Lux IdeaLab
Social 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: EyeMed

Starting 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 eyewear
1961        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 Project
In April 2011, Luxottica has launched the Zero Waste initiative with the aim to
create a change and a transformation in the way the Company will conduct the
business 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 and
transformation introduced has been a collaborative social platform to share, discuss and
rate 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 nodes


Target | 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 NA




India/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.
                             Environment
Environmental                  & Other
  Practice
Affinity: identifying environmental impact & priorities
Challenge identification


First 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 workshops




US                  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 idea

IdeaSpace are used
to group ideas



The title of your idea

Tags that describe your
idea




Ideas can be linked
between each others
The innovation process…socialized




                                    Ideas can be linked
                                    between each others




Ideas are posted
on the community,
get commented
and voted
Top contributors




         Your SCORE = Ideas + comments + votes

                                                 28
Comments tag cloud




                     29
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



                                                                                 30
Idea Evaluation and Action Plan




                                  31
Bulletin & Results




                     32
Idea Lab – Key Learning

Strengths                                    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 the
on 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 encourage
experiences 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.
Q&A

Collaborative innovation in Luxottica: Idea.Lab Anna Li Vecchi

  • 1.
  • 2.
  • 3.
    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
  • 4.
    50 years ofexcellence 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: EyeMed Starting 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 eyewear 1961 Producer of frames components 4
  • 5.
    64,000 “Luxotticans” 35 57% 15% Languages Generation Y In emerging countries … here we are 5
  • 6.
    The best brandportfolio in the industry A strong and diversified brand portfolio House brands License brands (1) (2) (1) Starting from 2012 (2) Starting from 2013 6
  • 7.
    Leader in opticaland 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
  • 8.
  • 9.
    Overview of theProject In April 2011, Luxottica has launched the Zero Waste initiative with the aim to create a change and a transformation in the way the Company will conduct the business 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
  • 10.
    The Zero Wasteproject: 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
  • 11.
    Social Innovation as“change agent” Within the Zero Waste project, one of the most significant element of change and transformation introduced has been a collaborative social platform to share, discuss and rate 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.
  • 12.
    The workplace ischanging Formal Organization Informal Organization • Hierarchy • Collaboration • Authority • Reputation and • Top-down trust • Command&Control • Bottom-up • Taylor and Ford • Engagement • Atom • Wenger • Bit & Knowledge
  • 13.
    Lux Idea Lab:see next
  • 14.
    Idea Lab projectoverview 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
  • 15.
    Zero Waste InnovationNetwork Analysis
  • 16.
    Innovation leaders –Explorers and Exploiters
  • 17.
    ONA: mapping thecommunity with new nodes Target | Respondents New nodes Response rate: 66% 597 393 478 Nominations per respondent: 4 (average) Start date: Dec 13th End date: Jan 2nd 1075
  • 18.
    ONA: Identifying theexplorers network China by country US/Lux NA India/Aus US/Oakley Retail Operations/ Marketing R&D by business area Sales & Field US/Oakley
  • 19.
    Affinity: identifying environmentalimpact & 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. Environment Environmental & Other Practice
  • 20.
  • 21.
    Challenge identification First 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
  • 22.
    Lux Idea Lab:what it is all about
  • 23.
    Pilot group workshops US Italy Asia • February 15th • February 17th • February 15th • 5.30 PM CET • 2.00 PM CET • 9.00 AM CET
  • 24.
    Lux Idea Labhomepage “A platform to extend and amplify employees participation in a company’s creative process”
  • 25.
    How to postan idea IdeaSpace are used to group ideas The title of your idea Tags that describe your idea Ideas can be linked between each others
  • 26.
    The innovation process…socialized Ideas can be linked between each others Ideas are posted on the community, get commented and voted
  • 27.
    Top contributors Your SCORE = Ideas + comments + votes 28
  • 28.
  • 29.
    Measuring “offline” initiativeseffectiveness (partial results) Lunch & learn – Milan +7 new visitors Unique visitors Ambassador – USA +8 new visitors F2F meetings – China +10 new visitors 30
  • 30.
    Idea Evaluation andAction Plan 31
  • 31.
  • 32.
    Idea Lab –Key Learning Strengths 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 the on 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 encourage experiences 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.
  • 33.

Editor's Notes

  • #10 This initiative seeks to unlock the innovation potential of larger group of people.It is the social evolution of the traditional "idea box” initiative, where the use of technology platforms deeply transforms its nature:Different forms of participation: these systems not only enhance the contribution of the proposed idea but also of the vote, comment or criticism of the ideaContamination: everybody can see proposals from colleagues and from an – at first – impractical proposal a more consistent initiative can grow over timeEmergency: most read, most commented or most popular ideas emerge and impose themselves on others, allowing the community to quickly see the selection process in placeCollective intelligence: if properly supported, the community can develop “by itself” the proposals using the intelligence within the systemFocus on people (and not just ideas): The most successful proposals bring with them a group of people who believe in the idea and that will take it forward once approved
  • #17 This initiative seeks to unlock the innovation potential of larger group of people.It is the social evolution of the traditional "idea box” initiative, where the use of technology platforms deeply transforms its nature:Different forms of participation: these systems not only enhance the contribution of the proposed idea but also of the vote, comment or criticism of the ideaContamination: everybody can see proposals from colleagues and from an – at first – impractical proposal a more consistent initiative can grow over timeEmergency: most read, most commented or most popular ideas emerge and impose themselves on others, allowing the community to quickly see the selection process in placeCollective intelligence: if properly supported, the community can develop “by itself” the proposals using the intelligence within the systemFocus on people (and not just ideas): The most successful proposals bring with them a group of people who believe in the idea and that will take it forward once approved