One "small" step for Customer Experience one giant leap for retail.

Or one could adress it one small step for Amazon one giant leap for Customers and the variations can go on... 

 

But back to the focal point, the Amazon Go concept that erupted on the Internet late 2016. numerous of reports and discussions has emerged since then. This is my first response or angle on it.

For some who are into retail this is expected however the implications of this entry and simliar will eventually change everything for everyone. 

And how is that?

Well, the retail business (parts of it however) has always been in the fore front of innovation and customer experience but the broad mass has always looked into what others do and never truly taken the a step except for Target.  Amazon on the other hand is constantly pioneering every aspect of it from a service vantage point.

The entry of Amazon Go marks an true change in the market. Reason for that being that they excelled, refined and pushed the limits of what the future Retail Customer Experience should be. This alongside other innovative strongholds such as Google, Apple, Facebook with wast insights based on their user base. They have already started transforming the market in comparison to their traditional successors and they are increasing their knowledge by the millisecond. Sure their are C-suite executives that are fully aware of this but probably lack the appropiate actions or way ahead to gradually transform their offering to suite the rules of the market. It is evident that the change of mindset is key to be a vital player. 

So what should a traditional Retail CEO look or rather re-focus on?

For now I will not dwell into the part of workforce and how AI gradually will replace traditional workforce (more in upcoming post shortly). But focus should first and foremost be a customer experience driven approach to business but also refine other aspects of the business suite the new market place. Amazon Go is not only a offering it is also one of the first true evidences to the era of Liquid Services (as established by Accenture). Services that forms itself around the specific Experience of each customer rather than a group and that emerges a business focus on:

  • Growth of connected devices
  • Connected sensors
  • Networked connectivity
  • The Cloud
  • Data and analytics
  • User Interfaces

Living Services will talk to us. They will know us. They will entertain us, assist us and protect us. They will respond by wrapping around us—constantly learning about our needs, intents and preferences, so they can flex and adapt to become more relevant, engaging and useful. 

 

This will be the pivotal battleground for organisations over the next couple of years. And also what be a focal point on the blog onwards.
 

Disruption OR TRANSFORMATION is no longer an if

Disruption and transformation is all around us these days, prominent key note speakers at large summits bombarding us, large organisations that want to associate their brand with it and start-ups doing it each and every day as part of their everyday operations. 

But the broad mass of organisations mainly consume insights, upcoming trends and do not act and nervously laugh along with colleagues and partners at summits and conferences across the globe. Defending their actions with: "Well this is not for us", "That is not part of our core offering.", "Inspiring but that would n e v e r apply to our industry"

"Inspiring but that would n e v e r ever apply to our industry"

Can they really afford neglecting it any longer? 

What happens if one miss the first crucial opportunity and need to play a double catch-up race with at least twice the cost to begin with. If you are in business of any kind today, everything is questionable, ready to be disrupted or transformed from the core - really it is.

A good example to exemplify this, is what is currently happening in the field of traditional financial services and banking. A recent study shows that 1/3 of all bank jobs will be gone in a nearby future. That threat (or rather opportunity) is real. The disruption is digitalised advisory that is sharper, more accurate than its predecessors. User and customers are growing tired of constantly being mistreated with the bombardment of news relating to large financial institutions being part of organised tax planning and huge profits at their expense. The shift is real and one cannot lean against regulation and legislation forever.

Another evident example. I passed the EY head office in the central parts of Stockholm yesterday, on a small billboard it said:

 "EY - Swedens best firm of accountants 2015."

No surprises there. But 20 meters further down the street where and ad-agency earlier was based something is going on:

It is the future head office of Dooer

Dooer is a start-up company with focus on "Future of accounting". Target groups being both business owners both surprisingly also accountant firms. Beeing inclusive not exclusive is a key learning here.

 The service automises accounting and eventually it will become and a AI (artificial intelligence) that will evolve over time making razor sharp tax deductions/planning etc in real time. Quicker and more efficient than its human predecessors. Opening its headquarters on the same street as EY might be coincidental (I think not) but a clear example of how disruption suddenly have landed on ones doorstep and there is very little to do about it other than embracing it and possibly be more innovative. Of course one could pull the traditional trick of acquiring the potential threat. I would advocate acquisition with open mindedness. 

Be mindful, treat it as an possibility to transform your organisation by adding a innovative layer and continue to develop it by investing in the organisation, new processes and evidently the numerous of new customer needs that you will and can meet from here on out and you will never be done. Your business idea may need to transform but that's a reality for everyone nowadays.

Ever evolving will be your new mantra just as long you have identified a relevant direction for your company in correlation to the consumer and their needs.

Saying is one thing but actually doing IS APPARENTLY another - WHY is that?

In a recent study with 400 CEO:s in the Nordic region. The question was about their view on digitisation and whether they saw it as a possibility rather than a threat.

 

An demonstrative majority (95%) considered this as an possibility. 
So this would make any politician quite happy, the innovation and future ambition of our industry leaders are future proofed or at least very hopeful.

But there is a downside to this also. The same study also showed of the 400 CEO:s only 42% considered their organisation to be prepared to take advantage of these possibilities. 

One could draw many conclusions from this, but from a hi-level perspective it is evident that the leaders of these organisations naturally want to claim their digital approach but when it really comes to their own transformation, it is not in place. Why is that?

To be provocative, it is basically easier to just say that you are a believer but when it comes to really transforming your business into this the truth is quite the opposite. So why is it still so hard? From my own experience I would say the most obvious reason for this is that manangement in 8 out of 10 cases view digital as a separate initiative not necessarily as a part of their overall business approach. It is basically a hygien factor to have a up-to-date informational web page that is dressed with the logotype and more or less content. It is also traditionally driven from the marketing department in some form. A traditional webpage , acting as the communicative channel, putting out the occasional campaign, recruitment ads and the annual report. Or base ones engagement in social media on, "Everyone else is there so why shouldn't we". People will "like" us!?

The obvious question, isn't that enough?

Maybe if you have a unique business, a truly differentiated market or/and product and no competitors. Hesitation towards what Internet was back in the late 90's or the early 00's could possibly have granted this type of behaviour but if we look what the wast majority of companies have done (start-up scene excluded) there is really not that much has happen. Sure things are going fast, really fast now days but they will only move faster, markets become more saturated and customers even more disloyal. So where to begin?

Some input to start with:

  • Re-adjust so your overall strategy fits the new possibilities of digitisation. The digital aspect of your company needs to be mended, mended as well as the other parts of your business, because it is part of your business not a separate initiative.
  • Create and organisation where digital is as important as any other division or even better integrate them to your traditional divisions - adress ownership from the boardroom down to R&D.
  • Don't wait for competitors to take the first step, look into other businesses and be influenced by them instead. Your first steps towards transformation will possibly be inspired by companies or people outside your industry.
  • Use digital platforms as a way of helping your clients doing business with you. 
  • Build the relation on behaviours rather than products.
  • Offer context to content.
  • Could digital platforms possibly offer the possibility of new services within your business?
  • Measure, digital platforms offers unprecedented ways of monitoring performance and ways of more rapidly adress measures if performance is poor. (NPS etc)
  • Know that failing is not the end but only the a part of an even greater success.
  • Remember there is just business and digitisation is a part of that...
  • Let innovation be evident in all your channels, departments.

Last but not least we finish off this with some wise words.

Listen to Angela Ahrendts and her view on this. This was when she was at Burberry. Her work there granted her a top position at Apple which she currently holds.


Remember, if you don't take that leap of faith chances are that you possibly do not have any business plan to mend in five years time.