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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A twist on the people+process+technology: digital transformation requires culture+strategy+technology

A twist on the people+process+technology: digital transformation requires culture+strategy+technology | WHY IT MATTERS: Digital Transformation | Scoop.it

Many of the companies I work with are undergoing some form of a “Digital Transformation” to ensure they stay competitive and relevant into the future. These big, transformational changes are very hard and require far more than an investment in new technologies. They require a clear and solid strategy for how technology can be used to transform the business and provide better customer experiences, a culture that embraces change and collaborates heavily, and the technology capabilities to execute the strategy quickly and efficiently. Otherwise, these digital transformation initiatives will end up just like the failed ERP projects of the past we’ve all heard about or been a part of.

Farid Mheir's insight:

WHY IT MATTERS: a reminder that digital transformation is not only about technology...

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How Chinese tech giants like Alibaba are bringing AI to neighborhood corner stores - ensuring they remain supplier of choice for the long term

How Chinese tech giants like Alibaba are bringing AI to neighborhood corner stores - ensuring they remain supplier of choice for the long term | WHY IT MATTERS: Digital Transformation | Scoop.it

The future of retail is playing out in China's mom-and-pop shops. Alibaba says that over the last year, it has redone about 1 million mom and pop shops like the Huangs' across China. It has done the same with about a hundred superstores. Big and small, these outlets buy all their goods through Alibaba's platform and pay using its affiliate Alipay app.

Farid Mheir's insight:

WHY IT MATTERS: chinese eCommerce giants are making sure there is no difference between on-line and in-store, paying to renovate stores with the latest hitech (AI, Big Data) and turning them into loyal customers. The future of retail is being defined in China.

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Online Shopping Gaining Traction in Canada - 2% of total sales growing to 5% in 2020 via @nielsen

Online Shopping Gaining Traction in Canada - 2% of total sales growing to 5% in 2020 via @nielsen | WHY IT MATTERS: Digital Transformation | Scoop.it

Today, online fast-moving consumer goods (FMCG) sales account for 2% of total FMCG sales, or $2.2 billion, in Canada. However, that number is expected to reach 5.3%, nearly $6 billion by 2020. On top of that, Nielsen estimates Canadian FMCG e-commerce sales to outpace brick and mortar store sales by a margin of seven to one.

Farid Mheir's insight:

WHY IT MATTERS: eCommerce is growing even in fast moving goods (as opposed to categories such as travel or electronics)

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Kleiner Perkins’ Mary Meeker Internet Trends at Code 2018 #mustRead #weekendRead #video #AI #eCommerce

Kleiner Perkins’ Mary Meeker Internet Trends at Code 2018 #mustRead #weekendRead #video #AI #eCommerce | WHY IT MATTERS: Digital Transformation | Scoop.it

"When you have rising monetization, rising growth and rising data collection, it drives a lot of regulatory scrutiny whether it’s related to data privacy, competition or safety in content."

Farid Mheir's insight:

WHY IT MATTERS: this is the annual presentation to level-set everyone on the Internet, mobile, ecommerce, cybersecurity, epayment, personalization, etc. She covers everything and shows that digital transformation is in full swing. Just WOW. Again.

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The State of Retailing Online 2018 says retail Armageddon may not be as bad as initially anticipated

The State of Retailing Online 2018 says retail Armageddon may not be as bad as initially anticipated | WHY IT MATTERS: Digital Transformation | Scoop.it

The annual study conducted by NRF and Forrester examines key digital commerce issues. 

 

Key findings from this year’s report include:

  • Net-net, stores are growing: More surveyed retailers say they will be opening stores in 2018 versus closing them. This outlook contrasts with claims that the physical retail world is being displaced by ecommerce and is therefore doomed.
  • Omnichannel remains a key store investment area: Efforts like in-store pickup and endless-aisle investments have been a recurring theme for digital retailers for years, and continue in 2018 as retailers recognize these initiatives are often multiyear endeavors.
  • Digital retail continues to be the bright spot it’s been for years: Retailers continue to experience success in their ecommerce businesses, which have been buoyed by strong mobile commerce performance and improvements in key metrics like conversion rates.
Farid Mheir's insight:

WHY IT MATTERS: the number of retail store is growing - so why are we talking of retail armageddon? This research provides some insight, as does this newsletter from Axios: the armageddon may be for shopping malls - with only 300 of the existing malls to survive in a few years...

https://www.axios.com/newsletters/axios-future-ca246c67-295d-411e-8802-e41f11e11512.html 

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How Amazon Plans To Use Whole Foods to Dominate the Retail Industry #amazon #grocery

How Amazon Plans To Use Whole Foods to Dominate the Retail Industry #amazon #grocery | WHY IT MATTERS: Digital Transformation | Scoop.it

But with the $13.7 billion acquisition, Amazon had bought itself a real shot at remaking the $800 billion U.S. grocery sector—the last frontier of e-commerce and a massive one at that. Some 20% of retail spending goes toward food, but only 2% of those sales take place on the Internet. “Grocery is the Wild West for online,” says Carrie Bienkowski, the chief marketing officer of online grocer Peapod. “The size of the prize is huge, and it’s growing.”

Farid Mheir's insight:

WHY IT MATTERS: the article is a great review of the reasons why Amazon acquisition of Whole Foods is essential and why grocery eCommerce is the final frontier for the online retailer. Very good recap fo the state of eCommerce today, and its remaining challenges and opportunities.

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From Farm To Finished Garment: #Blockchain Is Aiding This Fashion Collection With Transparency from sheep to ssweater

From Farm To Finished Garment: #Blockchain Is Aiding This Fashion Collection With Transparency from sheep to ssweater | WHY IT MATTERS: Digital Transformation | Scoop.it

Designer Martine Jarlgaard has launched a pilot initiative that uses the blockchain to enable both transparency and trust around her collections as part of this week's Copenhagen Fashion Summit. Each garment has a unique digital token, enabling Provenance to verify every step of its production and create a digital history of that information including location data, content and timestamps, all of which is presented to consumers via an interface they can access through their item’s QR code or NFC-enabled label (so that it works on both Apple and Android devices).

Farid Mheir's insight:

WHY IT MATTERS: real-life applications of blockchain for traceability in the retail industry are starting to appear. With a global push towards fair-trade and local sourcing of products, we can expect solutions like this to be part pf every product tag in the future.

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The 30 Elements of Consumer Value: A Hierarchy

The 30 Elements of Consumer Value: A Hierarchy | WHY IT MATTERS: Digital Transformation | Scoop.it

Measuring —and delivering— what consumers really want. 

We have identified 30 “elements of value”—fundamental attributes in their most essential and discrete forms. These elements fall into four categories: functional, emotional, life changing, and social impact. Some elements are more inwardly focused, primarily addressing consumers’ personal needs. For example, the life-changing element motivation is at the core of Fitbit’s exercise-tracking products. Others are outwardly focused, helping customers interact in or navigate the external world. The functional element organizes is central to The Container Store and Intuit’s TurboTax, because both help consumers deal with complexities in their world.

 

Farid Mheir's insight:

WHY IT MATTERS: I find these elements of value to be a very useful tool when crafting digital strategies in B2C organizations. See the full paper in HBR here.

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Fabienne Fayad's curator insight, April 12, 9:50 AM
An another way to see the pyramid of Maslow!

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Retail Grocery: the Battle for the Food Marketplace

Retail Grocery: the Battle for the Food Marketplace | WHY IT MATTERS: Digital Transformation | Scoop.it

Traditional food retailers reigned supreme for many years and they still hold their own.Their large, loyal customer bases, high transactional frequency, and strong cash flow provide a foundation from which to innovate.

However, three emerging trends, along with the adoption of digital technologies, are threatening to leave traditional food retailers behind.

Farid Mheir's insight:

WHY IT MATTERS: this short post shows how traditional retailers - here grocery stores - are faced with profound transformations due to the arrival of digital technologies. From the increase in # of touchpoints (20+) to new ways of shopping and new business models, traditional retailers must adapt. The catch is that this adaptation is difficult because of pre-existing processes, systems, facilities, assets, and sometimes people.

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Retail Apocalypse data and insights: Part I - Who's Suffering?

Retail Apocalypse data and insights: Part I - Who's Suffering? | WHY IT MATTERS: Digital Transformation | Scoop.it

While there is evidence that the retail apocalypse is real offline. There are mixed signs about whether online retailing is experiencing a full apocalypse.

Farid Mheir's insight:

WHY IT MATTERS: traditional retailers and shopping malls are facing store closures as the eCommerce traffic continues to grow in popularity. This first part of a series provides some very useful insights and facts about what many are calling the retail apocalypse.

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Delivering Tomorrow: Logistics in 2050 via @DHL #Logistics

Delivering Tomorrow: Logistics in 2050 via @DHL #Logistics | WHY IT MATTERS: Digital Transformation | Scoop.it

Will we be able to create sustainable prosperity, or are we on the way to a climate crash? Is the world interconnected or fragmented? Which new technologies shape our everyday lives? In a new study entitled “Delivering Tomorrow: Logistics in 2050," Deutsche Post DHL Group presents five sweeping, sometimes radical, prospects for the world in 2050 as well as the impact they would have on the logistics industry.

Farid Mheir's insight:

WHY IT MATTERS: very interesting future projection regarding logistics and parcel delivery in the future by a world leader in the field - DHL.

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Salman Ali's curator insight, April 6, 1:17 PM
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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

 

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Should your business become AI-first? How can traditional retailers compete with Amazon as Rebuilds Itself Around Artificial Intelligence #AI #Retail

Should your business become AI-first? How can traditional retailers compete with Amazon as Rebuilds Itself Around Artificial Intelligence #AI #Retail | WHY IT MATTERS: Digital Transformation | Scoop.it

The Alexa voice platform and other deep learning projects have made Amazon an AI leader.

Farid Mheir's insight:

WHY IT MATTERS: if you are a retailer Amazon is your competitor. How are you going to compete with it if all you do is have a mediocre website, little social media presence, after-thought eCommerce? Well today you have to include AI in the mix because otherwise all your other efforts will be useless.

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eCommerce leader @Cdiscount opens 3000sq.ft. warehouse to let #startups innovate & disrupt #innovation #digital #disruption #agile @bastienginer

eCommerce leader @Cdiscount opens 3000sq.ft. warehouse to let #startups innovate & disrupt #innovation #digital #disruption #agile @bastienginer | WHY IT MATTERS: Digital Transformation | Scoop.it

The Warehouse est le premier entrepôt destiné aux startups pour créer la supply chain du futur. Créé par Cdiscount, ce lieu d’innovation propose un programme d’accompagnement de 6 mois, alliant à la fois du mentoring pour challenger la stratégie des startups, mais également des ateliers de codesign avec les utilisateurs experts de leur métier, afin de contextualiser les solutions logistiques des startups sélectionnées.

Farid Mheir's insight:

WHY IT MATTERS: we all say companies must innovate but often they struggle because of internal operational constraints - after all they have a business to run and cannot disrupt their operations to try things out. That is why such an experiment by CDiscount is so important: they have created both a *place* where startups can do their things and a *process* for them not worry if they break something. Can't wait to see the results of that - but I guess it can only be positive, how can it not be?

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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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If Workers Slack Off, the Wristband Will Know. (And #Amazon Has a Patent for It.) - #wearables are finding their way onto the shop and this is inevitable

If Workers Slack Off, the Wristband Will Know. (And #Amazon Has a Patent for It.) - #wearables are finding their way onto the shop and this is inevitable | WHY IT MATTERS: Digital Transformation | Scoop.it

The e-commerce giant has won two patents for a tracking technology that can nudge a human hand in the right direction — toward a warehouse bin, say.

Farid Mheir's insight:

WHY IT MATTERS: wearables offer the potential to help track our every move, providing a trove of information to improve health and work. Already there is proof that Apple watches can detect heart attacks. If this patent from 2016 by Amazon is built into a product and deployed, work productivity can improve as well. Of course this may have serious implications for privacy or work requirements, but we must get used to it. With robots falling in price and AI letting them do more and more human-level tasks, the future of work is bound to be measured much more closely than it is today.

 

Detailed description of the patent filing: https://www.geekwire.com/2018/amazon-wins-patents-wireless-wristbands-track-warehouse-workers/ 

Apple watch detects heart attackshttp://fmcs.digital/blog/killer-use-case-for-wearables-study-apple-watch-accurately-detects-heart-problems/ 

State of Robot industry 2017http://fmcs.digital/blog/3m-robots-in-2020-40b-industry-they-are-used-mostly-in-autophone-manufacturing-but-we-should-expect-more-industries-to-use-them-in-near-future-stats-china/ 

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The 17- Step Guide to Create a Successful Online Business in 2017

The 17- Step Guide to Create a Successful Online Business in 2017 | WHY IT MATTERS: Digital Transformation | Scoop.it

Learn how to quickly build a successful online shop starting from scratch with this complete how-to step-by-step guide. All you need to know in one place.

Farid Mheir's insight:

WHY IT MATTER: good reference to use as a checklist when you start your eCommerce activities - or just a reminder if you are already doing it. Moreover, just browsing through the list makes you realize at just how complex eCommerce has become over the years.

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Kool Design Maker's curator insight, February 8, 5:30 AM

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Kool Design Maker's curator insight, February 8, 5:31 AM

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

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Top 20 R&D spenders 2017: no retailer on the list, not even Walmart #ecommerce #retailArmageddon

Top 20 R&D spenders 2017: no retailer on the list, not even Walmart #ecommerce #retailArmageddon | WHY IT MATTERS: Digital Transformation | Scoop.it

This statistic shows the 20 companies with the highest expenditure on research and development in 2017.

Farid Mheir's insight:

WHY IT MATTERS: one chart say it all: retailers are not equipped to fight against Amazon unless they band together and innovate.

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Photos: Here’s what the new Amazon Go cashierless convenience store looks like

Photos: Here’s what the new Amazon Go cashierless convenience store looks like | WHY IT MATTERS: Digital Transformation | Scoop.it
Amazon is getting into more brick-and-mortar stores. While the retail giant purchased Whole Foods last year, Amazon had previously opened up a convenience store for employees under its own brand in Seattle in 2016.
Farid Mheir's insight:

WHY IT MATTERS: I was floored when Amazon announced the GO concept in Dec 2016 (13 months ago!) and commented about it in different posts http://fmcs.digital/?s="amazon+go". Now their 1st store opens and pictures start surfacing. The big question now is: how are established retailers going to compete with this level of digital innovation given their anemic investments in R&D? Most don't even have a good eCommerce website. No wonder pundits predict a retail armageddon...

 

top 20 R&D spend: https://www.statista.com/statistics/265645/ranking-of-the-20-companies-with-the-highest-spending-on-research-and-development/ 

retail armageddon: https://news.usc.edu/121222/retail-armageddon-more-bankruptcies-in-four-months-than-all-of-2016/ 

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U.K.’s Ocado taps into Canada’s #online #grocery market with Sobeys tie-up: is Canada mature enough to have automated grocery fulfillment centers? #ecommerce #robots

U.K.’s Ocado taps into Canada’s #online #grocery market with Sobeys tie-up: is Canada mature enough to have automated grocery fulfillment centers? #ecommerce #robots | WHY IT MATTERS: Digital Transformation | Scoop.it

Under the Sobeys deal, the two companies will develop a customer fulfilment centre (CFC) in Toronto using Ocado's grid and robots network and will also consider developing more centers in dense urban areas.

Farid Mheir's insight:

WHY IT MATTERS: Sobey's seems to bet that improvements in the warehouse logistics will deliver a profitable online grocery business model. I am skeptical for 2 reasons: 1) Canada is a lagger in the eCommerce space with few high density cities and low online grocery penetration, and 2) the only way to make money in online grocery is to figure out the delivery aspect of the process - the Ocado deal does not appear to provide any expertise on that front. But Sobeys (through IGA in Quebec) has been a pioneer in the ecommerce area, with my gang launching their first transactional website more than 20 years ago in 1996. So they know what it means to innovate.

Have a look at Ocado's automated warehouse robots to gain a better understanding of what Sobey's is getting in this deal: https://www.youtube.com/watch?v=XJqsdprXF5c

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At Retail Trade Show, Technology Is the Star #eCommerce #AI

At Retail Trade Show, Technology Is the Star #eCommerce #AI | WHY IT MATTERS: Digital Transformation | Scoop.it

The National Retail Federation expo resembles the electronics trade show CES, fixating on artificial intelligence, big data and automation.

Farid Mheir's insight:

WHY IT MATTERS: good to read for those that have missed the NRF this year.

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Walmart Puts Its Eggs in a Time-Saving Basket: Grocery Pickup #eCommerce #grocery

Walmart Puts Its Eggs in a Time-Saving Basket: Grocery Pickup #eCommerce #grocery | WHY IT MATTERS: Digital Transformation | Scoop.it

Seeking an edge against Amazon, the retail giant is pushing a service that delivers your order to your car. Customers never have to step inside the store.

Farid Mheir's insight:

WHY IT MATTERS: when a giant like Walmart says eCommerce grocery pickup is a good thing, you should listen. Then again, reading the article from the NYTimes, you could substitute IGA Quebec for Walmart and you'd have pretty much the same, except in 1998! We were such pioneers at mybutler.com that I have to question my business acumen - I was 20 years too early!!!!!

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#RetailApocalypse is often related to failing to leverage #digitalTransformation: analysis of 35 recent casualties #NRF2018

#RetailApocalypse is often related to failing to leverage #digitalTransformation: analysis of 35 recent casualties #NRF2018 | WHY IT MATTERS: Digital Transformation | Scoop.it

Is there life after bankruptcy? A compilation of major retail bankruptcies from 2015 to today.

Farid Mheir's insight:

WHY IT MATTERS: retail is transforming rapidly and companies that fail to transform using digital solutions are starting to suffer. With NRF retail conference around the corner, what do you think retailers should do to remain relevant?

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Curated by Farid Mheir
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