Lynn Conway is one of those ACS inventors who deserves mention. In 1965 she invented generalized dynamic instruction scheduling, enabling multiple instructions to be issued out of order in a single clock cycle -- a foundational advance in superscalar architecture. IBM fired her in 1968 for transitioning. It took the company 52 years to apologize.
The business consequence wasn't merely losing a talented employee. IBM threw away the future contributions of someone who had already demonstrated an extraordinary ability to solve fundamental architectural problems. She subsequently helped launch the Mead-Conway VLSI design revolution at Xerox PARC, making chip design accessible to a much broader community. IBM's bigotry drove that talent, and the opportunity to cultivate her next breakthroughs, out of the company.
We can't put a dollar figure on that loss, or assume retaining her would have saved ACS. But growing System/360 profits don't establish that IBM had "little to worry about." They show how easily a lucrative existing business can conceal the opportunity cost of throwing away exceptional talent. Maybe IBM thought they had the luxury of affording prejudice and bigotry, but it wasn't a sound business judgment.
Perhaps IBM's treatment of Conway supplies another answer to Watson's question. A vast organization can have exceptional talent and still squander it. Conway's firing came after the CDC 6600, but dismissing a pioneering computer architect for transitioning hardly suggests that IBM's problem was a shortage of resources. Sometimes the obstacle between your engineers and the future is your own management's bigotry.
I wonder how much talent Elon Musk has driven away -- trans employees, people with trans family and friends, and anyone repelled by his public humiliation, deadnaming, and misgendering of his own daughter. How many breakthroughs will happen elsewhere because their inventors wanted nothing to do with him? Those losses won't appear as a line item on a balance sheet either.
An interesting connection: Seymour Cray's grandson Andrew Cray was a trans man and LGBTQ healthcare advocate. He married Sarah McBride in 2014, four days before he died of cancer. McBride later became the first openly trans person elected to the US Congress.