Summer 2011

	
  


	
     	
           1	
  
Table of Con t en t s 	
  
Meet	
  The	
  Team:........................................................................................................................3	
  
Project	
  Approach .....................................................................................................................5	
  
Appendix	
  A:	
  Supply	
  Chain	
  Website	
  Overview................................................................6	
  
Appendix	
  B:	
  External	
  Supply	
  Chain	
  Case	
  Studies..........................................................8	
  
  More	
  Innovation	
  Around	
  The	
  Marketplace: ............................................................................ 9	
  
  Manufacturing	
  Firm	
  Innovation	
  Trends:................................................................................10	
  
Appendix	
  C:	
  internal	
  Supply	
  Chain	
  failure	
  (2001-­02).............................................. 11	
  
Appendix	
  D:	
  IDEO	
  –	
  innovation	
  consulting	
  co.	
  –	
  Case	
  Study .................................. 12	
  
  Innovation	
  the	
  IDEO	
  Way.............................................................................................................12	
  
  Prototyping	
  the	
  IDEO	
  Way...........................................................................................................13	
  
Appendix	
  E:	
  Nike	
  Zoo	
  innovation	
  insight ..................................................................... 13	
  
Appendix	
  F:	
  Rotational	
  Development	
  Program ......................................................... 14	
  
Appendix	
  G:	
  Offsite	
  Plan	
  Example................................................................................... 14	
  
Appendix	
  G:	
  Your	
  New	
  Digital	
  Roster ............................................................................ 15	
  
Digital	
  Scavenger	
  Hunt ....................................................................................................... 16	
  
  Task	
  1:	
  Twitter ................................................................................................................................17	
  
  Task	
  2:	
  Google+ ...............................................................................................................................17	
  
  Task	
  3:	
  Google	
  Reader...................................................................................................................18	
  
  Task	
  4:	
  GroupMe .............................................................................................................................19	
  
  Task	
  5:	
  Tumblr ................................................................................................................................19	
  
  Other	
  Digital	
  Tools .........................................................................................................................20	
  
  Stay	
  in	
  Touch!...................................................................................................................................20	
  




	
                                                                             	
                                                                          2	
  
 


Meet The Team:	
  
	
  
Evan	
  Baechler	
  –	
  Baechler@uoregon.edu	
  
	
  
                            SCHOOL:	
  University	
  of	
  Oregon,	
  BA	
  Sports	
  Business	
  
                            GRADUATION	
  DATE:	
  June	
  2012	
  
                            	
  
                            DEPARTMENT:	
  Global	
  Digital	
  	
  
                            	
  	
  
                            FAVORITE	
  SPORT:	
  Soccer,	
  Lacrosse	
  
                            INTERESTS/HOBBIES:	
  Drums,	
  digital	
  art,	
  travel,	
  barbecuing	
  
                            FAVORITE	
  NIKE	
  PRODUCT:	
  Airforce	
  1	
  Mid	
  (all	
  black)	
  
                            	
  
                            	
  
                            	
  
	
  
Tierney	
  O’Rourke	
  –	
  torourke91@gmail.com	
  
                            	
  
                            SCHOOL:	
  Stanford	
  University,	
  BA	
  American	
  studies,	
  Human	
  Biology	
  
                            GRADUATION	
  DATE:	
  June	
  2013	
  
                            	
  
                            DEPARTMENT:	
  Brand	
  Design	
  -­‐	
  Writing	
  
                            	
  	
  
                            FAVORITE	
  SPORT:	
  Crew	
  
                            INTERESTS/HOBBIES:	
  Rowing,	
  running,	
  hiking,	
  baking	
  
                            FAVORITE	
  NIKE	
  PRODUCT:	
  Tempo	
  running	
  shorts	
  
                            	
  
                            	
  
                            	
  
	
  
Rory	
  Blanche	
  –	
  gotair@charter.net	
  
	
  
                            SCHOOL:	
  W.	
  Washington	
  Univ,	
  BS	
  Manufacturing	
  Engineering	
  Tech.	
  
                            GRADUATION	
  DATE:	
  June	
  2012	
  
                            	
  
                            TITLE:	
  IHM	
  -­‐	
  Design	
  Engineering	
  
                            	
  	
  
                            FAVORITE	
  SPORT:	
  Basketball	
  
                            INTERESTS/HOBBIES:	
  Snowboarding,	
  mountain	
  biking,	
  sports	
  equip.	
  
                            FAVORITE	
  NIKE	
  PRODUCT:	
  Huarache	
  2K4,	
  Jordan	
  XI,	
  Hyperdunk	
  
                            	
  


	
                                                       	
                                                      3	
  
Cydney	
  Ross	
  –	
  cydney.ross@duke.edu	
  
                                  	
  
                                  SCHOOL:	
  Duke	
  University,	
  BA	
  Public	
  Policy	
  
                                  GRADUATION	
  DATE:	
  May	
  2012	
  	
  
                                  	
  
                                  DEPARTMENT:	
  Olympic	
  Sports	
  Marketing	
  
                                  	
  
                                  FAVORITE	
  SPORT:	
  Track	
  and	
  college	
  Basketball	
  	
  
                                  INTERESTS/HOBBIES:	
  Running,	
  hanging	
  with	
  friends,	
  reality	
  TV	
  	
  
                                  FAVORITE	
  NIKE	
  PRODUCT:	
  Nike	
  Pro	
  Spandex,	
  Nike	
  Free	
  
                                                    	
  
	
  
Marika	
  Zumbro	
  –	
  mzumbro@gmail.com	
  
                                                 	
  
                               SCHOOL:	
  Harvard	
  University,	
  BA	
  Psychology	
  
                               GRADUATION	
  DATE:	
  May	
  2012	
  
                               	
  	
  
                               DEPARTMENT:	
  IT	
  Service	
  Delivery	
  
                               	
  
                               FAVORITE	
  SPORT:	
  Softball	
  
                               INTERESTS/HOBBIES:	
  Sports,	
  movies,	
  and	
  dance	
  
                               FAVORITE	
  NIKE	
  PRODUCT:	
  Shoes	
  
                               	
  	
  	
  
                               	
  
Tanner	
  Gardner	
  –	
  tgardner@mba2012.hbs.edu	
  
                                  	
  
                                  SCHOOL:	
  Harvard	
  Business	
  School,	
  MBA	
  	
  
                                  GRADUATION	
  DATE:	
  June	
  2012	
  
                                  	
  
                                  DEPARTMENT:	
  Strategic	
  Planning	
  Intern	
  	
  
                                  	
  	
  
                                  FAVORITE	
  SPORT:	
  Wrestling	
  
                                  INTERESTS/HOBBIES:	
  Running,	
  golfing,	
  wrestling,	
  traveling	
  
                                  FAVORITE	
  NIKE	
  PRODUCT:	
  Beijing	
  Wrestling	
  Shoes	
  
                                  	
  
                                  	
  
Bree	
  McArdle	
  –	
  bm07d@fsu.edu	
  	
  
                            	
  
                                 	
  
                            SCHOOL:	
  Florida	
  State	
  University,	
  BS	
  Business	
  MKTG	
  &	
  HR	
  MGMT	
  
                                 	
  
                            GRADUATION	
  DATE:	
  Spring	
  2011	
  
                                 	
  
                            	
  
                                 	
  
                            DEPARTMENT:	
  Retail	
  Brand	
  Presentation	
  	
  
                                 	
  
                            	
  	
  
                                 	
  
                            FAVORITE	
  SPORT:	
  Track	
  
                                 	
  
                            INTERESTS/HOBBIES:	
  soccer,	
  rugby,	
  triathlon,	
  going	
  to	
  the	
  beach	
  
                            FAVORITE	
  NIKE	
  PRODUCT:	
  Nike	
  racing	
  flats	
  
	
                          	
                               	
                                                          4	
  
Project Approach
Overview	
  of	
  the	
  Problem	
  
Business	
  Problem:	
  Lack	
  of	
  existing	
  structure,	
  framework	
  in	
  approach	
  to	
  innovation	
  
within	
  Supply	
  Chain	
  /	
  Operations	
  organization.	
  This	
  results	
  in	
  being	
  opportunistic	
  and	
  
reactive	
  to	
  best	
  practices	
  and	
  trends,	
  rather	
  than	
  being	
  the	
  “first	
  in	
  market	
  –	
  or	
  trend-­‐
setter”	
  as	
  it	
  relates	
  to	
  supply	
  chain	
  development	
  
	
  
Provide	
  any	
  more	
  details	
  based	
  on	
  interview	
  with	
  Nikhil	
  /	
  Deb	
  /	
  others	
  on	
  team.	
  
	
  
3	
  Sub-­‐groups:	
  
	
  	
  
Current	
  State	
  of	
  the	
  Supply	
  Chain	
  Organization,	
  focusing	
  on	
  innovation:	
  	
  
Bree	
  and	
  Tanner	
  
         • Overview	
  of	
  dept	
  (mission,	
  organization,	
  supply	
  chain	
  flow	
  chart,	
  etc.)	
  
         • Current	
  process	
  for	
  innovation	
  
         • Description	
  of	
  any	
  previous	
  efforts	
  to	
  improve	
  the	
  innovation	
  process	
  
	
  
External	
  Benchmarking	
  innovation:	
  	
  
Cydney	
  and	
  Mari	
  
         • Identify	
  2-­‐3	
  companies	
  that	
  have	
  strong	
  innovation	
  organizations	
  
                  o Look	
  at	
  a	
  possible	
  Forbes	
  list	
  (100	
  most	
  innovative	
  companies)	
  
                  o Google	
  
         • Complete	
  a	
  small	
  case	
  study	
  on	
  each	
  of	
  these	
  organizations	
  documenting	
  best	
  
            practices	
  and	
  areas	
  that	
  may	
  not	
  work	
  so	
  well	
  
         • Could	
  supplement	
  this	
  with	
  a	
  small	
  amount	
  of	
  academic	
  research	
  
                  o Lots	
  of	
  academic	
  reviews/research,	
  etc.	
  on	
  Ideo	
  
	
  
Internal	
  Benchmarking	
  innovation:	
  
Evan,	
  Rory,	
  Tierney	
  
         • Identify	
  2-­‐3	
  departments	
  at	
  NIKE	
  with	
  strong	
  innovation	
  processes	
  
                  o Innovation	
  Kitchen	
  (Tierney)	
  
                              Aaron	
  Cooper,	
  Innovation	
  Design	
  Lead,	
  Pantry	
  
                              Intern	
  in	
  Innovation	
  Kitchen/Pantry:	
  Anthony	
  DeRothschild	
  
                              Dave	
  Schenone,	
  Innovation	
  Kitchen,	
  customization,	
  local	
  for	
  local	
  
                  o Brand	
  Innovations	
  (Rory)	
  
                              Byron	
  Merritt	
  (asst:	
  Jolene	
  Driscoll)	
  
                              Jeff	
  Cha	
  
                  o IHM	
  (Rory)	
  
                  o Knit	
  Cave	
  
                  o Supply	
  Chain	
  (Rory)	
  
                  o Sharla	
  Settlemier,	
  Senior	
  Director	
  of	
  Sustainable	
  Manuafcturing	
  
                  o Digital	
  (Evan)	
  
                              Jesse	
  Stollak:	
  Director	
  


	
                                                                  	
                                                                 5	
  
•   Complete	
  a	
  small	
  case	
  study	
  on	
  each	
  of	
  these	
  departments	
  documenting	
  best	
  
           practices	
  and	
  areas	
  that	
  may	
  not	
  work	
  so	
  well	
  (based	
  on	
  interviews	
  with	
  folks	
  in	
  
           these	
  organizations	
  and	
  also	
  any	
  documents	
  they	
  may	
  have	
  on	
  innovation	
  
	
  
Current	
  Position	
  vs.	
  Benchmarks	
  
Show	
  how	
  the	
  Supply	
  Chain	
  organization’s	
  innovation	
  process	
  compares	
  to	
  that	
  of	
  
others	
  top	
  innovation	
  organization	
  and	
  departments	
  at	
  NIKE	
  
	
  
Go-­‐forward	
  strategic	
  options	
  and	
  recommendations	
  
     • Based	
  on	
  benchmarking,	
  layout	
  2-­‐4	
  feasible	
  go-­‐forward	
  options	
  for	
  an	
  innovation	
  
          frameworks	
  within	
  supply	
  chain	
  
     • Potentially	
  lay	
  out	
  some	
  additional	
  ‘stretch’	
  ideas	
  that	
  may	
  not	
  be	
  feasible	
  now	
  
          but	
  in	
  the	
  future	
  
     • Recommend	
  one	
  specific	
  option	
  
	
  
Tactics	
  and	
  challenges	
  to	
  achieving	
  recommendation	
  
     • Layout	
  some	
  key	
  tactics	
  on	
  how	
  the	
  organization	
  can	
  get	
  from	
  where	
  it	
  is	
  today	
  
          to	
  the	
  recommended	
  future	
  state	
  
     • Identify	
  key	
  risks	
  to	
  achieving	
  the	
  recommendation	
  and	
  propose	
  ideas	
  to	
  
          mitigate	
  those	
  risks	
  


Appendix A: Supply Chain Website Overview
	
  
Basic	
  and	
  Shortened	
  Nike	
  Supply	
  Chain	
  Information	
  on	
  Nike	
  Zero:	
  
(http://zero.nike.com/supply_chain/index.html)	
  
	
  
At	
  its	
  core,	
  supply	
  chain	
  =	
  deliver	
  in	
  full	
  on	
  time	
  with	
  minimal	
  cost	
  and	
  inventory.	
  	
  A	
  
simple	
  concept	
  but	
  one	
  we	
  must	
  execute	
  across	
  the	
  globe	
  in	
  over	
  160	
  countries,	
  with	
  
650,000+	
  SKUs,	
  from	
  1000	
  factories,	
  in	
  100,000+	
  stores.	
  	
  Our	
  supply	
  chain	
  is	
  a	
  complex	
  
network	
  of	
  people,	
  products,	
  partners	
  (suppliers,	
  customers),	
  physical	
  locations	
  
(factories,	
  distribution	
  centers,	
  stores),	
  and	
  information	
  systems.	
  	
  
	
  
Global	
  Network:	
  
We	
  source	
  in	
  53	
  countries	
  and	
  deliver	
  products	
  in	
  over	
  160	
  countries	
  around	
  the	
  globe.	
  
To	
  do	
  that	
  there	
  are	
  core	
  activities	
  in	
  the	
  supply	
  chain:	
  Plan-­‐Design-­‐Source-­‐Develop-­‐	
  
Forecast-­‐Sell	
  in-­‐Buy-­‐Make-­‐Allocate-­‐Deliver-­‐Sell	
  Through-­‐	
  Clean	
  up.	
  
	
  
Strategic	
  Plan	
  
Supply	
  Chain’s	
  objective	
  is	
  to	
  win	
  at	
  the	
  moment	
  of	
  truth:	
  right	
  product,	
  right	
  place,	
  
right	
  time.	
  
	
  
Strategic	
  Priorities:	
  



	
                                                                     	
                                                                    6	
  
-­‐Serve	
  marketplace	
  transformation;	
  lead	
  with	
  Direct-­‐	
  to	
  Consumer.	
  
-­‐Deliver	
  category	
  offense	
  with	
  precision,	
  speed	
  and	
  flexibility.	
  
-­‐Embed	
  multiple	
  business	
  models	
  in	
  our	
  DNA-­‐	
  Always	
  available	
  first.	
  
-­‐Perfect	
  end	
  to	
  end	
  “value	
  chain”	
  planning	
  and	
  execution.	
  
-­‐Unleash	
  the	
  power	
  of	
  the	
  portfolio-­‐	
  leverage	
  to	
  accelerate	
  growth.	
  
(Each	
  of	
  these	
  priorities	
  are	
  elaborated	
  on	
  the	
  website	
  with	
  statistics	
  included).	
  
	
  
Foundation	
  of	
  Priorities	
  
-­‐Drive	
  execution	
  discipline	
  and	
  accelerate	
  continuous	
  improvement.	
  
-­‐Develop	
  and	
  inspire	
  diverse,	
  high-­‐performing	
  teams	
  
-­‐Innovate	
  for	
  a	
  better	
  supply	
  chain,	
  and	
  a	
  better	
  world	
  
	
  
On	
  the	
  website	
  under	
  Nike	
  Corporate	
  Strategy	
  there	
  is	
  a	
  Nike	
  Brand	
  Strategic	
  House	
  
diagram	
  which	
  outlines	
  the	
  companies	
  map	
  of	
  their	
  potential	
  through	
  to	
  the	
  year	
  2013.	
  
	
  
Strategy	
  Development	
  
The	
  Strategy	
  Deployment	
  process	
  encompasses	
  both	
  the	
  development	
  and	
  the	
  
execution	
  of	
  strategy.	
  
Key	
  changes	
  being	
  made	
  to	
  improve	
  the	
  efficiency	
  and	
  the	
  effectiveness	
  of	
  the	
  process	
  
are:	
  
Orchestrated	
  annual	
  set	
  of	
  events	
  and	
  deliverables	
  that	
  align	
  with	
  corporate	
  strategic	
  
planning	
  process
Playbook	
  with	
  tools,	
  techniques,	
  roles	
  and	
  responsibilities,	
  guides	
  for	
  each	
  phase	
  of	
  
deployment
Rigor	
  and	
  discipline	
  with	
  investment	
  in	
  time	
  for	
  x-­‐org	
  alignment	
  and	
  engagement
	
  
	
  
Performance	
  Management	
  
The	
  Global	
  Operations	
  Supply	
  Chain	
  performance	
  management	
  team	
  facilitates	
  a	
  
monthly	
  supply	
  chain	
  performance	
  review	
  process.	
  This	
  includes	
  setting	
  targets,	
  
collecting	
  data,	
  reporting,	
  reviewing,	
  and	
  driving	
  actions	
  as	
  result	
  of	
  gap	
  analyses.	
  
The	
  Supply	
  Chain	
  review	
  process	
  is	
  part	
  of	
  the	
  broader	
  Sales	
  and	
  Operations	
  Planning	
  
(S&OP)	
  framework,	
  through	
  which	
  representatives	
  from	
  the	
  stakeholder	
  groups	
  come	
  
together	
  to	
  optimize	
  the	
  demand/supply	
  match	
  and	
  to	
  look	
  into	
  escalated	
  issues.	
  
Within	
  Nike	
  Operations,	
  there	
  is	
  close	
  collaboration	
  across	
  functional	
  areas	
  
(Merchandising,	
  Planning,	
  Sourcing/Manufacturing,	
  Sales),	
  across	
  Footwear	
  and	
  
Apparel,	
  with	
  the	
  Category	
  team,	
  and	
  between	
  the	
  six	
  Geographies.	
  
	
  
Examples	
  of	
  Nike	
  trying	
  to	
  improve	
  Strategic	
  Development	
  and	
  Supply	
  Chain:	
  
Article:	
  ‘Strategy	
  Deployment	
  in	
  Japan	
  and	
  Greater	
  China.’	
  Basically	
  two	
  Nike	
  workers	
  
travelled	
  overseas	
  to	
  support	
  the	
  Greater	
  China	
  and	
  Japan	
  teams	
  with	
  the	
  creation	
  of	
  
strategic	
  plans	
  through	
  “Strategy	
  Deployment”	
  workshops.	
  




	
                                                                	
                                                              7	
  
Appendix B: External Supply Chain Case Studies
	
  
Safeway and Kraft (2004)	
  
Kraft	
  needed	
  help	
  innovating	
  in	
  their	
  supply	
  chain	
  to	
  provide	
  the	
  best	
  possible	
  service	
  to	
  
their	
  customers	
  and	
  increase	
  revenue.	
  IDEO	
  helped	
  to	
  facilitate	
  a	
  series	
  of	
  workshops	
  
between	
  members	
  of	
  Supply	
  Chain,	
  Merchandising,	
  Procurement,	
  Sales,	
  and	
  Human	
  
Resources	
  representatives	
  from	
  both	
  Kraft	
  and	
  its	
  retail	
  supermarket	
  customers.	
  Using	
  
structured	
  brainstorms,	
  field	
  observations	
  at	
  stores	
  and	
  distribution	
  centers,	
  
inspirational	
  observations	
  at	
  analogous	
  companies,	
  employee	
  interviews,	
  and	
  quick	
  
prototyping	
  of	
  new	
  tools,	
  the	
  teams	
  convened	
  several	
  times	
  over	
  an	
  18-­‐month	
  period	
  to	
  
share	
  learnings,	
  brainstorm	
  further	
  solutions,	
  and	
  implement	
  changes.	
  One	
  of	
  which	
  
was	
  pre-­‐packed	
  retail	
  displays	
  (photo).	
  Over	
  the	
  course	
  of	
  a	
  year,	
  one	
  team	
  from	
  
Safeway	
  saw	
  an	
  162%	
  increase	
  in	
  sales	
  in	
  a	
  certain	
  product.	
  Kraft	
  and	
  Safeway	
  have	
  
continued	
  to	
  use	
  the	
  skills,	
  networks,	
  and	
  collaborative	
  strategy	
  to	
  keep	
  innovating	
  in	
  
the	
  future.	
  	
  
http://www.ideo.com/work/safeway-­‐supply-­‐chain-­‐innovation-­‐for-­‐kraft	
  	
  




	
  
	
  
Qualcomm Venture Fest (QVF):	
  
In	
  2006,	
  Qualcomm	
  CEO’s	
  launched	
  the	
  Venture	
  Fest	
  competition	
  to	
  develop	
  
entrepreneurial	
  leaders,	
  promote	
  innovation,	
  discover	
  new	
  opportunities,	
  and	
  
experiment	
  with	
  management	
  innovation	
  practices	
  amongst	
  employees.	
  QVF	
  is	
  a	
  yearly	
  
competition	
  open	
  to	
  all	
  full-­‐time	
  employees,	
  where	
  they	
  are	
  required	
  to	
  submit	
  a	
  short	
  
business	
  plan	
  summary.	
  The	
  submission	
  period	
  is	
  open	
  for	
  about	
  six	
  months,	
  followed	
  
by	
  a	
  finalist	
  selection	
  process	
  lasting	
  about	
  6	
  weeks.	
  Once	
  the	
  finalists	
  are	
  selected,	
  each	
  
finalist	
  must	
  recruit	
  a	
  diverse	
  team	
  of	
  3-­‐10	
  volunteers	
  and	
  they	
  undergo	
  a	
  3	
  month	
  
corporate	
  entrepreneurship	
  and	
  innovation	
  boot	
  camp.	
  The	
  boot	
  camp	
  consists	
  of	
  core	
  
and	
  elective	
  courses	
  taught	
  by	
  specialists	
  in	
  fields	
  such	
  as	
  financial	
  analysis	
  and	
  
intellectual	
  property.	
  Teams	
  are	
  also	
  given	
  a	
  small	
  fund	
  for	
  outside	
  costs.	
  After	
  three	
  


	
                                                                  	
                                                                 8	
  
months,	
  the	
  teams	
  present	
  to	
  judges,	
  who	
  are	
  also	
  executive	
  members	
  of	
  the	
  
corporation.	
  The	
  top	
  3	
  teams	
  are	
  given	
  another	
  round	
  of	
  funding	
  so	
  that	
  they	
  can	
  
continue	
  to	
  work	
  on	
  the	
  projects	
  in	
  order	
  to	
  ultimately	
  reach	
  market	
  launch	
  or	
  to	
  keep	
  it	
  
brewing	
  in	
  research	
  and	
  development.	
  QVF	
  saw	
  a	
  50%	
  increase	
  in	
  participation	
  from	
  
one	
  year	
  to	
  the	
  next,	
  75%	
  receive	
  funding	
  for	
  proof-­‐of-­‐concept	
  activities,	
  and	
  ultimately,	
  
about	
  20%	
  of	
  business	
  plans	
  are	
  implemented	
  as	
  new	
  businesses.	
  
	
  
Saturn:	
  
Saturn	
  has	
  set	
  the	
  bar	
  for	
  customer	
  loyalty	
  with	
  their	
  after-­‐sales	
  service	
  and	
  supply	
  
chain	
  efficiency.	
  	
  They	
  have	
  taken	
  the	
  concept	
  of	
  jointly	
  managed	
  inventory	
  and	
  refined	
  
it	
  to	
  their	
  needs.	
  	
  This	
  means	
  each	
  Saturn	
  retail	
  branch	
  works	
  together	
  to	
  distribute	
  
parts	
  and	
  efficiently	
  respond	
  to	
  the	
  customer’s	
  needs.	
  	
  For	
  example,	
  if	
  a	
  car	
  from	
  one	
  
region	
  needs	
  a	
  specific	
  part	
  and	
  the	
  branch	
  in	
  that	
  region	
  is	
  not	
  currently	
  carrying	
  it,	
  the	
  
other	
  branches	
  nearby	
  will	
  quickly	
  respond	
  to	
  the	
  call	
  to	
  get	
  them	
  the	
  part	
  as	
  soon	
  as	
  
possible.	
  	
  This	
  is	
  different	
  from	
  other	
  companies	
  in	
  which	
  the	
  branches	
  are	
  competing	
  
for	
  more	
  customers	
  and	
  sales	
  rather	
  than	
  working	
  together.	
  	
  Because	
  of	
  this	
  method	
  of	
  
delivery	
  Saturn	
  is	
  the	
  highest	
  ranking	
  car	
  company	
  for	
  part	
  availability	
  and	
  customer	
  
loyalty	
  and	
  satisfaction.	
  	
  The	
  pull	
  system	
  strategy	
  is	
  based	
  on	
  target	
  levels	
  which	
  means	
  
that	
  single-­‐piece	
  flow	
  and	
  one-­‐for-­‐one	
  replenishment	
  creates	
  the	
  least	
  amount	
  of	
  waste	
  
while	
  still	
  efficiently	
  responding	
  to	
  demand.	
  	
  The	
  branches	
  do	
  not	
  position	
  inventory	
  in	
  
advance	
  based	
  on	
  forecast	
  consumption,	
  which	
  is	
  necessary	
  with	
  the	
  unpredictable	
  
nature	
  of	
  the	
  demand	
  of	
  parts.	
  	
  	
  
	
  
More Innovation Around The Marketplace:
	
  
3M	
  Co:	
  scientists	
  can	
  spend	
  15%	
  of	
  their	
  time	
  on	
  projects	
  they	
  dream	
  up	
  themselves,	
  &	
  
the	
  co.	
  has	
  set	
  procedures	
  to	
  take	
  bright	
  ideas	
  forward,	
  including	
  grants	
  &venture	
  
funding.	
  	
  
Google	
  Inc:	
  allows	
  its	
  researchers	
  to	
  devote	
  20%	
  of	
  their	
  schedules	
  to	
  play	
  time,	
  
pursuing	
  their	
  own	
  ideas	
  and	
  projects.	
  The	
  company	
  credits	
  this	
  policy	
  with	
  fostering	
  
many	
  of	
  i	
  ts	
  important	
  product	
  innovations,	
  including	
  Gmail,	
  its	
  popular	
  Web-­‐based	
  
email	
  service.	
  	
  
	
  
	
  
BMW	
  AG:	
  (and	
  others)	
  uses	
  websites	
  as	
  open	
  invitation	
  for	
  new	
  ideas.	
  Through	
  its	
  
Virtual	
  Innovation	
  Agency,	
  BMW	
  invites	
  ideas	
  from	
  “small	
  and	
  medium-­‐sized	
  innovative	
  
companies”	
  on	
  the	
  Web.	
  	
  
	
  
	
  
Many	
  companies	
  use	
  teams	
  of	
  writers	
  with	
  diverse	
  perspectives	
  to	
  create	
  complex	
  
scenarios	
  of	
  what	
  future	
  markets	
  may	
  look	
  like.	
  The	
  writers	
  try	
  to	
  imagine	
  detailed	
  
opportunities	
  and	
  threats	
  for	
  their	
  companies,	
  partners	
  and	
  collaborators.	
  	
  
	
  


	
                                                                     	
                                                                    9	
  
 
	
  
Novo	
  Nordisk:	
  used	
  first	
  hand	
  observation	
  to	
  mobilize	
  teams	
  in	
  several	
  developing	
  
countries	
  to	
  research	
  how	
  health	
  systems	
  with	
  limited	
  resources	
  were	
  handling	
  diabetes	
  
care.	
  The	
  result	
  was	
  a	
  rich	
  picture	
  of	
  the	
  market,	
  the	
  needs	
  that	
  weren’t	
  being	
  met,	
  and	
  
fertile	
  suggestions	
  for	
  alternative	
  products	
  and	
  services	
  that	
  might	
  be	
  delivered.	
  	
  
	
  
	
  
	
  
Some	
  companies	
  seek	
  innovation	
  partners	
  with	
  whom	
  they	
  wouldn’t	
  normally	
  work,	
  
and	
  who	
  might	
  bring	
  a	
  fresh	
  perspective.	
  Doctors	
  at	
  the	
  Great	
  Ormond	
  Street	
  Hospital	
  
for	
  Children	
  in	
  London,	
  for	
  example,	
  consulted	
  with	
  members	
  of	
  a	
  pit-­‐stop	
  crew	
  from	
  
Italy’s	
  Ferrari	
  Formula	
  One	
  motor-­‐racing	
  team	
  to	
  explore	
  ways	
  of	
  improving	
  how	
  
children	
  were	
  being	
  moved	
  out	
  of	
  heart	
  surgery	
  and	
  into	
  intensive	
  care	
  	
  
http://online.wsj.com/article/SB10001424052970204830304574133562888635626.htm
l	
  	
  
	
  

Manufacturing Firm Innovation Trends:
	
  
Source:	
  “Innovative	
  characteristics	
  of	
  small	
  manufacturing	
  firms.”	
  The	
  Journal	
  of	
  Small	
  
Business	
  and	
  Enterprise	
  Development;	
  (2006).	
  
	
  




                                                                                                                                           	
  




	
                                                                   	
                                                                10	
  
Appendix C: internal Supply Chain failure (2001-02)
http://wps.prenhall.com/bp_laudon_essmis_6/21/5555/1422333.cw/content/index	
  
	
  
Background:	
  
Beginning	
  in	
  early	
  1990s,	
  NIKE	
  is	
  so	
  large	
  it	
  cannot	
  accurately	
  predict	
  demands.	
  NIKE	
  is	
  
also	
  sluggish	
  to	
  react	
  to	
  demand	
  changes,	
  taking	
  a	
  month	
  for	
  production	
  schedules	
  to	
  
transition.	
  As	
  a	
  result,	
  retailers	
  experience	
  stock	
  outs	
  of	
  popular	
  show/apparel	
  models,	
  
while	
  running	
  surpluses	
  of	
  less	
  popular	
  product	
  forcing	
  drastic	
  discounting.	
  To	
  better	
  
predict	
  demand	
  and	
  improve	
  flexibility	
  of	
  supply-­‐chain,	
  NIKE:	
  
           	
  
       •   Installs	
  Systems,	
  Applications	
  and	
  Processing	
  (SAP)	
  supply-­‐chain	
  management	
  
           system	
  in	
  late	
  90s.	
  
       •   Installs	
  intranet	
  in	
  ‘97	
  hoping	
  to	
  more	
  accurately	
  understand	
  and	
  rapidly	
  react	
  to	
  
           local	
  style	
  demand	
  by	
  connecting	
  geographies	
  with	
  WHQ.	
  
       •   Spends	
  $400	
  million	
  to	
  install	
  customized	
  i2	
  supply-­‐chain	
  management	
  system	
  in	
  
           2001.	
  
	
  
All	
  these	
  implementations	
  fell	
  well	
  short	
  of	
  NIKE’s	
  expectations.	
  The	
  most	
  expensive	
  and	
  
damaging	
  from	
  a	
  PR	
  perspective	
  was	
  the	
  i2	
  failure,	
  highlighted	
  below.	
  
	
  
i2	
  Failure:	
  
The	
  i2	
  system	
  likely	
  failed	
  because	
  it	
  was	
  a	
  highly	
  customized	
  version,	
  implementation	
  
was	
  poorly	
  managed,	
  and	
  i2	
  had	
  certain	
  flaws.	
  
	
  
Customization:	
  
NIKE	
  worked	
  closely	
  with	
  i2	
  to	
  implement	
  a	
  highly	
  customized	
  version	
  of	
  the	
  software,	
  
and	
  then	
  link	
  it	
  to	
  existing	
  back-­‐end	
  systems.	
  However,	
  the	
  customization	
  caused	
  
managers	
  to	
  skew	
  from	
  proven	
  i2	
  implantation	
  methodologies	
  resulting	
  in	
  an	
  unstable	
  
launch.	
  
	
  
Poor	
  Management:	
  
Phil	
  Knight	
  (the	
  CEO	
  at	
  the	
  time)	
  made	
  comments	
  implying	
  he	
  hadn’t	
  created	
  nor	
  
approved	
  checkpoints	
  for	
  i2	
  implementation,	
  and	
  he	
  couldn’t	
  track	
  the	
  expenditure	
  of	
  
the	
  $400	
  million.	
  i2	
  also	
  went	
  live	
  to	
  1000s	
  of	
  suppliers/manufacturers	
  instead	
  of	
  an	
  
incremental	
  launch.	
  This	
  made	
  isolating	
  problems	
  impossible.	
  
	
  
Flaws:	
  
Kmart	
  who	
  has	
  similar	
  complexities	
  in	
  its	
  forecasting	
  and	
  supply-­‐chain,	
  also	
  reported	
  
problems	
  with	
  i2	
  software.	
  i2	
  salespeople	
  make	
  bold	
  promises	
  that	
  their	
  software	
  
doesn't	
  always	
  live	
  up.	
  
	
  


	
                                                                 	
                                                               11	
  
Results	
  of	
  i2	
  failure:	
  
     • Products	
  were	
  double	
  ordered.	
  Once	
  by	
  i2,	
  and	
  again	
  by	
  old	
  systems	
  
     • Inventory	
  problems	
  persist	
  for	
  6-­‐9	
  months	
  
     • Profits	
  decline	
  from	
  50-­‐55¢/share	
  to	
  35	
  -­‐40¢/share.	
  
     • Problems	
  would	
  cost	
  $80	
  million	
  to	
  $100	
  million	
  in	
  sales	
  for	
  that	
  quarter	
  
	
  


Appendix D: IDEO – innovation consulting co. – Case Study

Innovation the IDEO Way

1)	
  Determine	
  your	
  Innovation	
  Bias	
  
       • Human:	
  “How	
  might	
  we	
  become	
  more	
  relevant	
  to	
  people	
  outside	
  our	
  existing	
  
          markets?”	
  
       • Technology:	
  “How	
  might	
  we	
  leverage	
  this	
  new	
  technology	
  in	
  the	
  marketplace?”	
  
       • Business:	
  “How	
  might	
  innovation	
  allow	
  us	
  to	
  grab	
  share	
  from	
  our	
  competitors	
  in	
  
          the	
  growing	
  market?”	
  
           	
  
2)	
  L	
  with	
  human	
  needs	
  and	
  balance	
  all	
  3	
  perspectives	
  
	
  
        • Innovate	
  experiences	
  that	
  make	
  life	
  better	
  for	
  people	
  
        • IDEO	
  ways	
  to	
  grow	
  
                    o Create	
  growth	
  and	
  innovation	
  goal	
  
                    o Assess	
  outcomes	
  to	
  manage	
  innovation	
  
                    o Get	
  started	
  
	
  
Brainstorming the IDEO Way 	
  
	
  
        • Bosses	
  don’t	
  get	
  to	
  speak	
  first	
  
        • Stay	
  focused	
  on	
  the	
  topic	
  
        • Defer	
  judgment	
  to	
  avoid	
  interrupting	
  the	
  flow	
  of	
  ideas	
  
        • Build	
  on	
  the	
  ideas	
  of	
  others	
  
        • hold	
  only	
  one	
  conversation	
  at	
  a	
  time	
  
        • go	
  for	
  quantity	
  
        • Everybody	
  doesn’t	
  need	
  a	
  turn	
  
        • No	
  experts	
  period	
  
        • Anything	
  goes,	
  wacky	
  is	
  fine	
  	
  
        • Be	
  Visual 	
  
        • If	
  an	
  idea	
  doesn’t	
  sound	
  ridiculous	
  at	
  first,	
  it’s	
  probably	
  not	
  a	
  good	
  idea	
  
	
  




	
                                                                    	
                                                           12	
  
Prototyping the IDEO Way
	
  
Deep	
  dive	
  approach:	
  focus	
  intensively	
  for	
  an	
  entire	
  day	
  to	
  generate	
  a	
  large	
  number	
  of	
  
creative	
  concepts,	
  weed	
  out	
  weak	
  ideas,	
  and	
  start	
  prototyping. Do	
  immediately	
  after	
  
thinking!	
  

Development	
  process:
   • Phase	
  0-­‐	
  understand	
  and	
  observe’	
  Team	
  seeks	
  to	
  understand	
  the	
  client’s	
  
      business	
  and	
  determining	
  the	
  feasibility	
  of	
  a	
  product.	
  By	
  the	
  end,	
  should	
  have	
  
      summarized	
  major	
  discoveries	
  and	
  the	
  marketplace	
  and	
  its	
  users
      	
  
   • Phase	
  1-­‐	
  visualize/realize;	
  choose	
  a	
  product	
  direction	
  based	
  on	
  ideas,	
  
      technologies,	
  and	
  market	
  perceptions.	
  Goal	
  is	
  to	
  work	
  with	
  the	
  client	
  enough	
  to	
  
      have	
  brought	
  3d	
  models	
  and	
  a	
  general	
  manufacturing	
  strategy	
  of	
  product
      	
  
   • Phase	
  2-­‐	
  evaluating/refining;	
  enhanced	
  prototype	
  designs	
  through	
  testing,	
  
      culminates	
  with	
  a	
  “looks	
  like”	
  design	
  model

       •   Phase	
  3-­‐	
  implement/detailed	
  engineering;	
  completed	
  product	
  design	
  and	
  
           verified	
  the	
  final	
  product	
  worked	
  and	
  could	
  be	
  manufactured.	
  Teams	
  delivered	
  a	
  
           fully	
  functional	
  design	
  model.
           	
  
       •   Phase	
  4-­‐	
  implement/manufacturing	
  liaison;	
  team	
  ensured	
  smooth	
  product	
  
           release	
  




Appendix E: Nike Zoo innovation insight
	
  
1.Explore	
  (in	
  all	
  areas	
  of	
  the	
  world;	
  try	
  to	
  blend	
  distinct	
  concepts;	
  always	
  keep	
  end	
  goal	
  
in	
  mind)	
  
2.Discover	
  
3.Create	
  
4.Connect	
  (with	
  the	
  business;	
  how	
  does	
  this	
  innovation	
  fit	
  the	
  needs/demands	
  of	
  the	
  
company	
  and	
  the	
  consumers?)	
  
5.Test	
  
6.Refine	
  
7.Deliver	
  
	
  
	
  
	
  
	
  
	
  


	
                                                                    	
                                                                13	
  
 


Appendix F: Rotational Development Program
	
  




Appendix G: Offsite Plan Example
	
  
Theme:	
  Outside-­‐in	
  /	
  Inside-­‐out	
  
Goal:	
  To	
  increase	
  perspective	
  to	
  increase	
  ideas	
  to	
  increase	
  potential	
  while	
  team	
  building	
  
along	
  the	
  way–	
  every	
  activity	
  down	
  to	
  the	
  meals	
  should	
  expand	
  thinking	
  and	
  bring	
  the	
  
group	
  together.	
  
	
  
3	
  Day	
  Schedule:	
  
Day	
  1:	
  Guest	
  Speaker,	
  Nike	
  employees	
  	
  external	
  issue	
  
Day	
  2:	
  Nike	
  Leadership	
  presentation,	
  non-­‐Nike	
  people	
  	
  Nike-­‐specific	
  issue	
  
Day	
  3:	
  Debrief,	
  apply	
  learnings	
  
	
  
Day	
  1:	
  Inside-­‐out	
  
9:00	
  AM	
  -­‐	
  Breakfast:	
  Vegan	
  
10:30	
  AM	
  -­‐	
  Creative	
  Space:	
  Speaker	
  
      • External	
  company	
  shares	
  problems	
  (Aligns	
  with	
  Nike	
  strategy)	
  
      • Case	
  competition	
  introduction	
  –	
  picking	
  teams	
  (playground	
  style)	
  




	
                                                              	
                                                           14	
  
11:30	
  AM	
  –	
  Breakout	
  in	
  teams	
  
1:00	
  PM	
  –	
  Lunch:	
  Dim	
  Sum	
  
2:00	
  PM	
  –	
  More	
  time	
  to	
  work	
  in	
  teams	
  
5:00	
  PM	
  –	
  Presentations	
  to	
  Panel:	
  Professor,	
  Nike	
  rep,	
  guest	
  org	
  rep,	
  athlete,	
  local	
  
influencer	
  
7:00	
  PM	
  -­‐	
  Dinner	
  w/Panel	
  –	
  Seafood	
  
     • Prizes/announcements/sharing	
  
	
  
Day	
  2:	
  Outside-­‐in	
  
9:00	
  AM	
  –	
  Breakfast:	
  Coffee/Pastries	
  
10:00	
  AM	
  –	
  Nike	
  Leadership:	
  talk	
  strategy	
  and	
  Nike-­‐specific	
  issues	
  
11:00	
  AM	
  –	
  Brainstorming	
  in	
  groups	
  
12:00	
  PM	
  –	
  Regroup,	
  share	
  findings	
  
1:00	
  PM	
  –	
  Lunch:	
  Stanford	
  Mess	
  Hall	
  
2:00	
  PM	
  –	
  Social	
  outing,	
  sports	
  event	
  
6:00	
  PM	
  –	
  Dinner	
  –	
  cooking	
  class	
  
     • Open	
  debriefing	
  during	
  dinner	
  
	
  
Day	
  3:	
  Homecoming	
  (1/2	
  day)	
  
9:00	
  AM	
  –	
  Breakfast	
  
10:00	
  AM	
  –	
  Debrief	
  
12:00	
  PM	
  –	
  Lunch	
  
Leave	
  
Regroup	
  @	
  WHQ	
  w/team	
  to	
  share	
  key	
  learnings	
  
Feedback	
  from	
  traveling	
  team	
  on	
  effectiveness/suggestions	
  
	
  
Experience	
  enhancers:	
  
Integrate	
  social	
  media	
  to	
  catalyze	
  sharing,	
  connecting,	
  creativity,	
  and	
  ideating.	
  
     • Twitter	
  sidebars	
  during	
  presentations,	
  listeners	
  can	
  tweet	
  questions	
  or	
  ideas	
  in	
  
             real	
  time	
  
     • Share	
  music	
  via	
  spotify	
  
     • Share	
  photos	
  from	
  event	
  with	
  instagr.am	
  and	
  leverage	
  facebook	
  to	
  vote	
  on	
  best	
  
     • Unlock	
  badges	
  with	
  foursquare	
  which	
  lead	
  to	
  special	
  offsite	
  privileges	
  (maybe	
  
             this	
  is	
  how	
  you	
  determine	
  who	
  the	
  Nike	
  case	
  competition	
  judge	
  is)	
  
     • Nike+	
  (most	
  mile	
  ran	
  during,	
  etc.)	
  
	
  


Appendix G: Your New Digital Roster
	
  	
  
The	
  easiest	
  way	
  to	
  begin	
  to	
  understand	
  how	
  digital	
  concepts	
  can	
  integrate	
  with	
  the	
  
supply	
  chain	
  is	
  to	
  start	
  integrating	
  with	
  the	
  Nike	
  digital	
  department.	
  This	
  list	
  of	
  key	
  
digital	
  contacts	
  should	
  help.	
  
	
  


	
                                                                    	
                                                                15	
  
Everybody	
  on	
  this	
  list	
  sits	
  in	
  Jerry	
  Rice	
  (East	
  Wing)	
  floor	
  2	
  
	
  
You	
  know	
  how	
  to	
  turn	
  any	
  name	
  into	
  an	
  @nike.com	
  email	
  address!	
  
Evan	
  Baechler	
  –	
  Global	
  Digital	
  Intern	
  (Super	
  accessible)	
  -­‐-­‐	
  Baechler@uoregon.edu	
  
	
  
Jesse	
  Stollak	
  –	
  Global	
  Digital	
  Brand	
  &	
  Innovation	
  Director	
  (the	
  big	
  boss)	
  
	
  
Vikrant	
  (Vik)	
  Singh	
  –	
  Global	
  Digital	
  Community	
  Manager	
  (Social	
  Media	
  expert)	
  
	
  
Anthony	
  Abernathy	
  –	
  Global	
  Digital	
  Cross	
  Category	
  Lead	
  (Strategy	
  expert)	
  
	
  
Ezra	
  Martin	
  –	
  Global	
  Digital	
  Production	
  platforms	
  specialist	
  	
  
	
  
John	
  Agnew	
  –	
  Operating	
  Systems,	
  Applications,	
  Mobile	
  specialist	
  	
  
	
  
Andy	
  Pawlowski	
  –	
  Global	
  Digital	
  Basketball	
  Lead	
  	
  
	
  
Jacy	
  Weyer	
  –	
  Global	
  Digital	
  Action	
  Sports	
  Lead	
  	
  
	
  
Laura	
  West	
  –	
  Global	
  Digital	
  Running	
  Lead	
  
	
  
Danny	
  Tawiah	
  –	
  Global	
  Digital	
  Athletic	
  Training	
  Lead	
  
	
  
Dorinda	
  Ross	
  –	
  Global	
  Digital	
  Woman’s	
  Training	
  Lead	
  
	
  
Laura	
  Adams	
  –	
  Digital	
  advocacy	
  producer	
  for	
  SB&I	
  (NBW	
  digital	
  lead)	
  
	
  
Supply	
  Chain’s	
  Digital	
  Scavenger	
  Hunt	
  /	
  Checklist


Digital Scavenger Hunt
	
  
The	
  key	
  to	
  thinking	
  digitally	
  is	
  acting	
  digitally.	
  We’ve	
  set	
  up	
  some	
  fun,	
  interactive	
  digital	
  
experiences	
  to	
  help	
  you	
  develop	
  a	
  digital	
  mindset.	
  This	
  will	
  al	
  you	
  to	
  find	
  new	
  
information	
  sources,	
  test	
  drive	
  new	
  digital	
  tools,	
  and	
  get	
  acclimated	
  with	
  functionality	
  
and	
  terminology!	
  
	
  
Your New Gmail Account
This	
  Gmail	
  will	
  act	
  as	
  your	
  new	
  digital	
  hub	
  throughout	
  this	
  digital	
  experience.	
  
Email:	
  Just.Do.Innovation@Gmail.com	
  
Password:	
  improve!	
  
Security	
  question:	
  What	
  Company	
  do	
  I	
  work	
  for?	
  
Answer:	
  nike	
  
	
  


	
                                                                   	
                                                               16	
  
 
	
  

	
  

Task 1: Twitter
We’ve	
  set	
  up	
  a	
  Twitter	
  account	
  for	
  you.	
  This	
  will	
  help	
  you	
  find	
  content	
  and	
  people	
  
related	
  to	
  supply	
  chain,	
  innovation,	
  digital,	
  nike,	
  current	
  events,	
  everything.	
  
	
  
Twitter	
  account	
  (called	
  a	
  twitter	
  handle):	
  @JustDoInnov	
  
Password:	
  improve!	
  
	
  
Here	
  is	
  your	
  Twitter	
  Checklist	
  
	
  
 Write	
  your	
  purpose:	
  in	
  profile	
  settings	
  fill	
  in	
  your	
  Twitter	
  
     bio	
  –	
  brevity	
  is	
  key	
  
     	
  
 We	
  set	
  you	
  up	
  with	
  a	
  few	
  followers	
  now	
  find	
  some	
  more.	
  Either	
  search	
  
     for	
  topics	
  that	
  interest	
  you	
  or	
  click	
  on	
  one	
  of	
  the	
  people	
  you	
  follow	
  and	
  
     see	
  who	
  they	
  follow	
  
     	
  
 Now	
  set	
  up	
  a	
  list.	
  You	
  can	
  organize	
  an	
  inbox	
  of	
  tweets	
  by	
  assigning	
  
     people	
  you	
  follow	
  to	
  lists.	
  This	
  can	
  help	
  compartmentalize	
  your	
  Twitter	
  
     stream.	
  
     	
  
 @Ebaechler	
  has	
  tweeted	
  @JustDoInnov	
  be	
  sure	
  to	
  respond,	
  and	
  
     checkout	
  his	
  recommendations.	
  Be	
  sure	
  to	
  tweet	
  back	
  
	
  
 Download	
  the	
  Twitter	
  mobile	
  app	
  and	
  explore	
  on	
  the	
  go!	
  
	
  

       Task 2: Google+
There	
  should	
  be	
  an	
  invitation	
  to	
  Google+	
  waiting	
  in	
  your	
  inbox.	
  This	
  is	
  
Google’s	
  new	
  social	
  network.	
  Google+	
  is	
  still	
  in	
  beta	
  –	
  which	
  means	
  most	
  
people	
  haven’t	
  joined	
  yet.	
  The	
  people	
  who	
  have	
  are	
  early	
  adopters,	
  the	
  
tech	
  hungry,	
  and	
  trendsetters.	
  By	
  joining	
  you’ll	
  be	
  among	
  the	
  elite	
  of	
  social	
  
digital.	
  
	
  
	
  
	
  
	
  


	
                                                                    	
                                                              17	
  
Google+	
  Checklist	
  
	
  
      Establish	
  a	
  Supply-­‐chain	
  specific	
  circle	
  (circles	
  are	
  groupings	
  for	
  your	
  
          G+	
  friends.	
  You	
  can	
  disseminated	
  information	
  to	
  specific	
  circles	
  
          without	
  your	
  other	
  friends	
  or	
  the	
  public	
  having	
  access)	
  
          	
  
      Invite	
  all	
  your	
  supply	
  chain	
  co-­‐workers	
  to	
  join	
  (they’ll	
  need	
  a	
  Gmail	
  
          account)	
  
     	
  
      Start	
  sharing	
  ideas	
  and	
  communicating	
  internally	
  via	
  google+	
  try	
  
          organizing	
  a	
  brainstorm	
  in	
  the	
  physical	
  world	
  solely	
  by	
  using	
  G+	
  
          	
  
      Test	
  Drive	
  a	
  hangout.	
  Hangouts	
  may	
  work	
  as	
  a	
  digital	
  meeting	
  space	
  
          down	
  the	
  road	
  
          	
  
      Get	
  the	
  mobile	
  app	
  
          	
  
      Tweet	
  about	
  your	
  experiences	
  (@ebaechler	
  would	
  love	
  an	
  update)	
  
	
  
Task 3: Google Reader
Google	
  reader	
  is	
  an	
  RSS	
  feed	
  where	
  you	
  can	
  subscribe	
  to	
  blogs	
  and	
  new	
  sources	
  online	
  
to	
  keep	
  up	
  on	
  current	
  events,	
  trends,	
  ideas,	
  and	
  people.	
  You	
  can	
  access	
  you	
  reader	
  
dashboard	
  while	
  logged	
  into	
  the	
  just.do.innovation@gmail.com	
  email	
  account.	
  Just	
  click	
  
on	
  the	
  reader	
  link	
  in	
  the	
  top-­‐left	
  navigation	
  bar.	
  
	
  
You’ll	
  want	
  to	
  be	
  the	
  boss	
  of	
  your	
  own	
  RSS	
  feed	
  because	
  if	
  you	
  add	
  too	
  much	
  there	
  is	
  
too	
  much	
  pollution.	
  We’ve	
  loaded	
  two	
  sources	
  only	
  so	
  it’s	
  up	
  to	
  you	
  to	
  take	
  charge.	
  
	
  
Google	
  Reader	
  Checklist	
  
	
  
      Add	
  a	
  new	
  source	
  to	
  your	
  RSS	
  feed	
  –	
  Try	
  finding	
  an	
  
       interesting	
  blog	
  on	
  twitter	
  and	
  then	
  loading	
  them	
  in.	
  Click	
  
       ‘Add	
  a	
  subscription’	
  then	
  simply	
  copy	
  the	
  url	
  for	
  the	
  blog	
  /	
  
       source	
  to	
  add	
  it	
  to	
  your	
  feed.	
  
	
  




	
                                                                    	
                                                                 18	
  
Task 4: GroupMe
GroupMe	
  is	
  a	
  group	
  texting	
  social	
  networking	
  tool.	
  It	
  is	
  a	
  great	
  way	
  to	
  ideate	
  on	
  
the	
  go	
  with	
  anybody	
  in	
  the	
  world.	
  You’ll	
  need	
  a	
  mobile	
  number	
  to	
  set	
  up	
  your	
  
account,	
  so	
  we	
  didn’t	
  set	
  one	
  up	
  for	
  you.	
  http://groupme.com/	
  
	
  
GroupMe	
  Checklist	
  
       	
  
      Designated	
  an	
  employee	
  to	
  set	
  up	
  a	
  GroupMe	
  account.	
  
       	
  
      Create	
  a	
  room	
  –	
  make	
  sure	
  the	
  room	
  title	
  /	
  topic	
  is	
  clear	
  so	
  that	
  the	
  
       scope	
  of	
  the	
  conversation	
  remains	
  focused.	
  The	
  topic	
  could	
  be	
  
       around	
  a	
  specific	
  problem	
  needing	
  to	
  be	
  solved	
  or	
  a	
  brainstorm	
  
       around	
  additional	
  ways	
  to	
  innovate.	
  
       	
  
      Add	
  Evan	
  Baechler	
  to	
  the	
  list	
  503-­‐701-­‐8868	
  so	
  the	
  conversation	
  has	
  
       some	
  young,	
  outside	
  perspective.	
  
	
  
Task 5: Tumblr
Now	
  that	
  you’ve	
  set	
  up	
  all	
  these	
  tool	
  s	
  to	
  get	
  smarter,	
  get	
  faster,	
  and	
  
ultimately	
  work	
  toward	
  a	
  better,	
  more	
  innovative	
  supply	
  chain,	
  you’ll	
  
need	
  a	
  place	
  to	
  share	
  your	
  most	
  notable	
  content.	
  	
  Tumblr	
  is	
  a	
  super-­‐
simple	
  blogging	
  site.	
  Try	
  setting	
  one	
  up	
  and	
  seeing	
  if	
  the	
  platform	
  fits	
  to	
  your	
  
information	
  sharing	
  needs.	
  Here	
  is	
  an	
  example	
  of	
  a	
  tumblr	
  blog,	
  the	
  global	
  digital	
  
department	
  maintains	
  as	
  a	
  hub	
  for	
  link	
  sharing.	
  http://linkcanvas.tumblr.com/	
  
	
  
Tumblr	
  Checklist	
  
	
  
      Set	
  up	
  a	
  Tumblr	
  account	
  and	
  circulate	
  the	
  link	
  to	
  people	
  who	
  could	
  
       benefit	
  from	
  posted	
  content	
  
	
  
      Locate	
  the	
  designated	
  email	
  so	
  that	
  you	
  can	
  post	
  via	
  email	
  remotely.	
  
       http://www.tumblr.com/goodies	
  
	
  
      Post	
  a	
  link	
  or	
  two	
  a	
  day	
  for	
  a	
  week	
  and	
  evaluate	
  if	
  you	
  and	
  your	
  team	
  
       are	
  smarter	
  and	
  innovative	
  by	
  Friday	
  you	
  can	
  pull	
  links	
  from	
  twitter,	
  
       Google+,	
  Google	
  Reader,	
  and	
  from	
  internet	
  searches	
  

	
                                                                     	
                                                            19	
  
Other Digital Tools
Here	
  is	
  a	
  list	
  of	
  other	
  digital	
  tools	
  that	
  Supply	
  Chain	
  might	
  leverage	
  toward	
  innovation.	
  
	
  
                   Evernote:	
  	
  A	
  digital	
  file	
  cabinet.	
  
                   Store,	
  organize,	
  and	
  edit,	
  all	
  digital	
  
                                                                                                    	
  
                                                                                                   QR	
  codes:	
  2D	
  barcodes	
  read	
  by	
  
                                                                                                   smartphones	
  that	
  link	
  physical	
  
                                                                                                    	
  
                   content.	
  The	
  web	
  clipper	
  is	
  key.	
  
                                                                                                   content	
  to	
  digital	
  
                                                                                                           	
  

                    StumbleUpon:	
  bubbles	
  up	
  
                                                                                                  	
  
                                                                                                     Spotify:	
  Music	
  sharing	
  network	
  –	
  it	
  
                    interesting	
  web	
  content	
  based	
  on	
  
                    filters	
  around	
  your	
  interests	
                                        	
  might	
  replace	
  itunes.	
  
                                                                                                    	
  
	
  
	
  
                                                                                                 	
  
                    Nike+:	
  you	
  know	
  what	
  this	
  is!	
  but	
                        	
   Foursquare:	
  	
  A	
  mobile	
  network	
  in	
  
                    using	
  it	
  will	
  help	
  identify	
  how	
  sport	
                    	
   which	
  users	
  check	
  into	
  locations	
  
                    and	
  nike	
  integrate	
  socially/	
  digitally	
                                      and	
  ern	
  points/badges.	
  
                                                                                         	
  
                                                                                                 	
  
                   Tweetdeck:	
  a	
  desktop	
  app	
  that	
                                   	
   Linkedin:	
  professional	
  social	
  
                   optimizes	
  social	
  media	
  monitoring	
                                    network.	
  A	
  good	
  place	
  to	
  located	
  
                   and	
  publishing	
                                                           	
   innovative	
  thinkers	
  


	
  
                     	
  
                                                                                                     	
  Webex:	
  a	
  virtual	
  meeting	
  
                  Quora:	
  A	
  social	
  network	
  organized	
  
                                                                                                         application	
  
                  around	
  Q&A	
  –	
  potential	
  crowd	
  
                                                                                                     Stay in Touch!
                  sourcing	
  opportunity	
  
                                                                                               	
  
We’d	
                                                                                         love	
  to	
  stay	
  involved	
  with	
  
Nike	
  supply	
  chains	
  innovation.	
  Don’t	
  hesitate	
  to	
  email	
  (our	
  emails	
  are	
  on	
  pages	
  3-­‐4)	
  or	
  
in	
  the	
  spirit	
  of	
  digital,	
  reach	
  out	
  via	
  twitter,	
  Linkedin,	
  Google+,	
  or	
  by	
  adding	
  us	
  to	
  your	
  
GroupMe	
  conversations!	
  
	
  
                                            Evan	
  Baechler	
  -­‐	
  @ebaechler	
  
                                                      Rory	
  Blanche	
  
                                        Tanner	
  Gardner	
  -­‐	
  @tannerdgardner	
  
                                                      Bree	
  McArdle	
  
                                        Tierney	
  O’Rourke	
  -­‐	
  @tierneyorourke	
  
                                            Cydney	
  Ross	
  -­‐	
  @cydmarie16	
  
                                                     Marika	
  Zumbro	
  



	
                                                                                	
                                                               20	
  
 




	
     	
     21	
  

Supply chain innovation appendix

  • 1.
                                                                                  Summer 2011       1  
  • 2.
    Table of Cont en t s   Meet  The  Team:........................................................................................................................3   Project  Approach .....................................................................................................................5   Appendix  A:  Supply  Chain  Website  Overview................................................................6   Appendix  B:  External  Supply  Chain  Case  Studies..........................................................8   More  Innovation  Around  The  Marketplace: ............................................................................ 9   Manufacturing  Firm  Innovation  Trends:................................................................................10   Appendix  C:  internal  Supply  Chain  failure  (2001-­02).............................................. 11   Appendix  D:  IDEO  –  innovation  consulting  co.  –  Case  Study .................................. 12   Innovation  the  IDEO  Way.............................................................................................................12   Prototyping  the  IDEO  Way...........................................................................................................13   Appendix  E:  Nike  Zoo  innovation  insight ..................................................................... 13   Appendix  F:  Rotational  Development  Program ......................................................... 14   Appendix  G:  Offsite  Plan  Example................................................................................... 14   Appendix  G:  Your  New  Digital  Roster ............................................................................ 15   Digital  Scavenger  Hunt ....................................................................................................... 16   Task  1:  Twitter ................................................................................................................................17   Task  2:  Google+ ...............................................................................................................................17   Task  3:  Google  Reader...................................................................................................................18   Task  4:  GroupMe .............................................................................................................................19   Task  5:  Tumblr ................................................................................................................................19   Other  Digital  Tools .........................................................................................................................20   Stay  in  Touch!...................................................................................................................................20       2  
  • 3.
      Meet The Team:     Evan  Baechler  –  Baechler@uoregon.edu     SCHOOL:  University  of  Oregon,  BA  Sports  Business   GRADUATION  DATE:  June  2012     DEPARTMENT:  Global  Digital         FAVORITE  SPORT:  Soccer,  Lacrosse   INTERESTS/HOBBIES:  Drums,  digital  art,  travel,  barbecuing   FAVORITE  NIKE  PRODUCT:  Airforce  1  Mid  (all  black)           Tierney  O’Rourke  –  torourke91@gmail.com     SCHOOL:  Stanford  University,  BA  American  studies,  Human  Biology   GRADUATION  DATE:  June  2013     DEPARTMENT:  Brand  Design  -­‐  Writing       FAVORITE  SPORT:  Crew   INTERESTS/HOBBIES:  Rowing,  running,  hiking,  baking   FAVORITE  NIKE  PRODUCT:  Tempo  running  shorts           Rory  Blanche  –  gotair@charter.net     SCHOOL:  W.  Washington  Univ,  BS  Manufacturing  Engineering  Tech.   GRADUATION  DATE:  June  2012     TITLE:  IHM  -­‐  Design  Engineering       FAVORITE  SPORT:  Basketball   INTERESTS/HOBBIES:  Snowboarding,  mountain  biking,  sports  equip.   FAVORITE  NIKE  PRODUCT:  Huarache  2K4,  Jordan  XI,  Hyperdunk         3  
  • 4.
    Cydney  Ross  –  cydney.ross@duke.edu     SCHOOL:  Duke  University,  BA  Public  Policy   GRADUATION  DATE:  May  2012       DEPARTMENT:  Olympic  Sports  Marketing     FAVORITE  SPORT:  Track  and  college  Basketball     INTERESTS/HOBBIES:  Running,  hanging  with  friends,  reality  TV     FAVORITE  NIKE  PRODUCT:  Nike  Pro  Spandex,  Nike  Free       Marika  Zumbro  –  mzumbro@gmail.com     SCHOOL:  Harvard  University,  BA  Psychology   GRADUATION  DATE:  May  2012       DEPARTMENT:  IT  Service  Delivery     FAVORITE  SPORT:  Softball   INTERESTS/HOBBIES:  Sports,  movies,  and  dance   FAVORITE  NIKE  PRODUCT:  Shoes           Tanner  Gardner  –  tgardner@mba2012.hbs.edu     SCHOOL:  Harvard  Business  School,  MBA     GRADUATION  DATE:  June  2012     DEPARTMENT:  Strategic  Planning  Intern         FAVORITE  SPORT:  Wrestling   INTERESTS/HOBBIES:  Running,  golfing,  wrestling,  traveling   FAVORITE  NIKE  PRODUCT:  Beijing  Wrestling  Shoes       Bree  McArdle  –  bm07d@fsu.edu         SCHOOL:  Florida  State  University,  BS  Business  MKTG  &  HR  MGMT     GRADUATION  DATE:  Spring  2011         DEPARTMENT:  Retail  Brand  Presentation             FAVORITE  SPORT:  Track     INTERESTS/HOBBIES:  soccer,  rugby,  triathlon,  going  to  the  beach   FAVORITE  NIKE  PRODUCT:  Nike  racing  flats         4  
  • 5.
    Project Approach Overview  of  the  Problem   Business  Problem:  Lack  of  existing  structure,  framework  in  approach  to  innovation   within  Supply  Chain  /  Operations  organization.  This  results  in  being  opportunistic  and   reactive  to  best  practices  and  trends,  rather  than  being  the  “first  in  market  –  or  trend-­‐ setter”  as  it  relates  to  supply  chain  development     Provide  any  more  details  based  on  interview  with  Nikhil  /  Deb  /  others  on  team.     3  Sub-­‐groups:       Current  State  of  the  Supply  Chain  Organization,  focusing  on  innovation:     Bree  and  Tanner   • Overview  of  dept  (mission,  organization,  supply  chain  flow  chart,  etc.)   • Current  process  for  innovation   • Description  of  any  previous  efforts  to  improve  the  innovation  process     External  Benchmarking  innovation:     Cydney  and  Mari   • Identify  2-­‐3  companies  that  have  strong  innovation  organizations   o Look  at  a  possible  Forbes  list  (100  most  innovative  companies)   o Google   • Complete  a  small  case  study  on  each  of  these  organizations  documenting  best   practices  and  areas  that  may  not  work  so  well   • Could  supplement  this  with  a  small  amount  of  academic  research   o Lots  of  academic  reviews/research,  etc.  on  Ideo     Internal  Benchmarking  innovation:   Evan,  Rory,  Tierney   • Identify  2-­‐3  departments  at  NIKE  with  strong  innovation  processes   o Innovation  Kitchen  (Tierney)    Aaron  Cooper,  Innovation  Design  Lead,  Pantry    Intern  in  Innovation  Kitchen/Pantry:  Anthony  DeRothschild    Dave  Schenone,  Innovation  Kitchen,  customization,  local  for  local   o Brand  Innovations  (Rory)    Byron  Merritt  (asst:  Jolene  Driscoll)    Jeff  Cha   o IHM  (Rory)   o Knit  Cave   o Supply  Chain  (Rory)   o Sharla  Settlemier,  Senior  Director  of  Sustainable  Manuafcturing   o Digital  (Evan)    Jesse  Stollak:  Director       5  
  • 6.
    Complete  a  small  case  study  on  each  of  these  departments  documenting  best   practices  and  areas  that  may  not  work  so  well  (based  on  interviews  with  folks  in   these  organizations  and  also  any  documents  they  may  have  on  innovation     Current  Position  vs.  Benchmarks   Show  how  the  Supply  Chain  organization’s  innovation  process  compares  to  that  of   others  top  innovation  organization  and  departments  at  NIKE     Go-­‐forward  strategic  options  and  recommendations   • Based  on  benchmarking,  layout  2-­‐4  feasible  go-­‐forward  options  for  an  innovation   frameworks  within  supply  chain   • Potentially  lay  out  some  additional  ‘stretch’  ideas  that  may  not  be  feasible  now   but  in  the  future   • Recommend  one  specific  option     Tactics  and  challenges  to  achieving  recommendation   • Layout  some  key  tactics  on  how  the  organization  can  get  from  where  it  is  today   to  the  recommended  future  state   • Identify  key  risks  to  achieving  the  recommendation  and  propose  ideas  to   mitigate  those  risks   Appendix A: Supply Chain Website Overview   Basic  and  Shortened  Nike  Supply  Chain  Information  on  Nike  Zero:   (http://zero.nike.com/supply_chain/index.html)     At  its  core,  supply  chain  =  deliver  in  full  on  time  with  minimal  cost  and  inventory.    A   simple  concept  but  one  we  must  execute  across  the  globe  in  over  160  countries,  with   650,000+  SKUs,  from  1000  factories,  in  100,000+  stores.    Our  supply  chain  is  a  complex   network  of  people,  products,  partners  (suppliers,  customers),  physical  locations   (factories,  distribution  centers,  stores),  and  information  systems.       Global  Network:   We  source  in  53  countries  and  deliver  products  in  over  160  countries  around  the  globe.   To  do  that  there  are  core  activities  in  the  supply  chain:  Plan-­‐Design-­‐Source-­‐Develop-­‐   Forecast-­‐Sell  in-­‐Buy-­‐Make-­‐Allocate-­‐Deliver-­‐Sell  Through-­‐  Clean  up.     Strategic  Plan   Supply  Chain’s  objective  is  to  win  at  the  moment  of  truth:  right  product,  right  place,   right  time.     Strategic  Priorities:       6  
  • 7.
    -­‐Serve  marketplace  transformation;  lead  with  Direct-­‐  to  Consumer.   -­‐Deliver  category  offense  with  precision,  speed  and  flexibility.   -­‐Embed  multiple  business  models  in  our  DNA-­‐  Always  available  first.   -­‐Perfect  end  to  end  “value  chain”  planning  and  execution.   -­‐Unleash  the  power  of  the  portfolio-­‐  leverage  to  accelerate  growth.   (Each  of  these  priorities  are  elaborated  on  the  website  with  statistics  included).     Foundation  of  Priorities   -­‐Drive  execution  discipline  and  accelerate  continuous  improvement.   -­‐Develop  and  inspire  diverse,  high-­‐performing  teams   -­‐Innovate  for  a  better  supply  chain,  and  a  better  world     On  the  website  under  Nike  Corporate  Strategy  there  is  a  Nike  Brand  Strategic  House   diagram  which  outlines  the  companies  map  of  their  potential  through  to  the  year  2013.     Strategy  Development   The  Strategy  Deployment  process  encompasses  both  the  development  and  the   execution  of  strategy.   Key  changes  being  made  to  improve  the  efficiency  and  the  effectiveness  of  the  process   are:   Orchestrated  annual  set  of  events  and  deliverables  that  align  with  corporate  strategic   planning  process Playbook  with  tools,  techniques,  roles  and  responsibilities,  guides  for  each  phase  of   deployment Rigor  and  discipline  with  investment  in  time  for  x-­‐org  alignment  and  engagement     Performance  Management   The  Global  Operations  Supply  Chain  performance  management  team  facilitates  a   monthly  supply  chain  performance  review  process.  This  includes  setting  targets,   collecting  data,  reporting,  reviewing,  and  driving  actions  as  result  of  gap  analyses.   The  Supply  Chain  review  process  is  part  of  the  broader  Sales  and  Operations  Planning   (S&OP)  framework,  through  which  representatives  from  the  stakeholder  groups  come   together  to  optimize  the  demand/supply  match  and  to  look  into  escalated  issues.   Within  Nike  Operations,  there  is  close  collaboration  across  functional  areas   (Merchandising,  Planning,  Sourcing/Manufacturing,  Sales),  across  Footwear  and   Apparel,  with  the  Category  team,  and  between  the  six  Geographies.     Examples  of  Nike  trying  to  improve  Strategic  Development  and  Supply  Chain:   Article:  ‘Strategy  Deployment  in  Japan  and  Greater  China.’  Basically  two  Nike  workers   travelled  overseas  to  support  the  Greater  China  and  Japan  teams  with  the  creation  of   strategic  plans  through  “Strategy  Deployment”  workshops.       7  
  • 8.
    Appendix B: ExternalSupply Chain Case Studies   Safeway and Kraft (2004)   Kraft  needed  help  innovating  in  their  supply  chain  to  provide  the  best  possible  service  to   their  customers  and  increase  revenue.  IDEO  helped  to  facilitate  a  series  of  workshops   between  members  of  Supply  Chain,  Merchandising,  Procurement,  Sales,  and  Human   Resources  representatives  from  both  Kraft  and  its  retail  supermarket  customers.  Using   structured  brainstorms,  field  observations  at  stores  and  distribution  centers,   inspirational  observations  at  analogous  companies,  employee  interviews,  and  quick   prototyping  of  new  tools,  the  teams  convened  several  times  over  an  18-­‐month  period  to   share  learnings,  brainstorm  further  solutions,  and  implement  changes.  One  of  which   was  pre-­‐packed  retail  displays  (photo).  Over  the  course  of  a  year,  one  team  from   Safeway  saw  an  162%  increase  in  sales  in  a  certain  product.  Kraft  and  Safeway  have   continued  to  use  the  skills,  networks,  and  collaborative  strategy  to  keep  innovating  in   the  future.     http://www.ideo.com/work/safeway-­‐supply-­‐chain-­‐innovation-­‐for-­‐kraft         Qualcomm Venture Fest (QVF):   In  2006,  Qualcomm  CEO’s  launched  the  Venture  Fest  competition  to  develop   entrepreneurial  leaders,  promote  innovation,  discover  new  opportunities,  and   experiment  with  management  innovation  practices  amongst  employees.  QVF  is  a  yearly   competition  open  to  all  full-­‐time  employees,  where  they  are  required  to  submit  a  short   business  plan  summary.  The  submission  period  is  open  for  about  six  months,  followed   by  a  finalist  selection  process  lasting  about  6  weeks.  Once  the  finalists  are  selected,  each   finalist  must  recruit  a  diverse  team  of  3-­‐10  volunteers  and  they  undergo  a  3  month   corporate  entrepreneurship  and  innovation  boot  camp.  The  boot  camp  consists  of  core   and  elective  courses  taught  by  specialists  in  fields  such  as  financial  analysis  and   intellectual  property.  Teams  are  also  given  a  small  fund  for  outside  costs.  After  three       8  
  • 9.
    months,  the  teams  present  to  judges,  who  are  also  executive  members  of  the   corporation.  The  top  3  teams  are  given  another  round  of  funding  so  that  they  can   continue  to  work  on  the  projects  in  order  to  ultimately  reach  market  launch  or  to  keep  it   brewing  in  research  and  development.  QVF  saw  a  50%  increase  in  participation  from   one  year  to  the  next,  75%  receive  funding  for  proof-­‐of-­‐concept  activities,  and  ultimately,   about  20%  of  business  plans  are  implemented  as  new  businesses.     Saturn:   Saturn  has  set  the  bar  for  customer  loyalty  with  their  after-­‐sales  service  and  supply   chain  efficiency.    They  have  taken  the  concept  of  jointly  managed  inventory  and  refined   it  to  their  needs.    This  means  each  Saturn  retail  branch  works  together  to  distribute   parts  and  efficiently  respond  to  the  customer’s  needs.    For  example,  if  a  car  from  one   region  needs  a  specific  part  and  the  branch  in  that  region  is  not  currently  carrying  it,  the   other  branches  nearby  will  quickly  respond  to  the  call  to  get  them  the  part  as  soon  as   possible.    This  is  different  from  other  companies  in  which  the  branches  are  competing   for  more  customers  and  sales  rather  than  working  together.    Because  of  this  method  of   delivery  Saturn  is  the  highest  ranking  car  company  for  part  availability  and  customer   loyalty  and  satisfaction.    The  pull  system  strategy  is  based  on  target  levels  which  means   that  single-­‐piece  flow  and  one-­‐for-­‐one  replenishment  creates  the  least  amount  of  waste   while  still  efficiently  responding  to  demand.    The  branches  do  not  position  inventory  in   advance  based  on  forecast  consumption,  which  is  necessary  with  the  unpredictable   nature  of  the  demand  of  parts.         More Innovation Around The Marketplace:   3M  Co:  scientists  can  spend  15%  of  their  time  on  projects  they  dream  up  themselves,  &   the  co.  has  set  procedures  to  take  bright  ideas  forward,  including  grants  &venture   funding.     Google  Inc:  allows  its  researchers  to  devote  20%  of  their  schedules  to  play  time,   pursuing  their  own  ideas  and  projects.  The  company  credits  this  policy  with  fostering   many  of  i  ts  important  product  innovations,  including  Gmail,  its  popular  Web-­‐based   email  service.         BMW  AG:  (and  others)  uses  websites  as  open  invitation  for  new  ideas.  Through  its   Virtual  Innovation  Agency,  BMW  invites  ideas  from  “small  and  medium-­‐sized  innovative   companies”  on  the  Web.         Many  companies  use  teams  of  writers  with  diverse  perspectives  to  create  complex   scenarios  of  what  future  markets  may  look  like.  The  writers  try  to  imagine  detailed   opportunities  and  threats  for  their  companies,  partners  and  collaborators.           9  
  • 10.
        Novo  Nordisk:  used  first  hand  observation  to  mobilize  teams  in  several  developing   countries  to  research  how  health  systems  with  limited  resources  were  handling  diabetes   care.  The  result  was  a  rich  picture  of  the  market,  the  needs  that  weren’t  being  met,  and   fertile  suggestions  for  alternative  products  and  services  that  might  be  delivered.           Some  companies  seek  innovation  partners  with  whom  they  wouldn’t  normally  work,   and  who  might  bring  a  fresh  perspective.  Doctors  at  the  Great  Ormond  Street  Hospital   for  Children  in  London,  for  example,  consulted  with  members  of  a  pit-­‐stop  crew  from   Italy’s  Ferrari  Formula  One  motor-­‐racing  team  to  explore  ways  of  improving  how   children  were  being  moved  out  of  heart  surgery  and  into  intensive  care     http://online.wsj.com/article/SB10001424052970204830304574133562888635626.htm l       Manufacturing Firm Innovation Trends:   Source:  “Innovative  characteristics  of  small  manufacturing  firms.”  The  Journal  of  Small   Business  and  Enterprise  Development;  (2006).           10  
  • 11.
    Appendix C: internalSupply Chain failure (2001-02) http://wps.prenhall.com/bp_laudon_essmis_6/21/5555/1422333.cw/content/index     Background:   Beginning  in  early  1990s,  NIKE  is  so  large  it  cannot  accurately  predict  demands.  NIKE  is   also  sluggish  to  react  to  demand  changes,  taking  a  month  for  production  schedules  to   transition.  As  a  result,  retailers  experience  stock  outs  of  popular  show/apparel  models,   while  running  surpluses  of  less  popular  product  forcing  drastic  discounting.  To  better   predict  demand  and  improve  flexibility  of  supply-­‐chain,  NIKE:     • Installs  Systems,  Applications  and  Processing  (SAP)  supply-­‐chain  management   system  in  late  90s.   • Installs  intranet  in  ‘97  hoping  to  more  accurately  understand  and  rapidly  react  to   local  style  demand  by  connecting  geographies  with  WHQ.   • Spends  $400  million  to  install  customized  i2  supply-­‐chain  management  system  in   2001.     All  these  implementations  fell  well  short  of  NIKE’s  expectations.  The  most  expensive  and   damaging  from  a  PR  perspective  was  the  i2  failure,  highlighted  below.     i2  Failure:   The  i2  system  likely  failed  because  it  was  a  highly  customized  version,  implementation   was  poorly  managed,  and  i2  had  certain  flaws.     Customization:   NIKE  worked  closely  with  i2  to  implement  a  highly  customized  version  of  the  software,   and  then  link  it  to  existing  back-­‐end  systems.  However,  the  customization  caused   managers  to  skew  from  proven  i2  implantation  methodologies  resulting  in  an  unstable   launch.     Poor  Management:   Phil  Knight  (the  CEO  at  the  time)  made  comments  implying  he  hadn’t  created  nor   approved  checkpoints  for  i2  implementation,  and  he  couldn’t  track  the  expenditure  of   the  $400  million.  i2  also  went  live  to  1000s  of  suppliers/manufacturers  instead  of  an   incremental  launch.  This  made  isolating  problems  impossible.     Flaws:   Kmart  who  has  similar  complexities  in  its  forecasting  and  supply-­‐chain,  also  reported   problems  with  i2  software.  i2  salespeople  make  bold  promises  that  their  software   doesn't  always  live  up.         11  
  • 12.
    Results  of  i2  failure:   • Products  were  double  ordered.  Once  by  i2,  and  again  by  old  systems   • Inventory  problems  persist  for  6-­‐9  months   • Profits  decline  from  50-­‐55¢/share  to  35  -­‐40¢/share.   • Problems  would  cost  $80  million  to  $100  million  in  sales  for  that  quarter     Appendix D: IDEO – innovation consulting co. – Case Study Innovation the IDEO Way 1)  Determine  your  Innovation  Bias   • Human:  “How  might  we  become  more  relevant  to  people  outside  our  existing   markets?”   • Technology:  “How  might  we  leverage  this  new  technology  in  the  marketplace?”   • Business:  “How  might  innovation  allow  us  to  grab  share  from  our  competitors  in   the  growing  market?”     2)  L  with  human  needs  and  balance  all  3  perspectives     • Innovate  experiences  that  make  life  better  for  people   • IDEO  ways  to  grow   o Create  growth  and  innovation  goal   o Assess  outcomes  to  manage  innovation   o Get  started     Brainstorming the IDEO Way     • Bosses  don’t  get  to  speak  first   • Stay  focused  on  the  topic   • Defer  judgment  to  avoid  interrupting  the  flow  of  ideas   • Build  on  the  ideas  of  others   • hold  only  one  conversation  at  a  time   • go  for  quantity   • Everybody  doesn’t  need  a  turn   • No  experts  period   • Anything  goes,  wacky  is  fine     • Be  Visual   • If  an  idea  doesn’t  sound  ridiculous  at  first,  it’s  probably  not  a  good  idea         12  
  • 13.
    Prototyping the IDEOWay   Deep  dive  approach:  focus  intensively  for  an  entire  day  to  generate  a  large  number  of   creative  concepts,  weed  out  weak  ideas,  and  start  prototyping. Do  immediately  after   thinking!   Development  process: • Phase  0-­‐  understand  and  observe’  Team  seeks  to  understand  the  client’s   business  and  determining  the  feasibility  of  a  product.  By  the  end,  should  have   summarized  major  discoveries  and  the  marketplace  and  its  users   • Phase  1-­‐  visualize/realize;  choose  a  product  direction  based  on  ideas,   technologies,  and  market  perceptions.  Goal  is  to  work  with  the  client  enough  to   have  brought  3d  models  and  a  general  manufacturing  strategy  of  product   • Phase  2-­‐  evaluating/refining;  enhanced  prototype  designs  through  testing,   culminates  with  a  “looks  like”  design  model • Phase  3-­‐  implement/detailed  engineering;  completed  product  design  and   verified  the  final  product  worked  and  could  be  manufactured.  Teams  delivered  a   fully  functional  design  model.   • Phase  4-­‐  implement/manufacturing  liaison;  team  ensured  smooth  product   release   Appendix E: Nike Zoo innovation insight   1.Explore  (in  all  areas  of  the  world;  try  to  blend  distinct  concepts;  always  keep  end  goal   in  mind)   2.Discover   3.Create   4.Connect  (with  the  business;  how  does  this  innovation  fit  the  needs/demands  of  the   company  and  the  consumers?)   5.Test   6.Refine   7.Deliver                 13  
  • 14.
      Appendix F: RotationalDevelopment Program   Appendix G: Offsite Plan Example   Theme:  Outside-­‐in  /  Inside-­‐out   Goal:  To  increase  perspective  to  increase  ideas  to  increase  potential  while  team  building   along  the  way–  every  activity  down  to  the  meals  should  expand  thinking  and  bring  the   group  together.     3  Day  Schedule:   Day  1:  Guest  Speaker,  Nike  employees    external  issue   Day  2:  Nike  Leadership  presentation,  non-­‐Nike  people    Nike-­‐specific  issue   Day  3:  Debrief,  apply  learnings     Day  1:  Inside-­‐out   9:00  AM  -­‐  Breakfast:  Vegan   10:30  AM  -­‐  Creative  Space:  Speaker   • External  company  shares  problems  (Aligns  with  Nike  strategy)   • Case  competition  introduction  –  picking  teams  (playground  style)       14  
  • 15.
    11:30  AM  –  Breakout  in  teams   1:00  PM  –  Lunch:  Dim  Sum   2:00  PM  –  More  time  to  work  in  teams   5:00  PM  –  Presentations  to  Panel:  Professor,  Nike  rep,  guest  org  rep,  athlete,  local   influencer   7:00  PM  -­‐  Dinner  w/Panel  –  Seafood   • Prizes/announcements/sharing     Day  2:  Outside-­‐in   9:00  AM  –  Breakfast:  Coffee/Pastries   10:00  AM  –  Nike  Leadership:  talk  strategy  and  Nike-­‐specific  issues   11:00  AM  –  Brainstorming  in  groups   12:00  PM  –  Regroup,  share  findings   1:00  PM  –  Lunch:  Stanford  Mess  Hall   2:00  PM  –  Social  outing,  sports  event   6:00  PM  –  Dinner  –  cooking  class   • Open  debriefing  during  dinner     Day  3:  Homecoming  (1/2  day)   9:00  AM  –  Breakfast   10:00  AM  –  Debrief   12:00  PM  –  Lunch   Leave   Regroup  @  WHQ  w/team  to  share  key  learnings   Feedback  from  traveling  team  on  effectiveness/suggestions     Experience  enhancers:   Integrate  social  media  to  catalyze  sharing,  connecting,  creativity,  and  ideating.   • Twitter  sidebars  during  presentations,  listeners  can  tweet  questions  or  ideas  in   real  time   • Share  music  via  spotify   • Share  photos  from  event  with  instagr.am  and  leverage  facebook  to  vote  on  best   • Unlock  badges  with  foursquare  which  lead  to  special  offsite  privileges  (maybe   this  is  how  you  determine  who  the  Nike  case  competition  judge  is)   • Nike+  (most  mile  ran  during,  etc.)     Appendix G: Your New Digital Roster     The  easiest  way  to  begin  to  understand  how  digital  concepts  can  integrate  with  the   supply  chain  is  to  start  integrating  with  the  Nike  digital  department.  This  list  of  key   digital  contacts  should  help.         15  
  • 16.
    Everybody  on  this  list  sits  in  Jerry  Rice  (East  Wing)  floor  2     You  know  how  to  turn  any  name  into  an  @nike.com  email  address!   Evan  Baechler  –  Global  Digital  Intern  (Super  accessible)  -­‐-­‐  Baechler@uoregon.edu     Jesse  Stollak  –  Global  Digital  Brand  &  Innovation  Director  (the  big  boss)     Vikrant  (Vik)  Singh  –  Global  Digital  Community  Manager  (Social  Media  expert)     Anthony  Abernathy  –  Global  Digital  Cross  Category  Lead  (Strategy  expert)     Ezra  Martin  –  Global  Digital  Production  platforms  specialist       John  Agnew  –  Operating  Systems,  Applications,  Mobile  specialist       Andy  Pawlowski  –  Global  Digital  Basketball  Lead       Jacy  Weyer  –  Global  Digital  Action  Sports  Lead       Laura  West  –  Global  Digital  Running  Lead     Danny  Tawiah  –  Global  Digital  Athletic  Training  Lead     Dorinda  Ross  –  Global  Digital  Woman’s  Training  Lead     Laura  Adams  –  Digital  advocacy  producer  for  SB&I  (NBW  digital  lead)     Supply  Chain’s  Digital  Scavenger  Hunt  /  Checklist Digital Scavenger Hunt   The  key  to  thinking  digitally  is  acting  digitally.  We’ve  set  up  some  fun,  interactive  digital   experiences  to  help  you  develop  a  digital  mindset.  This  will  al  you  to  find  new   information  sources,  test  drive  new  digital  tools,  and  get  acclimated  with  functionality   and  terminology!     Your New Gmail Account This  Gmail  will  act  as  your  new  digital  hub  throughout  this  digital  experience.   Email:  Just.Do.Innovation@Gmail.com   Password:  improve!   Security  question:  What  Company  do  I  work  for?   Answer:  nike         16  
  • 17.
          Task1: Twitter We’ve  set  up  a  Twitter  account  for  you.  This  will  help  you  find  content  and  people   related  to  supply  chain,  innovation,  digital,  nike,  current  events,  everything.     Twitter  account  (called  a  twitter  handle):  @JustDoInnov   Password:  improve!     Here  is  your  Twitter  Checklist      Write  your  purpose:  in  profile  settings  fill  in  your  Twitter   bio  –  brevity  is  key      We  set  you  up  with  a  few  followers  now  find  some  more.  Either  search   for  topics  that  interest  you  or  click  on  one  of  the  people  you  follow  and   see  who  they  follow      Now  set  up  a  list.  You  can  organize  an  inbox  of  tweets  by  assigning   people  you  follow  to  lists.  This  can  help  compartmentalize  your  Twitter   stream.      @Ebaechler  has  tweeted  @JustDoInnov  be  sure  to  respond,  and   checkout  his  recommendations.  Be  sure  to  tweet  back      Download  the  Twitter  mobile  app  and  explore  on  the  go!     Task 2: Google+ There  should  be  an  invitation  to  Google+  waiting  in  your  inbox.  This  is   Google’s  new  social  network.  Google+  is  still  in  beta  –  which  means  most   people  haven’t  joined  yet.  The  people  who  have  are  early  adopters,  the   tech  hungry,  and  trendsetters.  By  joining  you’ll  be  among  the  elite  of  social   digital.               17  
  • 18.
    Google+  Checklist      Establish  a  Supply-­‐chain  specific  circle  (circles  are  groupings  for  your   G+  friends.  You  can  disseminated  information  to  specific  circles   without  your  other  friends  or  the  public  having  access)      Invite  all  your  supply  chain  co-­‐workers  to  join  (they’ll  need  a  Gmail   account)      Start  sharing  ideas  and  communicating  internally  via  google+  try   organizing  a  brainstorm  in  the  physical  world  solely  by  using  G+      Test  Drive  a  hangout.  Hangouts  may  work  as  a  digital  meeting  space   down  the  road      Get  the  mobile  app      Tweet  about  your  experiences  (@ebaechler  would  love  an  update)     Task 3: Google Reader Google  reader  is  an  RSS  feed  where  you  can  subscribe  to  blogs  and  new  sources  online   to  keep  up  on  current  events,  trends,  ideas,  and  people.  You  can  access  you  reader   dashboard  while  logged  into  the  just.do.innovation@gmail.com  email  account.  Just  click   on  the  reader  link  in  the  top-­‐left  navigation  bar.     You’ll  want  to  be  the  boss  of  your  own  RSS  feed  because  if  you  add  too  much  there  is   too  much  pollution.  We’ve  loaded  two  sources  only  so  it’s  up  to  you  to  take  charge.     Google  Reader  Checklist      Add  a  new  source  to  your  RSS  feed  –  Try  finding  an   interesting  blog  on  twitter  and  then  loading  them  in.  Click   ‘Add  a  subscription’  then  simply  copy  the  url  for  the  blog  /   source  to  add  it  to  your  feed.         18  
  • 19.
    Task 4: GroupMe GroupMe  is  a  group  texting  social  networking  tool.  It  is  a  great  way  to  ideate  on   the  go  with  anybody  in  the  world.  You’ll  need  a  mobile  number  to  set  up  your   account,  so  we  didn’t  set  one  up  for  you.  http://groupme.com/     GroupMe  Checklist      Designated  an  employee  to  set  up  a  GroupMe  account.      Create  a  room  –  make  sure  the  room  title  /  topic  is  clear  so  that  the   scope  of  the  conversation  remains  focused.  The  topic  could  be   around  a  specific  problem  needing  to  be  solved  or  a  brainstorm   around  additional  ways  to  innovate.      Add  Evan  Baechler  to  the  list  503-­‐701-­‐8868  so  the  conversation  has   some  young,  outside  perspective.     Task 5: Tumblr Now  that  you’ve  set  up  all  these  tool  s  to  get  smarter,  get  faster,  and   ultimately  work  toward  a  better,  more  innovative  supply  chain,  you’ll   need  a  place  to  share  your  most  notable  content.    Tumblr  is  a  super-­‐ simple  blogging  site.  Try  setting  one  up  and  seeing  if  the  platform  fits  to  your   information  sharing  needs.  Here  is  an  example  of  a  tumblr  blog,  the  global  digital   department  maintains  as  a  hub  for  link  sharing.  http://linkcanvas.tumblr.com/     Tumblr  Checklist      Set  up  a  Tumblr  account  and  circulate  the  link  to  people  who  could   benefit  from  posted  content      Locate  the  designated  email  so  that  you  can  post  via  email  remotely.   http://www.tumblr.com/goodies      Post  a  link  or  two  a  day  for  a  week  and  evaluate  if  you  and  your  team   are  smarter  and  innovative  by  Friday  you  can  pull  links  from  twitter,   Google+,  Google  Reader,  and  from  internet  searches       19  
  • 20.
    Other Digital Tools Here  is  a  list  of  other  digital  tools  that  Supply  Chain  might  leverage  toward  innovation.     Evernote:    A  digital  file  cabinet.   Store,  organize,  and  edit,  all  digital     QR  codes:  2D  barcodes  read  by   smartphones  that  link  physical     content.  The  web  clipper  is  key.   content  to  digital     StumbleUpon:  bubbles  up     Spotify:  Music  sharing  network  –  it   interesting  web  content  based  on   filters  around  your  interests    might  replace  itunes.           Nike+:  you  know  what  this  is!  but     Foursquare:    A  mobile  network  in   using  it  will  help  identify  how  sport     which  users  check  into  locations   and  nike  integrate  socially/  digitally   and  ern  points/badges.       Tweetdeck:  a  desktop  app  that     Linkedin:  professional  social   optimizes  social  media  monitoring   network.  A  good  place  to  located   and  publishing     innovative  thinkers        Webex:  a  virtual  meeting   Quora:  A  social  network  organized   application   around  Q&A  –  potential  crowd   Stay in Touch! sourcing  opportunity     We’d   love  to  stay  involved  with   Nike  supply  chains  innovation.  Don’t  hesitate  to  email  (our  emails  are  on  pages  3-­‐4)  or   in  the  spirit  of  digital,  reach  out  via  twitter,  Linkedin,  Google+,  or  by  adding  us  to  your   GroupMe  conversations!     Evan  Baechler  -­‐  @ebaechler   Rory  Blanche   Tanner  Gardner  -­‐  @tannerdgardner   Bree  McArdle   Tierney  O’Rourke  -­‐  @tierneyorourke   Cydney  Ross  -­‐  @cydmarie16   Marika  Zumbro       20  
  • 21.
          21