my agile role model · manufacturing & distribution & retail. • Empirical & Experimental • Data...
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Z A R A my agile role model clarke ching Zara Dundee - from wikipedia
Transcript of my agile role model · manufacturing & distribution & retail. • Empirical & Experimental • Data...
Z
A
R
A
my agile
role
model
clarke
chingZara Dundee - from wikipedia
Zero
Two
Hundreds
Thousands
How many rugs had Habitat made when this survey / advert ran on
Facebook?
Problem (1975):
I have too many German
Knickers on my hands.
Solution: Build a global
manufacturing and retailing business &
become the 3rd richest man in the
world (2014).
I didn’t do what my competitors
did. Amancio Ortega Gaona
Part I - The Problem
In September they start designing next Summer’s stock.
In September they start designing next Summer’s stock.
If only they had a way of forecasting what would be
popular!
In November they forecast how many of
each product/size/colour to manufacturer
In December they start manufacturing (often overseas
where it’s “cheaper”).
In May the stock hits the shops & the popular stock
sells out quickly.
In July they start discounting…
In August they start scrapping …
I figured out how to do that … by not forecasting.
They could sell everything at full price, make more
happy customers & make a lot more money!
In September they start designing next Summer’s stock.
In November they forecast how many of
each product/size/colour to manufacturer
In December they start manufacturing (often overseas
where it’s “cheaper”).
In May the stock hits the shops & the popular stock
sells out quickly.
In July they start discounting…
In August they start scrapping …
Requirements 300 pages
Change requests
= Long range Forecast An educated guess! An estimate
Some stuff we need, Some we might need.
Unimportant stuff
Missed sales
Discounts & scrap
Important Stuff
Missing stuff
BloatDesirable
&Required
High-MarginsalesRetail
Product Development
Part 2 - The Solution
Small batches = 15 days from
“Concept to Cash”
Demand Driven (pull)
Designa new product
Make a small batch
Distribute
Sell
YesDid people
buy it?
£€$
Scrap
No
Tightly Integrated Feedback Loop- product development & manufacturing & distribution & retail.
• Empirical & Experimental • Data (cash-register) driven
Very low cost-of-failure
Only sell popular stuff
I figured out how to do that … by not forecasting.
My customers visit often
because my stock changes
often It’s fresh.
Bonus: If a Zara
product becomes “cool” we ramp up
production pronto
I sell loads at high margins.
We figured out how to do that … by not
forecasting.Requirements 300 pages
Change requests
= Long range Forecast An educated guess! An estimate
Some stuff we need, Some we might need.
Unimportant stuff
Missed sales
Discounts & scrap
Demand Driven
Important Stuff
Missing stuff
RequiredBloat Product Development
Retail
Desirable&
High-Marginsales
Foundations Ground floor
1st floor2nd floor3rd floor4th floor
What’s
next?MVP?
Failure demand:
- “We’re getting loads of problems with BLA … we need to fix BLA.”
Market demand: (from sales figures or customer’s comments)
“OMG the customers won’t buy this product because the competitor has this, but we don’t”
“The customers HATE This. It’s hard to use / hard to sell.”
Capacity demand: (from analysis or looking around)
“We’re selling so well but we need to Automate processes A, B and C”.
“The cancellation process needs to be self-serve.”
“We are selling so we need more disk space.”
Small batches = 15 days from
“Concept to Cash”
Demand Driven (pull)
Designa new product
Make a small batch
Distribute
Sell
YesDid people
buy it?
£€$
Scrap
No
Tightly Integrated Feedback Loop- product development & manufacturing & distribution & retail.
• Empirical & Experimental • Data (cash-register) driven
Very low cost-of-failure
Only sell popular stuff
What does Zara add to Toyota?
product Development Manufacturing Retail
Manufacturing
Retailing
Product Development
(years)
dayszara
Harvard Business Review, November 2004
