© 2011 ibm corporation ibm university programs worldwide, accelerating regional development (ibm...

2011 IBM Corporation IBM University Programs worldwide, accelerating regional development (IBM Upward) Holistic Service Engineering for a Smarter Planet Dr. James (Jim) C. Spohrer, [email protected]@us.ibm.com Innovation Champion and Director IBM UPward (University Programs worldwide - accelerating regional development) UTEP Engineering in the Conceptual Age Thursday September 15, 2011 Working Together to Build a Smarter Planet

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 2 Outline Introduction: History & Future History of Engineering IBM: History & Future Predicting the Future Holistic Service Engineering Evolution: Smarter Planet What are Smarter Service Systems? How to measure Quality-of-Life? How to visualize Service Science? Whats the Skills Goal? Hint: T-Shaped People Where are the Opportunities? Where is the Real Science in SSME+D? Lets Build a Smarter Planet"

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 3 A new engineering discipline about every decade Antiquity Weapons & Defense Military Engineering 1852 Buildings, Roads & Bridges Civil Engineering (ASCE) 1880 Steam Engines & Machinery Mechanical Engineering (ASME) 1884 Electric Grid & Appliances Electrical Engineering (AIEE/IEEE) 1907 Better Farms & Crops Agriculture & Biological Engineering (ASAE/ASABE) 1908 Fuels, Fertilizers,etc. Chemical Engineering (AICE) 1948 Better Factories & Automation Industrial Engineering (ASIE/IIE) 1948 Computers Computing Machinery (ACM) 1954 Power Plants Nuclear Engineering (ANS) 1955 Sustainable Construction Environmental Engineering (AAEE) 1963 Jets and Rockets Aerospace Engineering (AIAA) 1968 Medical Instruments Biomedical Engineering (BMES) 1985 Better Plants & Animals Genetic Technologists (AGT) 1992 Financial Instruments Financial Engineering (IAFE) 1993 Applications & Web Sites Software Engineering (JCESEP) 2007 Holistic Service Systems Service Research & Innovation Initiative (theSRII.org) Service Science, Management, and Engineering + Design (SSME+D) Service Enterprise Engineering (SEE) Service Systems Engineering (SSE)

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 4 IBM Centennial: 100 Years of Innovation

$20K GDP/Capita) Emerging Market Nations (< $20K GDP/Capita) IBM UP WW: Tandem Awards: Increasing university linkages (knowledge exchange interactions)">

34 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) Developed Market Nations (> $20K GDP/Capita) Emerging Market Nations (< $20K GDP/Capita) IBM UP WW: Tandem Awards: Increasing university linkages (knowledge exchange interactions)

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 35 Systems-Disciplines Matrix: Visualizing the Scope of Service Science Disciplines Stakeholder-focus E.g., Customer = marketing Resource-focus E.g., Technology = engineering Change-focus E.g., Future = design Value-focus E.g., Innovation = entrepreneurship Stakeholders Resources Change Value FlowsHuman Development Governance Systems Flows E.g., Transportation Human Development E.g., Health Governance E.g., City-level-security

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 36 Systems-Discipline Matrix: More Detail disciplines systems

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 37 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

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 38 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

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 39 Interactions are Key Johnson, B., Manyika, J., & Yee, L. (2005). The next revolution in interactions. McKinsey Quarterly, 4, 20-33. As more 21 st century companies come to specialize in core activities and outsource the rest, they have greater need for workers who can interact with other companies, their customers, and their suppliers. Raising the productivity of employees whose jobs cant be automated is the next great performance challenge and the stakes are high. Companies that get that right will build complex talent-based competitive advantages that competitors wont be able to duplicate easily if at all.

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 40 Where are the opportunities? Everywhere!

41 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) 200M bees (social division-of-labor) 60 transistor (routine cognitive 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 worlds architectures and mechanisms for computing non-zero-sum Entity Architectures ( N ) of nested, networked Holistic-Product-Service-Systems (HPSS)

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 42 A Science of Smarter Service Systems Computational System Smarter Technology Requires investment roadmap Service Systems: Stakeholders & Resources 1. Individuals (People) 2. Infrastructure (Technology) 3. Shared Information (QoL Decision-Making) 4. Societal Institutions (Acad., Industry, Gov.) connected by win-win value propositions Smarter Buildings, Universities, Cities Requires investment roadmap

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 43 Come visit IBM Almaden Research Center, San Jose, CA Upcoming Conferences Sept 27 th, 2011 Future Technologies, Skills & Jobs July 2012 ISSS & SRII San Jose HSSE San Francisco More Information Blog www.service-science.info Twitter @JimSpohrer Presentations www.slideshare.net/spohrer Email [email protected]

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 44 Thank-You! Questions? Dr. James (Jim) C. Spohrer Innovation Champion & Director, IBM University Programs & open worldwide entrepreneurship research (IBM UPower) WW [email protected] Instrumented, Interconnected, Intelligent Lets build a Smarter Planet. IBM If we are going to build a smarter planet, lets 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 Todays problems may come from yesterdays 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

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 45 Overview: Elements of Interest Infrastructure & Environment (Technologies Deployed) Individuals & Certified Competences (Skills) Institutions & Roles (Jobs) Information, Quality-of-Life & Demographics (Careers) Policies & Investments Run-Transform-Innovate Governance 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 1Region 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 Frameworks Theories Models Sept 27 th Workshop at IBM Almaden

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 46 Laws of Service? Computational power doubles at a predictable rate. Are there analogous capability-doubling laws that apply in services? Suppose that traces of human activity in particular service systems double at some rate, and that these human activity data lead to specific opportunities for improved or increased service productivity or quality. Consider Amazon.com: The quality of recommendations depends on accurate statistics the more purchases made, the better the statistics for recommendations. Three improvement laws that might be applicable in services: The more an activity is performed (time period doubling, demand doubling), the more opportunities to improve The better an activity can be measured (sensor deployment doubling, sensor precision doubling, relevant measurement variables doubling) and modeled, the more opportunities to improve. The more activities that depend on a common sub-step or process (doubling potential demand points), the more likely investment can be raised to improve the sub-step.

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 47 2011 Priorities PRIORITY AREA Research Readiness Recruiting Revenue RegionsResponsibility 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) 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) 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) 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.) 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

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 48 Vision for the Educational Continuum: Individuals & Institutions Learning 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 The Educational Continuum Institutions Learning Continuum Economic Sustainability http://www-935.ibm.com/services/us/gbs/bus/html/education-for-a-smarter-planet.html

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 49 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 Complex Buildings: Modern Cities Example: Singapore

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 50 Understanding the Human-Made World See Paul Romers 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

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 51 World Population & Service System Scaling

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 52 What is Service? Spohrer, J. & Maglio, P. P. (2010). Toward a science of service systems: Value and symbols. In P. P. Maglio, C. A. Kieliszewski & J. C. Spohrer (Eds.), Handbook of Service Science. New York: Springer.

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 53 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 prefer sustainable non-zero-sum outcomes, i.e., win-win win-win lose-lose win-lose lose-win 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), 199201.

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 54 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.. Physical Not-Physical RightsNo-Rights 2. Technology/ Environment Infrastructure 4. Shared Information/ Symbolic Knowledge 1.People/ Individuals 3. Organizations/ Institutions 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)

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 55 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.. 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) StrategicSustainable 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) RegulatedCompliance (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) Value propositions coordinate & motivate resource access

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 56 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.) 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 PC Competitor Provider Customer Authority value-proposition change-experience dynamic-configurations (substitute) time Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ..

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 57 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 lose-win (coercion) win-win (value-cocreation) lose-lose (co-destruction) win-lose (loss-lead) Win Lose Provider Lose Win Customer ISPAR descriptive model 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)

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 58 Service system entities learn to systematically exploit technology: Technology can perform routine manual, cognitive, transactional work L To be the best, learn from the rest Double monetize, internal win and sell to external Try to operate inside the comfort zone 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.

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 59 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.

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 60 Summary Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ.. Physical Not-Physical RightsNo-Rights 2. Technology/ Infrastructure 4.. Shared Information 1.People/ Individuals 3. Organizations/ Institutions 1. Dynamically configure resources (4 Is) Model of competitor: Does it put us ahead? Will we? StrategicSustainable Innovation 4.Competitor/ Substitutes Model of authority: Is it legal? May we? RegulatedCompliance 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 ReasoningQuestionsPricingMeasure Impacted Stakeholder Perspective 2. Value from stakeholder perspectives S A PC 3. Reconfigure access rights 4. Ten types of outcomes (ISPAR) 5. Exploit information & technology 6. Physical-Symbol Systems

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 61 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 Goldratts 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

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 62 So what is service science? Service is value-cocreation, that is, useful changes that result from communication, planning, or other purposeful interactions between distinct entities. A service system is a collection of entities and interactions that cocreate value, that is, a set of distinct configurations of resources (including people, organizations, shared information, and technology) that are better off working together than working alone. Service Science aims to create a body of knowledge that describes, explains, predicts, and improves value- cocreation between entities as they interact, that is, relying on methods and standards used by a community to account for observable phenomenon with conceptual frameworks, theories, models, and laws that can be empirically tested. So the object of study value-cocreation, the basic abstraction is the service system, and the ultimate goal is develop methods and theories that can be used to explain and improve value-cocreation in service systems.

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 63 Service Systems Thinking: ABCs 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. 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

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 64 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.)

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 65 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 FJ

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 66 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.

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 67 What about advanced manufacturing? http://www.youtube.com/watch?v=nd5WGLWNllA

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 68 Rethinking Product-Service Systems F B Service System Entity Product-Service-System B F SSE B F B F B F B F B F B F B F B F B F 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 wrongThe industrial world has changed faster than our taxonomies..

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 69 Example Service Systems Innovation Framework The Ten Types of Innovation by Larry Keeley, Doblin Inc. Innovate (inside and outside) systems that create value

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 70 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

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 71 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 )

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 72 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 RightsNo-Rights 2. Technology/ Environmental Infrastructure 4. Shared Information 1. People/ Individuals 3. Organizations/ Institutions 1. Dynamically configure resources (4 Is)

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 73 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) 1.Hunter-Gatherer Knowledge-Value Economy 1 - 2K population (20 people/sq mile * 100 sq miles) 2.Transition Hunter-Gatherer Knowledge-Value Economy 2 - 4K population (40 people/sq mile * 100 sq miles) 3.Agricultural Knowledge-Value Economy 1 - 8K population (80 people/sq mile * 100 sq miles) 4.Transition Agricultural Knowledge-Value Economy 2 - 16K population (160 people/sq mile * 100 sq miles) 5.Manufacturing Knowledge-Value Economy 1 - 32K population (320 people/sq mile * 100 sq miles) 6.Transition Manufacturing Knowledge-Value Economy 2 - 64K population (640 people/sq mile * 100 sq miles) 7.Service-Information Knowledge-Value Economy 1 - 128K population (1,280 people/sq mile * 100 sq miles) 8.Transition Service-Information Knowledge-Value Economy 2 - 256K population (2,560 people/sq mile * 100 sq miles) 9.Sustainable-Innovation Knowledge-Value Economy 1 - 512K population (5,120 people/sq mile * 100 sq miles) 10.Transition Sustainable-Innovation Knowledge-Value Economy 2 - 1024K population (10,240 people/sq mile * 100 sq miles) 11.And beyond! 10 miles In Use Recycle Rule: Toggles Each Generation

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 74 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 Toggle each generation 20 year cycle

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 75 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

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 76 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

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 77 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

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 78 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.

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 79 University: The Heart of Regional Innovation Ecosystems $ 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 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

2010 IBM Corporation University Relations Smarter Planet Initiative 80IBM Confidential Skills Demand in the Decade of Smart Smarter planet Strategic Context Introduction Smarter planetAcademic InitiativeSmarter planet Dynamic Infrastructure Dynamic Infrastructure Green & Beyond New Intelligence Smart Work Primary ThemesTalent EcosystemIndustry Solutions Architecture SolutionsRequired SkillsGoal SOA BPM Large Systems Software Development SSME Social Software Security Information on Demand Analytics

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 81 Job Roles: University Research and Education 1.Model Systems 2.Connect/capture Data 3.Integrate, Analyze 4.Improve, Automate 5.Optimize, Evolve Water Supply Transportation Energy, Electric Grid Cities, Buildings Healthcare Education/Government General Methods & Techniques Specific Technology Run Transform Innovate SP Service Systems 1.Synapsense, SensorTronics 2.Infosphere Streams, ILOG, COGNOS 3.WS, Tivoli, Rational, DB2, etc. 4.BAO, Green Sigma Specialists Consultant Project Manager SalesArchitect Cross Industry Skills Industry Specific Skills Job Roles Systems Engineering/ Analytics/BAO/SSME University Research fuels

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 82 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% ~5% ~45% 6. Enterprise Operations Administrative Services, Other, Marketing & Communications Finance, Supply Chain, Manufacturing, Human Resources, Legal, General Executive Management ~25% IBM Employees 1.~10% Consultant 2.~10% Sales 3.~5% Architect 4.~5% Project Manager 5.~45% Specialists 6.~25% Enterprise Operations Project Mix From 90-10 to 80-20: B2B Business to Business B2G Business to Government

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 83 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

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 84 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

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 85 Students for a Smarter Planet YouTube - animated!! http://www.youtube.com/watch?v=P7bEyPrtF HMhttp://www.youtube.com/watch?v=P7bEyPrtF HM and another http://www.youtube.com/watch?v=WklJujtIip4http://www.youtube.com/watch?v=WklJujtIip4 Tweet comments to @wendywolfie Continuously Improving Product-Service Systems = Smarter Systems Simplify the message Provide advanced organizers

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 86 Proposed Guidelines Please send feedback to Wendy Murphy [email protected] Help us devise better ways to visualize scope of service science For use with: Students Faculty Practitioners Policy-makers Scientists & Engineers Government officials

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 87 Corning: A Day Made of Glass (Our Homes) http://www.youtube.com/watch?v=6Cf7IL_eZ38

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 88 Complex Buildings: Luxury Hotels http://www.youtube.com/watch?v=Hm7MeZlS5fo

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 89 Infrastructure: Smarter Buildings Examples SMART IS Solving building systems shortcomings with the most appropriate, effective & energy efficient approaches. Tulane University: Connecting to existing building systems to collect metered data; incorporating advanced analytics to uncover sub optimal conditions; bringing disparate data together to drive better decision making and measurably reduce overall energy costs.. IBM Rochester, MN: Incremental energy savings of approximately 5% yearly through various improvements and programs; after the installation of IBM Intelligent Building Management, the team achieved an incremental 8% savings. SMART IS Integration of energy and asset management to lower operating cost. SMART IS Optimizing energy consumption lowers operating costs and reduces carbon emissions. Bryant University: An IT initiative to create an energy-efficient data center shifted to a partnership between IT & Facilities to construct smarter buildings. A 15% reduction in energy use and 50% reduction in floor space in the data center are helping to reduce Bryants carbon footprint..

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 90 Thought Experiment: People Youth (20%) Elderly (20%) Prisoners (5%) Disabled (5%) Retired (5%) Unemployed (5%) Workers (40%) Public (5%) Private (35%) For-Profit (25%) Publicly Traded (10%) Privately Held (15%) Not-For-Profit (10%) Paid (5%) Endowed (1%) Donations & Grants (3%) At-Home-Workers (1%) Unpaid (5%) At-Home-Workers (5%)

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 91 IBM Innovation Centers A proven gateway into SmartCamps TECHNICAL ENABLEMENT Support for building, porting, and testing applications Industry Framework Validations SKILLS DEVELOPMENT Education on key IBM capabilities Access to IBM hardware COLLABORATION Entrepreneur / Venture Firm networking events Connect to Win events Academia / Partner networking events GO TO MARKET Support for expanding to new countries Partner demand generation seminars Mexico Slovenia

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 92 University-Based Entrepreneurial Ecosystems (U-BEEs) Do you know that (from NCET2): More than three quarters of post-1995 increase in productivity growth could be traced to science investments [D. W. Jorgenson, M. S. Ho, K. J. Stiroh, J. Econ. Perspect. 22, 3 (2008)] 1/3 of SBIRs reported involvement with a university including founder was a former academic, faculty were consultants, universities were subcontractors, or graduate students were employed 20 year returns for Early/Seed VCs was 20.6%, compared to 13.8% for Later Stage VCs and 8.2% for the S&P 500 8 percent of all university startups go public, in comparison to a "going public rate" of only 0.07 percent for other U.S. enterprises - a 114x difference over 400 university startups are created nationally each year based on federally funded R&D, which included Google, Netscape, Genentech, Lycos, Sun Microsystems, Silicon Graphics, and Cisco Systems Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were 5 years old or less 68% of university startups created between 1980 to 2000 remained in business in 2001, while regular startups experienced a 90% failure rate during that same time period

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 93 Good ideas evolving to higher value Revenue

2011IBM CorporationIBM University Programs World Wide (IBM UP) 94 A New Paradigm: Collaborative Innovation China Watson Almaden Austin Tokyo Haifa Zurich India IBM Research Lab Global, Smarter Planet Collaborations Pangoo Brazil

2011IBM CorporationIBM University Programs World Wide (IBM UP) 95 Connecting Universities and IBM Global Research Labs Smarter Planet Solutions &Platforms Sci Net Consortium Mega Scale Centers of Competency HSCCI Innovation Showcase Centers On Campus Collaborations Services Research Institute Collaboratory for Services Science Grand Challenge Centers

2011IBM CorporationIBM University Programs World Wide (IBM UP) 96 Global University Programs in Action Sci Net Consortium at University of Toronto IBM & University of Melbourne Collaboratory for Life Sciences Research King Abdullah University of Science & Technology (KAUST) IBM & Rice University to Tackle Smarter Healthcare Challenges with HPC POWER7

2011IBM CorporationIBM University Programs World Wide (IBM UP) 97 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: Universities Research RecruitingSkills People Individuals & Disciplines Government IndustryAcademia Planet Institutions & Systems TalentInfrastructure

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 98 Big Picture in Words: Regional 4 Is Upward Spirals Academia, industry, and government, while different types of societal institutions, are nevertheless similar in that they provide career paths for individuals; in general higher skill, greater responsibility, and more productive-prior experiences and outcomes correlate with higher pay, one aspect of modern quality-of-life. These individuals live somewhere and experience quality-of-life both where they live and where they visit; furthermore, their decisions about where to live, where to visit, which career paths and other options to pursue are shaped by culturally shared information about regional quality-of-life variations - some regions historically provide more and better opportunities than others. Finally, stepping back for a moment, and taking a broad view of history, one can see academia, industry, and government interacting to build and rebuild more and more technologically advanced infrastructure, from buildings to transportation and utility systems; infrastructure which provides access to natural and human- made resources that support quality-of-life in regions - vast majority of regions today have increasing population densities that put stress on older systems. How well do we understand regional 4 Is upward spirals across generations? IBMs Smarter Planet research aims to understand infrastructure building and rebuilding, by institutions designing and redesigning career paths, for individuals working and reworking lifes options, based on shared information about regional quality-of-life and what is best for them, their families, and their communities.

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 99 Our History: Over 60 Years of Collaborations 1945: IBM Research born in cooperation w/ Columbia University 1951: PhD Fellowship Program launched 1997: First ACM Intl Collegiate Programming Contest (ACM ICPC) held 2002: Virtual Computing Lab Initiative ( VCL ) created at NC State 1990: First Center For Advanced Studies ( CAS ) opens in Toronto CA 2003: IBM and leading universities pioneer the discipline of Services Science, Management & Engineering ( SSME ) 2008: Award programs innovated with introduction of Named Awards for outstanding achievers 2007: IBM, RPI and State of NY form CCNI ; A $100M public- private partnership 2009: IBM Cloud Academy launched as a forum for Higher Educ to create & share cloud based technologies 1945 2011 1983: Faculty Award Program launched 1980 1993: Shared Univ Research ( SUR ) Program launched 2004: Launch of the Academic Initiative ( AI ) providing free IBM SW to the academic community 2006: Open Collaborative Research ( OCR ) award program launched

2011IBM CorporationIBM University Programs World Wide (IBM UP) 100 What We Do: The 6 Rs (not to be confused with 3 Rs) 1. Research Research awards focus on grand challenge problems and big bets https://www.ibm.com/developerworks/university/research 2. Readiness Access to IBM tools, methods, and course materials to develop skills https://www.ibm.com/developerworks/university/academicinitiative 3. Recruiting Internships and full-time positions working to build a smarter planet http://www.ibm.com/jobs 4. Revenue Improve performance, the university as a complex enterprise (city within city) http://www.ibm.com/services/us/gbs/bus/html/bcs_education.html 5. Responsibility Community service provides access to IBMers expertise/resources http://www.ibm.com/ibm/ibmgives/ 6. Regions Regional innovation ecosystems incubators, entrepreneurship, jobs http://www.ibm.com/ibm/governmentalprograms/innovissue.html

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 101

2011 IBM CorporationIBM UPward (University Programs worldwide accelerating regional development) 102 Measuring Impact SSME: IBM Icon of Progress & IBM Research Outstanding Accomplishment Internal 10x return: CBM, IDG, SDM Pricing & Costing, BIW COBRA, SIMPLE, IoFT, Fringe, VCR Key was tools to model customers & IBM better Also tools to shift routine physical, mental, interactional & identify synergistic new ventures Alignment with Smarter Planet & Analytics (instrumented, interconnected, intelligent) Alignment with Smarter Cities, Smarter Campus, Smarter Buildings (Holistic Service Systems) External: More than $1B in national investments in Service Innovation activities External: Increase conferences, journals, and publications External: Service Science SIGs in Professional Associations External: Course & Program Guidelines for T-shaped Professionals, 500+ institutions External: National Service Science Institutions, Books & Case Studies (Open Services Innovation) Service Research, a Portfolio Approach 1. Improve existing offerings (value propositions that can move the needle on KPIs) 2. Create new offerings (for old and new customers) 3. Improve outcomes insourcing, outsourcing, acquisitions, divestitures (interconnect-fission-fusion) 4. For all three of the above, improve customer/partner capabilities (ratchet each other up) 5. For all four of the above, increase patents and service IP assets (some donated to open forums) 6. For all five of the above, increase publications and body-of-knowledge (professional associations)

2010 IBM CorporationGlobal University Programs 103 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 90s and before) Founding CTO of IBMs Venture Capital Relations group in Silicon Valley Apple Computers (Distinguished Engineer Scientist and Technologist) award (90s) Ph.D. Computer Science/Artificial Intelligence from Yale University (80s) B.S. in Physics from MIT (70s)

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