Establishing SSME as a new academic discipline: SSME Doctoral Workshop
People
FundamentalSkills
TechnologyBusiness ServiceCore
People
FundamentalSkills
TechnologyBusiness ServiceCore
© 2007 IBM Corporation
Some Thoughts about Service
Science Research
Steve Street, IBM (UK) Ltd
Establishing SSME as a new academic discipline: SSME Doctoral Workshop
People
FundamentalSkills
TechnologyBusiness ServiceCore
People
FundamentalSkills
TechnologyBusiness ServiceCore
© 2007 IBM Corporation
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 ….
© 2007 IBM Corporation7
Establishing SSME as a new academic discipline:
SSME Doctoral Workshop Manchester 19 September 2008
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 -
© 2007 IBM Corporation8
Establishing SSME as a new academic discipline:
SSME Doctoral Workshop Manchester 19 September 2008
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
© 2005 IBM Corporation9 Service Research and Innovation | Almaden Research Center © 2007 IBM Corporation
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
© 2005 IBM Corporation10 Service Research and Innovation | Almaden Research Center © 2007 IBM Corporation
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
© 2007 IBM Corporation12
Establishing SSME as a new academic discipline:
SSME Doctoral Workshop Manchester 19 September 2008
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
© 2007 IBM Corporation13
Establishing SSME as a new academic discipline:
SSME Doctoral Workshop Manchester 19 September 2008
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
© 2007 IBM Corporation14
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 ?
© 2007 IBM Corporation15
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
© 2007 IBM Corporation16
Establishing SSME as a new academic discipline:
SSME Doctoral Workshop Manchester 19 September 2008
Content / Key Business Problems
Value– Understanding
– Measuring
– Complex Ecosystems
Risk– Minimising & Managing
Delivery– Optimisation
But these are the
essential focus
areas
© 2007 IBM Corporation17
Establishing SSME as a new academic discipline:
SSME Doctoral Workshop Manchester 19 September 2008
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
Establishing SSME as a new academic discipline:
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
© 2007 IBM Corporation19
Establishing SSME as a new academic discipline:
SSME Doctoral Workshop Manchester 19 September 2008
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 ?
© 2007 IBM Corporation20
Establishing SSME as a new academic discipline:
SSME Doctoral Workshop Manchester 19 September 2008
Summary
Content – Content is High Value Services
Paradigms– Foundations - Paradigms / Theoretical Frameworks
Problems – Key Problems - Value & Risk
Approaches– Interdisciplinary
– Partnership
Establishing SSME as a new academic discipline: SSME Doctoral Workshop
People
FundamentalSkills
TechnologyBusiness ServiceCore
People
FundamentalSkills
TechnologyBusiness ServiceCore
© 2007 IBM Corporation
Thanks for yourquestions and comments!
Steve Street ( [email protected] )