Establishing SSME as a new academic discipline:
SSME Doctoral Workshop
People
Some Thoughts about Service
Science Research
Steve Street, IBM (UK) Ltd
Business
Service
Core
Technology
Fundamental
Skills
© 2007 IBM Corporation
Establishing SSME as a new academic discipline:
SSME Doctoral Workshop
People
Trying to start to think rationally about..
Some Thoughts about Service
Science Research ..?
Steve Street, IBM (UK) Ltd
Business
Service
Core
Technology
Fundamental
Skills
© 2007 IBM Corporation
Establishing SSME as a new academic discipline:
Services Research
 Content
 Problems
 Approaches
3
SSME Doctoral Workshop
Manchester 19 September 2008
© 2007 IBM Corporation
Background - Drivers
Ten Nations
US Employment History & Trends
Total 50% of World Wide Labor
A = Agriculture, G = Goods, S = Services
Nation
Labor
%
A
%
G
%
S
%
Service
Growth
China
21.0
50
15
35
191%
India
17.0
60
17
23
28%
U.S.
4.8
3
27
70
21%
Indonesia
3.9
45
16
39
35%
Brazil
3.0
23
24
53
20%
Russia
2.5
12
23
65
38%
Japan
2.4
5
25
70
40%
Nigeria
2.2
70
10
20
30%
Bangladesh
2.2
63
11
26
30%
Germany
1.4
3
33
64
44%
International Labor Organization
4
1980-2005
PC Age
2005
United States
(A) Agriculture:
Value from
harvesting nature
(G) Goods:
Value from
making products
(S) Services:
Value from enhancing the
capabilities of things (customizing,
distributing, etc.) and interactions between things
The largest labor force migration in human
history is underway, driven by global
communications, business and technology
growth, urbanization and low cost labor
Service Research and Innovation | Almaden Research Center
© 2007 IBM Corporation
© 2005 IBM Corporation
SSME: Service Science, Management, and Engineering
Background - Drivers - IBM Revenue and Profits Mix
Fundamental Service Science Challenge:
Scaling & learning curves are different for IT manufacturing and IT services
How to invest to make progress (efficiency effectiveness, and sustainable growth)?
5
IBM Research
© 2007 IBM Corporation
SSME: Service Science, Management, and Engineering
Background - Drivers - IBM Revenue and Profits Mix
So there’s an important Topic for Service Science to address
but ….
Fundamental Service Science Challenge:
Scaling & learning curves are different for IT manufacturing and IT services
How to invest to make progress (efficiency effectiveness, and sustainable growth)?
6
IBM Research
© 2007 IBM Corporation
Establishing SSME as a new academic discipline:
What is the Topic / What do we care about ?
Specific main Content & Type of ‘Services’
– IT Services, High Value Engineering , Financial Services -
Tangible
SMB
Manufacturing,
‘Engineering’
Public Sector
IT Services
Digital Media
Intangible
2C
7
SSME Doctoral Workshop
Financial
Services
2B
Manchester 19 September 2008
© 2007 IBM Corporation
Establishing SSME as a new academic discipline:
What is the Topic ?
Specific main Content & Type of ‘Services’
– IT Services, High Value Engineering , Financial Services -
Tangible
SMB
Public Sector
Digital Media
Intangible
2C
8
SSME Doctoral Workshop
Manufacturing,
‘Engineering’
Content High Value
Services
IT Services
There is still a
need to Focus
on relevant
content Understand the
phenomena
Financial
Services
2B
Manchester 19 September 2008
© 2007 IBM Corporation
Is that enough for a science?




Data (Observation)
Model (Theory)
Analytics (Testing Validity)
Take Action (Utility)
Mature
9




Scientific Method (Standards of Rigor)
Scientific Community (Body of Knowledge)
Scientific Instrumentation (Tools & Math)
Value of Science (Professional Relevance)
Emerging
Service Research and Innovation | Almaden Research Center
© 2007 IBM Corporation
© 2005 IBM Corporation
Is that enough for a science?




Data (Observation)
Model (Theory)
Analytics (Testing Validity)
Take Action (Utility)




Scientific Method (Standards of Rigor)
Scientific Community (Body of Knowledge)
Scientific Instrumentation (Tools & Math)
Value of Science (Professional Relevance)
Without Paradigm
With Paradigm
Mature
10
Emerging
Service Research and Innovation | Almaden Research Center
© 2007 IBM Corporation
© 2005 IBM Corporation
SSME benefits. Thread 2. Management subteam
Paradigm / What is ‘Service Science’ ?
IT
OM
etc
MKT
ENG
HR
*Service Science Management & Engineering (SSME) is the
application of scientific, engineering, and management disciplines to
Service Systems*
 It is an interdisciplinary activity which unites other areas based on
trans/cross-disciplinary collaboration
 It It focuses on 4 fundamental areas / sets of resources
A Model•
•
•
•
Business and Organizations ‘’
Technology ‘
People ‘
Information Technology
*Service System: a dynamic value co-creation configuration of
resources**
 Service systems are complex systems, and they are also a type of
‘system of systems,’ often both containing internal smaller service
systems as well as being contained within a broader serviceAn
system.
Object
 Service systems typically interact via value propositions, that may
create stable relationships between service systems in extended
value chains or networks.
11
IBM Confidential
September 26th, 2007
© 2007 IBM Corporation
Establishing SSME as a new academic discipline:
A Paradigm - A Value-Based Transactional Model of Services
 The elements of a Services Environment are a configuration of – Participants who have Values
– Objects which have Attributes (one of which is tangeabilty)
– Connections which connect Participants & Objects
 Service Transactions change the configuration of the Participants, Objects & Connections &
their attributes
– A key consideration in a Service Transaction is how the change of attributes is evaluated in each
participants set of Values
 Implications - using this model of Services a couple of more or less immediate implications
follow – Models of Services –
–
'Front Stage' / 'Back Stage' - the paramount significance of 'Front Stage' / 'Back Stage' is not obvious. Clearly different
connections have different characteristics but essentially there is a connected NW of participants, there is no 'a priori'
reason for assuming one set of connections all has one set of characteristics or that these are particularly significant or not
'Products' / 'Services' - each element of the Services Environment has a set of Attributes / Characteristics of which
tangeability is only one. There is no 'a priori' reason to assume that being physical is a particularly significant attribute in the
Value set of all participants. So the 'product' v 'service' debate is not obviously so significant
– Novel Types of Services –
It is possible to envisage types of service transactions that make no change to any physical attribute .. and in fact that is
pretty well what those 'Red Letter' days are
– Variability of Services –
–
As participants do not exist standalone and the constraints on the Values that a C(ustomer) deploys within a transaction are
likely to be less constrained than those of a 'B' Customer then one would anticipate that there will be more opportunity for
variability in Service Transactions that appeal to C customers than B ones.
A corrollary is that as smaller B customers will have less explicit constraints in the Values they can deploy, there will be
more opportunity for variability in Service Transactions that appeal to smaller B versus larger B customers
Steve Street ( steve_street@uk.ibm.com ) Sep 07
12
SSME Doctoral Workshop
Manchester 19 September 2008
© 2007 IBM Corporation
Establishing SSME as a new academic discipline:
A Paradigm - A Value-Based Transactional Model of Services
 The elements of a Services Environment are a configuration of – Participants who have Values
– Objects which have Attributes (one of which is tangeabilty)
– Connections which connect Participants & Objects
Now is the time
to build & test
the paradigm
 Service Transactions change the configuration of the Participants, Objects & Connections &
their attributes
– A key consideration in a Service Transaction is how the change of attributes is evaluated in each
participants set of Values
 Implications - using this model of Services a couple of more or less immediate implications
follow – Models of Services –
–
'Front Stage' / 'Back Stage' - the paramount significance of 'Front Stage' / 'Back Stage' is not obvious. Clearly different
connections have different characteristics but essentially there is a connected NW of participants, there is no 'a priori'
reason for assuming one set of connections all has one set of characteristics or that these are particularly significant or not
'Products' / 'Services' - each element of the Services Environment has a set of Attributes / Characteristics of which
tangeability is only one. There is no 'a priori' reason to assume that being physical is a particularly significant attribute in the
Value set of all participants. So the 'product' v 'service' debate is not obviously so significant
– Novel Types of Services –
It is possible to envisage types of service transactions that make no change to any physical attribute .. and in fact that is
pretty well what those 'Red Letter' days are
– Variability of Services –
–
As participants do not exist standalone and the constraints on the Values that a C(ustomer) deploys within a transaction are
likely to be less constrained than those of a 'B' Customer then one would anticipate that there will be more opportunity for
variability in Service Transactions that appeal to C customers than B ones.
A corrollary is that as smaller B customers will have less explicit constraints in the Values they can deploy, there will be
more opportunity for variability in Service Transactions that appeal to smaller B versus larger B customers
Steve Street ( steve_street@uk.ibm.com ) Sep 07
13
SSME Doctoral Workshop
Manchester 19 September 2008
© 2007 IBM Corporation
Cambridge Service Science, Management, and Engineering Symposium
What we need from you…
Help with the questions we face as a Globally Integrated Enterprise
How do we
tap the Power of
Globalization?
How do we deliver unique
value in an open,
collaborative ecosystem?
Manage Value
in an
Ecosystem of
Increasingly
Specialized
Entities
Leverage
Global
Assets
Serve
Distinct Global
Markets
Build a
Specialized
Enterprise
Globally
Integrated
Enterprise
Enable
Collaboration
Address
Shared Risk
and Control
14
How do we forge a
strategy for
Specialization?
IBM @ the Cambridge SSME Symposium | Cambridge 14-15 July 2007
What specific
problems
bother
Industrialists ?
© 2007 IBM Corporation
Cambridge Service Science, Management, and Engineering Symposium
What we need from you…
Methods that directly support our Services Business
 Service Design
– Methods, Models, Organisation, Paradigms
 Innovation Patterns
 Investment Models for Services
Higher density value co-creation
configurations
– Service Value, Measurement & Legitimacy
 Risk Assessment models that span
company boundaries / ecosystems
 Pricing & Contracting models for
annuity based services
 Services IP
– Protection & Management
 …
Breakthrough?
They will be
articulated in
many ways
Service System (Value Creating System)
1. People (division of labor, multi-tasking)
2. Technology
3. Value Propositions Connecting
Internal and External Service Systems
4. Shared Information (language, laws, measures)
 A “Moore’s Law” for services?
15
IBM @ the Cambridge SSME Symposium | Cambridge 14-15 July 2007
© 2007 IBM Corporation
Establishing SSME as a new academic discipline:
Content / Key Business Problems
 Value
– Understanding
– Measuring
– Complex Ecosystems
But these are
the essential
focus areas
 Risk
– Minimising & Managing
 Delivery
– Optimisation
16
SSME Doctoral Workshop
Manchester 19 September 2008
© 2007 IBM Corporation
Establishing SSME as a new academic discipline:
Approach / ‘The Three Dimensional Model’
Interactional Expertise Across Other Fields
Management
(Business)
Across industries
Across cultures
Across functions
Across disciplines
=
More experienced
More adaptive
More collaborative
Social Science
(People)
Tower of Babel
“Biggest problem in business
is people don’t know how to
talk to other people in the
language they understand.”
Engineering
(Technology)
Charles Holliday, CEO Dupont
Core Field
of Study
Together
17
SSME Doctoral Workshop
Manchester 19 September 2008
© 2007 IBM Corporation
Establishing SSME as a new academic discipline:
A framework for Service Science Curricula
5 Element Model 1. Service Core –
 ‘Key Service Concepts’ & Methods
 the ‘Integrative element’
2. Business –
 Key ‘Business’ related concepts as they
relate to Services
3. People –
 Awareness & high understanding of key
concepts the interaction of People as
individuals, as members of a society
4. Technology –
 Awareness & high level understanding
of key concepts about how key
technologies can be applied to Services
5. Fundamental Skills –
 ‘other methods’ / ‘other ways of thinking’
of value when thinking about Services
18
Thought Leadership Workshop
Manchester 17-18 September 2008
Slide Layout
© 2007 IBM Corporation
Establishing SSME as a new academic discipline:
Approach / Trying the Three Dimensional Model
IT
 Multi Disciplinary
 Explicit connections
between subject areas
etc
MKT
ENG
 Contemporary Case
Studies
OM
HR
.. Bridging Knowledge
EXPERIMENT !
What are the
most effective
approaches ?
'If you want a motorcycle, go to Chongqing …
Although this dusty central Chinese city of drab office buildings and perpetually grey skies is better known as the gateway
to the enormous Three Gorges Dam, it is also the two-wheeler capital of the world. Led by the region's pioneers, China
now makes half the world's motorcycles. But more important than the numbers produced is the way these motorcycles are
made—especially the way designers, suppliers and manufacturers have organised themselves into a dynamic and
entrepreneurial network.
Unlike state-run firms, the city's private-sector upstarts, such as Longxin and Zongshen, do not have big foreign partners
like Honda or Suzuki with deep pockets and proven designs. So they came up with a different business model, one that
was simpler and more flexible. Instead of dictating every detail of the parts they want from their suppliers, the motorcyclemakers specify only the important features, like size and weight, and let outside designers improvise.
This so-called “localised modularisation” approach has been very successful and delivered big cost reductions and quality
improvements, says John Seely Brown, an innovation expert who used to head the legendary Xerox PARC research
centre. It is one example of the sort of business-model innovation which he insists is far more radical than conventional
product or process innovation'
19
SSME Doctoral Workshop
Manchester 19 September 2008
© 2007 IBM Corporation
Establishing SSME as a new academic discipline:
Summary
 Content
– Content is High Value Services
 Paradigms
– Foundations - Paradigms / Theoretical Frameworks
 Problems
– Key Problems - Value & Risk
 Approaches
– Interdisciplinary
– Partnership
20
SSME Doctoral Workshop
Manchester 19 September 2008
© 2007 IBM Corporation
Establishing SSME as a new academic discipline:
SSME Doctoral Workshop
Thanks for your
questions and
comments!
People
Business
Service
Core
Technology
Steve Street ( steve_street@uk.ibm.com )
Fundamental
Skills
© 2007 IBM Corporation