Tag Archives: Amazon

All over for retailers?

This week I attended the DXC Digital Retail event in Paris, and that got me thinking…

In 1969 Sears, Roebuck & Co was the largest retailer in the world, had over 350,000 employees with it’s irresistable mixture of physical stores and unrivaled delivery services. They divested into Insurance, Banking, Real Estate, even handtools and furniture.

They were so big that they looked for a new HQ and ended up building what was, at the time, the tallest building in the world, the Sears Tower in Chicago. By the time, the office was complete the world had moved on. Today the tower doesn’t even have the Sears name.

The parallels with Amazon are massive, especially at this moment. Back to the Digital Retail event.

Listening to the discussion groups, everyone danced around the subject but they were all thinking of Amazon. However, what was obvious is that nobody thought that this was the end game. In fact, one CIO said it best (excuse any errors in translation).

“We’re all still investing in Digital looking for the pay back”.

With no obvious playbook for everyone to follow, the game is still open and how to play it depends on your clients, your brand and, of course, your product.

What does this mean for DXC’s clients? It’s time to innovate, change and see what happens. That’s almost obvious but it’s not an open door to change.

Since there is no playbook, it’s almost worth trying anything on the shop floor, it also means that this isn’t the time to drop the ball on the basics. The back office needs to be efficient, solid and dependable; almost invistible. Only this allows you to shine in front of your clients day after day.

#DXC #Paris #Retail

 

The future of Amazon…

Nicolas Carr makes a series of good points…

“Amazon isn’t about to close down its physical warehouses, of course. But its digital warehouses could eventually become the center of its business. That may be good news from a financial perspective. Amazon has invested a great deal of money and ingenuity into fine-tuning its physical logistics operation, and that operation has given it an edge in online retailing, but the cost of storing, handling, and shipping physical goods has always been a drag on its profitability. That cost largely disappears when customers buy products as bits rather than atoms.”

Rough Type: Nicholas Carr’s Blog: Amazon’s river of bits

How about another plan? Amazon could spin off the logistics business. Remember, they have non-Amazon clients on their books. Once they reach a critical mass they could spin off the physical business and concentrate on the bits and bytes.

This also raises the possibility that the logistics business could be worth far more to FedEx, UPS and the others than as a seperate company.

Buy Amazon stock…

Wow!

“Adoption of Amazon Elastic Compute Cloud (EC2) and Amazon Simple Storage Service (S3) continues to grow. As an indicator of adoption, bandwidth utilized by these services in fourth quarter 2007 was even greater than bandwidth utilized in the same period by all of Amazon.com’s global websites combined.”

Amazon Earnings Call Details: Web Services Use Up More Bandwidth Than Amazon.com; The Kindle is a Hit

27% of Amazon Xmas Sales were Wiis!

If this is true it’s amazing. 27% of sales being the Wii. I suppose if you add iPods in that must be 80% of their business. Does that make all books “the long tail”?

Dear Jeff… The problems with technology reviews…

So the Kindle has been out a couple of weeks and it’s already a failure.  Scoble has a long list of things that he wants to change on his blog; Dear Jeff Bezos (one-week Kindle review) « Scobleizer — Tech geek blogger.And even Slate has had a go; Can Amazon save the e-book? – By Harry McCracken – Slate Magazine Before I go any further I need to point out that Scble’s idea of a social network is madness. Until everyone has one of these things, what is the point? It would just point out to everyone what a small market share of reading they have. This was the same issue that the Zune sharing functions have.However, there is a bigger issue here. All these reviews are from people that are interested in the technology not books. The EVDO functionality is magic to the average user, they can buy a book anywhere at anytime and they never sign a service contract. That is a real innovation, an innovation more important than the size of the Previous Page button!Roll on version two.