Current digital technologies
AI & AR experimentation
Swarovski positions itself as a technology-driven enterprise, containing both Core, Adjacent and Transformational initiatives. As seen in the Innovation Ambition Matrix, Swarovski’s main focus is on Core innovation, however the company is expanding into adjacent and new markets, exploiting new opportunities. This statement is particularly reflected in the crystal manufacturing process (BOF, 2019). Swarovski keeps up with up-to-date innovation within its machinery and cutting techniques which have increased the overall quality and outlook of jewellery in the recent decade. Alongside with that, there are numerous discussions about introducing AI into the industry. However, there are some issues therein as the company is eager to preserve its current employee base in Watten, Austria, where the manufacturing plant is located; and there is concern that adopting AI may lead to substitution of humans with software albeit increasing the overall quality of items (BOF, 2019). Moreover, the company launched a VR store in collaboration with MasterCard, available for customers that have a VR set, allowing them to make direct purchases. (This is Retail, 2017)
In-store tablets
However, when it comes to in-store and try-it-on experience, Swarovski is not lagging behind its major competitors such as Pandora. Swarovski has developed a special app which uses AR and allows customers to try on jewellery virtually and see how it looks like on their body (BOF, 2019). Equally, AI is adopted within the fixing department which saves professionals’ time when it comes to recognising the items forwarded for mending (BOF, 2019). This has become particularly relevant during the lockdown periods when physical presence in outlets was not possible and still remains an issue in certain regions. In physical stores, Swarovski has set up multiple tablets which both employees and customers can use to browse the assortment of jewellery and check its presence in a particular boutique (BOF, 2019). Meanwhile, the use of the device has not been justified in selling a state-of-art item - an activity tracker - which was the reason for installing tablets in shops (Wide Eyes, 2018).
Product Updates
Another advancement in technology was made in 2019 when Swarovski adopted Centric Product Lifecycle Management - a famous software developed in Silicon Valley (GlobeNewswire, 2019). The use of this technology is essential for global marketing purposes to assess the stage which an individual product is currently at. This allows the enterprise to increase its revenues from sales as well as it notifies when changes e.g., in design or use, are required to sustain the interest to the item and/or collection. Equally, to go with the times, Swarovski has a responsible person for innovation, Hannes Erler. Having worked as an Innovation Evangelist for four years, Erler’s mission includes focusing on «technology scouting and disruptive strategies» for which Swarovski received recognition last decade (LinkedIn, 2022).
Innovation Ambition Matrix
proposed innovations
existing innovations
Video explaining the Innovation Ambition Matrix
Presenter: Alexander Bogdan
