Establishing SSME as a new academic discipline: SSME Doctoral Workshop © 2007 IBM Corporation Some Thoughts about Service Science Research Steve Street,

Establishing SSME as a new academic discipline: SSME Doctoral Workshop

People

FundamentalSkills

TechnologyBusiness ServiceCore

People

FundamentalSkills


© 2007 IBM Corporation

Some Thoughts about Service

Science Research

Steve Street, IBM (UK) Ltd


People

FundamentalSkills


People

FundamentalSkills



Some Thoughts about Service

Science Research

Steve Street, IBM (UK) Ltd

Trying to start to think rationally about..

..?

© 2007 IBM Corporation3

Establishing SSME as a new academic discipline:

SSME Doctoral Workshop Manchester 19 September 2008

Services Research

Content

Problems

Approaches

© 2005 IBM Corporation4 Service Research and Innovation | Almaden Research Center © 2007 IBM Corporation

Nation Labor %

A %

G%

S%

ServiceGrowth

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 NationsTotal 50% of World Wide Labor

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

2005United 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

Background - Drivers

International Labor Organization

US Employment History & Trends

5

SSME: Service Science, Management, and Engineering

IBM Research © 2007 IBM Corporation

Background - Drivers - IBM Revenue and Profits Mix

Fundamental Service Science Challenge: Scaling & learning curves are different for IT manufacturing and IT services How to invest to make progress (efficiency effectiveness, and sustainable growth)?

6

SSME: Service Science, Management, and Engineering

IBM Research © 2007 IBM Corporation

Background - Drivers - IBM Revenue and Profits Mix

Fundamental Service Science Challenge: Scaling & learning curves are different for IT manufacturing and IT services How to invest to make progress (efficiency effectiveness, and sustainable growth)?

So there’s an important Topic for Service Science to address but ….




What is the Topic / What do we care about ?

SMB

Tangible

Intangible

2C 2B

Financial Services

IT Services

Manufacturing,‘Engineering’

Public Sector

Digital Media

Specific main Content & Type of ‘Services’ – IT Services, High Value Engineering , Financial Services -




What is the Topic ?

SMB

Tangible

Intangible

2C 2B

Financial Services

IT Services

Manufacturing,‘Engineering’

Public Sector

Digital Media

Specific main Content & Type of ‘Services’ – IT Services, High Value Engineering , Financial Services -

Content -High Value Services

There is still a

need to Focus on

relevant content -

Understand the

phenomena


Is that enough for a science?

Data (Observation) Model (Theory) Analytics (Testing Validity) Take Action (Utility)

Scientific Method (Standards of Rigor) Scientific Community (Body of Knowledge) Scientific Instrumentation (Tools & Math) Value of Science (Professional Relevance)

Mature Emerging


Is that enough for a science?

Data (Observation) Model (Theory) Analytics (Testing Validity) Take Action (Utility)

Scientific Method (Standards of Rigor) Scientific Community (Body of Knowledge) Scientific Instrumentation (Tools & Math) Value of Science (Professional Relevance)

Mature Emerging

Without ParadigmWith Paradigm

IBM Confidential September 26th, 2007 © 2007 IBM Corporation11

SSME benefits. Thread 2. Management subteam

IT OM

MKT

HRENG

etc

*Service Science Management & Engineering (SSME) is the application of scientific, engineering, and management disciplines to Service Systems*

It is an interdisciplinary activity which unites other areas based on trans/cross-disciplinary collaboration

It It focuses on 4 fundamental areas / sets of resources -• Business and Organizations ‘’• Technology ‘

• People ‘

• Information Technology

*Service System: a dynamic value co-creation configuration of resources**

Service systems are complex systems, and they are also a type of ‘system of systems,’ often both containing internal smaller service systems as well as being contained within a broader service system.

Service systems typically interact via value propositions, that may create stable relationships between service systems in extended value chains or networks.

Paradigm / What is ‘Service Science’ ?

An Object

A Model




A Paradigm - A Value-Based Transactional Model of Services

The elements of a Services Environment are a configuration of - – Participants who have Values – Objects which have Attributes (one of which is tangeabilty)– Connections which connect Participants & Objects

Service Transactions change the configuration of the Participants, Objects & Connections & their attributes

– A key consideration in a Service Transaction is how the change of attributes is evaluated in each participants set of Values

Implications - using this model of Services a couple of more or less immediate implications follow -

– Models of Services -– 'Front Stage' / 'Back Stage' - the paramount significance of 'Front Stage' / 'Back Stage' is not obvious. Clearly different

connections have different characteristics but essentially there is a connected NW of participants, there is no 'a priori' reason for assuming one set of connections all has one set of characteristics or that these are particularly significant or not

– 'Products' / 'Services' - each element of the Services Environment has a set of Attributes / Characteristics of which tangeability is only one. There is no 'a priori' reason to assume that being physical is a particularly significant attribute in the Value set of all participants. So the 'product' v 'service' debate is not obviously so significant

– Novel Types of Services -– It is possible to envisage types of service transactions that make no change to any physical attribute .. and in fact that is

pretty well what those 'Red Letter' days are– Variability of Services -

– As participants do not exist standalone and the constraints on the Values that a C(ustomer) deploys within a transaction are likely to be less constrained than those of a 'B' Customer then one would anticipate that there will be more opportunity for variability in Service Transactions that appeal to C customers than B ones.

– A corrollary is that as smaller B customers will have less explicit constraints in the Values they can deploy, there will be more opportunity for variability in Service Transactions that appeal to smaller B versus larger B customers

Steve Street ( [email protected] ) Sep 07




A Paradigm - A Value-Based Transactional Model of Services

The elements of a Services Environment are a configuration of - – Participants who have Values – Objects which have Attributes (one of which is tangeabilty)– Connections which connect Participants & Objects

Service Transactions change the configuration of the Participants, Objects & Connections & their attributes

– A key consideration in a Service Transaction is how the change of attributes is evaluated in each participants set of Values

Implications - using this model of Services a couple of more or less immediate implications follow -

– Models of Services -– 'Front Stage' / 'Back Stage' - the paramount significance of 'Front Stage' / 'Back Stage' is not obvious. Clearly different

connections have different characteristics but essentially there is a connected NW of participants, there is no 'a priori' reason for assuming one set of connections all has one set of characteristics or that these are particularly significant or not

– 'Products' / 'Services' - each element of the Services Environment has a set of Attributes / Characteristics of which tangeability is only one. There is no 'a priori' reason to assume that being physical is a particularly significant attribute in the Value set of all participants. So the 'product' v 'service' debate is not obviously so significant

– Novel Types of Services -– It is possible to envisage types of service transactions that make no change to any physical attribute .. and in fact that is

pretty well what those 'Red Letter' days are– Variability of Services -

– As participants do not exist standalone and the constraints on the Values that a C(ustomer) deploys within a transaction are likely to be less constrained than those of a 'B' Customer then one would anticipate that there will be more opportunity for variability in Service Transactions that appeal to C customers than B ones.

– A corrollary is that as smaller B customers will have less explicit constraints in the Values they can deploy, there will be more opportunity for variability in Service Transactions that appeal to smaller B versus larger B customers

Now is the time to

build & test the

paradigm

Steve Street ( [email protected] ) Sep 07


Cambridge Service Science, Management, and Engineering Symposium

IBM @ the Cambridge SSME Symposium | Cambridge 14-15 July 2007

How do we tap the Power of Globalization?

How do we deliver unique value in an open,

collaborative ecosystem?

How do we forge a strategy for

Specialization?

What we need from you…Help with the questions we face as a Globally Integrated Enterprise

Leverage GlobalAssets

Serve Distinct Global

Markets

Build a Specialized Enterprise

Enable Collaboration

Manage Value in an

Ecosystem of Increasingly Specialized

Entities

Address Shared Risk and Control

Globally Integrated Enterpris

e

What specific

problems bother

Industrialists ?


Cambridge Service Science, Management, and Engineering Symposium

IBM @ the Cambridge SSME Symposium | Cambridge 14-15 July 2007

What we need from you…Methods that directly support our Services Business

Service Design – Methods, Models, Organisation, Paradigms

Innovation Patterns Investment Models for Services

– Service Value, Measurement & Legitimacy Risk Assessment models that span

company boundaries / ecosystems Pricing & Contracting models for

annuity based services Services IP

– Protection & Management …

A “Moore’s Law” for services?

Service System (Value Creating System)1. People (division of labor, multi-tasking)2. Technology3. Value Propositions Connecting Internal and External Service Systems4. Shared Information (language, laws, measures)

Higher density value co-creation configurations

Breakthrough?

They will be

articulated in

many ways




Content / Key Business Problems

Value– Understanding

– Measuring

– Complex Ecosystems

Risk– Minimising & Managing

Delivery– Optimisation

But these are the

essential focus

areas




Approach / ‘The Three Dimensional Model’

Social Science (People)

Management(Business)

Engineering (Technology)

Core Field of Study

Interactional Expertise Across Other Fields

Tower of Babel“Biggest problem in businessis people don’t know how to talk to other people in the language they understand.”Charles Holliday, CEO Dupont

Across industriesAcross culturesAcross functionsAcross disciplines=More experiencedMore adaptiveMore collaborative

Together

Slide Layout © 2007 IBM Corporation

18


Thought Leadership Workshop Manchester 17-18 September 2008

A framework for Service Science Curricula

5 Element Model -1. Service Core –

‘Key Service Concepts’ & Methods the ‘Integrative element’

2. Business – Key ‘Business’ related concepts as they

relate to Services

3. People – Awareness & high understanding of key

concepts the interaction of People as individuals, as members of a society

4. Technology – Awareness & high level understanding

of key concepts about how key technologies can be applied to Services

5. Fundamental Skills – ‘other methods’ / ‘other ways of thinking’

of value when thinking about Services




Approach / Trying the Three Dimensional Model

etc

ENG

OM

HR

MKT

IT

.. Bridging Knowledge

Multi Disciplinary

Explicit connections between subject areas

Contemporary Case Studies

'If you want a motorcycle, go to Chongqing … Although this dusty central Chinese city of drab office buildings and perpetually grey skies is better known as the gateway to the enormous Three Gorges Dam, it is also the two-wheeler capital of the world. Led by the region's pioneers, China now makes half the world's motorcycles. But more important than the numbers produced is the way these motorcycles are made—especially the way designers, suppliers and manufacturers have organised themselves into a dynamic and entrepreneurial network.

Unlike state-run firms, the city's private-sector upstarts, such as Longxin and Zongshen, do not have big foreign partners like Honda or Suzuki with deep pockets and proven designs. So they came up with a different business model, one that was simpler and more flexible. Instead of dictating every detail of the parts they want from their suppliers, the motorcycle-makers specify only the important features, like size and weight, and let outside designers improvise.

This so-called “localised modularisation” approach has been very successful and delivered big cost reductions and quality improvements, says John Seely Brown, an innovation expert who used to head the legendary Xerox PARC research centre. It is one example of the sort of business-model innovation which he insists is far more radical than conventional product or process innovation'

EXPERIMENT !

What are the most

effective

approaches ?




Summary

Content – Content is High Value Services

Paradigms– Foundations - Paradigms / Theoretical Frameworks

Problems – Key Problems - Value & Risk

Approaches– Interdisciplinary

– Partnership


People

FundamentalSkills


People

FundamentalSkills



Thanks for yourquestions and comments!

Steve Street ( [email protected] )

Establishing SSME as a new academic discipline: SSME Doctoral Workshop © 2007 IBM Corporation Some Thoughts about Service Science Research Steve Street,

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