Tech startup Localz win John Lewis JLAB incubator award

John Lewis today announced Localz, a startup business specialising in micro-location technology, as the winner of JLAB, the retailer’s first ever technology business incubator. After 12 weeks of shaping and honing its solution within JLAB, Localz impressed the judging panel and takes home £100,000 in investment as well as the chance to trial its solution with John Lewis.

Innovation is at the heart of John Lewis and JLAB, our first tech incubator, has given us a new way to explore the technologies that will change how we all shop in the future. It’s been a hugely rewarding and educational experience, drawing on a diverse group of people from a wide variety of backgrounds and perspectives, and we have a very worthy winner who we’re looking forward to working with in the months ahead. I do very much believe that this is what our Founder Spedan Lewis would be doing if he was around today.

The initial entry period for JLAB saw hundreds of startups apply to take part, pitching their ideas for innovations that could shape the future of the retail experience. In May, Localz was picked as a finalist alongside four other impressive startup businesses: Musaic, SpaceDesigned, Tap2Connect and Viewsy. Over a 12-week period, the five finalists developed their ideas with the assistance of mentors from John Lewis as well as high-profile entrepreneurial figures including Luke Johnson, Chairman of Risk Capital Partners, Sara Murray OBE, founder of confused.com and Buddi, and Bindi Karia, Vice President Entrepreneur banking at Silicon Valley Bank. The final pitch day on 23rd September 2014 saw Localz emerge as the overall winner.

Localz’s technology gives customers the opportunity to take advantage of some enhanced services using their smartphone based on their precise location. It’s all about choice, designed to make shopping easier for those who wish to use it.

For example, it could automatically offer to trigger a customer’s Click & Collect order to be picked as they enter the shop to speed up the collection or help customers to navigate their way around one of our shops based on their online wish list.

Stuart Marks, partner in JLAB, said: “The quality of entries was exceptionally high and picking a winner proved to be a very difficult process. I am sure all the companies will go on to become very successful but there has to be a winner and in this case we felt that Localz has the potential to become a long term partner to John Lewis and to provide continuous innovation for their customers. We were fortunate to have an exceptional mentoring team who allowed all the companies to achieve their true potential during the time they were at JLAB.”

Tim Andrew, Commercial Director and Co-Founder of Localz, said: “JLAB has been an amazing experience for Localz from start to finish. The fact that my father was a Partner with John Lewis for over 30 years gave me a very personal reason to want to be a part of it, in order to try and help the company that supported me and my family when I was growing up.  The support and guidance that John Lewis provided throughout the incubation period helped us refine our offering for the European market. They also gave us access to successful entrepreneurs and mentors from diverse backgrounds and industries which allowed us to accelerate our development.”

Localz’s plans for the £100k investment focus on its new UK operations. The company will be further developing its technology in conjunction with John Lewis to support the new generation of mobile and micro-location experiences, and preparing to launch live trials in store. To support these goals, Localz is also looking to hire new talent to work in its London-based team.

JLAB was part of John Lewis’s 150 year celebrations. For more information, visit www.jlab.co.uk.

 

The full list of external JLAB mentors is as follows:

  • Luke Johnson, Chairman of Risk Capital Partners
  • Sara Murray OBE, founder of confused.com
  • Graham Clempson, European Managing Partner at MidOcean Partners
  • Stephanie Hussels, Senior Lecturer in Entrepreneurship and Full-Time MBA Director Designate at Cranfield University
  • George Berkowski, Chairman of MIT Enterprise Forum UK
  • Bindi Karia, Vice President, Origination and Entrepreneur Commercial Banking at Silicon Valley Bank

My Introduction to the Air Transport IT Summit 2014

Ladies and gentlemen, welcome to the 2014 Air Transport IT Summit, jointly hosted by SITA and Airline Business.

This year the theme for our IT Summit is: ‘More Ground To Break’. In choosing this theme we wanted to capture the exciting things that airlines and airports are achieving with IT and communications. But we also wanted to look ahead to consider how to build on those achievements, and focus on the potential for technology to deliver even more value to the air transport industry.

In preparing for this Summit, our research with previous delegates and customers told us that you wanted to hear about how IT can drive industry transformation, and how IT supports the industry’s change agenda. What trends and technologies will help us evolve the passenger experience – while anticipating the demands of air travel of tomorrow?

One major factor shaping air travel is the increasing expectations of tech-savvy passengers. Nine out of ten of the world’s airline passengers say technology helps them when traveling… according to SITA’s Passenger IT Trends Survey. Over three quarters of them carry a smart phone when they travel…compared to just 28% in 2010.

Yet usage of mobile services, such as: check-in and booking – is still below 5%. With passengers at the edge of really ‘going mobile’… this is an excellent example of an opportunity to break more ground.

We must also plan for growth. By 2017, we can expect: 4 billion passengers, a growth rate of 5.6% a year… and 5.5 million more tonnes of freight – a growth rate of 3.6%… that brings the total to 37 million freight tonnes.

From an airport perspective, ACI figures show that passenger numbers will ‘more than double’ to 6 billion by 2031.

With that order of growth, along with higher passenger expectations, our industry will need to break new ground – in order to work in much smarter ways. This means we must harness the full potential of technology. We know the industry recognizes the value that technology can bring to its customers and operations.

Three-quarters of airlines expect to invest more heavily in new IT projects this year – according to our 2014 Airline IT Trends Survey. This is corroborated by our latest Airport I.T. Trends Survey – which records a rise in airports’ total I.T. spend to $6bn in 2013… versus $4.3bn in 2010.

So if I may be so bold as to propose the drivers of the industry’s IT, they are:

  • Improving airport operations;
  • Enhancing the passenger experience throughout their journey; and
  • Improving manpower efficiency and effectiveness, and
  • Services for connected aircraft

Common to all of these are quality data and business intelligence. Better intelligence is the heartbeat of a smarter air transport industry. 100% of airlines and 90% of airports are investing to provide business intelligence across their operations – according to our IT Trends Surveys.

Within the 24/7 ‘connected everywhere’ air transport environment… ground-breaking change will come from the power of this intelligence combined with advances in:

  • Social media…
  • Mobile…
  • Analytics, and
  • The Cloud.

This combination lies at the root of services to passengers:

  • from managing flight disruptions
  • real-time flight and bag status information
  • to searching for fares.

We have, I suggest, only just begun to scratch the surface of the potential in: merchandising… tailored advertising… personalized customer interactions… and more.  This is across multiple touchpoints and channels, on the ground, and now of course, in the air.

As we move towards real-time analysis and use of data, as well as predictive and prescriptive analytics, there is great potential for airlines and airports to evolve increasingly smarter operations.

To truly harness this potential, we must work together to exploit the data and intelligence that will truly break new ground for our passengers and operations.

JLAB – Latest News

Screenshot 2014-03-02 09.43.09

JLAB – the John Lewis Tech Incubator – closed for entries at midnight on the Thursday before Easter and we have just had a chance to look at what’s come in.

We are very excited about the amazing amount of interest in JLAB.  The number of fully completed applications was 163, with no fewer than 84 being completed in the final two days.  I feel this shows how much care, effort and research the applicants have put in, to ensure that their applications resonate with the JLAB selectors.
We are rather humbled by such interest and attention to detail.

I am pleased to say that the applications range widely, from retail theatre to health monitoring applications. They include social interaction applications and even virtual fashion assistants.

The next stage for JLAB involves reviewing each application in preparation for the first ‘Pitch Day’ which is going to take place on the 20th May.

30 successful applicants will spend the day pitching their ideas to the distinguished JLAB Panel which will include our recently announced mentors.  From there, five successful applicants will be selected to take part in the 15-week accelerator phase.

Finally, the winner of the prize will be announced in September, with the prospect of their idea being rolled out across John Lewis.

 

Customer Trends for 2014-15

This post isn’t all about JLAB but I am pleased to say that the interest continues at a high level in the media and from potential entrants.

With JLAB in mind, I’ve been thinking about the prominence of technology and innovation as the engine of changing times for retail in the UK.    At the Retail Week Awards last Thursday, for instance, Chris Brook-Carter of Retail Week  said in his introductory speech:

‘Have the rules that define British retailing changed irrevocably under the cultural and economic forces that have driven the recent evolution of consumer behaviour?   Rapid digitalisation, combined with a reappraisal of financial norms, has broken down old barriers but opened new pitfalls too.   The Oracle Retail Week Awards is more than a roll call of the leading achievements in the industry. It is a window into the industry’s development. Those looking for themes this year will note how closely the roster of winners reflects the opportunities these changing times have given birth to.’

John Lewis was fortunate to be recognised as the Multi-Channel Retailer of the Year for the second year running.

Rather than reflect on the past, I thought we should look ahead.  So I had a word with John Vary, our Innovation Manager and JLAB leader, about what are the Mega Trends for Customers in 2014-15.  This is what he came up with, with a few thoughts thrown in by me:

1) Multiple touch points

We are increasingly expecting things which interact with all our senses, offer us a range of touch points to play with, and involve us  in immersive new experiences – see larger HD TVs and game consoles.

2) Hyper-efficiency

We are seeking ever-smarter and more efficient ways to solve age-old issues such as keeping fit, lack of space and, most of all, limited time – see wearables and home control technology like Nest.

3) The open industrial revolution

Science is no longer a closed world, just for us geeks. Digital and technological advances are enabling more of us to create in new ways, perhaps giving us a new appreciation of the digital hardware and apps as things of beauty – see the iPods, iPhones, iPads, brilliantly designed and sold to millions.

4) Escape

In a world of austerity and grown-up responsibilities, consumers have an increasing desire to let go, let loose and indulge in child-like escapism – see GTA and Candy Crush on everyone’s mobile.

5) Mindfulness

In a world full of hype and surface interactions, people are seeking depth and meaning. They are craving time away from the always-on stimulus of the media, making their leisure time more about self-development – see learned groups on Twitter discussing The War of 1812, Norfolk wildlife, crows and everything else…..

6) Super personalisation

Personalisation has been taken out of the hands of consumers. So it’s not just the bespoke products you select – it can be the bespoke products that find you. Advances in technology mean that producers are increasingly able to know consumers and give them what they want – see most retail web sites these days.

And finally, here is a rather jolly picture from the Retail Week Awards last week:
1317451_Postcode_Anywhere_Multi_Channel_Retailer

CC4G!

IMG_2015

I was lucky enough recently to award prizes to the Computer Clubs for Girls (CC4G) which is run by some of our female John Lewis Partners in St Vincent’s R C Primary School next to Westminster Cathedral in London.

CC4G is a programme run by e-skillsUK to help address the gender imbalance in Technology which starts with the shocking lack of girls gaining ICT qualifications in schools – only 9% of A Level students are girls – and only 15% carrying on to study Computer Science at university.

CC4G is a club designed for girls.  It shows the exciting ways that technology is used in music, sport and fashion through interactive and fun games and challenges.

It was inspiring to meet the class of 10 and 11 year olds who had done projects on building a website.  The subjects included fashion and nail-art!  They were all well-designed, brightly coloured and fun.  Even more impressive, each of the girls stood up and talked about their designs and why they had enjoyed building their sites.  Some even said why they were now interested in taking up IT!

IMG_2003

How CC4G works is that a group – in this case IT Partners from the John Lewis IT Directorate – or parents decide to support a “computer club” for school girls, usually aged 10 to 12.  They need to do the security checks to work in a school, of course.  They can then download materials from the CC4G website which enable them to run club sessions on fun topics that girls report that they enjoy.

When St Josephs came in for the prize-giving our team showed them how we are piloting RFID tags in clothes in our shops.  Normally the Club takes place over lunch time in the school.

Great fun was had by all!

IMG_2005

Since 2005, when eskillsUK launched the programme, more than 135,000 girls in over 3,800 schools have experienced CC4G.  84% of girls involved in CC4G state they are more likely to consider further education or a career in technology as a result of CC4G.  98% of teachers who run the clubs say that the girls’ IT confidence levels have improved.

If anyone is interested in running a CC4G, then you can see the materials at www.cc4g.net   There is 2-week free trial and then a licence costs £350, which hopefully companies will feel is well worth while part of their Corporate Social Responsibility (CSR) outreach.

We received the school’s permission to take and display these pictures.

As an Airline, which Retailer are you like?

On the 18-20th June, airlines at the Air Transport IT Summit will be reflecting on how IT can help them boost their profitability and efficiency, and bring about better ways of working. As Chair of SITA, the air transport provider, I will be host at the Summit.

Among the many topics, ancillary sales will be one area under scrutiny at the event. With the airline industry as a whole just about achieving profitability in tough conditions – including slowing economic growth and rising oil prices – ways of boosting revenues through retailing are clearly high on the industry’s agenda.

I believe there are real opportunities here for airlines. Ancillary sales are claimed to have delivered as much as 5% of global airline revenues in 2012, according to estimates from IdeaWorksCompany. At the same time, 100% of airlines now have a presence online in the ‘virtual high street’, selling through their web sites, according to the Airline IT Trends Survey by SITA and Airline Business.

So many airlines are focused on ways of increasing retail revenues. In addition to the web, airlines now have new passenger systems, big data, social media and other new technologies at their disposal, which can enable them to become much more effective air transport retailers.

What do I mean by this?  Airlines will be able to make personalised offers to passengers, presenting an array of additional products and services that can be bought and making recommendations to customers in ways similar to Amazon and other retailers. There are opportunities to up-sell and cross-sell every time a passenger interacts digitally with the airline. Harnessing social media and big data will also enable airlines to look beyond their immediate loyalty programmes and target other potential customers with customized smart offers.

But I have a word of caution. While the technologies are definitely there to enable increase retail activity, airlines need to be sure of what their customers will or won’t find acceptable when they receive a targeted offer. There are boundaries. So before you embark on this journey of ‘retail enablement’, as an airline find your retailer analogy and ask yourself: which retailer are you like?

The topic will be discussed in detail in the next issue of Air Transport IT Review, to be available at the time of the Air Transport IT Summit.  

You can join the conversation on the Linked In ‘Air Transport Information Technology’ group. 
http://www.linkedin.com/groupItem?view=&gid=4443272&type=member&item=240648445&qid=55bb10fc-c497-42ef-a981-8dd3d6f31719&trk=group_most_recent_rich-0-b-ttl&goback=.gsm_4443272_1_*2_*2_*2_lna_PENDING_*2.gmr_4443272.gde_4443272_member_240648445.gmr_4443272

And you can follow this year’s IT Summit at #ATIS2013

Success Online – It’s all about shops actually!

Here is another article from the Sunday Telegraph today, by Graham Ruddick:

‘Success online? It’s all about shops actually’.  John Lewis may have just cleared £lbn, but Mark Lewis, its new online director, only wants to talk about the retailer’s department stores.

“Hugely important, hugely, hugely important,” he says of the stores. “It would be a real mistake to view them as separate businesses. That’s not how we view them internally.” The reason for Lewis’s praise for the John Lewis stores – of which there are 39 in the UK – is the rise of 2.6pc in like-for-like sales at John Lewis department stores multichannel retailing, or “omnichannel” as John Lewis calls it.

“Multichannel” is probably the hottest topic in the retail industry. It is about offering customers a service across different retail formats shops, the internet, and mobile apps. The retailers driving a multichannel strategy believe that the winners in the industry over the next decade will be the companies that can offer customers the most convenient and seamless shopping experiences. To sceptics, multichannel is just a buzz word dreamt up by companies trying to justify their costly presence on the high street. But for John Lewis it is the core of their strategy, and it is working well. Lewis says that two-thirds of all John Lewis sales involve a customer interacting with its stores and website. In addition, one third of all online orders are now collected in John Lewis or Waitrose stores after a doubling in the retailer’s click-and-collect service in the past year. Store managers are not just accountable for sales in their stores, but also internet sales in their catchment area.

“Customers don’t view us as a store or a website,” Lewis explains. “They view us as John Lewis. “If you think about the world we are in now, it is more about customers choosing how they want to shop than retailers telling customers where their stores are. It is a different dynamic, it is being led by the customer. Our job is to follow that and stay ahead of it.” The rise of the internet has inevitably cannibalised some store sales, with the Peter Jones department store in west London understood to have been hit. But in the year to January 26, John Lewis not only recorded a 41pc rise in online sales, but also a 2.6pc increase in like-for-like sales in stores.

These statistics have helped John Lewis become the benchmark for multichannel retailing. “Omnichannel means we are there for the customers for how they want to shop, when they want to shop, in a way that suits them,” Lewis says. “That goes across the whole shopping experience, whether they are researching items, buying items, getting items delivered or collecting them. “This is fundamentally changing how retail has to run. If you look at the evolution, clearly stores have been around for an awful long time, then there were some pure-play online retailers, and then store retailers developed their own websites.

“Now we are at the stage where the website is not a stand-alone thing with a different set of customers. Actually, it is part of the integrated business and we as a business want to fully integrate that and present a very seamless, single presentation to the customer.” Lewis joined John Lewis on March 4 after being lured from his role as chief executive of Collect Plus, which operates a network of lockers in corner shops across the UK for customers to collect online orders. Before that, he was the UK managing director of eBay.

Lewis’s background at Collect Plus hints at the continuing importance that John Lewis places on having a physical presence across the UK and he is adamant that stores will maintain a pivotal role for the retailer. For John Lewis, its stores are a unique weapon in the battle against online-only retailers such as Asos and Amazon, which are now competitors alongside traditional rivals such as Marks & Spencer. For example, when a new John Lewis department store opens, not only does it generate its own in-store sales, it also boosts online sales in the surrounding area. Online sales increased by 30 pe in the Chester area when John Lewis opened a department store there in September 2011. “We have stores that people want to go to,”

Lewis says. “I think it is inevitable that stores will look very different in the future and we are committed to innovate on that. But I wouldn’t want you to go away underestimating how important the partner experience is for shoppers. “The fact customers know they can come to John Lewis and speak to a partner who owns the business, has most likely been with the business for a fair amount of time, who understands our products intimately, and can advise them on their purchases that is still a fundamental part of what makes John Lewis.” Although Lewis is only weeks into his new job, he is already working on further developments to John Lewis’s online operations.

With the multichannel model in place, this is also likely to drive changes within stores, too. Lewis believes that mobile technology and personalisation will become increasingly important, so the revamped John Lewis website has a new “wish list” function for customers. “If we took a little time machine into the 30pc rise in online sales in the Chester area after a store opened future and then look back, I think we would walk through the store today and see customers shopping in very different ways,” he explains. “They are already walking into the store with very sophisticated technology in the form of their smartphones. Increasingly they are using that technology as part of how they shop – be it to scan items, to get extra information about the items, to find reviews, or to pay for items. All those elements are coming our way very, very quickly.”

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