Can a 200,000 people corporation adopt a learning culture to survive amongst a new breed of start-ups? A small pop-up design lab in the middle of a store aisle, five days time-box, and only one objective: learn something about Woolies' customers that would allow them to create a new and unique offering. The result; lots of experimentations, a few pivots along the way, and a prototype of an innovative “meal deal” offering, which was designed alongside real customers.
Text of Running a Large Corporate Innovate Like a Startup? | Lee Venaruzzo, Agile Program Manager,...
Running a Large Corporate Can corporations compete with an ever increasing wave of new start-ups? Like a Start-up
28.4 million customers served every week Australias most valuable brand (USD $10.8B) Established 1924 ~200,000 employees Woolworths Limited manages some of Australia's most recognised & trusted brands. We endeavour to create a world class experience for consumers at all levels of our business
The Retail Landscape 2001: 1st Australian store opened Amazon Prime worth 30% of Amazons total revenue. Amazon reportedly deals with Australian distributers 2009: CostCo, the worlds 7th largest retailer opens its doors in Australia 2007: Wesfarmers acquires Coles in largest successful takeover in Australia history. Wesfarmers larger than WOW in both revenue & profit 2000 300+ stores in Australia 2005: Amazon Prime Provides free delivery in US markets 2008: Amazon Prime now available in Japan, UK, Germany & France Today
No genetically modified food ever! Mission: To improve the lives and health of our members, by delivering the freshest, cleanest, most delicious food on the planet in an easeful, dependable way. Americas First Certified Organic Online Grocer. Every order you receive from us takes one more car off the road! Selecting food from across the US, Goldbely chooses foods from restaurants based on four variables: deliciousness, uniqueness (or iconic-ness), ability to travel well and, finally, that it makes an awesome gift. For most of these local food producers, this is the first time their dishes are able to reach a national audience. Nearly half of Goldbely's customers have made repeat purchases over its first four months as a live site, and it's brought in $100k in sales. Offers subscribers a gourmet selection of food delivered every two months from various countries around the world including France, Japan and Brazil!
ROLLOUT BUSINESS CA SE PILOT BUILD PLANNING APPRO VAL The Delivery Life Cycle ...we had to put our trust in how decisions are made not in what decisions are made
P O W E R E D b y S E R V I C E Purchased by Amazon in 2009 for $1.2 billion 2000 $200 $400 $600 $800 $1,000 $1,200 2001 2003 2004 2007 2008 $ $1.6 $8.6 $70 $840 $1,000 $ MILLIONS $184
Aim: To learn more about customers in the quickest and most cost effective way. Hypothesis: By applying basic scientific experimentation in a real retail scenario, learning what customers do or dont want, can be achieved more quickly & cheaply. Method: Get a developer into a store, in contact with customers to test rapid experimentation. Get feedback from customers and observe their behaviours to see if this is a valid method of learning.
To watch the video go to www.thoughtworks.com/clients/woolworths
Aim: To provide a more convenient shopping experience for customers. Hypothesis: Providing a self-scanning app for customers own mobile phones will provide a more convenient shopping experience by helping to avoid queues. Experiment: Build basic self-scan app and observe customers during shop to see if the app can be used easily and if it aids in reducing time on non-essential tasks. Results: Customers observed to have increased difficulty in shopping with a basket while holding items. Also received comments that it was not useful for a small shop. Conclusion: Self-scanning on a mobile device does not provide a more convenient shopping experience for small format stores.
Aim: To provide a more convenient shopping experience for customers. Hypothesis: Many customers are purchasing chickens for a quick meal in the evening. Providing recipes to customers would provide a quick meal that is also healthy. Experiment: Build basic iPad app that provides quick healthy recipes for chicken and observe customers during shop to see if they purchase the items to complete recipes. Results: Customers do not seem willing to get other recipe items from elsewhere in the store. Going into the rest of the store to get ingredients takes some of the convenience out of the shop. Conclusion: Items would need to be closer to the app to see if customers are likely to want the healthy meal offering.
Aim: To provide a more convenient shopping experience for customers. Hypothesis: Moving items close to the chickens and the chicken recipes will provide a convenient way to get a healthy meal in the evening. Experiment: Move items in the recipes to the same set of shelves as the iPad recipes and see if customers will purchase these items as part of a meal. Results: Customers do not seem to be selecting items from the recipes. A few customers feedback that they were not aware of the items near the recipes though they would be likely to pick them up if they knew. Conclusion: Items contained in the recipes need to be more obvious to customers to see if it is likely that they would find healthy chicken recipes valuable.
Aim: To learn more about customers in the quickest and most cost effective way. Hypothesis: By applying basic scientific experimentation in a real retail scenario, learning what customers do or dont want, can be achieved more quickly & cheaply. Method: Get a developer into a store, in contact with customers to test rapid experimentation. Get feedback from customers and observe their behaviours to see if this is a valid method of learning. Results: Multiple ideas applied and tested within 5 days. Several new ideas also able to be tested that were not planned at the start of the week. A lot of ideas were wrong!
Its all about how fast you learn Care about how you make decisions, not what decisions you make One good test is worth 1,000 expert opinions
Can a Corporate A recognised brand Capital to invest
Can a Corporate 200,000 entrepreneurs 200,000 decision makers 200,000 points of interaction with customers