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How GE's Innovation Toolkit can be used to drive Innovation and Operational Improvement in Retail Companies
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Jonathan WainbergVice President
GE Retail Finance
GE’s Tool Kit:
How to Foster Innovation and Operational
Improvement within a Retail Organization
Mike LaChapelleVice President
GE Commercial Finance
What is Access GE?
“The goal of our ACFC initiative is to bring the entire ‘GE toolkit’ to our Customers to help ensure their success..whatever GE capabilities are most important to them and will have the biggest impact on their bottom line.”
Jeffrey ImmeltChairman and CEO, GE
At the Customer, For the Customer (ACFC)
Our Toolkit
A set of game changing tools and process improvement methodologies proven successful within GE…and with customers
• Collaborative Problem Solving (Work-Out)• Change Management (CAP)• Acquisition Integration • Strategic Growth Workshop• GE Learning Center (Crotonville)
CFO DayAcquisition Integration RoundtableLeadership for Customers
• Team Development• Innovation Facilitation Tools• Strategic Planning Essentials
• Lean Overview / SimulationKaizen Events including 5SValue Stream MappingSMED / Quick Changeovers
• Six SigmaExecutive Overview / SimulationGreen Belt TrainingProject Coaching
• Process Mapping• Project Management Training
Access…GE’s Tools & Methodologies
Function / ProcessHR Performance ManagementIntegrity & DiversityFinance - Treasury & Hedging Sourcing & Outsourcing Call Center ManagementEnvironmental, Health, SafetyNew Product IntroductionGE Operating RhythmShipping & LogisticsSales Force EffectivenessIT & DigitizationShared Services – Payroll, T&LMarketing & Branding
Access…GE’s People & Experience
Access GE experts to leverage our industry breadth & functional knowledge
GE Core BusinessesInfrastructure – Aircraft, Rail, EnergyIndustrial – Appliances, LightingHealthcare NBC UniversalGE MoneyCommercial Finance*Operations in 100 countries
Staff Industry ExpertiseAerospace, Auto, Chemicals,Communications and Entertainment,Construction, Food/Beverage, Forest Products, Manufacturing, Healthcare, Media, Retail, Steel,Transportation
Emerging MarketsChinaIndiaEastern EuropeRussiaBrazil
GE InitiativesGrowth as a ProcessNet Promoter ScoreEcomaginationGlobalizationEnterprise Selling
Our Toolkit
GE Retail PartnersLuxury, Discounters, Apparel, Jewelry, Home Furnishings, Consumer Electronics, Auto/Tire, Sporting Goods, Health & Personal Care
Retail ACFC ExamplesCustomer Activity
Retail Drug Store Chain Increase Customer Traffic
Electronics Retailer Improve Order-to-Fulfillment Process
Sporting Goods Implement Warehouse Management System
Computer Retailer Project Management Training
Furniture Retailer Business Continuity Planning
Department Store Chain HR/Benefits Communication Process
Department Store Chain Internal Store Communications
Sporting Goods Selling Skills
Department Store Chain Increase Inventory Turns
Customer Department Store Chain
Customer Issues and Objectives• Redesign Store Communications to better serve Store Managers and Staff• Improve Timeliness and Accuracy of Communication• Reduce Repetition, Focus on Critical Items
ACFC Engagement• GE facilitated a 1 ½ day Work-Out on Store Communications
Customer Benefit • Streamlined process for Store Communications designed around needs of Store
Managers and Staff
"Work-Out was a great tool to produce meaningful solutions to a complex problem in a simple way. Really enjoyed the session. Exceeded expectations." -- Store Manager
"Great way to raise/hash through the issues/opportunities quickly. Guardrails help maintain structure to conversation" -- Store Operations Manager
"Lots of value taken from this. Looking forward to sharing this with my peers." -- Buyer
"Actionable, understandable, well thought out. Very good tool! Over exceeded my expectation" -- Brand Director
ACFC Snapshot: Improved Store Communications
Customer Electronics Retailer
Customer Issues and Objectives• Learn about GE’s Change Acceleration Process (CAP)• Apply CAP Tools to In-Store Services Reorganization/Rebranding Initiative• Ensure Associates’ Support for Initiative
ACFC Engagement• GE facilitated a 2 day CAP Session
Customer Benefit • Detailed Action Plan for Successful Launch of Rebranding Initiative
"Very valuable - learned a great deal that I will apply.“ – Director of Services, Retail
"Very well done....extremely professional and you did a very good job calibrating the pace and level of detail to the audience and situation.“ - Director of Business Transformation
"Greatly exceeded expectations. Facilitators had great insight into our goals and mission.“ – Director of Retail Transformation
ACFC Snapshot: Change Acceleration Process
Customer Specialty Retailer
Customer Issues and Objectives• Learn about GE Best Practices in Inventory Management• Develop Action Plan for Inventory Reduction• Develop Experience in Team Based Problem Solving
ACFC Engagement• GE facilitated a 2 day Work-OutTM on Inventory Management
Customer Benefit • Clear plan to tackle $40 million Inventory Reduction target
"Very well organized, presented very well. Thanks" - Senior Manager, Merchandise Planning and Allocation
"Insightfully facilitated, good real-world analogies, interesting info that was never boring, useful techniques. Glad to see we did this." - Senior VP Manufacturing & Quality Control
"Liked the structure, tools, and the ling to a real opportunity for my team and company" - VP Merchandise Planning and Allocation
"Process is excellent for producing workable objectives" - Executive Vice President/CIO
ACFC Snapshot: Inventory Management
Customer USA Drug
Customer Issues and Objectives• Improve Customer Service• Increase Customer Traffic
ACFC Engagement• GE facilitated and supported USA Drug through the development of a customer service
program that included additional training, sharing best practices, measurement systems, and reward and recognition programs
• The customer service program was rolled out in 18 stores for 14 months
Customer Benefit • Same store customer count up 3.4%• Prescription Sales Growth rate increased 1.6X
“We were very impressed with GE’s ACFC program. We expected our lenders to be focused on our performance, but GE went above & beyond. They actually helped us improve our operating performance. The initiative delivered a tremendous level of value and helped drive our business growth.”
John TrainorUSA Drug, SVP Finance
ACFC Snapshot: Increased Customer Traffic
Company Highlights• Tourneau is the world’s leading retailer of luxury watches
• We operate:– 34 stores in 13 states– Watchgear: 8 stores in 4 states– Outlets: 3 in 3 states– 6 stores in the Caribbean and China
• Each Senior management member has at least 20 years retail experience with an average of 8 years with the Company
Tourneau Projects with GE
GE Tools i.e.
• Lean - White Plains Backroom Project
• Innovation Workshop – Summer 2007
GE Tool: Lean
Lean- White Plains Backroom Project
Objective: Streamline Back Office Processes and Organize Record Keeping in Tourneau’s White Plains Store
Tourneau “Lean” 5S Event: Store Back Office
What is 5S?
1. Sort – Eliminate unneeded items2. Simplify – A place for everything3. Shine or Sweep – Keep the workplace
clean4. Standardize – Identify work standards5. Sustain or Self Discipline – Keep it going!
Before
During
After
Details
• Unnecessary Paperwork and Promotional Items Eliminated
• Space Freed Up • Retained Items Labeled for Easy Retrieval
and Timely Disposal• Paperwork Handling Processes Improved
Tourneau “Lean” 5S Event: Store Back Office
Results
GE Tools: Innovation Workshop June 2007
Held at GE Global Training Center in Crotonville, NY
• Interacted with other GE Retail Customers
• Shared insights from different business models
(Grocery, Sporting Goods, Furniture)
• During break out session, utilized Customer
Journey Mapping tool
• Generated new initiative creating unique Top
Customer Reward program utilizing Vendor
Incentives
GE Innovation Tools & Exercises• INNOVATION ASSUMPTIONS
Discuss the common assumptions about innovation to start a dialogue.
• DEFINING AND CLASSIFYING INNOVATION Explore various types of innovations to clarify your own innovation goals.
• INNOVATION FRAMEWORK Discover the mindset and behaviors essential to effective innovation.
• ADOPTING A CURIOUS MINDSET Ask the simple questions that challenge our most basic assumptions about the world around us.
• RINGSIDE Look at how major trends are affecting our business and providing new opportunities.
• HYPOTHESIS MAPPING Sharpen your hypothesis and determine the factors that will lead to success.
• UNLOCKING INNOVATION POTENTIAL (THE RIPPLE EFFECT) Trace the potential impact of an idea to get ahead of the changes it spawns.
• WHAT BOX ARE YOU IN? Re-define your context to find new customers and markets.
• CUSTOMER ECOSYSTEMS Map the system of players in the industry to innovate more holistically.
• CUSTOMER PROFILING Explore customers’ lives and motivations to uncover unmet needs.
• MAPPING CUSTOMER JOURNEYS Look at the customers’ entire experiences to find ways to create value at every touchpoint.
• PROTOTYPING YOUR IDEAS Unstick your thinking and get clearer about how to test and evaluate your idea.
• DEVELOPING INNOVATION TRAITS Diagnose your strengths and weaknesses on innovation traits.
• INNOVATION ENVIRONMENTS Explore the types of environments that will best reinforce your innovation goals.
• INNOVATION ARCHETYPES Learn the nine essential roles in innovation, and who in your organization can play each role.
MAPPING CUSTOMER JOURNEYS
LOOK AT THE THREE BASIC JOURNEY STAGES TO IDENTIFY OPPORTUNITIES TO
CHANGE THE STATUS QUO AND ENHANCE THE CUSTOMER EXPERIENCE.
Exploring the customer’s journey to identify innovation opportunities.
• While no two experiences are the same, there are three basic stages to every journey. Each provides an opportunity to change the status quo and tap into customers’ unmet needs.
We become aware and we learn about a product, service, or brand.
AWARENESS
We choose and we buy specific goods, knowledge, or services.
COMMITMENT
We use, enjoy, re-purchase, and share our experiences with others.
USAGE
Examples of customer journey
By focusing on universities, Dell became widely used and known by students who spread word about the brand to their friends and family.
AWARENESSDell wanted to offer customers cheap, customizable PC s, so they reinvented how consumers select and purchase by selling directly through an online portal.
COMMITMENTDell backs up their purchases with 24 hour online and phone support, and onsite visits for the problems they can’t solve over the phone.
USAGE
CUSTOMER JOURNEY MAPPING
– Identify the customer (business customer or end consumer segment).
– Describe the customer’s current experience and its anomalies or points of frustration.
– Brainstorm what customers desire, what is possible, and what role your company can play.
– Identify which ideas could benefit both types of customers.
At the Customer, For the Customer
Growing with Our Retail Partners