Innovation and Reverse Logistics – Day #2 at the WIF2010

Posted by Seema Winsor on June 11, 2010 in Event-related blog postings, Innovation, World Innovation Forum

Seth Godin during Day 2 of World Innovation Forum 2010 (photo by www.PhotographybyDov.com)

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My walk from Grand Central Terminal, GCT, to the Nokia Theater on the second day of the World Innovation Forum 2010 was quite an interesting one. First, I ran into a former colleague of mine who used to work with me in the supply chain, and now is at a hedge fund; then I met a fellow commuter who used to be a messenger and tour guide in NYC, but who now works for a company that is my company’s competition in the mail management services. I couldn’t help connecting the dots between my conversations with both of them, and how in those few moments of unanticipated interactions, I had covered the innovation in engineering, discussed the strategy challenge of reverse logistics, discovered how someone else was managing packages in NYC and also learned that a new steakhouse was coming to 43rd Street somewhere between Madison and the Avenue of the Americas. I am not from NYC and this was my first time there on my own. But I already felt that I was part of the community on the busy streets, community of individuals getting ready to start their day, stopping to say hello and yet not losing sight of their intended destination and goal for the day. This was a good feeling to start the day with, that gave me a new excitement to explore the world of innovation forum on day#2 and connect the dots for reverse logistics. I had no idea at this time what I was about to discover…. and that the morning walk from GCT to Nokia was a sign of things to come.

It never ceases to surprise me how many, if not most, continue to have a stereotypical understanding of supply chain and reverse logistics. Innovation, supply chain and reverse logistics are rarely used together in a conversation. I believe that supply chain, including the supply chain of returns, is the heartbeat of a company offering products as services. Whether it’s a physical box or a digital content that gets delivered to a customer (or returned by a customer), supply chain flexibility and efficiency drives the bottom line of every business model. We can’t talk about business model innovation without including innovation in the supply chain in the conversation. Since innovation is about creating value and not about incremental improvements or cost reductions, supply chain innovation is at the heart of business model innovation.

When Bill Taylor, President of Panasonic System Networks Company of America gave a live demonstration of Panasonic’s HD Visual Communications System, he also explained how this innovation was enabled by supply chain’s ability to pull together various components to make system. In my mind I could visualize an innovative supply chain process empowering Panasonic to deliver “an innovation that replicates the experience of being in the same room with your remote colleagues”. He and I talked about the reverse logistics and he left with my business card and a promise to connect me with his operations people.

The agenda for the day covered marketing innovation, educational opportunities, green economy, building a better world, and innovation & design. Reverse Logistics was not visible on the table and I did not come across anyone who was excited about discussing it either. But it was my lucky day. All the speakers spoke my language of operations and business models, and I felt as if they were validating my ideas, asking me questions, and answering many of my questions. I had become part of the innovation community – more specifically the business model innovation community. It was a wonderful feeling.

Seth Godin’s presentation on marketing innovation further confirmed that the new marketing model of building communities around your products and services requires a new and innovative response from supply chain and others in the company. He compared products and services to works of art, created collectively by the “artists” in the company. I couldn’t agree more with him on this.

Last year I developed a “Design for Out/Sourcing model” that could enable a company to source and outsource according to their understanding of their core competencies and growth opportunities. Innovative supply chain models allow for prudent sourcing and outsourcing decisions, thereby increasing the value of products and services. Listening to Ursula Burns, CEO of Xerox, talk about changes made at Xerox, was like having a personal conversation with a dear friend who knows exactly what I am saying and why.

Design for out/sourcing can’t be effective without taking into account the entire life cycle of a product or service. The relevance of “green economy” is at the heart of a supply chain – forward to reverse, because it reduces waste and promotes reuse of parts. Products designed appropriately for supply chain tend to have less packaging, more reuse of parts and eco-friendly disposal materials. This is what increases the value of reverse logistics. Joel Makower’s strategies for the green economy & Jeff Hollender’s ideas on building a better world resonated with my thoughts on what innovating the reverse logistics would be worth to a business.

My favorite part of the forum was when I heard Robert Brunner’s speak about ‘How to use design for customer experience supply chain management’. I felt he inadvertently solved the mystery of Apple’s success for me when he shared that one of the first things he had to do, when he joined Apple, was to take training in total quality management. If a company wants to create a connected community for its products and services, it must also foster a collaboration and understanding of its experts in-house. And what better way than to have designers learn about total quality and have supply chain folks learn about “strategic innovation through product design, and its brand and surrounding experience”. I am convinced, more than ever that we are in a revolution of business innovation, that will define new models for delivering profitable products and services to a community of customers very engaged in making decisions.

Overall I had a good experience at the WIF2010. Not only did it validate my work, it also gave me the tools and encouragement to think differently and challenge norms and institutional wisdom. I am on board with the revolution around innovation of business models, especially the ones that include reverse logistics innovation.

Don’t miss my thoughts from DAY ONE of the World Innovation Forum.

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Tags: #WIF10, Pitney Bowes, Reversed Logistics, Seema Winsor, supply chain, World Innovation Forum 2010