We begin with a cup of joe starbucks was launched almost 50 years ago with one store in seattle. Today the brand has 30,000 stores around the globe, serving 100 million customers a week so, how does a company of this size and scale continue to innovate and stay nimble brewing up change is this weeks cover story and our kate rogers has more reporter inside this 20,000squarefoot facility at its headquarters in seattle, starbucks is trying something a bit different. The coffee giant is acting more like a startup than a 48yearold Global Corporation this is the trier center, where starbucks projects are going from idea to action in 100 days flat. We now have 30,000 stores around the world serving 100 million customers a week and with scale and complexity, it can become the enemy of speed. And so, this was all about how we transform the way we work at starbucks so that we can accelerate the velocity of innovation. Reporter employees at the companys headquarters are able to pitch ideas via a crowdsourcing platform and have them test it out in the facility stephanie lim designed a singlecup brewing prototype made on the labs 3d printer it went into five stores in may. We had this idea about 30 days ago, and we got to our first prototype in about a week. But since then, its transformed in many different ways this is probably version ten reporter workers are also trying out new delivery mechanisms for the companys partnership with uber eats, reformatting stores to see how different programs like mobile order and pickup might work, and looking for the next big thing when it comes to the menu at its cold pop shop. Beverage innovation has been a real priority for starbucks, as its cold drinks in particular tend to see a lot of success so here theyre testing out new potential menu additions and much more. Since launching some six months ago, more than 100 projects have been tested and more than 1,500 partners have come through the center to either participate in projects or see whats being worked on. But beyond just new ideas, johnson says he hopes the center signifies a new way of working at starbucks. Its a mindset its a mindset that says, lets pick a problem or an opportunity that were going to focus on and lets try something, lets get it out there, and then lets learn and adapt. So, the whole idea here is to draw on the deep knowledge that so many of these employees have from different parts of the business and to use that to make the partner and Customer Experience even better. Its kind of amazing to think somebody can have an idea and 30 days later can have a prototype in five stores. Exactly. How does the pitch process really work . Theyre using an internal crowdsourcing platform called springboard. So, right now, at the companys headquarters, basically any employee at any level can pitch an idea, but they eventually want to open that up to partners all around the country and even open it up in the future to customers who could say this might be better if you tried this in stores. Kate rogers, thank you very much joining us from seattle, julia sandler with Pioneer Square labs the firm works not only with entrepreneurs, but also with large corporations to try to develop Innovation Labs. Julie, thanks for being here its great to see you. Hi, becky thanks so much for having me on. We saw in kates piece that the success starbucks is having with its innovations labs is Pretty Amazing your firm helps corporations develop similar labs, so what makes them successful . What makes them tick the corporations that really get this right have two things in common they keep really close contact with customers and theyre incredibly datadriven like you saw with starbucks, this allows companies to iterate really quickly based on realtime Customer Feedback and improve the product from there all that being said, the worldclass Innovation Labs out there focus maybe less on process and where the ideas are coming from and really hone in on talent, on people how are you attracting entrepreneurial minds to an organization and how are you developing your rising stars in house to become innovative and entrepreneurial leaders of these new innovations, these spinoffs whos doing it the best you know, right now, amazon and google are leading the charge, both in the tech sector. Google x, now known as x development, is one of googles mostfamed Innovation Centers. They have spun up waymo, their selfdriving car technology. Amazon has many examples of this, one of which is lab 126, Innovation Centers that created the amazon kindle. You mentioned the companies that are doing it best and i cant help but think those are companies with really deep pockets. Theyre generating a lot of cash, have a lot of things that are kind of out there. Can other companies do this, or is the potential for this to be a money pit and suck away resources that maybe are essential to them just doing their basic delivery yeah, its really expensive to build and run an Innovation Lab in your company. That being said, you dont have to be a Massive Corporation investing millions in a fancy lab to achieve Innovation Lablike benefits weve seen a lot of companies, both large and small, focus on more nimble initiatives innovation hours, hackathons, that bring together not only the leadership team, but young people, young voices in the organization, across departments, focused on developing crazy, audacious ideas, and then even developing prototypes to test how customers respond to them. These kinds of initiatives can accrue benefits across the entire organization, not just the csuite. I wonder about that theres new ideas that theyre generating youre testing new product ideas. Youre really making younger employees feel like they are able to think freely and really play a role in whats happened are there other benefits that an Innovation Lab offers a company . Absolutely. I think one of the most overlooked benefits of an Innovation Lab or even innovation infrastructure are the cultural benefits to an organization when your employees at all levels of seniority see leadership investing aggressively and thinking not only about where a customers headed over the next couple years, but over the next 10 to 15 years, that builds a cultural mindset around thinking several steps ahead. Its a really powerful thing to experience across an organization a lot of these old, legacy corporations that we know and love often complain that, gosh, our employees are really resistant to change, they love sitting around in big meetings and bureaucracies, see cultural atrophy. Innovation labs and innovation infrastructure allows your employees to really embrace a forwardthinking mindset. I dont know anybody who loves sitting around in these big, bureaucratic meetings never met one of those people if they xisionz but you mentioned the legacy companies. You think about a sears or blockbuster or jcpenney. How much of it was because they couldnt move fast enough or keep up with changing times. Well, these days its innovate or perish jeff bezos, the ceo of amazon, is known for saying that companies in their heyday kind of have a lifetime of about 30plus years or so. Blockbuster, you know, is dying in its early 30s or has perished in its early 30s. Sears, by contrast, has lasted for multiple generations, over 100 years, but kind of missed a beat in terms of the digital revolution if you build innovation infrastructure in your company, it allows you to think way ahead of where customers are headed. And in 2019, its kind of survival 101. Julie, thank you for your time its good to see you. Thanks, becky. Up next, we are on the money. Are tariffs on imported goods bad for your wallet . What they mean, what they could cost, and why it really matters. And later, you are probably spending a lot of money on that vacation how to safeguard your trip in case the unexpected happens. Right now take a look at how the stock market ended the week. The u. S. Has been waging a trade war with china each week you hear the word tariffs, and often, the threat of more tariffs, but how are they impacting you, and can trade conflicts escalate in other ways Michael Ohanlon is senior fellow of policy at the brookings institution. His book the senkaku paradox risking great power war over small stakes. Nice to have you here. Nice to be with you. Michael, tell everybody, whats a tariff, and what impact is the trade war with china having on American Consumers tariffs are sort of our oldest form of taxes, going back to the days of the revolutionary war and before, and shortly after. It used to be the easiest way for a government to raise money. Just put a tax on any imported good and that money would be collected here by americans, but the goods that were taxed would be foreign in their origin and so, in theory, it sounds great. You get to raise money for the government the only producer thats in some way affected is one thats overseas and of course, it is a way now to be punitive towards an overseas competitor that you dont think is being fair in economic terms or that you think is being disruptive in security terms. Weve applied them, therefore, to iran, to north korea, to russia these are usually over security threats or over human rights abuses but of course, President Trump is now becoming famous for applying them in trade disputes. I guess the question is do tariffs work and as somebody whos looking at military conflict all the time, how do you figure this into the risk factoring well, they can work, and the broader issue or category of instruments that we could call sanctions, they can work, but youve got to have your expectations in check, because it ultimately requires changing the psychology and the calculus of someone else. Youre not physically changing their policy youre trying to persuade them and depending on how powerful your tool is and how appropriate it is to the problem at hand, you may or may not get the outcome you want im interested in a category of problems in this book, the senkaku paradox, where russia or china does a military strike of some kind, a probing attack, against a very small island in the pacific, against a tiny, little piece of estonia or nato countries in eastern europe. In the example that you point to in the senkaku islands, china lays claim to this as well as japan how do tariffs play into this potential situation, especially when were already imposing tariffs on china at this point how does that weaken or strengthen what you would plan on doing in a situation like this yeah, it does make it more complicated. Just a quick word of background, senkakus are uninhabited, theyre tiny japan and china both claim them. The United States doesnt have a stance on whose islands they are, but we recognize that japan administers them, whatever that means, because nothing happens there, therefore we apply the japan treaty to those islands and say were sort of on record committed to defending them on behalf of japan if they are attacked this could be a doomsday trip in an inadvertent war happened in world war i. Yeah, stakes on their immediate terms but with broader ramifications. You couldnt just watch china grab these things and do nothing, but if they happen to sneak 50 people ashore one night, do you want to really bomb those positions as your main response . So, in that case, i think thats where tariffs and economic sanctions more generally could be very effective. As a defense expert, are you more concerned about china or russia thank you for that question most people say china. I say russia i think Vladimir Putin really wants to disrupt the world order in a fundamental way, and he would be willing to do things, accept some risk to try to weaken nader or dismantle it china i think wants to have its own face, its own characteristics on the existing global order, but thats been for them the goose that lay the golden egg, and id be surprised if they want to fundamentally overturn it. I think even though china has more capacity going forward, russia has more of an attitude, more of vain dea vendetta and ie watching both but worry slightly more about russia. Michael, thank you, good to see you. Michael ohanlons book is called the senkaku paradox. Up next, were on the money. The only thing worse than not getting a vacation is not going on the trip that you actually planned and still having to pay for it weve got tips on travel insurance and what you should do with it. And later, schools out for the summer the toys that will help keep kids and parents entertained be good while im gone. [ laughing ] woo hoo. Welcome to my house mmm, mmm, mmmmm. Ball. Ball. Ball. Awww, whos a good boy . Its me. Me, me, me. Yuck, thats gross. You got to get that under control. [ dogs howling ] seriously . Embrace the mischief. Say get pets tickets into your x1 voice remote to see it in theaters. Summer travel season is here you may be planning to go to florida, visit europe, or even take an alaskan cruise, but what if some unforeseen complication comes up is it worth having travel insurance . Senior personal finance correspondent Sharon Epperson joins us with some answers on this sharon, its good to see you. Good to be here. I always wonder about this. Im tempted. Once in a while i buy it sometimes i dont. But whens it a good idea to have travel insurance . It really depends on your needs, where youre going and also how healthy you are ask yourself some key questions are you traveling outside the country . That usually means its probably a bigticket trip, so thats something to consider. Is there a good chance that youre going to need to cancel maybe there are some relatives that are having Health Conditions back home and you want to make sure youre there for them or can you afford to lose the money youve paid for . Thats probably a big one. Those are things you need to consider if i decide i do want travel insurance, what should i look for in a plan . When looking at what some of the biggest claims are, we spoke with folks at square math, which is an online aggregator looking at different plans medical nearly a third of claims are for medical reasons trip cancellations, another big issue. And other things people want coverage for, lost baggage or travel delays, they can also be covered depending on the type of coverage you look for, and the cost can vary widely, usually about 4 to 10 of the cost of the trip so if the average cost of vacation is 2,500 and you have to pay 250 for that insurance for that peace of mind, for some people, it may be worth it. You mentioned the variation in cost from 4 to 10 is this a situation where you get what you pay for that is exactly right one of the key things to look for, the most important thing is what the exclusions are. You want to make sure that if it does cover medical conditions, that it also covers preexisting conditions, if you have one. You also want to make sure you dont pay for something you dont need you may already have coverage with certain insurance coverages that you already have, namely, how you pay for your trip. With a credit card. If you pay with a credit card, a travel credit card, many of them already cover lost baggage, baggage delay some of them do cover that you want to look for that. Also look at what happens with different types of insurance carriers go online, do some Comparison Shopping and then the other thing to consider is when youre going to buy this policy. Do it as soon as you book your trip thats the best bet because youre going to be able to have your pick of a lot of different types of coverage. If you wait until very close to leaving on your trip, you may not be able to get youre going to look suspect, like youre trying to get out of it. Exactly, and they may charge you more. One tip i would give people if youre going through this, because ive dealt with this myself, if you think there could be a chance that you end up canceling even before you buy insurance, make sure you buy directly from the airline and directly from the hotel. If you know youre in a situation where you may have to cancel a trip, make sure youre not using a third party. And also, if youre looking at the cost of a trip versus travel insurance, maybe paying that extra for a fully refundable ticket makes sense. Right. Again, you have to really know your familys needs to decide whether or not you need to get the travel insurance, and the type of travel you want to do. Right you can be stuck in a real bind otherwise. Exactly. Sharon, thank you. My pleasure. Sharon epperson. Up next on the money, a look at the news for the week ahead. And looking to keep the kids busy this summer well show you the hot, new toys for the season applebees new loaded chicken fajitas. Now only 10. 99. Here are the stories coming up that may impact your money this week. On monday, the National Association of homebuilders will release its survey on the state of the housing market. On tuesday, weve got more housing news coming. Well see how many new homes were started in the month of may. Then on wednesday, the federal open Market Committee will release a statement after a twoday meeting and make a decision on Interest Rates then on friday, existing home sales for last month will be out. And, by the way, happy birthday to prince william. Hes going to be 37. Plus, enjoy the sunshine while you can. Friday will be the longest day of the year, which means saturday, the days start getting shorter. Boohoohoo. Summers almost here, and whether youre hitting the road for vacation or staying home, you may need some toys to help keep the kids entertained. Joining us right now is jackie briar, editorial director of the toy insider. Thank you for being here. Thank you for having me. I usually think of toy segments as something we do around the holidays, but i love this for summer. Oh, yeah. Because the kids are out of school, you need to entertainment them. Keeping active, having fun all summer, its important. Lets start with some of the hot toys looks like were starting with bubbles . Lickabubble whats lickabubble . A bubble blower Everybody Loves bubbles, but these are edible, flavored bubbles. You take the miventure, add a drink. We have gatorade, fruit punch. Try to catch them. They make a lot of fun bubbles it tastes like doesnt taste soapy. It doesnt taste soapy. How do they make bubbles without it tasting soapy you have to put your favorite drink in these are gatorade fruit punch flavored bubbles not bad. And you want to keep them active, having fun today this is ribbon ninja so, lets have your wrist. Everyones going wear their little wristband with a ribbon attached to it youre actually going to wear three when youre playing. Uh huh. How do you win you have to try to grab my ribbon and i have to try to grab yours like flag football . No, like using your ninja moves. See . It gets tricky then when you have a lot of people playing, it gets really shes determined [ laughter ] i like those. This is good for the kids. You can chase them around. Yeah, we play it in our office so, travel what about this one travels big. A lot of families are going on vacation for the summer. This is our scribble scrubby vet set and salon. So, this is really fun so cute. Easy to take to grandmas, on the road, where youre going comes with these adorable little pets they have washable markers, so youre going to color them in really cute. Looks like somebodys already gone to work on this one. Yes, so cute. But the best part is when theyre done, they can spray water on them, put them in the tub, brush the color off and do them again. Oh, cute kids can do it over and over. This looks like a toy ive seen before. Toy story 4 is coming out next week. Everybody loves buzz lightyear this is blastoff buzz lightyear. Hes got a lot of fun sound. Greetings, i am buzz lightyear, coming in fast its small, great for taking with you on the go kids can bring the action and fun of the movie home with them. Everyone around you on the plane is going to love it. Maybe not on the plane, but you know. What about for a big kid like me absolutely. So, adults want to have fun, too. This is 5second rule, perfect for adult game night so, with this game, you have five seconds you flip this over the balls go for five seconds. You have to try to name three things before the time runs out. You didnt even get the card out of there before the time ran out. I was just showing you. Ready . Things in a nightstand. A clock, your retainer, water. I think you got it so, whoever gets the most before time runs out is the winner. So, you could play all day i tried to pick clean ones for you. Oh, good. Good idea. Is there dirty ones in there, too . Oh, yeah. Its uncensored. Okay. Adult version. This is fantastic jackie, thank you. Still didnt get my ribbon, but thanks for coming on today and everybody, thank you for joining us that is our show for today we will see you back here next week at that point, were going to be talking about vacation destinations, where your strong dollar can go further. Each week, keep it here. Were on the money. Have a great one and we will see you next weekend hey, there were live at the nasdaq in new york city. Carter, khouw and dan are getting ready for a big show heres whats coming up. Disney shares have been on a magical rally, and one of the traders says its run is far from over hell tell you how to play it. Plus that sums up what happened to semis today. And carter and dan say its about to get much worse for the group. They will break it down. And later athleisure stocks are on fire thi