Ibm smarter planet strategy 20130524 v5

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

Smarter Planet StrategyWelcome to“Silicon Valley/Bay Area”

Dr. James (“Jim”) C. Spohrer, spohrer@us.ibm.comInnovation Champion and Director IBM UPward(University Programs worldwide, accelerating regional development)May 24, 2013

Working together to build a Smarter Planet

IBM University Programs 6 R’s• Research (Collaborate)• Readiness (Skills)• Recruiting (Jobs)• Revenue (Solutions)• Responsibility (Volunteers)• Regions (Smarter Cities, Startups & Workforce)

04/11/23 © IBM 2013 IBM University Programs worldwide accelerating regional development (IBM UPward) 2

WORKFORCE

PRODUCTS

SUPPLY CHAIN

COMMUNICATIONS

TRANSPORTATION BUILDINGS

IBM University Programs

IBM Platforms for Entrepreneurs

• Smarter Cities Intelligent Operations Center Platform• IBM helping university startups to scale up (growth)04/11/23 © IBM 2013 IBM University Programs worldwide

accelerating regional development (IBM UPward) 3

From I to T-shape and Beyond!IBMers with more depth and breadth for a Smarter Planet

Many disciplinesMany sectors

Many regions/cultures(understanding & communications)

Deep in one sector

Deep in one region/culture

Deep in one discipline

IBM operates in 170 countries around the globe

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

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

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

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

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

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

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

The Smartest Machine On Earth

100 Years of Business & Innovation in 2011

New Era in IBM’s Leadership

IBM Growth Initiatives

IBM has ~425,000 employees worldwide

Context: IBM 101

IBMIBM’’s Story of Innovation: s Story of Innovation: Looking back at where we started..Looking back at where we started..

Innovation That Never StopsInnovation That Never Stops

Neonatal CareNeonatal Care12 Atom Storage12 Atom Storage

WatsonWatson 3D Systems3D Systems DNA TransistorDNA Transistor

Spoken Web

A Diversity of Disciplines Enables World Class A Diversity of Disciplines Enables World Class InnovationsInnovations

ChemistryComputer Science

ElectricalEngineering

Materials Science

Mathematical Science Physics

Service Science

Behavioral Science

BusinessInnovation

TechnologyInnovation

Social Innovation

Demand Innovation

Science & Engineering

Business & Management

Social & Cognitive Sciences

Economics & Markets

ResearchResearch’’s Strategic Discipliness Strategic Disciplines

Exploratory

Systems TechnologySoftware

Industry Solutions

Mathematics &Data Sciences

Service Science

IBM Research: IBM Research: The World is Our LabThe World is Our Lab

WatsonAlmaden

Austin

TokyoHaifaZurich

Dublin

Melbourne

Brazil

IBM Research labs

Labs added since 2010

Other IBM Research presence

IBM Research – Africa IBM Research – Africa

Nairobi, Kenya

Our 12th research lab

IBM’s first lab on the continent

Initial focus– Next Generation Public Sector

• e-government– Smarter Cities

• water & transportation– Human Capacity Development

• technology & business skills

Cognitive Systems Era

Eras of computingEras of computing

Programmable Systems Era

Tabulating Systems Era

On August 22, 1943, 105 men, women and children, among them 43 IBM employees, alighted from a special train that carried them across the continent to establish new homes and the new IBM Card Manufacturing Plant Number 5 at 16th

and St. John Streets, San Jose, CA.

Inspired by the function, power, and volume of the organic brain, IBM is developing TrueNorth, a novel modular, scalable, non-von Neumann, ultra-low power, cognitive computing architecture. TrueNorth consists of a scalable network of neurosynaptic cores, with each core containing neurons, dendrites, synapses, and axons. To set sail for TrueNorth, IBM developed Compass, a multi-threaded, massively parallel functional simulator and a parallel compiler that maps a network of long-distance pathways in the macaque monkey brain to TrueNorth. IBM and LBNL demonstrated near-perfect weak scaling on a 16 rack IBM Blue Gene/Q (262,144 processor cores, 256 TB memory), achieving an unprecedented scale of 256 million neurosynaptic cores containing 65 billion neurons and 16 trillion synapses running only 388× slower than real time with an average spiking rate of 8.1 Hz. By using emerging PGAS communication primitives, IBM also demonstrated 2× better real-time performance over MPI primitives on a 4 rack Blue Gene/P (16384 processor cores, 16 TB memory). Here is PDF of final paper. NEW NEWS: Since submitting the camera ready copy, using 96 Blue Gene/Q racks of the Lawrence Livermore National Lab Sequoia supercomputer (1,572,864 processor cores, 1.5 PB memory, 98,304 MPI processes, and 6,291,456 threads), IBM and LBNL achieved an unprecedented scale of 2.084 billion neurosynaptic cores containing 53x1010 neurons and 1.37x1014 synapses running only 1542× slower than real time. Here is PDF of IBM Research Report, RJ 10502.

1014 on November 14, 2012

Monkey Brain Wiring Diagram

400 areas

7,000 connections

Cognitive ComputingCognitive Computing

Recent Simulation of the Brain– Using novel techniques we have

simulated a rat scale brain

Develop an artificial nano-synapse

Develop an artificial cortex chip for a mouse and later for a cat

Demonstrate by running a virtual mouse and cat through a virtual maze in a 3D virtual world

Automobile

Technological Acceleration

0 25 50 100 125 15075Years

100TelephoneElectricity

Television

Cellular% P

•iPhone/iPad app developer•wireless marketing director•microfinance infrastructure designer•3D content developer for movies, TV•social network manager•deploying technology into the cloud •organic solar cell development•digital image management

Many top in-demand jobs in 2011 did not exist in 2005!

U.S Department of Labor estimates that today’s learner will have 10-14 jobs…

by the age of 38!

Estimates are 85% of the jobs today’s learners will be doing haven’t been invented yet

they'll be using technologies that don't exist to solve problems we don't yet know are problems

Five historical cycles …

~100 years of US job transformations

Source: US Bureau of Economic Analysis; McKinsey Global Institute Analysis

Most people say, “IBM makes computers”

Those in-the-know say, “IBM is helping to build a Smarter Planet…”

A Smarter Planet is built from smarter service systems…

INSTRUMENTED

We now have the ability to measure, sense and see the exact condition of practically everything.

INTERCONNECTED

People, systems and objects can communicate

and interact with each other in entirely new

INTELLIGENT

We can respond to changes quickly and accurately, and get better results

by predicting and optimizing

for future events.

WORKFORCE

PRODUCTS

SUPPLY CHAIN

COMMUNICATIONS

TRANSPORTATION BUILDINGS

IT NETWORKS

City challenge: buildings and transportation

Ryan Chin:Smart Cities

Streetline: Instrumented-Interconnected-Intelligent

Neonatal ICU: Instrumented-Interconnected-Intelligent

Cities: land-population-energy-carbon

Carlo Ratti:Senseable Cities

Four commandments for cities of the future: Eduardo Paes at TED2012

SC IOC as a Platform for Innovation

Identifies entrepreneurs developing businesses aligning with our Smarter Planet vision.

SmartCamp finalists raised more than $50m and received significant press in Wall Street Journal, Forbes and Bloomberg

Healthcare SmartCamp kickstart - Miami - May 15, 2012 Apply by April 27th

SmarterCities SmartCamp kickstart - New York - May 24, 2012 Apply by May 3rd

North America Regional SmartCamp - Boston - June 20 & 21, 2012 Apply by May 25th

apply now at www.ibm.com/isv/startup/smartcampapply now at www.ibm.com/isv/startup/smartcamp

Exclusive Networking andMentoring eventExclusive Networking andMentoring event

North America SmartCamp lead: Eric Apse, eapse@us.ibm.comUniversity Programs lead: Dawn Tew, dawn2@us.ibm.com

Digital Immigrant vs Digital Native

Born: 1988Graduated College: 2011

Born: 2012Enters College: 2030

2030 Transportation: Self-driving cars

Steve Mahan:Test “Driver”

2030 Water

2030 Manufacturing

Ryan Chin:Urban Mobility

Baxter: Building the Future

Maker-Bot: Replicator 2

2030 Energy

2030 ICT

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 Advancement of Question-Answering Initiative (OAQA) architecture and methodology

Pioneered an online natural language question answering system called START, which provided the ability to answer questions with high precision using information from semi-structured and structured information repositories

Worked to extend the capabilities of Watson, with a focus on extensive common sense knowledge

Focused on large-scale information extraction, parsing, and knowledge inference technologies

Worked on a visualization component to visually explain to external audiences the massively parallel analytics skills it takes for the Watson computing system to break down a question and formulate a rapid and accurate response to rival a human brain

Provided technological advancement enabling a computing system to remember the full interaction, rather than treating every question like the first one - simulating a real dialogue

Explored advanced machine learning techniques along with rich text representations based on syntactic and semantic structures for the Watson’s optimization

Worked on information retrieval and text search technologies

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

2030 Buildings: Recycled to be stronger, safer, cleaner

China Broad Group:30 Stories in 15 Days

2030 Retail & Hospitality

2030 Finance & Business

2030 Health

2030 Education: Watch one, do one, teach one…

2030 Government

Four measures

Innovativeness

Equity– Improve

weakestlink

Sustainability

Resiliency

Competitive Parity – Achieved.

The NFL has spent the last two decades touting its parity—the idea that any team can win on any given Sunday (or Monday or Thursday). But this year, parity has truly run wild.

… here's the wackiest thing: Through six weeks, 11 of the NFL's 32 teams are 3-3. The Journal asked the statistical gurus of Massey-Peabody Analytics to run a coin-flip simulation…

2030 and Beyond…. Government, Health, Education, Finance, etc.

Regional Economic Development (RED):We are all competing for collaborators

• Universities & Regional Economic Development Boards– Talent and infrastructure investments

• More high skill, high pay jobs to boost quality-of-life– Regional progress & continuous improvement upward spiral

• Smarter systems = Instrumented + Interconnected + Intelligent – Science of Service Systems: Nations, states, cities, universities

• Nested, networked holistic service systems co-create value (SSME+DAPP)

• IBM Global Innovation Network– Foresight: IBM Innovation Centers (IICs) & Customer Briefing Centers

• Global Technology Outlook (GTO) Report• Institute for Business Value (IBV) Studies• IBM Centers for Advanced Study (CAS)

– IBM Global R&D and Service Delivery Centers• Hardware, Software, Solutions & Service R&D• IT Data, Call, Analytics Service Delivery Centers

Government

Industry Academia

Regional Economic Development

IBM University Programs Worksheet:All Players: Benefits ($M) >> Costs

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr10 Total

IBM $M

RED $M

UNI $M

Bene-fits

IBM >$M

RED >$M

UNI >$M

IBM University Programs 6 R’s Proof-PointsIBM Smarter Cities & NYU CUSP Center for Urban Science and Progress Big Cities + Big Data Faculty Awards

MS in Applied Urban Science & Informatics

Academic, Government, Industry

NYU and NYU-Poly, Carnegie Mellon University, The City University of New York, The Indian Institute of Technology (Mumbai). The University of Toronto, The University of Warwick

IBM partners with State of Louisiana & City of Baton Rouge, & Louisiana State University

Creation Of 800-Job Technology Center In Downtown Baton Rouge

Gov. Jindal, Baton Rouge Mayor/President Kip Holden, Baton Rouge Area Foundation President and CEO John Davies, and Louisiana State University (LSU) College of Engineering Dean Richard Koubek.

The State will provide $14 million in funding over 10 years for expanded higher-education programs designed primarily to increase the number of annual computer science graduates.

IBM and Ohio State University collaborate to boost analytics skills in State of Ohio

Projected to create 500 new jobs and become an education and training hub for advanced data research, big data and cognitive computing

IBM worked with Ohio’s economic development organizations - aims to benefit than 30 regional companies in health care, financial services, government and retail.

State of Ohio providing incentives for the center.

IBM and Karlsruhe Institute of Technology collaborate on Service Science in Germany

The Karlsruhe Service Research Institute at KIT (Karlsruhe Institute of Technology) aims to be the leading European research institute in the field of Service Science.

Develop concepts, methods, and technologies relevant for innovators and decision-makers to create and capture value in an increasingly services-led economy..

Holistic interdisciplinary approach to solvebusiness problems along the dimensions of people, organization, information, and technology

IBM University Programs 6 R’s Proof-PointsIBM University Programs supports IBM’s Delivery Center at Brno in the Czech Republic IBM’s Delivery Center at Brno employs about 3,000 IT professionals and supports over 600 clients from around the world

Best practices have been established by local University Relations personnel for internship programs that support IBM’s resourcing needs

This local expertise is now planned to be extended and applied to the resourcing requirements of the Brno Delivery Center

IBM UP / SWG supports IBM’s new Delivery Center in Costa Rica with faculty training IBM’s Delivery Center in Costa Rica opened in May with 1,200

employees & intends to hire up to 1,000 new IT professionals by 2014

Part of IBM’s agreement includes working with 6 local universities to help build the future workforce and training them on IBM’s Cloud, Cyber Security & various other technologies

IBM UR & SWG team members along with NC State University faculty are conducting curriculum workshops for local faculty in country to “train the trainors”. IBM is the first company to offer such a creative approach to helping establish the latest in technology skills in Costa Rica

IBM and University of Mauritius collaborate to boost computer skills in the Indian Ocean Islands Region off the coast of Africa IBM and University of Mauritius struck a academic partnership to provide technology and training resources for computer science professionals at the University

IBM also launched an IBM Africa Technical Institute in Mauritius offering education about IBM technologies and how these solutions solve some of the challenges facing businesses and the public sector in Africa.

IBM technical staff will provide guest lectures to students and IBM will also offer research collaboration for UM researchers

IBM and Stellenbosch University collaborate for computer skills development in South Africa IBM and Stellenbosch University (SU) have partnered to open a Software Center of Excellence to assist students in building strong SW development skills

The COE is a first-of-its-kind in South Africa including a post-graduate computer laboratory with advanced software (including Rational) to provide a full-fledged software production environment for students to hone their skills.

The Center seeks to integrate the latest technologies into SU’s curriculum to prepare students for high-value job opportunities

IBM University Programs 6 R’s Proof-PointsIBM Russia & Bauman Moscow State Technical University launch Smarter Cities Dev’t Education Center

BMSTU launched the Smarter Cities Education Center as a strategic initiative w/ IBM to help students and city leaders develop expertise and apply innovative technologies to create smart solutions to tackle issues that have high social and economic impact for cities around the world.

Aligned with the Russian government's priorities for the modernization and technological development of urban centers, the center will support the development of IT skills crucial to Russia's innovation agenda

As part of the Smarter Commerce China Summit, IBM announced the joint Smarter Marketing Course Program with Chinese University of Hong Kong and Shanghai Jiaotong University

The collaboration helps students learn more about the enormous opportunities brought by Smart Commerce and technology marketing and promote the local talent education

The program will train students & industry leaders with advanced smarter marketing mindset and solutions and build ecosystem for Smarter Commerce business impact

IBM SWG, IBM China UR and Leading Universities in China Team Up on Joint EMBA Program

IBM India Univ Relations Receives Award from Zinnov Consulting

India University Relations was presented w/ the “Ecosystem Enablement for Universities” award from Zinnov Consulting for the 3rd consecutive year

The award recognizes IBM’s contribution towards the development of the University R&D Ecosystem through depth of research and breadth of reach across Tier 1, 2 and 3 universities

Zinnov is a consulting firm providing services in the area of offshore advisory, market research, competitor analysis, business research, data analytics and HR consulting to Fortune 1000 companies

IBM Research, CC&CA & IBM UP Supports Brazil with 3 PhD Fellowships for 2012

Flavio Figueiredo from Universidade Federal de Minas Gerais studying in filed of content popularity growth on online social networks

Ivan Mechado from Universidade Federal da Bahia studying in field of variabilities in product lines and the most suitable testing strategies

Gabriel Nazar from Universidade Federal do Rio Grande do Sul studying in the filed of cost-effective fault tolerance techniques for filed programmable gate arrays

7th R? Reputation

What Watson related skills do students need

in the 21st century?

How can individuals get involved with Watson?

What role can universities play in Watson’s development?

How will Watson technology redefine the future of smarter systems?

SKILLSDEVELOPMENT

STUDENT ENGAGEMENT RESEARCH

IBM University Programs Universities Matter #1

ChinaGermany

France

United KingdomItaly

Russia SpainBrazilCanada

IndiaMexico AustraliaSouth Korea

NetherlandsTurkey

Sweden

y = 0,7489x + 0,3534R² = 0,719

0 1 2 3 4 5 6 7 8 9

% top 500 universities

Nation’s % WW GDP and % Top 500 Universities (2009 Data)

…But it can be costly, American student loan debt is over $900M

“When we combined the impact of Harvard’s direct spending on payroll, purchasing and construction – the indirect impact of University spending – and the direct and indirect impact of off-campus spending by Harvard students – we can estimate that Harvard directly and indirectly accounted for nearly $4.8 billion in economic activity in the Boston area in fiscal year 2008, and more than 44,000 jobs.”

What is a U-BEE? A local job creator/sustainerInnovating “whole service” in all regions worldwide

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

Nation

State/Province

City/Region

UniversityCollege

Cultural &ConferenceHotels

HospitalMedical

Research

Worker(professional)

Family(household)

For-profits

Non-profits

U-BEEJob Creator/Sustainer

U-BEEs = University-Based Entrepreneurial Ecosystems

IBM University Programs On Campus IBMers

Up-SkillCycle

University-Region1University-Region1

University-Region2University-Region2

= New Venture

= Acquisition

= High-Growth Acquisition/ New IBM BU (Growing)

= High-Productivity/ Mature IBM BU (Shrinking)

= IBMer moving from mature BU to acquisition

= IBMer moving intoOn Campus IBMer role(help create graduateswith Smarter-Planet skills,help create Smarter Planetoriented new ventures;Refresh skills

= Graduates withSmarter Planet skills

IBMIBM

What’s UP at IBM?University Programs!

The 6 R’s helping to build a Smarter Planet: Research, Readiness, Recruiting, Revenue, Responsibility, Regions

Jim Spohrer, DirectorIBM University Programs (IBM UP)

http://www.ibm.com/universityMay 14, 2013

Today’s Talk

Welcome to Almaden Research Center!

Why Innovate?

IBM 101

GTO = Global Technology Outlook

Future = Smarter Planet

Universities = Smarter Cities Nano-Bio-Info-Cogno

IBM Smarter Planet

IBM SSME Centennial Icon of Progress

IBM Almaden Research Center, Silicon Valley/San Jose, CA

Service Innovators

ISSIP = International Society of Service Innovation Professionals

T-shaped Professionals– Depth

– Breadth

Register at:– ISSIP.org

T-shaped professionalsdepth & breadth

BREADTH

(analytic thinking & problem solving)

Many culturesMany disciplines

Many systems(understanding & communications)

Deep in one d

Deep in one sys

Deep in one cu

Systems-Disciplines Framework: Depth & BreadthSystems that focus on flows of things Systems that governSystems that support people’s activities

transportation & supply chain water &

food &products

energy & electricity

building & construction

healthcare& family

retail &hospitality banking

& finance

ICT &cloud

education &work

citysecure

statescale

nationlaws

social sciences

behavioral sciences

management sciences

political sciences

learning sciences

cognitive sciences

system sciences

information sciences

organization sciences

decision sciences

run professions

transform professions

innovate professions

e.g., econ & law

e.g., marketing

e.g., operations

e.g., public policy

e.g., game theory and strategy

e.g., psychology

e.g., industrial eng.

e.g., computer sci

e.g., knowledge mgmt

e.g., stats & design

e.g., knowledge worker

e.g., consultant

e.g., entrepreneur

holders Customer

Provider

Authority

Competitors

resources

People

Technology

Information

Organizations

change History

(Data Analytics)

Future(Roadmap)

Transform(Copy)

Innovate(Invent)

Observe Stakeholders (As-Is)

Observe Resource Access (As-Is)

Imagine Possibilities (Has-Been & Might-Become)

Realize Value (To-Be)

disciplines

systems

The New Normal: Smarter Systems

Computational System

Smarter TechnologyRequires investment roadmap

Service Systems: Stakeholders & Resources

1. People 2. Technology3. Shared Information4. Organizations

connected by win-win value propositions

Smarter Buildings, Universities, CitiesRequires investment roadmap

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

In Conclusion: Two Books To Help Us All Prepare For Change

Thank-You! Questions?

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

“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

What improves Quality-of-Life? Service System Innovations

A. Systems that focus on flow of things that humans need (~15%*)1. Transportation & supply chain

2. Water & waste recycling/Climate & Environment

3. Food & products manufacturing

4. Energy & electricity grid/Clean Tech

5. Information and Communication Technologies (ICT access)B. Systems that focus on human activity and development (~70%*)

6. Buildings & construction (smart spaces) (5%*)

7. Retail & hospitality/Media & entertainment/Tourism & sports (23%*)

8. Banking & finance/Business & consulting (wealthy) (21%*)

9. Healthcare & family life (healthy) (10%*)

10. Education & work life/Professions & entrepreneurship (wise) (9%*)C. Systems that focus on human governance - security and opportunity (~15%*)

11. Cities & security for families and professionals (property tax)

12. States/regions & commercial development opportunities/investments (sales tax)

13. Nations/NGOs & citizens rights/rules/incentives/policies/laws (income tax)

0/19/02/7/42/1/1

5/17/27

24/24/1

2/20/24

7/10/3

3/3/10/0/0

Quality of Life = Quality of Service + Quality of Jobs + Quality of Investment-Opportunities

* = US Labor % in 2009.

“61 Service Design 2010 (Japan) / 75 Service Marketing 2010 (Portugal)/78 Service-Oriented Computing 2010 (US)”

University: Four Missions

Knowledge– 1. Transfer (Teaching)

– 2. Creation (Research)

– 3. Application (Benefits)

• Commerce/Entrepreneurship• Governance/Policymaking

– 4. Re-Integration (Challenge)

• Innovativeness, Equity• Sustainability, Resilience

Nested, Networked Holistic Service Systems– Flows

– Development

– Governance

Nation

State/Province

City/Metro

UniversityCollege

Cultural &ConferenceHotels

HospitalMedical

Research

Worker(professional)

Family(household)

For-profits

Non-profits

U-BEEJob Creator/Sustainer

Third Mission (Apply to Create Value) is about U-BEEs = University-Based

Entrepreneurial Ecosystems

Universities Worldwide Accelerating Regional Development

“When we combined the impact of Harvard’s direct spending on payroll, purchasing and construction – the indirect impact of University spending – and the direct and indirect impact of off-campus spending by Harvard students – we can estimate that Harvard directly and indirectly accounted for nearly $4.8 billion in economic activity in the Boston area in fiscal year 2008, and more than 44,000 jobs.”

Economic Shift in National Economies

Daryl Pereira/Sunnyvale/IBM@IBMUS,

42%6433 3 1.4Germany

37%261163 2.1Bangladesh

19%201070 1.6Nigeria

45%6728 5 2.2Japan

64%692110 2.4Russia

61%661420 3.0Brazil

34%391645 3.5Indonesia

23%7623 1 5.1U.S.

35%23176014.4India

142%29224925.7China

40yr ServiceGrowth

Labor% WW

Nation

World’s Large Labor ForcesA = Agriculture, G = Goods, S = Service

20102010

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

US shift to service jobs

(A) Agriculture:Value from harvesting nature

(G) Goods:Value from making products

(S) Service:Value from

IT augmented workers in smarter systemsthat create benefits for customers

and sustainably improve quality of life.

Growth of Service Revenue at IBM

SOFTWARE

SYSTEMS(AND FINANCING)

SERVICES

2010 Pretax Income Mix Revenue Growth by Segment

Services

Software

Systems

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.

California Human Development Report 2011:Measuring quality-of-life…. http://w

.measureofam

erica.org/docs/AP

ortraitOfC

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)

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)

What is the future? We can imagine many possibilities…

Kurzweilai.net

Ibm smarter planet strategy 20130524 v5

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