WHY IT MATTERS: Digital Transformation
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WHY IT MATTERS: Digital Transformation
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Curated by Farid Mheir
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Explaining the rise of curated shopping - can it "flip" the shopping model?

Another significant shortcoming for online retailers is that if a customer is unhappy with their choice, they rarely come back. For many years, large marketplaces such as Amazon and iTunes have addressed this issue with their use of customer reviews. However, there is now a growing trend that addresses some of the above and is a bit more convenient for shoppers: "curated shopping" lets retailers avoid some of the pitfalls, while improving the online shopping experience for their customers. Here’s a brief overview: 

  • Smart (and social) filters
  • Personal shoppers with a difference
  • The community advises
  • Personalised shopping magazines
Farid Mheir's insight:

Not sure that I agree that the curated shopping approaches are right but they do raise an interesting question: can the shopping model be "flipped" using digital means?


The current online shopping model is pretty much the same as the paper-based catalog or in-store shopping experience of the old days: browse a catalog, add items to a cart and then pay. The digitized experience can be more efficient (with searching, reviews, additional information, live help, etc.) but optimized does not mean transformed.


Can curated shopping transform the experience by having you pay first (for a curator's help), then receive products and return what you don't need or want? May not apply for apparel but maybe that grocery shopping would benefit from that flipped approach? Have an expert (diet guru, coach, famous chef) prepare recipes and a meal plan and automatically send you the appropriate items, along with the other things you need to run a house (cleaners, pet food, etc.).


What do you think?

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Peapod Attacks FreshDirect in Manhattan With Low Prices: Retail

Peapod Attacks FreshDirect in Manhattan With Low Prices: Retail | WHY IT MATTERS: Digital Transformation | Scoop.it
FreshDirect’s orange-and-green delivery trucks have ruled Manhattan’s double-parked streets for a decade, catering to New Yorkers too harried to schlep to the grocery store.

The growth will help Ahold reach its goal of tripling online sales to 1.5 billion euros ($2 billion) by 2016.

FreshDirect ... expects shoppers will remain loyal to the pricey fresh foods and ready meals that helped push sales to about $400 million last year.

Farid Mheir's insight:

Looks like NYC will be a key market for online grocers to compete. When will Amazon and Walmart move their "fresh" service from the west coast to the east coast?

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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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Online grocery market will double within five years

Online grocery market will double within five years | WHY IT MATTERS: Digital Transformation | Scoop.it
One of the fastest growing areas in retail expected to rise in value from £5.6bn to £11.1bn by 2018
Farid Mheir's insight:

Is UK the leading country in a worldwide trend or an aberration? Surely if the USA were to embark on the onnline grocery shopping trend, this would mark a serious impact of online over the physical world. So far however there are no signs of that happening any time soon.

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CHART OF THE DAY: The Big Opportunity For Amazon

CHART OF THE DAY: The Big Opportunity For Amazon | WHY IT MATTERS: Digital Transformation | Scoop.it

As ubiquitous as Amazon is in some people's lives, it's still just a tiny fraction of the world's retail sales. Heck, it's still a tiny fraction of e-commerce. This chart from Morgan Stanley puts into context the huge opportunity for Amazon to take more share away from traditional retailers. It's just getting started.

Farid Mheir's insight:

Always good to put things into perspective. Digital commerce is just starting and there are many opportunities out there to make your mark, innovate or simply grab market share.

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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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It Is Time To Reinvent Vendor Selection Processes | Forrester Blogs

It Is Time To Reinvent Vendor Selection Processes | Forrester Blogs | WHY IT MATTERS: Digital Transformation | Scoop.it

In the course of that work I have learned that the typical RFP-driven vendor selection process produces poor results. Clients find the technology or services are not what they expected, vendors are frustrated, and projects are delayed and costly. We have all been there.

Farid Mheir's insight:

This is so true and I believe Brian present a convincing case for rethinking the technology selection process. Then again, in certain cases, heis approach falls short but overall it is much better than the traditional RPF process.

Farid Mheir's comment, April 10, 2013 6:56 PM
To answer a query from Sophia, I think the approach falls short a little when it comes to the prepare section. Most of my vendor evaluations required a lot of work to prepare sufficiently clear descriptions of the needs and requirements. Very often it will require many workshops and interviews to get a clear understanding to put into the RFI document. Otherwise it becomes too generic and covers too much ground.
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Apple Has Twice the Sales Per Square Foot of Any Other U.S. Retailer

Apple Has Twice the Sales Per Square Foot of Any Other U.S. Retailer | WHY IT MATTERS: Digital Transformation | Scoop.it
Apple's retail stores makes more than $6,000 per square foot, more than twice that of the next most productive retailer.
Farid Mheir's insight:

This demonstrates that physical presence remains important in the digital world. But the experience can be transformed, as is the case in Apple stores that combines product demonstrations, classes, service - genius bar - as well as instant availability of products - no delivery delays. Moreover, with an Apple account, you can leave without a paper invoice - it gets emailed to you.

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Canadian Ecommerce excuses

Canadian Ecommerce excuses | WHY IT MATTERS: Digital Transformation | Scoop.it

I often hear one of the key reasons for the lack of ecommerce in Canada is due to the spread of the population all over what is the worlds second largest country. However this argument makes less sense when you look at the map below. It is true that there are relatively large gaps of low density and the size of  the country of course factors into achieving an efficient national distribution network, but the reality is the majority of us live closely packed along the border.

Farid Mheir's insight:

Would be interested in comparing Canadian population density with that of USA and then of Europe to see the differences. Would also be very interested in comparing the store density between the countries. Then look at the availability of USA online retailers that deliver to Canada easily.


I think it would help get a better picture and explain why we are so much behind in ecommerce here in Canada. But this map is a great reminder of our geographic reality.

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Georgia, Amazon face off over sales tax

Georgia, Amazon face off over sales tax | WHY IT MATTERS: Digital Transformation | Scoop.it
Amazon.com is in negotiations with the state about starting to charge sales tax to Georgia shoppers, three people familiar with the talks said.
Farid Mheir's insight:

Not charging for sales tax is a major price "advantage" that online pure plays have over brick and mortar retailers. By charging sales tax, Amazon sees this price advantage shrink but with warehouses that are closer to customers, it can reduce shipping costs and offer next day and even soon same day delivery.

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Ocado pledges it will make a profit despite another year of losses - Telegraph

Ocado pledges it will make a profit despite another year of losses - Telegraph | WHY IT MATTERS: Digital Transformation | Scoop.it
The chief executive of Ocado has pledged that the online grocery retailer will “make hundreds of millions of pounds” in the future despite reporting another year of annual losses and warning it is also unlikely to make a profit in...
Farid Mheir's insight:

Not easy to sell food online and turn a profit, even in the UK where the market is ripe and order volumes are high.

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AmazonFresh set to expand?

AmazonFresh set to expand? | WHY IT MATTERS: Digital Transformation | Scoop.it
After five years, Amazon’s local grocery-delivery service remains in limited test mode, but the Internet giant recently has made some moves that could set the stage for expansion.


“It is a very convenient service, but picking, packing and delivering grocery orders is expensive,” said former technology Vice President Nadia Shouraboura, who left Amazon last year to create Hointer, a robot-operated clothing store in Seattle’s University District.

“Just like apparel, the grocery business is both large and ripe for innovation, so I wouldn’t be surprised to see Amazon be very persistent and patient,” she said. “Jeff always thinks long-term.”

Farid Mheir's insight:

I've said this before: looks like Amazon will use grocery delivery to put trucks on the road and offer same-day or next-day delivery while bypassing UPS-FedEx and other carriers altogether. This will both bring down its costs (delivery accounts for 10-15% of the online costs) but also may prove that having a physical store presence is not required for online pure plays. We'll see...

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Next-Generation Ecommerce With Service Oriented Architecture | Get Elastic Ecommerce Blog

Next-Generation Ecommerce With Service Oriented Architecture | Get Elastic Ecommerce Blog | WHY IT MATTERS: Digital Transformation | Scoop.it
Next-Generation Ecommerce With Service Oriented Architecture - Ecommerce Platforms, SOA
Farid Mheir's insight:

Benefits of a reference architecture is highlighted here with a good comparison between legacy and SOA.

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L'e-commerce en France est en croissance de 21% au 4ème trimestre

L'e-commerce en France est en croissance de 21% au 4ème trimestre | WHY IT MATTERS: Digital Transformation | Scoop.it

Entre 2011 et 2012, le nombre de transactions réalisées sur Internet par carte bancaire a progressé de 22,7%

Farid Mheir's insight:

France numbers do show progression for eCommerce in terms of $ amounts continue to increase at a rate of 20% a year: this means total transactions are doubling every 4 years! 

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Online leaders of the pack: Lessons from Amazon, Nordstrom and Walmart

Online leaders of the pack: Lessons from Amazon, Nordstrom and Walmart | WHY IT MATTERS: Digital Transformation | Scoop.it
  1. leadership matters
  2. play th long game
  3. product mix
  4. customer experience
Farid Mheir's insight:

As I said, everyone is looking at what MAazon has done and wondering if what walmart will do with its digital transformation.

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Security worries still keep some consumers from shopping online

Security worries still keep some consumers from shopping online | WHY IT MATTERS: Digital Transformation | Scoop.it

The single biggest reason for not shopping online, cited by 32% of those who don’t, is that they want to purchase in person so they can see merchandise and avoid returns. But 26% are concerned that personal information will be used fraudulently, 21% that credit or debit card data could be used to commit fraud, and 18% that personal information will be sold to other merchants. 20% say shipping costs are too high.

Farid Mheir's insight:

Sounds about right: people still want to touch and see things - thus the "showrooming" wave we are seing - and are afraid their credit card will be stolen.

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2012 Guide to E-Commerce Technology

2012 Guide to E-Commerce Technology | WHY IT MATTERS: Digital Transformation | Scoop.it
The 416-page guide was developed with one goal in mind: helping e-retailers find the right e-commerce tools and services for their business. In the 2012 edition, there are 1,200 e-commerce vendors identified, categorized and profiled.
Farid Mheir's insight:

416 pages just shows how varied the field of eCommerce has become and how difficult it is for most business users to find their way when they want to go digital and sell online. Funny that this is a "paper" catalog. But a ebook also exists.

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Digital to Account for One in Five Ad Dollars - eMarketer

Digital to Account for One in Five Ad Dollars - eMarketer | WHY IT MATTERS: Digital Transformation | Scoop.it
eMarketer’s latest forecast for worldwide digital ad spending finds digital taking an ever-greater share of total media ad dollars. By 2016, more than one-quarter of spending will go to online and mobile internet formats.
Farid Mheir's insight:

No surprise, advertising digital transformation is well under way and accounts for a substantial part of the total already. Growth, however, is predicted to slow down and stay at 11% in Canada for example.

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Top 30 QR code uses

QR codes have really taken off recently as marketers find creative ways to integrate them into campaigns. Below is a roundup of some of the best campaigns
Farid Mheir's insight:

Mostly used for information providing, some translate into actual sales for Verizon, Scandinavian airlines, The Melt restaurant.

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Amazon extends unlimited 2-day shipping Prime plan to Canada

Amazon extends unlimited 2-day shipping Prime plan to Canada | WHY IT MATTERS: Digital Transformation | Scoop.it
Online retailer bringing popular $79 plan to this country
Farid Mheir's insight:

Finally it is here. Looks like fulfillment centers on both ends of the country (Ontario and BC) was a requirement to keep the shipping costs competitive. Now we can only expect this to increase Amazon adoption and market share in Canada.

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eBay Tries Two New Ways to Sell: Drop-Off Points and Home Pick-Up

eBay Tries Two New Ways to Sell: Drop-Off Points and Home Pick-Up | WHY IT MATTERS: Digital Transformation | Scoop.it
Last month, I got a close look at two of eBay's new pilot programs. One will pick up items from your home for sale, and another allows you to drop them off at a mall.
Farid Mheir's insight:

pure play online retailers - those with no physical stores - are now looking for ways to reduce the friction points when buying online. One of them is the immediacy of buying something in a store. EBay is obviously experimenting with ways to bridge the digital divide between sellers and buyers. But does it make any economic sense?

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Amazon’s Secret Sauce

Amazon’s Secret Sauce | WHY IT MATTERS: Digital Transformation | Scoop.it

The leader in digital retail, of course, is Amazon. It’s well known how they’ve revolutionized retail (and, more impressively, continue to revolutionize it). What’s less well known is how they’ve done it.


We did some analysis recently to understand how Amazon continuously moves the bar ever higher. In that analysis, we think, are clues for how multichannel retailers can improve their own operations and create the kind of customer experiences that Amazon has made standard across so many industries. Here is a short slideshow of the most intriguing insights we found:

Farid Mheir's insight:

Slide 9 : McKinsey presents very convincing arguments to show how Amazon has addressed almost all of the top reasons that prevent consumers from buying online vs. in-store. This should be required reading for all store owners and managers during startegic planning season.

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Six QR code campaigns that actually worked

Six QR code campaigns that actually worked | WHY IT MATTERS: Digital Transformation | Scoop.it
QR codes are now a common feature in marketing campaigns, though many people are often sceptical about their value.
Farid Mheir's insight:

Not surprising QR codes that worked involved coupons (i.e. free money) or  inherently mobile device usage (i.e. London transportation). So there is a place for QR codes, just not everywhere.

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Walmart embraces ‘showrooming’ | Canadian Grocer

Walmart embraces ‘showrooming’ | Canadian Grocer | WHY IT MATTERS: Digital Transformation | Scoop.it

Walmart is leveraging customers’ smartphones as one more way to make a sale.

And the key is to give customers reasons to use Walmart’s app while they’re in a physical store.

Walmart’s stores are “geo-fenced,” said Wire.com, so the location-aware app enters “store mode” when a customer enters through the door.

Once their phones are in store mode, customers are given an interactive version of the weekly on-sale circular for that store. Customers can see what’s new in the store and can scan bar codes with the phone’s camera for prices and lists of everything in a shopper’s cart so they know their total before getting to the checkout.

Wired.com points out that Walmart has effectively lured customer into two stores at once as the Walmart app interface lets you “flip” between the two stores–physical and digital.

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Internet to account for 20 per cent of holiday purchases

Internet to account for 20 per cent of holiday purchases | WHY IT MATTERS: Digital Transformation | Scoop.it
Lack of online opportunity means Canadians lag far behind U.K., U.S.
Farid Mheir's insight:

No surprise, Canada is behind on eCommerce. Canada is 5-6years behind US+UK+DE in eCommerce, with Internet to account for 20% of holiday purchases. Interesting that Lowes hardware store was able to setup and launch an eCommerce website in only 8 months.

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