BOF AMERICAS 2014: VSP

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Jeff Ferreira-Pro joined VSP 2 years ago because he was unemployed and needed work.  He thought he was taking a job in a stable but boring insurance company.  It didn’t take him long to realize that VSP contained amazing potential to drive disruptive change into the eyewear and vision care industries.  This perception was driven by his previous career experience that included 20 years as software developer, project manager and change agent at Hewlett Packard followed by 4 years as community organizer in his home town of Folsom, California (yes, the home of Johnny Cash’s Folsom Prison Blues), where he leads the successful effort to revitalize Folsom’s Historic District. 
 
Jeff discovered that there were other like-minded people at VSP and helped form the team that launched The SHOP, VSP’s Innovation Lab that opened in December of 2012.

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  • Presentation created for BOF gathering in Detroit in early June

    Opportunity to share best practices with other innovation companies also using the Brightidea tool that is the engine behind our Idea Bank
  • Presentation created for BOF gathering in Detroit in early June

    Opportunity to share best practices with other innovation companies also using the Brightidea tool that is the engine behind our Idea Bank
  • Who we are
    Our first experiment
    Where we think we’re going
    How we think we can get there
    How you can help
  • Innovator’s Dilemma – 1997 Clayton Christensen
    Companies that are industry leaders are vulnerable to disruption
    Sustaining current business takes focus away from future opportunities
    Certainty of short-term gains outweighs less certain future wins
    By the time disruption is recognized, too late to respond
    Examples
    Digital watch
    Blackberry/Iphone
    Steve Jobs & Steve Wozniak ideas rejected by HP
    US Steel industry
    Eyewear/Vision Care industry ripe for disruption
    Retail sales
    Mobile refraction
    3D printing of eyewear
    Overall changes in healthcare
    VSP culture good at running the business, can react to innovation as distraction
    Goal is not to disrupt RTB – remains necessary to pay the bills and fund innovation

    Why downtown?
    Away from corporate environment/run-the-business mindset
    Partnership with Hacker Lab – midtown innovation hub
    Recruiting message
    Not just insurance company
    Sacramento not just a government town
  • Execs
    CEO and 5 Company Presidents all support The SHOP

    Grass roots
    Employees recognize innovators dilemma threat and are excited by The SHOP

    Silos
    Silos are a necessary and normal part of any large business
    People need to focus but then miss out on collective wisdom from other silos

    Exec collaboration
    Shared desire to collaborate doesn’t filter down thru organization effectively

    Crowd sourcing
    Harvest power of the internet – e.g. Kickstarter, Arab Spring
    Allows for larger group than possible in face-to-face meetings
  • One challenge question – retail marketing
    Prototype experiment – like many SHOP efforts, successful failure because we learned a lot from the effort
  • Idea Collection
    Flood of ideas – mostly unrelated to retail marketing
    Many incremental improvement ideas
    Fewer disruptive ideas

    Idea Selection
    Voting process didn’t reflect business values
    Scorecard exercise - no clear definition for a “good idea”

    Idea Action
    Limited SHOP resources to act on these ideas
    No handoff strategy for completed projects
    No clear way to keep participants engaged

    Evidence forced us to shut down the Idea Bank until we had a better model
  • Relaunch gives people multiple topic areas in which to submit ideas
    Selection of 5 categories based on identified business trends that could disrupt vision care and/or eyewear industries
    6th category is catch-all for ideas that don’t fit any of our defined topics
    These might be the most disruptive of all
  • Google’s announcement of Glass prompted lots of publicity and VC investment in wearable technology
    Projected 2 Billion dollar market in 4 years
    We don’t see VSP as a new entrant in this field
    The first wearables other than clothing
    Glasses – were invented in 1286
    The pocket watch in 1510
    The wristwatch not until 1868

    This is relevant to us because:
    We’ve been in the wearables business since the 1950’s
    With 64 million members we’re already a major player
    As a healthcare company, we’re looking at importance of wearable Biosensors
    As a fashion company, we’re looking at who will wear them and why
  • 3D Printable eyewear and atomically precise manufacturing are obvious potential disruptors to the manufacturing of glasses
    Funky new products can also disrupt our traditional supply chain

    Lots of process improvement opportunities
    RFID chip to help find lab trays
    Not disruptive but valuable from RTB perspective
    Opportunity to promote culture change – enable innovation within LOB’s
  • Traditional healthcare is reactive – I go to the doctor only when I’m sick or injured
    Except eyecare - Eye exams offer more than just a new prescription
    Early detection of health issues – e.g. diabetes & hypertension
    Opportunity for OD’s with projected shortage of Primary Care Physicians

    mHealth - healthcare advances outside the infrastructure of western medicine

    Wearable biosensors – growing market for lifestyle choices and early detection

    Data Analytics – what can we do with data from 64 million members?
  • 64 Million members with almost no visibility
    Many of our own members don’t remember our name
    Result of our roots as a not-for-profit
    Nearly 1 million pairs of glasses given away yet now must compete with retail businesses aggressively marketing their philanthropy
    People think we’re just a stodgy insurance company
    Don’t know about our healthcare, manufacturing, software and fashion perspectives
    10 fold increase in hits on our employment website the day after our announced partnership with Google

  • Pipeline goal is to establish sustainable and consistent flow of new products & services from ideas
    Ideas from anywhere
    Employees across all parts of VSP Global
    SHOP team focusing on industry trends leading to VSP disruption ideas
    Scorecard team uses crowd sourcing capabilities of Idea Bank to harvest collective wisdom of VSP thought leaders
    Build scorecard criteria using Idea Bank Challenge
    SHOP focus on disruptive ideas
    Other complex ideas may go to Proof of Concept team

    Resources and sponsors:
    Executive support for funding and empowerment
    Shark tank – empowerment for corporate innovators
    Rotation program – culture change allows anyone in company to have innovation experience
    SHOP projects = fail fast startup model

    Project handoff may require organization change to bring idea to market

    This is all an experiment – help us learn and pivot as necessary
  • Thought leaders excited by scorecard role
    Happy to escape silo mindset
    Cross-organizational collaboration sprouting across silos
    Excited to participate in Shark Tank
    Look for passionate supporters from unlikely sources
    HR, Finance, Legal – all eager to demonstrate support for innovation
    Cross org resources often left out of strategic planning
    Target middle managers before senior leadership
    People inspired when invited directly rather than assigned by their boss
    Success requires support from:
    Top down
    Resource commitments won’t happen unless supported from above
    Bottom up
    Innovation requires energy from those hungry to make a difference
    Middle out
    Shark tank as opposed to defender of political turf
  • Dashboard benefits
    Share in our successes
    Learn from project failures
    Recognize key contributors
    Sustain organizational support for innovation efforts
    Demonstrate value to VSP leadership – our VC funding source

  • Challenges not yet answered
    Looking for best practices from other BOF participants
  • BOF AMERICAS 2014: VSP

    1. 1. facebook.com/brightideabof
    2. 2. facebook.com/brightideabof VSP Global Innovation Pipeline Jeff Ferreira-Pro Idea Curator The SHOP @ VSP
    3. 3. facebook.com/brightideabof 1. Introducing The SHOP @ VSP Global 2. Idea Bank [1st Prototype & The Pivot] 3. The Shift to Focused Innovation Opportunity Areas 4. Working Innovation Pipeline Process Model 5. Call to Action Agenda
    4. 4. facebook.com/brightideabof “The Innovator’s Dilemma” Catalyst for culture change within VSP Why downtown Sacramento? The SHOP @ VSP Global
    5. 5. facebook.com/brightideabof • Senior Executive support for The SHOP • Grass-roots support to try new ideas • Run-the-business silos inhibit innovation • Executive level collaboration is not enough • Crowd sourcing offers collaboration at all levels The SHOP @ VSP Global
    6. 6. facebook.com/brightideabof Idea Bank The First Prototype
    7. 7. facebook.com/brightideabof Idea Bank Launched last summer with one question: What can VSP Global do to become more of a leader in the growing retail market for eyewear? Idea Bank [The First Prototype]
    8. 8. facebook.com/brightideabof 1. Idea Collection 2. Idea Selection 3. Idea Action Idea Bank Lessons Learned
    9. 9. facebook.com/brightideabof The Pivot Shift to Focused Opportunity Areas
    10. 10. facebook.com/brightideabof Idea Bank [The Relaunch May 2014]
    11. 11. facebook.com/brightideabof $2.03 billion market by 2018 - marketsandmarkets.com Wearable Technology
    12. 12. facebook.com/brightideabof Alternative Manufacturing
    13. 13. facebook.com/brightideabof Health Assurance
    14. 14. facebook.com/brightideabof Marketing
    15. 15. facebook.com/brightideabof Idea Bank Disruptive Ideas Run the Business ideas Corporate Projects Difficult RTB Ideas Corporate Projects Managing an Innovation Pipeline Progress to date Top Down Executive Sponsors Bottom Up Rotation Program Middle Out Shark Tank Wearable Technology Alternative Manufacturing Health Assurance Marketing Process Innovation Other Clever Ideas Cross - Organizational Scorecard Team POC Projects SHOP Projects Viable Prototypes Released Products & Services Innovation Supporters
    16. 16. facebook.com/brightideabof 1. Inspire middle management 2. Passionate supporters can come from unlikely sources New Innovation Pipeline Learnings (so far)
    17. 17. facebook.com/brightideabof • Idea Bank Dashboard to track: 1. Active SHOP Projects 2. Released Products and Services 3. Project failures Reporting our Results
    18. 18. facebook.com/brightideabof • Metrics – ROI / Business Value Added / Intangible Value / What changed? • Resources - Innovation vs. Run-the-Business • Buy-in - Sustaining support – top down/bottom up/middle out • Involvement - Size of Scorecard Team Help Needed from BOF Members
    19. 19. facebook.com/brightideabof The SHOP at VSP Global 1630 I Street Sacramento, CA 95814 Jeff Ferreira-Pro Idea Curator jefffe2@vsp.com 916-792-9438 Contact Us

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