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Digital Transformation of Businesses
A selection of documents, articles, papers, videos and other content for those interested in the transformation that is required when going 100% digital in an organization. I also try to highlight the impacts, both positives and negatives of that transformation. Like it? Please click "Recommend".
Curated by Farid Mheir
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#Amazon Running the U.S. Postal Service? Another #digitalFlip #disruption via @marcuswohlsen @Wired

#Amazon Running the U.S. Postal Service? Another #digitalFlip #disruption via @marcuswohlsen @Wired | Digital Transformation of Businesses | Scoop.it
Amazon's drive for global domination took on a new dimension today with the news that the world's largest online retailer now owns a day of the week.
Farid Mheir's insight:

Very cool piece on another digital flip, or how digital is transforming an industry. In this case, delivery services. The US post office - like all other post office service in the world - has seen shrinking volume of letters, mostly due to the prevalence of email in today's world. 


What if this marks the start of subsidized parcel delivery? As it was for letters, we could see this mark the beginning of an affordable parcel delivery, even in remote areas of the country. In the US it would be good. In Canada, it would be great and is pretty much essential, as the cost to deliver packages is astronomical.


Also consider reading this piece in the Washington Post where they rightfully point out that this use of a government body by a private sector company is something relatively new they label "reverse contracting".

Amazon’s brilliant plan to rescue the Postal Service and disrupt the shipping industry

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Amazing overview of average margin earned by apparel distributors- can also be extended to other via @fail_harder

Amazing overview of average margin earned by apparel distributors- can also be extended to other via @fail_harder | Digital Transformation of Businesses | Scoop.it

This section will give you a quick background how Distributors, Retailers, and Brand Direct E-Commerce work as businesses and their corresponding relationship to the brand who makes the products available for retail.

Farid Mheir's insight:

Simply amazing paper that describes so well the different fulfillment models. Essential read for any eCommerce professional... and who isn't in this day and age? ;-)

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Rescooped by Farid Mheir from Agriculture numérique - Territoire et tourisme numérique
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La grande distribution franchit la barre des 2.000 « drive »

La grande distribution franchit la barre des 2.000 « drive » | Digital Transformation of Businesses | Scoop.it

Selon l'institut spécialisé Retail Explorer, la barre des 2.000 unités a été franchie au cours de la première semaine de mars, avec précisément 2.036 « drive » pour 10 enseignes. De leurs côtés, a2distrib et les Editions Dauvers, autres sources statistiques, en comptaient 1.986 le 2 février. On ne recensait que 1.000 « drive » en juin 2012 ! Selon le cabinet Argon Consulting, cette forme de distribution représenterait désormais entre 2,5 % et 3 % du marché français de l'alimentation et des produits de grande consommation.

Chez Leclerc, les « drive » ont généré 838 millions d'euros de chiffre d'affaires en 2012, soit un quart de la croissance de l'enseigne, et l'objectif est d'atteindre 1,4 milliard en 2013 avec 400 unités.


Via Paul-Jean Ricolfi, Aqui!Presse Formation&Conseils
Farid Mheir's insight:

Sorry for the french text but it shows the interest with regards to order pickup rather over delivery or shipping.

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How digital made Nespresso possible- an in depth analysis of the business model via @BDoom

How digital made Nespresso possible- an in depth analysis of the business model via @BDoom | Digital Transformation of Businesses | Scoop.it
Nespresso is a machine-and-pod coffee concept for making espresso, developed by the food multinational Nestlé. By fitting an aluminium coffee pod into the machine, perfect espresso can be made at t...
Farid Mheir's insight:

Nespresso has grown into a powerhouse by leveraging the digital tools: eCommerce website, community, third party logistics, etc. Yes it oepns stores for the experience and the product feel. But it also leverages the digital tools to grow into a huge business with little overhead.


Wondering how the business model canvas can be leveraged? Here is a great example.

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Same-Day Delivery not important, next-day delivery/pickup may be traditional retailer edge via @stratandbiz

Same-Day Delivery not important, next-day delivery/pickup may be traditional retailer edge via @stratandbiz | Digital Transformation of Businesses | Scoop.it

The proper URL is

http://www.strategy-business.com/article/00213?pg=all 

Farid Mheir's insight:

No surprise: customers are not willing to pay for delivery and they don't care much about same-day delivery. What is interesting is the analysis that this may provide an edge to traditional retailers, as they already have a network of stores close to where their customers are. 


Booz adequately stresses the need for retailers to transform their business in order to offer order delivery. The changes are profound as they impact not only technology but processes and people as well, which rarely like change... 


I believe Booz may have forgotten to mention that order pickup in stores may actually provide a better alternative than delivery does. That being said, the transform is as important for pickup as it is for delivery.


Moreover, the analysis misses one key element I believe: delivery (or pickup) adds costs that traditional retailers did not have before online shopping. That places them at cost disadvantage over online pure plays (even if those pure plays open distribution centers, as they will target lower cost facilities that are perfectly suited for delivery or pickup).

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Death by a Billion Clicks - can BestBuy comeback?

Death by a Billion Clicks - can BestBuy comeback? | Digital Transformation of Businesses | Scoop.it
Best Buy ruled retail until it was knocked sideways by the Internet. Can it make a comeback, or is the big-box era officially over?


But Best Buy faced an even more fundamental challenge: The entire big-box retail industry appeared to be dying...


The mobile Internet posed an even larger problem for big boxes. Showrooming was a potentially existential challenge—customers coming into the store to get hands-on experience with a product, then whipping out their smartphone to purchase it from Amazon at a lower price...

Farid Mheir's insight:

What is even more interesting comes midway through the article: BestBuy still sells a lot of stuff, so even though there are challenges ahead the bulk of sales today remain in stores.


"It’s the biggest PC retailer, the biggest independent phone retailer, and the largest camera retailer in the world. It sells more tablets than any other retailer—including Apple. Last year, Best Buy clocked $50 billion in sales, roughly the same as in 2010. That’s about 50 percent more than the next-largest consumer-electronics retailer, Walmart. Analysts estimate that Amazon does just about $14 billion in annual electronics sales."

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