Amazon & Morrisons Disruption Tag Team!
Amazon and UK supermarket Morrisons have just announced a teaming up that could massively disrupt the UK Grocery market. This new bricks and clicks partnership will mean that Amazon would now be able to compete effectively with UK supermarkets using all of its significant brand and innovation muscle to differentiate. Morrisons which has had its own challenges with creating an e- presence and will have one of the most powerful e-commerce platforms on which to trade, leapfrogging their competitors in a single swipe. Wow! If you are a consumer this is great news as it will inevitably mean that the weekly shop would get cheaper and a hell of a lot easier. Just think:
- Amazon would drive competition on price with its tiny margins and bulk savings
- ‘Subscribe & Save’ means that the staples of your weekly shop could get delivered via subscription without thinking about it
- Existing Amazon prime customers could get free next day delivery on groceries at no extra cost
- Your groceries and your TV/Fridge/CD arriving together in a single delivery
- You could use vouchers and concessions across both Retailers
- You could take advantage of Amazons delivery network and get deliveries to your home, work, and station – and one day have them delivered by drones!
What Amazon have been able to do is to take the Hypermarket concept, where you can buy everything from a single place that is convenient, and translate that to the internet with significant scale. For other retailers this could be the clarion call for change that is so badly needed. It will force them to think outside the boundaries of footfall and format to a new focus on value, customer experience where personalization of that customer experience is all-important along with a culture of continuous innovation. Some supermarkets have already sounded the bell with Sainsbury’s looking to purchase Argos instantly buying into their online presence and delivery infrastructure. But this isn’t going to be quick solution, with them having to marry completely separate systems and infrastructure.
The fact is that at the heart and soul of customer personalization and experience is data, and most retailers are in crisis when it comes to making this data available. Getting the right data to the right team at the right time requires a painful manual process that is slow and expensive and goes completely against the goals of IT innovation who are trying to move to be more agile. Retailers are hampered by legacy systems and complexity, but with solutions such as Delphix Data as a Service, the data from these systems can be liberated and literally double the speed of IT. When it comes to provisioning data instead of adding weeks to a development cycle, Data as a Service reduces it to minutes. Rather than relying on poor quality data subsets, you can have complete and current copies of the data. And rather than your teams using shared environments forcing developers to work sequentially on features, every team or individual can have their own data enabling true parallel working – one of the fundamental objectives of Agile, DevOps and Continuous Delivery.
Traditional retailers have made inroads into digital but this latest news of a tie-up between Morrisons and Amazon is a huge warning shot. If the supermarkets don’t remove bottlenecks like data provisioning and significantly accelerate their innovation, they are in danger of becoming irrelevant against the unstoppable hypermarket of the Internet – Amazon.com