Can you be all things to all people?
Conventional wisdom says “No”. But with AmazonSupply, there appears to be no adherence to conventional wisdom. AmazonSupply is Amazon’s foray into the B2B distribution marketplace. It serves as one of the more recent examples of Amazon using its logistics behemoth, along with troves of data, to change how things are done. Forbes has an excellent article providing full insight into all the key numbers which are sure to get your attention. But, it is not too hard to imagine that they will make more than a dent. Just take a look at the book distribution business, or where SaaS companies are hosting.
There is no question that the quoted statement is brash, and their ambitions are as bold as they come. None-the-less, if you are in business, it should force you to re-think your own business model. Amazon is a great example of a company that is effectively using technology to transform how things are done. So it is best that you not get too cozy in your current position. Unless you own the customer, you do not have a lock on the future.
Think about one of Steve Balmer’s famous quotes in 2007: “There is no chance that the iPhone is going to get any significant market share”. We all know how helpful that mindset turned out. I would much rather think along the lines of the former Intel CEO, Andy Grove, and his mindset and the title of his book “Only the Paranoid Survive”.
So when it comes to your business, what should you be doing? Where is your next pivot point? Or is it time for a transformation? The key underpinning technologies that seem to touch everything are: widespread wireless connectivity, increasingly fast data networks, increasing portable computing power, and increasing information sharing. There is no question that they will touch your business as well. Either in how you operate your business, how you serve your customer.
We are not in the age of maintaining the status quo. This is an age where new technology is giving rise to new business models on a continual basis. No time to sit idly by, or just be following the Kaizen principles of continuous improvement. It is not enough to just be going to the next level. It is much more an era where you need to be exploring which innovations to adopt, or which customer behaviors you need to adapt to.
Where to start? You need to give yourself a report card. How good of a job are you doing in solving your customer’s problem? And how can you do this differently? You can be sure that there are others out there who are giving these questions a lot of thought. Get inspired by the growth of new technologies and harness them to introduce your own innovation and creativity. Change is good. Your customers will welcome fresh perspectives and they will become better customers. Don’t allow the Amazon to wash over you.