IBM University Programs: Building a Smarter Planet

© 2012 IBM Corporation
IBM University Programs worldwide, accelerating regional development (IBM Upward)
Smarter Planet Strategy
Welcome to“Silicon Valley/Bay Area”
Dr. James (“Jim”) C. Spohrer, spohrer@us.ibm.com
Innovation 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)
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© 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)
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From I to T-shape and Beyond!
IBMers with more depth and breadth for a Smarter Planet
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Many disciplines
Many sectors
Many regions/cultures
(understanding & communications)
Deepinonesector
Deepinoneregion/culture
Deepinonediscipline

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accelerating regional development (IBM UPward) 5
IBM operates in 170 countries
around the globe
Acquisitions contribute significantly
to IBM’s growth ; ~120 acquisitions
in last decade
2012 Financials
Revenue - $ 104.5B
Net Income - $ 17.6B
EPS - $ 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

6
IBMIBM’s Story of Innovation:’s Story of Innovation:
Looking back at where we started..Looking back at where we started..

7
Innovation That Never StopsInnovation That Never Stops
Neonatal CareNeonatal Care12 Atom Storage12 Atom Storage
WatsonWatson 3D Systems3D Systems DNA TransistorDNA Transistor
Spoken Web

8
A Diversity of Disciplines Enables World ClassA Diversity of Disciplines Enables World Class
InnovationsInnovations
Chemistry
Computer
Science
Electrical
Engineering
Materials
Science
Mathematical
Science Physics
Service
Science
Behavioral
Science
Business
Innovation
Technology
Innovation
Social
Innovation
Demand Innovation
Science &
Engineering
Business &
Management
Social &
Cognitive
Sciences
Economics
& Markets

ResearchResearch’s Strategic Disciplines’s Strategic Disciplines
Exploratory
Systems TechnologySoftware
Industry SolutionsMathematics &
Data Sciences
Service Science

IBM Research:IBM Research: The World is Our LabThe World is Our Lab
China
WatsonAlmaden
Austin
Tokyo
Haifa
Zurich
India
Dublin
Melbourne
Brazil
IBM Research labs
Labs added since 2010
Other IBM Research presence

IBM Research – AfricaIBM 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
ComputerIntelligence
Time
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

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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

15
Automobile
Internet
Technological Acceleration
0 25 50 100 125 15075
Years
25
50
100
TelephoneElectricity
Radio
Television
VCR
PC
Cellular
%Penetration
YEARS

16
•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!
16

17 17
U.S Department of Labor
estimates that today’s learner
will have 10-14 jobs…
by the age of 38!

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 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
18

19
Five historical cycles …

20
~100 years of US job transformations
Source: US Bureau of Economic Analysis; McKinsey Global Institute Analysis

21
Most people say, “IBM makes computers”

22
Those in-the-know say, “IBM is helping to build a Smarter
Planet…”

23
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

24
City challenge: buildings and transportation
Ryan Chin:
Smart Cities

25
Streetline: Instrumented-Interconnected-Intelligent

© 2013 IBM CorporationIBM UPward (University Programs worldwide – accelerating regional development)26
Neonatal ICU: Instrumented-Interconnected-Intelligent

27
Cities: land-population-energy-carbon
Carlo Ratti:
Senseable Cities

30
Four commandments for cities of the future: Eduardo Paes
at TED2012

31
SC IOC as a Platform for Innovation

32
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
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
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/smartcamp
Exclusive Networking and
Mentoring event
North America SmartCamp lead: Eric Apse, eapse@us.ibm.com
University Programs lead: Dawn Tew, dawn2@us.ibm.com

Digital Immigrant vs Digital Native
Born: 1988
Graduated College: 2011
Born: 2012
Enters 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
weakest
link
 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
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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
Costs
IBM $M
RED $M
UNI $M
Bene-
fits
IBM >$M
RED >$M
UNI >$M

IBM University Programs 6 R’s Proof-Points
IBM 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 solve
business problems along the dimensions of
people, organization, information, and
technology
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IBM 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
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IBM 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
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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?
SKILLS
DEVELOPMENT
STUDENT
ENGAGEMENT
RESEARCH
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IBM University Programs Universities Matter #1
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Japan
China
Germany
France
United KingdomItaly
Russia SpainBrazil
Canada
India
Mexico AustraliaSouth Korea
NetherlandsTurkey
Sweden
y = 0,7489x+ 0,3534
R² = 0,719
0
1
2
3
4
5
6
7
8
9
0 1 2 3 4 5 6 7 8 9
%globalGDP
% top 500 universities
Nation’s % WW GDP and % Top 500 Universities (2009 Data)

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

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“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.”

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What is a U-BEE? A local job creator/sustainer
Innovating “whole service” in all regions worldwide
http://www.service-science.info/archives/1056
Nation
State/Province
City/Region
University
College
K-12
Cultural &
Conference
Hotels
Hospital
Medical
Research
Worker
(professional)
Family
(household)
For-profits
Non-profits
U-BEE
Job Creator/Sustainer
U-BEEs = University-Based Entrepreneurial Ecosystems

IBM University Programs On Campus IBMers
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5858
Up-Skill
Cycle
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 into
On Campus IBMer role
(help create graduates
with Smarter-Planet skills,
help create Smarter Planet
oriented new ventures;
Refresh skills
= Graduates with
Smarter 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, Director
IBM University Programs (IBM UP)
http://www.ibm.com/university
May 14, 2013
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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

62
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 professionals
depth & breadth
BREADTH
DEPTH
(analytic thinking & problem solving)
Many cultures
Many disciplines
Many systems
(understanding & communications)
Deepinonediscipline
Deepinonesystem
Deepinoneculture

Systems-Disciplines Framework: Depth & Breadth
Systems 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
city
secure
state
scale
nation
laws
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
stakeholders
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 Technology
Requires investment roadmap
Service Systems: Stakeholders & Resources
1. People
2. Technology
3. Shared Information
4. Organizations
connected by win-win value propositions
Smarter Buildings, Universities, Cities
Requires 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. Spohrer
Innovation 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)
0/19/02/7/4
2/1/1
7/6/1
1/1/0
5/17/27
1/0/2
24/24/1
2/20/24
7/10/3
5/2/2
3/3/1
0/0/0
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)”

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
University
College
K-12
Cultural &
Conference
Hotels
Hospital
Medical
Research
Worker
(professional)
Family
(household)
For-profits
Non-profits
U-BEE
Job 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%643331.4Germany
37%2611632.1Bangladesh
19%2010701.6Nigeria
45%672852.2Japan
64%6921102.4Russia
61%6614203.0Brazil
34%3916453.5Indonesia
23%762315.1U.S.
35%23176014.4India
142%29224925.7China
40yr Service
Growth
S
%
G
%
A
%
Labor
% WW
Nation
World’s Large Labor Forces
A = Agriculture, G = Goods, S = Service
2010
2010
NationMaster.com, International Labor Organization
Note: 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 systems
that 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://www.measureofamerica.org/docs/APortraitOfCA.pdf

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 University Programs: Building a Smarter Planet

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