SSMED for IFIP 20080811€¦ · © 2005 IBM Corporation 3 Service Research and Innovation | Service...

Service Research and Innovation | Almaden Research Center © 2007 IBM Corporation 1

Service Research Concepts: 1. resources, 2. service system entities, 3. access rights, 4. value-proposition-based interactions, 5. governance mechanisms, 6. service system networks, 7. service system ecology, 8. stakeholders, 9. measures, 10. outcomes

Jim Spohrer, Director, Service Research, IBM Almaden Research Center August 8th, 2008

Service Science,

Management, Engineering, and Design Emerging

SSMED Emerging

© 2005 IBM Corporation Service Research and Innovation | Service Science Management Engineering and Design © 2008 IBM Corporation 2

  Research  Vivian Ding (CRL)  Kazuyoshi Hidaka (TRL)  Paul Maglio (ARC)  Doug Riecken (WRC)  Liba Svobodova (ZRL)  Segev Wasserkrug (HRL) and many others…

  University Relations  Dianne Fodell  Wendy Murphy  Kevin Wright and many, many others…

  Cross IBM  Paul Kontogiorgis (SWG)  Steve Street (GTS)  Moises Cases(Systems)  Yuriko Sawatani (TRL)  Jakita Thomas (ARC)  Gerhard Satzger (Germany)  Claudio Pinhanez (Brazil) and many others…

  Executive Support  Nicholas Donofrio  Ginni Rometty  John Kelly III  Jai Menon  Robert Morris  Thomas Li  Guru Banavar  Jim Spohrer  David Cohn  Mahmoud Nagyshineh  Greg Golden  Jon Iwata and others…

Thanks to Global IBM SSMED Team

Hundreds of others w

orldwide…

thanks to all!


A Practical Place to Get Started…

  Reaching the Goal: How Managers Improve a Services Business Using Goldratt’s Theory of Constraints

  John Arthur Ricketts, IBM

  “Theory of Constraints (TOC) gets its name from the fact that all enterprises are constrained by something. If they weren’t they could grow as large and as fast as they wanted… So the first step in applying TOC is to figure out precisely where the constraints are… The second step in apply TOC is to utilize the constraint to its fullest extent… The third step in applying TOC is to make sure that non-constraints keep the constraint busy – but otherwise stay out of its way… The fourth step in applying TOC is to improve the productivity of the constraint… The final step in applying TOC is to repeat the previous steps.”


IT in the Service Economy: Challenges and Possibilities for the 21st Century

  1. Diversity of service worlds   Barrett.,Davidson

  4. Compliance-as-a-service   Butler, Emerson, McGovern

  5. Service system innovation   Alter

  8. Service behind the service   Ramiller, Chiasson

  9. Ambulant health service delivery   Andersen, Aanestad

  12. Open source service network   Feller et al

  14. Computerization of service   Sawyer, Yi

  16. Municipalities as service providers   Tapia, Ortiz

  25. Services to/from products   Ramiller et al

  27. Servitization of peer production   Feller et al

  30. Servitization of IBM   Carter, Takeda, Truex

IFIP (The Intern. Fed. for Information Processing) “IT for the benefit of all people”


Outline

 I. Grand Vision  Achievable?

 II. Some Basics  III. Short History  IV. Why Now?  V. Ongoing Debates

service = value-cocreation B2B B2C B2G G2C G2B G2G C2C C2B C2G ***

provider resources Owned Outright Leased/Contract Shared Access

Privileged Access

customer resources Owned Outright Leased/Contract Shared Access

Privileged Access

OO

SA PA

LC OO LC

SA PA

S A P C Competitor Provider Customer Authority

value-proposition change-experience dynamic-configurations

(substitute)

time


I. Grand Vision (Part 1)

  New science   Classify all service systems

  Vision: New science   Service scientist study service systems   Service systems are diverse & complex   Biological systems are diverse & complex   Linnaeus systematically classified biological

systems   IBM systematically classifying service systems   Component business model (CBM)   Industry process models


I. Grand Vision (Part 2)

  New Moore’s law   Information insights to

investment discipline to continuous improvement of service system KPIs as service systems/networks scale via design and guided evolution, thereby generate more information and repeat…

  Vision: New Moore’s law   Service system/networks unlock the value of new

knowledge as they scale   IBV CBM Report: From insight to investment   BIW: From information analytics to insight   IDG: A service system analysis   Call centers as knowledge-intensive service

systems   Service system design lab network   Projects = covers all contracts between entities   Global service system ecology simulator

8

Stakeholder Priorities

Education

Research

Business

Government

Service Systems

Customer-provider interactions that enable value cocreation

Dynamic configurations of resources: people, technologies, organisations and information

Increasing scale, complexity and connectedness of service systems

B2B, B2C, C2C, B2G, G2C, G2G service networks

Service Science

To discover the underlying principles of complex service systems

Systematically create, scale and improve systems

Foundations laid by existing disciplines

Progress in academic studies and practical tools

Gaps in knowledge and skills

Develop programmes & qualifications

Service Innovation

Growth in service GDP and jobs

Service quality & productivity

Environmental friendly & sustainable

Urbanisation & aging population

Globalisation & technology drivers

Opportunities for businesses, governments and individuals

Skills & Mindset Knowledge & Tools Employment & Collaboration Policies & Investment

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

Encourage an interdisciplinary approach

The white paper offers a starting point to -

“Succeeding through Service Innovation” Whitepaper: A Framework for Progress (http://www.ifm.eng.cam.ac.uk/ssme/)

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

1. Emerging demand 2. Define the domain 3. Vision and gaps 4. Bridge the gaps 5. Call for actions

Call to Create National Service Innovation Roadmaps (SIR) Reports


Service scientists understand service systems/networks/ecology (to discover and to innovate = create + scale + improve + …)

  Service Systems Worldview

  Population Entities: Service Systems

–  People –  Organizations –  Open Source Communities –  …

  Interactions: Value Propositions

–  Promise –  Contract –  …

  Outcomes: Value-Cocreation or Disputes

–  Markets & Competition –  Governance Mechanisms –  …

Service Scientists

Entrepreneur+ Designer/Architect+

Engineer

Manager/Leader+ Consultant+ Practitioner

CREATE SCALE IMPROVE

SERVICE SYSTEM ENTITIES SERVICE SYSTEM NETWORKS SERVICE SYSTEM ECOLOGY

MERGE, DIVEST, OUT/IN-SOURCE

TRANSFORM,ETC.


Service system entities are diverse and complex “The goal of science is to make the wonderful and complex understandable and simple – but not less wonderful.” – Herb Simon, The Sciences of the Artificial

  A. Informal Service Systems   B. Formal Service Systems

  1. Social Systems   Human Systems/Sociotechnical Systems   Human Cultures

  2. Political Systems   Governed Systems   Value Systems

  3. Economics Systems   Markets and Organizations   Firms or Hierarchies   Economic Institutions   Gray Markets

  4. Legal Systems   Legislative, Judicial, Executive Separation

  5. Organizational Systems   Managed Systems   Open Source Communities

  6. Information Systems   Linguistic Systems   Mathematical Systems   Physical Symbol Systems

  7. Engineered Systems   Technological Systems   Designed Systems

  8. Ecological Systems   Evolved Systems   Nature’s Services

A.

B.

1. 2.

3.

4. 5.

6.

7.

8.


Biological System Entities: Also diverse and complex

“…from so simple a beginning endless forms most beautiful and most wonderful have been, and are being, evolved.” – Charles Darwin


Early Stage: Collect and Classify (Biology Begins)

Mature Stage: Unify and Mathematize (Physics Matures; Electro-Magnetism)

Stages of scientific maturity

Carl Linnaeus, the father of modern taxonomy and ecology a pioneer of the science of biology


IBM has begun to systematically classify diverse service systems industry by industry, component by component, measure by measure…

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

14

Component Business Model to Help Decompose Your Business Experience and Know-how from Thousands of Client Engagements

 70+ maps supporting 17 industries  23 enhanced with key performance

indicators (KPI)  Over 2,000 trained CBM specialists

armed with the CBM tool  30 CBM patents filed  CBM tool license available to clients

Component Business Modeling tool 2.0

Integrates with WebSphere Business Modeler

Presentation to Gartner in October 2007, by R. Leblanc

15

Integrating Component Business Models with Industry Process Models

+ =

IBM is bringing together its Business Process Management Center of Excellence (BPM CoE), IBM Research, and the Global Business Solution Center (GBSC) to map Component Business Models (CBM) to Industry

Process Models

Component Business Models (CBM) and Tool

Industry Process Models in WBM, built by BPM CoE,

leveraging APQC’s Process Classification Framework

Result: business transformation engagements delivered more quickly,

through more industry-specific insights and more powerful CBM Tool

Presentation to Forrester in November 2007, by T. Rosamilia


Service System/Network 1. People 2. Technology 3. Shared Information 4. Organizations

connected by value propositions Computational System More transistors, more powerful Requires investment roadmap

More win-win interactions, more value Requires investment roadmap

What would a service systems breakthrough look like? How about a CAD tool for service system/network design? And a new Moore’s Law for service system improvement?


Towards a Moore’s Law

  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.


0 25 50 100 125 150

Automobile

75

Years

50

100 Telephone Electricity

Radio

Television

VCR

PC

Cellular % A

dopt

ion

More of the value from new knowledge is unlocked by service systems/networks, as they scale

  Supply: Knowledge creation rate

  Demand: Customer adoption rate

  Service system/ network growth

  How to invest?


IBM Institute for Business Value (IBV): How to invest Component Business Model: Making specialization real


From Information Analytics to Business Insight: BIW COBRA (Corporate Brand); SIMPLE (Intellectual Property) Better use of information, better decisions, continuous CBM KPI improvements

Valium (Trade Name)

Diazepam (Generic Name)

CAS # 439-14-5 (Chemical ID #) Valium>149 “names” Also New Book: Mining the Talk, Spangler & Kreulen

Courtesy of Jean Paul Jacob, IBM


Intelligent Document Gateway (IDG): Service System Analysis

  Process

  Digitization

  Business Logic


Call Centers as knowledge-intensive service systems

  Components

  Analytics

  Processes

  Dashboard

  Performance

CA

CM

July 2006


Service System Design Lab Network (ServSys DLN)

 Real World   Sensor augments   Semantic augments

 Virtual World   Design servicescape   Rehearsals

 Simulated World   Design exploration

  CAD Tool

“We expect a production increase of 5–10 percent with Intelligent Oilfield," Jonathan Krome, IBM.

Jacob Hall

“IBM's Traffic Prediction Tool predicted traffic flows … …results were well above the target accuracy

of 85 percent,” Teresa Lim IBM

Courtesy of Jean Paul Jacob, IBM


Courtesy of Steve Kwan, SJSU

Design lab projects = Potential to cover all contracts that exist between service system entities

Examples: IBM contracts to improve oil field productivity; or traffic flows, etc.

Systematically exploring the space of all service systems:

nation by nation industry by industry component by component measure by measure

Government, Healthcare, Education Retail, Utility, Travel, Financial, Professional

Entertainment, Transportation, Communication


2000 2010 2020 2030

Log

Entities

6

9

12

15

existing projects

and projection 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 106), (2010 109), (2020 1012), (2030 1015) … - PC: (2000 103), (2010 106), (2020 109), (2030 1012) …

Global service system ecology simulator: By 2013? Fundamental to CAD tool development


II. Some Basics

  We are all customers   We are all providers   We are all students of

service, more or less

  More and more of us digitally connect to service networks

  Modern service is quantitatively and qualitatively different

  Knowledge-Intensive Service Economy   Service science is different, it integrates   What should a service scientist know?   Resources are the building blocks of service

system entities   Value propositions are the building blocks of

service system networks   Access rights are the building blocks of

service system ecology   Relationships are a type of resource too   Service and non-service interactions (ISPAR)


Knowledge-Intensive Service Economy

  Service is as old as the division of labor across life cycles

  Modern service becomes possible when billions can connect digitally to service networks

  The value of new knowledge is enhanced as the pace and frequency of knowledge access and use is accelerated by larger scale service networks

Percentile change in skill descriptions 1969-1999 Based on U.S. Department of Labor’s

Dictionary of Occupational Titles (DOT) From Levy and Marnane (2004),

Autor, Levy Marnane (2003)

Knowledge-Intensive Service Economies (KISE) create jobs that require expert thinking (specialization) and complex communication skills (integration)


Service science is different, because it integrates… Many say that “service science is just ___<see list of disciplines below>____” Most like general systems theory (abstract) and systems engineering (applied)

A Service System is Complex

Operations R

esearch …

Industrial Engineering

Systems Engineering

Organization Theory

Econom

ics & Law

Multi-agent S

ystems

Information M

anagement

Gam

e Theory

Managem

ent Science

Mngm

nt of Info Sys (M

IS)

General System

s Theory

Anthropology

CS

/Artificial Intelligences

Information S

cience

Social S

cience/ Poli-S

ci

Cognitive S

cience/Psych

Marketing

Operations M

ngmnt …

Most disciplines specialize… Service science integrates

Service system entities are dynamic configurations of resources… people, technology, organizations, shared information (e.g., language, laws, measures, models, processes, policies, relationships, rights, etc.) connected to other service system entities by value propositions for the purpose of value-cocreation relationships, with governance mechanisms for dispute resolution.

Queuing Theory


What should a service scientist know?

  I. Theoretical & Practical Foundations  1. Concepts & Questions  2. Tools & Methods

  II. Disciplines & Expert Thinking  3. History & Evolution: Economics & Law  4. Customer: Marketing & Quality Measure  5. Provider: Operations & Productivity Measure  6. Authority: Governance & Compliance Measure  7. Competitor: Design & Sustainable Innovation Measure  8. Privileged Access: Anthropology & People Resources  9. Owned Outright: Engineering & Technology Resources  10. Shared Access: Computing & Information Resources  11. Leased/Contract: Sourcing & Organization Resources  12. Future & Investment: Management & Strategy

  III. Professions & Complex Communication  13. Mindset & Entrepreneurship  14. Science & Leadership For a service science outline and 200+ annotated references, refer to: http://www.cob.sjsu.edu/ssme/refmenu.asp

T-shaped professionals are aware and in high demand because they have both depth and breadth

They combine expert thinking (depth in one or more areas) and complex communications (breadth across many areas)

complex communication

expert thinking

Courtesy of Jean Paul Jacob


Resources are the building blocks of service systems entities

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)

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)

operant operand

Physical

Not-Physical

Rights No-Rights

2. Technology

4.. Shared Information

1. People

3. Organizations


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

Stakeholder Perspective (the players)

Measure Impacted

Pricing Decision

Basic Questions

Value Proposition Reasoning

1.Customer Quality (Revenue)

Value Based

Should we? (offer it)

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

2.Provider Productivity (Profit)

Cost Plus

Can we? (deliver it)

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

3.Authority Compliance (Taxes and Fines)

Regulated May we? (offer and deliver it)

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

4.Competitor (Substitute)

Sustainable Innovation (Market share)

Strategic Will we? (invest to make it so)

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

Value propositions coordinate & motivate resource access


Access rights are the building blocks of service system ecology

  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 P C Competitor Provider Customer Authority

value-proposition change-experience dynamic-configurations

(substitute)

time

Third foundational premise of service science:

The access rights associated with customer and provider resources

are reconfigured by mutually agreed to value propositions

relationships


Relationships are a type of resource too…

A. Service Provider

•  Individual •  Organization •  Public or Private

C. Service Target: The reality to be transformed or operated on by A, for the sake of B

•  People, dimensions of •  Business, dimensions of •  Products, goods and material systems •  Information, codified knowledge

B. Service Client

•  Individual •  Organization •  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)

- Based on Gadrey (2002)

“… the important distinction is that the relationship has become a resource in itself… thus the returns have now more to do with extending the scope, content and process of the relationship.”

Bryson, Daniels and Warf “Service Worlds”


Service and non-service interactions (ISPAR)

  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

1

3

2 5 6

4

10 9

8

ISPAR descriptive model

lose-win (coercion)

win-win (value-cocreation)

lose-lose (co-destruction)

win-lose (loss-lead)

Win Lose

Provider

Lose Win Customer

7


Culturally-based Value Principles

  Efficiency (Conserve Resources)

  Reducing costs of communication and transportation has a huge impact on value creation potential

  Cost of storage, processing, and communication of information

  Cost of storage, processing, and transportation of physical

  Transaction costs in social system reduction (by firm or market) has a huge impact on value-cocreation potential (the amount of trust and compliance in the system, to reduce governance costs)


III. Short History

  The last five years   US News   America COMPETES Act   SSMED summary


Global Change and SSMED

In 2006 the service sector’s share of global employment overtook agric. for the first time, increasing from 39.5% to 40%. Agric.decreased from 39.7% to 38.7%. The industry sector accounted for 21.3% of total employment. - International Labour Organization

Germany $87M Innovation with Services EU $100M NESSI pending China 5 Yr Plan Modern Services Japan $30M Service Productivity US $4M+ NSF SEE HR 2272/1106 . . . And More! Related activities to date

- ACM, IEEE, INFORMS, SRII SIGs - 130 Programs, 44 Countries - Over 100 conference and journal papers - >100 Press, >10,000 Web site mentions - IBM – 400 Service Researchers WW

What is SSMED really? - Focus on service innovation - Proto-discipline & professions - Research area


US News – Smart Choices Graduate Engineering

  ENVIRONMENTAL ENGINEERING It's a growing field, and engineers are

needed to clean up existing pollution problems and prevent future ones.

  SERVICE SCIENCE, MANAGEMENT, AND ENGINEERING (SSME)

This emerging discipline is getting a big push from industry, including IBM and Hewlett-Packard. SSME combines engineering, computer science, economics, and management to improve the service sector.

http://www.usnews.com/usnews/edu/grad/articles/brief/gbeng_brief_2.php http://www3.brookings.edu/metro/pubs/20070904_gleiecosystem.pdf


The U.S. National Innovation Investment Act (America COMPETES)

  US House and Senate voted to approve on August 2nd,, 2007; President has signed.

  SEC. 1005. STUDY OF SERVICE SCIENCE.

  (a) Sense of Congress- It is the sense of Congress that, in order to strengthen the competitiveness of United States enterprises and institutions and to prepare the people of the United States for high-wage, high-skill employment, the Federal Government should better understand and respond strategically to the emerging management and learning discipline known as service science.

  (b) Study- Not later than 270 days after the date of enactment of this Act, the Director of the Office of Science and Technology Policy, through the National Academy of Sciences, shall conduct a study and report to Congress regarding how the Federal Government should support, through research, education, and training, the emerging management and learning discipline known as service science.

  (c) Outside Resources- In conducting the study under subsection (b), the National Academy of Sciences shall consult with leaders from 2- and 4-year institutions of higher education, as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)), leaders from corporations, and other relevant parties.

  (d) Service Science Defined- In this section, the term `service science' means curricula, training, and research programs that are designed to teach individuals to apply scientific, engineering, and management disciplines that integrate elements of computer science, operations research, industrial engineering, business strategy, management sciences, and social and legal sciences, in order to encourage innovation in how organizations create value for customers and shareholders that could not be achieved through such disciplines working in isolation.

http://thomas.loc.gov/cgi-bin/query/F?c110:5:./temp/~c110nPy6Rp:e19768:


IV. Why Now?

  Modern service networks -digitally connected services for billions of people

  Billions of people digitally connected   Millions of organizations too   Trillions of devices   Quadrillions of concept-concept pairs


Nation Labor %

A %

G %

S %

Service Growth

China 21.0 50 15 35 191%

India 17.0 60 17 23 28%

U.S. 4.8 3 27 70 21%

Indonesia 3.9 45 16 39 35%

Brazil 3.0 23 24 53 20%

Russia 2.5 12 23 65 38%

Japan 2.4 5 25 70 40%

Nigeria 2.2 70 10 20 30%

Bangladesh 2.2 63 11 26 30%

Germany 1.4 3 33 64 44%

Ten Nations Total 50% of World Wide Labor

A = Agriculture, G = Goods, S = Services 1980-2005 PC Age

2005 United States

The largest labor force migration in human history is underway, driven by global

communications, business and technology growth, urbanization and low cost labor

(A) Agriculture: Value from

harvesting nature

(G) Goods: Value from

making products

(S) Services: Value from enhancing the

capabilities of things (customizing, distributing, etc.) and interactions between things

The economic change we all know… The small “other” category emerges as a dominant

International Labor Organization

US Employment History & Trends


In 2006 the service sector’s share of global employment overtook agric. for the first time in human history, increasing from 39.5% to 40%. agric.decreased from 39.7% to 38.7%. The industry sector accounted for 21.3% of total employment.

- International Labour Organization

Fact: 2006 was first year that service jobs overtake agriculture jobs world wide

  Correlates with growth of   More people, more large cities   More technology, more global networks   More organizations, more wealth   More information, more knowledge

  Increase in connectedness   Billions of people   Billions of devices (computers, phones,

TVs, security cameras, routers, etc.)   Millions of organizations   Quadrillions of symbol-concepts

  Increase in interactions   Productive (value +)   Unproductive (value -)


Investment is lagging Cannot invest wisely until more systematic understanding

  Businesses in the US service sector account for:

 More than 2/3 of GDP and jobs

 …And yet less than 1/3 of R&D investment

  However, measuring R&D investment in service sector is still being refined

  Includes and is more than technology innovation investment

  Currently, does not lead to as many patents

  Frequently depends on new business formation

http://www.nist.gov/director/prog-ofc/report05-1.pdf


From Saul Griffith, “Visualizing a thousand people”

Recap (1 of 6): Why now? Visualizing a thousand people

  People connectedness: Hunter-gatherer clans living off the land, family roles and human life cycle division of labor

  Technology connectedness: Simple tools carried with hunting bands/clans

  Organization connectedness: Largely isolated bands, conflict typical of encounters

  Information connectedness: No written language


The Company of Strangers : A Natural History of Economic Life by Paul Seabright

“Evolution of Trust: Human beings are the only species in nature to have developed an elaborate division of labor between strangers. Even something as simple as buying a shirt depends on an astonishing web of interaction and organization that spans the world. But unlike that other uniquely human attribute, language, our ability to cooperate with strangers did not evolve gradually through our prehistory. Only 10,000 years ago--a blink of an eye in evolutionary time--humans hunted in bands, were intensely suspicious of strangers, and fought those whom they could not flee. Yet since the dawn of agriculture we have refined the division of labor to the point where, today, we live and work amid strangers and depend upon millions more. Every time we travel by rail or air we entrust our lives to individuals we do not know. What institutions have made this possible?”

Recap (2 of 6): Why now? Evolution of trust


Recap (3 of 6): Why now? Visualizing a million people

From Saul Griffith, “Visualizing a million people”

  People connectedness: Cities concentrate human interactions, and division of labor increases

  Technology connectedness: Transportation and utility service infrastructures grow

  Organization connectedness: States and businesses interconnect

  Information connectedness: Written language


The Visible Hand: The Managerial Revolution in American Business by Alfred Dupont Chandler

Recap (4 of 6): Why now? Evolution of business organizations


“Recap (5 of 6): Why now? Visualizing a billion people

From Saul Griffith, “Visualizing a billion people”

  People connectedness: Community and information-centric web sites, many large cities

  Technology connectedness: Telecommunication, world wide web, global travel

  Organization connectedness: Millions of businesses, elaborate state structure, NGOs, etc.

  Information connectedness: Digital media, search, entity co-tables (s-webs)


Estimations based on Porat, M. (1977) Info Economy: Definitions and Measurement

Estimated world (pre-1800) and then U.S. Labor Percentages by Sector

The Pursuit of Organizational Intelligence, By James G. March

The Origin of Wealth by Eric D. Beinhocker

2M years as hunting clans/bands 10K years as farm families 200 years as factory workers 60 years (so far) as knowledge workers in organizations and now digital networks

Recap (6 of 6): Why now? Evolving knowledge-intensive service economy


IEEE Computer, Jan 2007

What is service science?

Service science is the study of service systems, entities (like people, businesses, government agencies, communities, on-line and off-line, etc.) that dynamically configure resources and interact to cocreate value, via mutually agreed to value propositions, with governance mechanisms to resolve disputes and learn from past experience.

Service networks are revealed patterns of service systems, given an analysis framework.

Service ecology is the study of the evolution of populations of types of service systems, that change over time, giving rise to new types of service systems, value propositions, governance mechanisms, resources, and types of value.


People

“All the information workers observed experienced a high level of fragmentation in the execution of their activities. People averaged about three minutes on a task and about two minutes on any electronic device or paper document before switching tasks.”

Gloria Mark and Victor M. Gonzalez, authors of “Research on Multi-tasking in the Workplace”


Families

"The family is the natural and fundamental group unit of society and is entitled to protection by society and the State".

Article 16(3) of the Universal Declaration of Human Rights

“Developing a Family Mission Statement” Stephen R. Covey, author of The 7 Habits of Highly Effective Families

“In the agricultural age, work-life-and-family blended seamlessly.”

IBM GIO 1.0


Cities

“Cities are the defining artifacts of civilisation. All the achievements and failings of humanity are here… We shape the city, and then it shapes us. Today, almost half the global population lives in cities.”

John Reader, author of Cities

IBM Releases ``IBM and the Future of our Cities'' Podcast

IBM Press Release 2005


Nations

“Understanding economic change including everything from the rise of the Western world to the demise of the Soviet Union requires that we cast a net much broader than purely economic change because it is a result of changes in (1) the quantity and quality of human beings; (2) in the stock of human knowledge particularly as applied to human command over nature; and (3) the institutional framework that defines the deliberate incentive structure of a society.”

Douglass C. North, author of Understanding the Process of Economic Change


Businesses

“…of the 100 entities with the largest Gross National Product (GNP), about half were multi-national corporations (MNCs)… The MNCs do not exist on traditional maps.”

Alfred Chandler and Bruce Mazlish, authors of Leviathans

“The corporation has evolved constantly during its long history. The MNC of the late twentieth century … were very different from the great trading enterprises of the 1700s. The type of business organization that is now emerging -- the globally integrated enterprise -- marks just as big a leap. “

Sam Palmisano, CEO IBM in Foreign Affairs


Universities

“The contemporary American university is in fact a knowledge conglomerate in its extensive activities, and this role is costly to sustain.”

Roger L. Geiger, author of Knowledge and Money: Research Universities and the Paradox of the Marketplace


Hospitals

“Modern medicine is one of those incredible works of reason: an elaborate system of specialized knowledge, technical procedures, and rules of behavior.”

Paul Starr, author of The Social Transformation of American Medicine


Call Centers

“Call Centers For Dummies helps put a value on customer relations efforts undertaken in call centers and helps managers implement new strategies for continual improvement of customer service.”

Réal Bergevin, author of Call Centers For Dummies


Data Centers

“All data centers are unique, but they all share the same mission: to protect your company’s valuable information.”

Douglas Alger, author of Build the Best Data Center Facility for Your Business


V. Ongoing Debate

  What is service   What is science   What is best way to

proceed

  Two dominant views of service   Two dominant views of innovation   Two dominant views of SSMED as science   Customer versus engineering focus   Marketing versus operations focus   Education versus management focus   SSME versus SSMED   Integrating disciplines: pairs versus lists   People are not resources   What kind of systems are service

systems?   Abstract versus pragmatic   Doable versus too hard


Visit us in San Jose, CA USA

IBM Almaden Research Center

One of eight main IBM Research labs worldwide

Questions?

Email: [email protected] Blog: http://forums.thesrii.org/blog?blog.id=main_blog Service Research: http://www.almaden.ibm.com/asr/ Service Innovation: http://www.ifm.eng.cam.ac.uk/ssme/


SSMED Emerging


“Half of the world’s languages will disappear by 2100”

Are the number of languages increasing or decreasing?

What about disciplinary and professional languages?

One symbol-concept pair about every 10 seconds

Language Evolution


The Mechanisms of Economic Evolution

  Standard operating procedures are passed down from one generation to the next

  Successful processes can be copied, though transfer is not costless

  Learning curves   Patent protection

  Evolution of firms … best understood through an examination of history

“If the adaptation of both the business firm and biological species to their respective environments are instances of heuristic search… we will still have to account for the mechanisms that bring the adaptation about. In biology the mechanism is located in the genes and their success reproducing themselves. What is the gene’s counterpart in the business firm?

Nelson and Winter suggest that business firms accomplish most of their work through standard operating procedures – algorithms for making daily decisions that become routinized and are handed down from one generation of executives and employees to the next.”

- Herb Simon, Sciences of the Artificial, pg. 48


Test

SSMED for IFIP 20080811€¦ · © 2005 IBM Corporation 3 Service Research and Innovation | Service...

Documents

Transcript of SSMED for IFIP 20080811€¦ · © 2005 IBM Corporation 3 Service Research and Innovation | Service...