How to improve the roi of business model innovation and scale it to new heights

1. John Bradford Interface
@ Interface_NA
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

2. John Bradford
Interface
How to Improve the ROI of Business Model Innovation and
Scale it to New Heights

3. Interface’s values are our guiding principles
Vision
To be the first company that, by its deeds, shows the entire
industrial world what sustainability is in all its dimensions:
People, process, product, place and profits — by 2020 — and
in doing so we will become restorative through the
power of influence.
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

4. How to Improve the ROI of Business Model
Innovation and Scale it to New Heights
Factories to Zero

5. Oil vs. Labor
Supplier Interface Customer
lbs.
lbs.
lbs.
lbs.
$
$
$
$
OIL
Closing the Loop
• How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

6. Evergreen Lease
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

7. Why now & not before: Traditional acquisition cycle
Acquire
Install
Inspect
Decide
Market /
Sell
- Target Segments
- Buyer Awareness
- Channel
- 3rd Parties
- Financing
Eventually ages out
or uglies out
Segment: High end
commercial
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

8. Why now & not before: Market & technology
changes have addressed key barriers
Acquire
Install
Inspect
Decide
Remove Refresh
Sort
Store
Market /
Sell
- Target Segments
- Buyer Awareness
- Channel
- 3rd Parties
- Financing
New process restores
cost-effectively
For the first time,
scale makes sorting,
storing economical
Greater awareness
among short-term
and frugal segments
Robust take-back
system exists
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

9. Why now & not before: Market & technology
changes have addressed key barriers
Acquire
Install
Inspect
Decide
Remove Refresh
Sort
Store
Market /
Sell
- Target Segments
- Buyer Awareness
- Channel
- 3rd Parties
- Financing
New process restores
cost-effectively
Greater awareness
among short-term
and frugal segments
Robust take-back
system exists
For the first time,
scale makes sorting,
storing economical
Design ethos &
acumen exist for
refreshed carpet
Robust Internet
channel & 3rd parties
(incl. financing) exist
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

10. Why now & not before: Market & technology
changes have addressed key barriers
Acquire
Install
Inspect
Decide
Remove Refresh
Sort
Store
Market /
Sell
- Target Segments
- Buyer Awareness
- Channel
- 3rd Parties
- Financing
Robust take-back
system exists
New process
restores cost-
effectively
Greater awareness
among short-term
and frugal segments
Design ethos &
acumen exist for
refreshed carpet
Recycle
Net positive
recycling system
in place
For the first time,
scale makes sorting,
storing economical
Robust Internet
channel & 3rd parties
(incl. financing) exist
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

11. Acquire
Install
Inspect
Decide
Remove Refresh
Sort
Store
Market /
Sell
- Target Segments
- Buyer
Awareness
- Channel
- 3rd Parties
- Financing
Robust take-back
system exists
New process
restores cost-
effectively
Greater awareness
among short-term
and frugal segments
Design ethos &
acumen exist for
refreshed carpet
Recycle
Demand exists now.
And new segments
are ripe for entry
Net positive
recycling system
in place
For the first time,
scale makes sorting,
storing economical
Robust Internet
channel & 3rd parties
(incl. financing) exist
Why now & not before: Market & technology barriers addressed—and
customer demand is there
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

12. The value of leasing: Higher margins, new segments
Margin Increase: 15%-50%+ (depending on re-lease price)
New Segments:
• Disruptive offering for the under-$10 / sq yd market
• Dramatic change to the economics in countries like Brazil
(35% duty)
New products and value propositions
• Love the Look guarantee
• New pricing model for health care, value-added services
Competitive Impact: Defense against competitors “buying”
contracts by underpricing
…and will realize the vision of keeping millions of pounds of
carpet out of landfills
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

13. Necessary elements are either present or
appear very obtainable
• Customer demand for leases – Present
• Customer demand for previously used Product – Present
• Capable Internet channel for marketing, sales – Present
• Robust take-back system – Largely Present
• Commercially viable process for refreshing Product –
Present
• Net positive recycling system for worn Product – Present
• Financing mechanism / entity for leases – Obtainable
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

14. Pre owned Programs are becoming
mainstream in the consumer space
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

15. Recycling Resilience
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

16. Re-Entry
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

17. Re-Entry
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

18. Re-Entry
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

19. Re-Entry
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

20. Restore and Protekt
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

21. On Site Restoration
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights

22. Evergreen Lease
How to Improve the ROI of Business Model
Innovation and Scale it to New Heights