© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education and Business Service Science Management & Engineering.

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education and Business Service Science Management & Engineering - London 1st July 2008 The Challenge of Services in the 21st Century - Opportunities for Education and Business Kevin Bishop, Vice President, Marketing, IBM NE Europe

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 2 Outline  Why Focus on Service?  Business challenges in service  Service Science whitepaper

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 3 Why focus on service?  Major proportion of GDP and employment in western world –Service sector accounts for over 70% of EU’s economic activity –Nearly 70% of EU’s workforce are employed in service sectors  China and India are also assessing their role in the service economy Source: OECD

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 5 Why Services Science? Services dominate Developed economies globally, but lag in R&D, training and professionalisation. Their importance as a motor for growth and competitive advantage drives the need to close these gaps. Source: OECD Science, Technology and Industry Outlook 2004 - Jerry Sheehan Norway Iceland Sweden Finland Portugal Austria Netherlands Italy France Spain Greece Germany Denmark Belgium 20 30 40 50 60 70 0.00.51.01.52.02.53.03.54.04.5 Average BERD intensity, 1995-2000 as a % of GDP (OECD data) Innovation density, 1998-2000 as a % total firms (Eurostat CIS3 survey) Norway Iceland Sweden Finland Portugal Austria Netherlands Italy France Spain Greece Germany Denmark Belgium 20 30 40 50 60 70 0.00.20.40.60.8 Average BERD intensity, 1995-2000 as a % of GDP (OECD data) Innovation density, 1998-2000 as a % total firms (Eurostat CIS3 survey) ManufacturingServices © 2008, IBM

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 7 Business Challenges in Service  Understanding the nature of service systems  Developing new and better services and speeding up new service introduction process  Managing the transition to a service culture  Getting/keeping people with service mindset and skills

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 8 Service Systems: a type of complex system “People-Oriented, Services-Intensive, Market-Facing Complex Systems – complex systems and services – are very similar areas around which we are framing the very complicated problems of business and societal systems that we are trying to understand.” – Irving Wladawsky-Berger, IBM VP Innovation (Oct. 9, 2006) Unravelling and understanding complex systems is a foundation stone for SSME, from which better services concepts, implementation and management models and tools can be developed. © 2008, IBM

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 9 What Problem Are We Trying To Solve?  Corporations, academia and government are now acknowledging the need to invest in service innovation in order to support the evolving globally distributed service-dominated economies.  Customer satisfaction with services is low and in many cases declining, industry dependency on service revenue is increasing and the economics for effective delivery are poor – especially in professional services.  The gap between customer demands and fulfilled expectations is growing due increased complexity. This leaves corporations, governments and national economies exposed to the potential of competitive and economic threats.  As technology becomes more complex, B2B and B2C companies must assume prime responsibility for customer consumption and retention. What is required? Fundamental and actionable changes in our approach to service delivery through research and innovation What are the Goals? More value and higher satisfaction levels for customers Dramatically improved margins for industry Industry relevant projects for Academia

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 10 Developing people with the service mindset and skills  Depth  Breadth  Practical Experience  Communications  Teaming  Management  People Management  Strategic Planning  Problem solving via informatics  Problem solving via social networks  Flexible, adaptive and entrepreneurial  Produced on demand Service Scientists: Adaptive Innovators Source: IBM Research survey March 2007 What industry wants from professional researchers The skills needed for services innovation are in short supply; science and engineering tertiary education does not seek to develop skills required for innovation and entrepreneurship. “Need l-shaped, T-Shaped people …” Stuart Feldman (Oct 6, 2006) © 2008, IBM

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 11 SSME: what is it?  SSME is an urgent call to action to get more systematic about service innovation  SSME is also a proposed academic discipline and the basis for a proposed new profession – the service scientist  SSME is also a proposed research area, the study of service systems  SSME is highly multidisciplinary and spans areas of science, engineering, and management  To oversimplify: –Science is a way to transform data about service systems into knowledge –Engineering transforms the knowledge into new value –Management continuously improves the end-to-end value creation process and directs investment SSME is a call to action to improve service innovation, an emerging academic discipline and a new, integrative area of research. © 2008, IBM

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 12 D. Service Management 1.Service Marketing 2.Service Operations 3.Service Management 4.Service Innovation Management 5.Service Leadership 6.Service Quality 7.Service Lifecycle 8.Human Resources Management 9.Customer Relationship Management 10.Service Accounting 11.Service Sourcing 12.Services Law 13.Globalization of Services 14.Service Management Education D. Human Behavior in Service Systems 1.Service Systems Evolution 2.Behavioral Models of Services 3.Decision Making in Services 4.People in Service Systems 5.Organizational Change in Services 6.Measurement and Incentive in Services 7.Customer Psychology E. Service Design 1.Service Design Theory 2.Service Design Methodology 3.Service Representation 4.Aesthetics of Services 5.Service Design Education G. Service Arts 1.Service Arts Theory 2.Services-Inspired Art 3.Traditional Service Arts 4.Contemporary Service Arts 5.History of Service Arts H. Service Industries 1.The Service Industry 2.Information Services 3.Business Services 4.Professional Services 5.Business Consulting 6.Customer Relations 7.Maintenance and Repair 8.Public Services 9.Social Services 10.Health 11.Hospitality 12.Transportation 13.Retail and Wholesale 14.Financial 15.Entertainment and Media 16.Religious and Spiritual Services 17.Other Service Industries A. General 1.SSME Education 2.Research in SSME 3.SSME Policy 4.History of Services 5.Services Market 6.Miscellaneous B. Service Science 1.Service Theory 2.Economics of Services 3.Mathematical Models of Services 4.Services as Value Co-Creation Systems 5.Services as Dynamic Systems 6.Services as Multi-agent Systems 7.Services as Customer-Intensive Systems 8.Service Complexity Theory 9.Service Innovation Theory 10.Service Science Education C. Service Engineering 1.Service Operations 2.Service Optimization 3.Service Systems Engineering 4.Service Supply Chains 5.Service Engineering Management 6.Service Systems Performance 7.Service Information Systems 8.Service Standards 9.Assetization of Services 10.Service Engineering Education Services Science: what’s in the box? SSME - Service Science, Management, and Engineering Discipline Classification System v 0.2 May 2007 https://w3.webahead.ibm.com/w3ki/display/SSME/SSME+Disciplines © 2008, IBM

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 13 Services Science: the roadmap for skills © 2008, IBM SSME Launched 2004 Establish Awareness 2004-2006 Adoption 2007-2009 Embed 2008-2010 Business Value 2009 and Beyond Plan MobilizeExecuteReinforce Increase Focus and Impact for SSME/S421C Key Activities/Metrics Results  White papers  Initial discussions with university partners  Workshops  Press hits on SSME/S421C  Web hits  Awareness in academia, industry,gov’t  Early adopters  SSME Summit  SSME tools and programs growing  S421C defined  Service systems as complex systems  Government and foundation funding  SSME graduates  Internal training  Internal hiring plans  Better trained workforce  +Service innovation  +Sales impact  +Client satisfaction  +Productivity  +Efficiency  +Learning speed on engagements  Broadened awareness  SSME curriculum development focus and buy in  Joint research projects/awards  Case studies developed  Cross IBM SSME  White papers  Initial discussions with university partners  White papers  Initial discussions with university partners  Workshops  Press hits on SSME/S421C  Web hits  Awareness in academia, industry,gov’t  Early adopters  SSME Summit  SSME tools and programs growing  S421C defined  Service systems as complex systems  Government and foundation funding  SSME graduates  Internal training  Internal hiring plans  Better trained workforce  +Service innovation  +Sales impact  +Client satisfaction  +Productivity  +Efficiency  +Learning speed on engagements  Broadened awareness  SSME curriculum development  Joint research projects/awards  Case studies developed  Workshops  Press hits on SSME/S421C  Web hits  Awareness in academia, industry,gov’t  Early adopters  SSME Summit  Workshops  Press hits on SSME/S421C  Web hits  Awareness in academia, industry,gov’t  Early adopters  SSME Summit  SSME tools and programs growing  S421C defined  Service systems as complex systems  Government and foundation funding  SSME graduates  Internal training  Internal hiring plans  SSME tools and programs growing  S421C defined  Service systems as complex systems  Government and foundation funding  SSME graduates  Internal training  Internal hiring plans  Better trained workforce  +Service innovation  +Sales impact  +Client satisfaction  +Productivity  +Efficiency  +Learning speed on engagements  Better trained workforce  +Service innovation  +Sales impact  +Client satisfaction  +Productivity  +Efficiency  +Learning speed on engagements  Broadened awareness  SSME curriculum development  Joint research projects/awards  Case studies developed  Broadened awareness  SSME curriculum development  Joint research projects/awards  Case studies developed

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 15 Key Objectives  To build consensus on the need for service innovation  To identify knowledge and skills required for service innovation  To offer recommendations for business, government and academia

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 16 Paper Development Process Launch Process / Form Industrial & Academic Committee Industry / Academic Symposium In Cambridge Green Paper Development Broad Industrial, Government & Academic Consultation Process Paper Revision and Whitepaper Release Mar 07July 07July - Sept 07Oct - Dec 07Feb - Mar 08

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 17 Improve understanding & create needed dialogue Align stakeholder commitments & actions Service Science Systematic approach to service innovation Shared language and frameworks Deep customer- provider knowledge and modelling Broad inclusive interdisciplinary & cultural approach Awareness and prioritisation Education: Adaptive innovators (“service mindset”) & SSME certificates (“T-shaped”) Research: Service systems & Value propositions as foundational and integrative concepts Business & Government: Service innovation roadmaps & Raised awareness Strategies to guide on- going change Transforming performance measurement Increasing Value from Service Innovation Improve service quality, productivity & compliance Sustainable innovation with reduced environmental hazards & risks Improvements in employment Economic growth & prosperity Overall Objectives Concepts & Deliverables Key Challenges Stakeholder Priorities Enabling Solution “Succeeding through Service Innovation” White Paper Education: People & Expertise Research: Bridging & Integrating Practitioners & Policy Makers: Data & Investment Rationale and logic flow

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 18 Recommendations for business 1.Review existing approaches to building repeatable service systems and expand project-based collaboration with multidisciplinary teams from academia; 2.Build large and inclusive interdisciplinary service science communities involving graduates with SSME qualifications; 3.Provide specific challenges and funding for service system research; 4.Develop appropriate organisational arrangements and practices in the area of business partnerships to enhance industry-academic collaboration; 5.Work with stakeholders to include sustainability measures and create actionable service innovation roadmaps.

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 19 Recommendations for policy 1.Promote the importance of service systems and fund the development of an integrated theory of service systems; 2.Require leading-edge practices in government agencies to develop infrastructures, methods and data sets for service innovation; 3.Develop reliable economic data on knowledge-intensive service activities across sectors to underpin leading practice for service innovation; 4.Make public service systems more comprehensive and citizen-responsive; 5.Encourage the development of service innovation roadmaps through industry-academia-government collaboration.

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 20 Recommendations for research 1.Develop an interdisciplinary approach to service research; 2.Foster disciplinary bridging and integration efforts with grand research challenges; 3.Establish service system and value proposition as foundational concepts; 4.Work with practitioners to create data sets to better understand the design and evolution of service systems; 5.Create modelling and simulation tools for service systems.

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 21 Recommendations for education 1.Enable graduates from various disciplines to become “T- shaped professionals”, adaptive innovators with a “service mindset”; 2.Promote SSME programmes and qualifications; 3.Develop a modular template-based SSME curriculum; 4.Explore alternative and innovative provisioning routes for SSME related education.

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 22 Social Science (People) Management (Business) Engineering (Technology) Core Field of Study Interactional Expertise Across Other Fields Tower of Babel  “Biggest problem in business is people don’t know how to talk to other people in the language they understand.”  Charles Holliday, CEO Dupont Based on slides by Jean Paul Jacob, IBM Across industries Across cultures Across functions Across disciplines = More experienced More adaptive More collaborative Designed together How will the education system meet the growing demand for T-shaped people across both global and local service enterprises?

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 23 Summary  The changing business landscape makes service innovation an imperative.  Service innovation requires a better understanding of service systems, but the knowledge and skills required are not readily available.  Business, government and academia need to work together towards an interdisciplinary approach to research and education.  The whitepaper, in conjunction with initiatives like SSMENetUK, serves as a basis for formulating action plans.

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 24 The need, the response & the part you can play.. 10.00 am Welcome and Introduction 10.15 am Keynote: Growth in the Services Economy: The need for new knowledge and skills 11.00 am Panel: Services, business & needs for a skilled workforce 12.15 pm Lunch 1.00 pm Panel: Responding to the need for transformation in Higher Education 2.15 pm Breakout: Your Response 3:30 pm Next: The September workshop and follow-up

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education & Business Service Science Management & Engineering - London 1st July 2008 25 Thank you Thank You Merci Grazie Gracias Obrigado Danke Japanese English French Russian German Italian Spanish Brazilian Portuguese Arabic Traditional Chinese Simplified Chinese Hindi Tamil Thai Korean Diol ch Welsh

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education and Business Service Science Management & Engineering - London 1st July 2008 IBM Appendix: Services Science progress © 2008, IBM

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA Executive summary Services innovation is the 21 st century differentiator in the globalised economy IBM is a global leader in stimulating the development of a ‘science of services’ Services Science is the study and application of Scientific, Management, and Engineering disciplines to Services (‘SSME’) Hence services research, drawing on a wide range of disciplines, is a central motor for SSME Embracing and leading in SSME will be essential to grow and differentiate IBM services businesses; many potential business benefits have been advanced which need to be tested This will require collaboration spanning IBM Research and all market- facing business units, working with clients and academia in a collaborative framework on a local and WW basis © 2008, IBM

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA What’s been achieved so far: U.S. perspective Global Community driven out of Almaden –Monthly SSME Forum Calls Internal awareness and connection-building –Monthly SSME Global Leadership Calls Lab focal point for internal and external SSME activities Thought Leadership and Press –Over 100 US press articles (e.g., NY Times, Wall Street Journal) –Over 12,000 web hits and growing by over 500 a month –SRI announcement – Service Research and Innovation Initiative – includes other industry players, such as Oracle, Accenture, Cisco Science and Publications –15 academic articles (e.g., CACM special issue, POMS, IEEE Computer); – IBM Systems Journal in progress –16 conferences, workshops, panels (e.g., INFORMS, Frontiers) –Special Interest Groups formed in INFORMS, AIS, HFES; IEEE and ACM SSME has gathered major global momentum in the last 24 months in media, research, industry and government © 2008, IBM

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA What’s been achieved so far: U.S. perspective Workshops and Funding –SSME summit at Palisades with more than 250 participants from 22 countries –10+ National Workshops (China, Japan, India, Norway, Germany, Israel, Ireland, Nordic, Portugal) –Germany – $87M Innovation with Service –Japan – $30M Service Productivity –China – Five Year Plan in Modern Services –Pending – EU NESSI; US legislation; NSF Complex Systems –NESSI Service Engineering, Service Science working groups –Taiwan, Korea, Portugal, India – includes government sponsorship (MOU’s) –WIRED – Maine, New Hampshire, Vermonet SSME Curriculum development (US Dept of Labor) –9 recent SUR’s: NYU, Friedrich Schiller University, Wageningen University, University of Stuttgart, University of Karlsruhe, University of Lecce, Universidad Carlos III de Madrid, Universität Frankfurt Main, University of Hawaii Maui Community College SSME has gathered major global momentum in the last 24 months in media, research, industry and government © 2008, IBM

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA Skill Needs and Course Development –2006 – 38 courses, programs, degrees in 11 countries (e.g., Berkeley, NCSU) –2007 – new schools are planning or implementing courses – now in 28 countries University of Sydney – using ASR course modules Berkeley Masters Program in Information and Service Design (ischool) University of Washington, Systems Engineering certificate University of Buffalo proposing a plan for new courses Catholic University Argentina also working with ASR “Considerations for the use of Methods” course module added to ASR materials –Representation for internal call to action at the TLE in Anaheim SSME has gathered major global momentum in the last 24 months in media, research, industry and government © 2008, IBM What’s been achieved so far: U.S. perspective

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA 9 January 2008. The following note is being sent on behalf of Kevin Faughnan, Director, IBM Academic Initiative: Dear University Ambassadors We continue to expand the global footprint of our Service Science Management and Engineering (SSME) initiative. Yesterday, one of the premier technical universities in Germany, the University of Karlsruhe, signed an agreement to establish Europe's first joint institute for service research. The new "Karlsruhe Service Research Institute" will advance research and discovery in the service sector, as well prepare university graduates for the growing number of multi-disciplinary jobs in the new economy. The Institute will open its doors in the summer of 2008 and roll out a series of service-oriented classes and seminars for business and engineering students. In support of this collaboration, IBM researchers will undertake projects with Karlsruhe researchers at the university site. The university and IBM are also financing new professorships in SSME to promote integrated business and technology lessons in the classroom. Please take a moment to read the attached press release on the announcement, and share this "first of a kind" initiative with your university counterparts. It's an important proof point in our drive to implement SSME in collaboration with our university partners. SSME has gathered major global momentum in the last 24 months in media, research, industry and government © 2008, IBM What’s been achieved so far: in Europe

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA Key SSME Conferences / Publications –Cambridge Service Science, Management and Engineering Symposium with IBM co-sponsorship – July 2007 –Associated Green Paper: ‘Succeeding through Service Innovation: Developing a service perspective on economic growth and prosperity –Associated White Paper Related SSME Developments –*Service Science Forum run by Exeter University in Oct 07 & Mar 08 http://www.centres.ex.ac.uk/cserv/business_linked_activities/service_science_forum.php IBM Keynotes @ –Images of Manufacturing Conference (EPSRC Manufacturing Futures Network) Oct 18 - pitch on 'Succeeding through Service Innovation, the Emerging discipline of Service Science' –IBM Key Note Speech at 21st Service Workshop @ Westminster - IBM & the SSME Initiative SSME has gathered major global momentum in the last 24 months in media, research, industry and government © 2008, IBM What’s been achieved so far: in the UK

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA Core Research –EPSRC/BAE Systems £2 million research grant for Service & Support Engineering Solutions to research consortium led by Professor Duncan McFarlane of the University of Cambridge. –AIM - Advanced Institute of Management Research - 'AIM - the UK's Research Initiative on Management' - Call for Mid Career Fellowships on Services –6 AIM Research Fellowships in Services announced –'The Economic and Social Research Council (ESRC) is inviting applications from eligible institutions for Mid-Career Fellowships focused on services research' http://www.aimresearch.org/overviewnews.html http://www.aimresearch.org/overviewnews.html Related Research –Imperial College, London - IBM participation in 'Platforms for Innovation Research Project being launched by Imperial College –Said Business School, Oxford - IBM participation in the 'Designing for Services' Research project lead by Lucy Kimbell of the Said BS –EPSRC 'Block Grant' for Research in 'Servitisation' to Cranfield University.. the transition from manufacturing to services SSME has gathered major global momentum in the last 24 months in media, research, industry and government © 2008, IBM What’s been achieved so far: in the UK

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA SSME-related Curriculum Development –MSc in Service Science at Westminster University announced 16th November at the 21st Service Workshop @ Westminster University –MSc in Service Science & Management at Exeter University - actually announced in July (see http://www.centres.ex.ac.uk/cserv/education/msc_service_science.php ) –Glasgow - potential SSME module in their MBA, joint research programme to be lead by Adam Smith Foundation, Glasgow Business School, European wide business journal issue dedicated to SSME & forthcoming European Conference (2008) –Judge Business School, Cambridge University - MBA elective from Jan 09 –Sheffield University - initial contact with Stephen Wood who has 'been tasked.. to look into how we might take the concept of service sciences forward in terms of research and teaching SSME has gathered major global momentum in the last 24 months in media, research, industry and government © 2008, IBM What’s been achieved so far: in the UK

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA 8/5/201539 “Why Should My Company Re-Think Its R&D Spend?” 1.True, Product Has Been the Engine That Pulls Through The Services. 2.But, In Some Markets, Services Is Beginning To Pull Products. 3.And, Due To Its Sheer Size, Service Innovation May Be The Greatest Unrealized Economic Opportunity In The Company CEO Question: Why Focus on Services in Technology? Business Challenges in Services

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA 8/5/201540 Leading Business and Financial Issues Financial markets continue to undervalue services revenues and profits relative to products making it difficult for companies to justify service investments to financial analysts and shareholders. In consumer technology markets, consumers display an unwillingness to pay for low value service, but willing pay significant premiums for services they value. Customers are beginning to pressure maintenance prices due to low value but tech companies are reluctant to modify such a successful business model. Businesses can benefit from SSME by applying it in services engagements, in internal service design and by building SSME into services marketing

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA Service Systems: value co-creation Provider and customer interact to co-produce value Value is achieving desired change or the prevention or undoing of unwanted change Changes can be physical, mental, or social (= collective mental states – common or distributed knowledge) Value is in the eye of the beholder, and may include complex subjective intangibles, bartered – knowledge intensive Boundary of service experience in space and time may be complex Service is Value Co-production, or finding Win-Win interactions between a provider and a customer. A service system is an entity, individual, corporate or national. which consumes and produces services. Customer / Client Value Creation Provider Value Creation © 2008, IBM

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA Benefits: applying SSME in services engagements Increasing the breadth of the dialogue with the client Ability to resolve complex human, cultural conflicts Move IBM towards leadership position in service innovation Improved quality of delivery © 2008, IBM Source: AoT Study: Benefits of SSME Q3 2007 - https://w3.webahead.ibm.com/w3ki/display/SSME/AoT+Study+-+Benefits+of+SSME

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA Benefits: applying SSME in internal service design Reduce deal risk by broadening the scope of inspection Better end to end continuity - improved hand-offs, reduced cost of coordination More effective measurement of service delivery cost factors to allow more aggressive pricing Broader scope of continuous improvement to meet more aggressive standards © 2008, IBM Source: AoT Study: Benefits of SSME Q3 2007 - https://w3.webahead.ibm.com/w3ki/display/SSME/AoT+Study+-+Benefits+of+SSME

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA Benefits: applying SSME in services marketing Better articulation of the value proposition Better connection of the proposition to the customer values More objective or scientific costing of services: Expressing values and aspirations in services businesses Source: AoT Study: Benefits of SSME Q3 2007 - https://w3.webahead.ibm.com/w3ki/display/SSME/AoT+Study+-+Benefits+of+SSME © 2008, IBM

April 2-4, 2008 – Paris, France © 2008, AFSMI, SSPA, TPSA Benefits: refocusing academic research programmes Increase the contribution of research to the future of service based business –The research community finds it difficult to relate to the services world and develop relevant and valuable work; the services community lacks a framework into which such work could be fitted –Applying SSME in the services businesses would create such framework and a feedback loop that would enable more relevant research Discovery of white spaces in research agenda –Current SSME research programmes take a broad view of services. Stronger coupling with real business issues will stimulate the identification of specific topics: service value; design; foundations; human aspects and simulation. These should be driven by business needs which will stimulate research involvement in service tools, methods, quality, architecture and representation Open Innovation for IT Services –Areas of the IT industry have benefited from Open Source communities that develop standards and sharable assets although IT Services remains fragmented with incompatible tools and methods and high level of wasted effort. Research should become an active participant in services open standards Delineation of proprietary areas of research –Having understood where business wishes to engage in open innovation, firms will be better able to see where we wish to develop differentiating technologies. © 2008, IBM Source: AoT Study: Benefits of SSME Q3 2007 - https://w3.webahead.ibm.com/w3ki/display/SSME/AoT+Study+-+Benefits+of+SSME

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education and Business Service Science Management & Engineering.

Similar presentations

Presentation on theme: "© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education and Business Service Science Management & Engineering."— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education and Business Service Science Management & Engineering.

Similar presentations

Presentation on theme: "© 2008 IBM Corporation The Challenge of Services in the 21st Century: Opportunities for Education and Business Service Science Management & Engineering."— Presentation transcript:

Similar presentations

About project

Feedback