2016/03/21 10:55 Service Innovation Track, T-Summit 2016

#tsummit2016 Track on Service Innovation featuring talks by Gerhard Gudergan and @JimSpohrer

This digest was created in real-time during the meeting, based on the speaker’s presentation(s) and comments from the audience. The content should not be viewed as an official transcript of the meeting, but only as an interpretation by a single individual. Lapses, grammatical errors, and typing mistakes may not have been corrected. Questions about content should be directed to the originator. The digest has been made available for purposes of scholarship, posted by David Ing.

T-Summit 2016, Transformational Approaches to Creating T-Shaped Professionals, National Academy of Sciences Building, March 21-22, 2016

Welcome by Yassi Moghaddam (ISSIP), David Christman (Cisco Systems)

  • The Transformative Power of Service Innovation for Digital Transformation, Gerhard Gudergan, ISSIP and RWTH Aachen
  • Platforms to Engage Students on Real-World Business and Societal Challenges, Jim Spohrer, IBM
  • Panelist: Andrew Allen, University of Illinois
  • Panelist: Thomas Kehler, CrowdSmart
  • David Christman, Cisco Systems


  • In a world where data is the new oil, everything is services

The Transformative Power of Service Innovation for Digital Transformation, Gerhard Gudergan, ISSIP and RWTH Aachen

RWTH Aachen Campus:  one of the biggest T-shaped initiatives in Europe

  • High tech campus at technology university, recombine around problems in industry:  healthcare, industrial revolution
  • 2.5 square kilometers, $2 billion EUR private investment
  • Idea to be attractive enough to attract people

Center Smart Services at RWTH Aachen Campus

  • Smart infrastructure
  • What is an intelligence solution, or a smart service?

What is an intelligence solution, or a smart service?

  • Augmenting human capabilities
  • Develop methodologies:  room and space for innovation:  new production technologies and services

Now in department of digital transformation


  • Mindset?  Values, structure of individual and organizations evolving to, before getting to products and services?
  • Moving to new foundations?

Transformation as massive change in pattern in the way companies, things, change

  • Disruptive, otherwise stepwise

Companies trained to be successful in the 20th century won’t survive the next 20 years

History of innovation management:

  • 1. The individual inventory: e.g. Tesla
  • 2. Innovation laboratories and departments as corporate functions, making innovation as perfect as possible
  • 3. VC-financed ventures
  • 4. Orchestrating

Transformation of production and supply

  • New communications and collaboration enable service dominant business
  • Companies not delivering same products, repositioning as new value partners, new roles / positions as solution providers rather than part delivering
  • Service science, service dominant logic

Power by the hour

Farming:  Claas, transforming business lines

  • Products, then added services, then machines with preventive maintenance
  • Doing again and again means understanding harvesting production
  • Machines assemble data, connected via GPS for location to know amount of agricultural goods
  • Maps are in the database:  a source of a new business model
  • If know about harvest, can talk to farmer about fertilizing, e.g. not putting everywhere, but where needed
  • Moving to a purely information-based business
  • Can do this with other industries, as well

Claas moving into platform-based business models

  • With insurance companies and consulting business for the agricultural-based industry

Challenge 1:  Transforming from a traditional supplier model toward a database-based service model, need T-shaped people

  • Shift of mindset

Challenge 2:  Eco-innovation in inter-company and interdisciplinary teams

  • Collaboration skills
  • From program innovation to eco innovation in networks

Challenge 3:  Moving from existing knowledge into white spaces

  • From information you know
  • Entrepreneurship, risk-taking
  • Still have to manage core business

Challenge 4:  Speed

  • How to help traditional companies to move,
  • Not Google, Yahoo and Facebook, but the 80% of companies in the other economy

Classical sequence in service innovation

Innovation for a stable future, versus a disruptive future

  • Need practical heuristics, rather than algorithms

Framework based in literature, and work with ISSIP, on cases of innovation management

  • Tried to map out articles for patterns
  • 1. Exploration
  • 2. Evaluation
  • 3. Development
  • 4. Realization

Service Innovation Blocks:  ways to reconfigure knowledge in service innovation methods and tools

3rd layer:  Add methods along classification and navigation

Have done this, and are now refining


How to measure the results?

  • Currently conducting interviews
  • Ford, Siemens, Volkswagen, Cisco, IBM
  • Validating methodology
  • Challenge:  can’t validate after applying it

Platforms to Engage Students on Real-World Business and Societal Challenges, Jim Spohrer, IBM

In room, tapestry of man with globe, not well known

  • Picture of man with map behind him

In 20 years, if we all came back to this room, the more recent picture would like as strange

In 20 years, we’ll all have cognitive assistants that will have access to the world’s information, that can interact with natural language

  • Will want clothes with nano-supportive equipment to stand up
  • Won’t need smartphone, because will be built into clothes

How do we prepare our students for the future?  Need something new

  • Service innovation building blocks will enable innovating

Meeting with Nick talking about T-shapes was out of the first Service Science meeting

  • Need to be T-shaped to be innovators

Invitation to submit 4-page abstracts for T-shaped book

  • Smart service systems not enough?  How about wise service systems?

Universities as the startup engines of their regions, see http://service-science.info/archives/3681

  • Platforms that help create T-shaped individuals (on blog)
  • Uber is a platform for a transportation service
  • 9-sigma
  • Crowdsmart
  • Mindsumo
  • Springtheory
  • Skyld
  • Demolo

How do we get students and faculty working on innovations together?

Question:  innovation institutes at universities?

  • They tend to be local

“The World Does Not Care What You Know:  Developing T-shaped Students”, Andrew Allen, U. of Illinois Champaign-Urban

Moremarbles.com and universityconsulting.com

Thought learning in higher ed was boring, wanted to learn by doing

One customer was U. of Illinois, have been acquiring assets of company over the past 4 years

Illinois Business Consulting

4000 students, making systemic changes

When thinking of learning by doing, want to see Illinois at the top of the list

Learning-by-doing:  experience is the best teacher

  • Hard to say that out loud, when surrounded by teachers
  • e.g. leadership, how can you learn by reading it, or doing a case study
  • e.g. resolving conflict, can you do that without conflict?

Exercise:  breathing is a reflex action, we do this without thinking

  • Holding breath, CO2 builds up
  • Difference in experience when holding breath

McKinsey:  are young people prepared for the job market?

  • Institution 72% say yes
  • Youth only 44% say yes
  • Employers 42% say yes

Universities have been resisting disruption

Blockbuster to Netflix

Classroom: stadium seating to today (the same, seats with more padding)

What do schools reward?

  • Research, publications, grade, test scores

Employers are looking for something different:  NASON, GMAC

Academy is off in its own world

There is a way to synergize

Thomas Friedman:  The world does not care what you know, it’s all on Google.  The world only cares and will only pay for what you can do with what you know.

Illinois Business Consulting:  a skunkworks

  • Extracurricular
  • Largest university consulting program
  • Get interviewed, placed on team
  • Could be new undergraduate, plus MBA, plus Ph.D. chemistry
  • Don’t get paid, or credit, still turning away 5 of 6 applicants
  • Work a lot with agriculture companies, who made money on products, moving towards data and services
  • We want to know what the farmer of the future will look like, 20 years down the road
  • Team did interviews, Tableau
  • Found farm ownership not changing much, they’re not selling the farm
  • Who’s managing?  New opportunities, drones and beyond that
  • Agricultural land value has gone up, even during recession, and private equity knows that

Project in energy and utilities, smart metering

  • Interviewed utility companies

Students will present to C-level teams

Outcomes, assessment?

  • Maybe too much on assessment, should look at outcome
  • Students see leadership skills, got me a job
  • When students talk about IBC, that’s all they talk about
  • Higher starting salaries, get promoted faster

Learning model:

  • Learn
  • Do
  • Reflect
  • Become

Start at end with outcome:  what should the students get, at the end?

“Adaptive Learning in T-Shaped Organizations”, Tom Kehler, Crowdsmart

Am in a startup that helps startups startup:  CrowdSmart

  • Link startups to prospective investors
  • Integrating broad reach

Technology platform to brainstorm:  intelligent AI-based facilitator

  • Listen
  • But then what is the top idea?
  • Tradeoffs:  get behind one idea

Blending human and AI to make predictions

  • Stimulus, idea
  • Goes into an idea nursery
  • Rinse and repeat until converges

Takes qualitative information, and changes it into rankings

Have used technology in two organizations

  • Could predict tv show ratings, new product success
  • Now, predicting success of startups

It’s a Net Promoter Score

  • Would you recommend this to a friend, or a colleague?
  • Positive 9 or 10
  • Neutral 7 or 8
  • Below 6, subtract, so it’s possible to have a negative score

e.g. real estate company taking large investment into smaller investors

Apply adaptive learning in some scalable form

  • Collective intelligence:  if have a group of investors with experts, will have greater success
  • Want to listen broadly to market

Panel:  Yassi Moghaddam (ISSIP), David Christman (Cisco Systems) Gerhard Gudergan (ISSIP and RWTH Aachen) Jim Spohrer (IBM), Andrew Allen (University of Illinois), Thomas Kehler (CrowdSmart)


Have been talking about institutions.  If we’re looking at success, see regions e.g. Singapore, ecosystem.  Don’t see this within the U.S., although have Silicon Valley.  Can we make Illinois like Taiwan?  Beyond one university, to 100 universities?

  • Andrew: How to create more linkages to a larger ecosystem?
  • Opinion:  Government approach would be create a policy.
  • The reason Illinois Business Consulting was successful was starting small, and growing organically.
  • 350 students on campus of 44,000
  • Business school has 4000 students:  can we scale this?
  • Trying to create a framework to allow this to happen
  • Define end competencies, then fit in curriculum
  • Think has to happen organically, and then tie together

Creating T-shaped people, at IBM, want people who can communicate, but everyday are on call with China or India.  How are you thinking about platforms that can work on multicultural teams, across geographic boundaries?

  • Thomas: Are doing for an audience:  innovation centers
  • Also in service to IBM Global Innovation Program
  • Amazon for startups, rating and scoring platform

Setting up experiences.  Olin College, Harvey Mudd.  Experiences funded by corporations, funded through bachelor degrees?

  • Andrew:  Those are excellent
  • What we’re doing is not new
  • Anything where we link companies to projects is good
  • Now talking about integrating:  students get involved in clubs, classes, but students aren’t linking them together to see how they’re becoming

ISSIP:  Matching students with industry in mentoring.  Challenge in getting industry to participate in mentorships

  • Andrew:  mentoring is difficult, it’s hard to execute
  • Meeting every week and having a relationship is tough
  • Students who have gone through the program feel they owe something back, feel some loyalty
  • Industry wants to get involved, but it’s hard for them to figure out how to do that, in universities that are siloed places

There’s 20 corporations that understand this.  UIDP has 40 companies, then don’t know what to do.  Blame the private sector.  Fix the HR system, where it takes 3 years for people to come in and understand.

  • DJ:  At Cisco, don’t do anything with universities in that way, but if you’re an intern, do have mentoring
  • Organization, how to navigate the organization
  • Jim:  HBR:  Difficulty that students have getting an internship, compared to 20 years ago.  The value of a network outweighs the degree.  If you show you worked on real world problems, easier to get a job.
  • Have to ensure that students have a network.
  • Need a sea change
  • Gerhard:  mentoring is common in Germany
  • Tremendous effort, but highly valued by companies
  • It’s a means to preselect employees
  • Yuriko:  Japanese government encouraging industry
  • Introduction between university and companies requires a lot of people
  • Jim: NSF benchmark models on best teams, but need a transformative shift?  If can’t find a single company that will mentor, is something wrong?
  • NSF can catalyze change: e.g. undergraduate biology, over the past 10 years with AAAS, where students learning 20th century while employers need genomics — seeing shift
  • Lots of partnership
  • ICore-L for learning, get small partners and then scale
  • Having all students take advantage of ecosystem