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Services for better business – and for better world.
Young Student, Go Services 23.11.2011 jyrki.koskinen@fi.ibm.com Services for better business - and for better world © 2011 IBM Corporation The Big Trend: “The future is service1” 2009 Agriculture Goods Services Service Service11==service servicesector’, sector’, producing producingintangible intangiblethings thingsinstead instead of ofproducts. products. 2 © 2011 IBM Corporation The Big Trend: “The future is service2” Service Service22== ‘intentional ‘intentionalhuman human interactions interactions that thatresult resultininmutually mutually beneficial beneficialoutcomes’ outcomes’ Service Growth (Value-Cocreation) increase mutually beneficial interactions Coordination (Information Technology) space, time, scale integration Specialization (Outsourcing) space, time, scale distribution Population (People & Organizations) entities interacting Service or customer dominant logic, value cocreation – goes well also to service systems like farms and mills! 3 © 2011 IBM Corporation Service2 at work – powered by Service Dominant Logic © 2011 IBM Corporation ‘Service2 companies’ combining products and services for value cocreation Kone Kone ’dedicated ’dedicatedto to people peopleflow’ flow’ 5 •Customer focus •Operational excellence •Motivated and skilled people By Riitta Partanen-Jokela, Assistant Vice President, Kone Oyj in Service Science Summit 2007 Helsinki © 2011 IBM Corporation Service2: Apple - from computeres to: iPod, iPhone, iPad,.... Design Designfor foruser user experience experience &&services services 6 © 2011 IBM Corporation ‘Service2 companies’ combining products and services for value cocreation selling sellingpaint paint selling selling coating coating selling sellingtyres tyres selling selling milage milage 7 © 2011 IBM Corporation Service Design – Next generation concept for Cruising Ships - a combination of technics, design and economics http://www.aalto.fi/fi/current/news/view/2010-04-08-002/ Aalto University, Royal Caribbean Cruise Lines, Tekes, Fimecc How Howto tocreate createaa great greatcruising cruising experience experience using usingaaship shipas as aaplatform? platform? 8 © 2011 IBM Corporation Service2 Change of paradigm in ICT industry Collaboration Services to businesses Business Processes CRM/ERP/HR CRM/ ERP/ HR Industry Applications Software-as-a-Service Services to developers Web 2.0 Application Runtime Middleware Database Java Runtime Development Tooling Platform-as-a-Service Computing on Demand Servers Networking Data Center Fabric Storage Infrastructure-as-a-Service 9 Cloud Cloud--’From ’Fromlazy lazyassets assetsto to exploiting exploiting ofofbenefits’ benefits’ Source: Hagen Wenzek CHQ Strategy, 2/09 © 2011 IBM Corporation Service2: eCommerce site – implemented together with partners Simpe Simpe outside outside–– complex complex inside, inside,full fullof of technology technology Customer profile, personilized offerings Customer experience Product presentation and selection Payment Delivery SOA SOA Suppliers 10 Content providers Banks and credit companies Transportation service providers © 2011 IBM Corporation Service Design: Department store, slow track for cosy service Aalto & Iso Omena Citymarket - Mtv, 5.10.2011 ”Don´t hurry be happy” Service ServiceDesign Design ––from fromshopping shopping to tosuperior superioruser user experience. experience. Photo: HS, Oma kaupunki 11 © 2011 IBM Corporation ‘Service2’ - with population entities interacting 12 © 2011 IBM Corporation From products to services – how and why? Drivers for Change •• Products Productsare arebeing being commoditized commoditized •• Product Product differentiation differentiationisis difficult difficult •• Customers’ Customers’need need for increased for increased flexibility flexibilitydriving driving down levels down levelsofof manufacturing manufacturing assets. assets.Reduce Reduce fixed overheads. fixed overheads. •• Customers Customersare are increasingly increasingly demanding demanding solutions, solutions,not not products products 13 Product-Based Focus New ServiceBased Focus •• Product Productresearch research and development and development •• Vertically Verticallyintegrated integrated production productionand and supply chain supply chain ••Broaden Broadentotoaaone-stop-shop one-stop-shoptoto reduce reducenumber numberofof vendors vendorswith with whom customers must interact. whom customers must interact. E.g., E.g.,multi-vendor/ multi-vendor/consolidated consolidated services services •• Cost Costreductions reductions and economies and economiesofof scale scale ••Launch Launchnew newprofessional professional services to help services to helpimprove improve product usage product usage •• Services Servicesnot not designed into designed into products products ••Apply Applytechnological technologicalinnovation innovation totoautomate costly, automate costly,manual manual operations operations •• Services Servicestypically typically on an after-thought on an after-thought ••Convert Convertcustomer’s customer’sfixed fixedcosts costs totovariable costs via business variable costs via business process processoutsourcing outsourcing ••Use Usepartners partnerstotodeliver delivertotoaa new newlocation locationor oratataanew newprice price point point © 2011 IBM Corporation System A System* is a set of interacting or interdependent system components forming an integrated whole. 14 *Reference: http://en.wikipedia.org/wiki/System © 2011 IBM Corporation Systemic challenges In a small business district in Los Angeles, driving around for parking in one year generated the equivalent of 38 trips around the world, burned 47,000 gallons of gas, emitted 730 tons of carbon dioxide. In US congested roadways cost $78 billion annually in the form of 4.2 billion lost hours and 2.9 billion gallons of wasted gas. Solution? •More lanes? •More public traffic? •Less traffic? 15 © 2011 IBM Corporation Stockholm Congestion Tax Project – Case Study •25% reduction in traffic entering the cordon •15% reduction in CO2 emissions •$120 Mn / year revenue to the City of Stockholm – payback in 4 years •Public transportation capacity increased through additional revenue Source: 16 www.stockholmsforsoket.se © 2011 IBM Corporation Finnish service systems – also for export? The corner stones of Finnish national compentence: – #1 School – #2 Innovation system (HBR 2009) – First Class infrstrcture – ’Flat’ and even society – Capability to create First Class Systemic Innovations Finnish service systems for sale? – School: • Pedagocical innovations, teach the teacher • Processes and Information Systems eq Open School based on open source and cloud service (> 20 municipalities) – – – – 17 Maternity and child health clinics (Neuvola) Childen day care Library eGovernment eq Tax collection system .... © 2011 IBM Corporation New talents needed © 2011 IBM Corporation Need for Academic Curricula Change: Service Science, Management & Engineering (SSME) Science & Technology Business Models & Processes SSME People & Culture The marketplace requires innovation that combines people, technology, value and clients 19 © 2011 IBM Corporation Service Education is Interdisciplinary Science and Engineering Industrial and Systems Engineering Computer Science & Info. Systems Math and Operations Research Economics and Social Sciences Business Anthropology © 2011 IBM Corporation 20 Organizational Change & Learning Business and Management Need more T-shaped people – both deep and broad Back-up © 2011 IBM Corporation What Services Does IBM Provide? Business Consulting Services & Project-based Systems Integration Business Transformation Outsourcing Strategic Outsourcing & IT Hardware, Software & Services Application Management 22 © 2011 IBM Corporation General skills needed by a Service Professional at IBM Communications across disciplines Service design Service management Business best practices Service system modeling Leadership, collaboration, and teaming. Service strategy through understanding value co-creation Business case development and analysis Service lifecycles to ensure quality New service offerings. Service supply and demand management Organizational change management Business project management 23 Creative and critical thinking, analysis and synthesis. Knowledge of marketing and sales © 2011 IBM Corporation
