Richard Taylor

HP Labs & HP Services

March 2008

Services Sciences& Management Engineering (SSME)

© 2007 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

2 7th March 2008 HP Confidential

Roles of HP Labs: Innovation for Services

−Contribute to HP strategy creation

−Grow HP’s business with strategically aligned technologies

−Create technologies that enable new opportunities for HP

−Invest in fundamental science in areas of interest to HP

3 7th March 2008 HP Confidential

Long Term Service Systems Thinking• Labour force migration to service economies

−ArgiculturalManufacturingServices

−How do these economies grow?

−How does innovation work in service economies?

• Service Systems−People, families, businesses, cities, nations,

healthcare, universities, call centres, data centres

• Complex, multidisciplinary and an emerging science−Tools, laws, skill sets, challenges…

4 7th March 2008 HP Confidential

Overall European Services Market Projection†

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

2006 2007 2008 2009 2010 2011

€ (Bill

ions

)

† Source: Datamonitor

ICT

Commercial (grey), Consumer (black), Electronic MfgEmployment, Energy, Financial (yellow), Global AirportHealthcare, Legal, Life, Office, Oil/Gas, Telecom, Wireless

5 7th March 2008 HP Confidential

European IT Services Market Projection†

Application Outsourcing

BPO

IT Outsourcing

Project Based Services

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2006 2007 2008 2009 2010 2011

€ (M

illio

ns)

† Source: European IT Services Spending Forecast: 2006 to 20011. Forrester May 3 rd 2006

6 7th March 2008 HP Confidential

Grand Challenges for Systems and Services Sciences

• EC –FET –ONCE –CS –FP7 Grand Challenges Workshop, Brussels, on January 31, 2006

• Scale − These systems are the most complicated and ambitious artefacts we have ever attempted to engineer

• Integration − They require hard academic disciplines as diverse as social sciences, mathematics, engineering and economics be combined in understandable and controllable manner

• Environment − These systems operate in a world of uncertain and/or shifting policy, legislation and economics

• Communications − Few of these systems can be comprehended in their totality by key stakeholders, leading to a poor understanding as to how key decisions in areas as diverse as process, technologies, expectation setting and financial policy will impact the

effectiveness of the whole system

The Challenge: To establish attainable expectations that

services systems will function to

specification, at predicted costs and over their intended lifetimes.

The Challenge: To establish attainable expectations that

services systems will function to

specification, at predicted costs and over their intended lifetimes.

7 7th March 2008 HP Confidential

Research Challenges1. Conceptual understandings of services and the

systems and processes required for their delivery2. Mathematical methods for modelling services and

the systems and processes required for their delivery

3. Scientific and socio-economic methodologies and engineering tools for modelling services and the systems and processes required for their delivery

4. Business ecosystem analysis of services5. Methodologies for observing and measuring services6. Mechanisms for delivery into services and consulting

businesses7. The integration of the disciplines that contribute to

the sciences of systems and services

8 7th March 2008 HP Confidential

Building the Portfolio in Services Research• Examples of joint HP Labs/HP Services

research−Open Analytics

−Economics of Security

−Client Outsourcing Maturity Model

−Incident Frequency Analysis

−Workforce Optimisation and Resource Management

−Security Program Office

−…

• And, Strategic Customer Innovation

9 7th March 2008 HP Confidential

What is SSME?• Agents for change

− OR, MBA-like, economics, maths… as well as CS ‘T-shaped people’, e.g. ORMS at Berkeley

• Research itself needs to be interdisciplinary− OR more realistic models of

people− CS software/systems that

adaptively change with business− Law/PE models of social

innovation− Systems Engineering better

models of robustness and fragility• Innovation in vertical industries • Lobbying

− Governments, Funding bodies (NSF, EU FP7…), Academia, industries

10 7th March 2008 HP Confidential

Officials blame suppliers for delays to IT scheme

Lack of capacity among suppliers has led to things "going wrong" with the £12.4bn NHS National Programme for IT, and it is still a risk, senior officials told MPs last week…

Officials blame suppliers for delays to IT scheme

Lack of capacity among suppliers has led to things "going wrong" with the £12.4bn NHS National Programme for IT, and it is still a risk, senior officials told MPs last week…

GM's Ralph Szygenda has the Biggest Stick in IT; General Motors CIO Ralph Szygenda and his big budget have brought the IT vendor community to its knees

… Now Szygenda is attempting to do something that no CIO has ever done: create a standard set of business processes among the most powerful, and fiercely competitive, IT vendors in the world. On Feb. 2, Szygendaannounced the awarding of $15 billion worth of IT outsourcing contracts to the likes of…

GM's Ralph Szygenda has the Biggest Stick in IT; General Motors CIO Ralph Szygenda and his big budget have brought the IT vendor community to its knees

… Now Szygenda is attempting to do something that no CIO has ever done: create a standard set of business processes among the most powerful, and fiercely competitive, IT vendors in the world. On Feb. 2, Szygendaannounced the awarding of $15 billion worth of IT outsourcing contracts to the likes of…

Flawed IT system faces axe in CSA revamp

A flawed £456m computer system could be axed as part of a redesign of the Child Support Agency, the government signalled yesterday…

Flawed IT system faces axe in CSA revamp

A flawed £456m computer system could be axed as part of a redesign of the Child Support Agency, the government signalled yesterday…

11 7th March 2008 HP Confidential

SSME/Open Analytics/UK Gov• Technology Strategy Board (TSB): we have collaborated with IBM

and BT to help the TSB develop a strategy for encouraging high value service industries develop; − HP has led this activity− Invited to prepare a draft strategy for TSB support for services innovation

within the UK. • National Audit Office: interactions with the Public Accounts

Committee (PAC) have led to work with the National Audit Office which has included the review of NAO reports and now a proposal to work collaboratively on both Procurement and 'Value for Money' studies;

• Government reviews: − Prepared and supplied reviews of a number of large government

programmes, including• 'Transformational Government' report, Tax Credits System and the proposed

ID card programme;

12 7th March 2008 HP Confidential

Example Service based on SSME Principles: Open Analytics• Quality Assurance: improves service delivery through the use of

proactive quality management - fix it before it breaks;• Regulation: combination of QA based service management as well as

auditable evidence improves performance n a heavily regulated environment

• Availability: service availability which depends on people, processes, applications and machines can be integrated to better match business requirements

• Capacity: volumetrics can be related to business function, and if necessary tuned (by date, time and flow control) to meet available resources and priorities

• Consolidation: consolidation can be driven by volumetrics as well as quality assurance (dispersal of failure bottlenecks for example)

• New Services: can be planned based on predicted service requirements and requirement tracking

• Business Alignment: because services can be related to business function and value, alignment of resources can be demonstrated, audited and tuned

13 7th March 2008 HP Confidential