Digital Transformation of Businesses
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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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Rethinking the Value Chain in an era of #digital, #social, #AI and #IoT via @capgemini 

Rethinking the Value Chain in an era of #digital, #social, #AI and #IoT via @capgemini  | Digital Transformation of Businesses | Scoop.it

Rethinking the Value Chain: New Realities in Collaborative Business – the premise of this report suggests that the industry’s traditional approach to the value chain, whereby product and information flow linearly and sequentially from supplier to manufacturer to retailer to consumer – is no longer sufficient. The findings further point out that value chains cannot keep pace with the new reality of global changes in consumer behaviour, business innovation, demographics and economics. As a result there is a need to lead a shift away from value chains towards more collaborative value networks. The report takes a closer look at the trends impacting the industry while presenting the strategic areas of focus for concrete actions.

Farid Mheir's insight:

Digital impacts back-office as much as front office - so why has BO changed so slowly and what should be done. Some recommendations here

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Charley Bang's comment, January 18, 10:34 AM
https://goo.gl/Jij3g8
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Parcel delivery #disruption coming with #Amazon building '#Uber for trucking' app and self-driving trucks 

Parcel delivery #disruption coming with #Amazon building '#Uber for trucking' app and self-driving trucks  | Digital Transformation of Businesses | Scoop.it
Amazon is building an app that connects truck drivers with shippers, getting itself into the $800 billion trucking industry.
Farid Mheir's insight:

WHY THIS IS IMPORTANT

A key piece of eCommerce and retail has to do with delivering packages from warehouse to customer homes or offices. Amazon spends 12% of its revenue for shipping and is expected to ship more volume than FedEx in 3 years. To reduce this cost and improve customer service by allowing more frequent and faster delivery, Amazon has been doing a number of things:

1- putting trucks on the road with its AmazonFresh grocery delivery service;

2- building delivery infrastructure between its warehouses and distribution centers and delivery spokes;

3- now it is planning to become a broker between small parcel delivery providers in a UBER like model (this article)

4- self-driving vehicles have been targeting trucking industry as their primary focus, with UBER recently investing in startup OTTO and demonstrating a 2000 case beer delivery via self driving truck

Combine all these innovations and you have a profound disruption in the delivery and logistics industry. Retailers should now consider Amazon no longer as an online marketplace and third-party logistics company (3PL) but also as a parcel delivery solution provider that can compete FedEx and UPS provide last-mile delivery solutions and eliminate the need for retailers to maintain or lease their own delivery vans and trucks.

 

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Jean-Simon Venne's curator insight, December 17, 2016 11:35 AM
Amazon truck after the done!
prgnewshawaii's curator insight, December 17, 2016 11:51 PM

Thanks to reporter Farid Mheir on the transformation of Amazon.com into a major delivery giant.  Amazon is aggressively pursuing speedier deliveries through a variety of means, including trucks, FedEx, and even drones.  Amazon is transforming itself into UPS's major rival.  Amazon has transformed online market and delivery.  Business owners should pay attention to this new marketing trend.


Russ Roberts


Hawaii Intelligence Digest


https://hawaiiintelligencedigest.com

Charley Bang's comment, January 3, 10:26 AM
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Jeff Bezos: Amazon won't compete with FedEx and Purolator & USPS - I don't believe him

Jeff Bezos: Amazon won't compete with FedEx and Purolator & USPS - I don't believe him | Digital Transformation of Businesses | Scoop.it

Selected quotes include:

  • Mossberg asks if Bezos wants to build a delivery system. "No, but we're aiming to supplement it heavily," he says.
  • During peak holiday seasons, Amazon has to bring in its own trucks in many countries, he says.
  • "We'd always like better prices" from FedEx, Bezos says.
  • "We are driven to supplement their capacity," he says. "We're growing our business with UPS. We're growing our business with the US postal service. And we're still supplementing it." 
 
Farid Mheir's insight:

Jeff Bezos said during Code conference that Amazon will not get into the delivery business to replace partners - but will supplement it heavily.

 

I wrote before that amazon will get into the grocery food delivery business because it is the only way they can reduce their delivery costs - costs they have to give to fedex, purolator, USPS and others. So basically they will go into grocery business to break even and get free local delivery in certain key market areas. 

 

Recently, Walmart has begun pilot tests to deliver groceries using UBER (http://www.reuters.com/article/us-wal-mart-groceries-idUSKCN0YP0H6?il=0). This sounds like a great idea, focussing on each other's strength (walmart = products & logistics, uber = delivery) with no investment to access huge volume. This option may not be as efficient as the Amazon model however but be a great solution in periods of high volume.

 

To see what I wrote about this, see http://www.scoop.it/t/digital-transformation-of-businesses?q=amazon+fresh 

 

WHY THIS IS IMPORTANT

Delivery remains the biggest cost for online retailers. Between 10% to 20% of retailer costs are sunk into delivery. This remains a huge hurdle for both retailers and consumers compared to physical stores. I expect online retailer to be more and more creative on the delivery front to reduce costs and deliver faster.

 

Established eCommerce retailers should look for opportunities to improve delivery and newbies to never underestimate delivery as it is the CORE to make or break their online retail business. Mark my words... 

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Robot Revolution: These Are the Breakthroughs You Should Watch - Singularity HUB

Robot Revolution: These Are the Breakthroughs You Should Watch - Singularity HUB | Digital Transformation of Businesses | Scoop.it
Unexpected convergent consequences…this is what happens when eight different exponential technologies all explode onto the scene at once. This post (sixth in a series of seven) is a look at robotics. Be sure to... read more
Farid Mheir's insight:

Great list of breakthrough and predictions regarding robotics. I expect robotics to have a huge impact on businesses beyond manufacturing, in areas such as distribution, logistics, and tasks that used to require humans.

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Marc Wachtfogel, Ph.D.'s curator insight, April 2, 2016 7:32 AM

Great list of breakthrough and predictions regarding robotics. I expect robotics to have a huge impact on businesses beyond manufacturing, in areas such as distribution, logistics, and tasks that used to require humans.

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Amazon to put its own delivery trucks on the road and replace UPS-FedEx? A $400 billion opportunity

Amazon to put its own delivery trucks on the road and replace UPS-FedEx? A $400 billion opportunity | Digital Transformation of Businesses | Scoop.it
A growing amount of evidence indicate Amazon is getting into the shipping and logistics business, an opportunity some analysts say is worth $400 billion.
Farid Mheir's insight:

This article suggests that Amazon is creating a UPS/FedEx competitor offer to distribute parcels to end users. The article provides some very interesting data, and links. Other links include 

 

I don't agree Amazon would create a competitive offer. However I believe it makes sense for them to deliver packages in 2 use cases:

  1. create an internal distribution logistics infrastructure to fulfill its warehouses and transfer packages from its own locations;
  2. distribute to end users using grocery delivery solution as the baseline to get trucks on the road and effectively get virtually "free" delivery. A recent report indicates Amazon will be in the top10 grocer by 2019: http://www.bloomberg.com/news/articles/2016-03-17/one-wall-street-firm-says-amazon-is-about-to-feast-on-the-food-and-beverage-market

 

I wrote about this in the past here: http://www.scoop.it/t/digital-transformation-of-businesses?q=amazon 

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volkswagonsnot's comment, March 28, 2016 2:42 AM
Thats interesting
Jose Alberto's curator insight, March 30, 2016 5:08 PM

Honestly I can't tell if this is digital transformation per se, but it clearly shows an example of "no-limits" transformation!!!

Yendi Cohen's curator insight, April 1, 2016 2:04 AM

Honestly I can't tell if this is digital transformation per se, but it clearly shows an example of "no-limits" transformation!!!

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Amazon Shipping Costs are growing: what to learn from it?

Amazon Shipping Costs are growing: what to learn from it? | Digital Transformation of Businesses | Scoop.it

Over the past few years, UPS and FedEx have continued to increase their charges for delivering goods despite the fact that gasoline and diesel fuel have not seen a surge since 2011. The increase in charges primarily comes from consumers’ impulse buying and random purchases. As a result, the frequency of delivering smaller and lighter packages increases with separate shipments from different warehouses, which in turn creates the direct impact on the cost of shipping goods. In January 2015, both UPS and FedEx shifted their pricing metrics to dimensional weight on all ground shipments, which ultimately created additional pressure on e-commerce shipping.

Farid Mheir's insight:

Amazon is by far the largest online retailer. If its shipping costs are growing, as they appear to be, all other retailers should take note as they should expect the same.

 

This analysis suggests that we have started to use Amazon to buy smaller products more often, which in turns cost more to be delivered compared to the price of the item. Thus the surge. This may indeed be right, as Amazon Prime cuts down on the incentive to increase basket size to get free delivery.

 

So for Amazon the solution may be to increase the Amazon Prime membership price, open physical stores (as they have announced) or accelerate its deployment of local distributiuon centers to get closer to customers - thus reducing delivery costs, and delays. Or do all three!

 

For other retailers, the solution may be as simple as keeping the minimum order size to a high enough value that ensures sufficient margin to account for the free delivery costs.

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over50time's curator insight, March 19, 2016 11:37 AM

Amazon is by far the largest online retailer. If its shipping costs are growing, as they appear to be, all other retailers should take note as they should expect the same.

 

This analysis suggests that we have started to use Amazon to buy smaller products more often, which in turns cost more to be delivered compared to the price of the item. Thus the surge. This may indeed be right, as Amazon Prime cuts down on the incentive to increase basket size to get free delivery.

 

So for Amazon the solution may be to increase the Amazon Prime membership price, open physical stores (as they have announced) or accelerate its deployment of local distributiuon centers to get closer to customers - thus reducing delivery costs, and delays. Or do all three!

 

For other retailers, the solution may be as simple as keeping the minimum order size to a high enough value that ensures sufficient margin to account for the free delivery costs.

Frédéric Leconte's curator insight, March 21, 2016 3:51 AM

Amazon is by far the largest online retailer. If its shipping costs are growing, as they appear to be, all other retailers should take note as they should expect the same.

 

This analysis suggests that we have started to use Amazon to buy smaller products more often, which in turns cost more to be delivered compared to the price of the item. Thus the surge. This may indeed be right, as Amazon Prime cuts down on the incentive to increase basket size to get free delivery.

 

So for Amazon the solution may be to increase the Amazon Prime membership price, open physical stores (as they have announced) or accelerate its deployment of local distributiuon centers to get closer to customers - thus reducing delivery costs, and delays. Or do all three!

 

For other retailers, the solution may be as simple as keeping the minimum order size to a high enough value that ensures sufficient margin to account for the free delivery costs.

Juan Ortega's curator insight, May 20, 2016 4:48 AM
Amazon empezó con gastos de envío gratis... pero en la gráfica podemos observar como los costes han ido aumentando...
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This Is Big: A Robo-Car Just Drove Across the Country

This Is Big: A Robo-Car Just Drove Across the Country | Digital Transformation of Businesses | Scoop.it
Nine days, 15 states, and 3,400 miles after leaving San Francisco, Delphi's autonomous car arrived in New York City.
Farid Mheir's insight:

11 years ago the DARPA challenge for an autonomous car to drive across 150 miles in the desert resulted in no car being able to cross the finish line. Today, cars can drive 99% of the way across North America in autonomous mode, and Google self-driving cars has many million miles of driving experience behind its autonomous wheel. Where will we be 10 years from now (hey, I'll only be 60 then!)?


As Elon Musk recently said, in 20 years owning a car will be like owning a horse - http://bit.ly/1SCn0PF.


WHY THIS IS IMPORTANT

As I wrote about previously (http://bit.ly/1SCna9O), self-driving cars and other autonomous driving will be a revolution for commercial deliveries (autonomous semi-trailer truck now testing in Nevada http://bit.ly/1SCocm2) and other mundane tasks like commuting to work. The economies this may bring to forward thinking companies are enormous.

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Canada Post embracing e-commerce with modern pickup centres via @RCEQ

Canada Post embracing e-commerce with modern pickup centres via @RCEQ | Digital Transformation of Businesses | Scoop.it
The post office’s new parcel centres put it on the front lines of the battle to compete in a digital age
Farid Mheir's insight:

Not sure this thing will work but let's give them an A for effort.

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The latest data shows Amazon might be ready to replace UPS and FedEx for #delivery

The latest data shows Amazon might be ready to replace UPS and FedEx for #delivery | Digital Transformation of Businesses | Scoop.it
Amazon has 173 logistics facilities worldwide, so it might build its own logistical network — which should terrify traditional vendors like UPS and FedEx.
Farid Mheir's insight:

Amazon may replace UPS and FedEx with its own delivery service.


I wrote about this in the past when I assumed that Amazon is developing grocery delivery as a volume business to put trucks on the road and cut distributions costs drastically. In that light Amazon is not looking at grocery as a profit center - all it needs is an operation that breaks even because when it does, all other deliveries will basically be free of charge.


And this would mean Amazon will never open stores.

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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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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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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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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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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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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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Curated by Farid Mheir
Digital transformation technology consultant and Enterprise Architect. Works with business executives in the fields of eCommerce, Cloud, Web2.0, enterprise2.0, sourcing2.0