ibm 101 smarter planet and universities 20121011 v1

© 2012 IBM Corporation

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

IBM 101:Smarter Planet

andUniversities

Dr. James (“Jim”) C. Spohrer, [email protected] Champion and Director IBM UPward(University Programs worldwide, accelerating regional development)

Silicon Valley Venture Capital RoundtableFriday October 12, 2012

Working Together to Build a Smarter Planet

Baxter: Building the Future

Maker-Bot: Replicator 2

mailto:[email protected]

2 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)

Today’s Talk

IBM 101: Smarter Planet

IBM University Programs

Two Generations: Accelerating Change

Nano-Bio-Info-Cogno

IBM Smarter Planet


IBM operates in 170 countries around the globe

IBM has 426,000 employees worldwide

2011 Financials Revenue - $ 106.9B Net Income - $ 15.9B EPS - $ 13.44 Net Cash - $16.6B

22% of IBM’s revenue in Growth Market countries; growing at 11% in 2011

Number 1 in patent generation for 19 consecutive years ; 6,180 US patents awarded in 2011

More than 40% of IBM’s workforce conducts business away from an office

5 Nobel Laureates

9 time winner of the President’s National Medal of Technology & Innovation - latest award for Blue Gene Supercomputer

“Let’s Build a Smarter Planet"

The Smartest Machine On Earth

100 Years of Business & Innovation in 2011

IBM’s Leadership Changes

55% of IBM’s Workforce is New to the company in the last 5 years


What’s UP with IBM? University Programs


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

ways.

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


Example: Streetline


Neonatal ICU: Instrumented-Interconnected-Intelligent

IBM GMU External Relations 201212 IBM GMU External Relations 201212

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.


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


18

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

- in

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

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

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

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

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, [email protected] Programs lead: Dawn Tew, [email protected]


IBM University Programs:What We Do: The “6 R’s” (not to be confused with 3 R’s)

1. ResearchResearch awards focus on grand challenge problems and big bets

https://www.ibm.com/developerworks/university/research

2. ReadinessAccess to IBM tools, methods, and course materials to develop skills

https://www.ibm.com/developerworks/university/academicinitiative

3. RecruitingInternships and full-time positions working to build a smarter planet

http://www.ibm.com/jobs

4. RevenueImprove performance, the university as a complex enterprise (city within city)

http://www.ibm.com/services/us/gbs/bus/html/bcs_education.html

5. ResponsibilityCommunity service provides access to IBMers expertise/resources

http://www.ibm.com/ibm/ibmgives/

6. RegionsRegional innovation ecosystems – incubators, entrepreneurship, jobs

http://www.ibm.com/ibm/governmentalprograms/innovissue.html


What are the benefits of top-ranked universities?% WW GDP and % WW Top-500-Universities

Japan

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

0 1 2 3 4 5 6 7 8 9

% g

loba

l G

DP

% top 500 universities

Strong Correlation (2009 Data): National GDP and University Rankingshttp://www.upload-it.fr/files/1513639149/graph.html


What are the benefits of more education? Of higher skills?

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


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.”


Regional Competitiveness and U-BEEs: Where imagined possible worlds become observable real worldshttp://www.service-science.info/archives/1056

Nation

State/Province

City/Region

UniversityCollege

K-12

Cultural &ConferenceHotels

HospitalMedical

Research

Worker(professional)

Family(household)

For-profits

Non-profits

U-BEEJob Creator/Sustainer

U-BEEs = University-Based Entrepreneurial Ecosystems, City Within City

“The future is already here (at universities),it is just not evenlydistributed.”

“The best way topredict the futureis to (inspire the nextgeneration of studentsto) build it better.”

InnovationsUniversities/RegionsCalculus (Cambridge/UK)Physics (Cambridge/UK)Computer Science (Columbia/NY)Microsoft (Harvard/WA)Yahoo (Stanford/CA)Google (Stanford/CA)Facebook (Harvard/CA)


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 intoIBMer on Campus role(help create graduateswith Smarter-Planet skills,help create Smarter Planetoriented new ventures;Refresh skills

= Graduates withSmarter Planet skills

IBMIBM


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


2030 Energy


2030 ICT

31 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)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 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


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


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


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


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)[email protected]

“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

7/6/1

1/1/0

5/17/27

1/0/2

24/24/1

2/20/24

7/10/3

5/2/2

3/3/10/0/0

1/2/2

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)”

44 © 2012 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)44

T-shaped professionalsdepth & breadth

BREADTH

DE

PT

H

(analytic thinking & problem solving)

Many culturesMany disciplines

Many systems(understanding & communications)

Deep in one d

iscip

line

Deep in one sys

tem

Deep in one cu

lture


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

transportation & supply chain water &

waste

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

stake

holders Customer

Provider

Authority

Competitors

resources

People

Technology

Information

Organizations

change History

(Data Analytics)

Future(Roadmap)

value

Run

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


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

K-12

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


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

S%

G%

A %

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

44%

17%

39%

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

ww

.measureofam

erica.org/docs/AP

ortraitOfC

A.pdf


Smarter City Intelligent Operations Center (SC IOC)


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