How GE's Innovation Toolkit can be used to drive Innovation and Operational Improvement in Retail Companies

1. GE’s Tool Kit:
How to Foster Innovation
and Operational
Improvement within a Retail
Organization
Jonathan Wainberg Mike LaChapelle
Vice President Vice President
GE Retail Finance GE Commercial Finance

2. What is Access GE?
At the Customer, For the Customer (ACFC)
“The goal of our ACFC initiative is to bring the entire ‘GE toolkit’ to our
Customers to help ensure their success..whatever GE capabilities are most
important to them and will have the biggest impact on their bottom line.”
Jeffrey Immelt
Chairman and CEO, GE

3. Our Toolkit
Access…GE’s Tools & Methodologies
A set of game changing tools and process improvement methodologies proven
successful within GE…and with customers
• Collaborative Problem Solving (Work-Out) • Lean
• Change Management (CAP) Overview / Simulation
• Acquisition Integration Kaizen Events including 5S
• Strategic Growth Workshop Value Stream Mapping
• GE Learning Center (Crotonville) SMED / Quick Changeovers
CFO Day • Six Sigma
Acquisition Integration Roundtable Executive Overview / Simulation
Leadership for Customers Green Belt Training
• Team Development Project Coaching
• Innovation Facilitation Tools • Process Mapping
• Strategic Planning Essentials • Project Management Training

4. Our Toolkit
Access…GE’s People & Experience
Access GE experts to leverage our industry breadth & functional knowledge
Function / Process GE Core Businesses Emerging Markets
HR Performance Management Infrastructure – Aircraft, Rail, Energy China
Integrity & Diversity Industrial – Appliances, Lighting India
Finance - Treasury & Hedging Healthcare Eastern Europe
Sourcing & Outsourcing NBC Universal Russia
Call Center Management GE Money Brazil
Environmental, Health, Safety Commercial Finance
New Product Introduction *Operations in 100 countries GE Initiatives
GE Operating Rhythm Growth as a Process
Shipping & Logistics Staff Industry Expertise Net Promoter Score
Sales Force Effectiveness Aerospace, Auto, Chemicals, Ecomagination
IT & Digitization Communications and Entertainment, Globalization
Shared Services – Payroll, T&L Construction, Food/Beverage, Enterprise Selling
Marketing & Branding Forest Products, Manufacturing,
Healthcare, Media, Retail, Steel,
Transportation

5. GE Retail Partners
Luxury, Discounters, Apparel, Jewelry, Home Furnishings, Consumer Electronics,
Auto/Tire, Sporting Goods, Health & Personal Care

6. Retail ACFC Examples
Customer Activity
Retail Drug Store Chain Increase Customer Traffic
Electronics Retailer Improve Order-to-Fulfillment Process
Sporting Goods Implement Warehouse Management System
Computer Retailer Project Management Training
Furniture Retailer Business Continuity Planning
Department Store Chain HR/Benefits Communication Process
Department Store Chain Internal Store Communications
Sporting Goods Selling Skills
Department Store Chain Increase Inventory Turns

7. ACFC Snapshot: Improved Store Communications
Customer
Department Store Chain
Customer Issues and Objectives
• Redesign Store Communications to better serve Store Managers and Staff
• Improve Timeliness and Accuracy of Communication
• Reduce Repetition, Focus on Critical Items
ACFC Engagement
• GE facilitated a 1 ½ day Work-Out on Store Communications
Customer Benefit
• Streamlined process for Store Communications designed around needs of Store
Managers and Staff
"Work-Out was a great tool to produce meaningful solutions to a complex problem in a simple
way. Really enjoyed the session. Exceeded expectations." -- Store Manager
"Great way to raise/hash through the issues/opportunities quickly. Guardrails help maintain
structure to conversation" -- Store Operations Manager
"Lots of value taken from this. Looking forward to sharing this with my peers." -- Buyer
"Actionable, understandable, well thought out. Very good tool! Over exceeded my expectation"
-- Brand Director

8. ACFC Snapshot: Change Acceleration Process
Customer
Electronics Retailer
Customer Issues and Objectives
• Learn about GE’s Change Acceleration Process (CAP)
• Apply CAP Tools to In-Store Services Reorganization/Rebranding Initiative
• Ensure Associates’ Support for Initiative
ACFC Engagement
• GE facilitated a 2 day CAP Session
Customer Benefit
• Detailed Action Plan for Successful Launch of Rebranding Initiative
"Very valuable - learned a great deal that I will apply.“ – Director of Services, Retail
"Very well done....extremely professional and you did a very good job calibrating the
pace and level of detail to the audience and situation.“ - Director of Business
Transformation
"Greatly exceeded expectations. Facilitators had great insight into our goals and
mission.“ – Director of Retail Transformation

9. ACFC Snapshot: Inventory Management
Customer
Specialty Retailer
Customer Issues and Objectives
• Learn about GE Best Practices in Inventory Management
• Develop Action Plan for Inventory Reduction
• Develop Experience in Team Based Problem Solving
ACFC Engagement
• GE facilitated a 2 day Work-OutTM on Inventory Management
Customer Benefit
• Clear plan to tackle $40 million Inventory Reduction target
"Very well organized, presented very well. Thanks" - Senior Manager, Merchandise Planning
and Allocation
"Insightfully facilitated, good real-world analogies, interesting info that was never boring,
useful techniques. Glad to see we did this." - Senior VP Manufacturing & Quality Control
"Liked the structure, tools, and the ling to a real opportunity for my team and company" - VP
Merchandise Planning and Allocation
"Process is excellent for producing workable objectives" - Executive Vice President/CIO

10. ACFC Snapshot: Increased Customer Traffic
Customer
USA Drug
Customer Issues and Objectives
• Improve Customer Service
• Increase Customer Traffic
ACFC Engagement
• GE facilitated and supported USA Drug through the development of a customer service
program that included additional training, sharing best practices, measurement
systems, and reward and recognition programs
• The customer service program was rolled out in 18 stores for 14 months
Customer Benefit
• Same store customer count up 3.4%
• Prescription Sales Growth rate increased 1.6X
“We were very impressed with GE’s ACFC program. We expected our lenders to be focused on
our performance, but GE went above & beyond. They actually helped us improve our operating
performance. The initiative delivered a tremendous level of value and helped drive our business
growth.”
John Trainor
USA Drug, SVP Finance

11. Company Highlights
• Tourneau is the world’s leading retailer of luxury watches
• We operate:
– 34 stores in 13 states
– Watchgear: 8 stores in 4 states
– Outlets: 3 in 3 states
– 6 stores in the Caribbean and China
• Each Senior management member has at least 20 years retail
experience with an average of 8 years with the Company

12. Tourneau Projects with GE
GE Tools i.e.
• Lean - White Plains Backroom Project
• Innovation Workshop – Summer 2007

13. GE Tool: Lean
Lean- White Plains Backroom Project
Objective: Streamline Back Office Processes and
Organize Record Keeping in Tourneau’s White
Plains Store

14. Tourneau “Lean” 5S Event: Store Back Office

15. What is 5S?
1. Sort – Eliminate unneeded items
2. Simplify – A place for everything
3. Shine or Sweep – Keep the workplace
clean
4. Standardize – Identify work standards
5. Sustain or Self Discipline – Keep it going!

16. Before

17. During

18. After

19. Details

20. Tourneau “Lean” 5S Event: Store Back Office
Results
• Unnecessary Paperwork and Promotional
Items Eliminated
• Space Freed Up
• Retained Items Labeled for Easy Retrieval
and Timely Disposal
• Paperwork Handling Processes Improved

21. GE Tools: Innovation Workshop June 2007
Held at GE Global Training Center in Crotonville, NY
• Interacted with other GE Retail Customers
• Shared insights from different business models
(Grocery, Sporting Goods, Furniture)
• During break out session, utilized Customer
Journey Mapping tool
• Generated new initiative creating unique Top
Customer Reward program utilizing Vendor
Incentives

22. GE Innovation Tools & Exercises
• INNOVATION ASSUMPTIONS • WHAT BOX ARE YOU IN?
Discuss the common assumptions about innovation to Re-define your context to find new customers and
start a dialogue. markets.
• DEFINING AND CLASSIFYING • CUSTOMER ECOSYSTEMS
INNOVATION Map the system of players in the industry to innovate
Explore various types of innovations to clarify your own more holistically.
innovation goals.
• CUSTOMER PROFILING
• INNOVATION FRAMEWORK Explore customers’ lives and motivations to uncover
Discover the mindset and behaviors essential to effective unmet needs.
innovation.
• MAPPING CUSTOMER JOURNEYS
• ADOPTING A CURIOUS MINDSET Look at the customers’ entire experiences to find ways to
Ask the simple questions that challenge our most basic create value at every touchpoint.
assumptions about the world around us.
• PROTOTYPING YOUR IDEAS
• RINGSIDE Unstick your thinking and get clearer about how to test
Look at how major trends are affecting our business and and evaluate your idea.
providing new opportunities.
• DEVELOPING INNOVATION TRAITS
• HYPOTHESIS MAPPING Diagnose your strengths and weaknesses on innovation
Sharpen your hypothesis and determine the factors that traits.
will lead to success.
• INNOVATION ENVIRONMENTS
• UNLOCKING INNOVATION POTENTIAL Explore the types of environments that will best reinforce
(THE RIPPLE EFFECT) your innovation goals.
Trace the potential impact of an idea to get ahead of the • INNOVATION ARCHETYPES
changes it spawns. Learn the nine essential roles in innovation, and who in
your organization can play each role.

23. MAPPING CUSTOMER
JOURNEYS
LOOK AT THE THREE BASIC JOURNEY
STAGES TO IDENTIFY OPPORTUNITIES TO
CHANGE THE STATUS QUO AND ENHANCE
THE CUSTOMER EXPERIENCE.

24. Exploring the customer’s journey to
identify innovation opportunities.
• While no two experiences are the same, there are
three basic stages to every journey. Each provides
an opportunity to change the status quo and tap
into customers’ unmet needs.
AWARENESS COMMITMENT USAGE
We become aware and We use, enjoy, re-
We choose and we buy
we learn about a purchase, and share
specific goods,
product, service, or our experiences with
knowledge, or services.
brand. others.

25. Examples of customer journey
AWARENESS COMMITMENT USAGE
By focusing on Dell wanted to offer Dell backs up their
universities, Dell became customers cheap, purchases with 24 hour
widely used and known customizable PC s, so online and phone
by students who spread they reinvented how support, and onsite
word about the brand to consumers select and visits for the problems
their friends and family. purchase by selling they can’t solve over the
directly through an phone.
online portal.

26. CUSTOMER JOURNEY MAPPING
– Identify the customer (business
customer or end consumer
segment).
– Describe the customer’s current
experience and its anomalies or
points of frustration.
– Brainstorm what customers
desire, what is possible, and what
role your company can play.
– Identify which ideas could benefit
both types of customers.

27. At the Customer, For the Customer
Growing with Our Retail Partners