CASE STUDIES
Levi Strauss & Co . Reinvents an Old Standard Leave it to the company that actually invented jeans to continuously reinvent them . At the Levi Strauss & Co .' s Eureka Innovation Lab , researchers are using technology and scientific experimentation to change the way we think of the iconic brand .
The Eureka Innovation Lab is actually an open-space warehouse that looks like a factory and runs a lot like a test kitchen . The operation is only a few years old but the number of projects its team has designed , tested , recorded , and developed runs in the tens of thousands . At any given time , there are dozens of researchers with indigo-dyed hands plunging denim into vats of chemicals , adjusting ozone gas levels , and tossing pumice stones and jeans into great industrial washers . Through a continuous process of design ideation and rapid prototyping , the lab delivers a host of new products that are greener , last longer , are more comfortable , and appeal to a broader array of customers . Prior to opening its innovation lab , Levi Strauss & Co . was considered a company long overdue for change . Now , the company has set its sights on women . Exactly how does the oldest jean company in the world — the one that originally created virtually indestructible pants for miners — appeal to a gender that typically prefers fashion and comfort ? That ’ s the job of Bart Sights , senior director for technical innovation , who is particularly interested in the soaring sales of leisure athletic wear (“ athleisure wear ”) for women . In fact , it was the quest for a denim alternative to the yoga pant that drove Levi Strauss & Co . to make innovation a new priority . Through hands-on experimentation with chemicals and computer technology — and prototyping using new textiles — innovation lab teams are perfecting their own version of the yoga pant alternative .
Takeaways from the Eureka Innovation Lab :
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ÎINNOVATION STRATEGY SHOULD BE DATA-DRIVEN . No matter how creative the discovery process may seem , an innovation strategy should be exact . Levi ' s ® uses a recipe for each pair of jeans it designs , which includes a step-by-step guide to the manual , chemical , and mechanical processes that created it .
ÎINVENT Î FOR THE CUSTOMER . Even a privately-owned , family business like Levi Strauss & Co . must listen to the demands of change . Only through the discovery of consumer preference for comfort was the innovation lab team able to develop the right product .
ÎIT Î ’ S NEVER TOO LATE FOR REINVENTION . After a financial plateau , the 143-year-old iconic company uses innovation and the latest science to reconnect to its history and recreate its brand .
ÎDIVERSIFY Î
OR DIE . Diversification is critical to survival — whether that ’ s in products , services , delivery , packaging , or processes . Levi Strauss & Co . finally released its tight grip on an outdated , masculine image . In recognizing the need to target women , its decision to diversify likely prevented the company ’ s demise .
ÎREAD Î THE TEA LEAVES . Levi Strauss & Co . mistakenly misread the “ athleisure ” trend as a passing fad and has been playing catch-up ever since . A culture of innovation will ensure your business has a better ear for such indicators .
Top Lessons from Innovation Leaders
As the landscape for innovation evolves , businesses around the globe provide useful examples of innovation done right .
SQUARE : SEEK CONSTANT CHANGE Dominating the mobile point-of-sale market , Square owes much of its success to relentless evolution . To encourage collaboration , Square promotes “ hot desking ,” where no one is assigned a desk and employees regularly rotate workstations throughout the office .
IKEA ® : GIVE INNOVATION A PLACE TO THRIVE Employees of the largest furniture retailer in the world are not the only beneficiaries of a rich culture of innovation . IKEA ’ s innovation lab , Space10 , offers anyone the opportunity to use its space for development of new ideas it can take to market .
AIRBNB ® : BREAK THE STATUS QUO OR LEARN TO SURVIVE WHEN OTHERS DO With net revenues of $ 900 million last year , home-sharing titan Airbnb has already captured a significant segment of the traditional hospitality market . Now , hotels will need a strong innovation strategy to stay relevant among such status quo disruptors .
CVS ® : EMBRACE SOCIAL RESPONSIBILITY In a bold move , CVS discontinued its sales of tobacco products . Taking a stand , while risky , is relevant and increasingly expected in this community-conscious world .
TACO BELL ® : EXPLORE THE POWER OF RELATIONSHIP Businesses that are programmed to be on constant lookout for the competition sometimes miss a great opportunity for partnership . Taco Bell ’ s collaboration with Doritos ® is just one of the many successful , new product innovations the fast food chain has introduced lately .
As you build your own innovation strategy , Sterling National Bank can help you fund your plans for the future . Contact your relationship manager or call Client Services at 855.274.2800 .
CONNECT INNOVATION SUMMER 2016 // SNB . COM | 19