Lemuel Lasher Uk 8 October 2009

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What is Innovation?

L. Lasher

Chief Innovation Officer

8 October 2009

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Ensuring clients have full access to CSC innovations worldwide

IdeaGeneration

Client and CSC Innovation

Solution Development

Ideation Campaign

Management

GlobalSolutions

CustomResearch Catalyst

Knowledge Enablement

TechnologyAgenda

ManagementAgenda

CSC Office of Innovation

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APQC Innovation Award

• Best-Practice Partner Award for successfully embedding innovation in the organization

• Presented March 27, 2007 at the APQC Knowledge Transfer Session on Innovation in Houston, Texas

• CSC was one of five companies selected. (Others were Air Products, Boston Scientific, Ethicon Endo-Surgery, and HP Imaging & Printing Group.)

• CSC was the only professional services firm to win the award

• Sponsoring organizations for the study “Successfully Embedding Innovation: Strategy and Best Practices include: Accenture, Deloitte, IBM, Northrup Grumman, Siemans AG, U.S. Army, Navy, Dept. of State, and GAO.

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External Validation: APQC Innovation Award• CSC receives Best-Practice Partner

Award 2008 for the Improving Front-End Effectiveness consortium benchmarking study on innovation.– How an organization generates new ideas and

manages their evolution to early-stage concepts, and then manages the portfolio of concepts before they enter the development phase.

– How an organization gauges innovation effectiveness and ensures continuous improvements through customer involvement.

– How an organization’s culture creates an environment for surfacing ideas and nurturing their development.

• CSC was one of five companies selected. (Others were Ethicon Endo-Surgery, Kennametal, Kraft and Shell E&P.)

• Sponsoring organizations for the study “New Product and Service Innovation: Improving Front-End Effectiveness” include: IBM, U.S. Army ARDEC, Sandia National Laboratories, Exxon Mobil, Johnson & Johnson, Ethicon Endo-Surgery, Giant Eagle Inc., Siemens AG.

Mark Neff (CSC) received award from Dr. Carla O’Dell, President of APQC November 12, 2008

“CSC recognizes that real innovation occurs between great people in the field and great clients, and because of this, they put a lot of effort into supporting field activity and making sure that clients and practitioners are aware of the ways in which they can leverage their experiences into innovations and new solutions.” - Gerry Swift, APQC project manager.

“It is gratifying to have an independent organization of APQC’s stature acknowledge our work in ideation and our holistic approach to innovation. This award underscores CSC’s commitment and ability to execute on the innovation agenda in ways that directly impact business success.” - R. Lemuel Lasher, CSC’s chief innovation officer.

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What is Innovation?

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The Innovation Paradox

Henry W. Chesbrough“Open Innovation” 2003

“Most Innovations fail. And companies that don’t innovate die.”

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The Innovation Metaphor

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The Innovation Agenda:a constituency based systems challenge in search of the levers for change

Innovation

Customers

Shareholders

IndustryAnalyst

Community

Executives

Alliance Partners

Employees

• Business value is paramount• Low cost services and solutions

• Innovation built into offerings and processes• New Ideas through techniques and services

• Pro-activity in style• Leveraged CSC resources

Improve rate of ROIC and provide engine for growth

• Thought leadership around innovation agenda

• Interesting & exciting company to report on• Demonstrated delivery

• Bring value to clients and CSC• Exciting, challenging work• New tools & technologies

• Reward and recognition• Meaningful and fulfilling careers

Differentiate CSC as an innovative leader in the marketplace

• Opportunities to be embedded in CSC solutions and services

• Springboard for their products and brand

• Way to explore emerging products in real-world settings

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“The Grain of Sand in the Oyster”

Innovation

Leadership Process

Governance Enablement

Leadership that sets the agenda, objectives and measures of success

Processes that connect the organization

with itself and the

outside world

Governance, organization and forums

Enabling applications, tools and infrastructure

Innovation results from the creative application of intellectual capital in a disciplined manner to a problem.

The Core and Context Elements of Innovation

IntellectualCapital

DisciplineCreativity

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Types of Innovation

Innovation

Value Creation

Value

Configura

tion L

ogic

Met

hod of M

onetiza

tion

Man

agem

ent

Busines

s

Model

Operating

Model

Product/

Service

Structure and Process

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Amplitude of Innovation

AdjacentCore New

Radical4

Breakthrough3

Adjacent2 Incremental1

Incremental

New

New to Company?

Ne

w t

o M

ark

et?

Discontinuous

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1953

Bil

lio

ns

of

Co

nst

ant

1996

Do

llar

s

1961 1969 1986 1994 2002

300

250

200

150

100

50

0

Open InnovationTotal US Research and Development funding 1953 – 2002

Source: National Science Foundation Science & Engineering Indicators, 2004.

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“Practical men who believe themselves to be quite exempt from any intellectual influence, are usually slaves of some defunct Economist” John Maynard Keynes

The value of thought leadership

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Joseph Schumpeter (1883 – 1950)

Open Innovation

“An element of genuine monopoly gain is offered to the successful innovator”

“For the carrot of spectacular rewardor the stick of destitution”

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19th Century 20th Century

Individual Innovation

21st Century

Credit: Dodgson, Gann & Salter, 2003.

Open Innovation… From Closed to Open, Distributed Innovation

In

tera

cti

on

Bet

we

en P

arti

cip

ants

Corporate Innovation

Distributed Innovation

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We Find it Hard to Imagine That “Dumb Users” Can be Innovators

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However: Many Important Innovations Come From Users

% of major innovations in industry

Scientific Instruments(von Hippel 1976)

77% by users

67% by usersSemiconductors

(von Hippel 1977)

90% by usersPultrusation Process(Lionetta 1977)

43% by usersPetroleum Processing(Enos 1962)

43% by usersChemical Processes/Equipment

(Freeman 1968)

Snow-/Skateboard/Windsurfing(Shah 2000)

58% by users

Several studies indicate that in many industries most important innovations originally were developedby users.

Source: von Hippel (1995, 2002).

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Increasingly, Value Will Be Co-Created with the Customer

Value created

here

Customer Experience

Value increasingly

createdhere

Product or Service

Traditional Value Chain

Customer

Customer

Customer

Customer

Customer

CustomerCustomer

Customer

Customer

Customer

Customer

Customer

Managing decision rights and building trust will be key.

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THANK YOU