@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?