade </li></ul></ul><ul><ul><li>Exports of commercial services increase rapidly </li></ul></ul>
  5. 5. Economic Structure in Taiwan – Taiwan is shifting to knowledge economy Source: <ul><li>Manufacturing age ( 1966 ~ 1986) </li></ul><ul><ul><li>From agriculture to labor intensive manufacturing, and then to capital intensive manufacturing </li></ul></ul><ul><li>Post-manufacturing age ( 1987 ~ 2000) </li></ul><ul><ul><li>Capital & technology intensive industry (e.g. electronics & information technology) </li></ul></ul><ul><li>Knowledge economy ( 2000 ~current) </li></ul><ul><ul><li>Intelligent capital </li></ul></ul>The Shift of Economic Structure 1950 1960 1970 1980 1990 2000 5000 10000 15000 GNP(US Dollar) Taiwan Economy Ages Manufacturing Post-manufacturing Knowledge economy 1973 1980 1986
  6. 6. Service Sector in Taiwan – There is still room for improvement <ul><li>Less contribution to economic growth </li></ul><ul><ul><li>Although the service accounts for more than 70% of GDP, but the contribution rate to the economic growth is similar to industry sector . </li></ul></ul><ul><li>Low added value </li></ul><ul><ul><li>While developed countries are making significant improvements in creating higher added value in service sector, there is only minor change in Taiwan </li></ul></ul>Service sector still has room for improvement, What to do? 0.00% -0.07% -0.13% 0.09% -0.04% 2.01% 1.13% 1.85% 2.10% 2.79% 2.37% 3.68% 2.44% 2.70% 2.95% 0.09% 2.54% 2.54% -1% 0% 1% 2% 3% 4% 2002 2003 2004 2005 2006 2007 農業 製造業 服務業 對 GDP 成長的貢獻率 單位:千美元 / 每就業人口 台灣 200 3 年水準 主要國家之服務業附加價值生產力比較
  7. 7. Value Distribution: Services from Value Chain Perspectives The case of iPod <ul><li>iPod : a global popular consumer electronics, launched by Apple in 2002 </li></ul>Move up value chain for higher value (e.g., R&D, Marketing, After-sale Services, Financial Services, etc.) Source: Apple, annual report 2002 - 2005 Revenue $105 (35%) $120 (40%) $45 (15%) $29 (10%) $ 299 Design, Marketing Apple Company, US Manufacturing In Japan Distributor& Retailer Foundry In Taiwan R&D Design Procurement Manufacture Distribution Financial Service After-sale service Marketing Value Chain Value
  8. 8. New Opportunities: Emerging, Small to Big The example of US tax return preparation from India <ul><li>Large demand from U.S. </li></ul><ul><ul><li>Low cost: India’s cost is about 10% of U.S. </li></ul></ul><ul><ul><li>24 hours service: time-region difference </li></ul></ul><ul><li>Many India companies established for U.S. tax preparation </li></ul><ul><ul><li>Low investment : with software, only basic accounting knowledge is required </li></ul></ul><ul><ul><li>Job opportunity : about 70,000 graduates every year </li></ul></ul><ul><ul><li>Convenience : SOHO (Small Office/Home Office) </li></ul></ul><ul><li>Service volume : </li></ul><ul><ul><li>25,000 orders in 2003 </li></ul></ul><ul><ul><li>100,000 orders in 2004 </li></ul></ul><ul><ul><li>400,000 orders in 2005 </li></ul></ul>U.S. tax payer U.S. Tax service company India accountant W-2, W-4, 1099, bonuses, and stock statements Tax calculation <ul><li>English advantage </li></ul><ul><li>Low investment </li></ul><ul><li>Low dependency on natural resources </li></ul>
  9. 9. The Bottom Line <ul><li>The services economy is huge and diverse </li></ul><ul><li>Technology has been the equalizer – “The World is Flat” </li></ul><ul><li>Ample room for (services) innovation </li></ul><ul><li>Do we have the right mindset? </li></ul><ul><li>Do we have the people with the right training? </li></ul><ul><li>What should be the roles of </li></ul><ul><ul><li>Government ? </li></ul></ul><ul><ul><li>Education Institutes ? </li></ul></ul><ul><ul><li>Industries ? </li></ul></ul><ul><li>Will the focus of Services discipline generate the similar growth of Computer Industry by the Computer Science discipline? </li></ul>
  10. 10. Agenda <ul><li>The Why -- Industry Trends </li></ul><ul><li>The What – Services, SSME, from conceptual to practical </li></ul><ul><li>The How – </li></ul><ul><ul><li>SSME -- Start with multi-disciplinary approach and evolve </li></ul></ul><ul><ul><li>Practicality and Innovation </li></ul></ul><ul><li>Service Innovation Opportunities in Taiwan </li></ul>
  11. 11. Definition of Service (Wikipedia) <ul><li>A service is the diametrically opposed non-material counter piece of a physical good . A service provision comprises a sequence of activities that does not result in ownership of the outcome, and this is what fundamentally differentiates it from furnishing someone with physical goods. </li></ul>Source: IBM ASR SSME Chart Front stage [MOT] Direct interaction with employees, machines, other customers, etc. Customers with demands Back stage Employees, machines, technology. Customers are satisfied with solutions or transformed Materials, components, data Finished products, information, know-how A service system
  12. 12. 2 Types of Services <ul><li>Who services whom? </li></ul><ul><li>Two types of work </li></ul><ul><ul><li>Something one can do by himself </li></ul></ul><ul><ul><ul><li>Cooking, cleaning, </li></ul></ul></ul><ul><ul><ul><li>Maintain own computer </li></ul></ul></ul><ul><ul><ul><li>A company does all the operations by itself </li></ul></ul></ul><ul><ul><li>Something one can NOT do by himself </li></ul></ul><ul><ul><ul><li>Rub one’s back, self surgery </li></ul></ul></ul><ul><ul><li>Something one can do, but can not do ‘well’ </li></ul></ul><ul><ul><ul><li>Move heavy items, trim tall trees, IT management </li></ul></ul></ul><ul><ul><li>Something one can do, but others do not trust </li></ul></ul><ul><ul><ul><li>Account auditing </li></ul></ul></ul><ul><ul><li>Something one can do, but ‘awkward’ to do or manage </li></ul></ul><ul><ul><ul><li>Diagnostics </li></ul></ul></ul><ul><ul><ul><li>Relationship baggage </li></ul></ul></ul>
  13. 13. Internal vs. External Services <ul><li>Internal Services </li></ul><ul><ul><li>By mission – through management designation </li></ul></ul><ul><ul><li>Management – activity targets, feedback, internal surveys </li></ul></ul><ul><li>Services to external ‘customers’ </li></ul><ul><ul><li>By contract </li></ul></ul><ul><ul><ul><li>Explicit contract —SLA, measurable </li></ul></ul></ul><ul><ul><ul><li>Implicit contract – Common expectation </li></ul></ul></ul><ul><ul><li>Management – delivery acceptance, survey and feedback from customers </li></ul></ul>
  14. 14. What is SSME about? <ul><li>To enable services economy </li></ul><ul><li>To articulate services discipline </li></ul><ul><li>To train service oriented talents </li></ul>
  15. 15. Services Oriented talents – 1. Talents and jobs of service industries <ul><li>Teachers </li></ul><ul><li>Accountants, statisticians, analysts, money managers </li></ul><ul><li>Doctors, nurses, lawyers, beauticians, hair cutters </li></ul><ul><li>Decorators, cleaners </li></ul><ul><li>Tour guides, food service personnel </li></ul><ul><li>Consultants </li></ul><ul><li>IT specialists, architects </li></ul><ul><li>etc. </li></ul>
  16. 16. Services Oriented talents – 2. Talents who can build and improve services industries <ul><li>Domain Knowledge (IT Example) </li></ul><ul><ul><li>Design </li></ul></ul><ul><ul><li>Systems Engineer </li></ul></ul><ul><ul><li>Application Development </li></ul></ul><ul><ul><ul><li>Architecting, Design, coding, testing, deployment </li></ul></ul></ul><ul><ul><li>Usability experts </li></ul></ul><ul><ul><li>System Maintenance </li></ul></ul><ul><ul><li>Product specialization </li></ul></ul><ul><ul><li>Solution and/or application knowledge </li></ul></ul><ul><ul><li>Specialization like networks, security, etc </li></ul></ul><ul><ul><li>Maintenance </li></ul></ul><ul><ul><li>Connecting business with IT, Enterprise Architecture </li></ul></ul><ul><ul><li>Project Management </li></ul></ul><ul><li>Services Management Expertise </li></ul><ul><ul><li>Services personnel HR </li></ul></ul><ul><ul><li>Knowledge based systems </li></ul></ul><ul><ul><li>General business management </li></ul></ul><ul><ul><li>Ecosystem management </li></ul></ul><ul><li>Services Innovation </li></ul>
  17. 17. What is in SSME ? – SSME = Service Sciences, Management, and Engineering <ul><li>Is there a “ Service Science ” ? </li></ul><ul><li>I can understand Management, what do you mean by Services Engineering ? </li></ul>SSME = Service Sciences, Management, and Engineering Business Models & Processes Science & Technology People & Culture SSME
  18. 18. The System of Services – Like Circuits, Services can be Complex Systems   People Factors: Customer Behavior, Customer Psychology, Service Environment, Self-Service and Customer Experiences People Factors: Organization Theory, Incentive Theory & Effectiveness, Service Environment & Quality, Interaction with Tools <ul><li>Optimization & Analysis </li></ul><ul><ul><li>Operations Research </li></ul></ul><ul><ul><li>Game Theory </li></ul></ul><ul><ul><li>System Engineering </li></ul></ul><ul><ul><li>... </li></ul></ul>The System Of Services <ul><li>New technologies </li></ul><ul><ul><li>Web Services </li></ul></ul><ul><ul><li>Grid </li></ul></ul><ul><ul><li>Autonomic Computing </li></ul></ul><ul><ul><li>… </li></ul></ul><ul><li>Enablement (Architecture) </li></ul><ul><ul><li>Business Architecture </li></ul></ul><ul><ul><li>IT Architecture </li></ul></ul><ul><ul><li>Data Architecture </li></ul></ul><ul><ul><li>Performance Architecture </li></ul></ul><ul><ul><li>… </li></ul></ul><ul><li>Model </li></ul><ul><ul><li>Service Operation Model </li></ul></ul><ul><ul><li>Service Delivery Model </li></ul></ul><ul><ul><li>Service Capability Model </li></ul></ul><ul><ul><li>... </li></ul></ul>
  19. 19. Services Science – Modeling, Applied Math, Behavior Science… <ul><li>Are there theorems? Patterns? </li></ul><ul><li>How to describe a service system? </li></ul><ul><ul><li>Modeling? </li></ul></ul><ul><li>Applied Math -- Optimization </li></ul><ul><ul><li>Linear Programming </li></ul></ul><ul><ul><li>Integer Programming, </li></ul></ul><ul><ul><li>Heuristics </li></ul></ul><ul><ul><li>Stochastic optimization </li></ul></ul><ul><li>‘ Services’ is people associated </li></ul><ul><ul><li>Psychology </li></ul></ul><ul><ul><li>Behavior Science </li></ul></ul><ul><li>A lot of grand challenges </li></ul>
  20. 20. Exemplar Model Cutting Corners and Working Overtime: Quality Erosion in the Service Industry By Rogelio Oliva • John D. Sterman Harvard Business School, Morgan Hall T87, Boston, Massachusetts
  21. 21. Example of Mathematical Model Partial Model Estimation : The estimation minimizes the sum of squared errors between simulated and actual time per order given the structure of the model and driven by the data for actual service capacity (SC) and customer orders (CO) Service Delivery [ Customer orders (so) accumulate in a backlog (B) until they are processed. ] Service Capacity [Effective service capacity (c) is determined by adjusting the total labor force (L) by the effects of personnel experience (e) and fatigue (f )] Employee Responses [Work pressure (w), a measure of the balance between service demand and capacity, is defined as the gap between required service capacity and effective service capacity as a fraction of current capacity,] Service Quality [The satisfaction or quality customers experience (q) is a nonlinear function of the performance gap—the normalized difference between the time allocated per order (T) and customers’ expectations (Zeithaml et al. 1990)]
  22. 22. What are the mental states or perception of service s receiver of services? <ul><li>Affected by internal and external environment </li></ul><ul><li>One’s experience is important </li></ul><ul><ul><li>Is Tokyo a first class or second class city? </li></ul></ul><ul><ul><li>Is Beijing a first class or second class city? </li></ul></ul><ul><ul><li>Is New York City a first class or second class city? </li></ul></ul><ul><li>Individual’s behaviors </li></ul><ul><ul><li>Selective, preferential, greedy </li></ul></ul><ul><ul><li>May or may not be influenced </li></ul></ul>
  23. 23. Services Engineering <ul><li>Industry specific </li></ul><ul><li>Quantitative </li></ul><ul><li>Systematic </li></ul><ul><li>Process orientation, Factory orientation, standardize </li></ul><ul><ul><li>Service Processes </li></ul></ul><ul><ul><li>Services Personnel </li></ul></ul><ul><li>Enabled by Information Technology </li></ul>
  24. 24. Services Management <ul><li>What to Manage? </li></ul><ul><ul><li>Manage Services? </li></ul></ul><ul><ul><li>Manage Service personnel? </li></ul></ul><ul><ul><li>Manage Service content? </li></ul></ul><ul><ul><li>Manage Service providing Systems? </li></ul></ul><ul><ul><li>Manage Service recepients? </li></ul></ul><ul><ul><li>Manage expectations from recipients? </li></ul></ul><ul><ul><li>Manage the Brand of Services? </li></ul></ul><ul><li>Manage Services </li></ul><ul><ul><li>Quality of Services </li></ul></ul><ul><ul><li>Cost of Services </li></ul></ul><ul><ul><li>Risk of Services </li></ul></ul><ul><ul><li>Value of Services </li></ul></ul><ul><ul><li>Ecosystem, supply and demand chain of services </li></ul></ul>Each can be a good Topic for deep study
  25. 25. Agenda <ul><li>The Why -- Industry Trends </li></ul><ul><li>The What – Services, SSME, from conceptual to practical </li></ul><ul><li>The How – </li></ul><ul><ul><li>SSME -- Start with multi-disciplinary approach and evolve </li></ul></ul><ul><ul><li>Practicality and Innovation </li></ul></ul><ul><li>Service Innovation Opportunities in Taiwan </li></ul>
  26. 26. 挑戰你… <ul><ul><li>你有八枚硬幣 , 其中一枚比較輕 . 請用天平秤出較輕的一枚 , 而且只能秤二次 !!! </li></ul></ul>
  27. 27. Industry Response – SRII - Service Research & Innovation Initiative
  28. 28. Worldwide institutes begin to develop SSME initiatives <ul><li>200 Universities in 42 Countries Teaching SSME Courses </li></ul><ul><li>99 Degree or certificate programs in 31 Countries </li></ul><ul><ul><li>14 Undergraduate degrees (technical and MIS) </li></ul></ul><ul><ul><ul><li>E.g Michigan Tech Univ., Singapore Mgmt Univ. </li></ul></ul></ul><ul><ul><li>85 Graduate degrees and concentrations (25 technical, 25 MIS, 38 Business) </li></ul></ul><ul><ul><ul><li>E.g.: Carnegie Mellon, Helsinki Polytech, Peking U, Portland State U, Rochester IT, RMIT, Scuola Sant’Anna, Steven Inst, U del Salvador, U Bridgeport, U Buffalo, U Exeter, U Manchester, U Trento, Karlstads U, North Carolina State U </li></ul></ul></ul><ul><li>20 Research Centers for Service Excellence </li></ul>Karlstads Universitet Fraunhofer Institute Arizona State University North Carolina State University University of Maryland Rensselaer Polytechnic Institute Research centers Penn State University Massachusetts Institute of Technology Georgia Institute of Technology Carnegie Mellon University UC Berkeley Departments
  29. 29. SSME curriculum Design – There are different approaches to design SSME courses Organization Theory Services Sciences, Management, and Engineering (SSME) and Solutions Engineering Service & Solutions Excellence Centers (Information Science & Technology Management) Institutional Economics Experimental Economics Economics School of Social Sciences Labor Psychology (Human Capital Mgmt) Psychology Transformation & Integration Selection & Aggregation Evolution & Revision Discipline School Service Marketing Marketing School of Management Service Operations Operations Service Accounting (Activity-Based Costing) Accounting Service Sourcing (eSourcing) Contracts & Negotiations Service Operations Operations Research School of Engineering and Science Service Engineering Industrial & Systems Engineering Service Computing, Web Services, SOA Computer Science Medical School, Law School, Education School, Hotel & Restaurant School, Media & Communications, etc. Professional Schools Business Anthropology Anthropology Management of Innovation Management of Technology Service Management Management Science
  30. 30. Example: SSME at North Carolina State University <ul><li>MBA Concentration in SSME </li></ul><ul><li>MS Concentration in SSME </li></ul>Required Services Management Consulting Business Relationship Management Required Services Management Management of Technology Managing People in the High-Tech Environment Process Analysis and Design Requirements and Electives in Electrical Engineering or Computer Science Masters Programs Elective options Market Analytics Marketing Strategy Supplier Relations Choose one of the following Market Analytics Marketing Research Marketing Strategy Project Management Supplier Relations
  31. 31. Services Innovation <ul><li>The Service Industry is transforming </li></ul><ul><ul><li>More IT enabled service </li></ul></ul><ul><ul><ul><li>24 hour online healthcare service (U.S. and India’s doctors) </li></ul></ul></ul><ul><ul><ul><li>Distance education </li></ul></ul></ul><ul><ul><ul><li>E-banking </li></ul></ul></ul><ul><ul><ul><li>Mobile payment </li></ul></ul></ul><ul><ul><li>Cross-industry integration </li></ul></ul><ul><ul><ul><li>Transportation intelligent card </li></ul></ul></ul><ul><ul><ul><li>Integrated financial service </li></ul></ul></ul><ul><li>Provides better service quality </li></ul><ul><li>Provides effects beyond expectation </li></ul><ul><li>Provides solutions for difficult problems </li></ul><ul><li>Provides new types of services or new paradigms of services </li></ul>
  32. 32. 1. Ri Sheng Chang Exchange Bank( 日昇昌票號 ) From Fabrics to Exchange Banking <ul><li>A Real Story from historic China (Qing Dynasty) </li></ul>Source: (High Risk!!) Fabrics Shop A Fabrics Shop B Goods flow Location A Location B Physical money flow Bank A Bank B Withdraw/Deposit Money Withdraw/Deposit Money Virtual Money flow Exchange Shop (around 1823)
  33. 33. <ul><li>Identify the problem/opportunity ( High risk in physical money flow ) </li></ul><ul><li>Build a possible/pioneer solution ( Fineness grades ) </li></ul><ul><li>Predict results from early work if deployed with a larger scale ( First tested among friends & relatives ) </li></ul><ul><li>Large-scale deployment ( Branches over almost all the trading cities ) </li></ul>The same clerk for all the exchange note writing in each shop Watermark paper 1. Ri Sheng Chang Exchange Bank Service Oriented Innovation Seal to prevent tampering : Ri Sheng Chang Ji Very complicated micro engraving containing secret key to prevent forgery Dealer’s endorsement <ul><li>Secret Key </li></ul><ul><li>Twelve months: 謹防假票冒取,勿忘細視書 章 </li></ul><ul><li>Thirty Days: 堪笑世情薄,天道最公平,昧必圖自利,陰謀害他人, 善 惡終有報,到頭必分明 </li></ul><ul><li>1—10: 趙氏連城 璧 ,由來天下傳 </li></ul><ul><li>10 thousand, Thousand, Hundred, Ten ( 兩 : a unit of weight (50 grams)): 國寶 流 通 </li></ul>章善璧流 12 月 21 日 , 500 兩
  34. 34. 2. IBM – IBM has transformed from manufacturer into service provider 55% 25% 20% SYSTEM AND FINANCING SOFTWARE SERVICES 2007 年 IBM 營收比重 27% 56% 17% SYSTEM AND FINANCING SOFTWARE SERVICES 1993 年 IBM 營收比重 IT Maintenance Services IT Server Room Outsourcing R&D Services (FOAK, ODIS) Application Maintenance Service Business Consulting Services (GBS) Business Transformation Outsourcing Services
  35. 35. 2. IBM – R&D services is setup to align R&D to market demand Standard Solutions Repeatable engagements Consulting and systems integration Vision and invention Science and basic research Supports product development for IBM brands or OEMs Global Technology Outlook (GTO) &quot;Bleeding edge&quot; First-of-a-Kind (FOAK) Projects - building new prototype solutions Leading-edge innovation Application of mathematics, science and fresh thinking Solving complex or difficult problems Application of invention to produce innovative solutions for clients On the horizon 2 to 10 years to practical application Tomorrow's technology today Business as usual ODIS
  36. 36. IGSM 2. IBM – Methodology helps to reduce delivery cycle and improve quality 再運用 <ul><li>Solution/Offering </li></ul><ul><li>Engagement Models </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>Reuse </li></ul><ul><li>Harvesting </li></ul><ul><li>Hardening </li></ul><ul><li>Engagement </li></ul><ul><li>Specific </li></ul><ul><li>Instance </li></ul><ul><li>(Project </li></ul><ul><li>Teamroom) </li></ul><ul><li>Project Schedulers </li></ul><ul><li>Engagement Support </li></ul><ul><li>Environment (ESE) </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>Existing Engagement </li></ul><ul><li>Models / Work products </li></ul><ul><li>Business & Organization </li></ul><ul><li>Application & Architecture </li></ul><ul><li>Infrastructure/IT Mgmt </li></ul><ul><li>Strat </li></ul><ul><li>Outsourcing/Operations </li></ul><ul><li>Engagement </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>WP </li></ul><ul><li>Common Method Repository </li></ul><ul><li>Customize </li></ul><ul><li>Improve & </li></ul><ul><li>Build </li></ul><ul><li>Intellectual </li></ul><ul><li>Capital </li></ul><ul><li>Optimization </li></ul>
  37. 37. <ul><li>除了平時定期管控專案進度外 , IBM 會依據主要影響專案成功的七項指標檢視目前專案進度狀況 . 以下是專案進度報告之範例 : </li></ul>2. IBM – 7 Key Report is used to track project status Manage integrated project plan <ul><li>Integrated Project Plan Status Report </li></ul><ul><ul><li>專案關係人的承諾 </li></ul></ul><ul><ul><li>商業利益實現 </li></ul></ul><ul><ul><li>工作進度時程的掌握 </li></ul></ul><ul><ul><li>專案團隊執行成效 </li></ul></ul><ul><ul><li>專案範圍實現與管理 </li></ul></ul><ul><ul><li>專案風險的控制 </li></ul></ul><ul><ul><li>組織效益的實現 </li></ul></ul>紅燈 : 緊急狀況 , 必須立刻採取緊急改善對應措施 黃燈 : 警示 , 必須進行改善行動 綠燈 : 正常狀況 , 專案依計畫進行 專案進度報告 (xx 年 XX 月 Actions Scope Team Risks Work and Schedule Business Benefits Stakeholders Delivery Organization Benefits IBM 使用 Notes 系統執行專案進度報告
  38. 38. Agenda <ul><li>The Why -- Industry Trends </li></ul><ul><li>The What – Services, SSME, from conceptual to practical </li></ul><ul><li>The How – </li></ul><ul><ul><li>SSME -- Start with multi-disciplinary approach and evolve </li></ul></ul><ul><ul><li>Practicality and Innovation </li></ul></ul><ul><li>Service Innovation Opportunities in Taiwan </li></ul>
  39. 39. For Service Vendors – 1. Focus on specific sub-sectors 1. 產值: 1.5 兆元 2. 就業人數: 42 萬人 1. 產值: 1.2 兆元 2. 就業人數: 40.6 萬人 金融 2 觀光總收入: 4,483 億元 旅客人數: 境外市場: 520 萬人次 ( 含第 1 類大陸觀光客 ) 國民旅遊市場: 1.2 億旅次 觀光總收入: 3,800 億元 旅客人數: 境外市場: 352 萬人次 國民旅遊市場: 0.53 億旅次 # 觀光 4 總產值 4,300 億元 1. 行動 2,607 億元 2.Internet 及加值 717 億元 3. 電路出租 307 億元 4. 國際 260 億元 總產值 3,770 億元 * 1. 行動 2,202 億元 2.Internet 及加值 494 億元 3. 電路出租 268 億元 4. 國際 258 億元 電信 5 1. 產值: 7,724 億元 2. 受雇人員: 24.2 萬人 1. 產值: 6,962.1 億元 2. 受雇人員: 21.4 萬人 醫療 3 1. 批發零售產值: 2.6 兆元 2. 批發零售就業 人數: 183 萬人 1. 批發零售產值: 2.2 兆元 2. 批發零售就業 人數: 176 萬人 流通 1 編號 1. 營業額: 3,180 億元 2.CMMI 認證家數累計 85 家,全球排名第 5 3. 出口: 640 億元 1. 營業額: 2,386 億元 2.CMMI 認證家數累計 50 家,全球排名第 9 3. 出口: 325 億元 資訊 2009 年(量目標) 2006 年(現況) 業別
  40. 40. 服務業 科技化 <ul><li>以 新科技應用到服務業 ,如 金融、電信、物流、觀光休閒等 ,提供 創新服務 。 </li></ul><ul><li>案例 </li></ul><ul><li>推動 RFID 應用及擴散, 建立農產品、 食品流通履歷、 健康醫療照護系統以及航空貨運物流及保安先導應用。 </li></ul>For Service Vendors – 2. Leverage existing resources <ul><li>完備服務業品質認證制度,以提升服務業經營能力及服務品質 ,政府推動方向如下: </li></ul><ul><li>-協同各相關部會 加強落實現有服務業品質認證制度 ,如資訊 軟體 CMMI 認證、旅館等級評鑑等; </li></ul><ul><li>- 建立或導入新的認證制度(如國際認證制度) ,以提升服務業經營品質。其中,對認證經濟效益認知程度較低的產業,例如 物業管理等,將協調相關部會加強宣導;對於目前較欠缺服務整體評鑑之產業,例如觀光及運動休閒服務業與環保服務業,將協助相關部會導入或建立服務品質認證制度。 </li></ul>服務業 品質認證
  41. 41. For Manufacturers -- E xpand into any of five different services business models Product Centric Professional Services Financials & Metrics <ul><li>After sales support </li></ul><ul><li>Warranty services </li></ul><ul><li>Maintenance Offerings </li></ul><ul><li>Problem solving expertise </li></ul><ul><li>Functional or technology specializations </li></ul>Outsourcing/ Alliances <ul><li>Lower salary and/or infrastructure cost </li></ul><ul><li>Increased flexibility </li></ul><ul><li>Reduced headcount </li></ul>Service Business Models Service Value Proposition <ul><li>Bundled with products </li></ul><ul><li>Yearly fixed price or variable contracts </li></ul><ul><li>Fixed fee contracts </li></ul><ul><li>Time and materials contracts </li></ul><ul><li>Multi-year, fixed contracts </li></ul>Operating Model <ul><li>Integrated product/ services delivery </li></ul><ul><li>No separate services organization </li></ul><ul><li>Traditional leveraged engagement model </li></ul><ul><li>Separate services organization </li></ul><ul><li>New channels </li></ul><ul><li>Headcount transfer of client </li></ul><ul><li>Technology transfer or updating </li></ul><ul><li>Separate organization </li></ul><ul><li>New channels </li></ul>Information Services <ul><li>Information based services for: </li></ul><ul><ul><li>Maintenance </li></ul></ul><ul><ul><li>Inventory Mgmt </li></ul></ul><ul><ul><li>Supply Chain </li></ul></ul><ul><ul><li>Trading </li></ul></ul><ul><li>Tiered, value-based pricing </li></ul><ul><li>License fees </li></ul><ul><li>Remote monitoring devices </li></ul><ul><li>Networked products </li></ul>Financial Services <ul><li>Financing for product purchases </li></ul><ul><li>May include other financial services such as insurance, checking, loans, etc. </li></ul><ul><li>Recurring, fee and asset-based revenue </li></ul><ul><li>Tied to interest rates </li></ul><ul><li>Separate financial services organization </li></ul><ul><li>May pursue customers beyond product segment </li></ul><ul><li>Data integration needed </li></ul>2 2 2 1 2 3 2 1
  42. 42. Leading to the next economic miracle Taiwan Economy Ages Manufacturing Post-manufacturing Knowledge economy 1973 1980 1986 1950 1960 1970 1980 1990 2000 5000 10000 15000 GNP(US Dollar)
  43. 43. Thank You! 謝謝關注
  44. 44. Where do we go from here? <ul><li>What are Taiwan’s strengths and weaknesses? </li></ul><ul><ul><li>Past success can be the barrier to transform </li></ul></ul><ul><li>Are we moving to the two sides of the U curve fast enough? </li></ul><ul><li>Do we have the right set of people having the services orientation? </li></ul><ul><ul><li>Do we still hear the 宰客 stories? </li></ul></ul><ul><li>Do we have the right set of leaders who have the deep understanding to drive services economy? </li></ul><ul><li>How does the Globalization trend affect Taiwan? </li></ul><ul><li>What role should Taiwan play in global services economy? </li></ul><ul><ul><li>What is the new export? </li></ul></ul><ul><ul><li>Information and knowledge? Natural resources and culture? </li></ul></ul><ul><ul><li>Note: Taiwan is not unique </li></ul></ul><ul><li>Open is the key </li></ul><ul><li>How can we accelerate the notion of SSME to accelerate the transformation? </li></ul>
  45. 45. Trend & Need - Labor force migration to services <ul><li>The world economy is experiencing the largest labor force migration in history. </li></ul><ul><ul><li>Driven by an environment that includes global communications, business growth and technology innovation, services now accounts for 70 percent of the labor force in the United States and the United Kingdom. </li></ul></ul>Top Ten Labor Forces by Size (Year 2004) (WW 50% Agriculture., 10% Goods, 40% Services) Source: U.S. Department of Labor, Bureau of Labor Statistics % US Labor Force by Sector (A) Agriculture : Value from harvesting nature ( S) Services: Value from enhancing, protecting, distributing, understanding, and customizing things ( G) Goods: Value from making products
  46. 46. Definition of &quot; Services &quot; Note: Customer as to Service Provider is like “Yin” to “Yang”, they interact, grow with each other… Customer Service Provider
  47. 47. Services: Client pays provider for a performance or promise of a performance. The client and provider share responsibility for coproduction of value within the boundaries of the relationship (aspire to “win-win”). <ul><li>Performance : Activities that transform the state of something. </li></ul><ul><li>Coproduction relationship : A relationship in which goals/work responsibilities and risks/rewards are shared, with an explicit or tacit contract defining initial/intermediate/ongoing/final states/results/effort/quality levels. External factors that might impact the relationship may or may not be enumerated. Third party partners may be involved in establishing, evaluating, and working front stage or back stage in the coproduction relationship. </li></ul><ul><li>Front stage activities : Sometimes called the “moments of truth” in which client and provider directly interact. Pure services are mostly front stage. Variance in the front stage is largely due to the client’s requests and actions, and provides opportunities to provide higher value services. Eliminating front stage variance can lead to standards and higher quality, but may also destroy a lot of high end value creation opportunities. </li></ul><ul><li>Back stage activities : Both provider-side activities that do not directly involve the client, and client-side activities that do not directly involve the provider. Pure products are mostly back stage for providers (manufacturer). Six sigma is an effective method for eliminating unnecessary variance in the backstage, which leads from custom processes to standard processes. </li></ul>Source: IBM ASR SSME Chart
  48. 48. Product company R&D Production Sales HR Equipment Maintenance Payroll Processing Application Development
  49. 49. Business Componentization Example: Auto Industry Business Administration Corporate/LOB Strategy & Planning Organization & Process Policies Alliance Strategies Human Capital Management Legal & Regulatory Business Performance Intellectual Property Building/ Facilities & Equipment IT Systems & Operations Knowledge & Learning Financial Management Capital Appropriation Planning Financial Planning & Forecasting Risk Manage- ment & Internal Audit Treasury Tax Management Accounting & General Ledger Cost Management Product/ Process Portfolio Strategy & Planning Research & Development Design Rules & Policies Program Management Configuration Management Design Validation Change Management Mechanical Design In-vehicle System Design Process Design Tool Design & Build Supply Chain Supply Chain Strategy & Planning Demand Planning Supplier Relationship Planning Supply Chain Performance Monitoring Supplier Management Logistics Management Inventory Management Transportation Management Procurement Marketing & Sales Customer Relationship Strategy Sales & Promotion Planning Brand Management Relationship Monitoring Demand Forecast & Analysis Dealer Management Customer Relationship Management Order Management Lease Management Direct Control Execute Production Production Strategy Production Rules & Policies Master Production Planning Production Scheduling Quality Management Plant Operations Maintenance Management Production Monitoring Service & Aftersales Post Vehicle Sale Strategy Warranty Management Quality Management End-of-Life Vehicle Vehicle Service Parts Management Strategic Differentiation Competitive Parity Basic Strategic
  50. 50. The Interactions in Services <ul><li>Front Stage   </li></ul><ul><ul><li>Service Environment </li></ul></ul><ul><ul><li>Counter </li></ul></ul><ul><ul><li>Server </li></ul></ul><ul><ul><li>Service Request Form </li></ul></ul><ul><ul><li>Service Contents </li></ul></ul><ul><ul><li>Queue </li></ul></ul><ul><ul><li>Service Efficiency </li></ul></ul><ul><ul><li>Manner </li></ul></ul><ul><ul><li>Flexibility </li></ul></ul><ul><ul><li>… </li></ul></ul><ul><li>Back Stage   </li></ul><ul><ul><li>Service Ready </li></ul></ul><ul><ul><li>Service Fulfillment </li></ul></ul><ul><ul><li>Service Assurance </li></ul></ul><ul><ul><li>Billing </li></ul></ul><ul><ul><li>Allocating Resources </li></ul></ul><ul><ul><li>Repair </li></ul></ul><ul><ul><li>Complaint </li></ul></ul><ul><ul><li>Business Intelligence </li></ul></ul><ul><ul><li>Business Analysis </li></ul></ul><ul><ul><li>… </li></ul></ul>IT Enablement
  51. 51. Cooperation between healthcare and IT services Please notice Service Lifecycle, Roles Involved, Data, Business Process, Technology, Resources, Finance, etc. <ul><li>IT Service </li></ul><ul><ul><li>Objectives: Grow Business & Core Competency </li></ul></ul><ul><li>Front (Customer, PM, Architect) Back (IT Specialist…) </li></ul><ul><li>Data: SW/HW, Configuration, Process Artifact, People </li></ul><ul><li>IT/Business Consulting Services </li></ul><ul><ul><li>CRM, ERP, SCM, HCM </li></ul></ul><ul><ul><li>Insight: data collect </li></ul></ul><ul><li>Service (Solution) delivery </li></ul><ul><ul><li>Project Management </li></ul></ul><ul><ul><li>IT (cost) analysis,CBM </li></ul></ul><ul><ul><li>Design architecture </li></ul></ul><ul><ul><li>HW configuration </li></ul></ul><ul><ul><li>SW development </li></ul></ul><ul><li>Capability of Service Provisioning </li></ul><ul><ul><li>People skill </li></ul></ul><ul><ul><li>HW/SW matureness </li></ul></ul><ul><ul><li>Number of experts </li></ul></ul><ul><ul><li>Assetization </li></ul></ul><ul><ul><li>Methodology and SSM / management </li></ul></ul><ul><li>Service Operation (Data center) </li></ul><ul><ul><li>M&A </li></ul></ul><ul><ul><li>Design New architecture </li></ul></ul><ul><ul><li>IT change management </li></ul></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>IT enabled BTO/BPO </li></ul></ul><ul><li>Service Quality Monitoring </li></ul><ul><ul><li>Event driven method… </li></ul></ul><ul><li>Billing </li></ul><ul><li>Healthcare Service </li></ul><ul><ul><li>Objectives: Health, Quick Treatment & Recovery </li></ul></ul><ul><li>Front (Patient, Doctor, Nurse) Back(Nurse,assay, …) </li></ul><ul><li>Data: M edical records </li></ul><ul><li>Healthcare Consulting </li></ul><ul><ul><li>Shaping </li></ul></ul><ul><ul><li>… </li></ul></ul><ul><li>Diagnosis </li></ul><ul><ul><li>Check </li></ul></ul><ul><ul><li>Watch </li></ul></ul><ul><ul><li>Ask… </li></ul></ul><ul><li>Treatment </li></ul><ul><ul><li>Surgery </li></ul></ul><ul><ul><li>Dose </li></ul></ul><ul><ul><li>psychotherapy </li></ul></ul><ul><ul><li>Transplant </li></ul></ul><ul><li>Clinical Support </li></ul><ul><ul><li>Laboratory Information System </li></ul></ul><ul><ul><li>Radiology Information Systems </li></ul></ul><ul><ul><li>Pharmacy Information Systems </li></ul></ul><ul><ul><li>Blood Bank Information System </li></ul></ul><ul><li>Visit back & Monitoring </li></ul><ul><ul><li>Frequent visit back </li></ul></ul><ul><li>Billing </li></ul>
  52. 52. Flexibility on a Global Scale The case of Hutchison Port Holdings (HPH) <ul><li>Strength : Hong Kong based world leading port operator </li></ul><ul><ul><li>Solid experience in HK port operation </li></ul></ul><ul><li>Vision: Global expansion </li></ul><ul><li>Replicate the efficient port operation experience through acquisition </li></ul><ul><ul><li>Methodology </li></ul></ul><ul><ul><li>Best practice </li></ul></ul><ul><ul><li>Knowledge/Skill </li></ul></ul><ul><ul><li>Talent </li></ul></ul><ul><ul><li>IT system </li></ul></ul><ul><ul><li>… </li></ul></ul><ul><li>Success </li></ul><ul><ul><li>No. 1 port operator with 251 piers in 43 ports covering 21 countries </li></ul></ul>Best practice capitalization for global expansion to obtain scale of economy Hong Kong South Korea Indonesia Mainland China Thailand Malaysia Myanmar Pakistan Oman Saudi Arabia Tanzania Egypt Poland Germany The Netherlands Belgium UK Argentina Bahamas Panama Mexico Global Expansion Source: Drewy Shipping Consultants Ltd. 2003
  53. 53. Cruise Ships <ul><li>Was something only the very rich can enjoy. </li></ul><ul><li>Now cost of one-week Mexican Riviera cruise can be as low as $620/person (including all food and tips) </li></ul><ul><li>Integration of </li></ul><ul><ul><li>Ship Building Industry </li></ul></ul><ul><ul><li>Ports and docks </li></ul></ul><ul><ul><li>Retail </li></ul></ul><ul><ul><li>Entertainment </li></ul></ul><ul><ul><li>Food and Supplies </li></ul></ul><ul><ul><li>Local excursions </li></ul></ul><ul><ul><li>Airline industries </li></ul></ul><ul><ul><li>Art </li></ul></ul>
  54. 54. “ Shan Xi Bank” – a wide financial network Create a new industry <ul><li>A New Industry: Exchange Banking ( 票號 ) </li></ul><ul><ul><li>30+ banks (about 400 branches) in 70+ domestic cities </li></ul></ul><ul><ul><li>Overseas: Japan, Korea, India, Russia, Singapore, Mongolia, etc. </li></ul></ul><ul><li>Promote the growth of trading in </li></ul><ul><ul><li>tea </li></ul></ul><ul><ul><li>salt </li></ul></ul><ul><ul><li>silk </li></ul></ul><ul><ul><li>textile </li></ul></ul><ul><ul><li>wine </li></ul></ul><ul><ul><li>tobacco </li></ul></ul><ul><ul><li>ship building </li></ul></ul><ul><ul><li>Chinese herb and medicine </li></ul></ul><ul><ul><li>… </li></ul></ul><ul><li>In return, further grow the exchange banking </li></ul><ul><ul><li>e.g. just in Ulaanbaatar, Mongolia, more than 20 shops and 1000+ Shanxi merchants at that time. </li></ul></ul>Source :
  55. 55. Intersection of Services Management and Services Engineering Service Management Service Engineering <ul><li>Establish Industry Services standards and associated KPI </li></ul><ul><li>Services Optimization </li></ul>
  56. 56. Intersection of Services Management and Services Engineering