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IBM University Programs worldwide, accelerating regional development (IBM Upward)
University and Industry Interactions for a Smarter Planet
Dr. James (“Jim”) C. Spohrer, [email protected] Champion and Director IBM UPward(University Programs worldwide - accelerating regional development)NCET2 & UIDP, Wed 12noon EST August 31th, 2011
Dawn Tew, [email protected] Research Initiatives, University Programs Worldwide
Daniel Patrick Moynihan said nearly 50 years ago: "If you want to build a world class city, build a great university and wait 200 years." His insight is true today – except yesterday's 200 years has become twenty. More than ever, universities will generate and sustain the world’s idea capitals and, as vital creators, incubators, connectors, and channels of thought and understanding, they will provide a framework for global civil society.
Introduction: IBM & University Programs– IBM Almaden– IBM Overview– IBM University Programs Worldwide
Trend: Universities & Regional Development– Top universities and national GDP– The value of higher education– U-BEE’s as engines of job creation
Evolution: Smarter Planet & Service Science– What is Smarter Planet & Service Science?– How to measure Quality-of-Life?– How to visualize Service Science? – What’s the Skills Goal? Hint: T-Shaped People– Where are the Opportunities?– Where is the “Real Science” in SSME+D?
As the largest private employer in the City of New Orleans, Tulane University has made significant advances in rebuilding in more environmentally sustainable ways both the community at large and its campus
The IBM project is helping to transform the home of Tulane's School of Architecture, the century-old Richardson Memorial Hall, into a "smarter building living laboratory," using IBM Intelligent Building Management while maintaining respect for its historic status
Universities Worldwide Accelerating Regional Development
“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.”
“I have a technology to license…”Now universities, businesses, individuals and technology brokers can submit non-confidential business proposals, patents, white papers, etc. to
More than three quarters of post-1995 increase in productivity growth could be traced to science investments [D. W. Jorgenson, M. S. Ho, K. J. Stiroh, J. Econ. Perspect. 22, 3 (2008)]
1/3 of SBIRs reported involvement with a university including founder was a former academic, faculty were consultants, universities were subcontractors, or graduate students were employed
20 year returns for Early/Seed VCs was 20.6%, compared to 13.8% for Later Stage VCs and 8.2% for the S&P 500
8 percent of all university startups go public, in comparison to a "going public rate" of only 0.07 percent for other U.S. enterprises - a 114x difference
over 400 university startups are created nationally each year based on federally funded R&D, which included Google, Netscape, Genentech, Lycos, Sun Microsystems, Silicon Graphics, and Cisco Systems
Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were 5 years old or less
68% of university startups created between 1980 to 2000 remained in business in 2001, while regular startups experienced a 90% failure rate during that same time period
22
University Trend: Shift to e-Learning and IC U-BEEs
University sub-systemsDisciplines in Schools (circles)Innovation Centers (squares)
E.g., CMU Website (2009)“Research Centers:where it all happens – to solve real-world problems”
Disciplines in SchoolsAward degreesSingle-discipline focusResearch discipline problemsMore e-Learning
Universities connect innovation flows between Regions (“High Speed Bus”)
World as System of SystemsWorld (light blue - largest)Nations (green - large)States (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)
Developed MarketNations
(> $20K GDP/Capita)
Emerging MarketNations
(< $20K GDP/Capita)
IBM UP WW: Tandem Awards: Increasing university linkages (knowledge exchange interactions)
Sci Net Consortium at Sci Net Consortium at University of TorontoUniversity of Toronto
IBM & University of IBM & University of Melbourne Collaboratory for Melbourne Collaboratory for Life Sciences ResearchLife Sciences Research
King Abdullah University of King Abdullah University of Science & Technology Science & Technology (KAUST)(KAUST)
IBM & Rice University to Tackle IBM & Rice University to Tackle Smarter Healthcare Challenges Smarter Healthcare Challenges with HPC POWER7with HPC POWER7
Big Picture in Words: Regional 4 I’s Upward Spirals
Academia, industry, and government, while different types of societal institutions, are nevertheless similar in that they provide career paths for individuals; in general higher skill, greater responsibility, and more productive-prior experiences and outcomes correlate with higher pay, one aspect of modern quality-of-life.
These individuals live somewhere and experience quality-of-life both where they live and where they visit; furthermore, their decisions about where to live, where to visit, which career paths and other options to pursue are shaped by culturally shared information about regional quality-of-life variations - some regions historically provide more and better opportunities than others.
Finally, stepping back for a moment, and taking a broad view of history, one can see academia, industry, and government interacting to build and rebuild more and more technologically advanced infrastructure, from buildings to transportation and utility systems; infrastructure which provides access to natural and human-made resources that support quality-of-life in regions - vast majority of regions today have increasing population densities that put stress on older systems.
How well do we understand “regional 4 I’s upward spirals” across generations?
IBM’s Smarter Planet research aims to understand infrastructure building and rebuilding, by institutions designing and redesigning career paths, for individuals working and reworking life’s options, based on shared information about regional quality-of-life and what is best for them, their families, and their communities.
Economists estimate, that all systems carry inefficiencies of up to $15 Tn, of which $4 Tn could be eliminated
Global economic value of
System-of-systems
$54 Trillion100% of WW 2008 GDP
Inefficiencies$15 Trillion28% of WW 2008 GDP
Improvement potential
$4 Trillion7% of WW 2008 GDP
How to read the chart:
For example, the Healthcare system‘s 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%).
We now have the capabilities to manage a system-of-systems planet
Source: IBM economists survey 2009; n= 480
System inefficiency as % of total economic value
Impr
ovem
ent
pote
ntia
l as
% o
f sy
stem
inef
ficie
ncy
Education1,360
Building & Transport Infrastructure
12,540
Healthcare4,270
Government & Safety5,210
Electricity2,940
Financial4,580
Food & Water4,890
Transportation (Goods & Passenger)
6,950
Leisure / Recreation /
Clothing7,800
Communication3,960
Analysis of inefficiencies in the planet‘s system-of-systems
Note: Size of the bubble indicate absolute value of the system in USD Billions
Our 21st Century World:Nested, Networked Holistic Service Systemshttp://www.service-science.info/archives/1056 Holistic Service Systems provide access to
“Whole Service” to people inside, including Transportation, Water, Food, Energy, Communications, Buildings, Retail, Finance, Health, Education, Governance, etc.
Examples: Nations, States, Cities, Universities, Hotels, Hospitals, Homes
Definition: An holistic service system is a service system that can provide “whole service” to its primary population of people, independent of all external service systems, for an extended period of time, balancing independence with interdependence (outsourcing limits, re-cycle to sustain, etc.)
University-Based Entrepreneurial Ecosystems (U-BEE’s): Universities are usually in the “top five” job creators of regions, when they have associated incubators & science-technology parks, super-computing data centers, hospitals, cultural & conference hotels, K-12 schools, etc.
Nation
State/Province
City/Region
UniversityCollege
K-12
Cultural &ConferenceHotels
HospitalMedical
Research
Worker(professional)
Family(household)
For-profits
Non-profits
U-BEEJob Creators
~25-50% of start-ups are newIT-enabled service offerings
Questions leaders of every nation, state, city, etc. ask
How to create more and better jobs (meaningful activities) for citizens?– higher skill & higher pay– higher participation rate, opportunities for ALL people
How to shift work towards high-skill, high-value activities? – away from low-skill, low-value routine physical, mental, interactional activities– toward high-value innovation (inventing best-practices, often from new ventures)– toward high-value transformation (implementing best-practices)– toward operations, maintenance, and incident-planning for modern infrastructure
How to invest in progress?– continuously improve infrastructure, talent, and ability to invest wisely– “true value of automation cannot be assessed until we know where people land”
• Upward spiral or downward spiral? (e.g., “Robot Nation”)
How to improve quality-of-life?– sustainably, with less environmental impact, more recycling and less imports– equal access to opportunity & justice, generation after generation, for the long-run
Dr. James (“Jim”) C. SpohrerInnovation Champion & Director, IBM University Programs & open worldwide entrepreneurship research (IBM UPower) [email protected]
“Instrumented, Interconnected, Intelligent – Let’s build a Smarter Planet.” – IBM“If we are going to build a smarter planet, let’s 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
“Today’s problems may come from yesterday’s 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
Laws of Service? 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.
What do IBM Service Professionals Do? Run IT & enterprise systems for customers,help Transform customer processes to best practices, and Innovate with customers.
Johnson, B., Manyika, J., & Yee, L. (2005). The next revolution in interactions. McKinsey Quarterly, 4, 20-33.
As more 21st century companies come to specialize in core activities and outsource the rest, they have greater need for workers who can interact with other companies, their customers, and their suppliers.
Raising the productivity of employees whose jobs can’t be automated is the next great performance challenge – and the stakes are high.
Companies that get that right will build complex talent-based competitive advantages that competitors won’t be able to duplicate easily – if at all.
Where is the “Real Science” - mysteries to explain?In the many sciences that study the natural and human-made worlds…
Unraveling the mystery of evolving hierarchical-complexity in new populations…To discover the world’s architectures and mechanisms for computing non-zero-sum
Entity Architectures (ЄN) of nested, networked Holistic-Product-Service-Systems (HPSS)
Smarter Cities and Service Innovation --INTERNET OF THINGS (Instrumented, Interconnected, Intelligent)- LIVING LABS (Triple Helix Innovations, Smarter Buildings, Asset Management, CityForward.org)- QUALITY-OF-LIFE (Holistic Modeling (CityOne), STEM Education Pipeline, Jobs & Entrepreneurship)
Cloud Computing & Analytics- BIG DATA (High Performance Computing, Grand Challenges, Boost University Rankings)- SHARED SERVICE (IBM Cloud Academy, IBM Academic Cloud, VCL)- DEEP-QA (Analytics Skills, Watson technology, Massive Analytics, Stream Computing)
Growth Markets- REGIONAL INNOVATION ECOSYSTEMS (Smarter City Challenge, Universities as Living Labs)- TANDEM AWARDS (connect developed & emerging Twin Towns & Sister Cities to Boost Quality)- ACCELERATING INNOVATION (Bi-Directional Learning’ To Be The Best Learn From The Rest)
IBM on Campus-- ON CAMPUS IBMERS (Checklist for University Relationship Maturity Audit)-- IBM CENTERS (CAS, IIE, University Delivery Centers, Research Collaboratories, etc.)-- ALIGNMENT (IBM Cloud Academy, City Shared Service, Smarter City Challenge, etc.)
Awards Programs- CLASSICS: Shared University Research, Open Collaborative Research, Faculty, PhD Fellowships- SPECIALS: Special Award Programs, Named Awards, Smarter Planet Curriculum Awards- LEVERAGE: Leverage IBM CCC&A with government, foundation, and other external award programs
Fun: CityOne Game to Learn “CityInvesting”Serious Game to teach problem solving for real issues in key industries, helping companies to learn how to work smarter. Energy, Water, Banking, Retail
Spohrer, J. & Maglio, P. P. (2010). Toward a science of service systems: Value and symbols. In P. P. Maglio, C. A. Kieliszewski & J. C. Spohrer (Eds.), Handbook of Service Science. New York: Springer.
Entities(Service Systems, both Individuals & Institutions)
Interactions(Service Networks,
link, nest, merge, divide)
Outcomes(Value Changes, both
beneficial and non-beneficial)
Value Proposition (Offers & Reconfigurations/
Incentives, Penalties & Risks)
Governance Mechanism (Rules & Constraints/
Incentives, Penalties & Risks)
Access Rights(Relationships of Entities)
Measures(Rankings of Entities)
Resources(Competences, Roles in Processes,
Specialized, Integrated/Holistic)
Stakeholders(Processes of Valuing,
Perspectives, Engagement)
Identity(Aspirations & Lifecycle/
History)
Reputation(Opportunities & Variety/
History)
prefer sustainable non-zero-sum
outcomes,i.e., win-win
win-win
lose-lose win-lose
lose-win
Spohrer, JC (2011) On looking into Vargo and Lusch's concept of generic actors in markets, or“It's all B2B …and beyond!” Industrial Marketing Management, 40(2), 199–201.
Service system entities configure four types of resources
First foundational premise of service science:
– Service system entities dynamically configurefour types of resources
– Resources are the building blocks of entity architectures
Named resources are:– Physical or – Not-Physical– Physicist resolve disputes
Named resources have:– Rights or– No Rights– Judges resolve disputes
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/EnvironmentInfrastructure
4. SharedInformation/
SymbolicKnowledge
1. People/Individuals
3. Organizations/Institutions
Formal service systems can contract to configure resources/apply competenceInformal service systems can promise to configure resources/apply competence
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 tomake it so)
StrategicSustainable Innovation(Marketshare)
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 anddeliver it)
RegulatedCompliance(Taxes andFines, 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?
Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ..
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)
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 bethe best,
learn fromthe rest”
“Doublemonetize,
internal winand ‘sell’ to
external”
“Try tooperateinside
thecomfortzone”
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.
Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. .
Service is value-cocreation, that is, useful changes that result from communication, planning, or other purposeful interactions between distinct entities.
A service system is a collection of entities and interactions that cocreate value, that is, a set of distinct configurations of resources (including people, organizations, shared information, and technology) that are better off working together than working alone.
Service Science aims to create a body of knowledge that describes, explains, predicts, and improves value-cocreation between entities as they interact, that is, relying on methods and standards used by a community to account for observable phenomenon with conceptual frameworks, theories, models, and laws that can be empirically tested.
So the object of study value-cocreation, the basic abstraction is the service system, and the ultimate goal is develop methods and theories that can be used to explain and improve value-cocreation in service systems.
physical dimensions of• Information or Knowledge, symbolic dimensions
B. Service Customer
• Individual• Institution• Public or Private
B. Service Customer
• Individual• Institution• Public or Private
Forms ofOwnership Relationship
(B on C)
Forms ofService Relationship(A & B co-create value)
Forms ofResponsibility Relationship
(A on C)
Forms ofService 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.
“Service is the application ofcompetence for the benefitof another entity.”
Example Provider: College (A)Example Target: Student (C)Discuss: Who is the Customer (B)?- Student? They benefit…- Parents? They often pay…- Future Employers? They benefit…- Professional Associations?- Government, Society?
After a decade the course may look quite differentService systems are learning systems: productivity, quality, compliance, sustainable innovation
Maglio, P., Srinivasan, S., Kreulen, J.T., Spohrer, J. (2006), Service systems, service scientists, SSME, and innovation. Communications of the ACM, 49(7), 81-85.
• PSS (Physical Symbol Systems – Environment & Technology)– Biological PSS (observable information – DNA, RNA, proteins, etc.)– Technological PSS (observable information – states of system, bits, etc.)
Life = multiple generations of entities– Entities = SSE (Service System Entities)
• Individuals with Competencies & Life-Spans– Competencies (vary with age)– Life-Spans (vary with stage)
• Institutions with Roles & Rules– Roles (Competency-Levels and Pay-Levels)– Rules (Compliance-Levels and Tax-Levels)
Life = Multiple Generations of Entities (200 years = 10 generations x 20 years)Pedagogy: Ten Social-Technological-Economic-Environmental-Political (STEEP) StagesThought Experiment: Binary-Board-Space (Rule: Toggles Each Generation)
The Game Board: A configuration of PS (Physical Systems), with interspersed PSS (Physical Symbol Systems) and SSE (Service System Entities).
– The SSE are PSS are PS
– The infrastructure is PS + PSS
• The PS have hidden information (state)• The PSS have observable information (state and read-write)
– The SSE use information to co-create value
• World model – information about the world (The Game Board)• Self model – information about self (SSE)• The SSE have a beginning and an end (life-cycle)• The SSE judge quality-of-life across their life-cycle
– The game is each generation of SSE try to improve quality-of-life, by improving the capabilities of the infrastructure (less waste, more support for SSE activities) and the capabilities of the SSE to co-create value (an SSE activity)
– The starting game board consists of PS with a few PSS, and the goal is to see how quickly and with how little energy and with how few types and tokens of PS, the PSS can become SSE and reconstruct a high level infrastructure and high quality of life and continuously improve at a sustainable pace.
Priority 1: Urban Sustainability & Service Innovation Centers
A. Research: Holistic Modeling & Analytics of Service SystemsModeling 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 & LLLCity 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 CreationCity modeling and intervention planning tools can engage university
students and build entrepreneurial skills
Grand challenge competitions can lead to new enterprises
SMART ISSolving building systems shortcomings with the most appropriate, effective & energy efficient approaches.
Tulane University:Connecting to existing building systems to collect metered data; incorporating advanced analytics to uncover sub optimal conditions; bringing disparate data together to drive better decision making and measurably reduce overall energy costs..
IBM Rochester, MN:Incremental energy savings of approximately 5% yearly through various improvements and programs; after the installation of IBM Intelligent Building Management, the team achieved an incremental 8% savings.
SMART ISIntegration of energy and asset management to lower operating cost.
SMART ISOptimizing energy consumption lowers operating costs and reduces carbon emissions.
Bryant University:An IT initiative to create an energy-efficient data center shifted to a partnership between IT & Facilities to construct smarter buildings. A 15% reduction in energy use and 50% reduction in floor space in the data center are helping to reduce Bryant’s carbon footprint..
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)
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)
– I know/work with service research pioneers from many academic disciplines• I advocate for Service Science, Management, Engineering, and Design (SSME+D)
– Short-term: Curriculum (T-shaped people, deep in an existing discipline)– Long-term: New transdiscipline and profession (awaiting CAD tool)
• I advocate for SRII (“one of the founding fathers”)• Co-editor of the “Handbook of Service Science” (Springer 2010)
Other background (late 90’s and before)– Founding CTO of IBM’s Venture Capital Relations group in Silicon Valley
– Apple Computer’s (Distinguished Engineer Scientist and Technologist) award (90’s)
– Ph.D. Computer Science/Artificial Intelligence from Yale University (80’s)