Collaborative innovation in Luxottica: Idea.Lab Anna Li Vecchi

Lux IdeaLabSocial Business Forum June 2012

Overview of Luxottica Group

Luxottica Group overview 1 11 >8 mn Group Plants OneSight patients 130 45 >55 mn Countries Brands Manufactured frames 64,000 ~7,000 >60 mn People Stores Customers 3

50 years of excellence 2011 Strengthening Latam retail Acquisition of Oakley 2009 First step into retail in Latin America 2007 2006 Starting retail expansion in China 2004 Strengthening retail in North America: Cole National 2003 OPSM Acquisition of Ray-Ban 2001 Entry into sun retail: Sunglass Hut 2000 LISTING ON BORSA ITALIANA Acquisition of Persol 1999 Acquisition of Vogue 1998 Entering the MVC business in US: EyeMedStarting license agreements with the fashion industry 1995 Entry into optical retail: LensCrafters 1990 LISTING ON NYSE 1974 Entrance in wholesale distribution 1971 Launch of 1st collection of prescription eyewear1961 Producer of frames components 4

64,000 “Luxotticans” 35 57% 15% Languages Generation Y In emerging countries … here we are 5

The best brand portfolio in the industry A strong and diversified brand portfolio House brands License brands (1) (2) (1) Starting from 2012 (2) Starting from 2013 6

Leader in optical and sun retail A strong and diversified retail brand portfolio  Over 7,000 stores worldwide  Leading premium optical retailer in:  North America  Asia-Pacific  Latin America  Greater China Optical  Leading specialty premium sun retailer worldwide  Leading operator of leased optical departments in host stores in North America  One of the largest managed vision care Sun operators in the US, through EyeMed 7

Luxottica Social Innovation

Overview of the ProjectIn April 2011, Luxottica has launched the Zero Waste initiative with the aim tocreate a change and a transformation in the way the Company will conduct thebusiness in the next 50 years. Some of the project key objectives are: to transform Luxottica culture, building a new long term perspective on the sustainability of the business towards both the environment and the Company. to build a new culture of collaboration and innovation, preparing the ground for wider changes and dissemination of new approaches

The Zero Waste project: sponsorship  We must efficiently use the resources we have, reduce consumption where we can, and invest in areas that will create value for our company as well as help our planet.  The key to long-term success lies in the way we use, or waste, our resources.  It depends on everyone’s contribution to be truly successful

Social Innovation as “change agent”Within the Zero Waste project, one of the most significant element of change andtransformation introduced has been a collaborative social platform to share, discuss andrate innovative ideas and contribution. The “Lux Idea Lab” platform, based on a “crowdsourcing” approach, was introduced to a select number of innovators within the company with the specific aim to establish a culture and to fine tune a solution.

The workplace is changing Formal Organization Informal Organization • Hierarchy • Collaboration • Authority • Reputation and • Top-down trust • Command&Control • Bottom-up • Taylor and Ford • Engagement • Atom • Wenger • Bit & Knowledge

Lux Idea Lab: see next

Idea Lab project overview Mapping the Zero Waste Idea community Ideas generation evaluation November 2011 February 2012 April 2012 January 2012 April 2012 May 2012 Phase 1 Phase 2 Phase 3

Zero Waste Innovation Network Analysis

Innovation leaders – Explorers and Exploiters

ONA: mapping the community with new nodesTarget | Respondents New nodes Response rate: 66% 597 393 478 Nominations per respondent: 4 (average) Start date: Dec 13th End date: Jan 2nd 1075

ONA: Identifying the explorers network China by country US/Lux NAIndia/Aus US/Oakley Retail Operations/ Marketing R&D by business area Sales & Field US/Oakley

Affinity: identifying environmental impact & priorities Environmental practices Packaging & Factories (infrastructure) Transportation Packaging Factories Transportation Working environment Other Every node is a respondent (a total of 393). The colors represent here the first priority for each respondent. Clusters emerge whenever respondents have similar response patterns (i.e. they chose the same priorities in the same order). Four groups can be clearly seen: on one side Environmental Practice (soft factor) on the other Packaging & Transportation (hard factor). These two opposites are “linked” by a more “generic” priority such as Factories. The last group is less focused on a specific priority, although with a slight Working bias towards Working Environment. EnvironmentEnvironmental & Other Practice

Affinity: identifying environmental impact & priorities

Challenge identificationFirst challenge | February to MayHow can we improve our working environment, reducing waste (and consumption) and live better? Sub Challenge > How would you imagine your Zero Waste worldwide Day?Second challenge | May to JuneHow is it possible to reduce our shipments and material usage to save Km/miles, CO2, space, …? 21

Lux Idea Lab: what it is all about

Pilot group workshopsUS Italy Asia• February 15th • February 17th • February 15th• 5.30 PM CET • 2.00 PM CET • 9.00 AM CET

Lux Idea Lab homepage “A platform to extend and amplify employees participation in a company’s creative process”

How to post an ideaIdeaSpace are usedto group ideasThe title of your ideaTags that describe yourideaIdeas can be linkedbetween each others

The innovation process…socialized Ideas can be linked between each othersIdeas are postedon the community,get commentedand voted

Top contributors Your SCORE = Ideas + comments + votes 28

Comments tag cloud 29

Measuring “offline” initiatives effectiveness (partial results) Lunch & learn – Milan +7 new visitorsUnique visitors Ambassador – USA +8 new visitors F2F meetings – China +10 new visitors 30

Idea Evaluation and Action Plan 31

Bulletin & Results 32

Idea Lab – Key LearningStrengths Opportunities: Easy to use / Good User Experience Dedicated communication launch plan is Increased the connection and awareness fundamental for the launch of the program. F2F is theon Zero Waste themes. key! Duplicated ideas and the large number of ideas Collaboration and confrontation on a posted can be an issue.worldwide scale are made easier.Contamination of cultures, ideas and Positioning Idea Lab as a working tool to encourageexperiences is seen as a great strength of and empower people to use it during working hours.the environment. This, to avoid any perception of extra-job on the to-do list or waste-time for bored employees.

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Collaborative innovation in Luxottica: Idea.Lab Anna Li Vecchi

by SocialBizForum on Jun 05, 2012

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