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Crowd-Sourced

Innovation &
Problem Solving
“Collective Intelligence”
at Enterprise Scale

Howard Smith
Director, Innovation

Proprietary and Confidential


Focus for today

• Howard Smith, Director of CSC Collective Intelligence 2007 to 2012

2005

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

Proprietary and Confidential May 24, 2016 2


In 2005 we were nowhere

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In 2010 McKinsey was asking whether there is business value
in collaboration?

Source: McKinsey & Company, “The rise of the networked enterprise,


Web 2.0 finds its payday.” Survey of 4,394 executives. December 2010

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Crowdsourcing is now everywhere … but can it work in the
enterprise?

www.designcrowd.com www.kickstarter.com www.kaggle.com

528,345 designers 11 million people 536,000 registered users


25 to 100+ ideas per Pledged $2.4 billion 3500 submissions/day
project Funding 106,082 projects 250,000+ data scientists

Stats as of May 2016

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Many organizations have this problem:
Business change projects ... Walk of the Living Dead!

BLAME
GAME
THROW
VALLEY PROJECTS: THE
FUZZY IT OVER
MURKY MIDDLE OF WALK OF THE LIVING
FRONT -END THE
DEATH DEAD
WALL
CORPORATE
DECISIONS AT THE
TWISTED GATE AMNESIA

ONE -MAN -BAND PORTFOLIO MANAGER

EXECUTIVE MOODSWINGS

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Is this an answer?

Proprietary and Confidential May 24, 2016 7


CSC used a time-boxed ideation ‘event’ approach

?
?

Identify Detail the


Evaluate Conclusions
the challenge Capture Build out
Launch and and
problem & ideas ideas
review decisions
& owner audience

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Our map for focused collaboration at CSC circa 2012
Create new solutions Drive adoption

Market needs Accelerate take-up


Existing capabilities Identify the best lead customers
Overcome blockers Accelerate knowledge of the solution
Gather ideas Excite the market
Assess viability Accelerate sales
Convert solutions into offerings Target new markets
Prioritize investment Partner for success
Identify synergies
New Value
Leverage partners Improve solution
Competitive assessment Improve appeal
Track relevant market change Remove blockers Define what’s next
Map core competencies Increase differentiation Agree how to get
Requirements & portfolio Develop new features there
Opportunity assessment Improve ROI
Solution options Leap to Next Generation
Resolve problems
Portfolio gap analysis Assess current viability
Identify internal & external experts
Explore market Improve Incrementally
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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 CFO of Major Business Unit
cash flow
Client Account 2006 $1.6M collected in unbilled Client Account General Manager
client work, one off
CSC Greenway June 2008 $780K savings and CSC Sustainability
initiated CSC Greenway Program Office
program
CSC India New June 2010 $2.2M new revenue New Services Director
Business
Corporate Growth October 2010 Contributed to $19.3B President, Sales & Marketing
Event sales performance

Proprietary and Confidential May 24, 2016 10


We found that our challenges came in all shapes and sizes

Inertia Lack of alignment Lack of employee engagement Too complex organization

Poor prioritization Too many options Incomplete information Communications

• Not knowing what the problem is or where it • Needing more detailed knowledge to clarify
resides a fuzzy problem or solution concept
• Not knowing which are the most important • Removing barriers – hard or soft - to
problems to focus on implementation of a solution
• Facing a lack of consensus about the need • Having clear goals and objectives – but
to solve a problem wanting to optimise the next step
• Knowing what the problem is but not • Difficulty communicating through layers of
knowing what the best solution is management
• Knowing what the solution is, but not • Wicked problems - problems tied up in parts
knowing how best to implement it of the organization outside of anyone’s
• Choosing between multiple solution options direct control

Proprietary and Confidential May 24, 2016 11


CASE STUDY
CSC SOLVED A COMPLEX CASH FLOW PROBLEM VIA STRUCTURED COLLABORATION

Challenge:
Day Sales
Outstanding
(DSO)
reduction

The Ideation Event


Duration 8 resulted in reduction
weeks of DSO by 4-8 days
Review
team: 27
$64M-128M /
experts annum

Audience: 2300 cross-functional


Active participants: 317
Ideas: 182
Reviews: 334
Votes: 1789
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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

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WHAT MADE THE CASH FLOW COLLABORATION WORK?

Ideation
The Right Process Evaluation
Starting Design Using
Point Scorecards Expert
Recommendations
Process
More than a
Suggestion Box
(Structured Decisions
Process) Implemented

Defined Decisions
Owner Explained

High
Priority Focused
Organization
Problem On The Issue

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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 Participants
– Forms design
100,000
– Collaboration rules
– Challenge communication
– Evaluation criteria
– Recommendation process 100 Duration
– Conclusion process 1 expert
3 days 3 months
– Decision making process
200 leaders
– Reminders, prompts, alerts
– Personalized dashboards Process
complexity
Proprietary and Confidential May 24, 2016 15
A typical ideation event launch sequence

Configure Portal Portal supports process throughout Best ideas transition to projects

Event Ideas Idea


Reviews Conclusions
Design Generation Development
Event
launch
Purpose Communication Comments Final reviews Categorise
Examples Peer reviews Public
Encouragement Publicise
Selection criteria comments decisions
Re-enforcement Expert
Populations reviews Next steps
Recognition
Allocate
Sponsorship responsibility
Communication

Employees, Review team


Review team Review team
Sponsors & experts or evaluates,
& experts leaders conclude
stakeholders externals are scores &
guide best the event in
set objectives invited to formally
ideas to terms of
participate reviews ideas
develop outcomes

Proprietary and Confidential May 24, 2016 16


Example – The “Impossible” Problem

1. A focused cross
organizational task force,
set out challenges which

2. Are promoted to
experts in each
organization,
3. Eliciting some
thereby …
promising ideas
which …
6. Evaluated by a larger
implementation review
team …
4. Are evaluated by a
joint review team,
which …
!
5. Leads to the selection of
promising ideas that can be …

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Example – “Expertise on Demand”

1. Some experts cannot be


full time on an important
project, so they...
!
? 4. Which the
experts answer,
thereby...

2. Make themselves 5. Eliciting some


available remotely, responses... which
which... lead to more
3. Allows the projects that engagement and
need them to have direct access with
access for questions … projects that need
that expertise

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Example - Collaborative Solution Concept

1. A joint venture
team wants to
2. Pose challenges, which
develop a
are given to …
solution so they

Joint venture
! solution
development
! 3. Experts in one
4. Experts in partner and …
another partner team

5. Creating collaborative
! working on solutions
together which …

6. Leads to jointly
7. Helps meets the
owned ideas for
objectives for the
solutions which …
joint venture

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Our challenges fell into two broad categories of process

? 1. A small team has a


problem, so they...
4. Helps the
organization
1. Time archive goals
bounded 2. Pose a challenge,

events
which...
! 3. Elicits some
specific ideas,
which...

1. A small team has


expertise, so they...
! 4. Which the experts
answer, thereby...
2. Ask the
2. Advertise their
expert skills, which...
processes ? 3. Elicits some 5. Helping to
specific problems solve the
to work on... problem and
grow
expertise

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We found we needed 6 different ideation patterns
New ideas, improvement ideas, change ideas, counter arguments …

Product ideas, service ideas, strategy ideas, risks, blockers …

1. Get Insight 2. Solve It 3. Update Portfolio

?? ?? ??

Problem + Ideas = Situation + Insights = Portfolio + Ideas (in/out)


Solution Improved knowledge = Updated portfolio

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Cont.

?? ?? ??

4. Qualification 5. Competition 6. Improvement

Candidates + Candidates + Process + Exceptions =


Questions = Decision Criteria = Insight for Improved
Winners Process

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

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Raw ideas are collected and built on by the community
1. A leader wants to solve a 2. Stimulate a targeted 3. With communications,
problem or get some new community … challenges, seed ideas,
ideas so they … conditions for action

!
Raw ideas
Developing ideas

Idea building/
peer review

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Experts and reviewers drive idea development
1. A leader wants to solve a 2. Stimulate a targeted 3. With communications,
problem or get some new community … challenges, seed ideas,
ideas so they … conditions for action

‘Formal’ review/ stage-gate !


Raw ideas
Reviewed ideas Developing ideas

Idea categorization/ Idea building/


recommendations peer review

Review/
Evaluation/
Facilitation
team
Subject
Evaluation Matter
e.g. scorecard Experts

Proprietary and Confidential May 24, 2016 25


Ideas are formally concluded and decided
1. A leader wants to solve a 2. Stimulate a targeted 3. With communications,
problem or get some new community … challenges, seed ideas,
ideas so they … conditions for action

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

Proprietary and Confidential May 24, 2016 26


Process design is key to successful all ideation challenges

The process by which the


Who you invite community builds on ideas

How you invite


them The evaluation criteria

Scorecards and
The challenge recommendation
you set them process
Convergence
The types of ideas The appropriate pattern
you do and do not of development of ideas
want

The decisions you will take to


The type of content
move ideas to the next stage
you want developed

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The challenge, expressed in the process design, needs to
be both targeted and convergent

Convergent
and
Targeted
challenge is targeted

Ideation
Degree to which

Design

We need
new ideas –
click here to
submit

Degree to which
challenge is convergent
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The “funnel” analogy for ideation is not always helpful

A few winners?? Everyone contributes

• Fishing • Planning for success


• Picking winners • Ideas need not compete
• Backlog of unimplemented ideas • Design for convergence
• Risk of staff cynicism • Insights contribute to goals
– Flesh out details
– Provide key insights
– Challenge the status quo
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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?

Proprietary and Confidential May 24, 2016 30


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?

Proprietary and Confidential May 24, 2016 31


Other ideation techniques
Covert questioning Social engineering

• The question is stated in ways • Posing the question itself sends a


that solicit additional information signal to the community
• The community is not aware they • The sponsor may be wishing to
are providing the additional send a signal about future
information employee behavior

Examples ...

“What is the most important “What can we do to be more


single thing we can do to customer intimate?”
achieve our objectives?”
“What can you personally do to
“What will happen if we don’t help in your role?”
act on your idea?”

Proprietary and Confidential May 24, 2016 32


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

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Cont.

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

Proprietary and Confidential May 24, 2016 34


More examples of ideation projects at CSC

Risk Register Update CSC Greenway


R&D Tax Rebates Sponsored by Chief Audit Officer
Sponsored by a panel of VPs
Sponsored by business unit CFO 90,000 Employees invited
Secure ideation @ director level+
500 Architects invited 200 Review Team members
350 Senior Leaders invited
Return: $50K to bottom line Result: Establishment of
Result: Updated CSC Risk register
Repeated in other units www.csc.com/greenway

CEO Challenge Global Customer Echo


Elephants in the Room Sponsored by CEO
Sponsored by VP Culture Change Sponsored by ideation program
Part of CSC 50th celebration
Pre-CSC Annual Conference ideation Employees invited to speak for their
All employees invited
1500 Attendees invited client
2000 ideas developed
Result: Defined CSC Change 90,000 Employees
Integrated w/ Senior Leader Conference
program Result: Input to CSC Strategy
Result: 3 New strategic initiatives
programs
sponsored

Cash Flow Optimization Sales Transformation SEEDS


Sponsored by CFO of largest CSC unit Sponsored by President of Sales & Sponsored by Office of Innovation
2000 participants Marketing Tech Topic based ‘events’
20 person evaluation team Sales community engagement throughout year
Result: Savings $64 to $128/annum 5000 Global Sales community invited Growing database of SEEDS ideas
Result: Firm basis for Sales Result: Tech awareness, education
Transformation Spinoff: Popular Serendipity All Staff
Newsletter

Proprietary and Confidential May 24, 2016 35


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
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The success of ideation depends largely on the culture

Good culture
Knows why they are asking for new ideas, has
well defined goals, time, resource inputs and
constraints

Has pre-budgeted
Is ready to act in a Avoids suggestion Understands that
for the
timely fashion if the boxes and building change takes time
implementation
right ideas are up a database of and that one event
project, even ahead
found ideas ‘just in case’ is not enough
of the event

Proprietary and Confidential May 24, 2016 37


The success of ideation depends largely on the culture

Poor culture
Wants to launch the idea program yesterday –
is frustrated by any delay

Thinks that just


Believes that ideas Fishes for any and asking is enough –
Looks to ideation as
are ‘out there’ if only all ideas, hoping for does not
a last resort
they ask results understand ideation
design

Proprietary and Confidential May 24, 2016 38


CSC contributed to industry best practices
Conclude each idea
Formal review/stage-gate

e.g. Implement now


Raw ideas
Next year
Reviewed ideas Developed ideas !
 Assign responsibility
?  Initial action plan
 Deadlines
? Peer comment/review

Review codes,
Idea evaluation
Conclusions and
Decision codes

Review team

Identify the Details of


Evaluate Conclusions Review
problem & challenge & Launch Capture ideas Build out ideas
and review and decisions codes
owner audience
e.g.
scorecard As the expert

Large scale collaboration A structured process fosters It works because collaboration is directed
takes place on an employee, partner and customer towards convergent outcomes - the
enterprise social platform knowledge and direct it to solve workflow embodies peer collaboration, idea
and ideation portal - top problems and meet business goals development, structured evaluation and
down and bottom up stage gate process
Best ideas transition
Configure Idea Central Idea Central portal supports process throughout Driving a change of culture
to projects
Ideas Idea
Event Revie Conclusions
Generation Development
Desig ws Senior Management Mid Management Cross Functional
n Awareness Phase Employee mobilization
Ideation Phase Ideation
Ideation

Ev
ent
lau
nc Final
Purpose Communica Comments Categorise
h reviews
tion
Examples Peer Publicise
Encourage reviews Public decisions Implementation
Selection comments strategies
ment
criteria Expert Next steps
Re- reviews
Populations Allocate What
enforcemen
responsibility are the
Recognition t
solutions
Sponsorship ?
Communicati
on What are the What are the
Lead customer and
Issues? problems?
strategic partner ideation

Sponsors & Employees, Review team 2 week events


Review team
stakeholders experts or Review team evaluates, on streamed targets
leaders
set externals are & experts scores & Small number
conclude the
objectives invited to guide best formally of selected
event in
participate ideas to reviews 2 day jams
terms of
develop ideas outcomes
month 1 2 3 4 … etc

Best practices drive event Every event and jam is planned: Events and jams can be chained
planning, process design linked to strategy, process design, throughout the year – output of one
and communications, launch and communications plan feeding input of another, allowing larger
ensuring focus on outcomes facilitation, expert involvement, problems or transformation challenges
decision logic and assignment of to be addressed in phases
responsibilities
Proprietary and Confidential May 24, 2016 39
www.csc.com
@smithh
hsmith23@csc.com

Proprietary and Confidential

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