Thanks to Amazon Prime, maybe there is such a thing as a free lunch
- October 12, 2015
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If you were in my talk at BPMCamp 2015 on quantifying business value, you will recall I ended with an analysis of Amazon Prime, and how to build a simple business case around it. Last week, Amazon announced it is adding food delivery to it’s catalog so subscribers can order from local restaurants delivered to their home for no extra charge.
To me, this is a great example of a business case chock full of real benefits that are just hard to quantify but valuable nonetheless. Lets look at the program from the suppliers’ (Amazon and the participating restaurants) standpoint.
Restaurants: When Amazon makes a change, it gets lots of press at the national level. A host of Seattle restaurants just got great free marketing, not to mention a lot more eyeballs on their menu through Amazons subscriber base.
Amazon: Amazon has already invested in the one-hour delivery infrastructure for Prime. This is a classic example of the capacity benefit I outlined. The more options they have to fill their one-hour trucks, the better they can optimize their business. Trucks may be filled with printer paper at 4 pm, and kung pao chicken at 6 pm.
The capacity benefit is the same model our labs offering offers to BP3 and our customers.
Problems hit a BPM program, all forward development stops to address the immediate demands. Our BP Labs customers delegate that troubleshooting and resolution to us to maintain their velocity. At BP3, we can dedicate a crack team of BPM problem solvers to each of these challenges because so many of our customers trust us with this responsibility. What would look like peaks and valleys to your program, becomes a steady and efficient work process at BP3. That is efficient use of capacity all around.
The Amazon program makes real business sense for everyone, but its hard to map just following the revenue trail. If all my Amazon shipments start smelling like the fragrant duck from Wild Ginger, then throw increased customer satisfaction into that business case!