Picmet 20130801 v2

Students For Smarter Planet:”I have MET the future, and its students!”

Jim SpohrerIBM UP Worldwide

PICMET 2013, San Jose, CAAugust 1st, 2013

IBM Smarter Planet

IBM SSME Centennial Icon of Progress

Nano-Bio-Info-Cogno

Today’s Talk: S4SP

• Some statistics and brief discipline histories• Some quotes• Some strategy

– Sciences and Applied Arts: IBM UP Strategy• Some possible futures

Some Stats: PICMET 2013 Sectors

Sector

TransEnvironThingsEnergyICTBuidlingRetailFinBizHealthEduGovOther

Health (22)

Things (36)

Finance Biz (93)

ICT (48)

Gov (36)

Edu (37)

Some Stats: PICMET 2013 Regions

Sector

NAMexSAEUAfricaRussEEuMEChinaIndiaJapanKoreaASEANWorldOther

China (60)

NA (59)

Africa (26)

MexSA (20)

World (39)

JapanKorea (50)

EU (36)

Some Short Histories:Engineering Management Discipline

(service-science.info/archives/3138)

• 1950s & 1960s (Demand and Origins, Al Rubenstein et al.)– World Events: Engineers promoted into management & executive ranks– IEEE Transactions of Engineering Management

• 1970s & 1980s (Growth in many places, NSF Erik Block & Richie Henrick, et al.)– World Events: Oil crisis and competitiveness concerns– NSF adds engineering emphasis and computer science– Industrial Engineering (IE) and Management Science (OR) degree programs– World Events: Japan’s success and competitiveness concerns– NSF Meeting, Textbooks, Growth in Degree programs and courses

• 1990s to present (Growth, Dundar Kocaoglu, Tarek Kahlil, et al.)– World Events: Internet growth and business school minor– PICMET, IAMOT, IRI, and others ( IEEE, IIE, etc.)– Challenges going forward

• Academic Silos: Engineering (accreditation) and Management (minor)• Hiring graduates into industry and industry participation in academic communities

– Opportunities going forward• Strong interest in Asia

Information & Computer Science

• “The single strongest impulse for introducing computers on campuses in the mid-1950s did not come from the schools themselves or from any federal agency, but instead from IBM.”

Data Science

• “Data science incorporates varying elements and builds on techniques and theories from many fields… with the goal of extracting meaning from data and creating data products.”

By 2020, 35 Zettabytes per year

• What’s big today will look small in a decadeGoogle processes > 24 Petabytes of data in a single day

Facebook processes 10 Terabytes of data every day

The Hadron Collider at CERN generates 40 Terabytes of data / sec

For every session, NY Stock Exchange captures 1 Terabyte of trade information

Twitter processes 7 Terabytes of data every day250,000,000 tweets

2 Billion Internet users in 2011By 2013, annual internet traffic will reach 667 Exabytes

Urban Science

• Urban science is an interdisciplinary field that studies diverse urban issues and problems

Service Science

• The transdisciplinary study of service, the application of knowledge for mutual benefits (value co-creation phenomena), in an ecology of interacting many-to-many, nested, networked viable service system entities.

Silicon Valley: Past, Present, and Future

Steve Blankwww.steveblank.com

Twitter: sgblank

The Popular View of Silicon Valley History

1910 1960 1970 1980 20001990

Innovation Networks

FruitOrchards

PersonalComputers

IntegratedCircuits

Internet

1930 1940 19501920

FruitOrchards

FruitOrchards

Steve Jobs

Moore/Noyce

Marc Andreessen

Hewlett & Packard

The Real Story of Silicon Valley History

1910 1960 1970 1980 20001990

Innovation NetworksMicrowaves/

Defense

PersonalComputers

IntegratedCircuits

Internet

1930 1940 19501920

TestEquipment

VacuumTubes

Terman and the Cold War Silicon Valley’s 1st Engine of Entrepreneurship

EntrepreneursMilitaryFinance

Crisis ProfitMotivation

CooperativeCulture

EntrepreneurialOutward-FacingTech Universities

Risk Capital

24/7 UtilitiesPredictableEconomic System

Infrastructure StableLegal System

TechnicalLabs/Universities

Steve Blank 23 Sept 2008

Free flow ofPeople/Information

Venture Capital Silicon Valley’s 2nd Engine of Entrepreneurship

Crisis ProfitMotivation

CooperativeCulture

EntrepreneurialOutward-FacingTech Universities Risk Capital

24/7 UtilitiesPredictableEconomic System

Infrastructure StableLegal System

TechnicalLabs/Universities

Steve Blank 23 Sept 2008

Free flow ofPeople/Information

EntrepreneursVentureFinance

Some Quotes

• The best way to predict the future is to inspire the next generation of students to build it better

• The future is already here at universities it is just not well distributed

• The core values of universities are learning, discovery, and engagement

• All viable businesses and governments learn to get smarter at scaling the benefits of new knowledge to their customers and citizens.

Some Strategy

Some more strategy…IBM Platforms for Entrepreneurs

• Smarter Cities Intelligent Operations Center Platform• IBM helping university startups to scale up (growth)04/11/2023

© IBM 2013 IBM University Programs worldwide accelerating regional

development (IBM UPward)18

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What’s UP at IBM?

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Those in-the-know say, “IBM is helping to build a Smarter Planet…”

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Smarter Planet = Smarter 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.

WORKFORCE

PRODUCTS

SUPPLY CHAIN

COMMUNICATIONS

TRANSPORTATION BUILDINGS

IT NETWORKS

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City challenges

Ryan Chin:Smart Cities

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Smart Startup: Streetline

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Smart Neonatal ICU

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Land-population-energy-carbon

Carlo Ratti:Senseable Cities

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27

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Four commandments for cities of the future: Eduardo Paes at TED2012

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SC IOC as a Platform for Innovation

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Identifies entrepreneurs developing businesses aligning with our Smarter Planet vision.

SmartCamp finalists raised more than $50m and received significant press in Wall Street Journal, Forbes and Bloomberg

in

Healthcare SmartCamp kickstart - Miami - May 15, 2012 Apply by April 27th

SmarterCities SmartCamp kickstart - New York - May 24, 2012 Apply by May 3rd

North America Regional SmartCamp - Boston - June 20 & 21, 2012 Apply by May 25th

apply now at www.ibm.com/isv/startup/smartcamp

Exclusive Networking andMentoring event

North America SmartCamp lead: Eric Apse, [email protected] Programs lead: Dawn Tew, [email protected]

http://www.ibm.com/isv/startup/smartcamp

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What are the trends?

Digital ImmigrantBorn: 1988

Graduated College: 2012

Digital NativeBorn: 2012

Enters College: 2030

http://www.prlog.org/11878039-the-secrets-to-hiring-recent-college-graduates.jpg

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Transportation: Self-driving cars

Steve Mahan:Test “Driver”

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Water: Circular Economy

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Manufacturing: Circular Economy

Ryan Chin:Urban Mobility

Baxter: Building the Future

Maker-Bot: Replicator 2

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Energy: Artificial Leaf

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Technology: Cognitive Computing

3737

Example: Leading Through Connections with…Universities Collaborate with IBM Research to Design Watson for the Grand Challenge of Jeopardy !

Assisted in the development of the Open Advancement of Question-Answering Initiative (OAQA) architecture and methodology

Pioneered an online natural language question answering system called START, which provided the ability to answer questions with high precision using information from semi-structured and structured information repositories

Worked to extend the capabilities of Watson, with a focus on extensive common sense knowledge

Focused on large-scale information extraction, parsing, and knowledge inference technologies

Worked on a visualization component to visually explain to external audiences the massively parallel analytics skills it takes for the Watson computing system to break down a question and formulate a rapid and accurate response to rival a human brain

Provided technological advancement enabling a computing system to remember the full interaction, rather than treating every question like the first one - simulating a real dialogue

Explored advanced machine learning techniques along with rich text representations based on syntactic and semantic structures for the Watson’s optimization

Worked on information retrieval and text search technologies

http://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html

http://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html

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Buildings: Circular EconomyChina Broad Group:30 Stories in 15 Days

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Retail & Hospitality: Social Media

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Finance: Crowd Funding

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Health: Robotics & 3D Printing

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Education: Challenge-Based Sport

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Government: Parameterized Meta-Rules

• Innovativeness

• Equity

– Improveweakestlink

• Sustainability

• Resiliency

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Competitive Parity – Achieved.• The NFL touts parity—the idea

that any team can win on any given Sunday. But this year, parity has truly run wild.

• Through six weeks, 11 of the NFL's 32 teams are 3-3.

• The Journal asked the statistical gurus of Massey-Peabody Analytics to run a coin-flip simulation…

What is a T-shaped Student?

04/11/2023© IBM 2013 IBM University Programs

worldwide accelerating regional development (IBM UPward)

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Many disciplinesMany sectors

Many regions/cultures(understanding & communications)

Deep in one sector

Deep in one region/culture

Deep in one discipline

Silicon Valley: How many places…?

• Help win a war? Terman• Help launch new industries? Shockley• Help launch many sub-industries? RAMAC• Help improve improvement? Lean Startups

– Steve Blank: Why You Must Test Your Hypotheses• http://www.youtube.com/watch?v=_w-NUOjwMto

• Boast so many great universities!– Stanford, Berkeley, UCSC, UCSF, SJSU, etc.

http://www.youtube.com/watch?v=_w-NUOjwMto

IBM: How many companies…?

• 1. Make it to 100?– IBM Centennial Film: 100 X 100 - A century of achievements that have changed the world

• http://www.youtube.com/watch?v=39jtNUGgmd4

• 2. Achieve #1 Patents > 20 yrs in a row?– Twenty Years

• http://www-03.ibm.com/press/us/en/pressrelease/40070.wss

– Boy And His Atom• http://www.youtube.com/watch?v=39jtNUGgmd4

• 3. Make computers smarter?– Watson: Science Behind An Answer

• http://www.youtube.com/watch?v=DywO4zksfXw

– 5 in 5: New Capabilities• http://www.youtube.com/watch?v=YwfJVwknvRo

• 4.Make ~100 acquisitions of big companies in a decade?– Partnerworld

• http://www.youtube.com/watch?v=Iivc-7dLLhw

• 5. Help make a Smarter Planet?– Nation by nation, state by state, city by city

• http://www.youtube.com/watch?v=2BadLt6XkyA• http://www.youtube.com/watch?v=vuBBGYFonXM

– Internet of Thing• http://www.youtube.com/watch?v=sfEbMV295Kk

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



http://www.youtube.com/watch?v=2BadLt6XkyA



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

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

The Future: My “Mentors”

• The future is already here at universities, it is just not yet well distributed– With apologies to Gibson

• The best way to predict the future is to inspired the next generation of students to build it better– With apologies to Kay

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2030 and Beyond…. Government, Health, Education, Finance, etc.



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Questions

• What is ISSIP?

• What is a service platform?

• What is service science?

• What is a T-shaped professional?

• How is this related to your work at IBM with universities?

• What are the important future trends you see?

What is ISSIP?

• Pronounced I-ZIP• International Society

of Service Innovation Professionals

• SIG Education & Research– T-shapes– Service Science



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What is a service platform?

• Access Places & Entities– Scale benefits– Of new knowledge– Globally & rapidly

• Smart Phones & Watson• Smarter City IOC• Franchises



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Service Science

• Emerging Discipline– Service Science,

Management, and Engineering (SSME)

• Service– Not sector (ECON)– Not capability (CS)

• Value Co-Creation• Service System Entities04/11/2023

© IBM 2013 IBM University Programs worldwide accelerating regional

development (IBM UPward)54

IBM SSME Centennial Icon of Progress

How do universities fit in?

• Best way to predict the future is to inspire the next generation to build it better

• The future is already here at universities it is just not well distributed



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Growth

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Nesting

Matryoska dolls:Origin Japanese

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I am nested in at least 10 systemsLevel AKA ~No. People ~No. Entities Example

0. Individual Person 1 10,000,000,000 Jim

1. Family Household 10 1,000,000,000 Spohrer’s

2.Neighborhood Street 100 100,000,000 Kensington

3. Community Block 1000 10,000,000 Bird Land

4. Urban-Zone District 10,000 1,000,000 SC Unified

5. Urban-Center City 100,0000 100,000 Santa Clara

6.Metro-Region County 1,000,000 10,000 SC County

7. State Province 10,000,000 1,000 CA

8. Nation Country 100,000,000 100 USA

9. Continent Union 1,000,000,000 10 NAFTA

10. Planet World 10,000,000,000 1 UN

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Time

ECOLOGY

~14BBig Bang

(NaturalWorld)

~10KCities

(Human-MadeWorld)

sun (energy)

writing(symbols and scribes,

stored memoryand knowledge)

earth(molecules &

stored energy)

written laws(governance andstored control)

bacteria(single-cell life)

sponges(multi-cell life)

money(governed

transportable valuestored value,

“economic energy”)

universities(knowledge workers)

clams (neurons)trilobites (brains)

printing press (books)steam engine (work)200M

bees (socialdivision-of-labor)

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transistor(routine

cognitive work)

Evolution of Natural Systems & Service Systems

Unraveling the mystery of evolving hierarchical-complexity in new populations…To discover the world’s architectures and mechanisms for computing non-zero-sum

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~100 years of US job transformations

Source: US Bureau of Economic Analysis; McKinsey Global Institute Analysis



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IBM operates in 170 countries around the globe

Acquisitions contribute significantly to IBM’s growth ; ~120 acquisitions in last decade

2012 FinancialsRevenue - $ 104.5BNet Income - $ 17.6BEPS - $ 15.25 (10 yrs of

EPS d/digit growth)Net Cash - $18.2B

24% of IBMs revenue in Growth Market countries; growing at 7% ( @cc) in 2012

Number 1 in patent generation for 20 consecutive years ; 6,478 US patents awarded in 2012

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

5 Nobel Laureates10 time winner of the President’s National Medal of Technology & Innovation – latest for LASIK laser refractive surgical techniques

The Smartest Machine On Earth

100 Years of Business & Innovation in 2011

New Era in IBM’s Leadership

IBM Growth Initiatives

IBM has ~425,000 employees worldwide

Context: IBM 101

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Automobile

Inte

rnet

Technological Acceleration

0 25 50 100 125 15075Years

25

50

100TelephoneElectricity

Radio

Television

VCR

PC

Cellular

% P

enet

ratio

n

YEARS

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•iPhone/iPad app developer•wireless marketing director•microfinance infrastructure designer•3D content developer for movies, TV•social network manager•deploying technology into the cloud •organic solar cell development•digital image management

Many top in-demand jobs in 2011 did not exist in 2005!

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U.S Department of Labor estimates that today’s learner will have 10-14 jobs…

by the age of 38!

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Estimates are 85% of the jobs today’s learners will be doing haven’t been invented yet

they'll be using technologies that don't exist to solve problems we don't yet know are problems65

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Five historical cycles …

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University: Four Missions• Knowledge

– 1. Transfer (Teaching) – 2. Creation (Research)– 3. Application (Benefits)

• Commerce/Entrepreneurship• Governance/Policymaking

– 4. Re-Integration (Challenge)• Innovativeness, Equity• Sustainability, Resilience

• Nested, Networked Holistic Service Systems– Flows– Development– Governance

Nation

State/Province

City/Metro

UniversityCollege

K-12

Cultural &ConferenceHotels

HospitalMedical

Research

Worker(professional)

Family(household)

For-profits

Non-profits

U-BEEJob Creator/Sustainer

Third Mission (Apply to Create Value) is about U-BEEs = University-Based

Entrepreneurial Ecosystems

Universities Matter #1



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Japan

ChinaGermany

France

United KingdomItaly

Russia SpainBrazilCanada

IndiaMexico AustraliaSouth Korea

NetherlandsTurkey

Sweden

y = 0,7489x + 0,3534R² = 0,719

0

1

2

3

4

5

6

7

8

9

0 1 2 3 4 5 6 7 8 9

% g

loba

l G

DP

% top 500 universities

Nation’s % WW GDP and % Top 500 Universities (2009 Data)




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…But it can be costly, American student loan debt is over $900M




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“When we combined the impact of Harvard’s 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.”




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What is a U-BEE? A local job creator/sustainerInnovating “whole service” in all regions worldwide

http://www.service-science.info/archives/1056

Nation

State/Province

City/Region

UniversityCollege

K-12

Cultural &ConferenceHotels

HospitalMedical

Research

Worker(professional)

Family(household)

For-profits

Non-profits

U-BEEJob Creator/Sustainer

U-BEEs = University-Based Entrepreneurial Ecosystems

“The future is already here (at universities),it is just not evenlydistributed.”

“The best way topredict the futureis to (inspire the nextgeneration of studentsto) build it better.”

On Campus IBMers



7272

Up-SkillCycle

University-Region1

University-Region2

= New Venture

= Acquisition

= High-Growth Acquisition/ New IBM BU (Growing)

= High-Productivity/ Mature IBM BU (Shrinking)

= IBMer moving from mature BU to acquisition

= IBMer moving intoOn Campus IBMer role(help create graduateswith Smarter-Planet skills,help create Smarter Planetoriented new ventures;Refresh skills

= Graduates withSmarter Planet skills

IBM

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Measuring Quality-of-Life?A. Systems that focus on flow of things that humans need (~15%*)

1. Transportation & supply chain2. Water & waste recycling/Climate & Environment3. Food & products manufacturing4. Energy & electricity grid/Clean Tech5. 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)

0/19/02/7/42/1/1

7/6/1

1/1/0

5/17/27

1/0/2

24/24/1

2/20/24

7/10/3

5/2/2

3/3/10/0/0

1/2/2

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

* = US Labor % in 2009.

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

Data Science +Urban Science + Service Science =Smarter Planet

Jim SpohrerDirector IBM University Programs

June 17, 2013

Sciences & Applied Arts

• All sciences study systems– Physics, Chemistry, Biology, Information and

Computer Science, Service Science, etc.• All applied arts change systems

– Management, Engineering, Design Arts, Public Policy seek to apply rigorous scientific knowledge to create better worlds to inhabit

Picmet 20130801 v2

Education

data science data science

management science

service science

urban science urban

ibm university programs

strategy ibm platforms

s growth

internet growth