Service science t shaped for smarter planet 20110727 v1

Service Science: T-Shaped Professionals to Help Build a Smarter Planet Dr. James (“Jim”) C. Spohrer [email_address] Innovation Champion and Director, IBM University Programs Worldwide IRSSM-2 at Yogyakarta, Indonesia July 27, 2011 500+ service science related courses and degree programs worldwide BREADTH DEPTH

Republic of Indonesia (indexmundi.com estimates) Labor Force:116.5M Labor Force by Sector: 48.9% service, 38.3% agriculture, 12.8% industry GDP by Sector: 37.1% service, 16.5% agriculture, 46.4% industry GDP: $1.03T (PPP), $706.7B (OER); GDP Growth Rate: 6.1% © worldatlas.com

Questions leaders of every region (nation, state, city) ask How to create more and better jobs for their citizens? higher skill higher pay How to shift more work activities from routine physical, mental, interactional activities to higher-skill, higher-value activities? innovation (inventing best-practices, often from new ventures) transformation (implementing best-practices) How to invest in progress? continuously improve infrastructure continuously improve talent How to improve quality-of-life? sustainably, with less environmental impact, more recycling and less imports equal access to opportunity & justice, generation after generation, for the long-run

What are the benefits of more education? Of higher skills? … But it can be costly, American student loan debt is over $900M

What are the benefits of top-ranked universities? % WW GDP and % WW Top-500-Universities Strong Correlation (2009 Data): National GDP and University Rankings http://www.upload-it.fr/files/1513639149/graph.html

How are advanced technologies changing the mix of jobs? Levy, F, & Murnane, R. J. (2004). The New Division of Labor: How Computers Are Creating the Next Job Market. Princeton University Press. Expert Thinking Complex Communication Routine Manual Non-routine Manual Routine Cognitive

What are T-shaped professionals? Ready for Life-Long-Learning Ready for T-eamwork Ready to Help Build a Smarter Planet SSME+D = Service Science, Management, Engineering + Design Many disciplines (understanding & communications ) Many systems (understanding & communications) Deep in one discipline (analytic thinking & problem solving) Deep in one system (analytic thinking & problem solving) Many multi-cultural-team service projects completed (resume: outcomes, accomplishments & awards) BREADTH DEPTH

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

Our planet is a complex, dynamic, highly interconnected $54 Trillion system-of-systems (OECD-based analysis) Communication $ 3.96 Tn Transportation $ 6.95 Tn Leisure / Recreation / Clothing $ 7.80 Tn Healthcare $ 4.27 Tn Food $ 4.89 Tn Infrastructure $ 12.54 Tn Govt. & Safety $ 5.21 Tn Finance $ 4.58 Tn Electricity $ 2.94 Tn Education $ 1.36 Tn Water $ 0.13 Tn Global system-of-systems $54 Trillion (100% of WW 2008 GDP) Same Industry Business Support IT Systems Energy Resources Machinery Materials Trade Legend for system inputs Note: 1. Size of bubbles represents systems’ economic values 2. Arrows represent the strength of systems’ interaction Source: IBV analysis based on OECD This chart shows ‘systems‘ (not ‘industries‘)  Our planet is a complex system-of-systems 1 Tn

Economists estimate, that all systems carry inefficiencies of up to $15 Tn, of which $4 Tn could be eliminated How to read the chart: For example, the Healthcare system‘s value is $4,270B. It carries an estimated inefficiency of 42%. From that level of 42% inefficiency, economists estimate that ~34% can be eliminated (= 34% x 42%).  We now have the capabilities to manage a system-of-systems planet Source: IBM economists survey 2009; n= 480 Global economic value of $4 Trillion 7% of WW 2008 GDP Improvement potential $15 Trillion 28% of WW 2008 GDP Inefficiencies $54 Trillion 100% of WW 2008 GDP System-of-systems System inefficiency as % of total economic value Improvement potential as % of system inefficiency Education 1,360 Building & Transport Infrastructure 12,540 Healthcare 4,270 Government & Safety 5,210 Electricity 2,940 Financial 4,580 Food & Water 4,890 Transportation (Goods & Passenger) 6,950 Leisure / Recreation / Clothing 7,800 Communication 3,960 Analysis of inefficiencies in the planet‘s system-of-systems Note: Size of the bubble indicate absolute value of the system in USD Billions 42% 34% This chart shows ‘systems‘ (not ‘industries‘)

Quality-of-Life measures improve Education system transfers and expands body-of-knowledge A. Systems that focus on flow of things that humans need (~15%*) 1. Transportation & supply chain 2. Water & waste recycling/Climate & Environment 3. Food & products manufacturing 4. Energy & electricity grid/Clean Tech 5. Information and Communication Technologies (ICT access) B. Systems that focus on human activity and development (~70%*) 6. Buildings & construction (smart spaces) (5%*) 7. Retail & hospitality/Media & entertainment/Tourism & sports (23%*) 8. Banking & finance/Business & consulting (wealthy) (21%*) 9. Healthcare & family life (healthy) (10%*) 10. Education & work life/Professions & entrepreneurship (wise) (9%*) C. Systems that focus on human governance - security and opportunity (~15%*) 11. Cities & security for families and professionals (property tax) 12. States /regions & commercial development opportunities/investments (sales tax) 13. Nations /NGOs & citizens rights/rules/incentives/policies/laws (income tax) 20/10/10 0/19/0 2/7/4 2/1/1 7/6/1 1/1/0 5/17/27 1/0/2 24/24/1 2/20/24 7/10/3 5/2/2 3/3/1 0/0/0 1/2/2 Quality of Life = Quality of Service + Quality of Jobs + Quality of Investment-Opportunities * = US Labor % in 2009. “ 61 Service Design 2010 (Japan) / 75 Service Marketing 2010 (Portugal)/78 Service-Oriented Computing 2010 (US)”

What is service science? A service system? The ABC’s? Economics & Law Design/ Cognitive Science Systems Engineering Operations Computer Science/ Artificial Intelligence Marketing “ a service system is a human-made system to improve provider-customer interactions and value-cocreation outcomes, studied by many disciplines, one piece at a time.” “ service science is the transdisciplinary study of service systems & value-cocreation” The ABC’s: The provider (A) and a customer (B) transform a target (C)

Systems-Disciplines Matrix: Schematic Overview Systems Flows E.g., Transportation Human Development E.g., Health Governance E.g., National-level Disciplines Stakeholder-focus E.g., Customer = marketing Resource-focus E.g., Technology = engineering Change-focus E.g., History = economics Value-focus E.g., Innovation = entrepreneurship Stakeholders Resources Change Value Flows Human Development Governance Governance

Systems-Discipline Matrix: More Detail disciplines systems Systems that focus on flows of things Systems that govern Systems that support people’s activities transportation & supply chain water & waste food & products energy & electricity building & construction healthcare & family retail & hospitality banking & finance ICT & cloud education &work city secure state scale nation laws social sciences behavioral sciences management sciences political sciences learning sciences cognitive sciences system sciences information sciences organization sciences decision sciences run professions transform professions innovate professions e.g., econ & law e.g., marketing e.g., operations e.g., public policy e.g., game theory and strategy e.g., psychology e.g., industrial eng. e.g., computer sci e.g., knowledge mgmt e.g., stats & design e.g., knowledge worker e.g., consultant e.g., entrepreneur stakeholders Customer Provider Authority Competitors resources People Technology Information Organizations change History (Data Analytics) Future (Roadmap) value Run Transform (Copy) Innovate (Invent) Starting Point 1: Observing the Stakeholders (As-Is) Starting Point 2: Observing their Resources & Access (As-Is) Change Potential: Thinking (Has-Been & Might-Become) Value Realization: Doing (To-Be)

Proposed Guidelines Please send feedback to Wendy Murphy [email_address] Help us devise better ways to visualize scope of service science For use with: Students Faculty Practitioners Policy-makers Scientists & Engineers Government officials

Students for a Smarter Planet YouTube - animated!! http:// www.youtube.com/watch?v =P7bEyPrtFHM and another http://www.youtube.com/watch?v=WklJujtIip4 Tweet comments to… @wendywolfie Continuously Improving Product-Service Systems = Smarter Systems Simplify the message Provide advanced organizers

Our ambition is to reach K-12 students with Service Science & STEM: “The systems we live in, and the systems we are…” “ Imagine smarter systems, explain why better (service systems & STEM language)” STEM = Science, Technology, Engineering, and Mathematics See NAE K-12 engineering report: http://www.nap.edu/catalog.php?record_id=12635 See Challenge-Based Learning: http://www.nmc.org/news/nmc/nmc-study-confirms-effectiveness-challenge-based-learning Challenge-based Project to Design Improved Service Systems K - Transportation & Supply Chain 1 - Water & Waste Recycling 2 - Food & Products (Nano) 3 - Energy & Electric Grid 4 – Information /ICT & Cloud (Info) 5 - Buildings & Construction 6 – Retail & Hospitality/Media & Entertainment (tourism) 7 – Banking & Finance/Business & Consulting 8 – Healthcare & Family Life/Home (Bio) 9 – Education /Campus & Work Life/Jobs & Entrepreneurship (Cogno) 10 – City (Government) 11 – State /Region (Government) 12 – Nation (Government) Higher Ed – T-shaped depth added, cross-disciplinary project teams Professional Life – Adaptive T-shaped life-long-learning & projects Systems that focus on Governing Systems that focus on Human Activities and Development Systems that focus on Flow of things

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

IBM operates in 170 countries around the globe IBM has 425,000 employees worldwide 2010 Financials Revenue - $ 99.9B Net Income - $ 14.8B EPS - $ 11.52 Net Cash - $11.7B 21% of IBM’s revenue in growth market countries; growing at 13% in late 2010 Number 1 in patent generation for 18 consecutive years ; 5,896 US patents awarded in 2010 More than 40% of IBM’s workforce conducts business away from an office 5 Nobel Laureates 9 time winner of the President’s National Medal of Technology & Innovation - latest award for Blue Gene Supercomputer “ Let’s Build a Smarter Planet" The Smartest Machine On Earth 100 Years of Business & Innovation

IBM Centennial: Icon of Progress

Revisiting the questions leaders ask… How to create more and better jobs for their citizens? higher skill higher pay How to shift more work activities from routine physical, mental, interactional activities to higher-skill, higher-value activities? innovation (inventing best-practices, often from new ventures) transformation (implementing best-practices) How to invest in progress? continuously improve infrastructure continuously improve talent How to improve quality-of-life? sustainably, with less environmental impact, more recycling and less imports equal access to opportunity & justice, generation after generation, for the long-run

Overview: Elements of Interest Policies & Investments Run-Transform-Innovate Governance Frameworks Theories Models Sept 27 th Workshop at IBM Almaden Infrastructure & Environment (Technologies Deployed) Individuals & Certified Competences (Skills) Institutions & Roles (Jobs) Information, Quality-of-Life & Demographics (Careers) Infrastructure (Technologies Deployed) Individuals & Certified Competences (Skills) Institutions & Roles (Jobs) Information, Quality-of-Life Demographics (Careers) Infrastructure (Technologies Deployed) Individuals & Certified Competences (Skills) Institutions & Roles (Jobs) Information, Quality-of-Life Demographics (Careers) Infrastructure (Technologies Deployed) Individuals & Certified Competences (Skills) Institutions & Roles (Jobs) Information, Quality-of-Life Demographics (Careers) Infrastructure (Technologies Deployed) Individuals & Certified Competences (Skills) Institutions & Roles (Jobs) Information, Quality-of-Life Demographics (Careers) Infrastructure (Technologies Deployed) Individuals & Certified Competences (Skills) Institutions & Roles (Jobs) Information, Quality-of-Life Demographics (Careers) Infrastructure (Technologies Deployed) Individuals & Certified Competences (Skills) Institutions & Roles (Jobs) Information, Quality-of-Life Demographics (Careers) Region 1 Region 2 Future Present History Policies & Investments Run-Transform-Innovate Governance Policies & Investments Run-Transform-Innovate Governance Policies & Investments Run-Transform-Innovate Governance Policies & Investments Run-Transform-Innovate Governance

Understanding Service Science Stimulus: Service Growth The World IBM Response: Service Science Cambridge University Report Arizona State University Report Focus: Understand Service Systems Service systems thinking: The ABC’s Service systems dynamics: Four drivers of change Service systems re-design: Example Future: Holistic Product-Service Systems Agriculture as local manufacturing (robotic factories) Manufacturing as a local recycling service An ecology of nested, networked holistic product-service systems

Growth of Service in National Economies Daryl Pereira/Sunnyvale/IBM@IBMUS, Parallels the growth of cities and the digital knowledge economy High Talent Individuals High Tech Infrastructure 42% 64 33 3 1.4 Germany 37% 26 11 63 2.1 Bangladesh 19% 20 10 70 1.6 Nigeria 45% 67 28 5 2.2 Japan 64% 69 21 10 2.4 Russia 61% 66 14 20 3.0 Brazil 34% 39 16 45 3.5 Indonesia 23% 76 23 1 5.1 U.S. 35% 23 17 60 14.4 India 142% 29 22 49 25.7 China 40yr Service Growth S % G % A % Labor % WW Nation World’s Large Labor Forces A = Agriculture, G = Goods, S = Service 2010 2010 NationMaster.com, International Labor Organization Note: Pakistan, Vietnam, and Mexico now larger LF than Germany US shift to service jobs (A) Agriculture: Value from harvesting nature (G) Goods: Value from making products (S) Service: Value from IT augmented workers in smarter systems that create benefits for customers and sustainably improve quality of life.

Growth of Service Revenue at IBM SOFTWARE SYSTEMS (AND FINANCING) SERVICES 2010 Pretax Income Mix Revenue Growth by Segment Services Software Systems 44% 17% 39% IBM Annual Reports

Stakeholder Priorities Education Research Business Government Service Systems Customer-provider interactions that enable value cocreation Dynamic configurations of resources: people, technologies, organisations and information Increasing scale, complexity and connectedness of service systems B2B, B2C, C2C, B2G, G2C, G2G service networks Service Science To discover the underlying principles of complex service systems Systematically create, scale and improve systems Foundations laid by existing disciplines Progress in academic studies and practical tools Gaps in knowledge and skills Develop programmes & qualifications Service Innovation Growth in service GDP and jobs Service quality & productivity Environmental friendly & sustainable Urbanisation & aging population Globalisation & technology drivers Opportunities for businesses, governments and individuals Skills & Mindset Knowledge & Tools Employment & Collaboration Policies & Investment Develop and improve service innovation roadmaps, leading to a doubling of investment in service education and research by 2015 Encourage an interdisciplinary approach The white paper offers a starting point to - The Birth of Service Science: A Framework for Progress ( http://www.ifm.eng.cam.ac.uk/ssme/ ) Source: Workshop and Global Survey of Service Research Leaders (IfM & IBM 2008) Glossary of definitions, history and outlook of service research, global trends, and ongoing debate 1. Emerging demand 2. Define the domain 3. Vision and gaps 4. Bridge the gaps 5. Call for actions

Priorities: Research Framework for the Science of Service (2010) Source: Global Survey of Service Research Leaders (Ostrom et al 2010) Pervasive Force: Leveraging Technology to Advance Service Strategy Priorities Execution Priorities Fostering Service Infusion and Growth Improving Well-Being through Transformative Service Creating and Maintaining a Service Culture Stimulating Service Innovation Enhancing Service Design Optimizing Service Networks and Value Chains Effectively Branding and Selling Services Enhancing the Service Experience through Cocreation Measuring and Optimizing the Value of Service Development Priorities

Service Systems Thinking: ABC’s Example Provider: College (A) Example Target: Student (C) Discuss: Who is the Customer (B)? Student? They benefit… Parents? They often pay… Future Employers? They benefit… Professional Associations? Government, Society? A B C A. Service Provider Individual Institution Public or Private C. Service Target: The reality to be transformed or operated on by A, for the sake of B Individuals or people, dimensions of Institutions or business and societal organizations, organizational (role configuration) dimensions of Infrastructure /Product/Technology/Environment, physical dimensions of Information or Knowledge, symbolic dimensions B. Service Customer Individual Institution Public or Private Forms of Ownership Relationship (B on C) Forms of Service Relationship (A & B co-create value) Forms of Responsibility Relationship (A on C) Forms of Service Interventions (A on C, B on C) Spohrer, J., Maglio, P. P., Bailey, J. & Gruhl, D. (2007). Steps toward a science of service systems. Computer, 40 , 71-77. From… Gadrey (2002), Pine & Gilmore (1998), Hill (1977) Vargo, S. L. & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68 , 1 – 17. “ Service is the application of competence for the benefit of another entity.”

Service System Dynamics: Four Key Drivers of Change Provider: Technology (Tech) & Sustainable Value-Cocreation Models New technology to boost productivity & capacity (innovate) Use technology to perform routine manual, cognitive, and transactional work New relationship networks: Business models and new ventures (for-profit & non-profits) Customer: Self Service New self-service options to lower costs & expand choice (educate) Authority: Rules New rules to fix problems & achieve policy goals (regulate) Institutional diversity and governance of resource commons (Ostrom et. al.) Competitors: Rankings New rankings to guide decision-making & gain “valued” customers (differentiate) Hint: You want to be at the top of an independently ranked list of what customers are looking for… Especially for “valued” customers - calculating customer lifetime value (Rust et. al.)

Example Service System Re-Design: A College Course Problem: What if a college course had… Input: Student quality lower Process: Faculty motivation lower Output: Industry fit lower Solution: Tech + Self-Service E: -20% E-learning enrollment pre-certification F. +10% Faculty interest tuning J. +10% on-the-Job skills tuning After a decade the course may look quite different Service systems are learning systems: productivity, quality, compliance, sustainable innovation Maglio, P., Srinivasan, S., Kreulen, J.T., Spohrer, J. (2006), Service systems, service scientists, SSME, and innovation. Communications of the ACM, 49(7), 81-85. Year 1: 20% Year 2: 20% Year 3: 20% Year N: 20% . . . . . . . . E F J

Future: Holistic Product-Service Systems & Regional Innovation Ecosystems http://www.service-science.info/archives/1056 Examples: Nations, States, Cities, Universities, Luxury Hotels, Cruise Ships, Households “ Whole Service” Subsystems: Transportation, Water, Food, Energy, Communications, Buildings, Retail, Finance, Health, Education, Governance, etc. Definition: A service system that can support its primary populations, independent of all external service systems, for some period of time, longer than a month if necessary, and in some cases, indefinitely Balance independence with interdependence, without becoming overly dependent (outsourcing limits, maximum re-cycling for sustainability) ~25-50% of start-ups are new IT-enabled service offerings SaaS PaaS IaaS http://www.thesrii.org Nation State/Province City/Region Hospital Medical Research University Colleges K-12 Luxury Resort Hotels Family (household ) Person (professional ) For-profits Non-profits Start-Ups New Ventures

Universities Are Mini-Cities: A Complex System of Systems Universities can be the innovation centers for Smarter Cities (U-BEE) University-Based Entrepreneurial Ecosystems Cities can be living labs for University research Universities produce the skilled workforce for cities. Universities are among the largest employers (top 10) in a city. Universities faculty, deans, provosts, presidents are often well connected & influential in city governments. IBM and Tulane University Usher in a New Era for Smarter Buildings in New Orleans http://www-03.ibm.com/press/us/en/pressrelease/34694.wss As the largest private employer in the City of New Orleans, Tulane University has made significant advances in rebuilding in more environmentally sustainable ways both the community at large and its campus The IBM project is helping to transform the home of Tulane's School of Architecture, the century-old Richardson Memorial Hall, into a "smarter building living laboratory ," using IBM Intelligent Building Management while maintaining respect for its historic status

Universities connect innovation flows between Regions (“High Speed Bus”) World as System of Systems World (light blue - largest) Nations (green - large) States (dark blue - medium) Cities (yellow - small) Universities (red - smallest) Cities as System of Systems Transportation & Supply Chain Water & Waste Recycling Food & Products ((Nano) Energy & Electricity Information /ICT & Cloud (Info) Buildings & Construction Retail & Hospitality/Media & Entertainment Banking & Finance Healthcare & Family (Bio) Education & Professions (Cogno) Government (City, State, Nation) Nations: Innovation Opportunities GDP/Capita (level and growth rate) Energy/Capita (fossil and renewable) IBM UP WW: Tandem Awards: Increasing university linkages (knowledge exchange interactions) Developed Market Nations (> $20K GDP/Capita) Emerging Market Nations (< $20K GDP/Capita)

University Trend: Shift to e-Learning and IC U-BEEs University sub-systems Disciplines in Schools (circles) Innovation Centers (squares) E.g., CMU Website (2009) “ Research Centers: where it all happens – to solve real-world problems” Disciplines in Schools Award degrees Single-discipline focus Research discipline problems More e-Learning Innovation Centers (ICs) Industry/government sponsors Multi-disciplinary teams Research real-world systems U-BEEs: University-Based Entrepreneurial Ecosystems D D D D D D Engineering School Social Sciences, Humanities Professional Studies Business School water & waste transportation health energy/grid e-government Science & Mathematics I-School Design food & supply chain

U-BEEs: University-Based Entrepreneurial Ecosystems Universities as “Living Labs” for Host Cities UNIVERSITIES: Research Centers & Real-World Systems CITIES/METRO REGIONS: Universities Key to Long-Term Economic Development

Edu-Impact.Com: Growing Importance of Universities with Large, Growing Endowments “ 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.”

Urban-Age.Net Currently, the world’s top 30 cities generate 80% of the world’s wealth. The Urban Age For the first time in history more than 50% the earth’s population live in cities - by 2050 it will be 75% The Endless City

World Population & Service System Scaling: Quality-of-Life Measures

The need for efficiency in buildings is clear 2 nd Real estate is the 2 nd largest expense on the income statement. 50% Up to 50% of energy and water in buildings are often wasted. 2025 By 2025, buildings will be the #1 consumer of energy. 2x Data center energy use doubling every 5 years .

The benefits from improving building efficiency are real 18% rise in productivity Employee productivity increased up to 18% on average. 91% occupancy Higher building usage and re- up rates in smarter buildings. 40% reduction Energy usage reduced by up to 40% and maintenance cost 10-30%. 65% of occupants Willing to help make their workplace more environmentally responsible.

How does a building operate today? Building Systems Building & Communications Services Facilities Management Processes Interaction with Externalities Portfolio Estates Mgmt Occupancy Space Mgmt Waste Mgmt Trash/Water/Recycle Compliance Environmental reports Tenant Services Help Desk Asset Mgmt Lifecycle Building Services Maintenance Industry Specific Hospital, hotel, etc. Energy Use Passive/Active Fire Functionality checks, Detector service Water Smart Meters, Use / Flow Sensing HVAC Fans, Variable Air Volume, Air Quality Elevators Maintenance, Performance Access/Security Badge in, Cameras, Integration Perimeter, Doors, Floors, Occupancy Lighting Occupancy Sensing 24/7 Monitoring Condition Monitoring, Parking Lot Utilization Energy Smart Meters, Demand response Community Services Transportation, Traffic, Events Utilities Demand Mgmt, Cost Control Weather Current Predictions Emergency Services Alerts, Actions Commercial Potential Advertisement

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

Time ECOLOGY 14B Big Bang (Natural World) 10K Cities (Human-Made World) sun (energy) writing (symbols and scribes, stored memory and knowledge) earth (molecules & stored energy) written laws (governance and stored control) bacteria (single-cell life) sponges (multi-cell life) money (governed transportable value stored value, “ economic energy”) universities (knowledge workers) clams (neurons) trilobites (brains) printing press (books) steam engine (work) Where is the “Real Science” - mysteries to explain? In the many sciences that study the natural and human-made worlds… Unraveling the mystery of evolving hierarchical-complexity in new populations… To discover the world’s architectures and mechanisms for computing non-zero-sum Entity Architectures (Є N ) of nested, networked Holistic-Product-Service-Systems (HPSS) 200M bees (social division-of-labor) 60 transistor (routine cognitive work)

Service Science: Conceptual Framework Resources: Individuals, Institutions, Infrastructure, Information Stakeholders: Customers, Providers, Authorities, Competitors Measures: Quality, Productivity, Compliance, Sustainable Innovation Access Rights: Own, Lease, Shared, Privileged Spohrer, JC (2011) On looking into Vargo and Lusch's concept of generic actors in markets, or “ It's all B2B …and beyond!” Industrial Marketing Management, 40(2), 199–201. Ecology (Populations & Diversity) Entities (Service Systems, both Individuals & Institutions) Interactions (Service Networks, link, nest, merge, divide) Outcomes (Value Changes, both beneficial and non-beneficial) Value Proposition (Offers & Reconfigurations/ Incentives, Penalties & Risks) Governance Mechanism (Rules & Constraints/ Incentives, Penalties & Risks) Access Rights (Relationships of Entities) Measures (Rankings of Entities) Resources (Competences, Roles in Processes, Specialized, Integrated/Holistic) Stakeholders (Processes of Valuing, Perspectives, Engagement) Identity (Aspirations & Lifecycle/ History) Reputation (Opportunities & Variety/ History) prefer sustainable non-zero-sum outcomes, i.e., win-win win-win lose-lose win-lose lose-win

Service system entities configure four types of resources First foundational premise of service science: Service system entities dynamically configure four types of resources Resources are the building blocks of entity architectures Named resources are: Physical or Not-Physical Physicist resolve disputes Named resources have: Rights or No Rights Judges resolve disputes Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . Formal service systems can contract to configure resources/apply competence Informal service systems can promise to configure resources/apply competence Trends & Countertrends (Balance Chaos & Order): (Promise) Informal <> Formal (Contract) (Relationships & Attention) Social <> Economic (Money & Capacity) (Power) Political <> Legal (Rules) (Evolved) Natural <> Artificial (Designed) (Creativity) Cognitive Labor <> Information Technology (Routine) (Dance) Physical Labor <> Mechanical Technology (Routine) (Relationships) Social Labor <> Transaction Processing (Routine) (Atoms) Transportation <> Communication (Bits) (Tacit) Qualitative <> Quantitative (Explicit) (Secret) Private <> Public (Shared) (Anxiety-Risk) Challenge <> Routine (Boredom-Certainty) (Mystery) Unknown <> Known (Justified True Belief) Physical Not-Physical Rights No-Rights 2. Technology/ Environment Infrastructure 4. Shared Information / Symbolic Knowledge People/ Individuals 3. Organizations/ Institutions

Service system entities calculate value from multiple stakeholder perspectives Second foundational premise of service science Service system entities calculate value from multiple stakeholder perspectives Value propositions are the building blocks of service networks A value propositions can be viewed as a request from one service system to another to run an algorithm (the value proposition) from the perspectives of multiple stakeholders according to culturally determined value principles. The four primary stakeholder perspectives are: customer, provider, authority, and competitor Citizens: special customers Entrepreneurs: special providers Parents: special authority Criminals: special competitors Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . Value propositions coordinate & motivate resource access Model of competitor: Does it put us ahead? Can we stay ahead? Does it differentiate us from the competition? Will we? (invest to make it so) Strategic Sustainable Innovation (Market share) 4.Competitor (Substitute) Model of authority: Is it legal? Does it compromise our integrity in any way? Does it create a moral hazard? May we? (offer and deliver it) Regulated Compliance (Taxes and Fines, Quality of Life) 3.Authority Model of self: Does it play to our strengths? Can we deliver it profitably to customers? Can we continue to improve? Can we? (deliver it) Cost Plus Productivity (Profit, Mission, Continuous Improvement, Sustainability) 2.Provider Model of customer: Do customers want it? Is there a market? How large? Growth rate? Should we? (offer it) Value Based Quality (Revenue) 1.Customer Value Proposition Reasoning Basic Questions Pricing Decision Measure Impacted Stakeholder Perspective (the players)

Service system entities reconfigure access rights to resources by mutually agreed to value propositions Third foundational premise of service science Service system entities reconfigure access rights to resources by mutually agreed to value propositions Access rights are the building blocks of the service ecology (culture and information) Access rights Access to resources that are owned outright (i.e., property) Access to resource that are leased/contracted for (i.e., rental car, home ownership via mortgage, insurance policies, etc.) Shared access (i.e., roads, web information, air, etc.) Privileged access (i.e., personal thoughts, inalienable kinship relationships, etc.) Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . service = value-cocreation B2B B2C B2G G2C G2B G2G C2C C2B C2G *** provider resources Owned Outright Leased/Contract Shared Access Privileged Access customer resources Owned Outright Leased/Contract Shared Access Privileged Access OO SA PA LC OO LC SA PA S A P C Competitor Provider Customer Authority value-proposition change-experience dynamic-configurations (substitute) time

Service system entities interact to create ten types of outcomes Four possible outcomes from a two player game ISPAR generalizes to ten possible outcomes win-win: 1,2,3 lose-lose: 5,6, 7, maybe 4,8,10 lose-win: 9, maybe 8, 10 win-lose: maybe 4 Maglio PP, SL Vargo, N Caswell, J Spohrer: (2009) The service system is the basic abstraction of service science. Inf. Syst. E-Business Management 7(4): 395-406 (2009) lose-win (coercion) win-win (value-cocreation) lose-lose (co-destruction) win-lose (loss-lead) Win Lose Provider Lose Win Customer ISPAR descriptive model

Service system entities learn to systematically exploit technology: Technology can perform routine manual, cognitive, transactional work March, J.G. (1991) Exploration and exploitation in organizational learning. Organizational Science. 2(1).71-87. Sanford, L.S. (2006) Let go to grow: Escaping the commodity trap. Prentice Hall. New York, NY. L Learning Systems (“Choice & Change”) Exploitation (James March) Exploration (James March) Run/Practice-Reduce (IBM) Transform/Follow (IBM) Innovate/Lead (IBM) Operations Costs Maintenance Costs Incidence Planning & Response Costs (Insure) Incremental Radical Super-Radical Internal External Interactions “ To be the best, learn from the rest” “ Double monetize, internal win and ‘sell’ to external” “ Try to operate inside the comfort zone”

Service system entities are physical-symbol systems Service is value cocreation. Service system entities reason about value. Value cocreation is a kind of joint activity. Joint activity depends on communication and grounding. Reasoning about value and communication are (often) effective symbolic processes. Newell, A (1980) Physical symbol systems, Cognitive Science , 4, 135-183. Newell, A & HA Simon(1976). Computer science as empirical inquiry: symbols and search. Communications of the ACM, 19, 113-126.

Summary Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . 5. Exploit information & technology 6. Physical-Symbol Systems Physical Not-Physical Rights No-Rights 2. Technology/ Infrastructure 4.. Shared Information People/ Individuals 3. Organizations/ Institutions 1. Dynamically configure resources (4 I’s) Model of competitor: Does it put us ahead? Will we? Strategic Sustainable Innovation 4.Competitor/ Substitutes Model of authority: Is it legal? May we? Regulated Compliance 3.Authority Model of self: Does it play to our strengths? Can we? Cost Plus Productivity 2.Provider Model of customer: Do customers want it? Should we? Value Based Quality 1.Customer Reasoning Questions Pricing Measure Impacted Stakeholder Perspective 2. Value from stakeholder perspectives S A P C 3. Reconfigure access rights 4. Ten types of outcomes (ISPAR)

Learning More About Service Systems… Fitzsimmons & Fitzsimmons Graduate Students Schools of Engineering & Businesses Teboul Undergraduates Schools of Business & Social Sciences Busy execs (4 hour read) Ricketts Practitioners Manufacturers In Transition And 200 other books… Zeithaml, Bitner, Gremler; Gronross, Chase, Jacobs, Aquilano; Davis, Heineke; Heskett, Sasser, Schlesingher; Sampson; Lovelock, Wirtz, Chew; Alter; Baldwin, Clark; Beinhocker; Berry; Bryson, Daniels, Warf; Checkland, Holwell; Cooper,Edgett; Hopp, Spearman; Womack, Jones; Johnston; Heizer, Render; Milgrom, Roberts; Norman; Pine, Gilmore; Sterman; Weinberg; Woods, Degramo; Wooldridge; Wright; etc. URL: http://www.cob.sjsu.edu/ssme/refmenu.asp Reaching the Goal: How Managers Improve a Services Business Using Goldratt’s Theory of Constraints By John Ricketts, IBM Service Management: Operations, Strategy, and Information Technology By Fitzsimmons and Fitzsimmons, UTexas Service Is Front Stage: Positioning services for value advantage By James Teboul, INSEAD

Service Systems Are Complex Systems Types A = Informal B = Formal Dimensions 1. Social Systems 2. Technical Systems 3. Environmental Systems 4. Economic Systems 5. Political Systems 6. Learning Systems 7. Information Systems 8. Physical-Symbol Systems A. B. 1. 2. 3. 4. 5. 6. 7. 8.

What about advanced manufacturing? http://www.youtube.com/watch?v=nd5WGLWNllA

Rethinking “Product-Service Systems” F B Service System Entity Product-Service-System B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F F F B B Service Business Product Business Front-Stage Marketing/Customer Focus Back-Stage Operations/Provider Focus Based on Levitt, T (1972) Production-line approach to service. HBR. e.g., IBM e.g., Citibank “ Everybody is in service... Something is wrong… The industrial world has changed faster than our taxonomies.”.

Example Service Systems Innovation Framework “ The Ten Types of Innovation” by Larry Keeley, Doblin Inc. Innovate (inside and outside) systems that create value

Most Wanted: A CAD for Service System Design CBM: Component Business Model WBM and RUP: Work Practices & Processes SOA: Technical Service-Oriented Architecture Key Performance Indicators (KPIs) IBM IBV: Component Business Models IEEE Computer, Jan 2007

Ultimately, a Service Ecology Simulation Tool is Needed 2000 2010 2020 2030 Log Entities 6 9 12 15 Projected Simulation Capability Earth Simulator Universe Simulation Brain Simulation Heart Simulation CBM-based Industry Simulations - 2013? Every decade both HPC and PC platforms increase complex simulation capabilities by 1000x. - HPC: (2000 10 6 ), (2010 10 9 ), (2020 10 12 ), (2030 10 15 ) … - PC: (2000 10 3 ), (2010 10 6 ), (2020 10 9 ), (2030 10 12 ) …

A Game of Life: Essentials Game = board with squares & rules Infrastructure both Environmental and Technological PS (Physical Systems - Environment) Natural Endowment (hidden & observable information ) PSS (Physical Symbol Systems – Environment & Technology) Biological PSS (observable information – DNA, RNA, proteins, etc.) Technological PSS (observable information – states of system, bits, etc.) Life = multiple generations of entities Entities = SSE (Service System Entities) Individuals with Competencies & Life-Spans Competencies (vary with age) Life-Spans (vary with stage) Institutions with Roles & Rules Roles (Competency-Levels and Pay-Levels) Rules (Compliance-Levels and Tax-Levels) Physical Not-Physical Rights No-Rights 2. Technology/ Environmental Infrastructure 4. Shared Information 1. People/ Individuals 3. Organizations/ Institutions 1. Dynamically configure resources (4 I’s)

Life = Multiple Generations of Entities (200 years = 10 generations x 20 years) Pedagogy: Ten Social-Technological-Economic-Environmental-Political (STEEP) Stages Thought Experiment: Binary-Board-Space (Rule: Toggles Each Generation) Hunter-Gatherer Knowledge-Value Economy 1 - 2K population (20 people/sq mile * 100 sq miles) Transition Hunter-Gatherer Knowledge-Value Economy 2 - 4K population (40 people/sq mile * 100 sq miles) Agricultural Knowledge-Value Economy 1 - 8K population (80 people/sq mile * 100 sq miles) Transition Agricultural Knowledge-Value Economy 2 - 16K population (160 people/sq mile * 100 sq miles) Manufacturing Knowledge-Value Economy 1 - 32K population (320 people/sq mile * 100 sq miles) Transition Manufacturing Knowledge-Value Economy 2 - 64K population (640 people/sq mile * 100 sq miles) Service-Information Knowledge-Value Economy 1 - 128K population (1,280 people/sq mile * 100 sq miles) Transition Service-Information Knowledge-Value Economy 2 - 256K population (2,560 people/sq mile * 100 sq miles) Sustainable-Innovation Knowledge-Value Economy 1 - 512K population (5,120 people/sq mile * 100 sq miles) Transition Sustainable-Innovation Knowledge-Value Economy 2 - 1024K population (10,240 people/sq mile * 100 sq miles) And beyond! 10 miles In Use Recycle Rule: Toggles Each Generation

Game = Board with Squares & Rules Example: Possible STEEP Stages 9 & 10 ( infrastructure , sustainable-innovation cities) Imagine nested holistic product-service-systems entities… 10 Continents/planet 10 Nations/continent 10 States/nation 10 Cities/state 4 Sectors/city (interconnect to others) 11 Systems/sector Rules: Board-space toggles each generation 20 years/generation New infrastructure/generation World: Further Pedagogical Purposes “ World Simulator” benchmarking Search to accelerate learning 10,000 city experiments/generation Low skill/raw materials > Hi-talent/tech Each generation new outcomes Talents (skills & jobs) Technologies (recycle & rebuild) Investments (script & performance) Occupied (In Use) Recycling (De-construction & Re-construction) water food/products energy ICT R&H/M&E/C&S finance health education governance transportation buildings/family Sector 1 city interconnect 11 Systems Sector 2 state interconnect Sector 3 nation interconnect Sector 4 continent interconnect High Talent Individuals High Tech Infrastructure Toggle each generation – 20 year cycle

Entities = Life-Cycle Script Example: Possible STEEP Stages 9 & 10 ( individuals, multiple generations of entities) Children – Age 0-20 (Local & Global) Grow, Learn , & Have Fun Parents – Age 20-40 (offspring 2) (Next Local) Reproduce, Raise Children, & Build New “City” SET Stage Grand-Parents – Age 40-60 (offspring 4) (Local) Run the “City” You Built & Connect with Family Great-Grand-Parents – Age 60-80 (offspring 8) (Global) Travel the World, Enjoy Experiences, & Share Ideas Great-Great-Grand-Parents – Age 80-100 (offspring 16) (Local) Return, Reconnect, and Document History & Future Plans Great-Great-Great-Grand-Parents – Age 100-120 (offspring 32) (Local & Global) Celebrate, Tell Stories, Depart & Explore Further Realms

The Game of Life: Service Science Framework The Game Board: A configuration of PS (Physical Systems), with interspersed PSS (Physical Symbol Systems) and SSE (Service System Entities). The SSE are PSS are PS The infrastructure is PS + PSS The PS have hidden information (state) The PSS have observable information (state and read-write) The SSE use information to co-create value World model – information about the world (The Game Board) Self model – information about self (SSE) The SSE have a beginning and an end (life-cycle) The SSE judge quality-of-life across their life-cycle The game is each generation of SSE try to improve quality-of-life, by improving the capabilities of the infrastructure (less waste, more support for SSE activities) and the capabilities of the SSE to co-create value (an SSE activity) The starting game board consists of PS with a few PSS, and the goal is to see how quickly and with how little energy and with how few types and tokens of PS, the PSS can become SSE and reconstruct a high level infrastructure and high quality of life and continuously improve at a sustainable pace. Processes of valuing are based on the above

Understanding the Human-Made World See Paul Romer’s Charter Cities Video: http://www.ted.com/talks/paul_romer.html Also see: Symbolic Species, Deacon Company of Strangers, Seabright Sciences of the Artificial, Simon

Fun: CityOne Game to Learn “CityInvesting” Serious Game to teach problem solving for real issues in key industries, helping companies to learn how to work smarter. Energy, Water, Banking, Retail http://www.ibm.com/cityone

Where are the opportunities? Everywhere!

2011 Priorities Regions Readiness Recruiting Revenue Research Events & Ecosystem Alignment - BIG EVENTS (Centennial, Watson, etc.) - EXTERNAL STAKEHOLDERS (Professional Associations, National Academies, Science Foundation) - INTERNAL STAKEHOLDERS (S&D, GBS, GTS, STG, SWG, HR, CC&CA, IDR, VC, etc.) Awards Programs CLASSICS: Shared University Research, Open Collaborative Research, Faculty, PhD Fellowships SPECIALS: Special Award Programs, Named Awards, Smarter Planet Curriculum Awards LEVERAGE: Leverage IBM CCC&A with government, foundation, and other external award programs IBM on Campus -- ON CAMPUS IBMERS (Checklist for University Relationship Maturity Audit) -- IBM CENTERS (CAS, IIE, University Delivery Centers, Research Collaboratories, etc.) -- ALIGNMENT (IBM Cloud Academy, City Shared Service, Smarter City Challenge, etc.) Growth Markets REGIONAL INNOVATION ECOSYSTEMS (Smarter City Challenge, Universities as Living Labs) TANDEM AWARDS (connect developed & emerging Twin Towns & Sister Cities to Boost Quality) ACCELERATING INNOVATION (Bi-Directional Learning’ To Be The Best Learn From The Rest) Cloud Computing & Analytics - BIG DATA (High Performance Computing, Grand Challenges, Boost University Rankings) - SHARED SERVICE (IBM Cloud Academy, IBM Academic Cloud, VCL) - DEEP-QA (Analytics Skills, Watson technology, Massive Analytics, Stream Computing) Smarter Cities and Service Innovation --INTERNET OF THINGS (Instrumented, Interconnected, Intelligent) - LIVING LABS (Triple Helix Innovations, Smarter Buildings, Asset Management, CityForward.org) - QUALITY-OF-LIFE (Holistic Modeling (CityOne), STEM Education Pipeline, Jobs & Entrepreneurship) Responsibility PRIORITY AREA

What We Do: The “6 R’s” (not to be confused with 3 R’s) 1. Research Awards focus on grand challenge problems and big bets https://www.ibm.com/developerworks/university/research 2. Readiness Access to IBM tools, methods, and course materials to develop skills https://www.ibm.com/developerworks/university/academicinitiative 3. Recruiting Internships and full-time positions working to build a smarter planet http://www.ibm.com/jobs 4. Revenue Public-private partnerships build great universities and strengthen regions http://www.ibm.com/services/us/gbs/bus/html/bcs_education.html 5. Regions Regional innovation ecosystems – incubators, entrepreneurship, jobs http://www.ibm.com/ibm/governmentalprograms/innovissue.html 6. Responsibility Community service provides access to expertise/resources http://www.ibm.com/ibm/ibmgives/

Co-investing to improve capabilities of individuals & institutions. Realizing profitable & sustainable improvements. Smarter cities/regions improve quality-of-life (for all of us!) Where We Focus: People and Planet Research Recruiting Skills People Individuals & Disciplines Government Industry Academia Planet Institutions & Systems Talent Infrastructure

Vision for the Educational Continuum: Individuals & Institutions Learning The Educational Continuum http://www-935.ibm.com/services/us/gbs/bus/html/education-for-a-smarter-planet.html Any Device Learning TECHNOLOGY IMMERSION PERSONAL LEARNING PATHS Student-Centered Processes KNOWLEDGE SKILLS Learning Communities GLOBAL INTEGRATION Services Specialization ECONOMIC ALIGNMENT Systemic View of Education Intelligent Aligned Data Outcomes Insight Instrumented Student-centric Integrated Assessment Interconnected Shared Services Interoperable Processes Continuing Education Higher Education Secondary School Primary School Workforce Skills Individuals Learning Continuum Institutions Learning Continuum Economic Sustainability

Priority 1: Urban Sustainability & Service Innovation Centers A. Research: Holistic Modeling & Analytics of Service Systems Modeling and simulating cities will push state-of-the-art capabilities for planning interventions in complex system of service systems Includes maturity models of cities, their analytics capabilities, and city-university interactions Provides an interdisciplinary integration point for many other university research centers that study one specialized type of system Real-world data and advanced analytic tools are increasingly available B. Education: STEM (Science Tech Engineering Math) Pipeline & LLL City simulation and intervention planning tools can engage high school students and build STEM skills of the human-made world (service systems) Role-playing games can prepare students for real-world projects LLL = Life Long Learning C. Entrepreneurship: Job Creation City modeling and intervention planning tools can engage university students and build entrepreneurial skills Grand challenge competitions can lead to new enterprises

A. Flow of things 1. Transportation : Traffic congestion; accidents and injury 2. Water : Access to clean water; waste disposal costs 3. Food : Safety of food supply; toxins in toys, products, etc. 4. Energy : Energy shortage, pollution 5. Information : Equitable access to info and comm resources B. Human activity & development 6. Buildings : Inefficient buildings, environmental stress (noise, etc.) 7. Retail : Access to recreational resources 8. Banking : Boom and bust business cycles, investment bubbles 9. Healthcare : Pandemic threats; cost of healthcare 10. Education : High school drop out rate; cost of education C. Governing 11. Cities : Security and tax burden 12. States : Infrastructure maintenance and tax burden 13. Nations : Justice system overburdened and tax burden Cities as Holistic Service Systems: All the systems Example: Singapore Population Challenges Careers Opportunities

Universities as Holistic Service Systems: All the systems A. Flow of things 1. Transportation : Traffic congestion; parking shortages. 2. Water : Access costs; reduce waste 3. Food : Safety; reduce waste. 4. Energy : Access costs; reduce waste 5. Information : Cost of keeping up best practices. B. Human activity & development 6. Buildings : Housing shortages; Inefficient buildings 7. Retail : Access and boundaries. Marketing. 8. Banking : Endowment growth; Cost controls 9. Healthcare : Pandemic threat. Operations. 10. Education : Cost of keeping up best practices.. C. Governing 11. Cities : Town & gown relationship. 12. States : Development partnerships.. 13. Nations : Compliance and alignment.

University: The Heart of Regional Innovation Ecosystems School of Public Policy School of Engineering School of Business Mngmnt School of Medicine School of Education School of Architecture School of Urban Planning School of Hospitality School of Information School of Science & Arts University: The Heart of Regional Innovation Ecosystems Incubator & Start-Ups $ Cities & Public Safety Government Service to Individuals & Institutions Education Transportation Energy ICT (Computing & Communications) Retail & Hospitality Food & Products Health Building Finance University: The Heart of Regional Innovation Ecosystems

Job Roles: University Research and Education Water Supply Transportation Energy, Electric Grid Cities, Buildings Healthcare Education/Government General Methods & Techniques Specific Technology SP Service Systems Cross Industry Skills Industry Specific Skills Job Roles Systems Engineering/ Analytics/BAO/SSME University Research fuels Model Systems Connect/capture Data Integrate, Analyze Improve, Automate Optimize, Evolve Run Transform Innovate Synapsense, SensorTronics Infosphere Streams, ILOG, COGNOS WS, Tivoli, Rational, DB2, etc. BAO, Green Sigma Specialists Consultant Project Manager Sales Architect

Job Roles: IBM Building Smarter Enterprises & A Smarter Planet https://jobs3.netmedia1.com/cp/find.ibm.jobs/location/ 1. Consultant (trusted advisor to customer) a value proposition to address problems or opportunities and enhance value co-creation relationships 2. Sales a signed contract that defines work, outcomes, solution, rewards and risks for all parties 4. Project Manager (often with co-PM from customer side) a detailed project plan that balances time, costs, skills availability, and other resources, as well as adaptive realization of plan 3. Architect (systems engineer, IT & enterprise architect) An elegant solution design that satisfies functional and non-functional constraints across the system life-cycle 5. Specialists (systems engineer, Research, engineer, Industry specialist, application, technician, data, analyst, professional, agent) a compelling working system (leading-edge prototype systems from Research) ~10% ~10% ~5% ~5% ~45% 6. Enterprise Operations Administrative Services, Other, Marketing & Communications Finance, Supply Chain, Manufacturing, Human Resources, Legal, General Executive Management ~25% IBM Employees ~10% Consultant ~10% Sales ~5% Architect ~5% Project Manager ~45% Specialists ~25% Enterprise Operations Project Mix From 90-10 to 80-20: B2B – Business to Business B2G – Business to Government

US National Academy of Engineering Grand Challenges A. Systems that focus on flow of things humans need 1. Transportation & Supply Chain Restore and enhance urban infrastructure 2. Water & Waste/Climate & Green tech Provide access to clear water 3. Food & Products Manager nitrogen cycle 4. Energy & Electricity Make solar energy economical Provide energy from fusion Develop carbon sequestration methods 5. Information & Communication Technology Enhance virtual reality Secure cyberspace Reverse engineer the brain B. Systems that focus on human activity & development 6. Buildings & Construction (smart spaces) Restore and enhance urban infrastructure 7. Retail & Hospitality/Media & Entertainment (tourism) Enhance virtual reality 8. Banking & Finance/Business & Consulting 9. Healthcare & Family Life Advance health informatics Engineer better medicines Reverse engineer the brain 10. Education & Work Life/Jobs & Entrepreneurship Advance personalized learning Engineer the tools of scientific discovery C. Systems that focus on human governance 11. City & Security Restore and improve urban infrastructure Secure cyberspace Prevent nuclear terror 12. State /Region & Development 13. Nation & Rights

Measuring Impact SSME: IBM Icon of Progress & IBM Research Outstanding Accomplishment Internal 10x return: CBM, IDG, SDM Pricing & Costing, BIW COBRA, SIMPLE, IoFT, Fringe, VCR Key was tools to model customers & IBM better Also tools to shift routine physical, mental, interactional & identify synergistic new ventures Alignment with Smarter Planet & Analytics (instrumented, interconnected, intelligent) Alignment with Smarter Cities, Smarter Campus, Smarter Buildings (Holistic Service Systems) External: More than $1B in national investments in Service Innovation activities External: Increase conferences, journals, and publications External: Service Science SIGs in Professional Associations External: Course & Program Guidelines for T-shaped Professionals, 500+ institutions External: National Service Science Institutions, Books & Case Studies (Open Services Innovation) Service Research, a Portfolio Approach 1. Improve existing offerings (value propositions) 2. Create new offerings 3. Improve insourcing, outsourcing, acquisitions, divestitures results 4. For all three of the above, improve customer/partner capabilities (ratchet each other up) 5. For all four of the above, increase patents and service IP assets 6. For all five of the above, increase publications and service system body-of-knowledge

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

Come visit IBM Almaden Research Center, San Jose, CA July 2012 ISSS San Jose HSSE San Francisco SRII San Jose More Information Service-Science.info Slideshare.net/spohrer @JimSpohrer [email_address]

Service science t shaped for smarter planet 20110727 v1

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