It was a good week to be a Whole Foods shareholder. The pioneering organic grocer may have escaped the limits of its business model by selling itself to Amazon at a 25% premium to current share prices. Activist shareholders who had been pressuring Whole Foods CEO John Mackey to sell the company have gotten their wish.
What has Amazon bought? First, growth. The company has been interested in the grocery category for some time. It sells many non-perishable items on its website, and the AmazonFresh delivery service has expanded into a range of perishables. Bloomberg estimates U.S. food and beverages was a $795B category in 2016. It also estimates that Amazon captured only 0.8% of this number. Compare this to the estimated 17% share of consumer electronics sales that Amazon obtained in 2015.
In the following post, D’Amore-McKim School of Business Professor Timothy Hoff explains the impact of the changing payment landscape for healthcare professionals and how their task-heavy job roles are having a negative effect on worker happiness, increasing burnout, and creating new issues in the sphere.
From Modern Healthcare:
We live in challenging times for physicians, who are required to do things that are wearing them out and making them feel bad about their jobs.
Surveys showing large percentages of doctors burned out, dissatisfied with their work or regretting their career choice point to something deeply psychological that is happening to many doctors—something that should make all of us very concerned. Read more…
In the following post, D’Amore-McKim School of Business Assistant Professor Yakov Bart explains the advantages that companies can receive if they invest in improving customer engagement.
Marketing managers have long recognized customer engagement as an important driver of a firm’s financial success. By creating a highly engaged customer base, firms can increase their market power through enhanced loyalty of their customers, and get access to market insights based on customer behaviors, which is critical for any company looking to sustain value creation over time.
In parallel, major improvements in communication and information technologies have provided firms with new data-driven capabilities to capture, analyze, and exchange customer intelligence data at increasingly high volumes, varieties, and speeds. Traditionally, companies could gather such data only from observed transactions and market research surveys. Now, however, customers are constantly sharing information through social media platforms, by interacting with smart products, and by letting firms obtain other information about their locations and usage of online and mobile media through digital intermediaries. Advanced analytic capabilities also allow firms to apply obtained insights instantaneously to decisions on product design and communication strategies.
Nevertheless, despite both the recognized importance of and enhanced access to opportunities related to customer engagement data, firms often find it challenging to leverage these opportunities in a sustainable and long-lasting fashion. Read more…
In the following post, D’Amore-McKim School of Business Associate Professor Samina Karim explains the importance of a strong business foundation for technology and innovation leaders in today’s evolving business world.
How is the role of the Chief Information Officer (CIO) changing in today’s evolving business world?
Traditionally, the CIO role served internally to help other parts of the organization achieve their goals; it was predominantly a passive function that was thought of synonymously with “information technology” or hardware “computer systems.” In our current business environment, a CIO is often the one setting the strategy for how and what data can and should be gathered, which is then interpreted and transformed into information. This information may either be used strategically by the firm or may even be a product or service sold by the firm. Today’s CIO enables his or her organization to be proactive about handling information. Read more…