Amazon is a Data/Cloud Service company (think of Google), is a technology company (like Apple) and is a business process innovator and platform (similar to Uber)…
…and, by the way, it is also a Retailer…
Talking about Retail, one of Amazon’s recent, controversial innovations – the “Dash button” (www.amazon.com/dashbutton) – is quite remarkable.
It’s remarkable because Continue reading
Definition: “virtuous circle” – noun
- a recurring cycle of events, the result of each one being to increase the beneficial effect of the next
Sam Walton built a business, Wal-Mart, that is now the biggest retailer in the world; what is extraordinary – the work of a genius – is the fact that he created from scratch an incredible, unbelievably simple, innovative retail business model: Continue reading
Creating and implementing retail technology solutions is very hard both for tech vendors and for retailers’ ICT teams.
The four most significant challenges are: Continue reading
Let’s see what the cost business model of omni-channel looks like, when you mix physical stores and e-commerce:
- your average physical store typically adopts a fixed-cost business model, where “fixed” means that there is no strong, direct relationship between costs and revenues; in other words, your brick and mortar store costs you X$ (for real-estate, logistics, personnel, etc.), and X doesn’t change significantly if you sell hundreds of items every day or if you sell ten times as much
- your e-commerce is far less capital-intensive and basically employs – above certain volumes – a variable-cost business model: the more you sell (…accept orders, process them, pick-pack-&-ship…), the more it costs
When you go omni-channel, you sell Continue reading
For Retailers, analytics tools – I think about reporting and BI applications, “Big Data”, etc. – are vital, priceless, competitive assets that allow answering the following fundamental questions:
- What types of shoppers are visiting my stores?
- What did catch their attention on the shop-floor?
- What did they purchase in-store?
- How many of them are repeat visitors?
- Whom did they engage with? About what?
- …and so on…
Now more than ever, Retail is moving from being a mainly instinct-based industry towards being more Continue reading