San José State University 1 Introduction to Service Science, Management, Engineering, and Design (SSMED) Stephen K. Kwan, Ph.D. Professor, Service Science, MIS College of Business

San José State University 2 What is SSME? (Services Sciences, Management, and Engineering) The application of scientific, management, and engineering disciplines to tasks that one organization beneficially performs for and with another (‘services’)The application of scientific, management, and engineering disciplines to tasks that one organization beneficially performs for and with another (‘services’) Science is a way to create knowledgeScience is a way to create knowledge Engineering is a way to apply knowledge and create new valueEngineering is a way to apply knowledge and create new value Business Model is a way to apply knowledge and capture valueBusiness Model is a way to apply knowledge and capture value Management improves the process of creating and capturing valueManagement improves the process of creating and capturing value

San José State University Service Science is short for Service Science, Management, Engineering, and Design (SSMED 1 ). Service Science is concerned with the study of Service Systems. cf. Computer Science is concerned with the study of Computer Systems. Service Systems are man-made complex systems designed to improve the quality of life by co-creating value through value propositions among the stake-holders. Some Definitions 1 Spohrer, J., Kwan, S.K. “Service Science, Management, Engineering, and Design (SSMED): An Emerging Discipline – Outline and References”, International Journal of Information Systems in the Service Sector, 1(3), 2009.

San José State University 4 “ Service Science is just ___ ____” OR/IEMS CS/AI Multiagent Systems Economics & Law Game Theory MIS Anthropology & Psychology OrganizationTheory A Service System is Complex ServiceOperationsMarketingManagementQuality Supply Chain Human Factors DesignInnovationEngineeringSystemsComputingEconomicsArtsScience Information Science(i-schools) GeneralSystemsTheory

San José State University 5 What kinds of skills should a service scientist have? Academic disciplines evolving to combine technology, business, and social-organization Technology Business Social- Organizational Information Sci & Sys 2. Service Ops & Mgmt 3. Service Engineering 4. Service Marketing 5. Social Complexity 6. Agent-based comput- ational economics 7. Computational Organization Theory 14. Computer & Information Sciences 15. Human Capital Management (HCM) 16. Organization Theory 17. Operations Research 18. Systems Engineering 19. Management Science 20. Game Theory 21. Industrial Engineering 22. Marketing 23. Managerial Psychology Before Management of Innovation & Tech (MoT) 9. Experimental Economics 10. AI & Games 11. Management of Information Systems 12. Computer Supported Collab. Work (CSCW) 13. Performance Support Systems In Business & Organization 24. Business Administration (MBA) 25. Economics 26. Law 27. Sociology 28. Education

San José State University 6 42% Germany 37% Bangladesh 19% Nigeria 45% Japan 64% Russia 61% Brazil 34% Indonesia 23% U.S. 35% India 142% China 40yr Service Growth S%S% G%G% A%A% Labor % Nation World’s Large Labor Forces A = Agriculture, G = Goods, S = Service 2009 The largest labor force migration in human history is underway, driven by global communications, business and technology growth, urbanization and regional variations in labor and infrastructure costs and capabilities. (A) Agriculture: Value from harvesting nature (G) Goods: Value from making products (S) Service: Value from enhancing the capabilities of people and their ability to interconnect and co-create value Changing nature of work - away from farms and factories… Employment Change Numeric change in wage-salary employment by industry sector, projected (Thousands) Professional and business service 4566 Healthcare and social assistance 4303 cf. Figure 1.2 in text

San José State University Estimations based on Porat, M. (1977) Info Economy: Definitions and Measurement Estimated world (pre-1800) and then U.S. Labor Percentages by Sector The Origin of Wealth by Eric D. Beinhocker 2M years as hunting clans/bands 10K years as farm families 200 years as factory workers 60 years (so far) as knowledge workers in organizations and now digital networks Service Worlds: Economics and Social Science Information services is where recent growth is The Pursuit of Organizational Intelligence, By James G. March

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San José State University 13 In its 11th Five-Year Plan, China had targeted an increase of the service sector’s output to 43.3% of GDP by 2010, up from 40.3% in 2005 In its 12th Five-Year Plan, China had targeted an increase of the service sector’s value-added output to 47.3% of GDP by 2015, up 4%.

San José State University 14 Barriers for Trade in Services? re: Page 7 in text

San José State University 15 “America Competes Act” Public Law th Congress “To invest in innovation through research and development, and to improve the competitiveness of the United States.” SEC STUDY OF SERVICE SCIENCE. (a) Sense of Congress.--It is the sense of Congress that, in order to strengthen the competitiveness of United States enterprises and institutions and to prepare the people of the United States for high-wage, high-skill employment, the Federal Government should better understand and respond strategically to the emerging management and learning discipline known as service science. (b) Study. No later than 1 year after the date of the enactment of this of Sciences, conduct a study and report to Congress on how the Federal Government should support, through research, education, and training, the emerging management and learning discipline known as service science. (c) Outside Resources.--In conducting the study under subsection (b), the National Academy of Sciences shall consult with leaders from 2- and 4-year institutions of higher education, as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)), leaders from corporations, and other relevant parties. (d) Service Science Defined.--In this section, the term “service science” means curricula, training, and research programs [[Page 121 STAT. 578]]that are designed to teach individuals to apply scientific, engineering, and management disciplines that integrate elements of computer science, operations research, industrial engineering, business Strategy, management sciences, and social and legal sciences, in order to encourage innovation in how organizations create value for customers and shareholders that could not be achieved through such disciplines working in isolation. The Law

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San José State University 18 ServiceInnovation Enterprises Government Academia

San José State University 19 Over 200 Universities world-wide are engaged are engaged

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San José State University 21 In-depth knowledge of a specific discipline Complex Communications Across Fields Across industries Across cultures Across functions Across disciplines = More experienced More adaptive More collaborative Broaden With SSME Educational program “We need to hire more T people!” Industry says: “We need to hire more T faculty!” Academia says: Develop New Knowledge with SSME Research Based on slides by Jean Paul Jacob of IBM

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San José State University 23 Current Goals: Develop a Service Systems Design Lab to support the Develop a Service Systems Design Lab to support the SSME Curriculum and Faculty Research – with Physical, Simulated, & Virtual environments Collaborate with NSF, industry and university partners in Collaborate with NSF, industry and university partners in implementing the concept Create a Consortium of Universities who are interested in Create a Consortium of Universities who are interested in implementing a Service Systems Design Lab Network Create and share a repository of Curriculum and Lab Create and share a repository of Curriculum and Labmaterials Disseminate the experience to other universities Disseminate the experience to other universities