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IBM University Programs worldwide, accelerating regional development (IBM Upward)




                                           Smarter Planet
                                                                                           Maker-Bot: Replicator 2


Baxter: Building the Future



                                       Working Together to Build a Smarter Planet

 Dr. James (―Jim‖) C. Spohrer, spohrer@us.ibm.com
 Innovation Champion and Director IBM UPward
 (University Programs worldwide, accelerating regional development)

 ASEE Global Leadership Forum
 Monday September 24, 2012


                                                                                           © 2012 IBM Corporation
Today’s Talk



     Grand Challenges: Four Crises
                                                                                               IBM Smarter Planet

     Building a Smarter Planet

     T-Shaped Professionals
       – Deep Problem Solving & Critical Thinking
       – Broad Communications & Leadership

     Two Generations: Accelerating Change


                                                                                             Nano-Bio-Info-Cogno


2           IBM UPward (University Programs worldwide – accelerating regional development)             © 2012 IBM Corporation
Grand Challenges…
     Four Crises
       – Financial
       – Healthcare
       – Education
       – Government




3              IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
What’s UP with IBM? University Programs




4         IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
Most people say, “IBM makes computers”




5        IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
Those in-the-know say, “IBM is helping to build a Smarter Planet…”




6           IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
A Smarter Planet is built from smarter service systems…




       INSTRUMENTED                               INTERCONNECTED                                          INTELLIGENT
    We now have the ability                     People, systems and                             We can respond to changes
    to measure, sense and                    objects can communicate                              quickly and accurately,
    see the exact condition                    and interact with each                              and get better results
    of practically everything.               other in entirely new ways.                        by predicting and optimizing
                                                                                                     for future events.
                  PRODUCTS                              IT NETWORKS                                  COMMUNICATIONS

WORKFORCE                           SUPPLY CHAIN                            TRANSPORTATION                            BUILDINGS




7                   IBM UPward (University Programs worldwide – accelerating regional development)             © 2012 IBM Corporation
City challenge: buildings and transportation




    Ryan Chin:
    Smart Cities




8              IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
Streetline: Instrumented-Interconnected-Intelligent




9          IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
Example: Streetline




10        IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
Neonatal ICU: Instrumented-Interconnected-Intelligent




11        IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
A city is essentially a
                                       system of service
                                       systems—
                                       transportation,
                                       healthcare, public
                                       safety and education.

                                       To enable a Smarter
                                       City, IBM is working to
                                       improve the quality &
                                       efficiency of service
                                       systems and how they
                                       operate and function.
12   IBM GMU External Relations 2012
Cities: land-population-energy-carbon




   Carlo Ratti:
 Senseable Cities




13             IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
14   IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
Smarter City Intelligent Operations Center (SC IOC)




15        IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
Four commandments for cities of the future: Eduardo Paes at TED2012




16          IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
SC IOC as a Platform for Innovation




17        IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
Regional Competitiveness and U-BEEs:
Where imagined possible worlds become observable real worlds
http://www.service-science.info/archives/1056


Innovations                                   Nation
Universities/                                                                                                         ―The future is already
                                                          State/Province                                              here (at universities),
Regions                                                            City/Region
Calculus (Cambridge/UK)
                                         For-profits
                                                                                                                      it is just not evenly
Physics (Cambridge/UK)                                                      U-BEE
Computer Science (Columbia/NY)                                                                                        distributed.‖
Microsoft (Harvard/WA)                                               Job Creator/Sustainer
Yahoo (Stanford/CA)                                                                                        Hospital
                                                                 Cultural &         University
Google (Stanford/CA)                                                                                       Medical
                                                                 Conference          College
Facebook (Harvard/CA)                                                                                     Research
                                                                 Hotels               K-12
                                                                                                                      ―The best way to
                                        Non-profits                        Worker
                                                                           (professional)
                                                                                            Family
                                                                                            (household)
                                                                                                                      predict the future
                                                                                                                      is to (inspire the next
                                                                                                                      generation of students
                                                                                                                      to) build it better.‖


         U-BEEs = University-Based Entrepreneurial Ecosystems, City Within City
 18                        IBM UPward (University Programs worldwide – accelerating regional development)                     © 2012 IBM Corporation
What improves Quality-of-Life? Service System Innovations
                                                                                                          * = US Labor % in 2009.

     A. Systems that focus on flow of things that humans need (~15%*)
          1. Transportation & supply chain 2/7/4                                               0/19/0

          2. Water & waste recycling/Climate & Environment 2/1/1
          3. Food & products manufacturing 7/6/1
          4. Energy & electricity grid/Clean Tech 1/1/0
          5. Information and Communication Technologies (ICT access)      5/17/27
     B. Systems that focus on human activity and development (~70%*)
          6. Buildings & construction (smart spaces) (5%*) 1/0/2
          7. Retail & hospitality/Media & entertainment/Tourism & sports (23%*)     24/24/1
          8. Banking & finance/Business & consulting (wealthy) (21%*)    7/10/3
          9. Healthcare & family life (healthy) (10%*) 2/20/24
          10. Education & work life/Professions & entrepreneurship (wise) (9%*) 5/2/2
     C. Systems that focus on human governance - security and opportunity (~15%*)
          11. Cities & security for families and professionals (property tax) 3/3/1
          12. States/regions & commercial development opportunities/investments (sales tax) 0/0/0
          13. Nations/NGOs & citizens rights/rules/incentives/policies/laws (income tax) 1/2/2
      Quality 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)‖

19                      IBM UPward (University Programs worldwide – accelerating regional development)    © 2012 IBM Corporation
T-shaped professionals
depth & breadth




                                                           Many cultures
                                                          Many disciplines
                                                           Many systems
                                                       (understanding & communications)

     BREADTH


                                                                                    Deep in one discipline

                                                                                                             Deep in one system
                                                              Deep in one culture
        DEPTH




                                                                                                                        (analytic thinking & problem solving)


20
20              IBM UPward (University Programs worldwide – accelerating regional development)                                                             © 2012 IBM Corporation
Systems-Disciplines Framework: Depth & Breadth
               systems                            Systems that focus on flows of things              Systems that support people’s activities           Systems that govern
                                               transportation &                            ICT &               retail &            healthcare
                                                                     food &                                                                   education city   state nation
     disciplines                               supply chain water &            energy
                                                                     products & electricity
                                                                                           cloud   building & hospitality banking & family
                                                                                                                                              &work     secure scale laws
                                                              waste                                construction           & finance
                                   behavioral sciences
               Customer
stakeholders




                                   e.g., marketing

               Provider            management sciences
                                   e.g., operations
                                                                                      Observe Stakeholders (As-Is)
                                   political sciences
               Authority
                                   e.g., public policy
                                   learning sciences
               Competitors          e.g., game theory
                                          and strategy
                                   cognitive sciences
               People
                                   e.g., psychology
resources




                                   system sciences
               Technology
                                   e.g., industrial eng.
                                   information sciences
                                                                                 Observe Resource Access (As-Is)
               Information
                                   e.g., computer sci
                                   organization sciences
               Organizations
                                   e.g., knowledge mgmt

               History             social sciences
change




                                  e.g., econ & law
               (Data Analytics)
                                  decision sciences
                                                                    Imagine Possibilities (Has-Been & Might-Become)
               Future             e.g., stats & design
               (Roadmap)
                                   run professions
               Run
                                  e.g., knowledge worker
value




               Transform
               (Copy)
                                  transform professions
                                   e.g., consultant
                                                                                            Realize Value (To-Be)
               Innovate            innovate professions
               (Invent)
                                   e.g., entrepreneur


          21                                      IBM UPward (University Programs worldwide – accelerating regional development)                 © 2012 IBM Corporation
Proposed: National Academies Grand Challenges

 IBM & Customers & Partners                                                       Fellows
     –   IBM ($?100K/yr)
                                                                            (National Academies)
     –   Customers & Partners ($?100K/yr)
 National Academies Grand Challenges &




                                                                                                                    Pipeline of People
  IBM Smarter Planet Competitions
     –   Video Submissions (YouTube Social Media)                                   Fellows
     –   Analytics & DEEPQA (Big Data/Watson)
                                                                                  (Corporate &
     –   Smart Phone Apps (Citizens)
     –   Business Plans (Entrepreneurs)
                                                                                  Associations)
 Ecosystems
     –   National Academies
     –   Professional Associations
         & Corporate Academies
           • IBM & AoT                                                            Professionals
           • Customers & Partners                                                (STEM & Other)
           • ACM, IEEE, INFORMS, ISSIP, ASEE, etc.
     –   Employers of Professionals (Academics,
         Industry, Government, Non-Profit)
     –   Students (K-12, University)

                                                                                      Students
                                                                                 (STEM & Other)


22                  IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
Smarter                               10% Internships
      Cities & Buildings              Top                                                            IBM
                                   Students
       Water & Food                             2.5% Fellowships                                    Cisco
     Materials & Energy

     Health & Education                                50% Employees                                  HP
                                   Capstone
       Government

      Transportation &                                      Start-Ups                                Apple
                                   Capstone
      Communications                                          (50%)




                                                                                                       ...
           Smarter
                                  Capstone                  Capstone
     Retail & Hospitality
                                                            Mentors                                 Companies/
        Universities/                                                                               Employers
       Research Areas
                                                        Adjunct Faculty
                                                           (Retirees, Alumni,
                                                                 Local)
                                                                                                             See ISSIP.org

23                 IBM UPward (University Programs worldwide – accelerating regional development)             © 2012 IBM Corporation
Up-Skill             = New Venture                   = Graduates with
                                                     Smarter Planet skills
                                                                                                 = High-Growth
Cycle                = Acquisition                     = IBMer moving from
                                                                                                   Acquisition/
                                                                                                   New IBM BU
                                                       mature BU to acquisition
                                                                                                   (Growing)
                                                      = IBMer moving into
                                                      IBMer on Campus role
                                                      (help create graduates                     = High-Productivity/
University-Region1                                    with Smarter-Planet skills,                  Mature IBM BU
                                                      help create Smarter Planet
                                                      oriented new ventures;                       (Shrinking)
                                                      Refresh skills




                                                                                               IBM
University-Region2




24            IBM UPward (University Programs worldwide – accelerating regional development)         © 2012 IBM Corporation
Two Generations of Change: Past & Future




            Born: 1988                                                      Born: 2012
      Graduated College: 2011                                           Enters College: 2030




25         IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
2030 Transportation: Self-driving cars




     Steve Mahan:
      Test ―Driver‖

26              IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
2030 Water




27       IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
2030 Manufacturing




      Ryan Chin:
     Urban Mobility

28         IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
2030 Energy




29       IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
2030 ICT




30         IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
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          Pioneered an online natural language
 Advancement of Question-Answering                 question answering system called START,
 Initiative (OAQA) architecture and                which provided the ability to answer questions
 methodology                                       with high precision using information from
                                                   semi-structured and structured information
                                                   repositories


 Provided technological advancement
enabling a computing system to remember the                                                          Worked to extend the
full interaction, rather than treating every      Worked on a visualization component to            capabilities of Watson, with a
question like the first one - simulating a real   visually explain to external audiences the         focus on extensive common
dialogue                                          massively parallel analytics skills it takes for   sense knowledge
                                                  the Watson computing system to break down
                                                  a question and formulate a rapid and accurate
                                                  response to rival a human brain


Explored advanced machine learning
techniques along with rich text
representations based on syntactic and
semantic structures for the Watson’s                                         Focused on large-scale
                                             Worked on information          information extraction,
optimization
                                             retrieval and text search       parsing, and knowledge
                                             technologies                    inference technologies



http://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html

  31                         IBM UPward (University Programs worldwide – accelerating regional development)                    © 2012 IBM Corporation
2030 Buildings: Recycled to be stronger, safer, cleaner

  China Broad Group:
 30 Stories in 15 Days




32             IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
2030 Retail & Hospitality




33         IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
2030 Finance & Business




34        IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
2030 Health




35        IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
2030 Education: Watch one, do one, teach one…




36        IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
2030 Government

Four measures


      Innovativeness

      Equity
        – Improve
          weakest
          link


      Sustainability

      Resiliency



37              IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
2030 and Beyond…. Government, Health, Education, Finance, etc.




38          IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
A Framework for Global Civil Society




      Daniel Patrick Moynihan said nearly 50 years ago: "If you want to
       build a world class city, build a great university and wait 200
       years." His insight is true today – except yesterday's 200 years
       has become twenty. More than ever, universities will generate and
       sustain the world’s idea capitals and, as vital creators,
       incubators, connectors, and channels of thought and
       understanding, they will provide a framework for global civil
       society.
        – John Sexton, President NYU




39             IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
IBM Almaden Research Center, Silicon Valley/San Jose, CA




40        IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
In Conclusion: Two Books To Help Us All Prepare For Change




41          IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
Thank-You! Questions?




          ―Instrumented, Interconnected, Intelligent – Let’s build a Smarter Planet.‖ – IBM
 ―If we are going to build a smarter planet, let’s start by building smarter cities‖ – CityForward.org
   ―Universities are major employers in cities and key to urban sustainability.‖ – Coalition of USU
               ―Cities learning from cities learning from cities.‖ – Fundacion Metropoli
               ―The future is already here… It is just not evenly distributed.‖ – Gibson
              ―The best way to predict the future is to create it/invent it.‖ – Moliere/Kay
     ―Real-world problems may not/refuse to respect discipline boundaries.‖ – Popper/Spohrer
                 ―Today’s problems may come from yesterday’s solutions.‖ – Senge
                ―History is a race between education and catastrophe.‖ – H.G. Wells
                              ―The future is born in universities.‖ – Kurilov
                                   ―Think global, act local.‖ – Geddes

Dr. James (“Jim”) C. Spohrer
Innovation Champion &
Director, IBM University Programs worldwide accelerating regional development (IBM UPward)
spohrer@us.ibm.com

 42                       IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
IBM’s Leadership Change




 IBM has 426,000
 employees worldwide
                                                                   2011 Financials
                       22% of IBM’s revenue
                                                                  Revenue - $ 106.9B
                       in Growth Market
                       countries; growing at                      Net Income - $ 15.9B
                       11% in 2011                                EPS - $ 13.44
                                                                  Net Cash - $16.6B                More than 40% of IBM’s
                                                                                                    workforce conducts business
                                                                                                    away from an office

                                                                                                    55% of IBM’s Workforce
IBM operates in 170                                                                                 is New to the company in
countries around the globe                                                                          the last 5 years
                             Number 1 in patent
                             generation for 19
100 Years of Business        consecutive years ;
& Innovation in 2011         6,180 US patents
                             awarded in 2011                    The Smartest Machine On Earth
                                              9 time winner of the             5 Nobel
                                              President’s National            Laureates
                                              Medal of Technology
                                              & Innovation - latest                                  “Let’s Build a Smarter
                                              award for Blue Gene                                    Planet"
                                              Supercomputer


 43                IBM UPward (University Programs worldwide – accelerating regional development)            © 2012 IBM Corporation
The New Normal: Smarter Systems




                                                             Service Systems: Stakeholders & Resources
                                                             1. People
                                                             2. Technology
                                                             3. Shared Information
                                                             4. Organizations
    Computational System                                           connected by win-win value propositions
     Smarter Technology                                    Smarter Buildings, Universities, Cities
 Requires investment roadmap                                 Requires investment roadmap
44            IBM UPward (University Programs worldwide – accelerating regional development)     © 2012 IBM Corporation
University: Four Missions
                                                                                Nation

 Knowledge                                                                                 State/Province
      – 1. Transfer (Teaching)                                                                       City/Metro
                                                                           For-profits                       U-BEE
      – 2. Creation (Research)
                                                                                                      Job Creator/Sustainer
      – 3. Application (Benefits)                                                                    Cultural &        University
                                                                                                                                              Hospital
                                                                                                                                              Medical
                                                                                                     Conference         College
           • Commerce/Entrepreneurship                                                               Hotels              K-12
                                                                                                                                             Research

           • Governance/Policymaking
                                                                                                              Worker           Family
      – 4. Re-Integration (Challenge)                                     Non-profits                         (professional)   (household)



           • Innovativeness, Equity
           • Sustainability, Resilience


 Nested, Networked Holistic Service Systems
      – Flows
                                                                       Third Mission (Apply to Create Value)
      – Development                                                             is about U-BEEs =
      – Governance                                                               University-Based
                                                                           Entrepreneurial Ecosystems

 45                 IBM UPward (University Programs worldwide – accelerating regional development)                        © 2012 IBM Corporation
Economic Shift in National Economies
     World’s Large Labor Forces                                                              US shift to service jobs
             A = Agriculture, G = Goods, S = Service
                                                                                                                                             2010
                                                                       2010

      Nation           Labor       A     G      S    40yr Service
                       % WW        %     %      %    Growth                             (A) Agriculture:
                                                                                        Value from
      China            25.7        49    22     29    142%
                                                                                        harvesting nature

      India            14.4        60    17     23     35%
                                                                                                                (G) Goods:
      U.S.              5.1         1    23     76     23%                                                      Value from
                                                                                                                making products
      Indonesia         3.5        45    16     39     34%
                                                                                                                                           (S) Service:
      Brazil            3.0        20    14   Daryl Pereira/Sunnyvale/IBM@IBMUS,
                                                66     61%                                                                                      Value from
                                                                                                                IT augmented workers in smarter systems
      Russia            2.4        10    21     69     64%                                                             that create benefits for customers
                                                                                                                    and sustainably improve quality of life.
      Japan             2.2         5    28     67     45%


      Nigeria           1.6        70    10     20     19%


      Bangladesh        2.1        63    11     26     37%


      Germany           1.4         3    33     64     42%



            NationMaster.com, International Labor Organization
     Note: Pakistan, Vietnam, and Mexico now larger LF than Germany




46                             IBM UPward (University Programs worldwide – accelerating regional development)                     © 2012 IBM Corporation
Growth of Service Revenue at IBM
     2010 Pretax Income Mix                                          Revenue Growth by Segment
                          SYSTEMS
                          (AND FINANCING)
                                                                   100




                                                    Revenue ($B)
SOFTWARE

                                                                    80                                    Services
                       17%
           44%                                                      60
                                                                    40                                    Software
                    39%                                             20                                    Systems
                                                                     0
                     SERVICES
                                                                      82
                                                                      88
                                                                      94
                                                                      98




                                                                      10
                                                                     04
                                                                     06
                                                                     07
                                                                     08
                                                                     09
                                                                   20
                                                                   19
                                                                   19
                                                                   19
                                                                   19
                                                                   20
                                                                   20
                                                                   20
                                                                   20
                                                                   20
                                                                                                  Year
                                                                                                         IBM Annual Reports
What do IBM Service Professionals Do? Run IT & enterprise systems for customers,
help Transform customer processes to best practices, and Innovate with customers.
47               IBM UPward (University Programs worldwide – accelerating regional development)             © 2012 IBM Corporation
California Human Development Report 2011:
Measuring quality-of-life….




                                                                                                              http://www.measureofamerica.org/docs/APortraitOfCA.pdf
48          IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
Measuring Impact

 SSME: IBM Icon of Progress & IBM Research Outstanding Accomplishment
     –   Internal 10x return: CBM, IDG, SDM Pricing & Costing, BIW COBRA, SIMPLE, IoFT, Fringe, VCR
           • Key was tools to model customers & IBM better
           • Also tools to shift routine physical, mental, interactional & identify synergistic new ventures
           • Alignment with Smarter Planet & Analytics (instrumented, interconnected, intelligent)
           • Alignment with Smarter Cities, Smarter Campus, Smarter Buildings (Holistic Service Systems)
     –   External: More than $1B in national investments in Service Innovation activities
     –   External: Increase conferences, journals, and publications
     –   External: Service Science SIGs in Professional Associations
     –   External: Course & Program Guidelines for T-shaped Professionals, 500+ institutions
     –   External: National Service Science Institutions, Books & Case Studies (Open Services Innovation)

 Service Research, a Portfolio Approach
     –   1. Improve existing offerings (value propositions that can move the needle on KPI’s)
     –   2. Create new offerings (for old and new customers)
     –   3. Improve outcomes insourcing, outsourcing, acquisitions, divestitures (interconnect-fission-fusion)
     –   4. For all three of the above, improve customer/partner capabilities (ratchet each other up)
     –   5. For all four of the above, increase patents and service IP assets (some donated to open forums)
     –   6. For all five of the above, increase publications and body-of-knowledge (professional associations)



49                 IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
Who I am (http://www.service-science.info/archives/2233)
      Director IBM Global University Programs since 2009
         –   Global team works with 5000 university world wide (http://www.ibm.com/university)
         –   6 R’s: Research (Awards), Readiness (Skills), Recruiting, Revenue, Responsibility, Regions
         –   Transform ―IBM on Campus‖ brand awareness (―Smarter Planet/Smarter Cities‖)
         –   Create ―Urban Service System‖ Research Centers & U-BEEs
      Founding Director of IBM's first Service Research group from 2003-2009
         –   Almaden Research Center, San Jose, CA
         –   10x ROI with four IBM outstanding and eleven accomplishment awards
         –   Improve existing offerings, create new, portfolio synergies, partners, patents, publications
         –   I know/work with service research pioneers from many academic disciplines
                • I advocate for Service Science, Management, Engineering, and Design (SSME+D)
                     – Short-term: Curriculum (T-shaped people, deep in an existing discipline)
                     – Long-term: New transdiscipline and profession (awaiting CAD tool)
                • I advocate for ISSIP (―one of the founding fathers‖)
                • Co-editor of the ―Handbook of Service Science‖ (Springer 2010)
      Other background (late 90’s and before)
         –   Founding CTO of IBM’s Venture Capital Relations group in Silicon Valley
         –   Apple Computer’s (Distinguished Engineer Scientist and Technologist) award (90’s)
         –   Ph.D. Computer Science/Artificial Intelligence from Yale University (80’s)
         –   B.S. in Physics from MIT (70’s)



50                IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation
What is the future? We can imagine many possibilities…




           Kurzweilai.net
51        IBM UPward (University Programs worldwide – accelerating regional development)   © 2012 IBM Corporation

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Smarter planet asee glf 20120924 v3

  • 1. IBM University Programs worldwide, accelerating regional development (IBM Upward) Smarter Planet Maker-Bot: Replicator 2 Baxter: Building the Future Working Together to Build a Smarter Planet Dr. James (―Jim‖) C. Spohrer, spohrer@us.ibm.com Innovation Champion and Director IBM UPward (University Programs worldwide, accelerating regional development) ASEE Global Leadership Forum Monday September 24, 2012 © 2012 IBM Corporation
  • 2. Today’s Talk  Grand Challenges: Four Crises IBM Smarter Planet  Building a Smarter Planet  T-Shaped Professionals – Deep Problem Solving & Critical Thinking – Broad Communications & Leadership  Two Generations: Accelerating Change Nano-Bio-Info-Cogno 2 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 3. Grand Challenges…  Four Crises – Financial – Healthcare – Education – Government 3 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 4. What’s UP with IBM? University Programs 4 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 5. Most people say, “IBM makes computers” 5 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 6. Those in-the-know say, “IBM is helping to build a Smarter Planet…” 6 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 7. A Smarter Planet is built from smarter service systems… INSTRUMENTED INTERCONNECTED INTELLIGENT We now have the ability People, systems and We can respond to changes to measure, sense and objects can communicate quickly and accurately, see the exact condition and interact with each and get better results of practically everything. other in entirely new ways. by predicting and optimizing for future events. PRODUCTS IT NETWORKS COMMUNICATIONS WORKFORCE SUPPLY CHAIN TRANSPORTATION BUILDINGS 7 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 8. City challenge: buildings and transportation Ryan Chin: Smart Cities 8 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 9. Streetline: Instrumented-Interconnected-Intelligent 9 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 10. Example: Streetline 10 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 11. Neonatal ICU: Instrumented-Interconnected-Intelligent 11 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 12. A city is essentially a system of service systems— transportation, healthcare, public safety and education. To enable a Smarter City, IBM is working to improve the quality & efficiency of service systems and how they operate and function. 12 IBM GMU External Relations 2012
  • 13. Cities: land-population-energy-carbon Carlo Ratti: Senseable Cities 13 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 14. 14 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 15. Smarter City Intelligent Operations Center (SC IOC) 15 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 16. Four commandments for cities of the future: Eduardo Paes at TED2012 16 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 17. SC IOC as a Platform for Innovation 17 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 18. Regional Competitiveness and U-BEEs: Where imagined possible worlds become observable real worlds http://www.service-science.info/archives/1056 Innovations Nation Universities/ ―The future is already State/Province here (at universities), Regions City/Region Calculus (Cambridge/UK) For-profits it is just not evenly Physics (Cambridge/UK) U-BEE Computer Science (Columbia/NY) distributed.‖ Microsoft (Harvard/WA) Job Creator/Sustainer Yahoo (Stanford/CA) Hospital Cultural & University Google (Stanford/CA) Medical Conference College Facebook (Harvard/CA) Research Hotels K-12 ―The best way to Non-profits Worker (professional) Family (household) predict the future is to (inspire the next generation of students to) build it better.‖ U-BEEs = University-Based Entrepreneurial Ecosystems, City Within City 18 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 19. What improves Quality-of-Life? Service System Innovations * = US Labor % in 2009. A. Systems that focus on flow of things that humans need (~15%*) 1. Transportation & supply chain 2/7/4 0/19/0 2. Water & waste recycling/Climate & Environment 2/1/1 3. Food & products manufacturing 7/6/1 4. Energy & electricity grid/Clean Tech 1/1/0 5. Information and Communication Technologies (ICT access) 5/17/27 B. Systems that focus on human activity and development (~70%*) 6. Buildings & construction (smart spaces) (5%*) 1/0/2 7. Retail & hospitality/Media & entertainment/Tourism & sports (23%*) 24/24/1 8. Banking & finance/Business & consulting (wealthy) (21%*) 7/10/3 9. Healthcare & family life (healthy) (10%*) 2/20/24 10. Education & work life/Professions & entrepreneurship (wise) (9%*) 5/2/2 C. Systems that focus on human governance - security and opportunity (~15%*) 11. Cities & security for families and professionals (property tax) 3/3/1 12. States/regions & commercial development opportunities/investments (sales tax) 0/0/0 13. Nations/NGOs & citizens rights/rules/incentives/policies/laws (income tax) 1/2/2 Quality 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)‖ 19 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 20. T-shaped professionals depth & breadth Many cultures Many disciplines Many systems (understanding & communications) BREADTH Deep in one discipline Deep in one system Deep in one culture DEPTH (analytic thinking & problem solving) 20 20 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 21. Systems-Disciplines Framework: Depth & Breadth systems Systems that focus on flows of things Systems that support people’s activities Systems that govern transportation & ICT & retail & healthcare food & education city state nation disciplines supply chain water & energy products & electricity cloud building & hospitality banking & family &work secure scale laws waste construction & finance behavioral sciences Customer stakeholders e.g., marketing Provider management sciences e.g., operations Observe Stakeholders (As-Is) political sciences Authority e.g., public policy learning sciences Competitors e.g., game theory and strategy cognitive sciences People e.g., psychology resources system sciences Technology e.g., industrial eng. information sciences Observe Resource Access (As-Is) Information e.g., computer sci organization sciences Organizations e.g., knowledge mgmt History social sciences change e.g., econ & law (Data Analytics) decision sciences Imagine Possibilities (Has-Been & Might-Become) Future e.g., stats & design (Roadmap) run professions Run e.g., knowledge worker value Transform (Copy) transform professions e.g., consultant Realize Value (To-Be) Innovate innovate professions (Invent) e.g., entrepreneur 21 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 22. Proposed: National Academies Grand Challenges  IBM & Customers & Partners Fellows – IBM ($?100K/yr) (National Academies) – Customers & Partners ($?100K/yr)  National Academies Grand Challenges & Pipeline of People IBM Smarter Planet Competitions – Video Submissions (YouTube Social Media) Fellows – Analytics & DEEPQA (Big Data/Watson) (Corporate & – Smart Phone Apps (Citizens) – Business Plans (Entrepreneurs) Associations)  Ecosystems – National Academies – Professional Associations & Corporate Academies • IBM & AoT Professionals • Customers & Partners (STEM & Other) • ACM, IEEE, INFORMS, ISSIP, ASEE, etc. – Employers of Professionals (Academics, Industry, Government, Non-Profit) – Students (K-12, University) Students (STEM & Other) 22 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 23. Smarter 10% Internships Cities & Buildings Top IBM Students Water & Food 2.5% Fellowships Cisco Materials & Energy Health & Education 50% Employees HP Capstone Government Transportation & Start-Ups Apple Capstone Communications (50%) ... Smarter Capstone Capstone Retail & Hospitality Mentors Companies/ Universities/ Employers Research Areas Adjunct Faculty (Retirees, Alumni, Local) See ISSIP.org 23 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 24. Up-Skill = New Venture = Graduates with Smarter Planet skills = High-Growth Cycle = Acquisition = IBMer moving from Acquisition/ New IBM BU mature BU to acquisition (Growing) = IBMer moving into IBMer on Campus role (help create graduates = High-Productivity/ University-Region1 with Smarter-Planet skills, Mature IBM BU help create Smarter Planet oriented new ventures; (Shrinking) Refresh skills IBM University-Region2 24 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 25. Two Generations of Change: Past & Future Born: 1988 Born: 2012 Graduated College: 2011 Enters College: 2030 25 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 26. 2030 Transportation: Self-driving cars Steve Mahan: Test ―Driver‖ 26 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 27. 2030 Water 27 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 28. 2030 Manufacturing Ryan Chin: Urban Mobility 28 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 29. 2030 Energy 29 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 30. 2030 ICT 30 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 31. 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 Pioneered an online natural language Advancement of Question-Answering question answering system called START, Initiative (OAQA) architecture and which provided the ability to answer questions methodology with high precision using information from semi-structured and structured information repositories  Provided technological advancement enabling a computing system to remember the Worked to extend the full interaction, rather than treating every Worked on a visualization component to capabilities of Watson, with a question like the first one - simulating a real visually explain to external audiences the focus on extensive common dialogue massively parallel analytics skills it takes for sense knowledge the Watson computing system to break down a question and formulate a rapid and accurate response to rival a human brain Explored advanced machine learning techniques along with rich text representations based on syntactic and semantic structures for the Watson’s Focused on large-scale Worked on information information extraction, optimization retrieval and text search parsing, and knowledge technologies inference technologies http://w3.ibm.com/news/w3news/top_stories/2011/02/chq_watson_wrapup.html 31 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 32. 2030 Buildings: Recycled to be stronger, safer, cleaner China Broad Group: 30 Stories in 15 Days 32 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 33. 2030 Retail & Hospitality 33 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 34. 2030 Finance & Business 34 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 35. 2030 Health 35 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 36. 2030 Education: Watch one, do one, teach one… 36 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 37. 2030 Government Four measures  Innovativeness  Equity – Improve weakest link  Sustainability  Resiliency 37 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 38. 2030 and Beyond…. Government, Health, Education, Finance, etc. 38 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 39. A Framework for Global Civil Society  Daniel Patrick Moynihan said nearly 50 years ago: "If you want to build a world class city, build a great university and wait 200 years." His insight is true today – except yesterday's 200 years has become twenty. More than ever, universities will generate and sustain the world’s idea capitals and, as vital creators, incubators, connectors, and channels of thought and understanding, they will provide a framework for global civil society. – John Sexton, President NYU 39 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 40. IBM Almaden Research Center, Silicon Valley/San Jose, CA 40 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 41. In Conclusion: Two Books To Help Us All Prepare For Change 41 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 42. Thank-You! Questions? ―Instrumented, Interconnected, Intelligent – Let’s build a Smarter Planet.‖ – IBM ―If we are going to build a smarter planet, let’s start by building smarter cities‖ – CityForward.org ―Universities are major employers in cities and key to urban sustainability.‖ – Coalition of USU ―Cities learning from cities learning from cities.‖ – Fundacion Metropoli ―The future is already here… It is just not evenly distributed.‖ – Gibson ―The best way to predict the future is to create it/invent it.‖ – Moliere/Kay ―Real-world problems may not/refuse to respect discipline boundaries.‖ – Popper/Spohrer ―Today’s problems may come from yesterday’s solutions.‖ – Senge ―History is a race between education and catastrophe.‖ – H.G. Wells ―The future is born in universities.‖ – Kurilov ―Think global, act local.‖ – Geddes Dr. James (“Jim”) C. Spohrer Innovation Champion & Director, IBM University Programs worldwide accelerating regional development (IBM UPward) spohrer@us.ibm.com 42 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 43. IBM’s Leadership Change IBM has 426,000 employees worldwide 2011 Financials 22% of IBM’s revenue  Revenue - $ 106.9B in Growth Market countries; growing at  Net Income - $ 15.9B 11% in 2011  EPS - $ 13.44  Net Cash - $16.6B More than 40% of IBM’s workforce conducts business away from an office 55% of IBM’s Workforce IBM operates in 170 is New to the company in countries around the globe the last 5 years Number 1 in patent generation for 19 100 Years of Business consecutive years ; & Innovation in 2011 6,180 US patents awarded in 2011 The Smartest Machine On Earth 9 time winner of the 5 Nobel President’s National Laureates Medal of Technology & Innovation - latest “Let’s Build a Smarter award for Blue Gene Planet" Supercomputer 43 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 44. The New Normal: Smarter Systems Service Systems: Stakeholders & Resources 1. People 2. Technology 3. Shared Information 4. Organizations Computational System connected by win-win value propositions Smarter Technology Smarter Buildings, Universities, Cities Requires investment roadmap Requires investment roadmap 44 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 45. University: Four Missions Nation  Knowledge State/Province – 1. Transfer (Teaching) City/Metro For-profits U-BEE – 2. Creation (Research) Job Creator/Sustainer – 3. Application (Benefits) Cultural & University Hospital Medical Conference College • Commerce/Entrepreneurship Hotels K-12 Research • Governance/Policymaking Worker Family – 4. Re-Integration (Challenge) Non-profits (professional) (household) • Innovativeness, Equity • Sustainability, Resilience  Nested, Networked Holistic Service Systems – Flows Third Mission (Apply to Create Value) – Development is about U-BEEs = – Governance University-Based Entrepreneurial Ecosystems 45 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 46. Economic Shift in National Economies World’s Large Labor Forces US shift to service jobs A = Agriculture, G = Goods, S = Service 2010 2010 Nation Labor A G S 40yr Service % WW % % % Growth (A) Agriculture: Value from China 25.7 49 22 29 142% harvesting nature India 14.4 60 17 23 35% (G) Goods: U.S. 5.1 1 23 76 23% Value from making products Indonesia 3.5 45 16 39 34% (S) Service: Brazil 3.0 20 14 Daryl Pereira/Sunnyvale/IBM@IBMUS, 66 61% Value from IT augmented workers in smarter systems Russia 2.4 10 21 69 64% that create benefits for customers and sustainably improve quality of life. Japan 2.2 5 28 67 45% Nigeria 1.6 70 10 20 19% Bangladesh 2.1 63 11 26 37% Germany 1.4 3 33 64 42% NationMaster.com, International Labor Organization Note: Pakistan, Vietnam, and Mexico now larger LF than Germany 46 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 47. Growth of Service Revenue at IBM 2010 Pretax Income Mix Revenue Growth by Segment SYSTEMS (AND FINANCING) 100 Revenue ($B) SOFTWARE 80 Services 17% 44% 60 40 Software 39% 20 Systems 0 SERVICES 82 88 94 98 10 04 06 07 08 09 20 19 19 19 19 20 20 20 20 20 Year IBM Annual Reports What do IBM Service Professionals Do? Run IT & enterprise systems for customers, help Transform customer processes to best practices, and Innovate with customers. 47 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 48. California Human Development Report 2011: Measuring quality-of-life…. http://www.measureofamerica.org/docs/APortraitOfCA.pdf 48 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 49. Measuring Impact  SSME: IBM Icon of Progress & IBM Research Outstanding Accomplishment – Internal 10x return: CBM, IDG, SDM Pricing & Costing, BIW COBRA, SIMPLE, IoFT, Fringe, VCR • Key was tools to model customers & IBM better • Also tools to shift routine physical, mental, interactional & identify synergistic new ventures • Alignment with Smarter Planet & Analytics (instrumented, interconnected, intelligent) • Alignment with Smarter Cities, Smarter Campus, Smarter Buildings (Holistic Service Systems) – External: More than $1B in national investments in Service Innovation activities – External: Increase conferences, journals, and publications – External: Service Science SIGs in Professional Associations – External: Course & Program Guidelines for T-shaped Professionals, 500+ institutions – External: National Service Science Institutions, Books & Case Studies (Open Services Innovation)  Service Research, a Portfolio Approach – 1. Improve existing offerings (value propositions that can move the needle on KPI’s) – 2. Create new offerings (for old and new customers) – 3. Improve outcomes insourcing, outsourcing, acquisitions, divestitures (interconnect-fission-fusion) – 4. For all three of the above, improve customer/partner capabilities (ratchet each other up) – 5. For all four of the above, increase patents and service IP assets (some donated to open forums) – 6. For all five of the above, increase publications and body-of-knowledge (professional associations) 49 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 50. Who I am (http://www.service-science.info/archives/2233)  Director IBM Global University Programs since 2009 – Global team works with 5000 university world wide (http://www.ibm.com/university) – 6 R’s: Research (Awards), Readiness (Skills), Recruiting, Revenue, Responsibility, Regions – Transform ―IBM on Campus‖ brand awareness (―Smarter Planet/Smarter Cities‖) – Create ―Urban Service System‖ Research Centers & U-BEEs  Founding Director of IBM's first Service Research group from 2003-2009 – Almaden Research Center, San Jose, CA – 10x ROI with four IBM outstanding and eleven accomplishment awards – Improve existing offerings, create new, portfolio synergies, partners, patents, publications – I know/work with service research pioneers from many academic disciplines • I advocate for Service Science, Management, Engineering, and Design (SSME+D) – Short-term: Curriculum (T-shaped people, deep in an existing discipline) – Long-term: New transdiscipline and profession (awaiting CAD tool) • I advocate for ISSIP (―one of the founding fathers‖) • Co-editor of the ―Handbook of Service Science‖ (Springer 2010)  Other background (late 90’s and before) – Founding CTO of IBM’s Venture Capital Relations group in Silicon Valley – Apple Computer’s (Distinguished Engineer Scientist and Technologist) award (90’s) – Ph.D. Computer Science/Artificial Intelligence from Yale University (80’s) – B.S. in Physics from MIT (70’s) 50 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation
  • 51. What is the future? We can imagine many possibilities… Kurzweilai.net 51 IBM UPward (University Programs worldwide – accelerating regional development) © 2012 IBM Corporation