Crowdsourced Innovation & Problem Solving

Proprietary and Confidential
Crowd-Sourced
Innovation &
Problem Solving
“Collective Intelligence”
at Enterprise Scale
Howard Smith
Director, Innovation

2May 24, 2016Proprietary and Confidential
Researched
enterprise
innovation 2005,
leading to
recognition of the
importance of
employee
engagement
challenges
Led the
selection and
implementation
of Innovation
Central in 2006
Pilot ideation
events in 2007
generated £35M
for the CSC UK
bottom line
Idea
Management
became a global
CSC program in
2008 –
extended to all
business units
via a centrally
funded service
£500M total
audited value
(CFO
underwritten)
from CSC
ideation events
2007 to 2012
Focus for today
• Howard Smith, Director of CSC Collective Intelligence 2007 to 2012
2005

In 2005 we were nowhere

Source: McKinsey & Company, “The rise of the networked enterprise,
Web 2.0 finds its payday.” Survey of 4,394 executives. December 2010
In 2010 McKinsey was asking whether there is business value
in collaboration?

Crowdsourcing is now everywhere … but can it work in the
enterprise?
528,345 designers
25 to 100+ ideas per
project
www.designcrowd.com www.kickstarter.com www.kaggle.com
11 million people
Pledged $2.4 billion
Funding 106,082 projects
536,000 registered users
3500 submissions/day
250,000+ data scientists
Stats as of May 2016

Many organizations have this problem:
Business change projects ... Walk of the Living Dead!
MURKY MIDDLE
THROW
IT OVER
THE
WALL
PROJECTS: THE
WALK OF THE LIVING
DEAD
VALLEY
OF
DEATH
EXECUTIVE MOODSWINGS
BLAME
GAME
FUZZY
FRONT -END
DECISIONS AT THE
TWISTED GATE
ONE -MAN -BAND PORTFOLIO MANAGER
CORPORATE
AMNESIA

Is this an answer?

CSC used a time-boxed ideation ‘event’ approach
Identify
the
problem
& owner
Detail the
challenge
&
audience
Launch
Capture
ideas
Build out
ideas
Evaluate
and
review
Conclusions
and
decisions
?
?

Market needs
Existing capabilities
Overcome blockers
Gather ideas
Assess viability
Convert solutions into offerings
Prioritize investment
Identify synergies
Create new solutions
Improve solution
Improve appeal
Remove blockers
Increase differentiation
Develop new features
Improve ROI
Resolve problems
Assess current viability
Leverage partners
Competitive assessment
Track relevant market change
Map core competencies
Requirements & portfolio
Opportunity assessment
Solution options
Portfolio gap analysis
Identify internal & external experts
Accelerate take-up
Identify the best lead customers
Accelerate knowledge of the solution
Excite the market
Accelerate sales
Target new markets
Partner for success
Define what’s next
Agree how to get
there
New Value
Drive adoption
Improve IncrementallyExplore market
Leap to Next Generation
Our map for focused collaboration at CSC circa 2012

Our success with ideation events
Roughly 60 virtual challenges conducted over seven years
Some Notable Wins (Small and Large) since 2006
Event Date Financial Results Challenge Sponsor
R&D Tax Rebates 2006 $48M savings in first event EMEA Tax Manager
DSO Reduction July 2008 $528M improvement in
cash flow
CFO of Major Business Unit
Client Account 2006 $1.6M collected in unbilled
client work, one off
Client Account General Manager
CSC Greenway June 2008 $780K savings and
initiated CSC Greenway
program
CSC Sustainability
Program Office
CSC India New
Business
June 2010 $2.2M new revenue New Services Director
Corporate Growth
Event
October 2010 Contributed to $19.3B
sales performance
President, Sales & Marketing

We found that our challenges came in all shapes and sizes
• Not knowing what the problem is or where it
resides
• Not knowing which are the most important
problems to focus on
• Facing a lack of consensus about the need
to solve a problem
• Knowing what the problem is but not
knowing what the best solution is
• Knowing what the solution is, but not
knowing how best to implement it
• Choosing between multiple solution options
• Needing more detailed knowledge to clarify
a fuzzy problem or solution concept
• Removing barriers – hard or soft - to
implementation of a solution
• Having clear goals and objectives – but
wanting to optimise the next step
• Difficulty communicating through layers of
management
• Wicked problems - problems tied up in parts
of the organization outside of anyone’s
direct control
Inertia
Poor prioritization
Lack of alignment
Too many options Incomplete information
Lack of employee engagement Too complex organization
Communications

CASE STUDY
CSC SOLVED A COMPLEX CASH FLOW PROBLEM VIA STRUCTURED COLLABORATION
Challenge:
Day Sales
Outstanding
(DSO)
reduction
Duration 8
weeks
Review
team: 27
experts
The Ideation Event
resulted in reduction
of DSO by 4-8 days
$64M-128M /
annum
Audience: 2300 cross-functional
Active participants: 317
Ideas: 182
Reviews: 334
Votes: 1789

Our “boring” Cash Flow ideation portal, as it was in 2008
• Idea submission
• Collaborative idea building/voting
• Private and public idea evaluation
• Private idea portfolio building

WHAT MADE THE CASH FLOW COLLABORATION WORK?
High
Priority
Problem
Defined
Owner
More than a
Suggestion Box
(Structured
Process)
Ideation
Process
Design
Evaluation
Using
Scorecards Expert
Recommendations
Process
Decisions
Implemented
Decisions
Explained
Focused
Organization
On The Issue
The Right
Starting
Point

We needed an idea and challenge management solution able
to support many different kinds of processes and to enable us
to efficiently conduct many challenges in parallel across
different parts of our organization
• One ideation portal, many uses
– Configuration options
– Workflow rules
– Forms design
– Collaboration rules
– Challenge communication
– Evaluation criteria
– Recommendation process
– Conclusion process
– Decision making process
– Reminders, prompts, alerts
– Personalized dashboards
Participants
Duration
Process
complexity
100
100,000
3 days 3 months
1 expert
200 leaders

A typical ideation event launch sequence
Event
Design
Ideas
Generation
Idea
Development
ConclusionsReviews
Purpose
Examples
Selection criteria
Populations
Recognition
Sponsorship
Communication
Communication
Encouragement
Re-enforcement
Sponsors &
stakeholders
set objectives
Employees,
experts or
externals are
invited to
participate
Review team
& experts
guide best
ideas to
develop
Review team
leaders conclude
the event in
terms of
outcomes
Categorise
Publicise
decisions
Next steps
Allocate
responsibility
Comments
Peer reviews
Expert
reviews
Final reviews
Public
comments
Event
launch
Review team
evaluates,
scores &
formally
reviews ideas
Configure Portal Portal supports process throughout Best ideas transition to projects

Example – The “Impossible” Problem
1.A focused cross
organizational task force,
set out challenges which
…
2.Are promoted to
experts in each
organization,
thereby …
!
3.Eliciting some
promising ideas
which …
5. Leads to the selection of
promising ideas that can be …
4.Are evaluated by a
joint review team,
which …
6. Evaluated by a larger
implementation review
team …

Example – “Expertise on Demand”
?
1.Some experts cannot be
full time on an important
project, so they...
2.Make themselves
available remotely,
which...
5.Eliciting some
responses... which
lead to more
engagement and
access with
projects that need
that expertise
4.Which the
experts answer,
thereby...
!
3.Allows the projects that
need them to have direct
access for questions …

Example - Collaborative Solution Concept
1.A joint venture
team wants to
develop a
solution so they
…
2.Pose challenges, which
are given to …
!
5.Creating collaborative
working on solutions
together which …
7.Helps meets the
objectives for the
joint venture
!Joint venture
solution
development
team
3. Experts in one
partner and …
!
6. Leads to jointly
owned ideas for
solutions which …
4. Experts in
another partner

?
1. Time
bounded
events
1. A small team has a
problem, so they...
2. Pose a challenge,
which...
! 3. Elicits some
specific ideas,
which...
4. Helps the
organization
archive goals
2. Ask the
expert
processes ?
1. A small team has
expertise, so they...
2. Advertise their
skills, which...
3. Elicits some
specific problems
to work on...
4. Which the experts
answer, thereby...
5. Helping to
solve the
problem and
grow
expertise
!
Our challenges fell into two broad categories of process

We found we needed 6 different ideation patterns
?? ?? ??
Problem + Ideas =
Solution
Situation + Insights =
Improved knowledge
Portfolio + Ideas (in/out)
= Updated portfolio
Product ideas, service ideas, strategy ideas, risks, blockers …
New ideas, improvement ideas, change ideas, counter arguments …
1. Get Insight 2. Solve It 3. Update Portfolio

Cont.
?? ?? ??
4. Qualification 5. Competition 6. Improvement
Candidates +
Questions = Decision
Candidates +
Criteria =
Winners
Process + Exceptions =
Insight for Improved
Process

The process
1. A leader wants to solve a
problem or get some new
ideas so they …
2. Stimulate a targeted
community …
3. With communications,
challenges, seed ideas,
conditions for action

Raw ideas are collected and built on by the community
!
Raw ideas
Idea building/
peer review
Developing ideas
ideas so they …
community …

Experts and reviewers drive idea development
!
Raw ideas
Idea building/
peer review
Developing ideas
‘Formal’ review/ stage-gate
Reviewed ideas
Review/
Evaluation/
Facilitation
team
Subject
Matter
Experts
Idea categorization/
recommendations
Evaluation
e.g. scorecard
ideas so they …
community …

Ideas are formally concluded and decided
!
Raw ideas
Idea building/
peer review
Developing ideas
‘Formal’ review/ stage-gate
Reviewed ideas
Idea bucketing/
Conclusions/
Decisions Review/
Evaluation/
Facilitation
team
Subject
Matter
Experts
Idea categorization/
recommendations
Evaluation
e.g. scorecard
 Assign responsibility
 Action plan
 Track
Decision/
action team
ideas so they …
community …

Process design is key to successful all ideation challenges
Convergence
The process by which the
community builds on ideas
The evaluation criteria
Scorecards and
recommendation
process
The appropriate pattern
of development of ideas
The decisions you will take to
move ideas to the next stage
Who you invite
How you invite
them
The challenge
you set them
The types of ideas
you do and do not
want
The type of content
you want developed

The challenge, expressed in the process design, needs to
be both targeted and convergent
Degreetowhich
challengeistargeted
Degree to which
challenge is convergent
We need
new ideas –
click here to
submit
Convergent
and
Targeted
Ideation
Design

The “funnel” analogy for ideation is not always helpful
A few winners??
• Fishing
• Picking winners
• Backlog of unimplemented ideas
• Risk of staff cynicism
Everyone contributes
• Planning for success
• Ideas need not compete
• Design for convergence
• Insights contribute to goals
– Flesh out details
– Provide key insights
– Challenge the status quo

And remember … the challenge owner’s objective is not
already the same as the question they ask
I need to grow the
business by $100M
To community: Do you
have any growth ideas?

Asking an indirect question often yields significantly more
participation and higher quality ideas
I need to grow
the business by
$100M
To community: Why are
not growing fast enough?

Other ideation techniques
Covert questioning
• The question is stated in ways
that solicit additional information
• The community is not aware they
are providing the additional
information
Social engineering
• Posing the question itself sends a
signal to the community
• The sponsor may be wishing to
send a signal about future
employee behavior
“What is the most important
single thing we can do to
achieve our objectives?”
“What will happen if we don’t
act on your idea?”
“What can we do to be more
customer intimate?”
“What can you personally do to
help in your role?”
Examples ...

Ideation is not all about “Innovation”
Analysis of over 1000 ideation events
Marketing -
market
opportunities,
potential new
offerings,
reduce cost
of slogans,
brand
names, etc
New Product
Development -
new product
concepts,
identifying
potential market
opportunities,
supporting the
front-end of the
product
development
process
Research &
Development -
technology solutions,
applications for
existing or new
technology, improve
efficiency of R&D
process, project
evaluation
Finance
cost reduction and
process
improvement,
structured tool and
process for the
company, solve
specific, time critical
problems, create
sustainable
competitive
advantage through
ongoing commitment
to innovative work on
small improvements
that competitors find
hard to replicate
Sales
identify new
selling
opportunities,
explore new
markets,
improve selling
process and
interaction with
the rest of the
firm and with
customers
Channel
how to
leverage
partners,
agents,
etc

Cont.
Customer
Service –
identify
opportunities to
improve
customer
service, tap into
customer insight
and feed into the
R&D, marketing
and sales
process, create
differentiators
through service
Manufacturing –
cost reduction,
process
improvement,
sharing best
practices
Supply Chain &
Procurement -
how to tap into
the supply chain
for
improvements,
cost reductions,
and ways of
adding more
value through
supplier-driven
innovation
HR –
supporting
general
employee
engagement
goals,
resolving
issues from
employee
surveys
Legal –
ensure
follow good
process,
protect
intellectual
property,
streamline
IP process
Executive -
involve
employees in
strategy to
promote
alignment and
buy-in,
address
specific
executive
challenges,
support search
for large
breakthrough
type innovation
initiatives for
growth

More examples of ideation projects at CSC
CSC Greenway
Sponsored by a panel of VPs
90,000 Employees invited
200 Review Team members
Result: Establishment of
www.csc.com/greenway
Cash Flow Optimization
Sponsored by CFO of largest CSC unit
2000 participants
20 person evaluation team
Result: Savings $64 to $128/annum
CEO Challenge
Sponsored by CEO
Part of CSC 50th celebration
All employees invited
2000 ideas developed
Integrated w/ Senior Leader Conference
Result: 3 New strategic initiatives
sponsored
SEEDS
Sponsored by Office of Innovation
Tech Topic based ‘events’
throughout year
Growing database of SEEDS ideas
Result: Tech awareness, education
Spinoff: Popular Serendipity All Staff
Newsletter
R&D Tax Rebates
Sponsored by business unit CFO
500 Architects invited
Return: $50K to bottom line
Repeated in other units
Elephants in the Room
Sponsored by VP Culture Change
Pre-CSC Annual Conference ideation
1500 Attendees invited
Result: Defined CSC Change
program
Sales Transformation
Sponsored by President of Sales &
Marketing
Sales community engagement
5000 Global Sales community invited
Result: Firm basis for Sales
Transformation
Global Customer Echo
Sponsored by ideation program
Employees invited to speak for their
client
90,000 Employees
Result: Input to CSC Strategy
programs
Risk Register Update
Sponsored by Chief Audit Officer
Secure ideation @ director level+
350 Senior Leaders invited
Result: Updated CSC Risk register

Pfzier “Idea Farm” Case Study
• Pfizer discovers, develops, manufactures, and markets leading prescription
medicines for humans and animals
• Pfizer’s success in “a human capital intensive business is reliant on their ability to
get the most out of some of the world's smartest people - their employees”
– Deployed Imaginatik Innovation Central across the Pfzier R&D organisation in a variety of
innovative ways
– 150 diverse challenges conducted
– Internal and open innovation
– Including scientific “chemical compound ideation”
http://imaginatik.com/clients/pfizer
??

Good culture
Knows why they are asking for new ideas, has
well defined goals, time, resource inputs and
constraints
Is ready to act in a
timely fashion if the
right ideas are
found
Has pre-budgeted
for the
implementation
project, even ahead
of the event
Avoids suggestion
boxes and building
up a database of
ideas ‘just in case’
Understands that
change takes time
and that one event
is not enough
The success of ideation depends largely on the culture

Poor culture
Wants to launch the idea program yesterday –
is frustrated by any delay
Looks to ideation as
a last resort
Believes that ideas
are ‘out there’ if only
they ask
Fishes for any and
all ideas, hoping for
results
Thinks that just
asking is enough –
does not
understand ideation
design
The success of ideation depends largely on the culture

CSC contributed to industry best practices
Identify the
problem &
owner
Details of
challenge&
audience
Launch Capture ideas Build out ideas
Evaluate
and review
Conclusions
and decisions
?
?
A structured process fosters
employee, partner and customer
knowledge and direct it to solve
problems and meet business goals
It works because collaboration is directed
towards convergent outcomes - the
workflow embodies peer collaboration, idea
development, structured evaluation and
stage gate process
Best practices drive event
planning, process design
and communications,
ensuring focus on outcomes
Event
Desig
n
Ideas
Generation
Idea
Development
ConclusionsRevie
ws
Purpose
Examples
Selection
criteria
Populations
Recognition
Sponsorship
Communicati
on
Communica
tion
Encourage
ment
Re-
enforcemen
t
Sponsors &
stakeholders
set
objectives
Employees,
experts or
externals are
invited to
participate
Review team
& experts
guide best
ideas to
develop
Review team
leaders
conclude the
event in
terms of
outcomes
Categorise
Publicise
decisions
Next steps
Allocate
responsibility
Comments
Peer
reviews
Expert
reviews
Final
reviews
Public
comments
Ev
ent
lau
nc
h
Review team
evaluates,
scores &
formally
reviews
ideas
Configure Idea Central Idea Central portal supports process throughout
Best ideas transition
to projects
Every event and jam is planned:
linked to strategy, process design,
launch and communications plan
facilitation, expert involvement,
decision logic and assignment of
responsibilities
month 1 2 3 4 … etc
Senior Management
Awareness Phase
Mid Management
Ideation Phase
Cross Functional
Ideation
Small number
of selected
2 day jams
2 week events
on streamed targets
What are the
Issues?
What are the
problems?
What
are the
solutions
?
Employee mobilization
Ideation
Implementation
strategies
Lead customer and
strategic partner ideation
Driving a change of culture
Events and jams can be chained
throughout the year – output of one
feeding input of another, allowing larger
problems or transformation challenges
to be addressed in phases
!
Raw ideas
Peer comment/review
Developed ideas
Formal review/stage-gate
Reviewed ideas
Conclusions and
Decision codes
Review team
As the expert
e.g. Implement now
Next year
Review codes,
Idea evaluation
Review
codes
e.g.
scorecard
 Assign responsibility
 Initial action plan
 Deadlines
Concludeeach idea
Large scale collaboration
takes place on an
enterprise social platform
and ideation portal - top
down and bottom up

Proprietary and Confidential
www.csc.com
@smithh
hsmith23@csc.com

Crowdsourced Innovation & Problem Solving

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