Harvard Business Review
REFERENCE "The Amazon–Whole Foods Deal Means Every Other Retailer’s Three-Year Plan Is Obsolete"
Darrell K. Rigby JUNE 21, 2017 UPDATED JUNE 21, 2017
This article describes Amazon's announcement of its purchase of Whole Foods Market, and how Amazon stock rose while competitor's dropped. We all know that digital and physical shopping is merging - but suddenly we all get the idea - if you are retail, there is no place to hide. The author points out that the only survival retail plan is to merge digital and on-site sooner and better than Amazon. If you are thinking it's Amazon's online commerce experience that matters - this author suggest the real advantage is the Amazon "innovation engine". They list 68 Amazon innovations from 1995 to 2017, about 1/4 having been abandoned, but helping Amazon learn and get later ideas right. Amazon credits their success to adaptive, agile innovation teams, working in creative environments, prototyping more than documenting, involving customers, and happily changing plans as they go. If you sometimes question going digital, don't over analyze - remember customers just want to save time, have more convenience, and get faster results. Without changing the business culture to move faster, innovation is just too expensive and risky for most business managers and owners.