Bitcoin, the leading P2P currency, is coming to an ATM near you. There is an ATM right here in Boston now! At least Boston keeps its place as a high tech center…barely. Anyways, first what really is Bitcoin, other than being linked to the infamous Winklevoss twins? Click here for a good crash video on what it is.
Coming to an ATM near you…better get your digital wallet ready
Basically it is an online generated form of currency, no banks, no physical currency is created. It allows the online community to have a form of money to empower eCommerce – not that your credit cards doesn’t still work. Online commerce could function and not have to pay some of the fees associated with credit cards and other forms of traditional brick and mortar payment methods. So what does it mean that you can now go to the ATM machine and “get” Bitcoins?
For the most part it feels like a marketing scheme, to make the every day user comfortable with this form of currency. Consumers are becoming more comfortable with eCommerce both via their smart phones, tablets or computers. They have become comfortable using their credit cards online. Bitcoin has to hope they start feeling comfortable seeing Bitcoin as a viable payment option. Showing consumers how to leverage Bitcoin in a format they are used to – aka the ATM machine – should allow for an ease of association with the medium. I get that the ATM gives me $20 bills (in New York sometimes $100 bills!), I get how to use my phone for more than phone calls….now I can somewhat better grasp how this all mixes together with Bitcoin. From a marketing and education perspective this makes a lot of sense. It is also interesting when it comes to the timing – with many highly publicized credit card theft issues from Target to Neiman Marcus could Bitcoin find away to offer a “safer” alternative for online commerce?
It will be interesting to see what the reaction is to these Bitcoin ATMs, will it uptick the usage of the currency? Will the curiosity fade after a few days? Regardless it will be interesting to watch and I believe the impact will reach further than we might expect today…think supply chain. A discussion for another post!
Comcast will drop $45.2 billion for Time Warner. Wow. That is a lot of cake. It is expected that that the deal will be approved. Although it might not have been a decade ago. But how things have changed when it comes to this industry.
It is coincidental that the other day I was watching an early Seinfeld episode where Kramer convinced Jerry to get illegal cable – since the Mets would be on cable 70 times that season. But would Jerry need cable today? He could stream the audio through Sirius or get the television broadcast through MLB.com. If Jerry wanted to watch HBO or Cinemax he could sign up online, get the app and then stream it directly to his tablet, smart phone or laptop. Oh and if he went out and got a Chromecast or Apple TV device, he can just send the signal directly to his 60 inch LCD television and watch on the big screen. Need to watch some Winter Olympics from Sochi? Stream that heated Russia vs China curling match directly through the NBC sports app. Need a recap of the day in sports? Flip over to your ESPN app and watch Sportscenter. If Jerry wanted to watch “Rochelle Rochelle” he can probably find it either on Netflix or on Amazon direct. All this…without having to go through the cable companies.
Cable companies still have the advantage of being in many of our homes, right there next to the TV. Most consumers are very familiar and comfortable with the set top box – DVR function, pay per view and content. But the are fighting a defensive battle, trying to protect what they have as they are being assaulted from multiple angles. The ability to cut the cable and still get your fix is easier and easier – click here for such a plan.
Good luck to Comcast and Time Warner. That is a lot of capital to grow your empire. But could this be similar to the expansion of the Ottoman empire in the 1900s, looks impressive on paper, but fundamentally flawed.
The past few weeks, or really the past few years, have given us plenty of examples of Amazon slowly but surely cranking up their disruptive aspect when it comes to supply chains. Of course, when we think of Amazon we think of the giant of eCommerce. A company that has not physical retail channel but one that can sell us anything from a copy of the Iliad to furniture to baby’s diapers. For me Amazon is the biggest winner from the crazy dot com days of the late 1990s. The giants associated with that era – Yahoo, AOL, WebVan, eBay, Geocities, Lycos – to name a few. Yes Google was around then, but I would argue their real rise to prominence came after the bubble.
But the one name that weather that storm and is a massive player – Amazon. The reality is that Amazon is that they are not only the 800lb gorilla in eCommerce and retail but also for supply chains. Here are some areas where Amazon is a disruptive supply chain force:
- Delivery – Anyone who watched or read about the coming of Amazon drones is probably expecting to get their copy of “50 Shades of Grey” or their latest set of Dr Dre Beat headphones dropped off by an unmanned flying machine. There is also the buzz that Amazon will look to have same day delivery, could be empowered by the rise of the drones. The eCommerce giant is also looking to conquer the enigma that is grocery delivery. Combine all these projects and you quickly realize that Amazon is bringing a whole
Coming to your personal airspace.
new perspective to delivery. The reality is that they might not be able to achieve all these lofty goals…but the fact they are pushing these ideas out there and that they are driving the conversation is disruptive enough. The fact that same day delivery is being mentioned will drive how our expectations are set as consumers. If I believe I can get fresh produce delivered to my door, do I accept getting anything that isn’t similar from the likes of Shaws, Whole Foods, Tesco, Giant Eagle, Safeway or any of the other grocery chain?
- Warehousing – Amazon has mastered this for a long time, ever since they started selling CDs and Books via the internet. In order to fulfill these massive online catalog and to do so in a timely fashion, they have become masters of how to manage a warehouse and more importantly how to run an efficient pick and pack, inventory and distribution from geographically placed warehouses. Their acquisition of Kiva demonstrates that they see how
The rise of the machines.
robotics and the rise of the machines will disrupt how we run our warehouses. There has been some rumbling about how they drive their warehouse work force to ensure they can meet their tighter and tighter fulfillment windows. This might become more disruptive from a negative perspective. However, overall look for Amazon to change the way warehousing is approached.
- Demand management – In the supply chain space, the holy grail is around better understanding and anticipation of what true demand is. A whole host of companies ranging from the likes of Orchestro, RSi, IRI, JDA, Steelwedge, SAP, Oracle, Kinaxis, Terra Technology to name a few, are all offering solutions that profess can better determine or predict what actual demand will be. But what about Amazon? They are already savvy when it comes to understanding what our buying habits on their web site – what else can or would we want to buy? Now comes word that Amazon has patent to provide “anticipatory delivery.” They are looking to better anticipate our demand! Wow. They will be able to put inventory on trucks before we even a)know we want the product b)order the product…talk about getting ahead of the demand curve. This goes beyond what some are tagging as demand sensing and moves into true demand anticipation. Again, will they be able to pull this off? Who cares. The fact they are speaking of being able to do so will create a disruptive mental wave that will have consumers wondering…”hey why can’t you anticipate what I want!”
- Mobility – The Kindle is a quiet mobile supply chain device. How? It allows Amazon to place mobile ordering kiosks in consumers hands. Giving Amazon another point where they can check on demand and buying patterns. Add to this the Amazon app that is available on iOS or Android and you have a mobile powerhouse. One that allows the company to get as close
A cash register and inventory system in your pocket!
as you can when it comes to POS information. With the app one could argue that Amazon have found a way to get into the four walls of the brick and mortar stores. Consumers have been trained to use the app as a mobile cash register and inventory system. Your daughter wants the latest American Girl doll? Scan a bar code or snap a picture and see what Amazon has…and if you want click “Buy Now” with your Prime account and boom, it gets delivered to your door.
So Amazon is the quiet supply chain disruptor. Whether or not they can pull off some of the projects they are tackling is inconsequential (well maybe not that inconsequential…). The fact that Amazon is driving the discussion around some of these hot button topics means all players within the supply chain cannot ignore some of the game changers that are on the table.
Amazon at the end of the is all about pushing more inventory through their system. But in doing so they are creating some mega changes when it comes to how supply chains think about and tackle a host of issues. Next time you get a box from Amazon remember – they are shaking up the supply chains as we know them.