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Zermatt Summit:
Partnering for Skills

Dr. James C. (“Jim”) Spohrer
IBM Innovation Champion & Director, IBM Global University Programs
Midway, UT, USA, Dec. 5, 2013
T-Shaped People:
Next Generation Adaptive Innovators
for a Smarter Planet

Many disciplines
Many sectors
Many regions/cultures
(understanding & communications)

Deep in one region/culture

Deep in one sector

Deep in one discipline
Cybersecurity Solutions:
Next Generation Infrastructure
for a Smarter Planet
Cloud

Social
Mobile

Internet of Things
Partnering for Skills
Marisa Viveros,
VP Cybersecurity
Innovation

Nanci Knight,
Academic
Initiatives
(Western Region)

Dianne Fodell,
Program Exec
Skills for 21st C
Key Question: Knowledge Half-Life
• What percentage of a companies product and service
offerings to customers change every year?
• What percentage of the courses that students get change
every year?
12/2/2013

© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)

6
Jim Spohrer, IBM
• Dr. James (“Jim”) C. Spohrer is IBM Innovation
Champion and Director of IBM University Programs
(IBM UP). Jim works to align IBM and universities
globally for innovation amplification. Previously, Jim
helped to found IBM’s first Service Research
group, the global Service Science community, and
was founding CTO of IBM’s Venture Capital Relations
Group in Silicon Valley. During the 1990’s while at
Apple Computer, he was awarded Apple’s
Distinguished Engineer Scientist and Technology title
for his work on next generation learning
platforms. Jim has a PhD in Computer
Science/Artificial Intelligence from Yale, and BS in
Physics from MIT. His current research priorities
include applying service science to study
nested, networked holistic service systems, such as
cities and universities. He has more than ninety
publications and been awarded nine patents.
Context: IBM 101

More than 40% of IBMs
workforce does
business away from an
office

IBM has
~425,000
employees
worldwide

IBM operates in 170 countries
around the globe

2012 Financials
24% of IBMs revenue in
Growth Market countries;  Revenue - $ 104.5B
 Net Income - $ 17.6B
growing at 7% ( @cc) in
2012
 EPS - $ 15.25 (10 yrs of

IBM Growth Initiatives

EPS d/digit growth)

 Net Cash - $18.2B

Acquisitions contribute significantly
to IBM’s growth ; ~120 acquisitions in
last decade

Number 1 in patent
generation for 20
consecutive years ;
6,478 US patents
awarded in 2012

12/2/2013

New Era in IBM’s Leadership

100 Years of Business &
Innovation in 2011

The Smartest Machine On Earth

10 time winner of the
5 Nobel Laureates
President’s National
Medal of Technology &
Innovation – latest for
LASIK laser refractive
surgical techniques
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)

8
12/2/2013

© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)

9
What’s UP at IBM?

10
Those in-the-know say, “IBM is helping to build a Smarter Planet…”

11
Smarter Planet = Smarter Service Systems

INSTRUMENTED

INTERCONNECTED

INTELLIGENT

We now have the ability to
measure, sense and see
the exact condition of
practically everything.

People, systems and objects
can communicate and
interact with each other in
entirely new ways.

We can respond to changes
quickly and accurately,
and get better results
by predicting and optimizing
for future events.

IT NETWORKS

PRODUCTS
WORKFORCE

12

SUPPLY CHAIN

COMMUNICATIONS
TRANSPORTATION

BUILDINGS
Land-population-energy-carbon

Carlo Ratti:
Senseable Cities

13
14
15
IBM Platforms for Entrepreneurs

• Smarter Cities Intelligent Operations Center Platform
• IBM Watson & Cognitive Computing Platform
• IBM UP helping university startups to scale-up (growth)
12/2/2013

© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)

16
Welcome to the new age of
platform technologies and
smarter service systems
for every sector of
business and society

nested, networks systems
National Science Foundation
A feature of a service system is the
participation and cooperation of the customer
in the service and its delivery. A service system
then requires an integration of knowledge and
technologies from a range of disciplines, often
including engineering, computer science, social
science, behavioral science, and cognitive
science, paired with market knowledge to
increase its social benefit.

Nano-Bio-Info-Cogno
Holistic Service Systems (HSS)
http://www.service-science.info/archives/1056

University Four Missions
1. Learning
2. Discovery
3. Engagement
4. Integration
“The future is already
here (at universities),
it is just not evenly
distributed.”
“The best way to
predict the future
is to (inspire the next
generation of students
to) build it better.”

Nation

For-profits:

State/Province
City/Region

U-BEE

Business Entrepreneurship

Job Creator/Sustainer
Cultural &
Conference
Hotels

Non-profits
Social Entrepreneurship

University
College
K-12

Worker

Family

(professional )

(household)

Hospital
Medical
Research

“Multilevel nested,
networked
holistic service
systems (HSS)
that provision
whole service (WS) to
the people inside them.
WS includes
flows (transportation,
water, food, energy, com
development (buildings,
retail ,finance, health,
education),
and governance (city,
state, nation). ”

U-BEEs = University-Based Entrepreneurial Ecosystems
12/2/2013

© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)

19
Universities Matter #1
9
Japan

8

y = 0,7489x + 0,3534
R² = 0,719

7

China

Germany

% global GDP

6

5
France
4

United Kingdom

Italy

3
Russia
2

Spain
Canada

India
Mexico
Turkey

1

Brazil

South Korea
Australia
Netherlands
Sweden

0
0

1

2

3

4

5

6

7

8

9

% top 500 universities

Nation’s % WW GDP and % Top 500 Universities (2009 Data)

12/2/2013

© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)

20
Universities Matter #2

…But it can be costly, American student loan debt is over $900M

12/2/2013

© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)

21
Universities Matter #3

“When we combined the impact of Harvard’s direct spending on payroll, purchasing and construction – the
indirect impact of University spending – and the direct and indirect impact of off-campus spending by Harvard
students – we can estimate that Harvard directly and indirectly accounted for nearly $4.8 billion in economic
activity in the Boston area in fiscal year 2008, and more than 44,000 jobs.”

12/2/2013

© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)

22
What are the trends?

Digital Immigrant
Born: 1988
Graduated College: 2012

23

Digital Native
Born: 2012
Enters College: 2030
Technology: Cognitive Computing

24
Education: Challenge-Based Sport

25
Why ISSIP? T-shapes for
Teamwork

BREADTH
DEPTH

• Our world is becoming more
interconnected and complex
• Yet most organizations
operate is silos
• Most professional
organizations do a great job
of focusing on one
discipline, function, or
industry sector
ISSIP is a professional society designed
to focus on the interconnected nature
of value co-creation for smart service
systems (tech, biz, social, etc.)

T-Shape
professionals can
innovate across
traditional
boundaries
ISSIP Ambassadors

•

More than 15 Ambassadors
and growing…

•

Link ISSIP to other
professional associations,
research centers, conferences,
etc.

•

Help ISSIP co-sponsor
activities in other conferences

more...

http://www.issip.org/learningcenter/valuen
twork/
Service Systems Fundamental Abstraction of Service Science:
ISSIP portal to Disciplines (23), Professional Associations (39), Journals (20), Conferences (31), Workshops (7)
Discipline

Association

Marketing

AMA

Operations Research

INFORMS

Information
Systems

AIS

Computer Science
and Engineering

ACM, IEEE

Human Factors

AHFE

Operations
Management

POMS

Systems Science

ISSS

Design

SDN

Systems Engineering

IIE

…

…

Serviceology

SfS

(SSME+DAPP)

ISSIP

IBM SSME Centennial Icon of Progress
The Well-Read Service Scientist
(The top 300 papers – together over 100,000 citations)

• http://service-science.info/archives/2708
Service-Dominant Logic

Prof. Stephen VARGO

Prof. Robert LUSCH

Vargo, S. L., & Lusch, R. F. (2004). Evolving to a
new dominant logic for marketing. Journal of
marketing, 1-17. (Oct. 2013, ~4500 citations)

Claude Frédéric Bastiat

David Ricardo

Colin Clark

Richard Normann

John Riordan
Service Thinking
Saperstein & Hastings: Book, Course, ISSIP Certificate

All value is co-created
Service systems we live and work in
Componentized business architecture

Global-mobile-social scalable platforms
Run-Transform-Innovate
Multi-sided metrics
CVC Group, LLC

31
“Order of Magnitude” Observation:
Modeling Holistic Service 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

32

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Zermatt summit t shapes 20131205 v1

  • 1. Zermatt Summit: Partnering for Skills Dr. James C. (“Jim”) Spohrer IBM Innovation Champion & Director, IBM Global University Programs Midway, UT, USA, Dec. 5, 2013
  • 2. T-Shaped People: Next Generation Adaptive Innovators for a Smarter Planet Many disciplines Many sectors Many regions/cultures (understanding & communications) Deep in one region/culture Deep in one sector Deep in one discipline
  • 3. Cybersecurity Solutions: Next Generation Infrastructure for a Smarter Planet Cloud Social Mobile Internet of Things
  • 4. Partnering for Skills Marisa Viveros, VP Cybersecurity Innovation Nanci Knight, Academic Initiatives (Western Region) Dianne Fodell, Program Exec Skills for 21st C
  • 5. Key Question: Knowledge Half-Life • What percentage of a companies product and service offerings to customers change every year? • What percentage of the courses that students get change every year?
  • 6. 12/2/2013 © IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward) 6
  • 7. Jim Spohrer, IBM • Dr. James (“Jim”) C. Spohrer is IBM Innovation Champion and Director of IBM University Programs (IBM UP). Jim works to align IBM and universities globally for innovation amplification. Previously, Jim helped to found IBM’s first Service Research group, the global Service Science community, and was founding CTO of IBM’s Venture Capital Relations Group in Silicon Valley. During the 1990’s while at Apple Computer, he was awarded Apple’s Distinguished Engineer Scientist and Technology title for his work on next generation learning platforms. Jim has a PhD in Computer Science/Artificial Intelligence from Yale, and BS in Physics from MIT. His current research priorities include applying service science to study nested, networked holistic service systems, such as cities and universities. He has more than ninety publications and been awarded nine patents.
  • 8. Context: IBM 101 More than 40% of IBMs workforce does business away from an office IBM has ~425,000 employees worldwide IBM operates in 170 countries around the globe 2012 Financials 24% of IBMs revenue in Growth Market countries;  Revenue - $ 104.5B  Net Income - $ 17.6B growing at 7% ( @cc) in 2012  EPS - $ 15.25 (10 yrs of IBM Growth Initiatives EPS d/digit growth)  Net Cash - $18.2B Acquisitions contribute significantly to IBM’s growth ; ~120 acquisitions in last decade Number 1 in patent generation for 20 consecutive years ; 6,478 US patents awarded in 2012 12/2/2013 New Era in IBM’s Leadership 100 Years of Business & Innovation in 2011 The Smartest Machine On Earth 10 time winner of the 5 Nobel Laureates President’s National Medal of Technology & Innovation – latest for LASIK laser refractive surgical techniques © IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward) 8
  • 9. 12/2/2013 © IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward) 9
  • 10. What’s UP at IBM? 10
  • 11. Those in-the-know say, “IBM is helping to build a Smarter Planet…” 11
  • 12. Smarter Planet = Smarter Service Systems INSTRUMENTED INTERCONNECTED INTELLIGENT We now have the ability to measure, sense and see the exact condition of practically everything. People, systems and objects can communicate and interact with each other in entirely new ways. We can respond to changes quickly and accurately, and get better results by predicting and optimizing for future events. IT NETWORKS PRODUCTS WORKFORCE 12 SUPPLY CHAIN COMMUNICATIONS TRANSPORTATION BUILDINGS
  • 14. 14
  • 15. 15
  • 16. IBM Platforms for Entrepreneurs • Smarter Cities Intelligent Operations Center Platform • IBM Watson & Cognitive Computing Platform • IBM UP helping university startups to scale-up (growth) 12/2/2013 © IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward) 16
  • 17. Welcome to the new age of platform technologies and smarter service systems for every sector of business and society nested, networks systems
  • 18. National Science Foundation A feature of a service system is the participation and cooperation of the customer in the service and its delivery. A service system then requires an integration of knowledge and technologies from a range of disciplines, often including engineering, computer science, social science, behavioral science, and cognitive science, paired with market knowledge to increase its social benefit. Nano-Bio-Info-Cogno
  • 19. Holistic Service Systems (HSS) http://www.service-science.info/archives/1056 University Four Missions 1. Learning 2. Discovery 3. Engagement 4. Integration “The future is already here (at universities), it is just not evenly distributed.” “The best way to predict the future is to (inspire the next generation of students to) build it better.” Nation For-profits: State/Province City/Region U-BEE Business Entrepreneurship Job Creator/Sustainer Cultural & Conference Hotels Non-profits Social Entrepreneurship University College K-12 Worker Family (professional ) (household) Hospital Medical Research “Multilevel nested, networked holistic service systems (HSS) that provision whole service (WS) to the people inside them. WS includes flows (transportation, water, food, energy, com development (buildings, retail ,finance, health, education), and governance (city, state, nation). ” U-BEEs = University-Based Entrepreneurial Ecosystems 12/2/2013 © IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward) 19
  • 20. Universities Matter #1 9 Japan 8 y = 0,7489x + 0,3534 R² = 0,719 7 China Germany % global GDP 6 5 France 4 United Kingdom Italy 3 Russia 2 Spain Canada India Mexico Turkey 1 Brazil South Korea Australia Netherlands Sweden 0 0 1 2 3 4 5 6 7 8 9 % top 500 universities Nation’s % WW GDP and % Top 500 Universities (2009 Data) 12/2/2013 © IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward) 20
  • 21. Universities Matter #2 …But it can be costly, American student loan debt is over $900M 12/2/2013 © IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward) 21
  • 22. Universities Matter #3 “When we combined the impact of Harvard’s direct spending on payroll, purchasing and construction – the indirect impact of University spending – and the direct and indirect impact of off-campus spending by Harvard students – we can estimate that Harvard directly and indirectly accounted for nearly $4.8 billion in economic activity in the Boston area in fiscal year 2008, and more than 44,000 jobs.” 12/2/2013 © IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward) 22
  • 23. What are the trends? Digital Immigrant Born: 1988 Graduated College: 2012 23 Digital Native Born: 2012 Enters College: 2030
  • 26. Why ISSIP? T-shapes for Teamwork BREADTH DEPTH • Our world is becoming more interconnected and complex • Yet most organizations operate is silos • Most professional organizations do a great job of focusing on one discipline, function, or industry sector ISSIP is a professional society designed to focus on the interconnected nature of value co-creation for smart service systems (tech, biz, social, etc.) T-Shape professionals can innovate across traditional boundaries
  • 27. ISSIP Ambassadors • More than 15 Ambassadors and growing… • Link ISSIP to other professional associations, research centers, conferences, etc. • Help ISSIP co-sponsor activities in other conferences more... http://www.issip.org/learningcenter/valuen twork/
  • 28. Service Systems Fundamental Abstraction of Service Science: ISSIP portal to Disciplines (23), Professional Associations (39), Journals (20), Conferences (31), Workshops (7) Discipline Association Marketing AMA Operations Research INFORMS Information Systems AIS Computer Science and Engineering ACM, IEEE Human Factors AHFE Operations Management POMS Systems Science ISSS Design SDN Systems Engineering IIE … … Serviceology SfS (SSME+DAPP) ISSIP IBM SSME Centennial Icon of Progress
  • 29. The Well-Read Service Scientist (The top 300 papers – together over 100,000 citations) • http://service-science.info/archives/2708
  • 30. Service-Dominant Logic Prof. Stephen VARGO Prof. Robert LUSCH Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of marketing, 1-17. (Oct. 2013, ~4500 citations) Claude Frédéric Bastiat David Ricardo Colin Clark Richard Normann John Riordan
  • 31. Service Thinking Saperstein & Hastings: Book, Course, ISSIP Certificate All value is co-created Service systems we live and work in Componentized business architecture Global-mobile-social scalable platforms Run-Transform-Innovate Multi-sided metrics CVC Group, LLC 31
  • 32. “Order of Magnitude” Observation: Modeling Holistic Service 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 32

Notas do Editor

  1. Service ThinkingValue co-creation and capability co-elevationDigital Design ThinkingMore capabilities exist in software formCompliance capabilities as wellSystems ThinkingBalancing productivity & qualityBalancing compliance & innovation
  2. Individuals with smartphonesDrivers in driveless carsHome owners in smart rooms in their smart housesOccupants of smart buildings, sometimes 30 story smart buildings built in just 15 daysPatients, doctors, and nurses in smart hospitals and operating roomsTechnicians monitoring multiples aspects of from a smarter city intelligent operations centersSmall retail businesses taking credit card purchses on their smart phones
  3. Multilevel nested, networked holistic service systems (HSS) that provision whole service (WS) to the people inside them. WS includes flows (transportation, water, food, energy, communications), development (buildings, retail, finance, health, education), and governance (city, state, nation). What are the largest and smallest service system entities that have the problem of interconnected systems?Holistic Service Systems like nations, states, cities, and universities – are all system of systems dealing with flows, development, and governance.=============\Nations (~100)States/Provinces (~1000)Cities/Regions (~10,000)Educational Institutions (~100,000)Healthcare Institutions (~100,000)Other Enterprises (~10,000,000)Largest 2000>50% GDP WWFamilies/Households (~1B)Persons (~10B)Balance/ImproveQuality of Life, generation after generationGDP/CapitaQuality of ServiceCustomer ExperienceQuality of JobsEmployee ExperienceQuality of Investment-OpportunitiesOwner ExperienceEntrepreneurial ExperienceSustainabilityGDP/Energy-Unit% Fossil% RenewableGDP/Mass-Unit% New Inputs% Recycled Inputs
  4. Why service scientists are interested in universities…. They are in many ways the service system of most central importance to other service systems…Graph based on data from Source: http://www.arwu.org/ARWUAnalysis2009.jspAnalysis: Antonio Fischetto and Giovanna Lella (URome, Italy) students visiting IBM AlmadenDynamicgraphybased on Swissstudents work:http://www.upload-it.fr/files/1513639149/graph.htmlUS isstill “off the chart” – China projected to be “off the chart” in lessthan 10 years: US % of WW Top-RankedUniversities: 30,3 % US % of WW GDP: 23,3 %CorrelatingNation’s (2004) % of WW GDP to % of WW Top-Ranked UniversitiesUS isliterally “off the chart” – butincluding US make high correlationevenhigher: US % of WW Top-RankedUniversities: 33,865 % US % of WW GDP: 28,365 %
  5. http://www.bls.gov/emp/ep_chart_001.htmhttp://theeconomiccollapseblog.com/archives/student-loan-debt-hell-21-statistics-that-will-make-you-think-twice-about-going-to-collegePosted below are 21 statistics about college tuition, student loan debt and the quality of college education in the United States....#1 Since 1978, the cost of college tuition in the United States has gone up by over 900 percent.#2 In 2010, the average college graduate had accumulated approximately $25,000 in student loan debt by graduation day.#3 Approximately two-thirds of all college students graduate with student loans.#4 Americans have accumulated well over $900 billion in student loan debt. That figure is higher than the total amount of credit card debt in the United States.#5 The typical U.S. college student spends less than 30 hours a week on academics.#6 According to very extensive research detailed in a new book entitled "Academically Adrift: Limited Learning on College Campuses", 45 percent of U.S. college students exhibit "no significant gains in learning" after two years in college.#7 Today, college students spend approximately 50% less time studying than U.S. college students did just a few decades ago.#835% of U.S. college students spend 5 hours or less studying per week.#950% of U.S. college students have never taken a class where they had to write more than 20 pages.#1032% of U.S. college students have never taken a class where they had to read more than 40 pages in a week.#11 U.S. college students spend 24% of their time sleeping, 51% of their time socializing and 7% of their time studying.#12 Federal statistics reveal that only 36 percent of the full-time students who began college in 2001 received a bachelor's degree within four years.#13Nearly half of all the graduate science students enrolled at colleges and universities in the United States are foreigners.#14 According to the Economic Policy Institute, the unemployment rate for college graduates younger than 25 years old was 9.3 percent in 2010.#15One-third of all college graduates end up taking jobs that don't even require college degrees.#16 In the United States today, over 18,000 parking lot attendants have college degrees.#17 In the United States today, 317,000 waiters and waitresses have college degrees.#18 In the United States today, approximately 365,000 cashiers have college degrees.#19 In the United States today, 24.5 percent of all retail salespersons have a college degree.#20 Once they get out into the "real world", 70% of college graduates wish that they had spent more time preparing for the "real world" while they were still in school.#21Approximately 14 percent of all students that graduate with student loan debt end up defaulting within 3 years of making their first student loan payment.http://www.citytowninfo.com/career-and-education-news/articles/georgetown-university-study-shows-a-bachelors-degree-in-stem-pays-off-11102002About 65 percent of individuals with bachelor's degrees in STEM subjects commanded greater salaries than those with master's degrees in non-STEM fields, according to a Georgetown press release. Likewise, 47 percent of college graduates with bachelor's degrees in STEM fields earn higher wages than those with doctoral degrees in non-STEM subjects.
  6. Edu-Impact.Com: Growing Importance of Universities with Large, Growing EndowmentsRecently visited Yang building at StanfordOne of the greenest buildings on the planetBut if it does not evolve in 20 years it will not be the greenest buildingVisited supercomputers – we have two at IBM Almaden – there was a time they were in the top 100 supercomputers in the world – not any more ….So a Moore’s law of buildings is more than cutting waste in half every year, it is also about the amount of time it takes to structural replace the material with newer and more modern materials that provide benefits…
  7. There is a conference nearly every week, and approx. ten publication every day…Service Science Knowledge Environmenthttp://sske.cloud.upb.ro/sskemw/index.php/Main_Page
  8. Bastiat: Economic HarmoniesRicardo: Principles of Political Economy and TaxationClark: Conditions of Economic ProgressRiordan: Stochastic Service Systems