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User-Driven Innovation—The World's First Business Computer

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User-Driven Innovation—The World's First Business Computer European Journal of Information Systems (1998) 7, 74–75 1998 Operational Research Society Ltd. All rights reserved 0960-085X/98 $12.00 Book reviews User-Driven Innovation—The World’s First Business On reading the chapter by John Gosden, ‘Towards Systems Computer Analysis’ one is struck by how much skill and inventiveness was required to produce code. Today we take for granted building sys- By David Caminer, John Aris, Peter Hermon, Frank Land tems with high level languages on virtually fault-free hardware Published by McGraw Hill Publishing Company, 1996, pp 384, with unlimited memory. The LEO team first had to build their £35 compiler, and then crack issues like memory sharing and utilities. ISBN 0-07-709236-8 Frank Land’s description of his work to identify business This book is an account of business innovation. It tells the story requirements, should be read by those who aspire to advise and of the development of the world’s first business computer, work in the area of change management. The team had grasped describes a family business that had the courage and vision to the important fact, that business needs drive technology, and not back the idea, and introduces an able group of young people that the other way round. An important lesson of the work was not to built the computer. The time and place are improbable, Britain in force change beyond the ability of an organization to absorb it, 1947, shortly after the Second World War. and that successful implementation of change requires a deep It is a case study of successful collaboration between an ancient understanding of the motivation of people. university and industry. The University of Cambridge team was Ralph Land describes his adventures building an export market lead by Dr Maurice Wilkes who built the EDSAC computer. The in eastern Europe. Working in the Soviet Union was rather less company, J Lyons & Co, more familiarly known as ‘Joe Lyons’, exciting than the conditions today. A telegram from a customer was more famous with the general public for their tea shops and in Czechoslovakia explaining that the Russian army had invaded, Nippys (waitresses) than technical innovation. The book is not a shows history unfolding. dry tome prepared as a business school text but a story written The traditional villains of British industrial decline, classically by the original team. They are as enthusiastic about ideas now as educated scholars, old universities and old established family busi- they were forty to fifty years ago. nesses succeeded in bringing this project home. Unfortunately, by The first part is a book within a book by David Caminer. It the ultimate tests of a business, survival and profit generation, they describes the project, from the first germ of an idea, to the merger failed. LEO computers did not become an IBM, or even one of the of LEO Computers with the ICT. At the present time when high seven dwarfs of the computer industry. It merged with English Elec- technology projects are expected to over-run, the development and tric, ultimately becoming part of ICL that is now part of the Japanese delivery of the LEO computer, on time and within cost, was a remark- company, Fujitsu. Perhaps we should look deeper into the way able achievement. The technologies of thermionic valves were sus- government and the institutions of the City of London have sup- pect, but the techniques of systems analysis for reliable, integrated, ported and given succour to technologists and business innovators. commercial computer operation were well developed as the project The European computer industry’s failure to grasp a strong proceeded. The team cannot recall an instance of incorrect billing or position in advanced technology is a serious blow to our future production scheduling as a consequence of the computer systems. prosperity. It is on this ground, that advanced nations must succeed The venture moved from conception to implementation in two if they are to maintain high living standards in the future. The story years. Derivations of the original LEO machines were still doing of LEO computers is a significant part of the story. Losing a leading useful productive work until decommissioned by the Post Office position in the emerging computer industry was a serious problem in 1981. It is likely that elements of the systems, having been for Britain but other examples come to mind. The development of transferred to more modern equipment, may still be in use today. the gas turbine after its invention by Sir Frank Whittle was another David Caminer contrasts the technical success of the LEO team, example of failure to build, not just on new scientific ideas, but on and the commercial success of IBM. By 1962 IBM had installed comparatively well thought out technology. over 4000 IBM 1401 machines worldwide compared to the hand- I commend this book to a wide audience. To the senior manager ful of LEO machines installed. The success of IBM was a combi- the case study is an insight into the pitfalls of diversification. It nation of US government and defence support and a ‘can do’ also reveals how much was achieved by imagination, dedication, society enthusiastic for innovation. and motivation. To the general reader it stands as a very well The project was not a first for Lyons under the leadership of JRM written and exciting account of technological innovation. To the Simmons. The company had, since the late 1920s, established a repu- business school student it presents a remarkable story of techno- tation for the development and implementation of advanced manage- logical success that as a commercial venture was flawed, perhaps ment accounting systems. It is unfortunate that we did not have a by factors beyond the control of the players. way of broadcasting these achievements. In the UK generally we Michael Braithwaite needed a more innovative approach to management education. Braithwaite Associates The remainder of the book is a series of case studies and remi- UK niscences by members of the team. Leo Fantl describes the work study project involving cleaners. Workers were deeply suspicious Editor’s note: of being watched, and to solve the problem the analysts arrived This book has recently been published in the US as Caminer DT, early, did the work themselves, and studied each other. In an age Aris JB, Hermon PM, Land FF (1998) LEO: The Incredible of specialisation, the range of activities, work study in the morn- Story of the World’s First Business Computer. McGraw Hill, New ing, and Chebyshev Polynomials in the afternoon, was enviable. York, 392 pages, $22.95, ISBN 0-07-009501-9..
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