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'We exist to fail': FirstBuild president André Zdanow on building an innovation arm out of GE Appliances

Modern Retail Podcast · with André Zdanow · December 7, 2023 · 35 min

Summary

FirstBuild, an innovation arm of GE Appliances, operates with a unique product development lifecycle, leveraging community and crowdfunding to rapidly test and launch new gadgets like nugget ice makers and pizza ovens. This episode highlights how FirstBuild sidesteps corporate bureaucracy to maintain agility, offering key lessons for ecommerce operators on fostering innovation, rapid prototyping, and diverse distribution strategies—from Amazon to big-box retail—within or alongside a larger organization.

Key takeaways

Themes

product & merchandisingfounder & leadershipsupply chain & operationsamazon & marketplaces

Topics covered

corporate innovationproduct development cyclescrowdfunding strategiescommunity-led product validationdiversified distribution channelsbypassing corporate bureaucracy

Episode description

FirstBuild is the arm of GE Appliances where inventors actually get to invent things. It's a division of the behemoth corporation that aims to come up with new types of gadgets, test their viability and then bring them into the world. And it operates independently of its parent, GE Appliances, and uses community building and crowdfunding to get projects off the ground. Some of its most popular products include a nugget ice maker and countertop pizza oven. So, how such a division exist within such a large corporation? André Zdanow, FirstBuild's president, joined the Modern Retail Podcast and described its evolution. FirstBuild first began around 2014 as a way to work with upstart engineers and test out new types of products. But it has grown into a standalone organization, and each product has its own unique lifecycle. Some are built thanks to successful crowdfunding campaigns, others are instantly scooped by GE Appliances because they know it will be a hit. Some products are sold through an Amazon store, others on Amazon or via big-box retailers. As Zdanow described it, each FirstBuild product "depends on the product and the business that's gonna take it and the business model." But the major difference between Zdanow's group and GE Appliances as a whole is the process. The idea, he said, was to "get away from the bureaucracy of a large corporate; there are a lot of things that are great about the scale you get when you become our size, or near our size. And one of those things is not speed." Zdanow knows a thing or two about building products fast. Before joining GE Appliance, he worked at Quirky, a platform that aimed to help inventors get their ideas off the ground. Lessons from Quirky's early days likely informed how FirstBuild got off the ground, but Zdanow said the two are different -- especially in the types of community members it targets. And now that FirstBuild has been around for over a decade, it's been able to create an insulated nook of innovation. The

Frequently asked about this episode

What does this episode say about product & merchandising?
FirstBuild demonstrates how an independent innovation hub within a large corporation can bypass bureaucracy to achieve rapid product development and market testing, crucial for staying competitive.
What does this episode say about founder & leadership?
Leverage crowdfunding and community engagement not just for funding, but for validating product ideas and building early adopters, as seen with FirstBuild's successful product launches.
What does this episode say about supply chain & operations?
Adopt a diversified distribution strategy, utilizing marketplaces like Amazon alongside traditional retail and DTC, depending on the product's business model and target audience.
What does this episode say about amazon & marketplaces?
Embrace a culture where "failure" is an integral part of the innovation process, allowing for quicker iteration and learning without the typical corporate penalties.
What does this episode say about product & merchandising?
Study FirstBuild's model for creating an "insulated nook of innovation" to protect novel ideas from corporate inertia, a key challenge for established ecommerce businesses looking to innovate.

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