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Regional Innovation Ecosystems & Service Science
Regional Innovation Ecosystems & Service Science
Outline
Outline
Regional Innovation Ecosystems: NY State Top Employers (Healthy,
Regional Innovation Ecosystems: NY State Top Employers (Healthy,
Service Growth: The World
Service Growth: The World
Factory as a Product-Service System http://www
Factory as a Product-Service System http://www
Rethinking Product-Service Systems
Rethinking Product-Service Systems
Service Growth: IBM
Service Growth: IBM
IBM has 426,000 employees worldwide
IBM has 426,000 employees worldwide
IBM Centennial  100 Years of Innovation
IBM Centennial 100 Years of Innovation
Watson and Jeopardy
Watson and Jeopardy
Service Innovation Growth in service GDP and jobs Service quality &
Service Innovation Growth in service GDP and jobs Service quality &
Priorities: Research Framework for the Science of Service
Priorities: Research Framework for the Science of Service
UK Royal Society Report: Science in Service Innovation http
UK Royal Society Report: Science in Service Innovation http
What is Smarter Planet
What is Smarter Planet
Our planet is a complex, dynamic, highly interconnected $54 Trillion
Our planet is a complex, dynamic, highly interconnected $54 Trillion
Economists estimate, that all systems carry inefficiencies of up to
Economists estimate, that all systems carry inefficiencies of up to
Well Being Index
Well Being Index
What improves Quality-of-Life
What improves Quality-of-Life
Regional Innovation Ecosystems & Holistic Service Systems http://www
Regional Innovation Ecosystems & Holistic Service Systems http://www
Cities as Holistic Service Systems: All the systems
Cities as Holistic Service Systems: All the systems
Universities as Holistic Service Systems: All the systems
Universities as Holistic Service Systems: All the systems
Luxury Hotels as Holistic Service Systems: All the systems
Luxury Hotels as Holistic Service Systems: All the systems
University & Regional Innovation Ecosystems (Why
University & Regional Innovation Ecosystems (Why
Universities & Regional Innovation Ecosystems (Data) % GDP and %
Universities & Regional Innovation Ecosystems (Data) % GDP and %
Accelerating Regional Innovation: Universities as Living Labs for
Accelerating Regional Innovation: Universities as Living Labs for
Edu-Impact
Edu-Impact
Growing Importance of HPC to Universities
Growing Importance of HPC to Universities
Urban-Age
Urban-Age
Population growth per hour in major cities
Population growth per hour in major cities
Example: San Jose, California (USA)
Example: San Jose, California (USA)
University Trend: Sister Campuses (People Flows)
University Trend: Sister Campuses (People Flows)
City Trend: Sister Cities (People Flows)
City Trend: Sister Cities (People Flows)
What is a Service System
What is a Service System
How to visualize service science
How to visualize service science
What is the skills goal
What is the skills goal
Jobs: Expert Thinking & Complex Communications
Jobs: Expert Thinking & Complex Communications
Job Roles: IBM Building Smarter Enterprises & A Smarter Planet https
Job Roles: IBM Building Smarter Enterprises & A Smarter Planet https
Teaching SSME+D
Teaching SSME+D
World Population & Product-Service System Scaling
World Population & Product-Service System Scaling
Product-Service Systems as Learning Systems
Product-Service Systems as Learning Systems
How entities (service systems) learn and change over time History and
How entities (service systems) learn and change over time History and
Smarter = Sustainable Innovation (reduce waste, expand capabilities)
Smarter = Sustainable Innovation (reduce waste, expand capabilities)
What happens when you take some of the nicotine out of cigarettes
What happens when you take some of the nicotine out of cigarettes
How do you create more lasting solutions
How do you create more lasting solutions
Corning: A Day Made of Glass http://www
Corning: A Day Made of Glass http://www
ECOLOGY
ECOLOGY
Thank-You
Thank-You
Service System Ecology: Conceptual Framework
Service System Ecology: Conceptual Framework
Service-dominant logic
Service-dominant logic
What is value
What is value
What is a service system
What is a service system
Resources are the building blocks of service systems
Resources are the building blocks of service systems
Value propositions are the building blocks of service system networks
Value propositions are the building blocks of service system networks
Access rights are the building blocks of service system ecology
Access rights are the building blocks of service system ecology
Premises of service science: What service systems do
Premises of service science: What service systems do
Understanding the Human-Made World
Understanding the Human-Made World
Why 13 types of service systems
Why 13 types of service systems
Where are the opportunities
Where are the opportunities
Vision for the Educational Continuum: Individuals & Institutions
Vision for the Educational Continuum: Individuals & Institutions
Fun: CityOne Game to Learn CityInvesting
Fun: CityOne Game to Learn CityInvesting
Priority 1: Urban Sustainability & Service Innovation Centers
Priority 1: Urban Sustainability & Service Innovation Centers

: 2011. : jim. : 2011.ppt. zip-: 7509 .

2011

2011.ppt
1 Regional Innovation Ecosystems & Service Science

Regional Innovation Ecosystems & Service Science

Working Together to Build a Smarter Planet

Dr. James (Jim) C. Spohrer spohrer@us.ibm.com Innovation Champion and Director, IBM University Programs WW RIT Service Innovation Event, Rochester, NY, USA, April 14th, 2011

2 Outline

Outline

Stimulus: Service Growth The World (Rethinking Product-Service Systems) IBM (Overview, Centennial, Watson, Smarter Planet) Response: Service Science Priorities Cambridge University Report (2007, 2008, 2011) UK Royal Society Report (2009) Arizona State University Report (2010) Handbook of Service Science (2011) Open Services Innovation (2011) Evolution: Regional Innovation Ecosystems What is a Smarter Planet? Quality of Life Improvement? Quality of Life: Our growing dependence on networks of interconnected service systems Local optimization does not equal global optimization Local problems can cascade into global significance Global competition for talent (vote with feet) How are Cities & Universities Linked? What Jobs & Skills? How to visualize Service Science? Systems & Knowledge? What is a Holistic Service System (HSS)? Value-CoCreation (VCC)? Where is the Real Science? VCC Architectures & HSS

2

3 Regional Innovation Ecosystems: NY State Top Employers (Healthy,

Regional Innovation Ecosystems: NY State Top Employers (Healthy,

Frugal, Wealthy, Innovative, Wealthy, Wise)

3

4 Service Growth: The World

Service Growth: The World

Worlds Large Labor Forces A = Agriculture, G = Goods, S = Service

US shift to service jobs

2010

(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.

CIA Handbook, International Labor Organization Note: Pakistan, Vietnam, and Mexico now larger LF than Germany

4

2010

Nation

Labor % WW

A %

G %

S %

40yr Service Growth

China

25.7

49

22

29

142%

India

14.4

60

17

23

35%

U.S.

5.1

1

23

76

23%

Indonesia

3.5

45

16

39

34%

Brazil

3.0

20

14

66

61%

Russia

2.4

10

21

69

64%

Japan

2.2

5

28

67

45%

Nigeria

1.6

70

10

20

19%

Bangladesh

2.1

63

11

26

37%

Germany

1.4

3

33

64

42%

5 Factory as a Product-Service System http://www

Factory as a Product-Service System http://www

youtube.com/watch?v=nd5WGLWNllA

5

6 Rethinking Product-Service Systems

Rethinking Product-Service Systems

6

7 Service Growth: IBM

Service Growth: IBM

Revenue Growth by Segment

What do IBM Service Professionals Do? Run things on behalf of customers, help Transform customers to adopt best practices, and Innovate with customers.

B2B Service Projects: IT (data center, call centers) & business process outsourcing/reengineering, systems integration, organizational change, etc.

7

8 IBM has 426,000 employees worldwide

IBM has 426,000 employees worldwide

2010 Financials Revenue - $ 99.9B Net Income - $ 14.8B EPS - $ 11.52 Net Cash - $11.7B

21% of IBMs revenue in growth market countries; growing at 13% in late 2010

More than 40% of IBMs workforce conducts business away from an office

IBM operates in 170 countries around the globe

Number 1 in patent generation for 18 consecutive years ; 5,896 US patents awarded in 2010

Smarter Planet

5 Nobel Laureates

9 time winner of the Presidents National Medal of Technology & Innovation - latest award for Blue Gene Supercomputer

8

9 IBM Centennial  100 Years of Innovation

IBM Centennial 100 Years of Innovation

IBM Centennial Film: 100 People & 100 Years http://www.youtube.com/watch?v=39jtNUGgmd4

9

10 Watson and Jeopardy

Watson and Jeopardy

10

11 Service Innovation Growth in service GDP and jobs Service quality &

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

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

Stakeholder Priorities Education Research Business Government

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

Priorities: Succeeding through Service Innovation - A Framework for Progress (http://www.ifm.eng.cam.ac.uk/ssme/) Source: Workshop and Global Survey of Service Research Leaders (IfM & IBM 2008)

1. Emerging demand

5. Call for actions

2. Define the domain

3. Vision and gaps

4. Bridge the gaps

The white paper offers a starting point to -

Develop programmes & qualifications

Skills & Mindset

Encourage an interdisciplinary approach

Knowledge & Tools

Develop and improve service innovation roadmaps, leading to a doubling of investment in service education and research by 2015

Employment & Collaboration

Policies & Investment

Glossary of definitions, history and outlook of service research, global trends, and ongoing debate

12 Priorities: Research Framework for the Science of Service

Priorities: Research Framework for the Science of Service

Source: Global Survey of Service Research Leaders (Ostrom et al 2010)

12

13 UK Royal Society Report: Science in Service Innovation http

UK Royal Society Report: Science in Service Innovation http

//royalsociety.org/Hidden-wealth-The-contribution-of-science-to-service-sector-innovation/

13

14 What is Smarter Planet

What is Smarter Planet

Harmonized smarter product-service systems.

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.

IT NETWORKS

14

15 Our planet is a complex, dynamic, highly interconnected $54 Trillion

Our planet is a complex, dynamic, highly interconnected $54 Trillion

system-of-systems (OECD-based analysis)

Global system-of-systems $54 Trillion (100% of WW 2008 GDP)

Transportation $ 6.95 Tn

Communication $ 3.96 Tn

Education $ 1.36 Tn

Water $ 0.13 Tn

Leisure / Recreation / Clothing $ 7.80 Tn

Electricity $ 2.94 Tn

Healthcare $ 4.27 Tn

Infrastructure $ 12.54 Tn

Govt. & Safety $ 5.21 Tn

Finance $ 4.58 Tn

Food $ 4.89 Tn

Legend for system inputs

1 Tn

15

? Our planet is a complex system-of-systems

This chart shows systems (not industries)

Source: IBV analysis based on OECD

Same Industry Business Support IT Systems Energy Resources Machinery Materials Trade

Note: 1. Size of bubbles represents systems economic values 2. Arrows represent the strength of systems interaction

16 Economists estimate, that all systems carry inefficiencies of up to

Economists estimate, that all systems carry inefficiencies of up to

$15 Tn, of which $4 Tn could be eliminated

$54 Trillion 100% of WW 2008 GDP

$15 Trillion 28% of WW 2008 GDP

$4 Trillion 7% of WW 2008 GDP

Global economic value of

Global economic value of

System-of-systems

Inefficiencies

Improvement potential

How to read the chart: For example, the Healthcare systems 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%).

16

? We now have the capabilities to manage a system-of-systems planet

Source: IBM economists survey 2009; n= 480

17 Well Being Index

Well Being Index

January 10, 2011 By Mark Whitehouse at mark.whitehouse@wsj.com One approach is to enhance GDP with other objective factors such as inequality, leisure and life expectancy. In a paper presented Saturday at the American Economic Association meeting, Stanford economists Peter Klenow and Charles Jones found that doing so can make a big difference. Making everybody work 120 hours a week could radically boost a country's GDP per capita, but it wouldn't make people happier. Removing pollution limits could boost GDP per hour worked, but wouldn't necessarily lead to a world we'd want to live in.

17

18 What improves Quality-of-Life

What improves Quality-of-Life

Product-Service System Innovations

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)

Quality of Life = Quality of Service + Quality of Jobs + Quality of Investment-Opportunities

20/10/10

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

0/19/0

1/2/2

61 Service Design 2010 (Japan) / 75 Service Marketing 2010 (Portugal)/78 Service-Oriented Computing 2010 (US)

* = US Labor % in 2009.

18

19 Regional Innovation Ecosystems & Holistic Service Systems http://www

Regional Innovation Ecosystems & Holistic Service Systems http://www

service-science.info/archives/1056

Examples: Nations, States, Cities, Universities, Luxury Hotels, Cruise Ships, Households 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

Start-Ups

SaaS PaaS IaaS

~25-50% of start-ups are new IT-enabled service offerings

For-profits

Non-profits

A Day Made of Glass: Corning http://www.youtube.com/watch?v=w12B02eJpaM&feature=fvst

19

20 Cities as Holistic Service Systems: All the systems

Cities as Holistic Service Systems: All the systems

Example: Singapore

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

20

21 Universities as Holistic Service Systems: All the systems

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.

21

22 Luxury Hotels as Holistic Service Systems: All the systems

Luxury Hotels as Holistic Service Systems: All the systems

http://www.youtube.com/watch?v=Hm7MeZlS5fo

22

23 University & Regional Innovation Ecosystems (Why

University & Regional Innovation Ecosystems (Why

Incubator & Start-Ups

School of Urban Planning

School of Science & Arts

School of Public Policy

School of Hospitality

School of Business Mngmnt

School of Education

School of Information

School of Architecture

School of Engineering

School of Medicine

University: The Heart of Regional Innovation Ecosystems

23

24 Universities & Regional Innovation Ecosystems (Data) % GDP and %

Universities & Regional Innovation Ecosystems (Data) % GDP and %

Top-500-Universities

Strong Correlation (2009 Data): National GDP and University Rankings

http://www.upload-it.fr/files/1513639149/graph.html

24

25 Accelerating Regional Innovation: Universities as Living Labs for

Accelerating Regional Innovation: Universities as Living Labs for

Host Cities

CITIES/METRO REGIONS: Universities Key to Long-Term Economic Development

UNIVERSITIES: Research Centers & Real-World Systems

25

26 Edu-Impact

Edu-Impact

Com: Growing Importance of Universities with Large, Growing Endowments

When we combined the impact of Harvards 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.

26

27 Growing Importance of HPC to Universities

Growing Importance of HPC to Universities

HPC = High Performance Computing (2006 NSF Data)

With HPC

Without HPC

Average NSF funding: $30,354,000

Average NSF funding: $7,781,000

Journal of Information Technology, Volume 10, Issue 2 (accepted) www.jiti.net

95 of Top NSF-funded Universities with HPC 98 of Top NSF-funded Universities w/out HPC

27

28 Urban-Age

Urban-Age

Net

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

28

29 Population growth per hour in major cities

Population growth per hour in major cities

29

30 Example: San Jose, California (USA)

Example: San Jose, California (USA)

30

31 University Trend: Sister Campuses (People Flows)

University Trend: Sister Campuses (People Flows)

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 Innovation Centers (ICs) Industry/government sponsors Multi-disciplinary teams Research real-world systems

31

32 City Trend: Sister Cities (People Flows)

City Trend: Sister Cities (People Flows)

World as System of Systems World (light blue - largest) Nations (green - large) Regions (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)

32

IBM UP WW: Tandem Awards: Increasing university linkages (knowledge exchange interactions)

33 What is a Service System

What is a Service System

What is Service Science? customers just name <your favorite provider> researchers just name <your favorite discipline>

Systems Engineering

Design/ Cognitive Science

service science is the interdisciplinary study of service systems & value-cocreation

a service system is a human-made system to improve customer-provider interactions, or value-cocreation

Marketing

Computer Science/ Artificial Intelligence

Operations

Economics & Law

33

34 How to visualize service science

How to visualize service science

The Systems-Disciplines Matrix

systems

disciplines

34

35 What is the skills goal

What is the skills goal

T-Shaped professionals, ready for T-eamwork!

SSME+D = Service Science, Management, Engineering + Design

35

36 Jobs: Expert Thinking & Complex Communications

Jobs: Expert Thinking & Complex Communications

Increasing usage of job descriptive terms

Expert Thinking (deep)

Complex Communication (broad)

Routine Manual

Non-routine Manual

Routine Cognitive

Based on U.S. Department of Labor Dictionary of Occupational Titles (DOT)

Levy, F, & Murnane, R. J. (2004). The New Division of Labor: How Computers Are Creating the Next Job Market. Princeton University Press.

36

37 Job Roles: IBM Building Smarter Enterprises & A Smarter Planet https

Job Roles: IBM Building Smarter Enterprises & A Smarter Planet https

//jobs3.netmedia1.com/cp/find.ibm.jobs/location/

IBM Employees ~10% Consultant ~10% Sales ~5% Architect ~5% Project Manager ~45% Specialists ~25% Enterprise Operations

~10%

1. Consultant (trusted advisor to customer) a value proposition to address problems or opportunities and enhance value co-creation relationships

~5%

~10%

3. Architect (systems engineer, IT & enterprise architect) An elegant solution design that satisfies functional and non-functional constraints across the system life-cycle

2. Sales a signed contract that defines work, outcomes, solution, rewards and risks for all parties

~5%

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

~45%

~25%

5. Specialists (systems engineer, Research, engineer, Industry specialist, application, technician, data, analyst, professional, agent) a compelling working system (leading-edge prototype systems from Research)

6. Enterprise Operations Administrative Services, Other, Marketing & Communications Finance, Supply Chain, Manufacturing, Human Resources, Legal, General Executive Management

Project Mix From 90-10 to 80-20: B2B Business to Business B2G Business to Government

37

38 Teaching SSME+D

Teaching SSME+D

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

Reaching the Goal: How Managers Improve a Services Business Using Goldratts Theory of Constraints By John Ricketts, IBM

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

38

39 World Population & Product-Service System Scaling

World Population & Product-Service System Scaling

39

40 Product-Service Systems as Learning Systems

Product-Service Systems as Learning Systems

L

Linda Sanford, IBM Let Go To Grow

40

41 How entities (service systems) learn and change over time History and

How entities (service systems) learn and change over time History and

future of Run-Transform-Innovate investment choices

Diverse Types Persons (Individuals) Families Regional Entities Universities Hospitals Cities States/Provinces Nations Other Enterprises Businesses Non-profits Learning & Change Run = use existing knowledge or standard practices (use) Transform = adopt a new best practice (copy) Innovate = create a new best practice (invent)

exploit

explore

41

March, J.G. (1991) Exploration and exploitation in organizational learning. Organizational Science. 2(1).71-87.

42 Smarter = Sustainable Innovation (reduce waste, expand capabilities)

Smarter = Sustainable Innovation (reduce waste, expand capabilities)

42

43 What happens when you take some of the nicotine out of cigarettes

What happens when you take some of the nicotine out of cigarettes

43

44 How do you create more lasting solutions

How do you create more lasting solutions

44

45 Corning: A Day Made of Glass http://www

Corning: A Day Made of Glass http://www

youtube.com/watch?v=6Cf7IL_eZ38

45

46 ECOLOGY

ECOLOGY

Time

14B Big Bang (Natural World)

10K Cities (Human-Made World)

Where is the Real Science? In the interdisciplinary sciences that study the natural and human-made worlds Unraveling the mystery of evolving hierarchical-complexity in new populations To discover the worlds structures and mechanisms for computing non-zero-sum Value-CoCreation (VCC) Architectures & Holistic Service Systems (HSS)

46

writing (symbols and scribes)

written laws

money (coins)

universities

Sun

Earth

bacteria (uni-cell life)

sponges (multi-cell life)

clams (neurons)

printing press (books)

trilobites (brains)

steam engine

47 Thank-You

Thank-You

Questions?

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

Dr. James (Jim) C. Spohrer Director, IBM University Programs (IBM UP) WW spohrer@us.ibm.com

47

48 Service System Ecology: Conceptual Framework

Service System Ecology: Conceptual Framework

Resources: People, Technology, Information, Organizations Stakeholders: Customers, Providers, Authorities, Competitors Measures: Quality, Productivity, Compliance, Sustainable Innovation Access Rights: Own, Lease, Shared, Privileged

48

49 Service-dominant logic

Service-dominant logic

Service is the application of competences for the benefit of another entity Service is exchanged for service Value is always co-created Goods are appliances for delivery All economies are service economies All businesses are service businesses

Vargo, S. L. & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68, 1 17.

49

50 What is value

What is value

Value depends on the capabilities a system has to survive and create beneficial change in its environment. Taking advantage of the service another system offers means incorporating improved capabilities. Value can be defined as system improvement in an environment. All ways that systems work together to improve or enhance one anothers capabilities can be seen as being value creating.

Vargo, S. L., Maglio, P. P., and Akaka, M. A. (2008). On value and value co-creation: A service systems and service logic perspective. European Management Journal, 26(3), 145-152.

50

51 What is a service system

What is a service system

Service involves at least two entities applying competences and making use of individual and shared resources for mutual benefit. We call such interacting entities service systems.

Spohrer, J., Maglio, P. P., Bailey, J. & Gruhl, D. (2007). Steps toward a science of service systems. Computer, 40, 71-77.

51

52 Resources are the building blocks of service systems

Resources are the building blocks of service systems

First foundational premise of service science Service system entities dynamically configure four types of resources The named resource is Physical or Not-Physical (physicists resolve disputes) The named resource has Rights or No-Rights (judges resolve disputes within their jurisdictions)

Formal service systems can contract Informal service systems can promise/commit Trends & Countertrends (Evolve and Balance): Informal <> Formal Social <> Economic Political <> Legal Routine Cognitive Labor <> Computation Routine Physical Labor <> Technology Transportation (Atoms) <> Communication (Bits) Qualitative (Tacit) <> Quantitative (Explicit)

Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ..

52

53 Value propositions are the building blocks of service system networks

Value propositions are the building blocks of service system networks

Second foundational premise of service science Service system entities calculate value from multiple stakeholder perspectives 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

Value propositions coordinate & motivate resource access

Stakeholder Perspective (the players)

Measure Impacted

Pricing Decision

Basic Questions

Value Proposition Reasoning

1.Customer

2.Provider

3.Authority

4.Competitor (Substitute)

Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ..

53

Should we? (offer it)

Can we? (deliver it)

May we? (offer and deliver it)

Will we? (invest to make it so)

Quality (Revenue)

Value Based

Model of customer: Do customers want it? Is there a market? How large? Growth rate?

Productivity (Profit)

Cost Plus

Model of self: Does it play to our strengths? Can we deliver it profitably to customers? Can we continue to improve?

Compliance (Taxes and Fines)

Regulated

Model of authority: Is it legal? Does it compromise our integrity in any way? Does it create a moral hazard?

Sustainable Innovation (Market share)

Strategic

Model of competitor: Does it put us ahead? Can we stay ahead? Does it differentiate us from the competition?

54 Access rights are the building blocks of service system ecology

Access rights are the building blocks of service system ecology

(culture and shared information)

Third foundational premise of service science Service system entities reconfigure access rights to resources by mutually agreed to value propositions

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..

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55 Premises of service science: What service systems do

Premises of service science: What service systems do

Service system entities dynamically configure (transform) four types of resources Service system entities calculate value from multiple stakeholder perspectives Service system entities reconfigure access rights to resources by mutually agreed to value propositions

Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ..

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Stakeholder Perspective

Measure Impacted

Pricing

Questions

Reasoning

1.Customer

2.Provider

3.Authority

4.Competitor

Should we?

Can we?

May we?

Will we?

Quality

Value Based

Model of customer: Do customers want it?

Productivity

Cost Plus

Model of self: Does it play to our strengths?

Compliance

Regulated

Model of authority: Is it legal?

Sustainable Innovation

Strategic

Model of competitor: Does it put us ahead?

56 Understanding the Human-Made World

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

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57 Why 13 types of service systems

Why 13 types of service systems

K-12 STEM and the human-made world

Imagine a better service system, and use STEM language to explain why it is better 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 (Bio) 9 - Education & Work Life/Jobs & Entrepreneurship (Cogno) 10 City (Government) 11 State/Region (Government) 12 Nation (Government) Higher Ed T-shaped teamwork, deep & broad education Professional Life T-shaped teamwork, series of projects

Systems that focus on Flow of things

Systems that focus on Human Activities and Development

Systems that focus on Governing

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58 Where are the opportunities

Where are the opportunities

Everywhere!

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59 Vision for the Educational Continuum: Individuals & Institutions

Vision for the Educational Continuum: Individuals & Institutions

Learning

http://www-935.ibm.com/services/us/gbs/bus/html/education-for-a-smarter-planet.html

The Educational Continuum

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60 Fun: CityOne Game to Learn CityInvesting

Fun: CityOne Game to Learn CityInvesting

http://www.ibm.com/cityone

Serious Game to teach problem solving for real issues in key industries, helping companies to learn how to work smarter. Energy, Water, Banking, Retail

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61 Priority 1: Urban Sustainability & Service Innovation Centers

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

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2011
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