Amazon and Whole Foods expose an ecosystem gap – the last mile

In case you were hibernating or out of range of cell cover or WiFi during the last few days, you know that Amazon has made an offer to acquire Whole Foods.

This places the largest online merchant in direct competition with some of the largest retailers in the US – grocery stores – and continues Amazon’s move into “bricks and mortar” businesses.

On this blog Paul and I have been writing about the importance of innovation in platforms and ecosystems.

With this acquisition, Amazon is attempting to extend its platforms into the “real” world and link up its power in the online world with physical stores.  Amazon understand a lot about attracting customers to its site, and does a reasonably good job at distribution.  Amazon gains a trusted “bricks and mortar” company that is respected (or sneered at) by consumers.  Whole Foods isn’t nicknamed “Whole Paycheck” for nothing, and there are some interesting dynamics between a company that isn’t concerned with profits and a company well-known for top of the line products and good customer service.  But we aren’t here to evaluate the integration of these companies, as much as to identify an ecosystem gap.

Amazon and the last mile problem

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The Future Is Within Health Ecosystems

Source: IBM Institute for Business Value

I have struggled to get my head around the effect of ecosystems within the healthcare system, it is so complex.

In recent weeks, I have recognized the barriers and opportunities around the challenges of building ecosystems for health services, to deliver real change within our healthcare and its management.

To help me, I have found some excellent observations to gain this deeper appreciation of the complexities involved. The links are shown at the bottom of this post.

This is my opening summary to relate my understanding of how ecosystem designs might help change this vital sector of our economies.

The first starting point is that the patient themselves have to become the center of any future healthcare system, based on ecosystem solutions. Why? Firstly, the patient or customer increasingly will be demanding and expecting personalized treatment and want to be in a position to shop around to achieve this. Secondly, they are expecting and wanting to be part of a controlled method and have the choice of advice and care delivery more than ever. Thirdly, they will shop for quality and cost as the cost models will increasing look for this personalization to determine the premiums. The final customer will be central to drive the change and the providers of ‘services’ keen to reposition themselves as responsive to this ‘need’

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Blockchain and distributed ledgers as innovative platforms

It had to come to this eventually.  The emergence of Blockchain and distributed ledger systems illustrates how innovation is moving from focus on products and services, which are interesting but don’t provide a long-lasting competitive advantage, to a focus on platforms and ecosystems.

Over the last few weeks this need for a lasting competitive shift in focus was emphasized as Ford pushed out its CEO because he wasn’t changing the company fast enough. As discussed in this blog previously, the automotive sector must rethink its competitive position.  Increasingly, people want flexible transportation – from cabs, Uber, public transportation and/or their cars.

The automotive manufacturers (Ford, GM, Fiat, Mercedes, etc) must shift their focus from building physical cars to providing transportation – a shift in thinking and strategy.

In a very similar manner we can see that banking and financial services are moving from offering discrete services (mortgages, loans, checking/savings accounts, etc) and are considering how to either own or integrate with larger platforms and ecosystems, because the older conventions are less attractive to emerging customers and technology is advancing so quickly that soon many different companies and industries can offer banking-like services.

Distributed ledgers and Blockchain may point out a new competitive platform that some firm is going to capitalize on.  For example, we can imagine a time in the not too distant future where a large company that supports and relies on an extended supply chain – the automotive industry for example – could dictate that all of its supply chain participants must interact using Blockchain.  Then we’d have a company spanning, industry wide ERP like platform.  If this sounds crazy, don’t laugh.  The government of Dubai just announced that within five years every entity that interacts with the government must do so using Blockchain.

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