Intervento di Sergio Farrioli (Corporate Social Responsability e “Zero Waste Project“ Director di Luxottica Group) al Workshop: Crescita e nuove sfide di mercato: 'Social Enterprise' come modello di successo per l'impresa competitiva del 18 ottobre 2012

1. “Idea Lab”
Collaborative
innovation
Altavilla Vicentina October 18th 2012

2. 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
* Data refers to 2011 2

3. 50 years of excellence
2011 Strengthening
A first-class brand portfolio 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: EyeMed
Starting license agreements
with the fashion industry 1995 Entry into optical retail:
LensCrafters
1990 LISTING ON NYSE
1974 Entrance in wholesale distribution
A vertically
1971 Launch of 1st collection of prescription eyewear integrated
1961 Producer of frames components business model
3

4. 64,000 “Luxotticans”
35 57% 15%
Languages Generation Y In emerging
countries
… here we are
4

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
5

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
6

8. Social Innovation as a
change agent

9. Lux Idea Lab: what it is all about

10. Idea Lab and launched Challenges
Working environment : Your Voice: (sede Milano)
How can we improve our Events: Help us to Raccogliere spunti e idee
working environment realize your Zero per costruire un luogo di
reducing waste and Waste Day lavoro che sia ancora piu
consumption and live coinvolgente e bello da
better? vivere

11. Waste Day
•Reduce shipments: How is possibil
our shipments and material usage to
km/miles, co2, space..?
Slide che faccia capire cosa è e come funziona
•Idee Corporate - Your Voice

12. Social Innovation as a change agent
• Engage people on current business needs (especially Y generation)
• Cross geographies, organizations, hierarchy
People
management
Project
management

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

14. Social Innovation as a change agent
• Engage people on current business needs (especially Y generation)
• Cross hierarchy, geographies, organizations
• Contaminate cultures, ideas and experiences
People • Delivery internal communications and training
management
Project
management

15. Delivery internal communications and training

16. Social Innovation as a change agent
• Engage people on current business needs (especially Y generation)
• Cross hierarchy, geographies, organizations
• Contaminate cultures, ideas and experiences
People • Delivery internal communications and training
management
• Mapping the community:
• Define priorities and network organization
• Find key peoples on a specific theme and new talent in the organization
• Find not connected people with the topic
Project
management

17. “Where Zero Waste should work?”
Mapping the community: 1st Priority
Environmental practices
Packaging & Factories (infrastructure)
Transportation
Factories Packaging
Transportation
Working environment
Other
• Define priorities and network
organization
• Find key peoples on a specific
theme and new talent in the
organization
• Find not connected people with
Working
the topic (specific training to be
Environment
Environmental & Other evaluated)
Practice

18. “Where Zero Waste should work?”
Mapping the community: Business Area
AFC & Legal
HR/Internal
Packaging & Communication
Transportation
Factories IT
Marketing
Operations
Other
Product
Development/Design
Retail Operation
Sales&Field
Supply Chain &
Logistics
• Define priorities and network
organization
• Find key peoples on a specific
theme and new talent in the
organization
• Find not connected people with
Working the topic (specific training to be
Environment
Environmental & Other evaluated)
Practice

19. “Where Zero Waste should work?”
Mapping the community: Business Area
Packaging & Italian
Transportation
Factories
English
• Define priorities and network
organization
• Find key peoples on a specific
theme and new talent in the
organization
• Find not connected people with
Working the topic (specific training to be
Environment
Environmental & Other evaluated)
Practice

20. Social Innovation as a change agent
• Engage people on current business needs (especially Y generation)
• Cross hierarchy, geographies, organizations
• Contaminate cultures, ideas and experiences
• Delivery internal communications and training
People
management • Mapping the community:
• Define priorities and network organization
• Find key peoples on a specific theme and new talent in the organization
• Find not connected people with the topic
• Understand relations within the Company
Project
management

21. Leaders network visualization: business area
Operations
Sales & Field
AFC & Legal
Marketing
Retail Operations
HR/Internal
Communication
Product Dev / Design
IT
Supply Chain
Retail
Operations/ Marketing
R&D
Sales & Field
US/Oakley
• Understand relation within the
Company

22. Social Innovation as a change agent
• Engage people on current business needs (especially Y generation)
• Cross hierarchy, geographies, organizations
• Contaminate cultures, ideas and experiences
• Delivery internal communications and training
People
management • Mapping the community:
• Define priorities and network organization
• Find key peoples on a specific theme and new talent in the organization
• Find not connected people with the topic
• Understand relations within the Company
• Generate relevant, out of the box, shared and usable ideas
Project
management

23. Generate relevant, out of the box, shared and usable
ideas
Idea Evaluation Action Plan

24. Social Innovation as a change agent
• Engage people on current business needs (expecially Y generation)
• Cross hierarchy, geographies, organizations
• Contaminate cultures, ideas and experiences
People • Delivery internal communications and training
management
• Define priorities and network organization
• Find key peoples on a specific theme and new talent in the organization
• Find not connected people with the topic (specific training to be evaluated)
• Understand relations within the Company
• Generate relevant, out of the box, shared and usable ideas
Project
management • Know How in the Company
• Speed the people connection on a specific tasks

25. Bulletin & Results
25

26. Thank you!

27. Allegati

28. Idea Lab project overview
Mapping the Zero Waste Idea
community Ideas generation evaluation
2-3 month 4-6 weeks 2-4 weeks
Phase 1 Phase 2 Phase 3

30. Survey questions

31. Survey questions

32. Key People: Innovation leaders
Explorers Exploiters
Leaders Leaders
(Most nominated) (Most nominated)
Paolo Pezzutto Paolo Pezzutto
Fabio Borsoi Fabio Borsoi
Federico Gianluigi Buffa Federico Gianluigi Buffa
Liesl Holtz Paolo Sibillon
Massimo Vian Mario Mollo
Mario Mollo Liesl Holtz
Andrea Gallina Jr Massimiliano Mutinelli
Daniell Luo Cocco Michele
Rosanna Spagnol Rosanna Spagnol
Stocca Simone Andrea Gallina Jr
Marco Coppa Daniell Luo
Anna Li Vecchi Tiziano Capretta
Alessandro Muffato Sergio Farioli
Paolo Sibillon Giorgio Mattetti
Mark Weikel Osvaldo Cadorin

33. Pilot group workshops
US Italy Asia
•February 15th •February 17th •February 15th
•5.30 PM CET •2.00 PM CET •9.00 AM CET

34. Measuring “offline” initiatives effectiveness
(partial results)
Lunch & learn – Milan
+7 new visitors
Unique visitors
Ambassador – USA
+8 new visitors
F2F meetings – China
+10 new visitors
34

35. Key statistics
Target | Respondents New nodes
Response rate: 66%
Nominations per respondent: 4 (average)
Start date: Dec 13th
End date: Jan 2nd
597 393
478 • Corporate 140
• Team Retail, and Wholesale 107
• Oakley 50
• Operations ITA 147
597 • Operations China 40
• Fresh Graduates
China Operations 30
1075 Milan 35
ROW 40
Response rate by role Response rate country
Weekly
meeting
0% 50% 100% 0% 50% 100%
Respondents
Non-respondents

36. Affinity map priorities
The analysis for the
selection of the
challenge was based
on the identification of
priorities (not
preceived impact), as
a priority usually is a
more positive concept
(there is an action
behind a priority)
As respondents had to
choose 4 out of 11
priorities, this also
allows us to better
differentiate
people(i.e. understand
their affinities).
The choice of the
challenge will
therefore fall on the
Top 5.

37. Leaders share of Interactions:
Who have voted who
5%-25%
25%-50%
Region Business area
50%-100%
Product Development/Design
HR/Internal Communication
Luxottica N ord & South America
Supply Chain & Logistics
Luxottica ITA (prod/corporate)
Luxottica Rest of The World
Retail O perations
AFC & Legal
Sales & Field
O perations
Marketing
Luxottica Europe
Luxottica China
O ther
IT
AFC & Legal # # # # # # # # # #
O akley
HR/Internal Communication # # # # # # # # # #
IT # # # # # # # # # #
Marketing # # # # # # # # # #
Luxottica ITA (prod/corporate) # # # # # # Operations # # # # # # # # # #
Luxottica China # # # # # # Other # # # # # # # # # #
Luxottica Europe # # # # # # Product Development/Design # # # # # # # # # #
Luxottica Nord & South America # # # # # # Retail Operations # # # # # # # # # #
Luxottica Rest of The World # # # # # # Sales & Field # # # # # # # # # #
Oakley # # # # # # Supply Chain & Logistics # # # # # # # # # #
SILOS SEEM TO BE MORE PRESENT AT
COMPANY/COUNTRY LEVEL. OPPORTUNITY TO SOME FUNCTIONAL SILOS START TO APPEAR.
DRILL DOWN.