WHY IT MATTERS: Digital Transformation
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WHY IT MATTERS: Digital Transformation
Going digital in your business? I select the best posts and highlight the reasons why it matters. Like it? Click "recommend" + register to get the digest in your inbox: http://fmcs.digital/newsletter-signup/
Curated by Farid Mheir
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The world’s first crewless cargo ship will launch next year #digitalTransformation #WhyItMatters

The world’s first crewless cargo ship will launch next year #digitalTransformation #WhyItMatters | WHY IT MATTERS: Digital Transformation | Scoop.it

The world’s first crewless, automated cargo ship will launch in 2018, reports the Wall Street Journal, and is expected to be fully autonomous by 2020.

Farid Mheir's insight:

WHY IT MATTERS: we think of autonomous vehicles as self-driving cars. But we are more likely to see business and professional applications such as this self-driving cargo ship appear first.

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The biggest challenge in #eCommerce today is delivery cost and timing: Amazon is in a great position to solve this one as are grocery retailers via @statista

The biggest challenge in #eCommerce today is delivery cost and timing: Amazon is in a great position to solve this one as are grocery retailers via @statista | WHY IT MATTERS: Digital Transformation | Scoop.it

Amazon spent $21.7 billion on shipping in 2017.

Farid Mheir's insight:

WHY IT MATTERS: Amazon spends 14.2% of its net sales to fulfill orders and 12.2% to deliver them to consumers. Thus a quarter of the costs of products sold is allocated to logistical costs and this is the biggest hurdle to eCommerce wide adoption. Amazon and other pure plays have a number of key advantages over established brick-n-mortar retailers (no retail store costs, no store employees, etc.) but they have to battle with order preparation and delivery which traditional retailers delegate to their customers as they push their carts in the store aisle. In that context, recent announcement of Sobeys to leverage Ocado's automated warehouse technology or recent Amazon announcement to create a parcel delivery solution that competes with FedEx and UPS makes sense. Any retailer thinking of scaling its eCommerce operation should thus make sure that its business model is viable regarding fulfillment and shipping - all other elements of eCommerce are not an issue.

- Amazon SWA service: http://fmcs.digital/blog/amazon-package-delivery-service-to-compete-with-fedex-and-ups-swa-ecommerce-disruption-retailapocalypse/ 

- Sobeys Ocado partnership: http://fmcs.digital/blog/u-k-s-ocado-taps-into-canadas-online-grocery-market-with-sobeys-tie-up-is-canada-mature-enough-to-have-automated-grocery-fulfillment-centers-ecommerce-robots/ 

- Ocado's technology: http://fmcs.digital/blog/video-shows-ocado-warehouse-technology-that-sobeys-has-acquired-to-prepare-grocery-orders-is-based-on-an-army-of-small-robots-working-on-3d-hive/ 

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Amazon Just Announced Two-Hour Grocery Delivery From Whole Foods and other retailers are joining the craze - is grocery delivery the Holy Grail of the last mile that makes online eCommerce fast and...

Amazon Just Announced Two-Hour Grocery Delivery From Whole Foods and other retailers are joining the craze - is grocery delivery the Holy Grail of the last mile that makes online eCommerce fast and... | WHY IT MATTERS: Digital Transformation | Scoop.it

Traditional retailers like Albertsons, Walmart, and Target are clambering to acquire delivery-focused tech startups to arm themselves against Amazon as it moves into the grocery space.

Farid Mheir's insight:

WHY IT MATTERS: distribution is the final frontier, the last nut to crack in eCommerce today - as most other aspects, from technology to processes to business models, have already been solved. Distribution remains costly and often an area that retailers - pure plays as well as brick and mortar - struggle with.

As discussed in the past, grocery food delivery appears to be the holy grail of delivery: 1) put trucks on the road with fixed schedules to deliver groceries as the milkmen did in the past 2) manage to break even on these deliveries as this pays for fixed costs - all other deliveries have only a marginal cost and thus become essentially "free"

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FlashWebsiteHeader's curator insight, February 28, 4:28 AM

 

Lay out the substance. The key is to keep your Custom brochure design company basic and successful. An excess of data may make the pamphlet seem jumbled. Therefore, your message will be lost. Farthest point the quantity of hues used to in the vicinity of two and four and utilize each shading reliably. For instance, utilize one shading for the headings and subheadings, and another for general content.

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Amazon package-delivery service to compete with FedEx and UPS #SWA #eCommerce #disruption #RetailApocalypse

Amazon package-delivery service to compete with FedEx and UPS #SWA #eCommerce #disruption #RetailApocalypse | WHY IT MATTERS: Digital Transformation | Scoop.it

Amazon will launch a package-delivery service called Shipping with Amazon, or SWA, The Wall Street Journal reported. The service is designed to compete directly with UPS and FedEx. SWA is expected to roll out in Los Angeles over the next few weeks, then spread to other cities in the US during the year.

Farid Mheir's insight:

WHY IT MATTERS: this is not a surprise as delivery fees are close to 15% of Amazon costs. I wrote about this in the past numerous times and it looks like Amazon is moving in the direction of competing with large delivery providers. Again, Amazon only needs to break even on delivery costs, it does not need to make a profit. Moreover, going into grocery eCommerce can provide additional volume and predictable routes (think milkmen routes) to put trucks on the roads, pay for their fixed costs, and effectively make delivery "free" for all other product categories. When self-driving cars -or more likely autonomous vehicles - become a reality, Amazon will be there to reap the benefits. Another attack of established retail and distribution industry that Amazon is famous for.

More on this: Amazon vs UPS and Fedex (2016 but still relevant: http://fmcs.digital/blog/parcel-delivery-disruption-coming-with-amazon-building-uber-for-trucking-app-and-self-driving-trucks/ 

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Graphics Design's curator insight, February 15, 6:25 AM

Budget hearing center provides   Hearing Aids MN  to those people which are disabled by ear voice.

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Video shows Ocado warehouse technology that Sobeys has acquired to prepare #grocery orders is based on an army of small #robots working on 3D hive

Video shows Ocado warehouse technology that Sobeys has acquired to prepare #grocery orders is based on an army of small #robots working on 3D hive | WHY IT MATTERS: Digital Transformation | Scoop.it
1.7 million items a day across its four fulfilment centres
Farid Mheir's insight:

WHY IT MATTERS: On the heals of recent technology deals between Ocado and Carrefour in France and Sobeys in Canada, this paper and others explain how the technology works.

HUMAN-LESS WAREHOUSE

The technology is akin to a huge vending machine, where products are stored in compartments that robots can access when required. More important is that this technology can apply to any product you can buy online, not only grocery. In fact, figuring grocery item picking is probably the most difficult product category - with 3 temperature items (room, cold, frozen) and lots of small and delicate products (think tomatoes and meat). This will help reduce the cost and errors of web order fulfilment, and potentially speed delivery to make 1hr delays possible. When coupled with robot manipulation and self-driving delivery vans, the days of human-free order preparation and delivery is fast approaching.

RETAIL ARMAGGEDON

This will revolutionize the way we think of retail and distribution by making the store useless. The value chain will become produce-warehouse-home.

 

https://www.theengineer.co.uk/grocery-4-0-ocado-reshapes-retail-grocery-with-robotics-and-automation/ 

https://www.youtube.com/watch?v=iogFXDWqDak 

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Annie Mey's curator insight, February 5, 1:16 AM
Graphics Design's curator insight, February 5, 1:41 AM

In the event that you are good to go, custom vinyl banner design pulling in new clients could expand your pay. Flags are utilized to pull in the eye of potential customers like nothing else. Indeed, they are a basic device, have been previously and will keep on later on.

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The Robots are Here: a 30min video on the state of #robots & #robotics in 2017 @su_globalsummit

The robots are indeed already here. I work at a university where my job is teaching students and doing research and robotics and so I really what I want to convey to you today is the trends that I see robotics research going that will ultimately turn into actual products and directions that you might be able to take advantage of in the future.

Farid Mheir's insight:

WHY IT MATTERS : the video provides a great review of the state of technology when it comes to robots and robotics today from one of the leading researcher in the field. The talk is peppered with short videos of actual robots so you get a good sense of what's possible today. But remember that we live in an exponential growth era, so things improve very fast.

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Get on board with electric vehicles #EV & #Autonomous #Trucks as they will Disrupt Rail & Transform Logistics

Get on board with electric vehicles #EV & #Autonomous #Trucks as they will Disrupt Rail & Transform Logistics | WHY IT MATTERS: Digital Transformation | Scoop.it
ARK expects autonomous trucks to reduce the cost of trucking from 12 cents per ton-mile to 3 cents during the next five to ten years.
Farid Mheir's insight:

WHY IT MATTERS: if you do not include self-driving trucks and electrification into your strategic digital plan for distribution then you will have competitors that are 4x cheaper than you are competing for your clients in the coming years. Start planning what it means to your people, processes, and internal technologies. Put together prototypes and proof-of-concepts with startups in the area today. This is what digital transformation will mean in the 2020s: we are way past having a nice a website and eCommerce!

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Amazon challenge tests #robots stow & pick skills, soon to replace humans in #warehouse

Amazon challenge tests #robots stow & pick skills, soon to replace humans in #warehouse | WHY IT MATTERS: Digital Transformation | Scoop.it

Picking stuff up and putting it away sounds like child's play, but to online retailer Amazon.com, it is a high-tech, high-stakes game. This year, contestants competed in timed stowing and picking operations -- simple enough for humans yet nearly impossible for robots to perform reliably. For stowing, each robot was rated on how efficiently it could pick up items and put them on a shelf. In the picking phase, the robots had to put specified items into the proper boxes. The top eight advanced to the final round.

Farid Mheir's insight:

WHY IT MATTERS: robots will soon replace humans in Amazon warehouses, as there are already 45000 kiva robots and growing. Moreover, the tasks that robots can perform is expanding and Amazon is pushing the limits of what's possible with this annual robotics challenge. 

Also see

- Economist story http://econ.st/2yO8n90 

- projections that US manufacturing jobs will continue decline while robots growth at an accelerated pace http://bit.ly/2yOFhWO 

- PWC estimates that robots will replace pretty every human worker in every industry https://pwc.to/2yQ270n 

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teamfillets's comment, November 3, 2017 10:52 PM
Extremely good...!!
flaredauction's comment, November 4, 2017 1:00 AM

Extremely good...!!
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Kindred Robots Are Learning to Grab and Sort Clothing in a Warehouse for the Gap

Kindred Robots Are Learning to Grab and Sort Clothing in a Warehouse for the Gap | WHY IT MATTERS: Digital Transformation | Scoop.it

Next time you shop online for jeans or T-shirts from the Gap, you may have artificial intelligence to thank when the correct items arrive on your doorstep.

Farid Mheir's insight:

WHY IT MATTERS: forecasts are that robots will outnumber human workers in Amazon warehouses by 2020. This trial from GAP goes along in that direction: remotely-controlled robots with AI help prepare orders in the warehouse. This tech should be on everyone's strategic plan for distribution and logistics in the coming years.

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spootclass@gmail.com's curator insight, November 2, 2017 1:46 PM
Robots learning how to select a different clotes!
teamfillets's comment, November 3, 2017 10:53 PM
Its magnificent :)
flaredauction's comment, November 4, 2017 1:04 AM
Sweet
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Hypnotic video shows thousands of autonomous crates flying through Ocado's robo-factory #grocery #robots

Hypnotic video shows thousands of autonomous crates flying through Ocado's robo-factory #grocery #robots | WHY IT MATTERS: Digital Transformation | Scoop.it
The 90,000-square-metre warehouse is the starting point for 190,000 customer deliveries every week
Farid Mheir's insight:

WHY THIS IS IMPORTANT

This is one of the ways eCommerce will evolve in the near future: robotization. Orders are prepared automatically, without humans touching them. Even for grocery. Especially for grocery. Because it is a high volume, low margin operation, grocery mandates automated preparation. Of course, this level of investment can only be afforded at very high volume, which is the case in the UK where Ocado's warehouses like this can deliver 190,000 orders every week. No other country has this level of grocery eCommerce but when they do (think Amazon Fresh in the US), robotic warehouses like this will become mandatory to stay in business.

The last missing link will remain, of course, the last mile: delivery. There, self driving cars and drones may offer a solution.

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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  | WHY IT MATTERS: Digital Transformation | 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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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  | WHY IT MATTERS: Digital Transformation | 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.

 

Links in this post:

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Jean-Simon Venne's curator insight, December 17, 2016 11:35 AM
Amazon truck after the done!
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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 | WHY IT MATTERS: Digital Transformation | 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 | WHY IT MATTERS: Digital Transformation | 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 | WHY IT MATTERS: Digital Transformation | 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? | WHY IT MATTERS: Digital Transformation | 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 | WHY IT MATTERS: Digital Transformation | 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 | WHY IT MATTERS: Digital Transformation | 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 | WHY IT MATTERS: Digital Transformation | 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 | WHY IT MATTERS: Digital Transformation | 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 | WHY IT MATTERS: Digital Transformation | 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 | WHY IT MATTERS: Digital Transformation | 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 | WHY IT MATTERS: Digital Transformation | 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 » | WHY IT MATTERS: Digital Transformation | 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? | WHY IT MATTERS: Digital Transformation | 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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