Case Study: Ideation at CSC

A 21st Century Suggestion Box

Howard Smith Glen Hoffherr

An Enterprise Ideation Portal

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Business Change projects ... Walk of the Living Dead!

FUZZY FRONT-END

MURKY MIDDLE

VALLEY OF DEATH

PROJECTS: THE WALK OF THE LIVING DEAD DECISIONS AT THE TWISTED GATE

THROW IT OVER THE WALL

BLAME GAME

CORPORATE AMNESIA

ONE-MAN-BAND PORTFOLIO MASTER

EXECUTIVE MOODSWINGS

Source: Imaginatik, inventor of enterprise idea management

Collective Intelligence
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CSC cash flow ideation as reported by CFO

Challenge: Day Sales Outstanding (DSO) reduction

Duration 8 weeks Review team: 27 experts

The Ideation event resulted in reduction of DSO by at least 4 days ($64M/annum), possibly twice as much, over 12 month period

Audience: 2300 cross functional Active participants: 317 Ideas: 182 Comments and other reviews: 334 Votes: 1789 Hits on site: 39941
Collective Intelligence
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Ideation event concept

Creating value through employee and customer engagement

Identify the problem & owner

Detail the challenge & audience

Launch

Capture ideas

Build out ideas

Evaluate and review

Conclusions and decisions

Collective Intelligence

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Ideas as Products, Services, Strategies, Risks, Problems

New ideas, Improvement ideas, Contrary ideas

Three patterns for using ideation ....

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1. Problem + Ideas = Solution

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2. Situation + Insights = Better Knowledge

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3. Portfolio + Ideas = Updated Portfolio

Collective Intelligence

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Leaders create the conditions for convergence

Do not fish for ideas

Collective Intelligence requires an additive ideation process

Ideas as additive contributions Contributing to a solution, a goals, a challenge ...

Collective Intelligence

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The Triage or Funnel analogy is not always helpful in understanding ideation

? ?
A few winners ...

Ideation is not about picking winners or top ideas ....many events are additive

Ideas should not compete with one another, but add to an emergent picture, e.g.: Fleshing out details ... of a problem ... of a solution ... of a product design ... of a marketing campaign
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Everyone wins and contributes

Collective Intelligence

Three more patterns we use

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Qualification
Candidates + Questions = Decision

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Competition
Candidates + Criteria = Winners

??

Improvement
Process + Exceptions = Insight for Improved Process

Collective Intelligence

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The process in greater detail

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

Collective Intelligence

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The process in greater detail

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 Developing ideas

Idea building/ peer review

Collective Intelligence

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The process in greater detail

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

Formal review/ stage-gate

!
Raw ideas

Reviewed ideas

Developing ideas

Idea categorization/ recommendations

Idea building/ peer review

Review/ Evaluation/ Facilitation team

Evaluation e.g. scorecard

Collective Intelligence

Subject Matter Experts

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The process in greater detail

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

Formal review/ stage-gate Decision/ action team

!
Raw ideas

Assign responsibility Action plan Track Idea bucketing/ Conclusions/ Decisions

Reviewed ideas

Developing ideas

Idea categorization/ recommendations

Idea building/ peer review

Review/ Evaluation/ Facilitation team

Evaluation e.g. scorecard

Collective Intelligence

Subject Matter Experts

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A typical ideation event launch sequence

Configure Portal Event Design Event launch
Purpose Examples Selection criteria Populations Recognition Sponsorship Communication

Portal supports process throughout Ideas Generation Idea Development

Best ideas transition to Reviews

projects

Conclusions

Communication Encouragement Re-enforcement

Comments Peer reviews Expert reviews

Final reviews Public comments

Categorise Publicise decisions Next steps Allocate responsibility

Sponsors & stakeholders set objectives

Employees, experts or externals are invited to participate

Review team & experts guide best ideas to develop

Review team evaluates, scores & formally reviews ideas

Review team leaders conclude the event in terms of outcomes

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Collective Intelligence

Best practice template for designing ideation events

Collective Intelligence

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Touches Many/All Areas F&A Accounting F&A - Cash Operations (Billing & Cash Collections) F&A Contracts F&A - Contract Close-out and final billing F&A - Program Control F&A Subcontracts New Business Acquisition IT Systems Sr. Operations Management Program/Project Management Presidents and VPs Sterling Service Center Senior NPS Management Other Area - specify in idea description

Collective Intelligence

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Collective Intelligence

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Problem-challenge definition is a critical step

1. Interview sponsor, problem owner

The right questions The appropriate decision process

The appropriate evaluation process

A convergent design A committed team

Collective Intelligence

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Problem-challenge definition is a critical step

1. Interview sponsor, problem owner

The right questions The appropriate decision process

The appropriate evaluation process

A convergent design A committed team

2. Distribute problem definition questionnaire (PDQ) to those with insights/ the involved

Collective Intelligence

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Problem-challenge definition is a critical step

1. Interview sponsor, problem owner

The right questions The appropriate decision process

The appropriate evaluation process

A convergent design A committed team

2. Distribute problem definition questionnaire (PDQ) to those with insights/ the involved

3. Agree with sponsor/ problem owner

Collective Intelligence

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Problem-challenge definition is a critical step

1. Interview sponsor, problem owner

The right questions The appropriate decision process

The appropriate evaluation process

A convergent design A committed team

2. Distribute problem definition questionnaire (PDQ) to those with insights/ the involved

3. Agree with sponsor/ problem owner

4. Start the ideation project

Collective Intelligence

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Ideation Is Not All About Innovation

Finance cost reduction and process New Product improvement, Development Marketing Research & structured tool and new product market Development process for the concepts, opportunities, technology solutions, company, solve identifying potential new applications for specific, time critical potential market offerings, existing or new problems, create opportunities, reduce cost technology, improve sustainable supporting the of slogans, efficiency of R&D competitive front-end of the brand process, project advantage through product names, etc evaluation ongoing commitment development to innovative work on process small improvements that competitors find hard to replicate Sales identify new selling opportunities, Channel explore new how to markets, leverage improve selling partners, process and agents, interaction with etc the rest of the firm and with customers

Collective Intelligence

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Analysis of Over 1000 Ideation Events

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 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 Executive involve employees in strategy to Legal promote alignment and ensure buy-in, follow good address process, specific protect executive intellectual challenges, property, support search streamline for large IP process breakthrough type innovation initiatives for growth

Manufacturing cost reduction, process improvement, sharing best practices

Collective Intelligence

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9 more examples of successful ideation projects at CSC

R&D Tax Rebates
Sponsored by B.Unit CFOs 500 Architects invited Return: $50K to bottom line Repeated in other BUs

Risk Register Update

Sponsored by Chief Audit Officer Secure ideation Director level and above 350 Senior Leaders invited Result: Updated CSC Risk disclaimers

CSC Greenway
Sponsored by a panel of Presidents/VPs 90,000 Employees invited 200 Review Team members Result: Establishment of www.csc.com/greenway

Elephants in the Room

Sponsored by VP Culture Change Pre-CSC Annual Conference ideation 1500 Attendees invited Result: Defined CSC Culture Change program

CEO Challenge
Sponsored by CEO Part of CSC 50th celebration All employees invited 2000 ideas developed Integrated to Senior Leader conference Result: 3 new strategic initiatives

Global Customer Echo

Sponsored by ideation program Employees invited to speak for their client 90,000 Employees Result: Input to BU change programs

Cash Flow Optimization

Sponsored by CFO of largest CSC unit 2000 participants 20 person evaluation team Result: Savings $64 to $128/annum

Sales Transformation
Sponsored by President Sales & Marketing Sales community engagement/change 5000 Global Sales community invited Result: Firm basis for Sales Transformation

SEEDS
Sponsored by Office of Innovation Tech Topic based events throughout year Growing database of SEEDS Result: awareness, education Spinoff: popular Serendipity all staff Newsletter

Collective Intelligence

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Ideation events must be targeted and convergent

What ideas do we have around topic T?

What T ideas do we need to achieve our goal G in time X with resources Y under constraints C? What ideas do we need? Why? How will we get them? Do the part come from different sources? What perspectives need to be included? ..... Etc.

Design the collaboration in all details to get the ideas we need: - Target - Communications - Community - Process - Etc.

Degree to which challenge is targeted

Got any ideas?

Degree to which challenge is convergent

Collective Intelligence
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Divergent question

We need new ideas click here to submit

Collective Intelligence

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Additive question

We need ideas that could help us get closer to our objective X

Collective Intelligence

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Additive (improved)

Can you improve this idea? Enter ideas that help us flesh out all the details we need, such as A, B, C and D
Collective Intelligence
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Convergent challenge

Our objective is X. We must achieve milestone M by date D using resources R under constraints L.
The types of ideas we need are T. The kinds of ideas we dont want are N. When you enter your idea, please supply information A, B and C.

Well be evaluating the ideas like this E. Ideas will progress to the next stage if they meet criteria C.
The decisions we will take are either P, Q, R or S.
Collective Intelligence
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Event design drives everything

Who you invite The process by which the community helps build out the ideas

How you invite them

The evaluation criteria

The challenge you give them

The nature of recommendations by your experts

Convergence
The types of ideas you do and do not want The stages of development of ideas

The content of the ideas you need

The decisions you will take to move ideas to the next stage

Collective Intelligence

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The sponsors objective is NOT the same as the question he should give to the community

I need to grow the business by $100M

To community: Do you have any growth ideas?
Collective Intelligence
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Asking indirect questions often yields significantly more ideas and higher quality ideas

I need to grow the business by $100M To community: Why are not growing fast enough?
Collective Intelligence
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Other ideation techniques

Covert questioning The question is stated in ways that solicit additional information

Social engineering Posing the question itself sends a signal to the community

Examples ...

The community is not aware The sponsor may be they are providing the wishing to send a signal additional information about future employee behavior
What is the most important single thing we can do to achieve our objectives? What will happen if we dont act on your idea?
Collective Intelligence

What can we do to be more customer intimate?

What can you personally do to help in your role?
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The success of ideation depends largely on the leader

Good Leader
Knows why they are asking for new ideas, has well defined goals, time, resource inputs and constraints
They are ready to act in a timely fashion if the rights ideas are found They pre-budget for the implementation project, even ahead of the event They dont build up a body of ideas just in case They know that one event does not create an ideation program in support of their organizations objectives

The time spent in design is worthwhile but only to the extent the event is mission critical
Collective Intelligence
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The success of ideation depends largely on the leader

Poor Leader
Wants to launch ideation tomorrow is frustrated by any delay
Believes that ideas are out there if only they ask Fishes for any and all ideas, hoping for results

Looks to ideation as a last resort

Thinks that just asking is enough

A little fishing is ok, as long as the sponsor understands that is what they are doing!
Collective Intelligence
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What made the CSC cash flow event work?

Ideation Design Process Evaluation Against Scorecard

Right Starting Point

Formal Recommendations

More than Open Suggestion Box

Decisions Implemented

Defined Owner

Decisions Explained

High Priority

Focused Organization On Issue

Collective Intelligence

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How does social fit in?

Ideas grow through community management Community grows through idea management Idea platform top down Conceptual centre the idea and the process Business Initiatives Employee Communities Conceptual centre the connection and the community Social platform bottom up

The two solutions have very different conceptual centers and profound differences of functionality

Collective Intelligence

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Where is the technology going?

The solutions are evolving

Idea platforms are evolving to add social functionality Social platforms may be evolving to add idea functionality

Enterprises are learning

Companies are learning how to deploy idea management as their primary collaboration platform

Others use idea management to complement a social platform

An incoherent strategy is unwise

Technical integration challenges Attention challenges from competing initiatives Need for governance, process, ergonomics and architecture
Collective Intelligence

Take your pick

IT leaders love social networks turn on and forget
Business leaders prefer idea management because they have projects to run and need results
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Innovation Management platforms

A small number of leading solutions
Many niche/trivial solutions
http://www.imaginatik.com/ Used by CSC 2007 to 2012

Look for an end-to-end solution

Communication, engagement, ideation, evaluation, stage-gate, decisions, action assignment, tracking, measurement of results (long term), closed loop best practice development

Workflow + collaboration
http://www.spigit.com Possible future use by CSC

Business process agnostic

Any Business Initiative management Sales, marketing, R&D, HR, best practices, CEO/leader special projects, launch innovation, competitive response, customer echo, open innovation, customer service, voice of employee, strategy planning, investigation/audit, NPD, six sigma/lean, future planning

http://www.hypeinnovation.com/ http://www.brightidea.com/ Future investigation by CSC

Collective Intelligence

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Complementary methods and tools Text mining can amplify understanding of the ideation conversation Root cause analysis can verify the plan for moving forward beyond the top ideas

Locating thematic centers, pinpointing hidden or outlier themes

www.triviumsoft.com
Collective Intelligence

www.southbeachinc.com
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Ideation with our clients

Four examples of open innovation patterns:

Details removed for confidentiality

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Open Innovation objectives come in all shapes and sizes

Not knowing what the problems are or where they reside 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 Facing a lack of consensus about the need to deploy a solution Needing more detailed knowledge to clarify a fuzzy problem or solution Problems tied up in parts of the organization outside of your control Removing barriers hard or soft to implementation of a solution Having clear objectives but not knowing what the next step is Difficulty communicating through layers of management

Collective Intelligence

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1. Impossible problems

1. A small multiorganizational domain team, set out challenges which

3. Eliciting some promising ideas which

2. Are promoted to experts in each org, thereby

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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Collective Intelligence

2. Expertise on demand

1. Some experts cannot be full time on an important project, so they...

4. Which the experts answer, thereby...

3. Allows the projects that need them to have direct access for questions

2. Make themselves available remotely, which...

5. Eliciting some responses... which lead to more engagement and access with projects that need that expertise

Collective Intelligence

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3. Shared challenges
1. A program is in a fix and needs real help, so they... 6. Helps the project 2. Pose a hard challenge which...

!
5. Eliciting some specific ideas, which...

3. Is shared very widely 4. Possibly including partners and suppliers

Collective Intelligence

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4. Collaborative solution development

1. A joint venture team wants to develop a solution so they

2. Pose challenges, which are given to

!
4. Experts in another partner

Joint venture solution development team

3. Experts in one partner and

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6. Leads to jointly owned ideas for solutions which
Collective Intelligence

5. Creating collaborative working on solutions together which

7. Helps meets the objectives for the joint venture

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More information via

hsmith23@csc.com
www.csc.com

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