Target’s e-commerce prototypes and Innovation keys in the US
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The document discusses innovation in retail, emphasizing that it involves creating value through customer-centric approaches and breaking away from conventional methods. It outlines the challenges and barriers to innovation, such as risk-averse cultures and lengthy development times, while highlighting the importance of collaboration and diverse teams. Successful innovation requires a combination of adaptive systems, new methodologies, and an understanding of customer experiences to drive sustainable growth.
Target’s e-commerce prototypes and Innovation keys in the US
- 1. Innovation in Retail How Retailers are changing the way they do business
- 2. Edward Chenard Innovation Leader at Target Built one of the first Big Data systems in Retail Built Data Science teams Built teams that have scaled to over $100MM in 2 years Twitter: echenard
- 3. What is Innovation “If I had asked people what they wanted, they would have said faster horses.” - Henry Ford • Innovation is about arriving at a place we have never been before by doing something we have never done before • Innovation is about seeing the world through the eyes of your customer • It is about creating value by challenging the culture and “how we do things”
- 4. The Heart of Innovation is Revolution It is about changing the world
- 5. “Understand this, you’re not competing with another company, you’re really competing for time and attention.”
- 6. Innovation is a series of Evolutions Data Centric Silos Specialist Linking Linear Customer Centric Collaborative Big Picture Practitioners Sharing Frictionless From To Innovation is about arriving at a place we have never been before by doing something we have never done before
- 7. How to Approach Innovation Innovation relies on trust and commitment. Reward the Brave
- 8. What do Executives want from Innovation? 0 20 40 60 80 100 New products & services for existing customers New proudcts & services to expand new customers New to world products Cost reductions to existing products & services Minor changes to existing products & services Priorities Priorities www.competingvalues.com
- 9. What Stops Them from Having Innovation? 32 28 26 25 21 21 18 18 0 5 10 15 20 25 30 35 Lengthy Development Times Lack of Coordination Risk-Averse Culture Limited Customer Insight Poor Idea Selection Inadequate Measurement Tools Dearth of Ideas Marketing or Communication… Barriers to Innovation
- 10. Inhibitors to Innovation Personal Block Problem Solving Blocks Organizational Blocks • Conformity • Following familiar habits • Enthusiasm without thinking • Lack of Imagination • Self discipline • Focusing on tools not problems • Lack of discipline • Rigidity • Poorly thought out approaches • Poor language skills • Forcing group think • Working in isolation • Not enough collaboration • Policies over solutions • Too much belief in experts Innovation is hard, it is never going to get easy. Understand the pitfalls along the path of building great products
- 11. For innovation to work, you need to go from idea to scaled product in a way that allows you to reach your customers first with the best value
- 12. Relevance Trust Scaling The Four Focus Areas of Innovation Culture Changing New Technologies Partnerships Learning Innovation Conversion Industrial era management tactics don’t work with innovation Innovation systems needs to not only be adaptive, but often complex systems that are open
- 13. Ideation Production Planning • Crazy should be normal • Focus on combining ideas to solves problems • What is the future, know it and plan for it • Think long term but plan for small steps • Build to learn • Focus on stability Being Unique has no value in itself, innovation much create value for the customer Goal: Always build with the goal of scaling, without scaling you are just funding someone’s hobby Scaling Think Different, Be Different
- 14. Getting Started Defining what you are doing Creating a cultural framework for the team Information that helps you drive decision The experience of the customer Merging data and UX Data AlgorithmsProcesses UXStrategy Today, innovation is a blending of many different areas of the business to come up with new ways of engaging customers through repeatable systems Innovation systems needs to not only be adaptive, but are often complex systems that are open. These are the models that survive, the more closed the model, the less use it will have by customers.
- 15. How to Build a Tem Innovation is a team sport, working in isolation is deadly
- 16. “The best way to kill innovation is to let the boss speak first”
- 17. New Methods Merging Many Methods to Gain an Advantage Innovation doesn’t fit in a single methodology One Method No Longer Works • Many companies only employ one method or poorly combine two. New methods require combining many methods to drive out real innovation. • Often Agile is used as a method for speed but often lacks big vision. • Design thinking often brings great user experience but lacks speed. • Product can bring great business strategy but can lack user experience. UX Agile Product Management Solutionist Approach Design Fast Strategic Design New Model
- 18. Doing Product Management the Right Way Learn from manufacturing product management One Method No Longer Works • Agile product management just isn’t enough to get the job done • Product managers need to be the small business owners of their own products • Long view with quick movements is the new normal Product Management
- 19. Agile gives you speed Agile works best in the development space Agile, a method with its place • Agile helps to keep your development team moving quickly • Agile is not a method for strategy or business management • Agile alone is not innovation Agile
- 20. UX, Where Design and User Experience Bring a Human Touch to Innovation Numbers alone don’t create innovation User Experience is the special sauce • User Design (UX) is not design, it is the action that informs design • It must be cross functional or else it just becomes “something those design guys do” • Design think helps the team balance the solutionist approach that often is rampant with technology innovation teams • People are ruled by emotions, not logic, build with that in mind Design Thinking (UX)
- 21. When people think of innovation teams, they often think of people like these
- 22. Most innovation team members look like these Studies have shown that people over 50 produce more high value products than the under 34 crowd. Over 45 have better financial understanding Over 35 have the experience needed to work on multiple work streams at once
- 23. Key Players Your Team Needs Idea Creation Implementation Choices Change Culture Actionable Scalable Repeatable Connector Keeps the team engaged with other teams Customer Champion Keeps the team focused on the customer’s needs Creator The magic maker, creates ideas Revolutionary Believes in change, driven to change the world Troubleshooter The problem solver, gets the team through challenges
- 24. Enlist Deep and Diverse Domain Experts Not all Doman Experts work the same: Brokers: A person or group that connects different clusters together. Closure: Building trust within a team cluster, the closer you are the stronger the trust. Betweeners: Critical linking member between other teams that can help the innovation team
- 25. How to Sustain it All Just because it works for Google, doesn’t mean it will work for you
- 26. • Algorithms should not replace strategic judgment. • Data can give a false sense of direction and security. • Big data and data science are not the same. Technical Pitfalls Companies Often Fall Into
- 27. Building Your Roadmap Can we win? Is it worth doing? Is it real? Today’s assumptions don’t work for tomorrow’s solutions
- 28. One Roadmap is Not enough Ideas and Strategy Roadmap Focus on ideas and how those ideas will then help the customer and business. No limits on ideas, use strategy planning to help narrow down which ideas to follow Detailed Roadmap Research, production and scaling roadmap. A roadmap to build these ideas to make them a working product that can be used by customers Collaboration Roadmap Who outside of your team do you need to work with. No idea grows in a single team, have a roadmap for collaboration across the org or ecosystem
- 29. Innovation RoadmapHave a roadmap to delivery and scaling FY 14 Q4 Nov- Jan FY 15 Q1 Feb - Apr FY 15 Q2 May - Jul FY 15 Q3 Aug - Oct FY 15 Q4 Nov - Jan Algorithm and Metric Monitoring Research Delivery Operations Social Interaction Batch Recommender Real- time Recc Search Data Revenue Attribution Pipeline for Rev Display Store Display POC Store Display POC Real-time recc based on search terms Recommendations utilizing social data Desktop/Mobile/ Tablet specific recommendations Real-time Inference
- 30. Customer Experience Framing Innovation and Customer Emotional Engagement Source: XPLANE and Business Model Generation by Alexander Osterwalder What do they THINK & FEEL & FEAR? what really counts major preoccupations worries & aspirations What do they SEE? environment friends colleagues what work offers What do they SAY & DO? attitude in public appearance behavior towards others What do they HEAR? boss colleagues influencers friends PAIN fears | frustrations | obstacles GAIN wants/needs | measures of success | obstacles
- 31. How can you reinvent the customer’s experience?
- 32. Connect the dots across multiple touch points Think of the memories you want to evoke, then design for those memories NOT what messages to communicate or what media should carry them Remember, innovation is about the customer, not the technology
- 33. Thank You