A presentation by Lemuel Lasher, chief innovation officer at Computer Sciences Corporation, on innovation management in a professional services firm. Given at Imperial College Business School on 8 October 2009

1. What is Innovation? L. Lasher Chief Innovation Officer 8 October 2009

2. IdeaGeneration Client and CSC Innovation Solution Development Ideation Campaign Management Global Solutions Catalyst Custom Research Technology Agenda Management Agenda Knowledge Enablement Ensuring clients have full access to CSC innovations worldwide CSC Office of Innovation

4. What is Innovation?

5. The Innovation Paradox “ Most Innovations fail. And companies that don’t innovate die.” Henry W. Chesbrough “Open Innovation” 2003

6. The Innovation Metaphor

8. Low cost services and solutions

9. Innovation built into offerings and processes

10. New Ideas through techniques and services

11. Pro-activity in style

12. Leveraged CSC resources

13. Bring value to clients and CSC

14. Exciting, challenging work

15. New tools & technologies

16. Reward and recognition

18. Interesting & exciting company to report on

19. Demonstrated delivery

21. Innovation results from the creative application of intellectual capital in a disciplined manner to a problem. Leadership Process Processes that connect the organization with itself and the outside world Leadership that sets the agenda, objectives and measures of success “The Grain of Sand in the Oyster” Innovation Discipline Creativity Intellectual Capital Governance, organization and forums Enabling applications, tools and infrastructure Governance Enablement The Core and Context Elements of Innovation

22. Value Creation Method of Monetization Business Model Product/ Service Innovation Management Operating Model Structure and Process Value Configuration Logic Types of Innovation

23. Amplitude of Innovation New Radical 4 New to Market? Discontinuous Breakthrough 3 Incremental Adjacent 2 Incremental 1 New to Company? New Adjacent Core

24. Total US Research and Development funding 1953 – 2002 300 250 200 150 Billions of Constant 1996 Dollars 100 50 0 1953 1961 1969 1986 1994 2002 Open Innovation Source: National Science Foundation Science & Engineering Indicators, 2004.

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

26. 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”

27. Individual Innovation 19th Century 20th Century 21st Century Credit: Dodgson, Gann & Salter, 2003. Open Innovation Distributed Innovation Corporate Innovation … From Closed to Open, Distributed Innovation Interaction Between Participants

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

29. However: Many Important Innovations Come From Users 77% by users 67% by users 90% by users 43% by users 43% by users 58% by users Several studies indicate that in many industries most important innovations originally were developedby users. % of major innovations in industry Scientific Instruments(von Hippel 1976) Semiconductors (von Hippel 1977) Pultrusation Process(Lionetta 1977) Petroleum Processing(Enos 1962) Chemical Processes/Equipment(Freeman 1968) Snow-/Skateboard/Windsurfing(Shah 2000) Source: von Hippel (1995, 2002).

30. Increasingly, Value Will Be Co-Created with the Customer Managing decision rights and building trust will be key. Value increasingly created here Value created here Customer Customer Customer Customer Customer Customer Experience Customer Customer Traditional Value Chain Product or Service Customer Customer Customer Customer Customer

31. THANK YOU