1.Service Science and Serviceology Dr. James C. (Jim) Spohrer IBM Innovation Champion Director, IBM Global University Programs ICServ 2013, Tokyo, Japan, October 16, 2013

2. ICServ 2013 Organizing CommitteeMasaaki MOCHIMARU 3. Service AmplificationProf. Hiroyuki YOSHIKAWAYoshikawa, H. (2008). Introduction to service engineering. SynthesiologyEnglish edition, 1(2), 103-113. 4. Service Science Knowledge Environment: Disciplines (23), Professional Associations (39), Journals (20), Conferences (31), Workshops (7) DisciplineAssociationMarketingAMAOperations ResearchINFORMSInformation SystemsAISComputer Science and EngineeringACM, IEEEHuman FactorsAHFEOperations ManagementPOMSSystems ScienceISSSDesignSDNSystems EngineeringIIEmultipleServiceology(SSME+DAPP)ISSIPIBM SSME Centennial Icon of Progress 5. ISSIP Ambassadors Global Network (http://www.issip.org) 6. The Well-Read Service Scientist (The top 300 papers together over 100,000 citations) http://service-science.info/archives/2708 7. Service-Dominant LogicProf. Stephen VARGOProf. Robert LUSCHVargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of marketing, 1-17. (Oct. 2013, ~4500 citations)Claude Frdric BastiatDavid RicardoColin ClarkRichard NormannJohn Riordan 8. Whats Next Decade Bringing? Building on the Foundation Next Generation of Service Innovators From I to T to Pi and Beyond! Platform Technologies and Smart Service Systems Accelerating Transform of Business & Society Transformation of Education Service System Towards a Moores Law of Higher Education Service Science (SSME+DAPP) Textbooks MOOCs (Massively-Open On-Line Courses) Holistic Service System Modeling Tools Order of Magnitude Observation 9. Next Generation: T-Shaped Adaptive InnovatorsMany disciplines Many sectors Many regions/cultures (understanding & communications)Deep in one region/cultureDeep in one sectorDeep in one discipline 10. Welcome to the new age of platform technologies and smarter service systems for every sector of business and societynested, networks systems 11. The Future: My Mentors The future is already here at universities, it is just not yet well distributed With apologies to Gibson The best way to predict the future is to inspired the next generation of students to build it better With apologies to Kay 12. Example: Are there scale laws of service innovation year-over-year compounding effects? ProblemsYear 1: Year 2:20%Year 3: Input: Student quality Process: Faculty motivation Output: Industry fit20%20% Augmentations A: -20% eLearning certification B. +10% Faculty interest tuning C. +10% On-the-job skills tuning. Year N:.......20%After a decade the course may look quite different Service systems are learning systems: productivity, quality, etc. 12 13. Textbooks & MOOCsApply the 6 principles of service thinkingAll value is co-created Service systems we live and work in Componentized business architectureGlobal-mobile-social scalable platforms Run-Transform-Innovate Multi-sided metrics 1/11/13CVC Group, LLC for Hult International Business School13 14. I am nested in at least 10 systems LevelAKA~No. People~No. EntitiesExample0. IndividualPerson110,000,000,000Jim1. FamilyHousehold101,000,000,000Spohrers2.NeighborhoodStreet100100,000,000Kensington3. CommunityBlock100010,000,000Bird Land4. Urban-ZoneDistrict10,0001,000,000SC Unified5. Urban-CenterCity100,0000100,000Santa Clara6.Metro-RegionCounty1,000,00010,000SC County7. StateProvince10,000,0001,000CA8. NationCountry100,000,000100USA9. ContinentUnion1,000,000,00010NAFTA10. PlanetWorld10,000,000,0001UN14 15. Next Generation: T-Shaped Adaptive InnovatorsMany disciplines Many sectors Many regions/cultures (understanding & communications)Deep in one region/cultureDeep in one sectorDeep in one discipline 16. IBM SSME Centennial Icon of Progress IBM Smarter PlanetStudents For Smarter Planet: I have MET the future, and its students! Jim Spohrer IBM UP Worldwide PICMET 2013, San Jose, CA August 1st, 2013Nano-Bio-Info-Cogno 17. Todays Talk: S4SP Some statistics and brief discipline histories Some quotes Some strategy Sciences and Applied Arts: IBM UP Strategy Some possible futures 18. Some Stats: PICMET 2013 Sectors Sector TransGov (36)EnvironThings (36)Things EnergyEdu (37)ICT BuidlingHealth (22)ICT (48)Retail FinBiz HealthFinance Biz (93)Edu Gov Other 19. Some Stats: PICMET 2013 Regions Sector NAWorld (39)MexSANA (59)EU Africa RussEEuJapanKorea (50)MexSA (20)ME ChinaEU (36)India JapanKorea ASEANChina (60)Africa (26)World Other 20. Sciences & Applied Arts All sciences study systems Physics, Chemistry, Biology, Information and Computer Science, Service Science, etc. All applied arts change systems Management, Engineering, Design Arts, Public Policy seek to apply rigorous scientific knowledge to create better worlds to inhabit 21. Some Short Histories: Engineering Management Discipline (service-science.info/archives/3138) 1950s & 1960s (Demand and Origins, Al Rubenstein et al.) World Events: Engineers promoted into management & executive ranks IEEE Transactions of Engineering Management1970s & 1980s (Growth in many places, NSF Erik Block & Richie Henrick, et al.) World Events: Oil crisis and competitiveness concerns NSF adds engineering emphasis and computer science Industrial Engineering (IE) and Management Science (OR) degree programs World Events: Japans success and competitiveness concerns NSF Meeting, Textbooks, Growth in Degree programs and courses1990s to present (Growth, Dundar Kocaoglu, Tarek Kahlil, et al.) World Events: Internet growth and business school minor PICMET, IAMOT, IRI, and others ( IEEE, IIE, etc.) Challenges going forward Academic Silos: Engineering (accreditation) and Management (minor) Hiring graduates into industry and industry participation in academic communities Opportunities going forward Strong interest in Asia 22. Information & Computer Science The single strongest impulse for introducing computers on campuses in the mid-1950s did not come from the schools themselves or from any federal agency, but instead from IBM. 23. Data Science Data science incorporates varying elements and builds on techniques and theories from many fields with the goal of extracting meaning from data and creating data products. 24. By 2020, 35 Zettabytes per year Whats big today will look small in a decade 2 Billion Internet users in 2011Google processesBy 2013, annual internet traffic will reach 667 Exabytesin a single dayFacebook processes 10 Terabytes of data every dayThe Hadron Collider at CERN generates 40 Terabytes of data / sec> 24 Petabytes of dataTwitter processes 7 Terabytes of data every day 250,000,000 tweetsFor every session, NY Stock Exchange captures 1 Terabyte of trade information 25. Urban Science Urban science is an interdisciplinary field that studies diverse urban issues and problems 26. Service Science The transdisciplinary study of service, the application of knowledge for mutual benefits (value co-creation phenomena), in an ecology of interacting many-tomany, nested, networked viable service system entities. 27. Service Science Service System Entities Types: Businesses, Universities, Governments, etc. Nested & Networked Globally SD Logic (A2A; Resource Integrators)Value Co-Creation Interactions Types: Value-Proposition & Governance Mech-based Collaboration & Competition Blended SD Logic (Operant & Operant Resources)Builds On Decades of Service Research (Marketing, Operations, etc.) SSME+D; From I to T to Pi-shapes and beyond! T Summit (March 24-25, 2014)Measures Productivity, Quality, Compliance, Sustainable Innovation Holistic Service Systems Quality of Life, Balance Challenge & Routine Innovativeness, Equity, Sustainability, Resilience 28. NSF 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. 29. NSF LinkedIn Group 30. Welcome to the new age of platform technologies and smarter service systems for every sector of business and societynested, networks systems 31. Technology Platforms and Smarter Service Systems Rapidly Scale The Benefits of New Knowledge: Customers As Co-Creators Spreads Faster Than Customers as Consumers 32. Innovation Framework Z2B = Zero to a Billion in Revenue in a under a Decade University startups (e.g., Google, Facebook, etc.) Challenge: Find a Moores Law for Service System Scaling Service Science Fundamentals Service is the application of knowledge for mutual benefit of entities (value co-creation processes) Service innovations scale the benefits of new knowledge globally, rapidly, and profitably Smart service systems include the customer, provider, and other entities as sources of capabilities, resources, demand, constraints, rights, responsibiliti es in value co-creation processes Technology and organizational platforms support rapid scaling processes (smart phones, franchises, etc.) 33. Innovation Framework: Structure Universities & StartupsSmart Service SystemsTechnology PlatformsIntegrators & API EcologyCustomersMIT, Stanford, Berkeley, SJSU, Purdue, UUtah, UArizona Tucson, LinneausU (Sweden), Aalto (Finland), and major teaching, research, and startup universities in many nations globally & their startupsSmart Phone, Devices, Appliances, FurnitureiPhone, AndroidApple, Google, Microsoft, Samsung, IKEAIndividuals: Personal and Employee PSS & DSSSmart Vehicles, Grid, Roads, Stores, Homes, CampusesDriverless CarGoogle, Toyota, Audi, Ford, Deere, IKEA, Starbucks, TataIndividuals: Personal & Employee PSS & DSSSmart Schools, Hospitals, BusinessesWatson, CRM, IBM, HP, Cisco, ERP, HCM, SAP, Amazon, SCM, PRM, EC2 SalesforceSmart Cities, Smarter City Regions, States, Intelligent Nations, Planet Operation CenterIBM, HP, Cisco, Siemens, AccentureInstitutions: Enterprise PSS & DSS Institutions: Enterprise PSS & DSS 34. Innovation Framework: Funders SourceMotivationMechanismsGovernmentCompetitiveness, Close knowledge gapsResearch and SBIR grants, IRBs and OffsetsVenture CapitalROIEquity Investments, Exits (Go public, acquisitions)Crowd-funding & Prospective CustomerfundingOutcomesKickstarter.com, X-Prize, Challenges, Kaggle.com, NetflixIndustry FundingNew Offerings, Platform & Ecosystem DevelopmentIP Agreements & Open Innovation GrantsFoundationsSocial BenefitsGrantsREDHigh Skill/High Pay JobsTax incentives, Property discounts 35. Innovation Framework: Players RoleSuppliesBenefitsUniversity FacultyCourse content/coachingCourse improvementsUniversity StudentsLearning by DoingBecome more T-shapedIndustry MentorsReal-world challengesTalent pipelineProfessional AssociationMentorship templatesMembers developmentUniversity StartupsOffering for customersPotential customersPlatform ProviderPotential to scaleNew usersEcosystem & SI ProviderPotential to scaleNew offeringsCustomerDemandOutcomesFunderInvestment(See previous funder slide)Service Science FacultyOrchestration & ExpertiseClose knowledge gaps 36. Whats UP at IBM?37 37. Those in-the-know say, IBM is helping to build a Smarter Planet38 38. Smarter Planet = Smarter SystemsINSTRUMENTEDINTERCONNECTEDINTELLIGENTWe 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 NETWORKSPRODUCTS WORKFORCE39SUPPLY CHAINCOMMUNICATIONS TRANSPORTATIONBUILDINGS 39. City challengesRyan Chin: Smart Cities40 40. Smart Startup: Streetline41 41. Smart Neonatal ICU42 42. Land-population-energy-carbonCarlo Ratti: Senseable Cities43 43. 44 44. 45 45. Four commandments for cities of the future: Eduardo Paes at TED201246 46. SC IOC as a Platform for Innovation47 47. Exclusive Networking and Mentoring eventIdentifies entrepreneurs developing businesses aligning with our Smarter Planet vision. SmartCamp finalists raised more than $50m and received significant press in Wall Street Journal, Forbes and Bloomberg inHealthcare SmartCamp kickstart - Miami - May 15, 2012 Apply by April 27thSmarterCities SmartCamp kickstart - New York - May 24, 2012 Apply by May 3rdNorth America Regional SmartCamp - Boston - June 20 & 21, 2012 Apply by May 25thapply now at www.ibm.com/isv/startup/smartcamp 4848North America SmartCamp lead: Eric Apse, eapse@us.ibm.com University Programs lead: Dawn Tew, dawn2@us.ibm.com 48. What are the trends?Digital Immigrant Born: 1988 Graduated College: 201249Digital Native Born: 2012 Enters College: 2030 49. Transportation: Self-driving carsSteve Mahan: Test Driver 50 50. Water: Circular Economy51 51. Manufacturing: Circular Economy Baxter: Building the FutureRyan Chin: Urban Mobility 52Maker-Bot: Replicator 2 52. Energy: Artificial Leaf53 53. Technology: Cognitive Computing54 54. Example: Leading Through Connections with Universities Collaborate with IBM Research to Design Watson for the Grand Challenge of Jeopardy !Assisted in the development of the Open Advancement of Question-Answering Initiative (OAQA) architecture and methodology Provided technological advancement enabling a computing system to remember the full interaction, rather than treating every question like the first one - simulating a real dialogueExplored advanced machine learning techniques along with rich text representations based on syntactic and semantic structures for the Watsons optimizationPioneered an online natural language question answering system called START, which provided the ability to answer questions with high precision using information from semi-structured and structured information repositoriesWorked on a visualization component to visually explain to external audiences the massively parallel analytics skills it takes for the Watson computing system to break down a question and formulate a rapid and accurate response to rival a human brainFocused on large-scale Worked on information retrieval information and text search technologies extraction, parsing, and knowledge inference technologieshttp://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html 5555Worked to extend the capabilities of Watson, with a focus on extensive common sense knowledge 55. Buildings: Circular Economy China Broad Group: 30 Stories in 15 Days56 56. Retail & Hospitality: Social Media57 57. Finance: Crowd Funding58 58. Health: Robotics & 3D Printing59 59. Education: Challenge-Based Sport60 60. Government: Parameterized Meta-Rules Innovativeness Equity Improve weakest link Sustainability Resiliency61 61. Competitive Parity Achieved. The NFL touts paritythe idea that any team can win on any given Sunday. But this year, parity has truly run wild. Through six weeks, 11 of the NFL's 32 teams are 3-3. The Journal asked the statistical gurus of Massey-Peabody Analytics to run a coin-flip simulation62 62. 2030 and Beyond. Government, Health, Education, Finance, etc.63 63. University: Four Missions Knowledge 1. Transfer (Teaching) 2. Creation (Research) 3. Application (Benefits) Commerce/Entrepreneurship Governance/Policymaking 4. Re-Integration (Challenge) Innovativeness, Equity Sustainability, ResilienceNationFor-profits Nested, Networked Holistic Service Systems Flows Development Governance64Non-profitsState/Province City/MetroU-BEE Job Creator/Sustainer Cultural & Conference HotelsUniversity College K-12WorkerFamily(professional)Hospital Medical Research(household)Third Mission (Apply to Create Value) is about U-BEEs = University-Based Entrepreneurial Ecosystems 64. Universities Matter #1 9 Japan8y = 0,7489x + 0,3534 R = 0,7197ChinaGermany% global GDP65 France 4United KingdomItaly3 Russia 2Spain CanadaIndia Mexico Turkey1BrazilSouth Korea Australia Netherlands Sweden0 0123456789% top 500 universitiesNations % WW GDP and % Top 500 Universities (2009 Data)10/16/2013 IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)65 65. Universities Matter #2But it can be costly, American student loan debt is over $900M10/16/2013 IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)66 66. Universities Matter #3When we combined the impact of Harvards 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.10/16/2013 IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)67 67. Universities Matter #4 What is a U-BEE? A local job creator/sustainer Innovating whole service in all regions worldwide http://www.service-science.info/archives/1056 NationThe future is already here (at universities), it is just not evenly distributed.For-profitsState/Province City/RegionU-BEE Job Creator/Sustainer Cultural & Conference HotelsThe best way to predict the future is to (inspire the next generation of students to) build it better.Non-profitsUniversity College K-12WorkerFamily(professional)Hospital Medical Research(household)U-BEEs = University-Based Entrepreneurial Ecosystems 10/16/2013 IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)68 68. On Campus IBMers Up-Skill Cycle= New Venture = Acquisition= Graduates with Smarter Planet skills= IBMer moving from mature BU to acquisition= High-Growth Acquisition/ New IBM BU (Growing)= IBMer moving into University-Region1On Campus IBMer role (help create graduates with Smarter-Planet skills, help create Smarter Planet oriented new ventures; Refresh skillsIBMUniversity-Region269 10/16/2013= High-Productivity/ Mature IBM BU (Shrinking) IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)69 69. Some more strategy IBM Platforms for Entrepreneurs Smarter Cities Intelligent Operations Center Platform IBM helping university startups to scale up (growth) 10/16/2013 IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)70 70. Some Strategy 71. Some Quotes The best way to predict the future is to inspire the next generation of students to build it better The future is already here at universities it is just not well distributed The core values of universities are learning, discovery, and engagement All viable businesses and governments learn to get smarter at scaling the benefits of new knowledge to their customers and citizens. 72. 6 Rs Research (Collaborate) Readiness (Skills) Recruiting (Jobs) Revenue (Solutions) Responsibility (Volunteers) Regions (Smarter Cities, Startups & Workforce) COMMUNICATIONSPRODUCTS WORKFORCE10/16/2013SUPPLY CHAINTRANSPORTATION IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)BUILDINGS73 73. What is a T-shaped Student?Many disciplines Many sectors Many regions/cultures (understanding & communications)Deep in one region/cultureDeep in one sectorDeep in one discipline 10/16/2013 IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)74 74. 10/16/2013 IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)75 75. Goods-Dominant Logic (GDL): Sector Growth Argument 76. Tomorrow: I am the block that will be made into product X for customer Y. McKinsey.com/Insights (June 2013) The Internet of Things and the future of manufacturing Industrial Revolutions: Manufacturing Tech Platforms 1. Steam Engine 2. Conveyor Belt 3. IT and Automation (Phase 1) 4. Internet of Things/Logistics (Phase 2) After the fourth industrial revolution, there will no longer be a difference between information and materials, because products will be inextricably linked to their information. 77. Today: Servitization Rolls Royce: Power By The Hour 78. Servitization Start with ay traditional product that is sold to customers Make the product part of a smart service system Instrument it (sensors) Set-up an intelligent operation center to monitor all products performance across their life-cycles Use big data analytics to determine how to improve product performance, efficiency, maintenance, etc. Offer customer the product-performance-as-a-service with financing Customer benefits from cost-savings, predictability Provider benefits margin-improvements, predictability The product becomes a platform technology for innovative university startups that teach about it, and research it 79. My tweets rethinking categories of manufacturing as service-like @McKinsey_MGI: @TheEconomist on #manufacturing http://t.co/ngsa19EO Nov 22, 2012 @auerswald pendulum swinging back now @Forbes: Manufacturing may be coming back to the U.S. - for the long term. http://t.co/2KcjdrCX Sep 22, 2012 Baxter the $22K manufacturing robot looks like a butler http://t.co/mbfAKtUn Building robots small & medium-size companies, mini-computers? Sep 19, 2012 Good read @wadhwa: Forbes: The End of Chinese Manufacturing & Rebirth of US Industry http://t.co/vVqD0jFW" watch this http://t.co/SE4uSkB2 Aug 17, 2012 Automating clothing manufacture http://t.co/H9oOONIH Jul 21, 2012 transforming manufacturing product and service innovation with people, process and technology #cisco http://t.co/UYuxB5zz @SamMikhailCPE Jul 21, 2012 RT @grapealope: "By 2020, everything will be personalized in the manufacturing field." Sophie Vandebroek (hopefully in healthcare too!) ... Jul 19, 2012 @SamMikhailCPE: Apple wants U.S. #manufacturing, but it ain't that easy http://t.co/2ftMXejH deeper analysis please beyond dorms unions Jul 04, 2012 RT @iftf: How Will Employment Change with the Expansion of New Technologieslike Roboticsin Manufacturing? - http://t.co/24HeSPmV #Robots Jul 03, 2012 RT @GreenbizStartup: RT @Richard_Florida Japanese revolutionized manufacturing by harnessing workers' knowledge, now in service http://t ... Jun 27, 2012 Manufacturing as local recycling service http://t.co/RrcLMipv key part of smarter communities http://t.co/JmnngFDL Jun 20, 2012 80. My Tweets (Continued) RT @4byoung: Tech manufacturing: A disaster waiting to happen? http://t.co/CG3eSR3N Jun 19, 2012 RT @timoreilly: 5% of manufacturing jobs went unfilled last year due to lack of skilled applicants http://t.co/WNa3Bzol Jun 19, 2012 America makes more today than ever. How&what have changed @SamMikhailCPE: The Rebirth of American #Manufacturing http://t.co/qVMoTo64 May 27, 2012 RT @auerswald: RT @emeka_okafor: "Making things with a 3D printer changes the rules of #manufacturing" http://t.co/ttUZLNYO #3dprinting Apr 20, 2012 @auerswald: RT @emeka_okafor: 'success of Local Motors, the first open source car?' http://t.co/ROIoeQ4D... manufacturing. micro-factory Mar 14, 2012 Fortune 50 original equipment manufacturers, access to powerful computer tools provides competitive advantage http://t.co/opzhUU0y Mar 11, 2012 MAKE: An Amercan Manufacturing Movement http://t.co/DjI8nhzr Mar 11, 2012 RT @autodesk: Story by @wadhwa on future of Americas manufacturing sector & the developments @carlbass sees in defining new jobs http:/ ... Mar 08, 2012 @auerswald between 1995 and 2002 US lost 2M manufacturing jobs; during same period China lost 15M; Weiner was right "The Coming Peosperity" Mar 06, 2012 Re-industrialize the US? Yes, and here is how - manufacturing as a local recycling service http://t.co/cIwA2hv7 Mar 05, 2012 RT @HarvardBiz Manufacturing is being transformed - It's Time to Bring Manufacturing Back to the U.S. http://t.co/oZOYumXT local recycling Feb 28, 2012 81. My Tweets (Continued) RT @KurzweilAINews: Redesigning people: how medtech could expand beyond the injured: The exoskeleton manufactured by Ekso Bionics in... ... Feb 28, 2012 @livingarchitect manufacturing jobs 8% 2010 to 7% 2020. Professional services health ed predicted to grow the fastest http://t.co/Y9h3UHjs Feb 08, 2012 @went1955 Historically manufacturing jobs seen as one of few sources of well-paying jobs for less-educated workers http://t.co/KEFmHXZ3 Feb 05, 2012 RT @went1955: Do Manufacturers Need Special Treatment? Economist Christina Romer in New York Times http://t.co/gUUkYGcJ Feb 05, 2012 RT @rossdawson: RT @DanyDeGrave: Crowdsourced Capital and On-Demand Digital Fabrication #3D #manufacturing #crowdsourcing http://t.co/04 ... Feb 04, 2012 @auerswald @wadhwa old-style manufacturing jobs going (off-shore to China) going (off-people to automation) gone (3D printable automation) Feb 01, 2012 RT @auerswald: RT @wadhwa: Over the next few years, we are going to see dramatic changes in manufacturing, design. Even BYO cars! http:/ ... Feb 01, 2012 RT @daviding: The structural shift from manufacturing economy to service economy can be denied or encouraged by so... http://t.co/HlhkXf ... Feb 01, 2012 RT @ShaanHurley: Watch @carlbass and @wadhwa discuss education, innovation, and future of manufacturing. #whichwaynext http://t.co/2NbgiIKL Jan 30, 2012 Future supply chains modular manufacturing with most parts coming from local recycling & a few high-tech import parts http://t.co/XfuwWbH4 Jan 26, 2012 Long and slow - but worth watching - return to local manufacturing as a service with mini-mills disruptive innovation http://t.co/dXlfQYRS Jan 26, 2012 82. My Tweets (continued) RT @justinwolfers: Why will Obama single out "an economy built on American manufacturing" in the #SOTU? What's wrong with those of us wi ... Jan 24, 2012 RT @KurzweilAINews: Microreactors enable safer, more efficient manufacturing: Manufacturing products and drugs will be safer and mor... ... Jan 23, 2012 @timoreilly @johnmaeda @techreview @ydeologi US makes 19.4% world's manufactured goodssecond to China's 19.8% https://t.co/Uk2isnTj Jan 23, 2012 RT @timoreilly: RT @johnmaeda On the relation between manufacturing & innovation. http://t.co/T5rnzIPv via @techreview @ydeologi Jan 23, 2012 RT @KurzweilAINews: Raspberry Pi starts manufacturing an ARM GNU/Linux box for $25: Raspberry Pi, a $25 computer, has gone into prod... ... Jan 16, 2012 RT @masscustom: Interesting: Difficulties of established #3dprinting manufacturers to mimik disruptive user innovation @MakerBot: http:/ ... Jan 15, 2012 RT @auerswald: RT @trueventures: How AI and robotics will change manufacturing http://t.co/HHOqT4Fs from @wadhwa and VentureBeat Jan 14, 2012 Smart cities rethink mobility http://t.co/807F5KAY MIT Chin's vision local manufacturing of body, in wheel motor battery grid Jan 08, 2012 RT @Richard_Florida: US total compensation for manufacturing workers now 14th (BLS) abt same as Ireland/ Italy - @erikbryn - http://t.co ... Dec 30, 2011 RT @erikbryn: My MIT colleague Rod Brooks discusses how America can use robots to compete with China in manufacturing: http://t.co/JRjx0 ... Dec 23, 2011 @ireneclng good job! "And service systems are evolving. Future services include manufacturing, future of manufacturing embedded in services" Dec 18, 2011 83. My Tweets (continued) The loss of manufacturing jobs often cited as a marker of Americas decline... Dr. Atala printed a kidney on stage http://t.co/TQQdqM65 Dec 03, 2011 RT @KurzweilAINews: Disruptions: the 3-D printing free-for-all: A 3-D printer at home will not only change the nature of manufacturi... ... Nov 15, 2011 Building Materials Reuse deconstruction curriculum for community colleges: manufacturing as a local recycling service http://t.co/1lBuutm Jul 22, 2011 RT @KurzweilAINews: Manufacturers turn to 3-D printing: This May, General Electric announced it would intensify focus on additive ... ... Jul 22, 2011 Manufacturing as a Local Recycling Service: Janet Unruh has the right idea in Recycle Everything. See http://www... http://bit.ly/nxg0qw Jul 09, 2011 Manufacturing as a Printing Service: Z Corp Burlington MA from National Geographic on 3D printing of tools. See http://bit.ly/mYyU5m Jul 09, 2011 Economist Debate: Manufacturing: Can a national economy thrive without a large manufacturing sector? See the res... http://bit.ly/qfZ0iS Jul 09, 2011 84. My Tweets: Summary Renaissance of Regional Economic Development (RED) The Observatory of Economic Complexity 85. And Beyond Utility Fog Ultimate vision of material and energy flows inseparable with information flows Universal Building Block Utility Fog: Manufactured Things Cells: Living Things 86. References The Circular Economy (Video) Ellen MacArthur Foundationhttp://www.youtube.com/watch?v=zCRKvDyyHmI The Internet of Things and the future of manufacturing (Interview) McKinsey http://www.mckinsey.com/Insights/Business_Technology/The_ Internet_of_Things_and_the_future_of_manufacturing?cid=ot her-eml-alt-mip-mck-oth-1306 Changing the Dominant Logic: http://blog.egonl.com/?m=200902 Rolls Royce: http://www.economist.com/node/18073351 The Observatory of Economic Complexity http://atlas.media.mit.edu Utility Fog: http://en.wikipedia.org/wiki/Utility_fog Utility Fog: The Stuff That Dreams Are Made Of: http://www.kurzweilai.net/utility-fog-the-stuff-that-dreams-aremade-of 87. Silicon Valley: How many places? Help win a war? Terman Help launch new industries? Shockley Help launch many sub-industries? RAMAC Help improve improvement? Lean Startups Steve Blank: Why You Must Test Your Hypotheses http://www.youtube.com/watch?v=_w-NUOjwMto Boast so many great universities! Stanford, Berkeley, UCSC, UCSF, SJSU, etc. 88. IBM: How many companies? 1. Make it to 100? IBM Centennial Film: 100 X 100 - A century of achievements that have changed the world 2. Achieve #1 Patents > 20 yrs in a row? Twenty Years Watson: Science Behind An Answer http://www.youtube.com/watch?v=DywO4zksfXw5 in 5: New Capabilities http://www.youtube.com/watch?v=YwfJVwknvRo4.Make ~100 acquisitions of big companies in a decade? Partnerworld http://www.youtube.com/watch?v=39jtNUGgmd43. Make computers smarter? http://www-03.ibm.com/press/us/en/pressrelease/40070.wssBoy And His Atom http://www.youtube.com/watch?v=39jtNUGgmd4http://www.youtube.com/watch?v=Iivc-7dLLhw5. Help make a Smarter Planet? Nation by nation, state by state, city by city http://www.youtube.com/watch?v=2BadLt6XkyA http://www.youtube.com/watch?v=vuBBGYFonXMInternet of Thing http://www.youtube.com/watch?v=sfEbMV295Kk 89. Questions What is ISSIP? What is a service platform? What is service science? What is a T-shaped professional? How is this related to your work at IBM with universities? What are the important future trends you see? 90. What is ISSIP? Pronounced I-ZIP International Society of Service Innovation Professionals SIG Education & Research T-shapes Service Science 10/16/2013 IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)91 91. What is a service platform? Access Places & Entities Scale benefits Of new knowledge Globally & rapidly Smart Phones & Watson Smarter City IOC Franchises10/16/2013 IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)92 92. Service Science Emerging Discipline Service Science, Management, and Engineering (SSME) Service Not sector (ECON) Not capability (CS) Value Co-Creation Service System Entities 10/16/2013IBM SSME Centennial Icon of Progress IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)93 93. How do universities fit in? Best way to predict the future is to inspire the next generation to build it better The future is already here at universities it is just not well distributed 10/16/2013 IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)94 94. Growth95 95. NestingMatryoska dolls: Origin Japanese96 96. ~14B Big BangEvolution of Natural Systems & Service Systems(Natural World)Unraveling the mystery of evolving hierarchical-complexity in new populations To discover the worlds architectures and mechanisms for computing non-zero-sum~10K CitiesTime(Human-Made World)writing (symbols and scribes, stored memory and knowledge)written laws (governance and stored control)ECOLOGYmoney (governed transportable value stored value, economic energy)sun (energy) earth (molecules & stored energy)bacteria (single-cell life) bees (social division-of-labor)sponges (multi-cell life)97 clams (neurons) trilobites (brains)200Mtransistor (routine cognitive work)universities (knowledge workers)60printing press (books) steam engine (work) 97. ~100 years of US job transformationsSource: US Bureau of Economic Analysis; McKinsey Global Institute Analysis 98 98. Context: IBM 101More than 40% of IBMs workforce does business away from an officeIBM has ~425,000 employees worldwideIBM operates in 170 countries around the globe2012 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 ofIBM Growth InitiativesEPS d/digit growth) Net Cash - $18.2BAcquisitions contribute significantly to IBMs growth ; ~120 acquisitions in last decadeNumber 1 in patent generation for 20 consecutive years ; 6,478 US patents awarded in 201210/16/2013New Era in IBMs Leadership100 Years of Business & Innovation in 2011The Smartest Machine On Earth10 time winner of the 5 Nobel Laureates Presidents National Medal of Technology & Innovation latest for LASIK laser refractive surgical techniques IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)99 99. Technological Acceleration% Penetration100TelevisionElectricityTelephoneRadio Automobile VCR50 PCCellular250255075100125YearsYEARS 100150 100. Many top in-demand jobs in 2011 did not exist in 2005!iPhone/iPad app developer wireless marketing director microfinance infrastructure designer 3D content developer for movies, TV social network manager deploying technology into the cloud organic solar cell development digital image management101 101 101. U.S Department of Labor estimates that todays learner will have 10-14 jobs by the age of 38!102102 102. 103 103Estimates are 85% of the jobs todays learners will be doing havent been invented yet they'll be using technologies that don't exist to solve problems we don't yet know are problems 103. Five historical cycles 104 104. Measuring Quality-of-Life?* = US Labor % in 2009.A. Systems that focus on flow of things that humans need (~15%*) 1. Transportation & supply chain 2/7/4 2. Water & waste recycling/Climate & Environment 2/1/1 3. Food & products manufacturing 4. Energy & electricity grid/Clean Tech7/6/1 5. Information and Communication Technologies (ICT access) 1/1/0 B. Systems that focus on human activity and development (~70%*) 5/17/27 6. Buildings & construction (smart spaces) (5%*) 7. Retail & hospitality/Media & entertainment/Tourism & sports (23%*) 8. Banking & finance/Business & consulting (wealthy) 1/0/2 (21%*) 24/24/1 9. Healthcare & family life (healthy) (10%*) 10. Education & work life/Professions & entrepreneurship (wise) (9%*) 7/10/3 C. Systems that focus on human governance - security and opportunity (~15%*) 2/20/24 11. Cities & security for families and professionals (property tax) 5/2/2 12. States/regions & commercial development opportunities/investments (sales tax) 13. Nations/NGOs & citizens rights/rules/incentives/policies/laws (income tax)0/19/03/3/1 0/0/0 1/2/2Quality of Life = Quality of Service + Quality of Jobs + Quality of Investment-Opportunities 61 Service Design 2010 (Japan) / 75 Service Marketing 2010 (Portugal)/78 Service-Oriented Computing 2010 (US) 105 105. Data Science + Urban Science + Service Science = Smarter Planet Jim Spohrer Director IBM University Programs June 17, 2013 106. Sciences & Applied Arts All sciences study systems Physics, Chemistry, Biology, Information and Computer Science, Service Science, etc. All applied arts change systems Management, Engineering, Design Arts, Public Policy seek to apply rigorous scientific knowledge to create better worlds to inhabit 107. ISSIP Introduction to California Center for Service Science Yassi Moghddam Executive Director, ISSIP yassi@ISSIP.org twitter: @yassi_moghddam (408) 318-0332 www.issip.org 2013 ISSIP and/or its affiliates. All rights reserved.September 13, 2013108 108. Who.Founded, July 2012Ammar Rayes, President, ISSIP; Distinguished Engineer, Cisco ServicesAna Pinczuk BOD Member, ISSIP; SVP Transformation, Cisco ServicesCharlie Bess, BOD Member, Vice President, ISSIP; HP Fellow, and VPHaluk Demirkan BOD Member, ISSIP; Professor University of WashingtonJim Spohrer BOD Member, Secretary, Tre asure, ISSIP; Director Global University Programs, IBMRalp Badinelli BOD Member, ISSIP; Professor Virginia TechYassi Moghaddam Executive Director, ISSIP; Formerly Bell Labs, AT&T, Lucent, Wells Fargo, & several startupsJeff Welser Vice President Elect, ISSIP; Director Services Research, IBM 109. Why?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 ISSIP is a professional society designed industry sector 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 110. Our Mission To promote service innovations for our interconnected world.- Individual Members: > 360 - Institutional members: 3 and growing - Service Systems: ICT, Education, Healthcare, Transportati on, Financials, Energy, Government - Universities: 55+ - Countries: 37+Through: Professional Development Education Research Practices Policy MakingSpecial Interest groupsAmbassadorsCommitteesChapters Students Mentorshi p 111. ISSIP Special Interest Groups Existing SIGs Cloud Mobility Education & Research Energy and Power Service Futures Software Defined Networks User Experience Other topics: must relate to smart services. Big Data & Analytics, IoT, Globalization, Innovation Tools & Methods, and more SIGs are proposed by members and approved by the Board of Directors.OutcomesWhite papers, journal articles Influencing Standards Workshops Co-sponsoring or presenting at conferences Surveys Research best practices for smart service systems 112 112. ISSIP AmbassadorsMore than 15 Ambassadors and growingLink ISSIP to other professional associations, research centers, conferences, etc.Help ISSIP co-sponsor activities in other conferencesmore...http://www.issip.org/learningcenter/valuen twork/ 113. Academia-Industry-ISSIP Students Mentorship MentorshipInternshipJobGoal: Co-create a superior mentorship expience between ISSIP members including college students academics, industry professionals, policy makers, and members of other professional societiesFocus: projects that address real business and societal challengesPlatform: pipeline of smart service projects of mutual interest to: Students that make them more competitive for smart service jobs Academicians, for smart services case development, and research For industry partners to test a vetted pool of talent for hiringParticipating Universities so far: Hult SF, SJSUParticipating Companies so far: IBM, Cisco, HPRegions 2.0 San Jose State University, IBM, Cisco, HP, and ISSIP now designing new templates for regional development through service innovation! 114. Professional Development ISSIP Certification, Badges, and Seals Certification Committee Chair: Professor Haluk Demirkan, University of Washington, Committee Goals: Lead and define criteria for ISSIP certifications and badges for services, solutions, systems, courses and workshops, In the short term: ISSIP Reviewed already granted through Hult International School of Business Courses, workshops, books, etc. In the long term: Develop BOK Develop testing, certification, and auditing criteria Offer professional certifications Professional Book Series BEP, Co-editors: Dr. Jim Spohrer, Dr. Haluk Demirkan Developing T-shape assessment instruments Professor Lou Freund, SJSU 115. Lets work together 1. Register at issip.org: http://www.issip.org/join-thecommunity 2. Inquire about becoming an institutional member of ISSIP @ execdir@issip.org 3. Join or start a SIG: www.issip.org/community/speci al-interest-groups 4. Become an ISSIP Ambassador: http://www.issip.org/community /ambassadors 5. Join a Committee: http://www.issip.org/community /committees 6. Send ideas to execdir@issip.org 116 116. Thank you! Yassi Moghddam Executive Director, ISSIP yassi@issip.org twitter: @yassi_moghddam (408) 318-0332 www.issip.org2013 ISSIP and/or its affiliates. All rights reserved.117 117. ISSIP Chapters Geographic chapters are proposed by members and approved by the Board of Directors.First Chapter: ISSIP GermanyChapters for Switzerland, Japan, UK, Italy, Jordan, Australia, and others are planned.ISSIP Germany118 118. Committees Conferences Committee Oversee ISSIP Conference activities Elections Committee Administers ISSIP Elections Nominating Committee: Administers ISSIP nominations for various elected positions Operations Committee Manages the tactical operations of ISSIP Publications Committee: Set guidelines for and manage ISSIP publications Certification Committee Leads and define criteria for ISSIP certifications and badges for services, solutions, systems, courses and workshops, develop BOK, develop testing and auditing criteria Mentorship Committee Oversee ISSIP-industryacademia Student Mentorship Program New Members Committee Increase quantity of both Dues Paying members and Individual members 119. Todays Talk Vision: MMaaRRSS Modular Manufacturing as a Regional Recirculation Service System XaaS = Everything as a Service (value co-creation processes) Near zero waste, everything is an input to some process Doubling size of economy requires not only higher productivity construction, but higher productivity deconstruction Trends: Whats In The News McKinsey, Servitization, My Tweets and Summary Innovation Framework: To get us there and beyond!!! Near Future: Platform Technologies and Smart Service Systems Far Future: Utility Fog More on Silicon Valley, IBM, Universities, and Smarter Planet More on Service Science, Service Innovation, and ISSIP.org 120. Vision: MMaaRRSS Modular Manufacturing as a Regional Recirculation Service System I am the stuff that will be made into product X for customer Y. Stuff = Material, Energy, and Information Flows Minimize transport costs (for products and waste) The Vision: Circular Economy (~4 minutes) 121. Who I am Education & Startups First Quarter Century 1974-78 MIT Physics, Bachelor of Science 1978-82 Startup: Verbex (employee #60, bought by Exxon) 1982-89 Yale Computer Science, PhD Specializing in Artificial Intelligence and Cognitive Science Consultant for Intelligent Tutoring System startups 1989 University of Rome LaSapienza in Italy, visiting scholar Silicon Valley & Big Businesses Second Quarter Century 1989-98 Apple Computer Distinguished Engineer Scientist Technologist Learning Technologies (e.g., EOE, E/W Authoring Tools, WorldBoard, etc.) 1998-Present IBM User Experience Research (1998-99) Founding CTO IBM Venture Capital Group (1999-2002) Founding Director IBM Service Science Research Group (2002-07) Innovation Champion & Director Global University Programs (Since 2007) ISSIP, non-profit Service Innovation Professionals, Board of Directors (Since 2012) 122. EDUCAUSE Review ArticleSpohrer, J., Fodell, D., & Murphy, W. (2012). Ten Reasons Service Science Matters to Universities. EDUCAUSE Review, 47(6), 52-54. 123. Service-Dominant Logic (SDL): Actor Competitiveness Argument Vargo, S. L., & Akaka, M. A. (2009). Service-dominant logic as a foundation for service science: clarifications. Service Science, 1(1), 32-41. 124. A2A Interactions: Competing for Collaborators Collaborators: Customers, Suppliers, Employees, Partners, etc. FP4 Operant Resources & FP9 Resource Integration Operant resources are the fundamental source of competitive advantage All social and economic actors are resource integrators From an upcoming Vargo & Lusch Publication: Not only do business enterprises and households engage in resource integration, transformation, and exchange of service, but government agencies, schools, and a host of other nonprofit organizations do so as well. As a broad, abstract perspective, businesses, households, and other organizations engage in the acquisition, integration, and transformation of resources to create new resources and then use these new resources in exchange with other actors to co-create value. This perspective begins to direct attention to viewing businesses, households, and other organizations, including nonprofits and governments, as essentially and abstractly identical. This insight led us to define exchange and exchange systems in terms of actorto-actor (A2A) interactions. 125. Todays Talk Definitions Sciences & Applied Arts Ten Reasons Progress To Date Whats Next? IBM Example Future Trends 126. Definitions Service The application of knowledge for mutual benefits Value co-creation phenomena between entities Service Innovations Scale the benefits of new knowledge globally, rapidly, profitably Platforms can help, e.g., smart phones, franchises, etc. Growth businesses seek to scale benefits of knowledge Service System Entities Business and societal systems with capabilities, rights, and responsibilities Dynamic configurations of people, technology, organizations, and information linked by value propositions 127. Definitions Service Science Study of service and service systems Measures: Quality, Productivity, Compliance, Innovativeness, Sust ainability, Resilience, Competitive Parity SSME Service Science, Management, and Engineering SSME+DAPP SSME + Design Arts and Public Policy Big Tent 128. Sciences & Applied Arts All sciences study systems Physics, Chemistry, Biology, Information and Computer Science, Service Science, etc. Evolution of entities, interactions, outcomes Discover abstract universal patterns All applied arts change systems Management, Engineering, Design Arts, Public Policy seek to apply rigorous scientific knowledge to create better worlds to inhabit 129. Definitions Transdiscipline Borrows from disciplines without replacing them T-Shaped Service Innovation Professionals Depth and Breadth: Disciplines, Sectors, Cultures Adaptive Capacity and Boundary Spanners ISSIP International Society for Service Innovation Professionals Pronounced I-ZIP An umbrella professional association 130. What is a T-shaped Professional?Many disciplines Many sectors Many regions/cultures (understanding & communications)Deep in one region/cultureDeep in one sectorDeep in one discipline 10/16/2013 IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)131 131. www.ISSIP.org Pronounced I-ZIP International Society of Service Innovation Professionals Service is the application of knowledge for mutual benefitis (value cocreation phenomena) Service innovations scale the benefits of new knowledge globally and rapidly. 10/16/2013 IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)132 132. Ten Competitiveness Reasons: Regional Skills & Infrastructure Skill NeedService Science TopicsBig DataInstrumenting Service SystemsCloud ComputingInterconnecting Service SystemsCognitive ComputingIntelligent Service SystemsPlatformsScaling Service Systems & Faster Revenue GrowthSocial & MobileInstrumented People as Service Systems (Open Data)CybersecuritySecurity of Private Information in Service SystemBusiness ModelsDigital Age Business Models for Service SystemsSustainabilityCities as Higher Quality-of-Life Service SystemsEntrepreneurismUniversities as More Competitive Service SystemsRegional FlowsCircular Economy of Regional Service Systems 133. Progress Indicators Other Sciences Computer Science (30 years) Data Science (Hadoop) Urban Science (Scale Law) Service Science (S-D Logic) Service Science Courses & Degree Programs (>500) Conferences (>25) Journals, Articles, Papers, Books & Citations (>10,000) Professional Associations (>25) Government & Business Investment (>$5B) 134. The Well-Read Service Scientist http://service-science.info/archives/2708 135. Whats Next? Better Open Data Sets & Simulation Tools Better Textbooks & Education Materials Better Frameworks & Entity Architectures Better Theories & Models New Discoveries Scale Laws & Periodic Table of Entities Comparative Parity & Learning Curves Innovation Methods & Investment Strategies 136. Service Science ArticleSpohrer, J., Piciocchi, P., & Bassano, C. (2012). Three frameworks for service research: exploring multilevel governance in nested, networked systems. Service Science, 4(2), 147-160. If some entity architectures (EN and frameworks (FN) are better than others, then professionals working to solve real-world problems (PRW) might benefit, and generate better sets of recommendations (RE). 137. Service Science The transdisciplinary study of service, the application of knowledge for mutual benefits (value co-creation phenomena), in an evolving ecology of interacting many-tomany, nested, networked viable service system entities. 138. Observations Every nation/state/city-university I talk to: We need help creating high skill, high pay jobs of the future. We need help keeping our top talent from moving away after graduation from university Every business I talk to: We need help scaling the benefits of new knowledge and innovation globally, rapidly, profitably We need help making our employees and ecosystem more innovative We would rather hire people with some entrepreneurial experience (even if failed) than recent graduates, with no entrepreneurial experience. 139. Holistic Service Systems (HSS) http://www.service-science.info/archives/1056NationThe future is already here (at universities), it is just not evenly distributed.For-profitsState/Province City/RegionU-BEE Job Creator/Sustainer Cultural & Conference HotelsThe best way to predict the future is to (inspire the next generation of students to) build it better.Non-profitsUniversity College K-12WorkerFamily(professional )(household)Hospital Medical ResearchMultilevel 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 10/16/2013 IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward)140 140. Order of Magnitude Observation: Unique Time in Human History Type: ClassesOrderTokens: InstancesIndividualsInstitutionsPlanet10**0110BForbes 50Continent10**1101BF 1000Nation10**2100100MF 2000State10**3100010MutilitiesMetro10**410,0001MunisCity10**5100,000100,000collegesDistrict10**61M10,000hospitalsCommunity10**710M1000schoolsStreet10**8100M100parksFamily10**91B10Person10**10 10B1InfrastructureInformationPRISM nuclear gassolarHAT Soc. Med. 141. GDL & SDL GDL Reasons: Sector Growth ArgumentSDL Reasons: Actor Competitiveness ArgumentService EconomyPlanet-wide ActorsServitization/XaaS (Everything asa Service)Continental Unions as Actors (HSS)GlobalizationNations as Actors (HSS)DemographicsStates as Actors (HSS)UrbanizationMetros/Counties as Actors (HSS)Social ServicesCities as Actors (HSS)Financial ServicesDistricts as Actors (HSS)IT Platforms & ServicesCommunities as Actors (HSS)B2B ServicesStreets/Apart. Buildings as Actors (HSS)Service Innovation NeedsFamilies as Actors (HSS) Individuals as Actors 142. Silicon Valley: Past, Present, and FutureSteve Blank www.steveblank.com Twitter: sgblank 143. The Popular View of Silicon Valley History Marc Andreessen Steve JobsMoore/NoyceHewlett & PackardInternetPersonal ComputersIntegrated CircuitsFruit OrchardsInnovation NetworksFruit Orchards Fruit Orchards 1910192019301940195019601970198019902000 144. The Real Story of Silicon Valley History InternetPersonal Computers Integrated CircuitsMicrowaves/ DefenseInnovation NetworksTest Equipment Vacuum Tubes 1910192019301940195019601970198019902000 145. Terman and the Cold War Silicon Valleys 1st Engine of EntrepreneurshipEntrepreneursMilitary FinanceCrisisProfitMotivationCultureCooperativeEntrepreneurialOutward-Facing Tech UniversitiesRisk CapitalFree flow of People/InformationInfrastructure24/7 UtilitiesPredictable Economic SystemStable Legal SystemTechnical Labs/UniversitiesSteve Blank 23 Sept 2008 146. Venture Capital Silicon Valleys 2nd Engine of EntrepreneurshipEntrepreneursVenture FinanceCrisisProfitMotivationCultureCooperativeEntrepreneurialOutward-Facing Tech UniversitiesRisk CapitalFree flow of People/InformationInfrastructure24/7 UtilitiesPredictable Economic SystemStable Legal SystemTechnical Labs/UniversitiesSteve Blank 23 Sept 2008