#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
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
- 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
- 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
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
- 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