3.3.1 IBM Almaden Services Research © Copyright IBM Corporation 2006. All rights reserved. Version 1.0 1 Services Sciences, Management and Engineering

3.3.1

IBM Almaden Services Research

© Copyright IBM Corporation 2006. All rights reserved.

Version 1.01

Services Sciences, Management and Engineering

SSME Challenges, Frameworks

and Call for Participation


22


Unit objectives

We’d like to share:

What we think are some challenges we see ahead– And invite you to add your own ideas

What we view as frameworks needed to study services sciences– And invite you to contribute examples or case studies

Our call to action to get more systematic about service innovation and develop the “science of services”– And invite you to contribute to writing about Services Sciences topics


33


The rise of the service economy

Governments need to make service innovation a priority – GDP growth depends on it.

Businesses need to make systematic approaches to service innovation a priority – revenue and profit growth depend on it.

Academics need to bridge discipline silos – service innovation is multidisciplinary – students’ futures depend on it.


44


What is SSME ?(Services Sciences, Management and Engineering)

An urgent “call to action”– To become more systematic about innovation in services– Complements product and process innovation methods– To develop “a science of services”

A proposed academic discipline– Draws on many existing disciplines– Aims to integrate them into a new specialty

A proposed research area– Service systems are designed (computer systems)– Service systems evolve (biological systems)– Service systems have scale-emergent properties (economic

systems)


55


Challenges

Definition Case studies Tools Methods Collaboration Getting systematic about innovation


66


Are there “scale laws”?

Scale laws are where science and engineering meet business. – A good scale law means that investors can

invest and gain predictable capability increases. Are there “scale laws” of service innovation? We think so, and this is one of the exciting areas for service research scientists to explore.


77


Source:Robert M. Hunt

“You can patent that?Are patents on software and

business models good forthe new economy?”

A policy challenge


88


Frameworks

Empirical Analytic Engineering Theoretical Multidisciplinary design


99


Empirical framework needed

IBM Tokyo Research Lab is working with Researchers at IBM Almaden to do agent-based simulations of organizations on the BlueGene supercomputer.

70.72 teraflops on 11/2004183.5 teraflops on 3/2004

(Linpack benchmark)


1010


Analytic framework needed

What kinds of mathematical models of service systems can be developed?

– How can supply chain, labor, etc. be optimized? Mechanism design theory

– Related to economist’s principle-agent theory Berkeley’s Papidimitriou (Papadimitriou)

– The future of Theoretical Computer Science (TCS):


1111


Design and engineering framework needed

Analysis forSpecific Solution

Integrationof SpecificSolution

Supporta SpecificSolution

Design &Creation

of SolutionPortfolio

•Proposal creation

•Requirements tradeoffs & Selection

•Policy definitions •Solution decomposition

•Component management and grooming

•Solution Modeling

•Process Modeling and optimization

•High level layout

•Design validation & assessment

•SBB integration

•Legacy integration

•Change and version management

•Detailed integration

•System validation and testing

•Quality Assessment•Training development

•Solution Staging and deployment

•Deployment monitoring (business and technology)

•Post sales tech support

•CRM and problem resolution

•Learning, improvement & evolution

•Harvesting assets

•System tuning

•Market analysis &segmentation

•Customer insightand validation

•Early experiments

•Asset portfolio creation

•Partner identification


1212


Model of service business

First level measures Second level measures Third level measures

Relationship & Sales Excellence

Operations & Delivery Excellence Value Chain & Partnership Excellence

Client-provider negotiations

1. value creation2. differentiation3. cost cutting4. compliance5. market insights

Internal to service provider1. providers resources2. investments & incentives3. quality & productivity4. innovation & growth5. life cycle management

External to service provider1. clients resources2. suppliers resources3. complementors resources4. substitutors resources5. academic, government, etc.

clien

ts

proposals & negotiation

engagements &

renegotiation

offe

ring

s(so

lutio

ns)

me

tho

ds

asse

ts

pro

du

cts

pe

op

le

service

org

an

izatio

ns

me

tho

ds

asse

ts

pro

du

cts

pe

op

le

service

org

an

izatio

ns

Governance & Management Excellence

Geographies, Industry Sectors, Solutions

1 2 3 4 5 6 7 8 9 10 11 12 13 14


1313


How do systems reconfigure?

Collaborate(incentives)

Augment(tool)

Automate(self-service)

Delegate(outsource)

ToolSystem

HumanSystem

Help meby doing some

of it for me(custom)

Help meby doing allof it for me

(standard)

The choice tochange work practicesrequires answeringfour key questions:

- Should we? (Value)- Can we? (Technology)- May we? (Governance)- Will we? (Priorities)

Organize People(Socio-economic models with intentional agents)

Harness Nature(Techno-scientific models with stochastic parts)

43

21 Z

Collaborate(1970)

Augment(1980)

Delegate(2000)

Automate(2010)

Experts: High skill people on phones Tools: Less skill with FAQ tools Market: Lower cost geography (India) Technology: Voice response system

Example: Call Centers


1414


What kinds of tools should a service scientist have?

TraderA

Trader B

Operating&Monitoring

KnowledgeBased

Market Design

( B

ichle

r, K

ers

ten, S

treck

er

20

03

)

Market outco

me

Market structure

Transaction object

CAME (WEB) Suite (AvH and SSHRC)

MarketEngineeringWorkbench

CAME Web Service CAME Web Service

(Tra

nsc

oop

, W

ein

hard

t, N

eum

ann,2

00

3)

Conduct

D. Neumann, J. Maekioe, C. Weinhardt (2005): CAME - A Toolset for Configuring Electronic Markets; In: Proceedings of the ECIS 2005, Regensburg

For Example: Computer-Aided Market Engineering System


1515


Theoretical framework needed

Sociotechnical system evolution and design– People– Technology– Organizations – including business process, business

models, economics, management, government institutions, regulations, and law

Service systems are a particular type of sociotechnical system that emphasize the coproduction of value between providers and clients


1616


INFORMATION SCIENCE & SYSTEMSINFORMATION SCIENCE & SYSTEMS

ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY

MANAGEMENTMANAGEMENT

INFORMATIONINFORMATION

SYSTEMSSYSTEMS


1717


Service innovation is inherently multidisciplinary…

Science & Engineering

Business Administration

and Management

Social Sciences

Global Economy& Markets

BusinessInnovation

TechnologyInnovation

Social-OrganizationalInnovation

DemandInnovation

SSME = Service Sciences, Management, and Engineering

Knowledge sources driving service innovations…


1818


Call for participation

Government Industry Academe


1919


What is IBM doing to support others?

Crying the “call for participation” Hosting and cosponsoring SSME events IBM Faculty Awards, PhD Fellowships, University Research (SUR)

awards Contributing to the creation of Services Sciences course material Creating B2B case studies Collaborating


2020


Getting systematic about service innovations

Improve back stage provider or client productivity

Improve front stage scope

Improve coordination

Improve dynamic evolution

Improve capabilities of people, organizations, institutions or technologies


2121


Towards Service Arts & Sciences…

Arts(Knowledge of

what can be imagined)

Science(Knowledge of

what can be validated)

Policy(Governance)

Technology(Control)

Management(Design of Possible)

Engineering(Design of Possible)

ServiceSystem

Evolution(complex adaptive systems

- Sociotechnical -with dynamics to

create and capture value- Socioeconomic -)

1. Is there a grand challenge problem worthy of both academics (a solution requires more deep knowledge and an integration across discipline silos) and businesses (a solution raises “all ships” by accelerating value creation and capture from service innovations and bestowing businesses with predictable growth advantages)?

2. Will the word “science” evolve in meaning to include methods for expanding knowledge about systems that are difficult or impossible to predict by their very nature – such as social-economic systems that invite “gaming” (as soon as the system becomes a little bit predictable competing dynamics are set in motion to both maintain the predictability and disrupt the predictability)?


2222


Summary – many questions

Concepts, typologies and methodologies for measurement

Role and social organization of knowledge

Role of ICTs in the development of services– Gadrey & Gallouj (2002). Productivity, innovation, and knowledge in services. Cheltenham, UK: Edward Elgar.

Global communication tools

Service workforce management

Measuring work, service intensity, and service complexity

Representing and cataloging skills

Effective service automation


2323


Invitation – write new or improve these modules

Toward a Science of Service Systems– Service systems are value co-creation configurations of people,

technology, internal and external service systems connected by value propositions, and shared information (such as language, laws, measures, models)

– Service systems are designed (computer systems)– Service systems evolve (linguistic and social systems)– Service systems have scale-emergent properties (economic systems)

Economics, Business, Industrialization, Engineering, Productivity, Innovation, Industrialization, Methods

Documents

3.3.1 IBM Almaden Services Research © Copyright IBM Corporation 2006. All rights reserved. Version 1.0 1 Services Sciences, Management and Engineering