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FedEx Innovation 2013

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  • 1. PROPRIETARY INFORMATION. FEDEX ©2013 | 1 HOW DOES FEDEX INNOVATION KEEP DRIVING FORWARD?
  • 2. 2 Aquick snapshot! 660 aircraft in operation Celebrating! 40years
 of service in 2013! Average Daily Volume 10million+ packages shipped daily! About FedEx 90,000 ground vehicles in service! Serving over 220! countries and territories! FY12Revenue $42.7billion! fedex.com 32million monthlyuniquevisitors! 300,000 team members worldwide!
  • 3. 3 FedEx was built on “game changing” innovation! Innovation powered by FedEx FedEx Operating Companies FedEx Regions FedEx Services FedEx Alliances FedEx Customers But as customer needs evolved, it was clear that we needed to create a full service dedicated innovation team to serve as resource for our entire enterprise About FedEx
  • 4. 4 How we view Innovation! des possible Both have varying levels of impact : Disruptive New to-the-world business opportunities Transformational Reframing of existing initiatives Commercial Creative Marketing, packaging and promotion Sustaining Incremental improvements to existing products Open Innovation = Open Invention + Open Realization + Open Commercialization Innovation = Invention + Realization + Commercialization About FedEx
  • 5. 5 TRENDS DRIVING THE NEED FOR INNOVATION
  • 6. 6 Trends The digital evolution continues to transform physical artifacts to digital services THEN NOW Amazon sells more e-books than print books 2 14% ! The amount of global digital information created & shared – from documents to pictures to tweets – grew 9x in five years to nearly 2 zettabytes in 2011.1 Projected mail volume 3 213B 2011 168B 2006 2020 150B
  • 7. 7 Trends Copy & Print Industry is transitioning from maturing to declining The Copy & Print Industry reached maturity in 2007, and revenues have dropped more than 21% since 2008.4 Consumers are increasingly favoring digital alternatives over printed materials. As a result, the copy and print industry has declined at an annualized rate of 5.5% in the last five years. MACRO DRIVERS INDUSTRY INSIGHTS QUICK PRINT INDUSTRY BECOMING OBSOLETE ONCE A SUBSTITUTE FOR QUICK PRINTING, HOME PRINTING MARKET IN SIGNIFICANT DECLINE DUE TO TECHNOLOGY ENTERPRISE ADOPTS CONSUMER TECHNOLOGY THE INCREASING DAILY RELIANCE ON MOBILE
  • 8. 8 Trends Brick & mortar still a relevant touch point of Google mobile searches have local intent 5 50% In a recent poll, 64% of consumers said they might be willing to pay a few dollars extra to receive retail goods faster, though for many it depends on the product. 8 LOCAL DISTRIBUTION THROUGH BRICK & MORTAR STORES A recently released report from BIA/Kelsey revealed total mobile ad spending is expected to reach $9.92 billion in 2016, up from $1.62 billion in 2011. The research firm said locally targeted mobile ads will make up 58% of all U.S. mobile ad spending by 2016, rising from 41% in 2011. 7 MOBILELOCALADSPENDRISING 7xbigger than e-commerce 6 Online to offline commerce is! Americans aged 18-64 surveyed online said they would rather make a purchase in-store (59%) than on their computer (31%) or devices (10%) 10 ACCESSTOTHEPHYSICALRETAIL STOREISIMPORTANT 59% $1.6B $9.9B 20162011 15.2% 20.8% 14.8% 14.8% 34.4% Unlikely Very Unlikely Very Likely Somewhat Likely Depends on Product
  • 9. 9 ABOUT FEDEX INNOVATION
  • 10. 10 We built our Innovation team with the intent that we could offer well rounded and complete solutions. Supporting team roles include: •  Research & Design •  IT •  Business Development •  Project Management •  Finance •  Marketing Amulti-disciplinary team to address many different types of problems About FedEx Innovation
  • 11. 11 We work for our internal partners offering a variety of services Strategy and Technology Research Design Thinking Prototyping Co-creation About FedEx Innovation
  • 12. 12 Our disciplined approach to innovation Evolve Strategy Innovation Missions Market Development "#$%&%'#!(! )*%+#! ,"&"),-.! '//',01#%02! &/)-"&! "&0)3*%&.! )+"#4)&! 5,)6"! 4%&-'$",! 4"$"*'/! %#&%+.0!(! %#0"#0! -'#-"/0&! -1&0'6",! 4%&-'$",2! -1&0'6",! $)*%4)7'#! -1&0'6",! -,")7'#! company building About FedEx Innovation
  • 13. 13 Strategy and Technology Research We experiment to gain hands-on experience with mobile devices, human interfaces, virtual reality, intelligent learning systems, social media, data analytics, and more. About FedEx Innovation
  • 14. 14 PROPRIETARY INFORMATION. FEDEX ©2013 | Leveraging Design Thinking to solve ambiguous problems Multi-discipline teams researching insights into what is desirable, possible and profitable. About FedEx Innovation
  • 15. 15 Prototyping to learn and shape We prototype to test multiple options and learn quickly what will scale going forward. Using the latest developments in a wide variety of tools and technologies we specifically look for potential applications that could enhance FedEx offerings for our customers. About FedEx Innovation
  • 16. 16 16 "#$%&'()*!81&%#"&&!9'4"*! +*,-#'()*! :&",&! "$,,-()*!;"-.#'*'+2! <,")0"&0!=//',01#%7"&! Design Thinking is executed through a design logic which balances user needs with what is technologically possible and a profitable business strategy to deliver sustained customer value and market opportunity. APPLYING DESIGN THINKING ENSURES HOLISTIC THINKING !>"4?@!A",$%-"&B!C'/2,%+.0!D!EFGHB!!! Balance Breakthrough Model
  • 17. 17 How others have leveraged co-creation Apps provide a runway for Apple to continue to grow its pile of cash Apple embraced co-creation generating over $1 billion for its App- Store partner-developers in two years, while overtaking Microsoft. 11 About FedEx Innovation
  • 18. 18 Starbucks taps into ideas from customers and turbocharged a turnaround. MyStarbucksIdea.com has welcomed more than 150,000 ideas from customers, leading to the implementation of 277 new innovations for Starbucks. 11 About FedEx Innovation How others have leveraged co-creation
  • 19. 19 SENSEAWARE CASE STUDY
  • 20. 20 About SenseAware Exploring new frontiers of innovation FedEx Innovation explored new territory with SenseAware – a platform that takes FedEx’s on time standards to a new level. SenseAware is a first-of-its-kind service that provides near real-time data about shipments, as well as the ability to share information collaboratively with customers. SenseAware Case Study
  • 21. 21 Developed a vision An iterative vision! Creating a vision doesn’t happen instantaneously. It is an evolving process that takes time, energy and the right people. Defining the future of SenseAware was no exception. SenseAware Case Study
  • 22. 22 Defined a market Shaping an emerging market SenseAware is on the leading edge of the emerging sensor-based logistics industry. FedEx Innovation has taken strides to understand and define the market and to establish a place for SenseAware. SenseAware Case Study
  • 23. 23 Created with customers Learning from early adopters Co-creation is a unique collaborative development process that pushes all parties to think differently and generate solutions as a group. SenseAware Case Study
  • 24. 24 Iterated on the offering Experiment, learn, scale By adopting a methodology of agile development, FedEx Innovation was able to quickly adapt and respond to the needs of its customers through short development sprints SenseAware Case Study
  • 25. 25 Demonstrated results Transitioning to the future Utilizing quality metrics, leveraging co- creation learnings and re-evaluating go-to- market strategies facilitates constant improvements and ensures that the SenseAware offering will meet the high standards of the FedEx brand. SenseAware Case Study
  • 26. 26 Framework and tools we used during the SenseAware co-creation process allowing us to adapt, scale and meet varying needs SenseAware Case Study
  • 27. 27 Q & A 9%-."**"!I,'-0',! >"4?@!A",$%-"&! J%,"-0',!'5!K##'$)7'#! !
  • 28. 28 APPENDIX
  • 29. 29 Sources 1  http://www.dmnews.com/consolidation-transforms-the-printing- industry-landscape/article/228894 2  http://www.guardian.co.uk/books/2012/aug/06/amazon-kindle- ebook-sales-overtake-print 3  Mary Meeker – 2012 Internet Trends M  .N/OPP0'/%-&B#276"&B-'6P0'/P,"5","#-"P76"&0'/%-&P',+)#%Q)7'#&P/P /'&0)*R&",$%-"P%#4"@B.06*S!! 5  http://pewinternet.org/Commentary/2012/February/Pew-Internet- Mobile.aspx 6  http://www.nytimes.com/2012/12/19/business/shopping-sites- open-brick-and-mortar-stores.html 12/19/12 7  http://www.screenwerk.com/2012/10/01/google-50-of-mobile- search-is-local/ 8  http://www.netnewscheck.com/article/22305/mobile-local-ad- spend-to-hit-58b-in-2016?utm_source=NetNewsCheck- rss&utm_medium=latest-news-feed&utm_campaign=latest-news- feed-Mobile-Local-Ad-Spend-To-Hit-5-8B-In-2016 9  http://streetfightmag.com/2013/01/08/street-fight-poll-consumers- may-pay-extra-for-same-day-delivery-but-it-depends/ GF  .N/OPPTTTB6),U"7#+-.),0&B-'6PT/P%#0",)-7$"PVW%#WGFW)6",%-)#&W /,"5",W&.'//%#+W%#W&0',"W0'W312%#+W'#*%#"WEXEMMP! GG  .N/OPPTTTBT"),"&6),0",B',+! GE  YZ"![,"!A6),0",!;.)#!9"O!'T!0'!:#*")&.!0."!I'T",!'5!C,'T4&!%#!]'1,! 81&%#"&&!^/)/",3)-U_!`I)/",3)-UaBY!!"#$%&'(%")*+,*!-,*."#-/,-*01#&* 2,)*3%4*/%*5&6,#71*/1,*8%4,-*%9*:-%4;7*<&*=%>-*?>7<&,77*@A#A,-B#(CD* @EFGHIJKILGIJFD)*?#--M*N<B,-/O*P%&*.A,(/%-)*?%%C7B!Z"3B!EX![/,B!EFGHB!!