For Big Business, “Digital Only” is a Myth & Misdirection Well Played by First Market Movers
Misdirection and distractions don’t simply happen in politics. They frequently happen in business. While I’ve written about this in the past, today’s edition of Barron’s delivers a stinging headline to Amazon and touts enterprises who are “fighting back” successfully.
Prognosticators and business pundits have long prayed at the altar of digital transformation, for the most-part pronouncing brick and mortar enterprises as “dead businesses walking.” Wrong. Brick and mortar businesses who don’t adapt are dead business walking. For example, everyone thinks of Apple as a technology company with digital peerless chops, yet Apple has opened 505 retail stores across 24 countries, including 272 in the United States. Amazon is planning on opening as many as 3,000 Amazon Go locations across the United States by 2021, and already has almost 500 with Whole Foods.
It’s an understatement to say that as a first-market mover, Amazon has done a tremendous job in moving business to and in digital platforms. Yet, the price that businesses paid in the Amazon tsunami isn’t simply in market share; businesses paid and continue to pay and heavy price in accepting and perpetuating the powerful business myth that Amazon will eventually win because of its superior technology; a powerful psychological advantage for Amazon. Frankly, it seems many businesses find it easier to focus and blame Amazon’s technological prowess for their lack of serious response.
When you boil it down, Amazon simplified the customer experience and made it easy. Period. Yet, many businesses continue to focus on its technology, a head-fake at best. And that misdirection that favors Amazon.
The lesson for enterprises here is to meaningfully invest in the customer experience, which is both digital and not; human and AI, emotional and rational. And communicate it meaningfully across business channels to include customers, employees, and stakeholders. Only those businesses who put their own confirmation biases and inter-industry echo-chambers aside will rise to defend their market share, and build their brands successfully against Amazon or anyone else.
Yes, your business can successfully compete, the question is do you the right people who are asking the right questions to help you get there.
