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© 2012 IBM Corporation IBM University Programs worldwide, accelerating regional development (IBM Upw The Future of Cities & Universities: A Service Science Perspective James (“Jim”) C. Spohrer, [email protected] vation Champion and Director IBM UPward versity Programs worldwide, accelerating regional development) shop on Smart Communities – Future of Living and Social Web Silicon Valley, NASA Ames, Mountainview, CA USA, Tue June 19, 2012

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CMU Silicon Valley Workshop, smarter planet, smarter cities, service science, IBM

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Page 1: Future of cities and universities 20120619 v2

© 2012 IBM Corporation

IBM University Programs worldwide, accelerating regional development (IBM Upward)

The Future of Cities & Universities: A Service Science Perspective

Dr. James (“Jim”) C. Spohrer, [email protected] Champion and Director IBM UPward(University Programs worldwide, accelerating regional development)

Workshop on Smart Communities – Future of Living and Social WebCMU Silicon Valley, NASA Ames, Mountainview, CA USA, Tue June 19, 2012

Page 2: Future of cities and universities 20120619 v2

2 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Outline

The Global Opportunity (IBM Perspective)– 1000’s of Smarter Cities Projects– Example: Rio De Janeiro– Analytics, Cloud, Growth Markets, Universities– Individuals & Institutions Learning Together– T-Shaped People & Regional Smart Camp Entrepreneurs

Smarter Planet = Smarter Human-Serving Systems– Smarter Planet

• Instrumented-Interconnected-Intelligent• Internet-of-Things, Cloud Computing, Analytics

– Quality-of-Life (QoL)• Less waste in flows (energy, materials, etc.)• More development of capabilities• Better governance and decision-making

Service Science, Service Systems & Measurement– Service = applying knowledge to benefit others (value-cocreation)– Service science studies human-serving systems (service systems)– Service systems = configure individuals, infrastructure, institutions, information– QoL matters, university & urban innovations matter to business & society– Business Measures = Productivity, Quality, Compliance, Innovation– Societal Measures = Innovativeness, Equity, Sustainability, Resilience

Page 3: Future of cities and universities 20120619 v2

3 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Page 4: Future of cities and universities 20120619 v2

IBM GMU External Relations 20124

Page 5: Future of cities and universities 20120619 v2

IBM GMU External Relations 20125

• For each industry the journey consists of a series of steps along a path of competencies to reach a smarter outcome for organizations

• The power to pull together many sources of data in real time to source actionable insights and optimize clients’ business

• Revenue IBM generated from Analytics solutions grew 16% from 2010

Analytics is enabling clients with trusted and relevant information in REAL TIME

IBM GMU External Relations 20125

Through to 2015, more than 85% of Fortune 500 organizations will fail to exploit ‘big data’ for competitive advantage

--Gartner Predictions 2012

Page 6: Future of cities and universities 20120619 v2

IBM GMU External Relations 20126

Developing capabilities that improve visibility, control and automation of cloud computing services

IBM GMU External Relations 2012

Private & Hybrid CloudsCloud Enablement technologies

Managed Cloud ServicesInfra & platform as a Service

Cloud Business SolutionsSoftware & Business Process as a Service

Commitment to open standards & broad ecosystems

IBMSmartCloud

IBMSmartCloudSolutions

IBMSmartCloudServices

IBMSmartCloudFoundation

Business Process as a ServiceSoftware as a Service

Platform as a Service

Infrastructure as a Service

Page 7: Future of cities and universities 20120619 v2

IBM GMU External Relations 201277

Page 8: Future of cities and universities 20120619 v2

IBM GMU External Relations 20128

Established presence in many Growth Market countries...

8

IndiaSouth Asia

CentralEasternEurope

Middle EastAfrica

SofiaZagrebPrague

BrnoOstravaTallinn

BudapestAlmaty

RigaVilnius

WarsawWroclawKrakowGdansk

KatowicePoznan

BucharestTimisoara

UfaKazan

Rostov-on-DonSamara

PermNovosibirrskKrasnoyarsk

MoscowSt PetersburgEkaterinburg

BelgradeBratislava

Banska BystricaKosice

LjubljanaAnkara

IstanbulIzmire

DnepropetrovskKiev

Tashkent

Australia New Zealand

BrisbaneSydney

AucklandPerth

AdelaideHobart

BallaratMelbourneWellington

ChristchurchLower Hutt

ASEAN

Bandar Seri BegawanJakarta

SurabayaMedan

MakassarManila

CebuChiangmai

BangkokPattayaDaNang

Ho Chi Minh City

GreaterChinaGroup

BeijingHong Kong

TaipeiHefei

XiamenChongqing

ShanghaiBeijingTianjin

FuzhouGuangzhou

ShenzhenNanjingHarbin

ShijiazhuangWuhan

ZhengzouChangsha

ChangchunNanningSuzhou

NanchangShenyang

DalianTaiyuahQingdao

JinanXi’an

ChengduUrumchiKunming

HangzhouNingbo

Korea

SeoulDaejeon Daegu

KwangjuPusan

LatinAmericaBuenos Aires

CordobaRosario

Rio de JaneiroSalvadorFortalez

Belo HorizonteUberlandia

RecifeCuritiba

Porto AlegreCampinas

JoinvilleAnto fogasta

MedellinCali

GuayaquilGuadalajara

MonterreyQueretaro

Lima

ChandigarhDehradun

DelhiGurgaon

NoidaJaipur

LucknowGuwahati

AhmedabadIndore

MumbaiKolkata

PuneBhubaneshwar

HyderabadVizag

BangaloreChennai

CoimbatoreKochiNasik

ColomboDakkar

LuandaQatar

AlexandriaCairoAccra

NairobiCasablanca

Port LouisLagos

KarachiIslamabad

LahoreRiyadhDakar

JohannesburgPretoriaDurban

Cape TownPort ElizabethBloemfontein

Dar es SalaamTunis

Abu DhabiDubai

OuangadougouN’Djamena

KinshasaLibreville

AccraLilongwe

AntananarivoNiamey

SeychellesFreetownKampala

Lusaka

Page 9: Future of cities and universities 20120619 v2

IBM GMU External Relations 20129

Evolving regional talent & skills

IBM GMU External Relations 20129

IBM is making long term investments to develop talent for the growth markets

Collaboration with UniversitiesIBM works with 5,000 universities and 10,000 faculties around the globe. We have joint initiatives and investments with universities in Vietnam, Malaysia, India, Russia, Brazil, Bulgaria, Egypt, China and Africa to encourage the training of skills required.

Government Partnerships

By helping governments to establish new national research facilities, we are helping to create new industries, helping to develop long terms skills curriculums like SSME.

Global Placements & MentoringTransferring knowledge and expertise to the growth markets is critical. One of the ways we do this is to move experts into the market to coach and train local teams.

Page 10: Future of cities and universities 20120619 v2

10 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)10

Our Past, Present, Future: Refining Individuals & Institutions Learning Together

Any Device Learning

TECHNOLOGY IMMERSION

PERSONAL LEARNING PATHS

Student-Centered Processes

KNOWLEDGE SKILLS

Learning Communities

GLOBAL INTEGRATION

Services Specialization

ECONOMIC ALIGNMENT

Systemic View of Education

Intelligent• Aligned Data• Outcomes Insight

Instrumented• Student-centric• Integrated Assessment

Interconnected• Shared Services• Interoperable Processes

ContinuingEducation

HigherEducation

SecondarySchool

PrimarySchool

WorkforceSkills

Individuals Learning Continuum TheEducationalContinuum

Institutio

ns Learn

ing Contin

uum

EconomicSustainability

http://www-935.ibm.com/services/us/gbs/bus/html/education-for-a-smarter-planet.html

Page 11: Future of cities and universities 20120619 v2

11 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)11

T-shaped professionalsdepth & breadth

BREADTH

DE

PT

H

(analytic thinking & problem solving)

Many culturesMany disciplines

Many systems(understanding & communications)

Deep in one d

iscip

line

Deep in one sys

tem

Deep in one cu

lture

Page 12: Future of cities and universities 20120619 v2

12 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

12

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

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

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

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

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

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

Exclusive Networking andMentoring eventExclusive Networking andMentoring event

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

Page 13: Future of cities and universities 20120619 v2

13 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

What is Smarter Planet?3 I’s = Smarter Systems (less waste, better decisions)

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

Page 14: Future of cities and universities 20120619 v2

14 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

What improves Quality-of-Life? Smarter Human-Serving Systems = Service System Innovations

A. Systems that focus on flow of things that humans need (~15%*)1. Transportation & supply chain

2. Water & waste recycling/Climate & Environment

3. Food & products manufacturing

4. Energy & electricity grid/Clean Tech

5. 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)

20/10/10

0/19/0

2/7/42/1/1

7/6/11/1/0

5/17/27

1/0/2

24/24/1

2/20/247/10/3

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)”

Page 15: Future of cities and universities 20120619 v2

© 2012 IBM Corporation

IBM University Programs worldwide, accelerating regional development (IBM Upward)

StakeholderPriorities

Education

Research

Business

Government

StakeholderPriorities

Education

Research

Business

Government

Service Systems

Customer-provider interactions that enable value cocreation

Dynamic configurations of resources: people, technologies, organisations and information

Increasing scale, complexity and connectedness of service systems

B2B, B2C, C2C, B2G, G2C, G2G service networks

Service Systems

Customer-provider interactions that enable value cocreation

Dynamic configurations of resources: people, technologies, organisations and information

Increasing scale, complexity and connectedness of service systems

B2B, B2C, C2C, B2G, G2C, G2G service networks

Service Science

To discover the underlying principles of complex service systems

Systematically create, scale and improve systems

Foundations laid by existingdisciplines

Progress in academic studies and practical tools

Gaps in knowledge and skills

Service Science

To discover the underlying principles of complex service systems

Systematically create, scale and improve systems

Foundations laid by existingdisciplines

Progress in academic studies and practical tools

Gaps in knowledge and skills

Develop programmes & qualifications

Develop programmes & qualifications

Service Innovation

Growth in service GDP and jobs

Service quality & productivity

Environmental friendly & sustainable

Urbanisation &aging population

Globalisation & technology drivers

Opportunities for businesses, governments and individuals

Service Innovation

Growth in service GDP and jobs

Service quality & productivity

Environmental friendly & sustainable

Urbanisation &aging population

Globalisation & technology drivers

Opportunities for businesses, governments and individuals

Skills& Mindset

Skills& Mindset

Knowledge& Tools

Knowledge& Tools

Employment& Collaboration

Employment& Collaboration

Policies & Investment

Policies & Investment

Develop and improve service innovation roadmaps, leading to a doubling of investment in service education and research by 2015

Develop and improve service innovation roadmaps, leading to a doubling of investment in service education and research by 2015

Encourage an interdisciplinary approach

Encourage an interdisciplinary approach

The white paper offers a starting point to -

The white paper offers a starting point to -

Priorities: Succeeding through Service Innovation - A Framework for Progress(http://www.ifm.eng.cam.ac.uk/ssme/)

Source: Workshop and Global Survey of Service Research Leaders (IfM & IBM 2008)

Glossary of definitions, history and outlook of service research, global trends, and ongoing debate

1. Emerging demand 2. Define the domain 3. Vision and gaps 4. Bridge the gaps 5. Call for actions

Page 16: Future of cities and universities 20120619 v2

16 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

US National Academy of Engineering Grand ChallengesA. Systems that focus on flow of things humans need

1. Transportation & Supply Chain

Restore and enhance urban infrastructure

2. Water & Waste/Climate & Green tech

Provide access to clear water

3. Food & Products

Manager nitrogen cycle

4. Energy & Electricity

Make solar energy economical

Provide energy from fusion

Develop carbon sequestration methods

5. Information & Communication Technology

Enhance virtual reality

Secure cyberspace

Reverse engineer the brain

B. Systems that focus on human activity & development6. Buildings & Construction (smart spaces)

Restore and enhance urban infrastructure

7. Retail & Hospitality/Media & Entertainment (tourism)

Enhance virtual reality

8. Banking & Finance/Business & Consulting

9. Healthcare & Family Life

Advance health informatics

Engineer better medicines

Reverse engineer the brain

10. Education & Work Life/Jobs & Entrepreneurship

Advance personalized learning

Engineer the tools of scientific discovery

C. Systems that focus on human governance11. City & Security

Restore and improve urban infrastructure

Secure cyberspace

Prevent nuclear terror

12. State/Region & Development

13. Nation & Rights

Page 17: Future of cities and universities 20120619 v2

17 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

California Human Development Report 2011:From meaning-of-life to quality-of-life…. http://w

ww

.measureofam

erica.org/docs/AP

ortraitOfC

A.pdf

Page 18: Future of cities and universities 20120619 v2

18 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Imagining quality-of-life innovations…

Page 19: Future of cities and universities 20120619 v2

19 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Resiliency: Capability to rebuild (and recycle) rapidly

China Broad Group:30 Stories in 15 Days

Page 20: Future of cities and universities 20120619 v2

20 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Manufacturing as a local recycling & assembly service

Ryan Chin:Urban Mobility

Page 21: Future of cities and universities 20120619 v2

21 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Self-driving cars

Steve Mahan:Test “Driver”

Page 22: Future of cities and universities 20120619 v2

22 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

City challenge: buildings and transportation

Ryan Chin:Smart Cities

Page 23: Future of cities and universities 20120619 v2

23 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Cities: land-population-energy-carbon

Carlo Ratti:Senseable Cities

Page 24: Future of cities and universities 20120619 v2

24 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Universities key to regions

Three Streams

– Transfer knowledge

– Create knowledge

– Apply knowledgeto co-create value

Nested Holistic 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 Stream is about U-BEEs = University-Based Entrepreneurial

Ecosystems

Page 25: Future of cities and universities 20120619 v2

25 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Regional Competitiveness and U-BEEs: Where imagined possible worlds become observable real worldshttp://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, City Within City

“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.”

InnovationsUniversities/RegionsCalculus (Cambridge/UK)Physics (Cambridge/UK)Computer Science (Columbia/NY)Microsoft (Harvard/WA)Yahoo (Stanford/CA)Google (Stanford/CA)Facebook (Harvard/CA)

Page 26: Future of cities and universities 20120619 v2

26 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Nations compete and cooperate: Universities important% WW GDP and % WW Top-500-Universities (2009 Data)

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

Page 27: Future of cities and universities 20120619 v2

27 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Four measures

Innovativeness

Equity

Sustainability

Resiliency

Page 28: Future of cities and universities 20120619 v2

28 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

A Framework for Global Civil Society

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.

– John Sexton, President NYU

Page 29: Future of cities and universities 20120619 v2

29 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Visit IBM Almaden Research Center, San Jose, CA

Upcoming Conferences– July 2012

• ISSS San Jose• HSSE San Francisco

More Information– Blog

• www.service-science.info– Twitter

• @JimSpohrer– Presentations

• www.slideshare.net/spohrer– Email

[email protected]

Page 30: Future of cities and universities 20120619 v2

30 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Thank-You! Questions?

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

Page 31: Future of cities and universities 20120619 v2

31 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

What is service science? A service system? The ABC’s?

Economics & Law

Design/ Cognitive Science Systems

Engineering

OperationsComputer Science/

Artificial Intelligence

Marketing

“a service system is ahuman-made system to improve provider-customer interactionsand value-cocreation outcomes,

by dynamically configuring resourceaccess via value propositions,

most often studied by many disciplines,one piece at a time.”

“service science isthe transdisciplinary study of

service systems &value-cocreation”

The ABC’s:The provider (A)

and a customer (B)transform a target (C)

Page 32: Future of cities and universities 20120619 v2

32 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Systems-Disciplines Framework: Depth & BreadthSystems that focus on flows of things Systems that governSystems that support people’s activities

transportation & supply chain water &

waste

food &products

energy & electricity

building & construction

healthcare& family

retail &hospitality banking

& finance

ICT &cloud

education &work

citysecure

statescale

nationlaws

social sciences

behavioral sciences

management sciences

political sciences

learning sciences

cognitive sciences

system sciences

information sciences

organization sciences

decision sciences

run professions

transform professions

innovate professions

e.g., econ & law

e.g., marketing

e.g., operations

e.g., public policy

e.g., game theory and strategy

e.g., psychology

e.g., industrial eng.

e.g., computer sci

e.g., knowledge mgmt

e.g., stats & design

e.g., knowledge worker

e.g., consultant

e.g., entrepreneur

stake

holders Customer

Provider

Authority

Competitors

resources

People

Technology

Information

Organizations

change History

(Data Analytics)

Future(Roadmap)

value

Run

Transform(Copy)

Innovate(Invent)

Observe Stakeholders (As-Is)

Observe Resource Access (As-Is)

Imagine Possibilities (Has-Been & Might-Become)

Realize Value (To-Be)

disciplines

systems

Page 33: Future of cities and universities 20120619 v2

33 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

IBM operates in 170 countries around the globe

IBM has 426,000 employees worldwide

2011 Financials Revenue - $ 106.9B Net Income - $ 15.9B EPS - $ 13.44 Net Cash - $16.6B

22% of IBM’s revenue in Growth Market countries; growing at 11% in 2011

Number 1 in patent generation for 19 consecutive years ; 6,180 US patents awarded in 2011

More than 40% of IBM’s workforce conducts business away from an office

5 Nobel Laureates

9 time winner of the President’s National Medal of Technology & Innovation - latest award for Blue Gene Supercomputer

“Let’s Build a Smarter Planet"

The Smartest Machine On Earth

100 Years of Business & Innovation in 2011

IBM’s Leadership Changes

55% of IBM’s Workforce is New to the company in the last 5 years

Page 34: Future of cities and universities 20120619 v2

34 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Up-SkillCycle

University-Region1University-Region1

University-Region2University-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 intoIBMer on Campus role(help create graduateswith Smarter-Planet skills,help create Smarter Planetoriented new ventures;Refresh skills

= Graduates withSmarter Planet skills

IBMIBM

Page 35: Future of cities and universities 20120619 v2

35 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Sustainability/Resilience & Innovation: Local-p global-i supply chains

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)

Page 36: Future of cities and universities 20120619 v2

36 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Installation DeploymentIrruption

The Industrial Revolution

Age of Steam and Railways

Age of Steel, Electricityand Heavy EngineeringAge of Oil, Automobilesand Mass ProductionAge of Information and Telecommunications

Frenzy Synergy Maturity

Panic1797

Depression

1893

Crash

1929

Credit Crisis 2008

Coming period ofInstitutional Adjustment and Production Capital

1

2

3

4

5

Panic1847

1771

1829

1875

1908

1971

1873

1920

1974

1829

Crash

•Formation of Mfg. industry

•Repeal of Corn Laws opening trade

•Standards on gauge, time•Catalog sales companies •Economies of scale

•Urban development•Support for interventionism

•Build-out of Interstate highways

•IMF, World Bank, BIS

Source: Carlota Perez, Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages; (Edward Elar Publishers, 2003).

~250 years of infrastructure transformations

Page 37: Future of cities and universities 20120619 v2

37 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

~100 years of US job transformations

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

Page 38: Future of cities and universities 20120619 v2

38 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

We need better frameworks, theories, and models of…

Four I’s– Infrastructure

– Individuals

– Institutions

– Information

Four Measures– Innovativeness

– Equity

– Sustainability

– Resiliency

Societal Infrastructure(Technologies & Environment)

Individuals(Skills)

Institutions(Rules, Jobs)

Cultural Information(Quality-of-Life Measures)

Page 39: Future of cities and universities 20120619 v2

39 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Service systems entities learn to apply knowledge

L

LearningTo Apply Knowledge

Exploitation Exploration

Run Transform Innovate

Operations

Maintenance

Insurance

Incremental

Radical

Super-Radical

Internal

External

Interaction

Copy It

Invent ItDo It

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.

Page 40: Future of cities and universities 20120619 v2

40 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Service Science: Conceptual Framework

Resources: People, Organizations, Technology, Shared Information Resources: Individuals, Institutions, Infrastructure, Information Stakeholders: Customers, Providers, Authorities, Competitors Measures: Quality, Productivity, Compliance, Sustainable Innovation Access Rights: Own, Lease, Shared, Privileged

Ecology(Populations & Diversity)

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.

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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 and

stored 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)

60

transistor(routine

cognitive work)

Where is the “Real Science” - wonders to appreciate?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)

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Measuring Impact

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)

– 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)

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43 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Who I am

Director IBM Global University Programs since 2009– Global team works with 5000 university world wide (http://www.ibm.com/university)

– Research (Awards), Readiness (Skills), Recruiting, Revenue, Responsibility

– Transform “IBM on Campus” brand awareness (“Smarter Planet/Smarter Cities”)

– Create “Urban Service System” Research Centers & U-BEEs Founding Director of IBM's first Service Research group from 2003-2009

– Almaden Research Center, San Jose, CA

– 10x ROI with four IBM outstanding and eleven accomplishment awards

– Improve existing offerings, create new, portfolio synergies, partners, patents, publications

– 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)

– B.S. in Physics from MIT (70’s)

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Eleven levels of systems

Level 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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Societal resiliency includes all levels

Matryoska dolls:Origin Japanese

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What is the future? We can imagine many possibilities…

Kurzweilai.net