2006/10/06 08:30 Nick Donofrio

2006/10/06 08:30 Nick Donofrio, IBM, SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Nick Donofrio, Executive Vice-President, Innovation and Technology, IBM Corporation

(Slide 1)

People move to where the opportunities are

Network ubiquity

Open standards

New business designs

(Slide 2: Innovation Defined)

National Innovation Initiative, a few years ago

Push doesn't work, pull does

Global Innovation Outlook: innovation as product and services, processes, and business models

(Slide: Why Innovation Matters)

Discussion with president of Vietnam

(Slide: The Changing Nature of Innovation)

Open, collaborative, multi-disciplinary, global

(Slide: Global Innovation Outlook)

IBM as largest patent holder, but it's not enough

Outlook for opportunities for innovation

(Slide: Global Innovation Outlook, Key Findings)

Are putting the patent applications online, so don't clog up the patent offices

(Slide: Commission on the Future of Higher Education)

At least got the discussion on higher education

Was only one of three industry people there:  industry consumes 75% of the universities' output

(Slide: The Commission Report)

Report title: "A Test of Leadership"

• (See: http://www.ed.gov/about/bdscomm/list/hiedfuture/pre-pub-report-highlights.html )

75% of the economies have GDP that are services-led

Have been putting money into physical sciences and life sciences, as we always have

• Value is migrating

(Slide: The 21st Century Demands Uniquely-Skilled People)

A few years ago, universities said: got it, take MBAs and put them through business schools

• Not sure that that's it

(Slide: Emergence of Services Science)

Industry will do other things, in addition to academics

(Slide: Investment in Services Innovation)

Study everything, or segment?

(Slide)

Remember, 50,000 people needed at IBM over the next 10 years

It could be a million people in industry

(Slide: Points to Consider)

Came to IBM when there was innovation: transistor to integrated circuits

More transistors on the earth now, than there are grains of rice

2006/10/06 09:10 Richard C. Larson, "Holistic Trinity of Services Sciences: Management, Social and Engineering Sciences"

2006/10/06 09:10 Richard C. Larson,  "Holistic Trinity of Services Sciences: Management, Social and Engineering Sciences", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time duringt he meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Dick Larson, Engineering Systems Division, Massachusetts Institute of Technology

Operations management

• High-rise buildings, elevator delays
• Russ Ackoff sent a student
• Typically, more elevator shafts
• Problem isn't the delay in elevators, it's the complaints
• Entertain them, instead, put in mirrors
• Bringing ideas into engineering analysis
• Not one theorem, but problem solved

ESD: at the intersection of management, engineering, social sciences

• New center: Center for Engineering Systems Fundamentals
• Work on real problems
• Different on service systems

1. U.S. Presidential Elections: Queue Wait Equity

• Voting is participation in a government-offered service
• True also in Zimbabwe, Afghan, Ohio
• If someone balks and leaves, have a stealth disenfranchisement
• Looking for funding, using the 2008 U.S. presidential election as data

Article in Christian Science Monitor: Heroic acts

2. Pandemic Influenza

• Killed Americans more than any war
• Social distancing and hygenic steps analysis
• Working with STEM, open source software
• For first 6 months, only control: won't have any vaccine
• Then little

Boston Herald: National ill-prepared flu

• Then published a year late in Boston Globe

3. Hurricane Preparedness and Response

• With Ph.D. student Michael Metzger
• Social science: the boy that cried wolf syndrome, if evaculation called that wasn't required

4. LINC = Learning International Networks Consortim

• Students now getting education through computer and telecommunications technologies
• Focus on helping developing countries get quality education in underserved communities

Educational implications

Educating doctoral students at the intersection of management, engineering and social sciences

[Questions]

Design for Ph.D. students?

• Silos in schools of engineering, first course born in 1861; second course born in 1880
• Experiment across faculties
• 5-years old, Ph.D. program is 3 years old

Publications by young faculty, when journals looking for depth

• Untenured junior faculty, recently tenured and long tenured
• Let the research what ever is comfortable

How to bring real problems into the educational system

• Have spun off many companies, and professors have consulting companies
• Practicum includes summer jobs

Projects with graduate courses or undergraduate?

• Not primarily graduate
• However, Dan Hastings has moved from graduate programs to undergrad, sympathetic

2006/10/06 09:35 Steven G. Allen, "The IBM-SSME-NC State Fit"

2006/10/06 09:35 Steven G. Allen,  North Carolina State University, "The IBM-SSME-NC State Fit", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Introduction by Racine Mitchell-St. Clair

Steven G. Allen,  North Carolina State University, "The IBM-SSME-NC State Fit"

Wall Street Journal Article: "Majoring in IBM"

Client: spent a lot of money acquiring customers, but didn't spend anything on maintaining them

• Organization was functional
• Government funded
• It's universities

New entrants: private universities

Convenience matters

What to discuss how NC State handles this competitive environment

What makes the IBM - NC State partnership work?

IBM hires more graduates from NC State, than any other college in the U.S.

• Cooperative research
• Physical proximity is 15 minutes from campus, enables dialogue

NC State has had experience with interdisciplinary education, e.g. now starting up bioinformatics

Started quickly: developed from existing computer networking and MBA

Developed and delivered 5 new courses

• IT services systesm
• Networking systems
• plus courses from existing tracks: people management, processes, strategy -- deeper than average engineering course

MBA students could have a relationship management focus, or a service innovation focus

Use projects in classroom as pedagogy

MS in computer networking

Center for Innovation Research

(Introduction of Yiannis Viniotis)

Key research areas:

• Network services
• IT services
• Web services (as an intersection of the other two)

e.g. upgrades in frequency programs: if not full with gold, want to fill with silvers

[Questions]

Students?

• Didn't start promotion until February
• Trying to put together with other curriculum: supply chain, biotech
• Close to technology companies, and competing against Duke in marketing and finance
• Had a decline in part-time enrollment this fall, because Phoenix hit the area this year
• This is something that Phoenix can't do: they'll beat us on price, and on delivery mechanisms

[9:55 break]

2006/10/06 10:35 Government Panel

2006/10/06 10:35 Government Panel, SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Introduction by Susan Tuttle (Moderator), IBM,  Director, Worldwide Innovation Policy

Governments are important

• Jésus Villasante, Department Head, Software Technologies and Distributed Systems Unit Directorate General of the Information Society, European Commission 
• William B. Bonvillian, Director, Washington Office, Massachusetts Institute of Technology
• Debasish Dutta, Ph.D., Advisor, Office of the Assistant Director, Education and Human Resources, NSF 
• Leandro S. Jesus, Professor, Federal University of Rio de Janeiro 

"Software and Services Research in the European Union" 

• [Slides are available at almaden.ibm.com]

(actually projects supported by the European Commission)

(Jésus Villasante, European Commission)

European Commission on Information Society and Media

• Regulation
• Research
• Policy

Trends:

• Interest in services
• Software was packages, now services
• Interest in public on reliability and dependability, impact on buisness
• Will influence society in general

Present framework (to 2007), funding 46 projects, $275M Euros

Research topics:

• Services
• Complexity
• Software engineering
• Open source

Expect for 2007-2013, will adopt Framework Programme VII

Horizontal roadblocks:

• Network and service infrastructures
• Cognitive systems, robitics and interacitons
• Components, subsystems and embeeded systesm

Challenge 1:

• Network of the future
• Security
• Media
• Services

Looking for more industry involvement, looking for commitment to NESSI

"Government Research Support for the New Engineering"

• [Slides are available at almaden.ibm.com]

William B. Bonvillian, Director, Washington Office, Massachusetts Institute of Technology

Two problems:

• Where would services science fit in the federal R&D portfolio?
• Can't just ask for money, need a research task agenda

Services is both hard and soft

• Pending competitiveness policy in Congress includes services
• Is this social science? Little research funding there, and poor fit
• Is it educational research? So informed by research, that can't just think about curriculum
• Is it traditional science? Silos, e.g. biolgoy
• Probably need to look at this as an engineering problem, then can go to DoD or NSF

Have to walk in the door with serious research tasks in hand

• One way: case studies, learning by doing
• Some deep fundamental issues in learning by doing, and engineering has a history of doing this, integrating new fields
• Could we embrace services science as a field that engineering could look at?
• Key part of complex systems

If engineering integrates (and as an applied science, it has to), what is the research task, what foundational approaches?

One: complexity theory

• Complex adaptive systems, where no master agent, and agents act in parallel, and rearrange building blocks
• Agents learn and can evolve
• Work between engineering's tradition of rational systems, and evolutionary systems

Two: engineering has missed some fields, e.g. when Japan launched lean production

• Need to fill the gaps
• Engineering Systems Division at MIT is starting to tackle complex systems
• They transport and exchange not only materials, but information
• In a globalized economy, will be big gaps and holes, may need a complex systems toolset
• New economic imperative, can't just graduate engineers as in the past, need to join complex systems, products/services, social

Three: Integration as a toolset

• Lester/Piore: Analysis vs. interpretation
• Analysis assumes can see all of the pieces, which isn't true in complex systems, so need interpretation
• Steve Jobs: creativity is just connecting things: process of experience, learning and connecting experiences
• Need for engineering to integrate with social sciences

Four: Economics has begun to include complex systems

• Neo-classical economics takes a physics attitude
• But also need to understand dynamic systems
• Economies as complex ecosystems

Summary:

• Engineering as an applied since may be a niche for services science, and has history
• New fundamentals

Debasish Dutta

Debasish Dutta, Ph.D., Advisor, Office of the Assistant Director, Education and Human Resources, NSF 

No slides

Now back at U. Michigan, having returned from NSF

NSF is interested in integrated streams

NSF represents only 4% of the R&D funding by the government

• It is 50% of non-life science research funding at universities

The foundation of NSF is the community

• It's developed in partnership between universities and industry
• Peer-reviewed agency

Important to NSF:

• Interdisciplinary
• Integration of curriculum and research
• Global partnerships
• Broadening participation, in under-represented minorities

Commitment, due to innovation policy, is to double NSF's budget over the next 10 years

• Will fund 500 additional research grants

Federal University of Rio de Janeiro

• [Slides are available at almaden.ibm.com]

Leandro S. Jesus, Professor, Federal University of Rio de Janeiro

Brasil is competing in a worldwide arena

Brazilian Industrial, Technological and Foreign Trade Policy

Questions

From government fund, improving the quality in user-friendly interfaces, for services

• Standards work
• EU view is in verticals
• Interoperability

2006/10/06 11:40 Roland Rust, "SSME -- Let's Not Forget About Customers and Revenue"

2006/10/06 11:40 Roland Rust, "SSME -- Let's Not Forget About Customers and Revenue", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-timeduring the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Roland Rust, who usually runs the services conferences

• University of Maryland
• Also started Journal of Services Research

[Roland Rust]

Call for papers for Frontiers of Services Conference

Cost reduction vs. revenue expansion

• Profit = revenues - costs
• Cost reduction = productivity = efficiency = inwards focus (engineering, systems, operations view)
• Revenue expansion = customer attraction and retention = customer choice = outward focus (marketing, psychology, economics, sociology, anthropology)

SSME is under-estimating the revenue side, which is a problem

Liebler and Sterman, Journal of Management Research:  too much attention to internal can lead to a downward spiral

Another issue:  Tradeoffs different from product manufacturing

• Manufacturing:  productivity is usually correlated with satisfaction
• Because service is more labour intensive, there's more of a trade-off between productivity and customer satisfaction

Strong emphasis on cost and revenues is less profitable

• Need to think more about driving revenues
• This is a people thing
• How do we attract them, retain them

How do we get ROI from revenue expansion?

• Companies mostly think about ROI from cost savings
• ROI through revenue increases is a more complicated chain of effects:  need to model changes in attitude, etc.
• Have to think about customer lifetime value
• Sum that up, and it becomes the customer equity (Rust, Lemon and Zeithaml 2004)
• Soft measures matter as much as hard measures

What should this imply in terms of grants and research funding?

• NSF are really going through hard sciences and engineering, maintaining status quo
• If have revenue-side funding, that's support for marketing and social sciences

Conclusion:

• SSME funding is too focused on the cost side
• Need to increase attention to revenue expansion
• Can only reduce cost to zero, but can increase revenues to infinity

SSME should be a big tent

[Questions]

Cake and eat it too?

• Have to do both sides: improving efficiency is good, but need both sides

Political reality in Washington, where definition of science is limited

Big tent?

Supply chain problem: over-investing in the wrong part of the supply chain, get a problem

Relative emphasis?

• Companies with revenue emphasis are most successful
• Companies with a dual emphasis usually can't pull it off

2006/10/06 12:00 Daniel Berg, "Services Research and Education"

2006/10/06 12:00 Daniel Berg, "Services Research and Education", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Daniel Berg, RPI

Wrote a paper with James Tien, on which this talk is based

Department name has changed to Complex Engineering Systems

Small school, 400 faculty

• Problem: had a few faculty, all in different parts of institutes
• Faculty made a play to get some scale by joining people together
• Were SME before we knew it, with a heavy focus on manufacturing because of the time
• Still working on the convergence from manufacturing and systems

Came from robotics institute, Westinghouse before that

• Went to U. Penn., between engineering and Wharton, funded as a Citibank fellow
• Most funding comes from industry

Part of research purpose, focus on intellectual property

Educational issues

Masters, service sector 1985 29%, and 2005 now 69%

Master's program, take what you got and build on that, built three classes: one was service information systems

[Questions]

Any measures from hiring companies, are students less effective, and in what area?

• RPI is ranked modestly in the academic community, but disproportionately high by hiring (#7)
• Understanding of basic fundamentals

Size of MS degree program

• Created 3 years ago, came into effect 2 years ago
• In New York State, have a Regents system, and regent needs to approve every program
• Haven't been approved yet, it's illegal
• We develop Ph.D. students, had a student in service design 15 years ago, wouldn't have called it a services degree

2006/10/06 13:35 Carl Schramm, "The Entrepreneurial Imperative"

2006/10/06 13:35 Carl Schramm, "The Entrepreneurial Imperative", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Presentation slides, book cover, and an article are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Intro by Jim Spohrer

Kauffman Foundation - Entrepreneurship

A lot of service innovations come from small companies

Schramm is working with Baumol, who in the 1960s said that services are stagnant, has now changed his mind

[Carl Schramm]

Transformation comes from the outside

Post-war conception of business:

• Big business
• Big government
• Unions

Assume economics works like engineering

• But economics doesn't work like, move when have failures

John Kenneth Galbraith: big firms will be responsible for ensuring prosperity

• So did Drucker
• What about entrepreneurs?
• Last person to write about entrepreneurs was Schumpeter in 1938

Economist studied monetarism or Keynes, or macro

• No one studies when firms started
• Baumol resurrected interest
• American Economic Association only started studying entrepreneurism 4 months ago

Terrible economic times in 1970s

Almost did error in bureaucratic policy to follow Japan, John Kenneth Galbraith in Washington, doing centralized planning

• Instead, did restructuring
• By accident, intellectual property law
• Portable pensions
• Pension funds investing in startup companies

Demise of bureaucratic entrepreneurism, birth of entrepreneurial capitalism

• Kids see education as starting businesses
• Embedding into culture at the bachelor's level

Couldn't have seen the shift in reading the past decades of Harvard Business Review

Gary Becker wins an essay in the 1980s for the 1972 article saying that human capital is more important than financial capital

• This is how slow economists are in leaving the triangle of big business, government and unions

See mess:

From 70% union to 12% union, now no one to bargain with

• 70% of jobs are created by companies less than 5 years old
• When Schramm graduated, would have 4 employers in life
• For son, will have 4 employers before 30, one of whom will be less than 5 years old or a self-employer

New actor:

• Start-up firms:  totally discounted in the 1980s

Keynes: pay unemployment to people until they can get back on their feet

• In the last recession, more people willing to take the risk to start their own businesses
• Companies like IBM talking about openness

Government is playing a lesser role, but has played a central role in NIH and DARPA

Universities aren't all that central

• Had Ford Foundation pushing him through
• Could make money going to graduate school
• Over-supply of Ph.D.s, who could then start businesses

Compare to Carlotta Perez: continuous innovation

• In Europe and United States, taught Dark Age, then Enlightment, dark era, then Industrial Revolution, then electricity, depression, jet age
• View that we're in the shock of 1999, when we did stupid stuff
• A lot of people lost money, but that's the way that capitalism works

What does a firm look like?

• Used to have plants
• Microsoft employees have never been in an IBM-type environment
• 75% of Fortune 500 isn't in corporate entity form
• It's people, technology and how the financial markets work

New institutional forms:

• Foundations
• Venture capital
• Business schools
• Suggest that research is the new institutional forms

What roles do universities play?

• Great conceit of universities: they live in the future
• Are universities going to move fast enough to absorb this?
• Reports now that more is spent in basic research in China than in the U.S.

Why did economists miss the switch? Why haven't universities responded?  Why does invention happen outside of engineering?

• Article: The Broken M.B.A.
• Don't count out America

Professors of business don't have an understanding of the new economy

• ATT went, but no news in America
• In Europe, it would have been backed by a family

We teach inductive and deductive

• American way: abductive reasoning
• Permits freedom to individuals: gives them money, lets them make mistakes, lets them fail and try again

This event may be iconic in a change in our business culture, intellectual culture, democratic culture

• This is unique to the United States

[Questions]

In a few years, a few trillion dollars in wealth in foundations

• A foundation is lot like a university, an invented creation of capitalism
• Invented by great entrepreneurs who made so much, they decided to give much of it back
• This doesn't happen in Europe, where they create dynasties and pass it back
• In the U.S., children don't get more the $10 million, but the rest of the $4 billion goes
• Will ruin kids by not letting them learn
• They people are encouraging democratic capitalism
• Foundations are freer than other institutions, no revenue, no customers, only think about how to propel society forward
• With economic growth will come growth of economic welfare

Spreading entrepreneurial thinking across universities, and maybe business schools

• Mostly adjunct faculty
• About 86% of people in Inc.'s fastest growing businesses are all university graduates, and engineers in particular
• Engineers are practical, they're fooling around
• They're doing what entrepreneurs do
• Then thought: how about spreading the money across the whole university, entrepreneurism everywhere
• Got 26 replies, asked for responses within 4 months, to give $5M
• One example: Washington U.:  a dormitory as a community of entrepreneurism where entrepreneurs and families live in, with a mall in the center of the campus where they need to fight to get space
  • Have legitimized entrepreneurism
• Theory of change: Washington U. is one of the most endowed universities, $6 billion, yet offered them $3.5M with matching from the state
• Have 25 to 30 schools like this

2006/10/06 14:25 Bill Hefley

2006/10/06 14:25 Bill Hefley, Carnegie Mellon University, SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Intro by Jim Spohrer

Director of ISQU at Carnegie-Mellon University

One of the first maturity models for outsourcing, not just from the supplier side, but also the client's side

Carnegie Melon University

[Bill Hefley]

IS program in university?

• How about one in the humanities college?
• Only Carnegie Mellon, and a Belgian University

Have lots of Master's that fit in with SSME

Want to talk about legitimizing what we're doing

• Made lots of transitions between departments
• Would like to make it easier for student that for me
• Member of the American Psychologist Association, have a section on Organization Psychology, and they won't let me be a member

Dealing with interdisciplinary, but also multi-disciplinary, e.g. dealing with an individual consumers

• Not just what IBM means, where large organizations

Have to have grounding within the discipline, as well as working across disciplines

Where do we publish?

What are the things we can do

[Questions]

• Don't think should convert everyone, still need specialists, but do need people that can bridge between the tents

2006/10/06 14:40 Gianmario Motta, "Engineering of Digital Services"

2006/10/06 14:40 Gianmario Motta, "Engineering of Digital Services", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Gianmario Motta, University of Pavia

Pavia is near Milan, founded in 1361

• Had Volta as a professor
• 15,000 students, 13,000 in engineering

Problem: number of university students were dropping

• Decided to make a new major where students understood almost nothing, but almost everything

Understanding coming from a processes perspective

• Master's level, people coming from information technology or industrial engineering

Supply chain isn't a lot different from giving services in a telecommunications environment

Case studies, e.g. SCOR supply chain reference model

Key points:

• Normative application portfolio
• Two ways: can create a process, or document a process that already exists

Syllabus is similar to an engineering class

Uniquenesss:

• Hands-on: more labs than students
• Making engineers, people who can design
• Business awareness:  not strategists, understand needs

2006/10/06 14:55 John Murray, "A Research Based Educational Initiative: The Institute for International Services Innovation"

2006/10/06 14:55 John Murray, "A Research Based Educational Initiative: The Institute for International Services Innovation", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

John Murray, University of Dublin, Trinity College, "A Research Based Educational Intiative: The Institute for International Services Innovation"

May risk putting together old content

• Taylorism
• May want to be ahistorical

TCD 1582: undergraduate degree, with a moderatorship if honours

• Should be able to moderate specialists in their fields
• Should look to past, and replicate a few successes

Second industrial revolution: 1880-1890s, telegraphy, steel, automobiles

• Becames the canon of management literature, written by Chandler
• Perhaps another significant tipping point at work

Jim Quinn:  Study of wholesaling systems in Europe

• Evolutionary view:  most is global, mostly innovations in format and business models, across Europe and into the United States

Approach has to be to start with knowledge creation rather than teaching

• Dilemma: operating on different time scales
• Was in Copenhagen, working with TetraPak
• Is manufacturing becoming a service industry?
• Time scales, they want answers now

Case study inductive (which later becomes deductive), or action research (which isn't as common, but help people learn)

Ireland:

• One of most global countries
• Around 2000, export of products flattened out, and services grew
• Only 4 million people in Ireland, and per capita figures are misleading, but services is #13 in the world

Found Paul Maglio, phoned him, while Paul drove in his car

• If also had been driving in Ireland, would have been in the ocean

Origins of the institute is recognition of the service sector growth

• Sister institute studies globalization
• Irish Development Authority
• SSME, IBM Almaden and IBM Ireland

Model: research --> dissemination --> practice

• Research: Short term research, action research, to longitudinal research
• Dissemination: Master's, executive development
• Practice: Evolution of clusters, extent to which innovation in services is geographically sticky

Not just services, but it's multi-level, multi-disciplinary, multi-modal, but ONLY international services

See Ireland as a laboratory

Interested in talking with others who are doing similar work

2006/10/06 15:20 Bob Glushko, "Services Science at Berkeley"

2006/10/06 15:20 Bob Glushko, "Services Science at Berkeley", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Bob Glushko, University of California, Berkeley

Not an academic, but an entrepreneur

• Dismayed, expected to see 20 people
• Don't know how to frame this as intellectual determinism
• Stumbling through

History: a lot of us were services science, and didn't know it

• Came from a background of cognitive science
• Started up company, one on helping desktop publishing
• Web put out of business, so tried to capture the first B2B marketplace forums
• Wanted to retire
• Came to Berkeley, working in the School of Information, library school after its mercy killing, headed by Hal Varian, who brought in law professors and economists
• IBM invited Bob to a workshop

With nudging:  IBM gave a faculty award, so would give a talk once in a while

• Jim bought 100 copies of document engineering
• Came onto Berkeley as a director
• First course developed, offered this semester

Try to think about services science really meant, as opposed to old wine in new bottles

• A discipline, as opposed to a curriculum
• If you think about disciplines, want the program to be what you're go at
• What would a discipline look like?

Let's not start from what we got, what are the key issues?

• Services science from people at the tent raising isn't the same as who we would invite
• Don't care if first to market, want to be right to market
• Sat around the table for 6 months, asked what the important issues would be, and then what would help to answer them

Examples:

• Change over time?
• How does it innovate?
• How do firms learn, and teach?
• Where does services come from, and how do they evolve?
• Can we plug in: core competencies (management), trust (sociologists), terms and conditions (law) ...

What can we do? Let's do it.

From June, spent time developing "An Information and Services Economy" course look like?

• Would read everything from Adam Smith to Karl Marx to Chandler to Prahalad
• Decided to try to read everything
• Reading Palmisano paper on the Global Organization

Teaching a course in web-based services (not web services), how can the web be used to deliver stuff

• e.g. http quality of service

Redesign Document Engineering course

Service Innovation, taught by Hank Chesbrough

Have more adjuncts than faculty teaching the course

• e.g. information systems clinic, hired someone from IBM teaching professional consulting skills: business process analysis, document modelling

Services Science lecture series

Already had two CEOs of Silicon Valley startups

Has been exciting

Need to pull it together in the class, because guest lectures didn't do that

Variable depth: can read Palmisano, but can't read Oliver Williamson

Chumming: draw in CEO lectures for one hour per week, then fill the rest

Skeptics: can't get tenure in services science

Others: I support this, where do I get the money?

[Questions]

From marketing, tend to focus everything on customers.  What do the customers say about value, and co-creation?

• There are more slides

2006/10/06 16:10 Avishai Mandelbaum, "Service Engineering: Data-Based Research and Teaching in Support of Service Management"

2006/10/06 16:10 Avishai Mandelbaum, "Service Engineering: Data-Based Research and Teaching in Support of Service Management", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Avishai Mandelbaum, Technion, Israel, "Service Engineering: Data-Based Research and Teaching in Suppot of Service Management"

Started 13 years ago, moving from Stanford to Israel

• Background: math, networks, queuing theory
• Started with a little consulting, research
• Started a research seminar
• Supplemented with data
• Compulsory course in industrial engineering

Appreciate simple, useful models

• Simple model might still require deep analysis

With Wharton, started a repository for call centers:  Models for Call Center Analysis

• 2.5 years, 220M calls handled by a machine, 40M call handled by a person

Find going back to basic research paradigm (as in physics, biology): measure, model, experiment, validate, refine

Yield scientifically-based design principles

Will focus on one model for this talk: staffing problem

• 3 to 6 billion people answering phones
• Staffing based on an Erlang-C model (M/M/n), 1913
• Another model: Palm/Erlang-A, simple but not too simple

2006/10/06 16:35 Val Rahmani, "Injecting Science into the Art of Services: A Perspective from IBM Global Technology Services"

2006/10/06 16:35 Val Rahmani, "Injecting Science into the Art of Services: A Perspective from IBM Global Technology Services", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Val Rahmani, General Manager, Infrastructure Management Services, "Injecting Science into the Art of Services: A Perspective from IBM Global Technology Services" 

Have been in IBM hardware, moved to services in March

Could use help in research

Have come from a product mentality

IBM has products and services, but how do we put them together

• Services are 50% of revenue, but less than 50% of profits

CEO Study, with CIO implications

• Innovation starts at the top
• Innovation isn't just products and services, it's business model innovation
• Collaboration is more important, need to be both internal and external
• Gap between 80% knowing what we need to do, and 20% saying that the they know how to do it

Partners and customers edge out employees for ideas

• R&D is #5

IT services market is changing

• Used to think we could sell standalone services, now want integrated solutions
  • Customer doesn't want to be beta tester, integration by FedEx (meaning assembled when it arrives)
• Not full-scope outsourncing, now want selective out-tasking (e.g. call centre, payroll, security, etc.) so that I can see real value and doesn't lock me to one supplier
• From customized offerings (where they pay extra) to standardized services
  • e.g. 17-1/2 windows cost $2500, 18" windows cost $200
• Local labour goes to global delivery (which may mean make whole services into a process)
• Labour-based models, moved to asset-based models (meaning anything repeatable and scalable, e.g. methods, software)

GTS Strategy:

• Globalize: traditionally, have had local teams working with person power
  • When make them assets, the people will have less power
• Simplify: Don't have the skills, make a simple set of steamlined portfolio
• Standardize
• Automate: If can't standardize, automate
• Have put some work in India right beside Research Labs

Can services be more like products?  Business Week Online

Ten Service Product Lines cover all of our IT services:

• IT Strategy and Architecture: middle-skilled consultant with better tools
• ....

Most interesting places for security services

• Biggest cost in security is people, particularly doing stuff that could be automated

Similar approach in server services

[Questions]

Missing link is not in innovation, but whether it's easy to use?

• Yes

Don't automate me, informate me.

Privacy.  Have non-technologists involved in planning

2006/10/06 17:30 Michael E. Gorman, "Trading Zones, Interactional Expertise and Service Science"

2006/10/06 17:30 Michael E. Gorman,  University of Virginia, "Trading Zones, Interactional Expertise and Service Science", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Michael E. Gorman,  University of Virginia, "Trading Zones, Interactional Expertise and Service Science"

A psychologist in an engineering school

Kuhn: Problem of incommensurability:

• experts in an old paradigm can't communicate with those in a new
• What's a problem; what's a problem worth solving; what's valid date

Galison: Scientists and engineers still work together

• They working in a trading zone

Three levels of shared expertise in a multidisciplinary trading zone (adapted Collins and Evans)

• None: speak different languages
• Interactional: expert in one, mastered enough in other language to facilitate trades
• Contribution: can go from one domain to another

Crude taxonomy of trading zones (with Matt Mehalik)

State 1: a technological, ideological or political elite

• e.g. centralized agricultural planning, good for control, bad for producing food

State 2: relatively equal trading zones

• Actors often trade without boundary objects or across systems
• Don't need to be aligned, just aligned enough to trade

State 3: shared mental model, similar goals

• Dynamic representations
• Towards a cohesive team
• e.g. developing an Arpanet
• May not be able to stay in this zone very long

Services science needs development of a creole

• Need new expertise
• Need agreement on language
• Leads to trading zones that understand revenue

SSME as UVA: could play a part in Engineering Business minor, could see transforming this

• UVA bought a "semester at sea" program, takes students around the world (not just a cruise)

2006/10/06 17:45 Xiaofei Xu, "The Current States and Development Plan of Research and Education on SSME in Harbin Institute

2006/10/06 17:45 Xiaofei Xu, "The Current States and Development Plan of Research and Education on SSME in Harbin Institute of Technology", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Xiaofei Xu,  Dean, Computer Science, Harbin Institute of Technology, "The Current States and Development Plan of Research and Education on SSME in Harbin Institute of Technology"

In developing countries, services industry is 70%

• In China, 35% in 2004, expected to grow year by year
• Call "modern service industry"

Adopted IBM definitions on services science, two years ago

• Focused on service engineering

Focuses:

• Adapting Model Driven Architecture to SMDA
• Service reuse based on service components

Service methodology:

• Service models
• Service modeling: requirements analoysis, design and implementation
• Service building
• Service evaluation
• Support tools and platforms

2006/10/06 18:05 Christof Weinhardt, "SSME for eOrganizations"

2006/10/06 18:05 Christof Weinhardt,  "SSME for eOrganizations", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Jim Spohrer's introduction: What tools would service scientists use?

Christof Weinhardt,  Karlsruhe Institute of Technology, "SSME for eOrganizations"

KIT is the biggest research institute in Europe

• Established 3 to 4 years ago
• 12 professors, 18 young professors, 115 Ph.D. candidates (e.g. working on NESSI)
• Schools of economics and business engineering; computer science; electrical engineering; mechanical eningeering

eOrganizations? e.g. Virtual power plants

• Project running with 10 professors and 10 research assistants and industry
• How could we change the traditional supply chain?
• Supply and demand rules change
• Should be able to collaborate to get better prices through auctions and reverse auctions

Service-driven Applications; Services, components, modeling; Service substrate

Caomputer Aided Market Engineering (an integrated service engineering toolsuite)

Created Meet2Trade...

• Idea: Knowledge-based parametric design
• Design: Market modeling language (MML)
• Configuraiton: ConfiguraitonMarket configurator and composer
• Testing: Market experimental system (MES)
• .. Agent-baed simulation environemnt
• Introduction Operation: Market Planning and Operation intellgience (MAPOI)

Looking at how could capture emotional attributes in trades

[Questions]

Value?

• Compared Belgian and California markets

2006/10/06 18:20 Taina Tukiainen, "Master’s Program for Service Management at Helsinki Polytechnic Stadia"

2006/10/06 18:20 Taina Tukiainen, "Master’s Program for Service Management at Helsinki Polytechnic Stadia", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Taina Tukiainen,  Helsinki Polytechnic Stadia, "Master’s Program for Service Management at Helsinki Polytechnic Stadia"

Background in ICT industry, dissertation in ventures

Ventures background means start project quickly

Launch with industry: Nokia and IBM

• Content development as co-creation

Had half a year to develop and start the program

Have started a research project including IBM, Nokia, Kone, etc., but the focus here is in the class

• Got approval from the government
• Initiated with a Business Advisory Board (IBM, Nokia, Siemens, Metso and Bearing Point)

Students:  115 applicants from 20 countries, with ICT background

• 30 applicants accepted, 8 countries
• Background, B.Sc. in engineering
• 3 to 25 years of practical industry experience
• Classes Thursdays and Fridays, with business people coming in, and international faculty (in 2 weeks will have NJIT)

Curriculum and themes

Pedagogic approach:

• Thesis industry base, mostly with employers
• Action-based learning, experiential learning
• Dialogue and discussion: students are discussion leaders

Examples of industry collaboration:

• Advisory board
• Co-creation within industry and people
• Visiting lectures from industry, maybe easier in Finland
• Thesis supervision, and coaching: need industry application

2006/10/06 18:35 Irving Wladawsky-Berger, "At the Threshold of a 21st Century Revolution"

2006/10/06 18:35 Irving Wladawsky-Berger, "At the Threshold of a 21st Century Revolution", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Irving Wladawsky-Berger, IBM Vice President, Technical Strategy and Innovation, "At the Threshold of a 21st Century Revolution"

Last week, was a speaker at MIT on Complex Systems Engineering

Also worked on Complex Systems last week, for NSF

• Bill Rouse will summarize
• Consensus that what is most interesting about complex systems now, is that they incorporated the market-facing aspects and the social aspects (i.e. people)

Can't have services without people

• Different lenses on the same problem?
• Comfortable that when you design an airplane, you can see and touch it
• When you talk about something that you can't see, who cares what the reality is?  What matters is its behaviour, how it performs.
• e.g. wave and particle duality: when you get through the angst that there's no reality, life goes on and it's okay
• We're dealing with designing and architecting these incredibly complicated things that don't exist in the same way that cars and airplanes and chips exist.
• Can have an attack of anxiety or get over it.
• Sometimes a complex systems approach is the right approach, and sometimes a people approach is right, but it's important that they're all lenses on the same general thing, i.e. how do we understand market-facing complex systems that involve people.
• They're dynamic, unpredictable.
• Some of these things you'll automate, the rest you'll provide better tools for the people to make better decisions.
• We're not after automating the people out of the equation; you can't automate the clients out of the equation.
• May want to have people working with an automated part, or with humans.
• In restaurants, menus don't have variance.
• In markets, opportunities are in the variances.

At the end of the day, we want to figure out how to better design, build, operate, manage and evolve these market-facing, people-oriented systems that have heretofore have existed fine, but have been working in ad hoc ways.

• Design is at the root of what we want to do.
• In people-oriented, market-facing system, you're never complete.  It has to adapt to market conditions.
• Most people don't like their ERP systems, which were designed 15 years ago when the biggest thing was relational databases and mainframes ruled the world.
• They took a rigid approach to the business processes they automated.
• They told people: you want ERP, we'll automate you.
• Today, we're in a different environment:  what parts should we automate, what should be flexible, what should evolve?

One related area to complex systems and services, where I'm interested

• If you're going to design something, you need a model in your head.
• What's the model of businesses, and business models and innovation?
• Answer is going to come from the world of gaming and massive multiplayer online games, where people are creating worlds.
• Creating sim-business or sim-Almaden or sim-Harrod's.
• The link to the interfaces is critical.
• There's not point in doing any of this work, if human beings can't use them.
• Exciting that new tools are ways of visualizing complex things.
• There are existence proofs, question is how you bring them in
• If you're going to design businesses, how do you design them.
• There are experts that design hospitals, bridges, planes.
• Incredible opportunities, but incredible challenges.
• What's appealing about challenges: if going to design a very good hospital, going to your room and thinking about hospitals, we are being liberated so that our applications can look and feel more like the real world.
• Since the real world is to satisfy humans, the virtual worlds can have a lot of richness
• Need to educate and research people who can go out and model businesses in a systematic way that we haven't done before.
• This was done 35 years in manufacturing.
• Universities sent people to the plant floor.
• Now, the opportunities to do this in the rest of the world

2006/10/07 08:05 Debra Stewart

2006/10/07 08:05 Debra Stewart, President, Council of Graduate Schools, SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Debra Stewart, President, Council of Graduate Schools

Have shared some assumptions that service sectors will be large in the future

Advancing services in non-service companies

Also a science in service businesses

Mondale: If you're sure that you know everything that's going on, then you're hopelessly confused

• Not the Washington question: What did you know and when did you know it?

What needs to happen in the current phase?

In the positive global convergence of a corporate business putting forth an agenda on something that it thinks is important, to a group of academics who are enthusiastic and motivated?

• What happens next?
• The next phase to find people in our institution who will move these ideas forward?

Usually the title will be vp of research and/or dean of grad studies: advancing either research or grad education

• Graduate senior is the senior official responsible for oversight
• Includes U.S. schools and Canadian schools
• European schools are getting more like this

Graduate education will push innovators

• 1.15M students of 1.6M are master's
• Most faculty care about Ph.D.s

Also need certificate programs, e.g. Berkeley -- package of advanced training

Graduate schools need to determine that faculty standards are met

• Reflect diversity
• Link employers

Beyond quality (which students don't know much about), students say:

• Interested in linkage between education and future jobs
• Compelling need for transparency in process
• Fixed time: a destination, not a lifetime
• Faculty generally don't like these career preparation, students don't want prepare for a job, but instead prepare for lifetime where they will have to change for jobs

Employers: strongest advocates for graduate education

• Need flexible students
• Global economy, but can work locally
• Flexible
• Can deal effectively with people

Professional science master's: developed with the sponsorship of the Sloan Foundation, located in the Council of Graduate Schools in Washington

• 75 graduate programs
• Unfilled niche: science-based companies wanted something beyond bachelor, but not up to a Ph.D.
• It's science-plus, i.e. science plus the business of science (law, communications, business)
• Helsinki program described yesterday looks like this

How can deans help?

• Find ways to mobilize students

How to scale up:

• Recommend to faculty: know it takes time, but have to find allies, need to make services science the dean's problems
  • IBM money will go away some day, and you need to find an institutional home and commitment
• Recommend to administrators: recognize services science is on the frontier, and it's risky
• Recommend to employers: they say they want these people trained, and then employ people with degrees like they have, so need commitment to hire graduates

Asked: is the world is flat?

• Believes Richard Florida, that the world is spiky
• How to ensure that your region is on a spike?
• Focus on compelling areas
• Universities are at the source of spikes, but it's not just any university

[Questions]

Globally-integrated enterprise. What do we do about supply-demand imbalances? Ph.D. shortage in India

• Indian government has committed to grow Ph.D. programs by 5 times in 6 to 7 years
• American model: take undergraduates paid by public funds elsewhere, draw them to the U.S., and keep them here
  • 60% to 70% of science and engineering graduates are like this, even despite declines
• Some American schools are starting programs in Asia
• But Ph.D. programs aren't something you can turn on and off

Professional master's degree numbers? Professional doctorate degrees

• 1200 PSMs, but some are very small and niche oriented (e.g. graduate and start a new business)

Jim Spohrer:  Will have meetings of employers

Debra: Have a book on PSM program, can find on web side

2006/10/07 08:40 Hideaki Takagi, University of Tsukuba, "Research and Education of SSME in Japanese Universities"

2006/10/07 08:40 Hideaki Takagi, University of Tsukuba, "Research and Education of SSME in Japanese Universities", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Hideaki Takagi, University of Tsukuba, "Research and Education of SSME in Japanese Universities"

40 years ago, government decided to move universities outside of Tokyo, Tsukuba is north of Narita airport

• Now subway line

2006/10/07 09:05 Bob Lusch, "The Service-Dominant Mindset"

2006/10/07 09:05 Bob Lusch, "The Service-Dominant Mindset", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Steve Vargo & Bob Lusch, University of Hawaii and University of Arizona, "The Service-Dominant Mindset"

Fish or wheat:

• Exchanges: competences for trading proteins for trading carbohydrates

Even in agriculture, work is done by services

• Computers: informed matter with our intelligence
• Service-dominant logic: focus on processes
• Processes have no start and no end

What is a service?

• Application of competencies, for the benefit of another entity
• Sometimes done with goods, which we call appliances

What firms produce are not outputs, but instead inputs into another system

• With scientific management, we treat humans like operant inputs, they're operand resources that do things
• We sleep, work, and co-create
• Consuming not the right idea, as they don't destroy, they co-create
• Consumers assemble resources to co-produce

We've been on this journey from a goods-dominant logic to a transition, to service-dominant logic

• Goods --> Services --> Service
  • Units of input, whereas service implies process
  • Service science, not services science
• Products --> Offerings --> Experiences
• Features / attributes --> Benefits --> Solutions
• Equlibrium systems --> Dynamic systems --> Complex adaptive systems (learning and evolving)
• Supply chain --> Value chain --> Value-creation networks or constellations

Big meta-questions (that Karl, from the Kauffman foundation brought up)

• What is the theory of the firm?  What do firms do?
  • From producing outputs --> producing inputs
  • New institutions will evolve not just it's good for one firm, but when it's good for the whole system
  • Democracies work, because they're co-creation
• How do firms do this?
• Why do firms do this?
• What scientific concepts and tools are dominant?
  • Towards discovery
• (Could also ask what consumers do)

[Questions]

Value.  Definition of services, where there isn't a transfer of ownership.  Do have trouble when come to consumer goods.  Distinction between durable goods and consumable goods.

2006/10/07 09:20 Christos Nikolaou, "Progress Report on Efforts towards Services Science in in the EU and Greece"

2006/10/07 09:20 Christos Nikolaou, "Progress Report on Efforts towards a Research and Education Agenda for Services Science in the EU and Greece", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Christos Nikolaou, University of Crete, "Progress Report on Efforts towards a REsearch and Education Agenda for Services Sciene in the EU and Greece"

When say EU, should say European Commission

Funding, like NSF:

• Network on complex systems
  • In Europe, primarily a community of physicists, now getting economists and computer scientists interested
  • One day workshop that didn't get anywhere
  • Should be looking at microscopic and operational level
  • Relationship between organizations and services
• Bridging the business-IT gap

[Quesions]

NESSI?

• Yes, many working groups

2006/10/07 09:40 Guido Dedene, "A Research and Educational Framework for Service Management"

2006/10/07 09:40 Guido Dedene, "A Research and Educational Framework for Service Management", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Guido Dedene, Catholic University of Leuven (K.U.Leuven), Belgium, "A Research and Educational Framework for Service Management"

Also teach in Amsterdam and Gent

• Officially MBA:  what language do you use for business?

• Teaching business modeling and service management

Classical management frameworks, including Strategic Alignment 2x2 by Henderson and Venkatraman

Services as a meaningful bundle of technology / resources satisfying a predefined service contract

Threefold division: Preconditions, postconditions and variants

• Similar to Praxis, Semantics, Syntax
• Similar to Experience, Services, Resources
• Similar to Knowledge, Information, Technology

The Service Management Enneahedron (3x3)

• X-axis: Business, Services, Technology and Resources
• Y-axis: Strategy, Structure, Operations

First used this framework for service level agreements

• Operations: Business activities --> I/C Service Activities --> Technology Activities
• Little's law
• Boundary conditions for functions

Second application of the framework: course development of ICT/S Service Management

• Each of alignment of rows, columns, then triangles

Research activities:

• Service strategy: look for market inperfections, as opportunities
  • Assymetries
  • Solve the imperfection or retain the imperfection
• Structures vs. execution
  • Looking for ways to discover, from the bottom up

[Questions]

Definition of service?

• System in which knowledge is mediated, but the knowledge is in praxis
• Hard services vs. soft services (where break rules)

2006/10/07 10:00 Jiangfan Li, "CCSSR Research & Education and Service Economies & Management"

2006/10/07 10:00 Jiangfan Li,  "CCSSR Research & Education and Service Economies & Management", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Jiangfan Li,  Sun Yat-sen University, Guangzhou, China, "CCSSR Research & Education and Service Economies & Management"

Started research on service economies in the 1980s

Research areas:

• Service economics

[Personal history]

China 5-year plan: include provincial level programs

Development of services sector: yellow bar agricultural, green manufacturing, red services

• Second chart: employment

Education:

• Ph.D., two majors:  enterprise management; industrial management

Website

Plans: Service economics and management

2006/10/07 11:05 Javier Reynoso, "The Evolution of Services Management in Latin America: Building an Academic Program"

2006/10/07 11:05 Javier Reynoso, "The Evolution of Services Management in Latin America: Building an Academic Program", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Javier Reynoso, Instituto Tecnológico y de Estudios Superiores de Monterrey, "The Evolution of Services Management in Latin America: Building an Academic Program"

Three foundations:

• Scientific development:  What are services in a Latin American content, at the bottom of the pyramid
• Academic development: Certificate programs
• Competitiveness of service businesses in Latin America: students in action research projects

Rationale:  

• Need to have a systemic view of services organizations
• Need to understand distinctions between IT services management and services management
• Need to integrate management areas before integrating sciences

[Discussion]

Services in private sector?

• Yes, increasing flows into Latin America: airlines, hotels, banks
• Began under the Salinas regime

Missing services?

Acknowledge different perspectives or find a problem to solve.

[Back to presentation]

Focus one level at a time, e.g. services science, but what is a science?  Epistemology, philosophy of science

Need to see other service sciences without necessarily IT bias

2006/10/07 11:20 Mary Jo Bitner, "Services Science at ASU"

2006/10/07 11:20 Mary Jo Bitner, "Services Science at ASU", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

• [Slides are available at almaden.ibm.com]

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Mary Jo Bitner, Arizona State University, "The Evolution of Services Management in Latin America: Building an Academic Program"

Center for Services Leadership is 20 years old

Strong roots at Center for Services Leadership, have done research, executive programs, MBA programs, Ph.D. programs

• Depth is in marketing
• Found that couldn't keep just in marketing, had to learn about business
• Actionable research, e.g. self-service technologies
• Focus on the customer:  a hub

Companies aren't all just IT, although IBM has been a big partner for some time

• For pure services like Marriott and Mayo Clinic to IT Business
• November 1-3: Compete for Services symposiums

Building from services research, focusing on customer and competiting through service

Recent trans-disciplinary:  information systems, psychology, computer science and informatics

Service Science is an emerging discipline that focuses on fundamental science, models, theories and applications to drive innovation, competition and quality of life thorugh services(s)

• A big tent

Have had an MBA specialization in services leadership for 10 years

• Textbook (4th edition)
• Will be teaching in Shanghai (2006, 2007)
• Started a cross-disciplinary Ph.D services seminar (2006)
• Executive programs

Initiatives:

• Moving towards faculty research clusters, e.g. IT services, healthcare

Acceleration factors and challenges

• Have center and web of companies
• President of the university, Michael Crow, has a vision of the new American university:  accessible, excellence, impact (as Cafe University)
• Size: have 63,000 students, will become 90,000 in the next few years

Challenges:

• Languages across disciplines
• Reward and incentive structures
• Funding

At a critical juncture

• Can't expect IBM to fund this, that's not why we're here
• Universities have to want to do this

[Questions]

Bigger tent here that I thought.  But then no one person could know everything.  Where does synthesis come from?

• Agree.  However, universities and governments have never paid attention to services.

2006/10/07 11:45 Business Partner Panel

2006/10/07 11:45 Business Partner Panel, SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Panel:

• Cathy Lasser, IBM, VP in Research, Industry Solutions

Have heard of changes from IBM, now something completely different

• We're employers

For Cathy: talked about services sciences, came into engineering

• Solution, said dive into telecom, health
• Said, maybe we need solution science
• In conversations with Jim and Irving, this became solution engineering
• The discipline to be able to do it over and over again
• Today, it takes a perfect storm:  need right people at the right time in the right geography to make it happen
• SSME would make the perfect storms more frequent

Sid Dalal, VP of services research: Xerox

• Started information services division
• Four colleagues at the VP level came to this event
• Xerox has $4B / year in services, document process outsourcing, which is very human intensive
• In the business of big-I small-T
• Services research, 200 people
• See benefits in shorter time to hire, shorter time to train
• As an employer, want to hire:  analysts, solutions architects, researcher
• Trying to solve a problem: end to end, complete multidisciplinary approach
• Services is a human-intensive business
• Multidisciplinary, can't come from a single discipline
• When we are with a customer, need to understand risks: haven't seen risk analysis discussed
• Comparable to 1960s and 1970s Deming: not complicated, but just people in factories discussing with a toolkit
• At Xerox, have many six-sigma black belts trained
• We're not about cost-cutting, notion of a new business model: can we charge for services by click?

Peter Tompkins: Information Techologies Inc.

• 30 years ago, started, leading suppliers of software in banking
• 700 people in Lincoln, Nebraska
• In professional services group, professional services manager
• Banking software provided to 1/3 of banks, 700 people
• Fiserv out of Madison, Wisconsin, bought the company, parent of 130 companies
• Had a wire from a Unisys mainframe to green screen
• Now everything on networks, talks to PDA and refrigerator doors
• 5 years ago, partnered with IBM
• 3 years ago, open up a refined version of software, runs on other platforms
• Midwest work ethic
• Former president of the company is the chairman of Fiserv that bought ITI
• Initially, professional services was a silo
• Translates geekdom to business terms
• Can't know it all
• Only came on to services science a few months ago
• What do banks need?  We need data mining, etc., that are things that universities teach to students.
• Model is to create wealth for customers.
• Partnership is biggest thing of what we do.
• Consulting: fake the experience, live the passion

Adrian McKinney: Boston Consulting Group

• Variety of perspectives, intent
• Some thousand consultants, $1 billion in revenue, we solve problems
• We sell the service of problem solution
  • Role is mostly in client service: people want an edge, as an innovation value solution
  • Means creation of new business models, creation of new services
• Spend 20% of time in the Strategy Institute, looking for the next horizon of ideas
  • Not going to find this B-schools and MBAs
  • Go to sociologists, physicists, etc. to see what sparks fly
  • Disciplines are arbitrary
  • Emanuel Wallenstein's work on systems theory
• Training in physics, jumped to business in the 1990s
• But have taught classes, created curriculum
• At BCG, hiring MD MBAs, but then still need to give them experience
• Beyond content, need to allow people experiences that generate their internal abilities to do:
  • Networking, someone who can talk to a poet and a physicist
  • Insights: pattern recognition, dynamic range in thinking, at undergrad and grad programs
  • Impact: what's the value?
• For BCG, it's about going beyond the MBA
• Also something about tools and learning devices:  at BCG have a Strategy Gallery, encourage people to dip into that to get a space to think

[Questions]

When do we have services and product for free?  People-based business to asset-based businesses.  Need services sciences who come to build tools and technologies.  You're not looking for us to develop courses to help you.  Not production line, person putting in screws on a production line.  Strategies born or trained?

• Adrian:
  • Can be gently engineered, starting in high school, then through university.
  • Looking for renaissance men and women, not that can do everything, but can figure out everything.
  • Need a different way of interacting, and at the personal career level
  • Genocide: if someone has too many interests, too many degrees, too many experiences, we're too concerned about why they're jumping around
  • Strategy requires those properties
  • Can grow these people
• Cathy:
  • Methods and disciplines of what to ask
  • How integrate and use them
  • Technology bits and bytes, but then how do we make money?  Can train for this
• Sid:
  • Will it create methdology of tools?
  • Will it cause a disruption?
• Peter:
  • Confidence factors:  can you teach outgoingness, then experience and failure need to kick in, that leads to performance
  • Can't teach personality

Challenge on people and metrics.  In IGS, easiest measure is utilization.  People need a space to think.  Can't acquire a skill unless it's practice.  Too often, people are practicing in front of the customer.  What's the answer to keep them sharp?

• Peter:
  • Ride-along, apprenticeship
• Adrian:
  • Don't handle it well, but it works
  • Every 6 months you get a review
  • Up or out system, or go or grow
  • We keep talent sharp by citing it quickly
• Sid:
  • Tough question
  • Experimenting:  allow newer people some extra time
  • Rotational assignments work, allow them to replenish batteries
    • Finite limit to do this
  • Allowing some amount of time after an assignment to do it
  • Can't do it 20% of time, because people are so busy

Corporate funding for services research? Services research and development budget isn't a phrase that is used often.  Even with Val's presentation yesterday, it was using product-oriented methods to get long term services research. Could be a few bad quarters for long-term benefits. What have you learned at your companies on how to get support and funding of academic research?

• Sid:
  • Things have been changing
  • All say services as a business or a cost centre or support for hardware is new.
  • Cash cows say why are we wasting money
  • Key challenge: highest levels of management committing to growing this business
• Peter:
  • Parent company put out a press release a month ago on synergy between services
  • Leader knows that services are where things are
  • We're in the middle of that
• Adrian:
  • Constrast between a pessimist and an optimist
  • If you have a successful business model, it's hard to get money to change it
  • The only way to have innovation has been to get senior people committed, historical perspectives, and fiscal accountability
• Cathy:
• Have to do this without impacting profits quarter to quarter
  • Have been good at developing things, need to figure out how to leverage them

2006/10/07 12:45 Stu Feldman, "Summary and Closing"

2006/10/07 12:45 Stu Feldman, "Summary and Closing", SSME - Education for the 21st Century Conference, IBM Palisades, New York

Services Science, Engineering and Management Conference, at IBM Palisades, October 6-7

This digest was created in real-time during the meeting, based on the speaker's presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted on the Coevolving Innovations web site by David Ing.

Stu Feldman, vp of exploratory research

Excitement:  it's a new area, a new way of thinking

This is the time for snowballing

Lead to socio-economic value

The way you tell pioneers is by the arrows in their back

At least four clusters of intellectual impetus:

• Math/OR
• Industry engineering / systems engineering
• Computer science / information management
• Physics, complexity

Already recognize success will come from crossing individuals

• T-shaped individual, but reality we need for pi-shaped people, deep in two directions and broad across everything else

Not just intellectual output: experience factor, not just cognitive, you won't understand why it's hard

• Describing contexts (invisible relationships) is hard

Services are, at base, about people

• The most we talk about: humans as actors, operands.
• They also provide purpose, goals, impetus
• Humans are at the core of a small enterprise
• But want to maximize value, e.g. Moore's law

What are service activities?

• Designing / building / operating
• Monitoring
• Managing
• Understanding, looking at long-term questions, e.g. societal

Sat on an agenda-building model in Europe, for people to focus on 10 years

Book: Academic charisma -- basically, everything came from German academics in 1870s.

• What did it take to make a radical change in the world, and what does it take?
• Changes will be evolutionary

Tenure the usual block, only mentioned twice here:

• Mostly likely to do new is the young, and they shouldn't do things that will hurt them from getting tenure.

Respectability: computer science only got this after 25 years, still some questions as to whether it's a real field.

Who is going to support this?

• Have spoken to Brussels and Washington
• Think that they should do something, but they're reactive, not proactive.
• Feedback loop, that no one starts
• Cross-disciplinary

Need to build constituents in governments, also foundations.

Curriculum: the master's degree is the soft spot, where can sneak in new courses and experiment

• At an early stage, want diversity

How do we create graduate programs?

• What perterbations should happen in the undergraduate programs?

IBM will help, fund a little (although not a government)