Technology Innovations in the Clothing Industry
On the 30th episode of Enterprise Software Innovators, hosts Evan Reiser (Abnormal Security) and Saam Motamedi (Greylock Partners) talk with Alan Boehme, Former CTO at H&M, Procter & Gamble, and former CIO at The Coca-Cola Company. For over 20 years, Alan has led technology teams at some of the world’s most recognizable brands. He has a wealth of insights into how next-generation technology can transform customer experiences and improve business processes. In this conversation, Alan shares how H&M uses technology for sustainability, his insights into the ways startups can best collaborate with enterprises, and details about how smart mirrors piloted at H&M are now in use at both H&M and COS to enhance the customer experience.
H&M’s perch as one of the biggest clothing retailers in the world positions them to be leaders in sustainability in an industry that is sometimes criticized for wastefulness. As Alan puts it, “H&M is a company that walks the talk. When we talk about the need for circularity and sustainability, not just to benefit H&M but the planet, it really sunk in. This is a company that is planet, people, profit.” To that end, Alan shares how H&M is harnessing advances in material science to increase sustainability: “We have a machine we helped co-create which can take old clothing and actually consumes it, extracts the fibers and can create a new sweater for you very quickly. We’re finding a way to contribute to the circularity by reusing things.”
Throughout Alan’s career, he’s found himself connected to the startup ecosystem and has gained years of insight into the best ways startups and corporations can meaningfully interact and collaborate. Because startups and corporations have different time horizons and priorities, getting alignment on vision is a critical first step. Alan explains: “...corporations tend to define their problems too tightly; they’re looking for specific solutions. You lose the creativity of the startups; you lose the intellectual capital that the startups bring on top of their technology and services if you try to focus them too much. [As a startup], when you present a business problem, instead of telling them how to solve it, ask them what they can bring to the table to make this work.” By zeroing in on collaboration and mutual benefit, startups can position themselves as needed to the corporation’s needs. From his time at The Coca-Cola Company and P&G to more recently at H&M, Alan has seen first-hand how these partnerships can provide symbiotic and beneficial outcomes for both sides.
As a seasoned technology executive at some of the world’s most recognizable companies, Alan has consistently stayed at the forefront of partnering with startups wherever he’s been. To that end, in his previous role as CTO of H&M, Alan describes how the company harnesses impressive technology in dressing rooms to optimize customer experiences. In their ‘smart’ mirrors, H&M’s technology can help customers find the right size and, in some cases, even check out right from the dressing room: “There's a lot of RFID data locked in tags on garments. We created a data layer in the store that now mimics what's in the warehouse. By using 5G readers embedded in the ceiling and RFID readers in the walls, we can get 99% accuracy of everything that's in the store at the same time. When you pick a garment up, we know which are going into the fitting rooms and which are left behind. We can create an experience for you with a mirror [using that data]. By lifting the data out and making it available using artificial intelligence and machine learning, it becomes more predictive.” Today, this piloted technology is used throughout H&M and COS stores for a more enjoyable shopping experience.
In an increasingly globalized world, Alan has seen first-hand how technology innovation is a worldwide phenomenon not limited to one geographic area or region: “...innovation comes from anywhere and everywhere in a corporation and around the world. It’s not bound by any geography.” From there, the biggest question corporations must ask themselves is where innovation should happen within the business. As Alan puts it, “...I don’t want to have tremendous innovation in the standard operations of my company because the last thing I want to do is try the latest and greatest thing and bring down my network that’s supporting €20 billion a year in revenue.” Additionally, enterprises are best suited to successful innovation when the parameters and goals are clear: “Within the organization, you have to have specific goals and objectives. You have to empower those to where it will give you a competitive differentiation for the long term, something that’s sustainable. For something that will give you a short-term competitive advantage, you want to innovate there quickly; you don’t want to spend a lot of money.” Recognizing the scope and the intention behind the innovation will undoubtedly lead to more successful outcomes, whereas chasing shiny objects and innovating for the sake of innovating rarely pays dividends.
Through his storied career, Alan also has significant experience advising the next generation of technology startups. For startups eager to raise their profile, it can be tempting to land a large enterprise customer for both name recognition and revenue, though Alan has rarely seen this be a winning strategy. Instead, he believes startups should build their customer list from small and medium-sized companies to build cash flow, retain control, and develop themselves more holistically in the marketplace: “The most successful [startups] have recognized that they need to work with small or medium-sized companies to get the deals closed, to create the cash flow and create that cycle. Having that balance is so important for you to be able to maintain control and to be in charge of your destiny.” While it’s less glamorous, startups who heed this advice understand the long game and the importance of sustainable growth and maturity.
