4th Annual Process Driven Innovation Conference September 18, 2013 Presenter: Gerry Myers, Vice President, Global Innovation, Chubb & Son Presentation: The Integrated Enterprise: Innovation In The Knowledge Economy Abstract: What is the imperative for innovation in a knowledge economy where employees are strategic assets and a company’s value proposition is becoming more and more defined by its ability to connect, understand and build trust among its employees, customers and suppliers? Gerry Myers, Vice President Global Innovation at Chubb & Son, a leading Fortune 500 P&C insurance company, will provide insights into this question as he discusses Chubb’s innovation model and practical experience gained over the last five years. In doing so, Gerry introduces the concept of the Big I vs. little i in innovation in describing how Chubb is using new social business platforms to build an “always on” innovation ecosystem that leverages the intellectual capital of its enterprise to deliver value to its customers and distribution partners.

1. The Integrated Enterprise
Innovation In The Knowledge Economy
Gerry Myers
VP Global Innovation, Chubb & Son
4th Annual Process Driven Innovation Conference
Philadelphia, PA 9/18/2013

2. Storyline
 Knowledge Economy
 Where Do Good Ideas Come From?
 Good idea paradox
 Innovation in the Knowledge Economy
 I v. i
 The Integrated Enterprise
4th Annual Process Driven Innovation Conference Philadelphia, PA
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3. Knowledge Economy
Jack Bergstrand,” Reinvent Your Enterprise”, 2013
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4th Annual Process Driven Innovation Conference Philadelphia, PA
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Frederick Taylor On
Manual Work
Define the task
Command and control
Strict standards
Measure performance to strict
standards
Work is specialized and stable
Treat workers as costs
Peter Drucker on
Knowledge Work
Understand the task
Give autonomy
Continuous innovation
Continuously learn and teach
Work is holistic and changing
Treat workers as assets

4. Knowledge Characteristics
• Ultimate economic renewable resource
• Stock is enhanced, not depleted by use
• Value creation comes from sharing with others
• Across the enterprise (employees, customers, partners)
• Technology has enabled and accelerated knowledge
value creation across the enterprise
• Web 2.0 interfaces
• Mobile
• Search (both content and people)
• Dynamic networks
• Personal brand building
• Knowledge is social
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5. Internal
Source
External
Source
Planned:
Formal
Processes
Unplanned:
Informal
Processes
Adhoc
ideas
from
anyone
30%
Industry
studies &
consultants
5%
Customers,
suppliers, and
competitor
actions
45%
Strategic
Plan, own
market
research
20%
2010 All Rights Reserved – The DeSai Group
Innovation Is Often Unplanned And Driven From
Across The Entire Enterprise
The Good Idea Paradox
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6. Data: full export of Chubb profiles: 813 people who submitted
2592 ideas, and 888 people who submitted 5631 comments.
Chubb’s Long Tail Experience
 In every organization with an
innovation model, few people
contribute a lot while many
others contribute a little.
 Businesses tend to focus on
the “head” of high-
contributors. With the reach
and simplicity of web 2.0
tools, the long tail of
occasional contributors is
enormous and valuable.
 Wise organizations pay
attention to both groups.
The Head: a few
people who
contribute dozens
of times.
The Tail: hundreds
who contribute a
few times.
Chubb’s pattern is essentially identical
to those of Pfizer, Cargill, Innocentive,
and many others.
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7. Innovation Imperatives In
The Knowledge Economy
 Tap into and leverage talent across all levels of
the enterprise
 Engage both “ends of the tail”
 Build a on-going dialogue among employees,
customers and distribution partners
 Trust established overtime
 Dynamic, always-on, open and collaborative
 Easy, intuitive, a “place” where you work and get
things done
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8. Innovation Today: Common
Characteristics
 Static
 Event/Challenge-Based
 Process/Stage-Gate Driven
 Fraction of innovation output is acted upon
 Struggling to measure value
 Rewards & Recognition programs
 “Hope to see you again”
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Innovation
Carnival

9. Innovation In The
Knowledge Economy
 Open & collaborative
 Ideation AND social business
 I and i
 Integrated search capabilities
 Simple, customizable front end
 Robust analytics back end
 Portfolio approach to idea management
 2x2 decisional matrix
 Decentralized, light-touch approach
 Early, visible wins
 Envision, Design, Operate, Build*
 Non-operational “seed” funding
Jack Bergstrand,” Reinvent Your Enterprise”, 2013
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10. Chubb’s Innovation Model
 5 year track record of tangible results
 Revenue growth, operational efficiency, service excellence,
mobile, training & education
 Internal and external focus
 30-45 day turnkey model
 Adaptive, end-user driven
 Macro to micro
 Model integration
 Ideation (I) and Social Business (i)
 Ability to export & import content from social to ideation
platform – a “home” for 99% of ideas that get discarded
 Searchable content & knowledge repository
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11. (i)nnovation
 Chubb’s social business platform
 Dynamic, “always on”
 From “one to many” to “many to many”
 Organic, user/content-driven
 Goals
 Facilitate collaboration across discipline, function, and
geography
 Help find and connect users with expertise
 Capabilities
 Publishing & Content Sharing
 In-Depth Employee Profiles
 Search & Organization of Information
 Customizable “activity steams”
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12. (i)nnovation drivers
Geographic
Dispersion and/ or
Organizational
Silos
Deep Pockets of
Technical Subject
Matter Expertise
Dynamic Market,
Economy,
Competitive
Landscape
4th Annual Process Driven Innovation Conference Philadelphia, PA
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13. LOSS CONTROL
ADRIAN, MO TORONTO
SAN FRANCISCO
NJ
INDIANA
24 48121 36 60HOURS TO REPLY
HIGH ELEVATED CO
AND CO2 LEVELS IN
PLANT
BUENOS AIRES
INDIANA
SAN FRANCISCO
FLORIDA
BALTIMORE OHIO
NJ
TORONTO
INTERNAL
COMBUSTION
ENGINES
NJ
URBAN
BEEKEEPING
USE CASE: REAL-TIME DEEP KNOWLEDGE & IDEA SHARING
4th Annual Process Driven Innovation Conference Philadelphia, PA
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14. (I)nnovation
 Chubb’s idea generation platform
 Static, challenge/event based
 Business unit/organizationally-driven
 Goals
 Complementary, off-cycle pipeline of 1-3 year ROI ideas
 Centralized technology & process, decentralized delivery
and execution
 Establish fast, repeatable model across global enterprise
 Capabilities
 Simple, easily configurable idea generation platform
 Robust, easy to use scoring tools
 2x2 decisional matrix
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15. 4th Annual Process Driven Innovation Conference Philadelphia, PA
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(I)nnovation
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16. Pair-Wise Idea Scoring
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17. High
Low
Difficult Easy
Top Ideas
1. …
2. …
3. …
4. …
5. …
Bold Moves Winning
moves
Low priority Tactics –
Quick Hits
Impact
• Revenue Growth
• Requires little/no additional staff
• We have the talent/expertise to execute
• Has a small/manageable execution risk
Idea Portfolio Mapping
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18. Moving from i to I

19. Moving from i to I

20. Moving from I to i

21. Moving from I to i

22. Open
Innovation
Idea
Vetting
Top Idea
Execution &
Tracking
Strategic Off-sites
Sydney, Toronto,
Berlin, Chicago
i + I Applied
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23. Innovation platform to build
out and score ideas
Social “ecosystem” to
begin the dialogue
+ =
Chubb’s Integrated Enterprise
Continuously Connected,
Integrated Enterprise
Ii IE
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Chubb Innovation
Global Applications
• Revenue Growth
• Operational Efficiency
• Ease of Doing Business
• Social Media/Emerging Technologies
 370+ groups
 2,700+ active users
 8,500+ documents
 6,250 discussions
 1,140+ blogposts
 50 innovation events
 5,00 ideas
 30,000 participants
 Material revenue impact
 New services
 Process improvements
4th Annual Process Driven Innovation Conference Philadelphia, PA
9/18/13

24. Summary
 Innovation in a knowledge economy is a strategic
imperative
 Current, static-based models only solve one side
of the equation
 Innovation is as much a culture, mindset and
environment as it is process
 Innovation requires an always-on ecosystem to
live and thrive in a knowledge economy
 Social business brings this important new
dimension to innovation…
 i + I are complementary & necessary to build
sustainable value in a knowledge economy
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