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Social Physics:A Service Science Perspective
Jim Spohrer, IBM
Team Call – IBM Europe GBS Talent and Change
Wednesday April 22, 2015http://www.slideshare.net/spohrer/social-physics-2015422-v2
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“A service scienceperspective considersthe evolving ecology of service system entities, value co-creation andcapability co-elevationInteractions, their capabilities, constraints,rights, and responsibilities.
“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.”
“Multilevel nested, networked holistic service systems (HSS) that provision whole service (WS) tothe people inside them. WS includes flows (transportation, water, food, energy, communications), development (buildings,retail ,finance, health,
education), and governance (city, state, nation). ”
University Four Missions1. Learning2. Discovery3. Engagement4. Convergence
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Up-SkillCycle
University-Region1
University-Region2
= New Venture
= Acquisition
= High-GrowthAcquisition/New IBM BU(Growing)
= High-Productivity/Mature IBM BU(Shrinking)
= IBMer moving from
mature BU to acquisition
= IBMer moving into
On Campus IBMer role(help create graduateswith Smarter-Planet skills,help create Smarter Planetoriented new ventures;Refresh skills
= Graduates with
Smarter Planet skills
IBM
What is more important than this?
• “To our children and children’s children, to whom we elders owe an explanation of the world that is understandable, realistic, forward-looking, and whole.”– Stephen Jay Kline (1922-1997)
– From the dedication of “The Conceptual Foundations of Multidisciplinary Thinking,” Stanford University Press, 1995.
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Simonite, T. 2014. Software Mines Science Papers to Make New Discoveries. MIT. November 25, 2014.URL: http://m.technologyreview.com/news/520461/software-mines-science-papers-to-make-new-discoveries/
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National Science FoundationA feature of a service system is the participation and cooperation of the customer in the service and its delivery. A service system then requires an integration of knowledge and technologies from a range of disciplines, often including engineering, computer science, social science, behavioral science, and cognitive science, paired with market knowledge to increase its social benefit.
ISSIP.orgProfessional Development for Service Innovators
• 2015 Conferences– HICSS, Honolulu, HI, Jan 5-8– T Summit, E Lansing, MI, Mar 16-17– ICSERV,San Jose, CA July 6-8– Frontiers, San Jose, CA July 9-12– AHFE HSSE,Las Vegas, NV July 23-27
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Professionals Associations & T-Shapes
• ISSIP
• INFORMS
• IEEE
• ACM
• AMA (Marketing)
• AIS
• POMS
• TSIA
For more complete list of 24 see: http://service-science.info/archives/1982
http://tsummit2014.org
Journals
For more see: http://service-science.info/archives/2634
Paul Maglio, Editor Mary Jo Bitner, Editor
Readings & Textbooks
See http://service-science.info/archives/2708 http://service-science.info/archives/1931
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Thinking About Value
• Service as value co-creation
– The application of knowledge for mutual benefits (outcomes) when entities interact
• Service innovations scale benefits
– Role of platforms (tech, biz, social)
• Service experience
– Expectations, Interactions, Outcomes
Basics
• Service science is the study of service systems and value-cocreation interactions and outcomes, through the lens of a service-dominant logic (SDL) worldview
– All economic interactions are direct or indirect service interactions
– Goods are vehicles for indirect service interactions
• SDL (Vargo & Lusch) defines service as…– the application of competence (e.g., knowledge) for the benefit of another entity
– slightly more specific, easier to understand
• Service science (Spohrer & Maglio) defines service as…– value-cocreation interactions among service system entities
– slightly more general, harder to understand
Service Systems Thinking: ABC’s
A. Service Provider
• Individual
• Institution
• Public or Private
C. Service Target: The reality to be
transformed or operated on by A,
for the sake of B
• Individuals or people, dimensions of
• Institutions or business and societal organizations,
organizational (role configuration) dimensions of
• Infrastructure/Product/Technology/Environment,
physical dimensions of
• Information or Knowledge, symbolic dimensions
B. Service Customer
• Individual
• Institution
• 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)
Spohrer, J., Maglio, P. P., Bailey, J. & Gruhl, D. (2007). Steps
toward a science of service systems. Computer, 40, 71-77.
From… Gadrey (2002), Pine & Gilmore (1998), Hill (1977)
Vargo, S. L. & Lusch, R. F. (2004). Evolving to a new
dominant logic for marketing. Journal of Marketing, 68, 1 – 17.
(Mystery) Unknown <> Known (Justified True Belief)
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Service system entities calculate value from multiple stakeholder perspectives
• Second foundational premise of service science
– Service system entities calculate value from multiple stakeholder perspectives
– Value propositions are the building blocks of service networks
• 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
– Citizens: special customers– Entrepreneurs: special providers– Parents: special authority– Criminals: special competitors
Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In
Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ..
Model of competitor: Does
it put us ahead? Can we
stay ahead? Does it
differentiate us from the
competition?
Will we?
(invest to
make it so)
StrategicSustainable
Innovation
(Market
share)
4.Competitor
(Substitute)
Model of authority: Is it
legal? Does it compromise
our integrity in any way?
Does it create a moral
hazard?
May we?
(offer and
deliver it)
RegulatedCompliance
(Taxes and
Fines, Quality
of Life)
3.Authority
Model of self: Does it play
to our strengths? Can we
deliver it profitably to
customers? Can we
continue to improve?
Can we?
(deliver it)
Cost
Plus
Productivity
(Profit,
Mission,
Continuous
Improvement,
Sustainability)
2.Provider
Model of customer: Do
customers want it? Is there
a market? How large?
Growth rate?
Should we?
(offer it)
Value
Based
Quality
(Revenue)1.Customer
Value
Proposition
Reasoning
Basic
Questions
Pricing
Decision
Measure
Impacted
Stakeholder
Perspective
(the players)
Value propositions coordinate & motivate resource access
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Service system entities reconfigure access rights to resources by mutually agreed to value propositions
• Third foundational premise of service science
– Service system entities reconfigure access rights to resources by mutually agreed to value propositions
– Access rights are the building blocks of the service ecology (culture and information)
• 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.)
Maglio PP, SL Vargo, N Caswell, J Spohrer: (2009) The service system is the basic abstraction of service science. Inf. Syst. E-Business Management 7(4): 395-406 (2009)
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Service system entities learn to systematically exploit technology:Technology can perform routine manual, cognitive, transactional work
L
Learning Systems
(“Choice & Change”)
Exploitation
(James March)
Exploration
(James March)
Run/Practice-Reduce
(IBM)
Transform/Follow
(IBM)
Innovate/Lead
(IBM)
Operations Costs
Maintenance Costs
Incidence Planning &
Response Costs (Insure)
Incremental
Radical
Super-Radical
Internal
External
Interactions
“To be
the best,
learn from
the rest”
“Double
monetize,
internal win
and ‘sell’ to
external”
“Try to
operate
inside
the
comfort
zone”
March, J.G. (1991) Exploration and exploitation in organizational learning. Organizational Science. 2(1).71-87.
Sanford, L.S. (2006) Let go to grow: Escaping the commodity trap. Prentice Hall. New York, NY.
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Service system entities are physical-symbol systems
• Service is value cocreation.
• Service system entities reason about value.
• Value cocreation is a kind of joint activity.
• Joint activity depends on communication and grounding.
• Reasoning about value and communication are (often) effective symbolic processes.
Newell, A (1980) Physical symbol systems, Cognitive Science, 4, 135-183.
Newell, A & HA Simon(1976). Computer science as empirical inquiry: symbols and search. Communications of the ACM, 19, 113-126.
52
Summary
Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ..
Physical
Not-Physical
Rights No-Rights
2. Technology/
Infrastructure
4.. Shared
Information
1. People/
Individuals
3. Organizations/
Institutions
1. Dynamically configure resources (4 I’s)
Model of competitor:
Does it put us ahead? Will we?StrategicSustainable
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“Wise leaders make decisions only after they figure out what is good for the organization and society.”
“Practical wisdom is tacit knowledge acquired from experience that enables people to make prudent judgments and take actions based on the actual situation, guided by values and morals.”
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Source: ResourcesForLife.com
What is “cyber-coated reality” like?• From Bacteria to “nervous-system-
coated reality”• From Simple Machines to “cyber-
coated reality”• Complex Adaptive Systems
– Physical systems– Chemical systems– Biological systems– Social systems– Socio-technical systems– Physical symbol systems– Cognitive systems– Service systems
• Capabilities & Constraints• Rights & Responsibilities
– Smart service systems• AKA “cognitive service systems”
Join ISSIP.orgProfessional Development for Smart Service System Innovators
• 2015 Conferences– HICSS, Honolulu, HI, Jan 5-8– T Summit, E Lansing, MI, Mar 16-17– ICSERV,San Jose, CA July 6-8– Frontiers, San Jose, CA July 9-12– AHFE HSSE,Las Vegas, NV July 23-27
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AppleSiri
IBMWatson
MicrosoftCortana
GoogleNow
AmazonEcho
Jim Spohrer, IBM
• Dr. James (“Jim”) C. Spohrer is Director IBM Global University Programs and leads IBM’s Cognitive Systems Institute. The Cognitive Systems Institute works to align cognitive systems researchers in academics, government, and industry globally to improve productivity and creativity of problem-solving professionals, transforming learning, discovery, and sustainable development. IBM University Programs works to align IBM and universities globally for innovation amplification and T-shaped skills. Jim co-founded IBM’s first Service Research group, ISSIP Service Science community, and was founding CTO of IBM’s Venture Capital Relations Group in Silicon Valley. He was awarded Apple Computers’ Distinguished Engineer Scientist and Technology title for his work on next generation learning platforms. Jim has a Yale PhD in Computer Science/Artificial Intelligence and MIT BS in Physics. His research priorities include service science, cognitive systems for smart holistic service systems, especially universities and cities. With over ninety publications and nine patents, he is also a PICMET Fellow and a winner of the S-D Logic award.
• Director Global University Programs and Cognitive Systems Institute (2014 - )– http://cognitive-science.info– Cognitive Assistants for all occupations in smart service systems
• Director IBM Global University Programs (2009 – 2014)– http://www.ibm.com/university – 6 R’s - research, readiness, recruiting, revenue, responsibility, regions)– Universities as “smarter service systems” and startup engines of their regions
• Founding Director of IBM’s first Service Research group (2003 - 2009)– http://www.service-science.info– Service Science (short for Service Science Management Engineering Design Arts Public Policy)– http://www.issip.org– International Society of Service Innovation Professionals (ISSIP)
• Founding CTO of IBM’s Venture Capital Relations Group (1999-2002)• Apple Computer’s (Distinguished Engineer Scientist and Technologist) award (90’s)• Student: Ph.D. Computer Science/Artificial Intelligence from Yale University (80’s)• Researcher: Dialogue Systems/VERBEX – Speech Recognition Startup (1978-1982)• Student: B.S. in Physics from MIT (1974-1978)
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Measuring Impact (2003-2009)• SSME: IBM Icon of Progress & IBM Research Outstanding Accomplishment
– Internal 10x return: CBM, IDG, SDM Pricing & Costing, BIW COBRA, SIMPLE, IoFT, Fringe, VCR• Key was tools to model customers & IBM better• Also tools to shift routine physical, mental, interactional & identify synergistic new ventures• Alignment with Smarter Planet & Analytics (instrumented, interconnected, intelligent)• Alignment with Smarter Cities, Smarter Campus, Smarter Buildings (Holistic Service Systems)
– External: More than $1B in national investments in Service Innovation activities– External: Increase conferences, journals, and publications– External: Service Science SIGs in Professional Associations– External: Course & Program Guidelines for T-shaped Professionals, 500+ institutions– External: National Service Science Institutions, Books & Case Studies (Open Services Innovation)– External: International Society of Service Innovation Professionals (ISSIP)
• Service Research, a Portfolio Approach– 1. Improve existing offerings (value propositions that can move the needle on KPI’s)– 2. Create new offerings (for old and new customers)– 3. Improve outcomes insourcing, outsourcing, acquisitions, divestitures (interconnect-fission-fusion)– 4. For all three of the above, improve customer/partner capabilities (ratchet each other up)– 5. For all four of the above, increase patents and service IP assets (some donated to open forums)– 6. For all five of the above, increase publications and body-of-knowledge (professional associations)