“How Companies Innovate” · To foster companies and products that innovate the face of consumer...

@xrclabs

“How Companies Innovate”

• XRC Labs

• Trends in Retail

• Corporate Innovation• What is working?

Agenda

XRC Labs Mission

To foster companies and products that innovate the face of consumer goods and retail in a rapidly changing marketplace

using design thinking as a key driving process.

Our Values

• Embrace sustainability

• Advocate for moderate consumption

• Endorse economic global well-being

• Demand integrity, honesty, and fairness

• Recognize and nurture excellence in people, technology and products

• Mentor the next generation of innovators

#launchXRC

Who We Are

XRC Labs is a Consumer and Retail Goods Accelerator creating a one of a kind ecosystem

StartupsMentors

Retailers Brands

Venture Capital

Our Model

Growing Strategic Innovation Partnerships

November 7th & 8th – by invitation only

Cohort 6 Applications

Total applications received

A Growing Diversity of Start-ups

United States 60%India 6%United Kingdom 5%Canada 3%Israel 2%Italy 2%Germany 2%Nigeria 2%Other 8%

Top 7 Countries Represented(% of total applications)

40%

In the XRC Portfolio

46%of all XRC companies

have female CEOs

World Class Industry Sponsors

Trends in Retail

Losing years of market share LookRetailers are Struggling to Keep Up with Consumer Shopping Behavior

The Hollowing Out of the Retail Middle

16

Losing years of market share LookLosing Market Value Over the Last Five Years

Scarcity is the New Inventory

CNY

Loyalty is Not Just About Points

The Store Experience is Accelerating

Innovation Orgs that Fail

What do these companies have in common?

2011 — Google to GM —Partner?

10 different 100-mile routes on public roads

2012

“I don’t see the point” –Sr GM Executive

A true about face

$581MM

40 people

Today — Morgan Stanley Analyst

+

+>

$178 Billion

What changed?

What business is GM in?

Massive Fail - Innovation Dept / Group…

$$$$$$$$ +

Massive Fail - Business lines do their own thing

• Silos of innovation

• Massive redundancies

• No communication

• Many avoidable failures

• Or — No innovation

Business / Dept’s

Innovation Org failure

Innovation Org vs Business

• “We are innovative, you are not”

• “We are special, you are not”

• “We do what we want to do, regardless of your needs”

• “We do cool things, you do boring things”

Innovation that works

Innovation Councils — Hybrid

• Shared budget and goals• Business ownership of priorities• Eliminates redundant effort• Removes silos, spurs communication• Common processes• One company, one team

Innovation Council

Marketing

E-commerce

Supply Chain

Store Ops

Analytics

PlanningStrategy

CEO

Hallmarks of an Innovative Culture

Across Business Processes

• Legal

• IT

• HR MBO’s

• Time

— pilot agreements vs msa’s

— pilot vs production architectures

— Is learnings one of them?

— Is time more important than money?