Service Research in Germany and the Karlsruhe Service Research Institute (KSRI) Prof. Dr. Gerhard Satzger Karlsruhe Service Research Institute (KSRI) Opening Centre of Service Research Manchester, April 22, 2009

2 Agenda 1 2 IT-based services KSRI - a PPP prototype? 3 4 Observations on SSME Service initiatives in Germany

IT-based services will change global competitive structures – and e-skills will decide how … 3 Internet Evolution  ICT drives de-/recomposition of value networks  ICT drives location-independency of services Historical Development of GDP contribution of industrial sectors in Germany Agriculture Manufacturing Service 0% 20% 40% 60% 80% 100%

With growing services shares, individual companies need to prepare… 4 Total: $ 71,940Total: $ 88,396 IBM WW Revenue % Hardware 5% Financing 28% Services 18% Software 43% Hardware 5% Financing 38% Services 14% Software Source: IBM Annual Reports; IBM Earnings release Jan 21, 2009 Total: $ 103,630 IBM WW Revenue % Hardware 2% Financing 57% Service 21% Software Objectives for university PPP: Shape new SSME research field Strengthen IBM’s positioning as the “innovator’s innovator” Shape education profile of future work force Increase IBM’s visibility as an attractive employer Drive innovations for IBM’s service business Provide unique development opportunities for IBMers

The KSRI is one IBM answer to the challenge … 5 Karlsruhe Service Research Institute Institute infrastructure Joint research projects Information & Market Engineering Prof. Dr. Christof Weinhardt eOrganisation Prof. Dr. Stefan Tai Service Innovation & Management Prof Dr. Gerhard Satzger Knowledge Management Prof. Dr. Rudi Studer Technician Researcher Professor Researcher Service Innovation & Management ½ Secretary Researcher Professor eOrganisation Information & Market Engineering Management Technician Professor ½ Secretary Secretary Researcher Professor Researcher ½ Secretary Professor ½ Secretary Knowledge Management Researcher ½ Secretary

Progress #1: Public/private interest to further build up the institute 6KSRI EU e-skills Conference, Oct 2008 Karlsruhe Service Research Institute Institute infrastructure Joint research projects Technician Management Technician Secretary Researcher Professor Researcher ½ Secretary Knowledge Management Information & Market Engineering Professor ½ Secretary Professor ½ Secretary Researcher Professor Researcher ½ Secretary Product Services * Service Design Professor ½ Secretary Professor ½ Secretary Researcher Professor Collaborative Innovation Processes ½ Secretary Professor ½ Secretary Researcher Professor eOrganisation ½ Secretary Researcher ½ Secretary Professor Service Innovation & Management Professor Researcher ½ Secretary “Internet of Services“ Company x Company y

Progress #2: A curriculum for an e-skills / service oriented profile 7KSRI EU e-skills Conference, Oct 2008 Economics Service Engineering (10 CP) Service Management (10 CP) Market Engineering Internet Business Models CRM Recommendation Systems Social Network Analysis in CRM Service Innovation eServices Project Workshop / Seminar OR in Service Management Management of Business Networks Business and IT Service Management Computer Science Service Technologies (17 CPs) Service-oriented Computing 1 Enterprise Computing Knowledge Management Component-based SW development Ubiquitous IT Service-oriented Computing 2 Semantic Web Technologies 2 Data Base Systems Service Network Coordination Project Workshop / Seminar New KSRI Lectures

Progress #3: Interdisciplinary research profile on IT-based services 8 Service Technologies: Service Computing Service Technologies: Knowledge & Semantics Service Management Service Engineering Service Architecture & Computing Service Context & Semantics Service Innovation & Management Service Markets & Economics Social Web Business Transfor- mation Service Value Networks Service Infrastructure Coordination & Collaboration Service Research Teaching Modules Research Perspectives

Progress #4: Supporting government initiatives 9 Source: Expert Group “Service Science”, Nov 28, 2008; Strategic Area „Services“ German High-Tech-Strategy … … Sponsored professorships Brand „services made in..“ Service portal Research grant strategy Services sector measmt. Lifelong learning Services in prof. education Measuring services „Service Science“ Simulation of services

Working towards clarifying viability, contents and implementation of a „Service Science“ 10 Source: Expert Group “Service Science”, Nov 28, 2008; Contents Implementation Perspective changeScience terminology Vision Status quo Roadmap Scenarios 10 service taskforces on services within German High- Tech-Strategy „Service Science“ taskforce: around 20 experts within Germany

Some observations… Underestimation of the amount of change based on IT-based services Significant interest in PPP concept Increasing global spread, but differentiated international focus on SSME Missing job and education profiles Separate SSME programs ? 11

Contact Thank you for your attention! Photo Prof. Dr. Gerhard Satzger Universität Karlsruhe (TH) Fakultät für Wirtschaftswissenschaften Karlsruhe Service Research Institute (KSRI) Research Group Service Innovation & Management Englerstraße 11, Karlsruhe Telefon: +49 (0) Fax: +49 (0)

Market expectations are enormous… 13 „ In 2012, more than a third of application spending will be based on SaaS rather than SW product licences“ (Gartner, 2/2008). Source: finance.yahoo.com, 22/01/09

Vision: New ICT technologies enable the co-creation of value 14 Technology as Driver 100% ProviderCust. Service Research (narrow sense) Service Science (SSME) Service Research (wide sense) „Co-Create Value“ Individual Disciplines Emphasis on value co- creation Development of interdisciplinary concepts, methods and tools Integrated Disciplines

More focus is urgently needed to get ready for global competition.… IBM Academic Initiative: SSME (Service Science, Management and Engineering) 15 EU e-skills Initiative BMBF High Tech Initiative €15B investment up to 2009 „Forschungsunion“ Wirtschaft-Wissenschaft European Services Directive Issued 2006, to be implemented by 2009