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1. Introduction to Service Science Management and Engineering SSME
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   Module 1: Welcome and Overview of Service Science, Management, and Engineering (SSME)

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   Table of Contents

   Module 1: Welcome and Overview of Service Science, Management, and Engineering (SSME) 1

   Table of Contents 1

   Acknowledgements 1

   Welcome 1

   Overview of Module Format 2

   Objectives 2

   Topic-specific content 2

   Summary 2

   Activities 2

   References and Additional Readings 2

   Overview Presentation Notes 3

   Slide 1: Introduction to SSME 3

   Slide 2: What is SSME? 3

   Slide 3: Why is SSME Important? 4

   Slide 4: Service Innovation 4

   Slide 5: Modules 5

   Slide 6: SSME Timeline – some history 6

   References 8

   Related web site links 8

   Services Engineering topics 9

   Services Design topics 9

   Industrialization of Services topics 9

   Acknowledgements

   Many people from within and outside of IBM have (and continue to) contributed to the development of the SSME modules and academic initiative. The following list is a subset of key contributors to this effort.

   Jim Spohrer

   Paul Maglio

   Wendy Murphy

   Cheryl Kieliszewski

   Michael Maximilien

   Jakita Owensby

   Dean Spitzer

   Melissa Cefkin

   Matthew Berry

   Lisa Kreeger

   Toby Lehman

   Doug McDavid

   Sara Moulton-Reger

   David Singer

   Makoto Kano

   James Rhodes

   Sean Bell
   Welcome

   This group of informational modules is about Service Science, Management and Engineering (SSME) – a concept for a multidisciplinary educational foundation for undergraduates and graduates. Many variations of services education exist today within the domains of management, operations research, and economics to name a few. Most case studies and existing work has focused on business-to-consumer services. However, this set of modules is designed to not only understand business-to-consumer services, but also understand the complexities of business-to-business services. With respect to this focus on business-to-business services, a need is seen to explore and define the notion of truly multidisciplinary approach to educational offerings in the area of services. Of particular interest is the notion of the impact of technology, people, and process on how services are defined and delivered.

   The modules are intended for use by instructors where instructors can choose which module(s) might be used to enhance current courses and consider curriculum updates as time goes by. In this first iteration of the SSME modules, topics are provided as PowerPoint ™ slides and Word ™ documents with no restrictions. Instructors may download and customize these materials as needed. (If your IT platform does not support these applications, please download the Adobe .pdf ™ version.)

   The intention is to make these modules an open course (like open source code) – you are invited and welcomed to provide IBM with additional viewpoints and deeper thoughts on any area of interest. IBM is encouraging more research into service science, and as such challenges you to provide constructive criticism with respect to content, delivery, and use of the SSME modules.

   Enjoy!
   Overview of Module Format

   In general, each module is designed to discuss a topic that is thought to be relevant to SSME. Each module is formatted to contain objectives, topic-specific content, summary, activities, references, and additional readings. There may, however, be slight deviations from this formulation due to the iterative nature of review, feedback, and modification that in encouraged to fully encompass relevant materials. To help you get acquainted with how the modules are designed, each element is described in the following.
   Objectives

   The objectives have been written to orient the instructor and student with respect to the module topic at hand—generally stating what one should have a cursory understanding of after reading the references, performing some or all of the activities, and reviewing the topic-specific content.
   Topic-specific content

   The topic-specific content either describes and/or illustrates what is thought to be relevant and important to the current subject at the time the modules were created. It is not the intention for the modules to be fully inclusive of all material related to the topic-specific content; but, instead to provide archetypal elements that may lead to additional discussion and/or investigation on the parts of the instructor and student.
   Summary

   The summary is provided to recap, connect, and provide closure to the ideas presented in the module. As with the topic-specific content, the summary is not meant to be all inclusive but instead a launching point for more in-depth study and discussion.
   Activities

   The activities provided in the modules are suggested as aids for further investigation, experimentation, and comprehension of the concepts presented in the modules.
   References and Additional Readings

   The references contained in each module are listed with respect to providing direct context for the topic. It is suggested that both instructors and students familiar themselves with the reference materials. The additional readings are thought to provide considerable, yet supplemental, context for the topic.
   Overview Presentation Notes

   The presentation paired with this overview is considered to be supplemental and provide general context around the notion of Service Science, Management, and Engineering. Materials can be used as a stand-alone introductory topic or supplemental to individual topics.
   Slide 1: Introduction to SSME

   Introduction to Service Science, Management and Engineering (SSME)

   This module describes the group of SSME modules and how they fit together. Modules can be read in any order. Parts of them can be used to supplement existing courses. There is a great deal of related materials among the modules. You may find that you need to reference more than one at a time.
   Slide 2: What is SSME?

   What is SSME?

   SSME has the goal of making productivity, quality, performance, compliance, growth, and learning improvements more predictable in work-sharing and risk-sharing (co-production) relationships.

   SSME is the application of scientific, management, and engineering disciplines to tasks that one organization beneficially performs for and with another (i.e., services)

   SSME is the study of service systems—aimed at improving service systems

   Example: e-Sourcing Capability Models (eSCM) at Carnegie Mellon University can be found at itsqc.cmu.edu (Earlier press announcement are at http://www.cmu.edu/PR/releases03/030520_ibmglobal.html and http://www.cmu.edu/cmnews/020107/020107_it.html html )

   The call for a service science can explored in readings such as:

   J.R. Bryson, P.W. Daniels, and B. Warf’s (2004) book “Service Worlds: People, Organizations, Technologies”

   H. Chesbrough in the Harvard Business Review (2005) article entitled, “The HBR List: Breakthrough Ideas for 2005”

   J.M. Tien and D. Berg’s (2003) article “A Case for Service Systems Engineering”

   R.K. Shelp’s (1981) book “Beyond Industrialization: Ascendency of the Global Service Economy”

   Books on SSME are beginning to be published. Recent examples include:

   Hefley, B. and Murphy, W. (Editors). (2008). Service Science, Management, and Engineering: Education for the 21st Century. (ISBN-10: 0387765778, ISBN-13: 978-0387765778). New York: Springer Science+Business Media, LLC.

   Stauss, B., Engelmann, K. Kremer, A., & Luhn, A. (Editors). (2007). Services Science: Fundamentals, Challenges and Future Developments. (ISBN-10: 3540744878, ISBN-13: 978-3540744870). Berlin: Springer.

   Spath, D. & Fähnrich, K.-P. (Editors). (2006) Advances in Services Innovations. (ISBN-10: 3540298584, ISBN-13: 978-3540298588). Berlin: Springer.

   Examples of SSME champions and leaders can be found on the IBM (2006) Research website at http://www.research.ibm.com/ssme/influencers.shtml
   Slide 3: Why is SSME Important?

   Why is SSME important?

   The world is becoming flat and networked, dependent on information and information technology

   Science needs to provide tools and methods to study services and develop solutions to problems that span multiple disciplines

   Graduates may be solution designers, consultants, engineers, scientists, and managers who will grow into becoming entrepreneurs, executives, researchers, and practitioners

   There are several points of view about the importance of creating SSME.

   Services are the largest part of the U.S. economy and fastest growing sectors in developing countries (in fact, manufacturing includes services too)

   GDP growth depends on companies’ ability to earn revenue and make profits

   Revenue and profit increases depend on productivity and innovations

   Innovation and productivity depend on multidisciplinary skills

   Multidisciplinary skills depend on getting students and employees trained in service science

   (The notion of flat refers to writings by T.L. Friedman (2005) in “The World is Flat: A Brief History of the Twenty-first Century”)

   U.S. academic institutions are failing to attract computer science students

   Global students are either learning in the U.S. and taking their skills back home or are learning in their own countries

   IBM’s Motivation

   Need better trained people: Services professionals & researchers

   Need more knowledge about sustainable service innovation techniques: Innovation is the key to value creation and capture; hence the key to sustainable business advantage

   Need more systematic methods for studying and creating knowledge about service systems: Investment in science & research pays in new knowledge. Example: Computer Science (co-evolution of occupation, discipline, techniques, science)

   Slide 4: Service Innovation

   Service innovation is inherently multidisciplinary

   Knowledge sources driving service innovations…

   Science & Engineering—technical innovation

   Social Sciences—social-organizational innovation

   Business Administration and Management—business innovation

   Global Economy & Markets—demand innovation

   SSME = Service Science, Management, and Engineering

   Service science is multidisciplinary.

   Socio-technical systems theory – A framework for describing and explaining the relationship between technical and non-technical elements in a work organization, based upon systems theory and the observation that technology and human are interdependent in achieving organizational performance.

   Why SSME?

   The world needs more service innovation & systematic approaches to service innovation must be interdisciplinary.

   Science & Engineering = Study phenomena and create new knowledge

   Social Sciences = Study phenomena and create new knowledge

   Global Economy & Markets = Emergence of new knowledge in practice!

   Business Administration and Management = Study phenomena and create new knowledge
   Slide 5: Modules

   Modules

   Services (What are services?)

   Systems (Services depend on socio-technological systems)

   Management, Marketing, and Operations (What’s the difference for services?)

   Productivity and Innovation (Do services resist productivity gains?)

   Methods (Delivery depend on methods)

   Developing Supply Chains to Support Service Operations

   Challenges, Frameworks, and Call for Participation

   Services

   This module discusses the ideas of

   The emerging importance of services in economies and movement towards a global service economy

   Customer as co-producer of value

   Locus of innovation (e.g., clients, business models, technology, people)

   How the emerging field of SSME brings together the disciplines such as computer science, operations research, industrial engineering, business strategy, management sciences, social and cognitive sciences)

   Systems

   This module discusses the ideas of

   General types of systems (e.g., natural, manufactured, socio-technological)

   Services being socio-technological systems

   Co-production as the service system differentiator

   Value in a service system

   Management, Marketing, and Operations

   This module discusses the ideas of

   Management, market, and operations considerations specific to services

   Strategic planning, policies to empower, and measurements

   Differentiation is required and consider of client as co-producer

   The perception of value

   Productivity and Innovation

   This module discusses the ideas of

   Measurement challenges

   Resistance to productivity gains

   Engineering and interpretive models

   People

   Methods

   This module includes

   Considerations for the use of methods in the services lifecycle from engagement through solutions design and delivery.

   Introduction to the use of methods in services

   Discussion of the spectrum of pure invention to automation

   Why methods can be valuable

   How methods are applied

   Possible limitations

   Developing Supply Chains to Support Service Operations

   Class discussion about how supply chain principles and processes are at work in service operations.

   Challenges, Frameworks, and Call to Action

   This module reviews the motivations for creating SSME and begins to explore what could be considered interesting problems for future service research. It includes some suggestions for institutions and policy makers.
   Slide 6: SSME Timeline – some history

   Dec. 2002: Almaden Service Research established – the first IBM Research group completely dedicated to understanding service innovations from a sociotechnical systems perspective, including enterprise transformation and industry evolution.

   March 2003: IBM-Berkeley Day: Technology At Your Service!

   September 2003: Coevolution of Business-Technology Innovation Symposium.

   April 2004: Almaden Institute: Work in the Era of the Global, Extensible Enterprise.

   May 2004: IBM Research and BCS hosted faculty from prestigious U.S. universities. Professors from various academic disciplines joined IBM’s researchers and consultants to discuss the development and introduction of services science as a new academic discipline at the university level. As a result of the summit, the participants issued a report on services science. You can read the report and see the participants at: http://www.research.ibm.com/facultysummit/

   June 2004: Paul Horn briefed analysts on “Services as a Science” and it was highlighted in a Merrill Lynch report.

   June 2004: IBM participated in the Global Strategic Service Management Symposium held at Carnegie Mellon to explore the curriculum needs for graduate and executive education programs in service management.

   September 2004: “A failing grade for the innovation academy,” written by U.C. Berkeley professor Hank Chesbrough appears in the Financial Times.

   November 2004: Service Innovations for the 21st Century Workshop. IBM, the Management of Accelerated Technology Innovation (MATI) industry consortium, and Northwestern University’s Center for Technology & Innovation Management (CTIM) co-hosted this meeting with 140 academics, business leaders, government agencies, consultants and researchers. During the two day workshop, the group discussed services innovation from four perspectives: manufacturing companies, traditional services companies, academics and government agencies. In order to accurately understand services innovation and the academic curriculum needed to drive continued innovation, all four of these areas need to be thoroughly explored.

   November 2004: IBM’s GIO focuses on service sector innovations: government, healthcare, work-life balance.

   December 2004: IBM expands academic initiatives related to service innovations, including sponsoring SSME-related research projects at the Tannenbaum Institute of Enterprise Transformation at Georgia Tech.

   2004: IBM interacts with over 35 U.S. universities on the topic of SSME, ranging from joint workshop discussions to developing potential SSME curricula.

   January 2005: Business Week Online publishes an article by Paul Horn: “The New Discipline of Services Science.” Click here to read the article.

   January 2005: Bob Sutton and Steve Barley, co-directors (and professors) of the Center for Work, Technology and Organization at Stanford, granted IBM faculty awards for services science related research.

   January 2005: IBM grants five faculty awards to encourage and support SSME and innovation at U.C. Berkeley, under the umbrella of CITRIS (Center for Information Technology Research in the Interest of Society) and MOT (Management of Technology) programs at U.C. Berkeley.

   February 2005: Harvard Business Review touts SSME as one of the “Breakthrough Ideas for 2005.”

   February 2005: IBM researcher Paul Maglio presents SSME to a group of NYU (Stern) business school students.

   February 2005: Bay Area Services Services (BASS) kickoff at Almaden, a speaker series designed to foster relationships between researchers and consultants. Under the general theme “Energizing Services Innovations and Collaborations.” Click here for more information.

   February 2005: IBM’s Jim Spohrer presents the concept of SSME to a group of University of Virginia (Darden) business school students.

   March 2005: Bill Rouse of Georgia Tech’s Tennenbaum Institute of Enterprise Transformation speaks at IBM’s Almaden Research Center.

   March 2005: Uday Karmarkar of UCLA’s Anderson School of Management speaks at IBM’s Almaden Research Center.

   March 2005: IBM researchers Sara Moulton Reger and Paul Maglio attend the Services Leadership Institute at Arizona State University.

   May 2005: IBM will participate in an SSME workshop with Oxford University.

   June 2005: Maglio or Spohrer at Bentley DSI mini-conference and roundtable at ISSS (International Society for the Systems Sciences) in Cancun.

   Summer 2005: NCSU proposes new concentration; meetings with Stanford, UCLA, Hitachi, John Deere, visit by Dr. N. Viswanadham of the Indian School of Business, UC Berkeley, others.

   August 2005: Carnegie Mellon launches the first graduate-level IT service management program with a six course concentration in its Masters of Information Systems Management (MISM) program.

   September 2005: CSAB (Computing Sciences Accreditation Board) panel

   Fall 2005: first service science PhD fellow candidate starts. Almaden represented at CASCON in Toronto.

   November 2005: ASU symposium; Spohrer speaking at UC San Diego.

   January 2006: Maglio speaks at Las Vegas IBM’s Software University.

   January 2006: NESSI begins study on service in Brussels. IBM’s Feldman speaks at ONCE-CS Workshop on ‘Science of Services’. Oracle visits ASR.

   February 2006: Rohit Verma hosts workshop on service in Park City Utah. Magli visit Italy

   Spring 2006: first service joint project for IBM Systems and Technology group and Georgia Tech’s Tennenbaum Institute. Spohrer and Maglio speak at conferences or with government representatives in Germany, Finland, Japan, Spain, others. Fujitsu visits ASR.

   March 2006: ASR launches free introductory course materials.

   March 2006: Services Leadership Institute at ASU.

   April 2006: Workshop on Education for Service Innovation at National Science Foundation. http://www.almaden.ibm.com/asr/SSME/esi/index.shtml

   April 2006: Kazuyoshi Hidaka’s (IBM TRL) article on SSME in “Science and Technology Trends – Quarterly Review”

   May 2006, Spain, workshop, Bentley’s Mark Davis.

   June 2006: Panel at 8th IEEE Conference on E-Commerce Technology (CEC’ 06) San Francisco, California; http://linux.ece.uci.edu/cec06/

   June 2006: Brenda Dietrich (IBM Watson) and Terry Harrison’s (Penn State) article in ORMS Today

   July 2006: Spohrer and Maglio co-chairs with University of Maryland’s Roland Rust on 15th annual “Frontiers in Service” conference.

   July 2006: CACM special issue

   October 2006: Spohrer in Maine at POPTECH Conference. CASCON 2006. Others.

   October 2006: IBM’s representatives attend Emergence Conference at the CMU school of design.

   October 2006: Conference: Education for the 21st Century hosted by ASR at Palisades NY. http://www.almaden.ibm.com/asr/summit/index.shtmcl

   November 2006: keynote at “Global Conference on Emergent Business Phenomena in Digital Economy” organized by Tampere University of Technology, Institute of Business Information Management and eBRC,

   Fall 2006: IBM’s Feldman speaks in India, Australia, China and Israel.

   Fall 2006: Spohrer and Maglio Overview of SSME published in POMS

   Fall 2006: NCSU’s degree available. * lists of schools with offerings on SSME topics can be found elsewhere on this site: http://www.ibm.com/university/skills/ssme/index.html

   WIKIPEDIA entry published about SSME.

   Throughout 2006: IBM’s University Relations hosts academic days around the world SSME theme.

   MIT lecture series: http://www-304.ibm.com/jct09002c/university/scholars/skills/ssme/realworld.html

   Berkeley lecture series http://rosetta.sims.berkeley.edu:8085/sylvia/f06/view/print/290-16.complete

   References

   Bryson, J.R., Daniels, P.W., & Warf, B. (2004). Service worlds: People, organizations, technologies. New York: Routledge.

   Friedman, T. L. (2005). The world is flat: A brief history of the twenty-first century. New York: Farrar, Straus, & Giroux.

   Harvard Business Review. (2005, February). The HBR list: Breakthrough ideas for 2005. Harvard Business Review (Reprint R0502A), 1-27.

   International Business Machines Corporation. (2006). Services Science, Management, and Engineering: SSME Leaders. Retrieved March 2006, from http://www.research.ibm.com/ssme/influencers.shtml

   Tien, J.M., & Berg, D. (2003). A case for service systems engineering. Journal of Systems Science and Systems Engineering, 12, 1.

   Shelp, R.K. (1981). Beyond industrialization: Ascendancy of the global service economy. New York: Praeger.

   Related web site links

   IBM Institute for Business Value

   http://www-935.ibm.com/services/us/gbs/bus/html/bcs_whatwethink.html?re=bcs_home

   Hiding in plain sight – Service Innovation, a new priority for chief executives

   http://www-935.ibm.com/services/us/index.wss/ibvstudy/gbs/a1026173?cntxt=a1000401

   Services Engineering topics

   Service Engineering a Technion course

   http://iew3.technion.ac.il/serveng/

   Service Oriented Architecture IBM developerworks

   http://www-306.ibm.com/software/solutions/soa/gov/

   Aligning Business and IT with the SOA at Berkeley SSME Lecture series

   http://www.ischool.berkeley.edu/~glushko/SSME-Lectures-Fall2006/Schoenrock-20061019.pdf

   SOA realization: Service design principles
   http://www-128.ibm.com/developerworks/webservices/library/ws-soa-design/

   Patterns for ebusiness from IBM developerworks

   http://www-128.ibm.com/developerworks/patterns/
   Services Design topics

   Glusko on Service Design from Berkeley Lecture Series

   http://www.ischool.berkeley.edu/~glushko/SSME-Lectures-Fall2006/SSME-20060914.pdf

   Service Design Organization wiki

   http://www.servicedesign.org/index.php/Main_Page

   IDEO on service design

   http://www.ideo.com/about/offerings/info.asp?x=3

   New Service Design Harvard Business Review article

   http://harvardbusinessonline.hbsp.harvard.edu/b02/en/common/item_detail.jhtml?id=605053

   Industrialization of Services topics

   IBV: Unlocking the value of account opening with component business modeling

   http://www-935.ibm.com/services/us/index.wss/ibvstudy/imc/a1002832?cntxt=a1000043

   IBV: Component business modeling: Financial services firms prepare for an on demand world

   http://www-935.ibm.com/services/us/index.wss/ibvstudy/imc/a1002337?cntxt=a1000043

   Creating Customer Value Through Industrialized Intimacy; By Peter Kolesar, Garrett van Rysin and Wayne Cutler

   http://www.strategy-business.com/press/16635507/19127

   © Copyright IBM Corporation 2006, 2007. All rights reserved.

   Update March 2008 (wm)

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