Introduction to Service Science, Management and Engineering (SSME)

1. Introduction toService Science, Managementand Engineering (SSME) Stephen K. Kwan, Ph.D. Professor, MIS College of Business kwan_s@cob.sjsu.edu 408-924-3514 2011

2. What is SSME?(Services Sciences, Management, and Engineering) • The application of scientific, management, and engineering disciplines to tasks that one organization beneficially performs for and with another (‘services’) • Science is a way to create knowledge • Engineering is a way to apply knowledge and create new value • Business Model is a way to apply knowledge and capture value • Management improves the process of creating and capturing value

3. Service Science is the study of Service Systems just as Computer Science is the study of Computer Systems

4. Service Operations Marketing Management Quality Supply Chain Human Factors Design Innovation Engineering Systems Computing Economics Arts Science “Service Science is just ___<name your discipline>____” General Systems Theory A Service System is Complex OR/IE MS Information Science (i-schools) MIS Economics & Law Game Theory Anthropology & Psychology Organization Theory CS/AI Multiagent Systems

5. What kinds of skills should a service scientist have? Academic disciplines evolving to combine technology, business, and social-organization 1990-2004 1900-1960 Technology 14 28 21 18 10 3 11 5 13 2 7 17 8 1 6 4 12 15 16 27 22 9 25 24 19 Business 23 20 Social- Organizational 26 Before 1900 1960-1990

6. Changing nature of work - away from farms and factories… World’s Large Labor Forces A = Agriculture, G = Goods, S = Service US shift to service jobs 2009 2009 (A) Agriculture: Value from harvesting nature Nation Labor % A % G % S % 40yr Service Growth China 25.7 49 22 29 142% India 14.4 60 17 23 35% (G) Goods: Value from making products U.S. 5.1 1 23 76 23% Indonesia 3.5 45 16 39 34% (S) Service: Value from enhancing the capabilities of people and their ability to interconnect and co-create value Brazil 3.0 20 14 66 61% Russia 2.4 10 21 69 64% Japan 2.2 5 28 67 45% Nigeria 1.6 70 10 20 19% Bangladesh 2.1 63 11 26 37% Germany 1.4 3 33 64 42% Employment Change CIA Handbook, International Labor Organization Note: Pakistan, Vietnam, and Mexico now larger LF than Germany Numeric change in wage-salary employment by industry sector, projected 2004-14 (Thousands) Professional and business service4566 Healthcare and social assistance4303 The largest labor force migration in human history is underway, driven by global communications, business and technology growth, urbanization and regional variations in labor and infrastructure costs and capabilities. cf. Figure 1.2 in text

7. Service Worlds: Economics and Social ScienceInformation services is where recent growth is Estimated world (pre-1800) and then U.S. Labor Percentages by Sector The Origin of Wealth by Eric D. Beinhocker 2M years as hunting clans/bands 10K years as farm families 200 years as factory workers 60 years (so far) as knowledge workers in organizations and now digital networks The Pursuit of Organizational Intelligence, By James G. March Estimations based on Porat, M. (1977) Info Economy: Definitions and Measurement

9. http://www-03.ibm.com/press/us/en/attachment/25091.wss?fileId=ATTACH_FILE1&fileName=Podcast%20interview%20with%20SFSU.mp3http://www-03.ibm.com/press/us/en/attachment/25091.wss?fileId=ATTACH_FILE1&fileName=Podcast%20interview%20with%20SFSU.mp3

10. http://www.usnews.com/usnews/edu/grad/articles/brief/gbeng_brief_2.phphttp://www.usnews.com/usnews/edu/grad/articles/brief/gbeng_brief_2.php

12. Barriers for Trade in Services? re: Page 7 in text

13. The Law “America Competes Act” Public Law 110-69 110th Congress “To invest in innovation through research and development, and to improve the competitiveness of the United States.” SEC. 1005. STUDY OF SERVICE SCIENCE. (a) Sense of Congress.--It is the sense of Congress that, in order to strengthen the competitiveness of United States enterprises and institutions and to prepare the people of the United States for high-wage, high-skill employment, the Federal Government should better understand and respond strategically to the emerging management and learning discipline known as service science. (b) Study. No later than 1 year after the date of the enactment of this of Sciences, conduct a study and report to Congress on how the Federal Government should support, through research, education, and training, the emerging management and learning discipline known as service science. (c) Outside Resources.--In conducting the study under subsection (b), the National Academy of Sciences shall consult with leaders from 2- and 4-year institutions of higher education, as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)), leaders from corporations, and other relevant parties. (d) Service Science Defined.--In this section, the term “service science” means curricula, training, and research programs [[Page 121 STAT. 578]]that are designed to teach individuals to apply scientific, engineering, and management disciplines that integrate elements of computer science, operations research, industrial engineering, business Strategy, management sciences, and social and legal sciences, in order to encourage innovation in how organizations create value for customers and shareholders that could not be achieved through such disciplines working in isolation. http://thomas.loc.gov/cgi-bin/bdquery/z?d110:HR02272:@@@T

15. http://www.ifm.eng.cam.ac.uk/ssme

16. Academia Service Innovation Government Enterprises

17. Over 200 Universities world-wide are engaged

18. http://www.sjsu.edu/ssme/

19. Industry says: “We need to hire more T people!” Complex Communications Across Fields Across industries Across cultures Across functions Across disciplines = More experienced More adaptive More collaborative Develop New Knowledge with SSME Research Broaden With SSME Educational program In-depth knowledge of a specific discipline Based on slides by Jean Paul Jacob of IBM Academia says: “We need to hire more T faculty!”

20. Case Study

21. Current Goals: • Develop a Service Systems Design Lab to support the • SSME Curriculum and Faculty Research – • with Physical, Simulated , & Virtual environments • Collaborate with NSF, industry and university partners in • implementing the concept • Create a Consortium of Universities who are interested in • implementing a Service Systems Design Lab Network • Create and share a repository of Curriculum and Lab • materials • Disseminate the experience to other universities