In this Issue

• December 2017Newsletter

• Thank you from theTeam!

• VIDEO Summary ofService Week 2017

• Summary andMaterial from ServiceWeek 2017! - Bridgingto new servicetechnology

•

• Full Podcast fromIndustry Day with allspeakers

• Poster Session from#SW2017

• Service Week -AcademicConference

• Government LaunchCentre for DigitalBuilt Britain

• 2 day executiveprogramme - Makingthe shift to services

• Webinar - Bridgingthe Co-Creation Gap

• Outcome-OrientedContracts

• Webinar - IncidentReport in ServitizedManufacturers

• Thought LeadershipConference at theUniversity ofQueensland

• London Standardarticle on ServiceWeek 2017

• Digital BusinessTransformation andStrategy

December 2017 Newsletter

Welcome to the December 2017 edition of the Cambridge ServiceAlliance newsletter. In this edition we are delighted to share with youthe outputs from what was an amazing Industry Day conferenceduring Cambridge Service Week. We hope you enjoy the wealth ofmaterial available, as well as the other information and resources fromthe ongoing work of the Cambridge Service Alliance. Please forwardthis to any colleagues who may be interested using the link above. Ifyou would like to hear more about the Alliance or find out how you canget involved please contact us.

Andy Neely, Director, Cambridge Service Alliance

Thank you from the Team!

All of us at the Cambridge Service Alliance would like to thankeveryone who helped to make Cambridge Service Week a success.From the Academic Conference, to Industry Day and to Partners Day,we were delighted with the level of interaction, learning and sharing ofinsights into how organisations can successfully grow their servicebusinesses in an age of digital disruption. Below are some of the

• Welcome to our newPhD student - ThaylaZomer

• Theme update - DataAnalytics for Services

• Webinar - BusinessModel Evolution

• Big Data AnalyticsArchitecture forBusinesses

• EPSRC ResearchGrant - OMMS

• Theme Update -Making andSustaining the Shiftto Services

• EU SME Research

• 2nd Digital TwinsWorkshop -Identifying BestPractices and FutureService BusinessModels

• Alliance at TheManufacturerLeaders Conference

• Ecosystems StrategyExecutiveProgramme

OUTPUTS/PRESENTATIONSAND EVENTS

Events

Cambridge ServiceWeek 2017

Shift to Services 2-dayprogramme 10-11 May 2018

Ecosystems 1-dayprogramme 22 November 2017

outputs from the events, which we hope you can enjoy and share withyou colleagues.

VIDEO Summary of Service Week 2017

Summary and Material from Service Week 2017!- Bridging to new service technology

This year's industry day conferencefocused on 'Bridging to “new” servicetechnology', where we heard fromEmirates Airline, Alibaba, IBM andThales as well as the Alliance'sresearch. [more]

Key Output from #SW2017:

Christoph Mueller, from TheEmirates Group, spoke about the

Sean Perry-Evans, from Thales,spoke about the Thales’ digital

Community Of Interest 28-29 November 2017

Webinars

12 December 2017 -Using outcome-orientedcontracts to fosterperformanceimprovements inlogistics outsourcingrelationships - TorstenSteinbach and FlorianUrmetzer

13 November 2017 - ASystems Perspective onBusiness ModelEvolution: The Case ofan AgriculturalInformation ServiceProvider in India -Chander Velu

2 October 2017 -Barriers and Facilitatorsto Incident Reporting inServitizedManufacturers - CharaMakri

11 September 2017 -Bridging the Co-creation Gap betweenCo-creators,Companies and LivingLab - Katharina Greve

Presentations andPapers

Papers

'Digital BusinessTransformation andStrategy: What do weknow so far?' by MariamH. Ismail, MohamedKhater, Mohamed Zaki

'Big Data AnalyticsArchitecture forBusinesses', by MertOnuralp Gökalp, KeremKayabay, Mohamed Zaki,Altan Koçyiğit, P. ErhanEren, and Andy Neely

Using Outcome-Oriented Contracts toFoster PerformanceImprovements inLogistics OutsourcingRelationships', by

vision of Emirates Airline, whichaims to re-invent its processesusing digital technology toenable a delightful travelexperience. They are examiningnew technologies such asArtificial Intelligence and Real-time Analytics and ideas toidentify the opportunities theyrepresent for both incrementalimprovement and disruptivechange in their business model.

Extract from Podcast: "There’sa long list of applications comingfrom the new technologies, andthere are a lot of opportunitiescoming from new customerbehaviours".

[podcast] [transcript]

transformation vision, which theybelieve will transform the marketsthey serve (aerospace, transport,defence and security) andimprove the digital future for theircustomers, by solving thechallenges they face. Sean spokeabout digital transformation andthe newly established digitalfactory in a company guided byproduct policy, and illustratedwith cases from the businessportfolio.

Extract from Podcast: "Werecognise that digitaltransformation is something thatif not grasped by Thales, we willbecome victim of it".

[presentation][podcast] [transcript]

Dr Mohamed Zaki, from theCambridge ServiceAlliance spoke about his recentresearch on how machinelearning can be applied tocustomer experience analytics.This enables organisations todesign and manage uniqueexperiences for its customersand analyse feedback in a timelymanner. The toolkit introducedallows utilization of existingqualitative and quantitative dataand can result into specificactions being taken to increasecustomer satisfaction and reducefriction in doing business.

Extract from Podcast: "you cancapitalise on the data that youhave in your business, theattitudinal data, and thebehavioural data to allow you tounderstand your customerbetter"

Martin Fleming, from IBM,spoke about how using machinelearning, artificial intelligence,and deep learning can not onlysystematically inform decisions,it can enable greater innovationand creativity. Martin explainedhow IBM tackles thesechallenges as its enterprisetransforms for the Cognitive Era.Martin shared its perspective onthe art and science of powerfuldecision-making with data.

Extract from Podcast: "The useof these tools has becomeincreasingly important intransforming enterprises such asIBM to be able to deliverincreased value and capability toour clients and improve our ownperformance."

[presentation][podcast] [transcript]

Torsten Steinbach, CarlMarcus Wallenburg andFlorian Urmetzer

'RedistributedManufacturing and theImpact of Big Data: AConsumer GoodsPerspective', byMohamed Zaki,Theodoulidis Babis ,Philip Shapira, AndyNeely, Matthias Tepel inJournal of ProductionPlanning & Control,Forthcoming (2017)

[presentation] [podcast]  [transcript]

Dr Ye Meng, from Alibabaspoke on China's dynamicsof digital transformationenabled by Alibaba and itsecosystem partners.  He alsogave an analytical frameworkand examples of digitaltransformation from theperspective of new

information infrastructure, new factors of production and new divisionof labour. [material not currently available for distribution].

Full Podcast from Industry Day with allspeakers

In this summary Podcast we include all the keynote speakers from ourService Week Industry Day conference - who discuss theirpresentations from our one-day conference.  A transcript of thispodcast is also available. [compilation podcast]

Poster Session from #SW2017

The Alliance researchers enjoyed the opportunity to present to thedelegates the current research being conducted.

[poster booklet]

Service Week - Academic Conference

During the two day Academic Conference, experts and academicsreported on their recent research developments in the field ofServices, particularly on the Bridge to New Customers Experiences,Service Growth in Product Companies, Smart Service and ServiceAnalytics, Customer Journeys and Service Research at the Base ofthe Pyramid. Our partner, Dav Bisessar from IBM, joined theconference in order to build strong bridge between industry andacademia in this conference. Interesting debates and discussions fromoperations, marketing and strategy converge in support for building abetter world with the support of services. The outputs of thisconference are to be published in the INFORMS Journal of ServiceScience.

Government Launch Centre for Digital BuiltBritain

The Government hasrecently announced that anew Centre for Digital BuiltBritain, under the leadershipof Professor Andy Neely, hasbeen funded at the Universityof Cambridge. The Centre isgoing to work closely with

industry, government and academia to deliver the Government’sDigital Built Britain strategy, which looks at how we can better capture,manage and share information to make decisions that lead to bettersocietal outcomes. The Centre builds on the expertise and experienceof faculty from the Cambridge Centre for Smart Infrastructure andConstruction (CSIC), Cambridge Big Data, the Distributed Informationand Automation Lab (DIAL), the Cambridge Service Alliance (CSA) andthe Institute for Manufacturing to form a Research Bridgehead. TheDigital Built Britain programme has been a key driver in industryuptake of Level 2 Building Information Management (L2 BIM), wheredetailed building models and managed information sharing haveproduced significant cost savings in construction projects. The Centrewill drive forward research in this area, looking at what information isneeded to make assets more productive across their lifecycle,improving productivity at an organisation level; and how this caninform decisions that ultimately improve cities and the builtenvironment for citizens.  To find out more about the Centre and for further informationplease sign up here.

2 day executive programme - Making the shiftto services

The ever popular executive programme on 'Making the Shift toServices', was held in November at the IfM, Cambridge. Delegateswere introduced to the idea of servitization in the manufacturingcontext, looking particularly at the role of technology and big data.

Webinar - Bridging the Co-Creation Gap

In this webinar KatharinaGreve discusses the MayPaper from the Alliance, on'Bridging the Co-creationGap between Co-creators,Companies and Living Lab'. Living labs offer a new openinnovation platform forcompanies to engage in co-creation. This study offers

first insights into the operational activities, design structures and datacollection approaches which are implemented to facilitate the co-creation process in living labs. [more]

Outcome-Oriented Contracts

Outcome-oriented contracts are used foran increasing range of private and publicservices. This paper looks at using theseto foster performance improvements inlogistics outsourcing relationships. In viewof the importance to involve serviceproviders in continuous improvementefforts, this paper helps managers tobetter understand how outcome-orientedcontracts should be designed andmanaged to instigate proactiveimprovement. [paper]

Webinar - Incident Report in ServitizedManufacturers

Chara Makri discusses herJuly paper on 'Barriers andFacilitators to IncidentReporting in ServitizedManufacturers', which looksat how the use of an incidentreporting system can helpcommunicate any lessonslearnt from past failures toeveryone involved. [webinar]

Thought Leadership Conference at theUniversity of Queensland

Dr Mohamed Zaki was one of65 international scholars thatwere invited to participate inthe Thought LeadershipConferenceentitled 'Theorizing beyondthe horizon: Serviceresearch in 2050' which tookplace in the University ofQueensland, Brisbane, Australia from November 3-5, 2017. They setout to discuss eight themes to set service research priorities.Mohamed participated in the Customer Experience Challenges:Bringing Together Digital, Physical and Social Realms theme with RuthBolton, Janet R. McColl-Kennedy, Lily Cheung, Andrew Gallan, ChiaraOrsingher and Lars Witell. Eight journal papers will be the outcome ofthis conference which will be submitted to the Journal of ServiceManagement. [more]

London Standard article on Service Week 2017

Anthony Hilton, of the London Evening Standard,attended our Service Week 2017 Industry Dayevent, and wrote about one of the keynotespeakers, from Alibaba, in a recent article. In hisarticle Anthony Hilton reflects on the impact oftechnology will have on our lives and thedifficulty of predicting its impact. [read]

Digital Business Transformation and Strategy

This paper examines what we know so farabout digital business transformation. Tohelp managers through the formulationand implementation of their firms’ digitaltransformation strategies, this paper addsnovel insights regarding the positioning ofdigital transformation and reveals the keycharacteristics that distinguish it fromprevious technology-enabledtransformations. [paper]

Welcome to our new PhD student - ThaylaZomer

Thayla Zomer is a PhD student under thesupervision of Professor Andy Neely. Hermajor research interests revolve arounddigital transformation in the constructionsector. She is a fellow of the Faculty forthe Future program of SchlumbergerFoundation. [more]

Theme update - Data Analytics for Services

We developed a web-based application and a text miningmethodology for understanding the service consumer’s experience inreal time, in order to use the generated insights to improve and designbetter service delivery. The outcomes of this research are: i) a real-timereview application paired with an analytical text mining model; ii) anevaluation of the use of new text mining techniques (SVM and NaïveBayes) in analysing qualitative data, and suggestions on theirutilization in an industrial context; iii) a comparison between traditionalsurvey vs. real-time for feedback collection and analysis; and iv)visualisation and a dashboard to monitor customer experience in realtime. [mehyz2@cam.ac.uk].

Webinar - Business Model Evolution

In this webinar Chander Velu discusses his paper on 'A SystemsPerspective on Business Model Evolution: The Case of anAgricultural Information Service Provider in India.' The paperidentifies that three capabilities, namely balanced redundancy,requisite variety and cognitive discretion, are needed to enable a firmto achieve congruence between the components of the businessmodel in order to deliver the customer value proposition. [watch]

Big Data Analytics Architecture for Businesses

Organisations suffer from acomprehensive architecture to manageand monitor the development of existingand new open-source big-data tools thatare constantly growing. This paper looksat the shortcomings and strengths ofdeveloping a big-data architecture withopen-source tools from technical andmanagerial perspectives. [paper]

EPSRC Research Grant - OMMS

Dr. Veronica Martinez and othercolleagues from seven other universitieswill soon be kicking off a new researchproject founded by the EPSRC. Thisproject will help our society in the fightagainst cancer. The new OMMS micro-factory could treat people in early cancerstages and mitigate the damage. Veronicawill be focused on the analysis andmodelling of the diverse service businessmodels to implement in practice tomaximize value and benefits for allpartners of the service ecosystem.

Theme Update - Making and Sustaining theShift to Services

This month, the shift to service team has been working on validationof the 'Digital Twins Business Innovation Model' framework developedfrom the research cases and field work. Veronica Martinez, DavBisessar (IBM), Caroline Burstall (Perkins) and Chris Weeks (CAT)hosted the successful 'Second Workshop in Digital Twins'. This tookplace on the 9 November 2017 and participants included BAE, Rolls-Royce, IBM, Caterpillar, Perkins, amongst others. Active discussionsand scope for new ideas dominated the workshop. [VeronicaMartinez]

EU SME Research

Dr Florian Urmetzer is studying the potential of servitisation and otherforms of product-service provision for EU SMEs. The study is aresearch cooperation between the Cambridge Service Alliance (UK),Technopolis (Netherlands) and Dialogic (Belgium), and is funded by theEuropean Commission. The study has reached its half way point andhas had a successful review by the European commission inNovember. The team working on the study includes Marin Jovanovic,Dorothée Schulz-Budick and Glen Chua. The first outcomes will bepublished soon after their use to influence the policy making of theEuropean economic area.

2nd Digital Twins Workshop - Identifying BestPractices and Future Service Business Models

Dr. Veronica Martinez fromthe Cambridge ServiceAlliance organised twosuccessful workshops todebate 'The best practices inimplementing and visualizingDigital Twins as basis for NewService Business ModelInnovation'.  We had a set ofleading presentations, from

Rolls Royce, IBM and the Cambridge University ConstructionEngineering. We discuss how digital twins are utilized in the heavyassets context, the design of digital twins for creating new servicesand the use of visualization technology to inform the fullunderstanding the asset. The atmosphere of this event was energeticwith the presentations and group discussions from participants suchas IBM, Caterpillar, Perkins and BAE amongst others. Watch thisspace because the next Digital Twins Workshop is coming soon. If youwant to read the [Digital Twins Blog].

Alliance at The Manufacturer LeadersConference

Representatives from the Alliance recentlygave four workshop sessions at TheManufacturer Leaders conference, andexhibited alongside the IfM at

the  'Manufacturer Smart FactoryExpo' at the Exhibition Centre Liverpool. 

Ecosystems Strategy Executive Programme

Our new Ecosystems Strategy executive programme will be held inCambridge on 27 February 2018. This programme builds on expertisedeveloped in the Ecosystems, Value Mapping and Analysis ResearchStream, and provides an opportunity for executives to learn first-handsome of the techniques developed by the Alliance. This course willshow you how, through understanding your business' ecosystem andleveraging partnerships, you can deliver services quickly andeffectively. [exec programme]

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