Compete th

1. Smart Analytics
Dr. James C. (“Jim”) Spohrer
IBM Innovation Champion
Director, IBM Global University Programs
CTS CSL, Phoenix, USA, Nov. 6, 2013

2. International Society of Service
Innovation Professionals (ISSIP)

3. Today’s Talk
• IBM: Smart Analytics (5 V’s) for Smarter Planet
• ISSIP: Service Innovation & T-shaped professionals
Volume
Velocity
Variety
Veracity*
Data at Rest
Data in Motion
Data in Many
Forms
Data in Doubt
Terabytes to exabytes
of existing data to
process
Streaming data,
milliseconds to seconds
to respond
Structured,
unstructured, text,
multimedia
Uncertainty due to
data inconsistency
& incompleteness,
ambiguities, latency,
deception, model
approximations

4. Big data: This is just the beginning
9000
100
6000
You are here
Social
Media
50
Percent of uncertain data
Volume in Exabytes
Percentage of uncertain data
Sensors
& Devices
VoIP
Volume
Veracity
3000
Enterprise
Data
Variety
2010
Source: IBM Global Technology Outlook 2012
4
0
2015
IBM source data is based on analysis done by the IBM Market Intelligence Department. IBM Market Intelligence data
is provided for illustrative purposes and is not intended to be a guarantee of future growth rates or market opportunity
© 2013 IBM Corporation

5. 5th V = Value of leveraging big data
Nearly two out of three respondents reports realizing a competitive
advantage from information and analytics
Competitive advantage enabler

A majority of respondents
reported analytics and information
(including big data) creates a
competitive advantage within their
market or industry
Realizing a competitive advantage
50%
2012
increase
 Represents a 70% increase
since 2010 among global
respondents
5
52%
 Organizations already active in
big data activities were 15%
more likely to report a
competitive advantage

28%
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%.
63%
79%
58%
2011
70%
increase
37%
2010
Education industry
respondents
Global respondents
Respondents were asked “To what extent does the use of information (including big data)
Respondents were a competitive advantage for your organization in your industry or
and analytics createasked “To what extent does the use of information (including big data)
and analytics create a competitive shown are for those who rated in extent a [4 ] or
market.” Respondent percentages advantage for your organizationthe your industryor [5
market.” Respondent percentages shown are for those each year.
Significant extent]. The same question has been asked who rated the extent a [4 ] or [5
Significant extent].
2010 and 2011 datasets © Massachusetts Institute of Technology
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

6. Smarter Planet = Smarter Service Systems
Data Science + Urban Science + Service Science = Smarter Planet
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
6
SUPPLY CHAIN
COMMUNICATIONS
TRANSPORTATION
BUILDINGS

7. Growth of Service System Data:
Need for Next Generation Professionals
7

8. Welcome to the new age of
platform technologies and
smarter service systems
for every sector of
business and society
nested, networks systems

9. 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.

10. Next Generation:
T-Shaped Adaptive Innovators
Many disciplines
Many sectors
Many regions/cultures
(understanding & communications)
Deep in one region/culture
Deep in one sector
Deep in one discipline

11. 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

12. 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

13. 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/

14. The Well-Read Service Scientist
(The top 300 papers – together over 100,000 citations)
• http://service-science.info/archives/2708

15. 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

16. 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
16

17. IBM Platforms for Entrepreneurs
• Smarter Cities Intelligent Operations Center Platform
• IBM Watson & Cognitive Computing Platform
• IBM UP helping university startups to scale-up (growth)
11/4/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
17

18. 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
11/4/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
18

19. Foundations for Smarter Planet
Cloud
Social
Mobile
Internet of Things

20. 11/4/2013
© IBM 2013 IBM University Programs
worldwide accelerating regional
development (IBM UPward)
20

21. 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
11/4/2013
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)
21

22. By 2020, 35 Zettabytes per year
• What’s big today will look small in a decade
2 Billion Internet users in 2011
Google processes
By 2013, annual internet traffic
will reach 667 Exabytes
in a single day
Facebook processes
10 Terabytes of data every
day
The Hadron Collider at CERN
generates 40 Terabytes
of data / sec
> 24 Petabytes of data
Twitter processes
7 Terabytes of data every day
250,000,000 tweets
For every session, NY Stock
Exchange captures 1 Terabyte
of trade information

23. “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
23