Cts csl phoenix 20131104 v1

Smart AnalyticsDr. James C. (“Jim”) SpohrerIBM Innovation Champion

Director, IBM Global University ProgramsCTS CSL, Phoenix, USA, Nov. 6, 2013

International Society of Service Innovation Professionals (ISSIP)

Today’s Talk• IBM: Smart Analytics (5 V’s) for Smarter Planet• ISSIP: Service Innovation & T-shaped professionals

Volume Velocity Veracity*Variety

Data at Rest

Terabytes to exabytes of existing data to

process

Data in Motion

Streaming data, milliseconds to seconds

to respond

Data in Many Forms

Structured, unstructured, text,

multimedia

Data in Doubt

Uncertainty due to data inconsistency& incompleteness,

ambiguities, latency, deception, model approximations

© 2013 IBM Corporation

BIG DATA: THIS IS JUST THE BEGINNING

2010

Vo

lum

e i

n E

xa

by

tes

9000

2015

Percentage of uncertain data

Pe

rce

nt o

f un

ce

rtain

da

ta

You are here

Sensors & Devices

VoIP

Enterprise Data

Social Media

3000

6000

100

0

50

4

Veracity

Source: IBM Global Technology Outlook 2012 IBM source data is based on analysis done by the IBM Market Intelligence Department. IBM Market Intelligence datais provided for illustrative purposes and is not intended to be a guarantee of future growth rates or market opportunity

Volume

Variety

NEARLY TWO OUT OF THREE RESPONDENTS REPORTS REALIZING A COMPETITIVE ADVANTAGE FROM INFORMATION AND ANALYTICS

5

5th V = Value of leveraging big data

Respondents were asked “To what extent does the use of information (including big data) and analytics create a competitive advantage for your organization in your industry or market.” Respondent percentages shown are for those who rated the extent a [4 ] or [5 Significant extent]. The same question has been asked each year.

Competitive advantage enabler A majority of respondents

reported analytics and information (including big data) creates a competitive advantage within their market or industry

Represents a 70% increase since 2010 among global respondents

Organizations already active in big data activities were 15% more likely to report a competitive advantage

In the Education industry, the percentage of respondents reporting a competitive advantage rose from 28% in 2010 to 50% in 2012, a 79% increase in two years after a peak in 2011 at 52%.

Source: Analytics: The real-world use of big data, a collaborative research study by the IBM Institute for Business Value and the Saïd Business School at the University of Oxford. © IBM 2012

2010 and 2011 datasets © Massachusetts Institute of Technology

Realizing a competitive advantage

Respondents were asked “To what extent does the use of information (including big data) and analytics create a competitive advantage for your organization in your industry or market.” Respondent percentages shown are for those who rated the extent a [4 ] or [5 Significant extent].

2012

2011

2010

50%

52%

28%37%

63%

Education industry respondents Global respondents

79% increase

58%

70% increase

6

Smarter Planet = Smarter Service SystemsData Science + Urban Science + Service Science = Smarter Planet

INSTRUMENTED We now have the ability to

measure, sense and see the exact condition of practically everything.

INTERCONNECTED People, systems and objects

can communicate and interact with each other in

entirely new ways.

INTELLIGENT We can respond to changes

quickly and accurately, and get better results

by predicting and optimizing for future events.

WORKFORCE

PRODUCTS

SUPPLY CHAIN

COMMUNICATIONS

TRANSPORTATION BUILDINGS

IT NETWORKS

Growth of Service System Data:Need for Next Generation Professionals

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Welcome to the new age ofplatform 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.

Next Generation:T-Shaped Adaptive Innovators

Many disciplinesMany sectors

Many regions/cultures(understanding & communications)

Deep in one sector

Deep in one region/culture

Deep in one discipline

Why ISSIP? T-shapes for Teamwork

• 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.)

BREADTH

DE

PT

H

T-Shape professionals can innovate across traditional boundaries

Service Systems Fundamental Abstraction of Service Science:ISSIP portal to Disciplines (23), Professional Associations (39), Journals (20), Conferences (31), Workshops (7)

IBM SSME Centennial Icon of Progress

Discipline Association

Marketing AMA

Operations Research INFORMS

InformationSystems

AIS

Computer Scienceand Engineering

ACM, IEEE

Human Factors AHFE

Operations Management

POMS

Systems Science ISSS

Design SDN

Systems Engineering IIE

… …

Serviceology SfS

(SSME+DAPP) ISSIP

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/valuenetwork

/

http://www.issip.org/learningcenter/valuenetwork/



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 ThinkingSaperstein & 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 metricsCVC Group, LLC 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)04/11/2023

© IBM 2013 IBM University Programs worldwide accelerating regional

development (IBM UPward)17

Holistic Service Systems (HSS)

04/11/2023© IBM 2013 IBM University Programs

worldwide accelerating regional development (IBM UPward)

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http://www.service-science.info/archives/1056

Nation

State/Province

City/Region

UniversityCollege

K-12

Cultural &ConferenceHotels

HospitalMedical

Research

Worker(professional)

Family(household)

For-profits:Business Entrepreneurship

Non-profitsSocial Entrepreneurship

U-BEEJob Creator/Sustainer

U-BEEs = University-Based Entrepreneurial Ecosystems

“The future is already here (at universities),it is just not evenlydistributed.”

“The best way topredict the futureis to (inspire the nextgeneration of studentsto) build it better.”

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

University Four Missions1. Learning2. Discovery3. Engagement4. Integration

Foundations for Smarter PlanetCloud

Social

Internet of Things

Mobile



20



21

IBM operates in 170 countries around the globe

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

2012 FinancialsRevenue - $ 104.5BNet Income - $ 17.6BEPS - $ 15.25 (10 yrs of

EPS d/digit growth)Net Cash - $18.2B

24% of IBMs revenue in Growth Market countries; growing at 7% ( @cc) in 2012

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

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

5 Nobel Laureates10 time winner of the President’s National Medal of Technology & Innovation – latest for LASIK laser refractive surgical techniques

The Smartest Machine On Earth

100 Years of Business & Innovation in 2011

New Era in IBM’s Leadership

IBM Growth Initiatives

IBM has ~425,000 employees worldwide

Context: IBM 101

By 2020, 35 Zettabytes per year

• What’s big today will look small in a decadeGoogle processes > 24 Petabytes of data in a single day

Facebook processes 10 Terabytes of data every day

The Hadron Collider at CERN generates 40 Terabytes of data / sec

For every session, NY Stock Exchange captures 1 Terabyte of trade information

Twitter processes 7 Terabytes of data every day250,000,000 tweets

2 Billion Internet users in 2011By 2013, annual internet traffic will reach 667 Exabytes

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“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