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How the world’s largest internet company built itself a bullet-proof enterprise

As this year’s Prime Day sent bargain-hunters around the world into a frenzy yesterday, Morag Magee examines the elements that contributed to Amazon’s huge global success…

Over the last couple of years, many have been asking if, when and how Jeff Bezos will take Amazon Fresh into the mainstream and if the bricks-and-mortar stores in the US will ever make it across the pond. Last month we got an inkling of his plans. Amazon announced it was buying Whole Foods for a hefty sum of $13.7 billion. This cements its entrance into the physical world by making use of Whole Foods’ network of stores in the US, Canada and the UK.

Amazon is without a doubt nailing it in the world of commerce, and while us NBU-ers are content with treating ourselves to a bite to eat from Whole Foods once a week, Amazon is quietly eating the world. That’s right, Amazon – not software (though software has a huge role to play in Amazon’s success).

How I hear you all ask? Well here are just four reasons behind the company’s success…

  • It built its technology infrastructure from scratch

    While Amazon is renowned for Amazon.com, today it is so much more than just an e-commerce provider. Founded by Jeff Bezos in 1994 as an online bookstore, Amazon started to scale at a time before enterprise-class SaaS was widely available. Therefore, Amazon had to build its technology infrastructure from scratch.

  • The productisation of internal services

    When I first read about AWS a few years ago, I wondered what its connection to Amazon.com was. A friend even suggested they were separate businesses. Oh, how wrong we were. Amazon Web Services, or AWS, are the on-demand cloud computing platforms used by thousands of individuals, companies and governments to have a 24/7 full-fledged virtual cluster of computers available. It’s also the operational infrastructure used in-house by the Amazon team. Amazon essentially took this operational piece of technology infrastructure and turned it into an external product. A product with an annual run rate of $14 billion

  • It’s futureproofed against inefficiency and technological stagnation

    Amazon has replicated this model and has rebuilt other internal tools as external services. The recent launch of Amazon Connect is another example of this. Moulded on Amazon’s call centres, Amazon Connect is a self-service, cloud-based contact centre platform. Through this productisation of internal services, Amazon has essentially futureproofed itself against inefficiency and technological stagnation. If anyone of Amazon’s external services is ever a commercial failure, or if the uptake is slow, this is an indication to Amazon that its internal services are lagging behind the competition, enabling the business to make the necessary amendments accordingly.

  • The company has always, and will always, be customer-centric

    Whether these customers are the e-commerce shoppers at Amazon.com, developers using the AWS platform or sellers on the Amazon Marketplace; Amazon is committed to being ‘Earth’s most customer-centric company’. Bezos defines this as listening to the customer and inventing for the customer. Noting that most of Amazon’s initiatives take five to seven years before they pay any dividends for the company. One of Amazon’s services – Fulfillment By Amazon (FBA) – has been 10 years in the making. All the profit is re-invested improving the service.

It’s hard to see another company coming close to achieving what Bezos and his team have achieved in the last 20 years. The tech giant’s commitment to its customers, and the productisation of internal services, have future-proofed the platform for years to come, enabling Amazon to constantly improve its services and offerings while investing in new products and acquisitions. What’s next for the company? Could it be the acquisition of Ocado? Or the launch of Amazon small-parcel shipping? Whatever its next move, we’ll all be watching closely.

 

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Lessons from PR Week judging

“It’s the Oscars of the PR industry”. These were the opening words of PR Week Editor in Chief, Danny Rogers, welcoming the judges to the day of reckoning. A full day of analysing, challenging, deliberating and ultimately deciding who will walk away with the gongs at the PR Week Awards ceremony in October.

And he’s not wrong. These are the most coveted awards in what feels like an ever-expanding sea of opportunity for agencies and in-house teams to show off their work. I’ve judged the awards a few times and I’ve always loved the process. This year is the 30th anniversary of the PR Week Awards, which coincides nicely with our 30th birthday. This makes it even more exciting to be involved.

Before we embarked on the task in hand, Danny urged us to prioritise campaigns that demonstrated clear strategies and measurable outcomes. Campaigns that demonstrated a strong return on investment. Sound advice, but a little surprising that he had to give it. Amazingly, there are still some entries still don’t tick some of the basic boxes. Namely, a clear strategy that links firmly back to the objectives delivered by the client (comms and/or business); an innovative approach that enabled the team to execute a brilliant campaign with tangible results and, of course, proper measurement.

I didn’t see any AVE, but some of the stats seemed mind-boggling at best, made up at worst. It’s easy to see how this happens. We all have access to tools that spit out some nice-looking numbers to impress our clients (reaching 1.2bn people in a UK award category was a highlight). However, we’re better than that. It almost feels that our desperation to provide killer results (‘if you put the coverage end to end it would reach to the moon and back’ – don’t worry, that one’s made up), we’ve forgotten the important stuff. We’ve forgotten why did we do it, and how did it help our clients?

That said, in our group of judges we also discussed how the industry has ‘grown-up’. We discussed the value of the profession and its role in modern-day marketing. This is encouraging and we’re on the right track, with what has been described as a breakthrough year for PR in Cannes. We judged some outstanding displays of creativity, and PR agencies across the UK are doing some great work.

But I have a confession to make. We’ve not always been brilliantly represented at PR industry awards. That’s partly down to not dedicating enough time to it. Because let’s be honest, award entry writing can turn into a full-time job. It’s also a case of feeling that the work we do isn’t eligible for many categories. There’s a natural slant towards consumer and not-for-profit campaign work. But that is understandable. You’re able to judge on creative brilliance against clear strategy and objectives that deliver unquestionable (and robust) results. Moreover, it’s also easier to understand.

Corporate comms is often more nuanced and behind the scenes (“oh let’s celebrate that huge crisis that we managed to avert by drinking champagne and jumping up and down on stage”). Business to business campaigns are, in my mind, no less creative or impactful. However, perhaps they don’t inspire the same number of entries. Maybe this is why the Krispy Kreme ‘Double Hundred Dozen’ campaign was highly commended in the B2B category in 2015. A simple lack of entries. When a campaign to raise the awareness of doughnuts in offices comes second in a B2B award category, you start to worry.

It’s not the fault of award organisers, but there are brilliant minds working in B2B that could pay more attention to awards. At Nelson Bostock, we’ve had a good year. We’ve already been nominated for 10 awards. However, we could certainly shout more.  But that’s what we’re going to do. Watch this space!

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Do it because it matters…

By Tim Lines

How can you understand and connect to an increasingly diverse nation if you are not diverse yourself? This stuck in my mind as we welcomed another bright group of students from the Taylor Bennett Foundation to NBU towers this week.

The beauty of the programme is that it helps the students and PR agencies to understand each other a little better. For students who are new to the industry and from a non-traditional PR background which is under-represented, it can be hard to know what direction to take. They get to meet a variety of agencies and companies across different sectors. They might not end up working in tech PR but that’s ok. After ten weeks, they’ll be able to make better and more informed choices when the time comes.

For Nelson Bostock Unlimited, days like this are important. They not only help the students; I mean who would say “no” to a tour of some of the best and most progressive agencies and in-house teams in town? They also remind us that we, as an industry, need to change for the better and fully embrace diversity. Not just because it is the right thing to do but because our agency must reflect the world we live in.

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An ode to the GIF

If a picture can speak a thousand words, is it fair to say a GIF can speak a thousand feelings?

At a recent Ignite event, during which each speaker had five minutes and a maximum of 20 slides to get their point across, our imagination was caught by one of the evening’s more enlightening talks all about the humble GIF.

Candace Kuss, Director of Social Media at H+K Strategies, argues that the GIF is a force of computing technology. Since its conception in 1987, it has increased in popularity because it allows people to express themselves quickly. Whether it’s a baby dancing, a Barak Obama mic drop, or a good, old fashioned, slow clap, GIFs help convey any emotion.

What’s more, the history of the GIF seems fairly unfettered by the concept of money. Steve Wilhite, the founding father of GIFs, has never taken a penny from them, according to rumours. While the original GIF was suited to logos, the animated version hasn’t been a success for brands. That’s not for lack of trying though.

It would seem the only thing that hasn’t caught on about GIFs is how to pronounce them. Apparently, it’s “jif” but don’t let that stop you.

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Swapping PR for Ponies

20150722 Copyright onEdition 2015© Free for editorial use image, please credit: onEdition Land Rover ambassador and London 2012 hero, Ben Maher, visited the Ebony Horse Club, Brixton to spend the afternoon with its young members. Ebony Horse Club is a charity which has brought horse riding to the doorstep of some of London’s most disadvantaged young people, and helped to improve their life skills, education and aspirations. Ben will give the young equestrian fans some expert riding tuition and some helpful horse care advice as well as meeting the Club’s most famous resident ‘Pedro’ the Shetland pony. Pedro recently attracted global media interest when the Club introduced a special ‘Pedro-scope’ to enable the Shetland pony to be able to see over his stable door. As part of his duties, Ben was asked to officially open Pedro’s new stable at the club. As well as giving some riding lessons, Ben Maher will present some much needed new horse equipment to Ebony Horse Club donated by Land Rover, including horse rugs and saddle pads for the ten horses and ponies that are stabled in Brixton. For more information please contact: For more details please contact: Hannah Mogg 07786 052926 or Charlotte Scott 07787 513142 at Fastrack If you require a higher resolution image or you have any other onEdition photographic enquiries, please contact onEdition on 0845 900 2 900 or email info@onEdition.com This image is copyright onEdition 2015©. This image has been supplied by onEdition and must be credited onEdition. The author is asserting his full Moral rights in relation to the publication of this image. Rights for onward transmission of any image or file is not granted or implied. Changing or deleting Copyright information is illegal as specified in the Copyright, Design and Patents Act 1988. If you are in any way unsure of your right to publish this image please contact onEdition on 0845 900 2 900 or email info@onEdition.com

Earlier this week, I swapped PR for ponies when I joined Ebony Horse Club on its annual outing with the Hampshire Hunt Pony Club. We receive a volunteer day at NBU. Thanks to this opportunity I was able to spend the day finding out more about Ebony.

I’ve been volunteering at Ebony Horse Club over the past couple of months after reading about it on the BBC (PR works!). The club was founded in 1996 by Ros Spearing, the former television researcher who is a keen rider himself. He didn’t see why equestrian activities should be the preserve of well-off children. His goal is to provide access to more kids.

Ten years on, the charity has grown to 79 active members. Up to 140 young people visit the centre each week. In 2011, The Duchess of Cornwall became its President. Ebony is located in the heart of Brixton, one of London’s most deprived areas. It provides the chance for its young riders to learn new skills and explore equine or veterinary careers. Having this opportunity can, in some cases, provide a lifeline for children who are facing significant challenges.

In an area which is still rife with problems, it is a safe haven. Children can have positive contact with horses. But also develop a sense of achievement and community to set them up for later life. It’s riding lessons and stable management, but also teamwork, discipline and learning to care for others. This can have a profound effect on young people in the area. Kids who are often the victims of unfair negative stereotyping.

For most of the riders at Ebony, the day out with Hampshire Hunt was a chance to be in the countryside and experience horse riding in surroundings they wouldn’t normally have access to. The day itself was filled with riding lessons, exploring the countryside on horseback, a BBQ, adorable Shetlands and plenty of dogs. However,  managing all of this with over 30 children on ponies is a huge effort from parents, instructors and volunteers alike. Overall, it was a great success and a fantastic kick-off to the summer holidays.

It was truly inspiring to get to know the kids better as everyone bonded through their love of all things equestrian. Find out more about the charity or donate through its Virgin Money fundraiser!

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The way into PR

This week 16-17-year-olds across the country head into school to pick up their GCSE results. These could guide them on the path to further education, vocational careers or maybe University. However, with PR, the traditional routes aren’t always necessary. There are plenty of alternative ways to get your foot in the door.

Yes, PR is an intricate and multifaceted field. But formal PR programs were only incorporated into academic training in the last 20 to 25 years. However, PR as a profession has existed since the early 1900s. When people still sent press releases in the mail!

Undoubtedly, a degree in public relations offers a strong foundation based on theory, as well as comprehensive knowledge of public relations practice rudiments but at NB towers, people are from a variety of backgrounds and sometimes a degree isn’t the only thing that’s going to set you apart from other candidates.

Take a look at some of the alternative routes some of NB’s own took to get where they are today:

After leaving school at 18 with a couple of A levels I bumbled around a bunch of jobs, never staying for more than a year or so – from pub shifts to working in a gym, to office admin work, I struggled to find my feet. So I decided to do two things: 1) move to London and 2) find a job in a creative industry. I’ve always had an interest in events, design and storytelling, so it seemed an obvious move. Enter, Nelson Bostock.

I started here as a receptionist seven years ago with little experience, but lots of enthusiasm and willingness to work. I learned about PR by osmosis. By helping out on projects when I had the chance. I jumped at the opportunity to move to the PR team as an Account Assistant. Unfortunately, I’ shit at PR, so I moved to finance. I stayed there for four years, two babies and a house move.

During my time in finance, I occasionally helped out Lauren – our only designer at the time – with in-house jobs when she was slammed (which was always). I picked up a few bits here and there about how to use design software and started to focus more on developing those skills. When I returned from maternity leave I was offered an exciting opportunity to join the design team (which by then had grown to three full-time designers) and here I am!

Advice I have for non-grads: be persistent, grab opportunities and find a company that’ll give you a chance, you never know where you might end up.

Laura Wynn-Owen, Designer

…

As an ex-teacher, I’m aware of the stress students are under to get great grades for a dream career. While getting results you can be proud of is important, the route to your dream job doesn’t need to be decided on paper. Now, as the New Business and Marketing Manager of a top-five Tech PR Agency, I couldn’t be further from my degree in Physical Education.

Taking the leap from teacher to marketing wasn’t straight forward. It depended on me taking risks and believing in myself. Knowing what you enjoy, what you’re good at and having the ability to articulate that is so important. At Nelson Bostock, we look at more than your education. Our core values are “Be Brilliant, Be Challenging and Be Admired”. When we have interns in, who may not have a degree, those three things are what we look for. So, when you get your results today/tomorrow, know that there are different routes to the same destination. To get there the most important thing is determination.

Hannah Bretherick, New Business & Marketing Manager

…

Most people seem to get into PR straight out of university. Either after doing a related degree or finding some work experience. However, it’s not the only way in. I entered this world a little later than most (only a little!). So, my road to PR is a little more unusual. It took me a little longer than most to settle on a career but now I have it has made me even more certain it is the right choice. I’ve worked a fair few other jobs (some great, some really not!) and completed a research masters in press regulation before I found my way here. That life experience has meant I’ve been able to bring a different angle to my role here. I may not walk as fast, hear as well or understand their crazy music but having a different life experience means I can still contribute.

Ben Cullen, Account Assistant

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Highlights from the Lords Select Committee on Artificial Intelligence

The House of Lords select committee on Artificial Intelligence recently gathered to hear evidence from witnesses across academia, law, industry, and the media. We attended to hear the latest insights on AI. But also the potential recommendations which for the government when the committee reports early next year.

There were concerns from almost every group presenting to the committee. Mainly around how AI will impact the UK’s workforce. Witnesses expressed worry about the growing number of industries in which jobs could be threatened. Suggestions made included incentivising employees to retain in future technologies and preparing the next generation for an AI-enabled world of work.

The Financial Times Employment Correspondent, Sarah O’Connor, told the committee how AI could drastically improve the UK’s productivity. This continues to lag behind major trading partners such as the US, France and Germany. The ethical implications of growing up in an AI-enabled world were top of mind for witnesses in all fields. None more so than education. Although primary school children, through to university students, will probably learn about the ethical impact of intelligent technology on society.

Michael Wooldridge, Professor of Computer Science at Oxford University, said business must take responsibility for the technology they create. He believes that it is becoming increasingly difficult to track algorithms and understand how they come to conclusions. Similarly, he thinks that developers must be aware of unconscious bias in algorithms. After all, these algorithms are shaping our perspective of the world.

Witnesses before the committee raised a crucial question: if AI does go wrong, who is accountable? Alan Winfield, Professor of Robot Ethics at the University of West England, stated that regulation should enforce a chain of accountability. He feels the owner, not the creator, of the algorithm, is responsible. Moreover, he feels these algorithms should be held to the same standard as physical products. They must be subject to rigorous testing and the scrutiny of third party agencies.

For other witnesses of the select committee, data privacy was a concern. On the one hand, AI can achieve much in the field of medicine, but without limits, our privacy can be exploited for financial gain. Academics such as Dame Wendy Hall discussed the possibility of treating data as a natural asset. Something that capitalises on the deep mines of information we each create. The likes of Tim Berners-Lee are working on personal databases, which give individuals complete control of their data. While projects like these are still in the pipeline, private organisations must ensure the consent process for data use is better understood by the public. Ultimately, data could champion AI, or see it fail. It depends on how the data is used.

With further evidence sessions to come, we won’t know the extent of the recommendations presented to the government until the report is published in March 2018. We expect the guidance will seek to protect our privacy while ensuring the UK can take advantage of AI progression.

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Our cashless society is affecting the homeless

The number of rough sleepers in the UK is on the rise. The most obvious of places to see this growing problem is in our own capital, which accounts for almost a quarter (23%) of the total number of rough sleepers in the UK (2,659 according to Crisis!)

In London, regardless of whether you’re north, south, east or west, you can see evidence of homelessness on every street corner. Alas, it’s only getting worse.

At the same time, the rest of the city is being engulfed in the realms of technological innovation. For most of us, technology has improved our lives, offering more convenience and instant gratification. Take contactless payments as an example. Many will remember the days of queuing at the station on a Monday morning to buy their travelcard. But then came the Oyster card, which could be topped up online from the comfort of your own home.

Today, Londoners don’t even have to worry about that. They can simply tap their payment device onto the card reader and skip merrily(ish) on their way to work.

Contactless payments have offered us a more convenient way of paying in our day to day lives. However, it’s also leaves many of us short of change. Change which would have once been used to offer warmth on a cold day, but now sits virtually on a plastic bank card, waiting for the next purchase of an extortionately priced chocolate on the way home, or a skinny-soya-mocha-vanilla-latte on your morning break.

Consider this: as you pass the Big Issue man with his lovely big golden retriever on your way into work in the morning, how often do you begin to reach for your purse, only to realise you spent the last of your change a couple of weekends ago? Or, how often do you now honestly (though apologetically) say to a charity collector, “I’ve got no change”, as they shake a bucket under your nose for Comic Relief?

At a guess? More often than not.

Whether we like it or not, contactless payments have completely transformed the way we pay for things. And businesses of all shapes and sizes have had to change and adapt to meet the consumer demand to pay instantly and electronically.

In our cashless society, even the charities have had to adapt to this new consumer habit. Just the other day I noticed my local Cancer Research shop had set up a ‘tap to donate’ in their shop window. With this option, consumers don’t even have to step into the shop to donate. Similarly, volunteers for the Royal British Legion were equipped with contactless readers for poppy donations this autumn.

Such luxuries don’t exist for rough sleepers.

With the nights getting colder, they need all the help they can get to keep warm. So if (like me), you’re one of those Londoners who is constantly without change, perhaps think again when you next pass a cash point. Or, why not volunteer or donate through one of the many charities supporting homeless people? To name a few:

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Voice-controlled devices dominate CES

CES (The Consumer Electronics Show) is a myriad of innovation and technology. A cocktail of ambitious start-ups, huge industry players and tech enthusiasts.

Connected devices dominated last year’s show. However, voice-controlled devices are this year’s major theme.

Voice-controlled devices exploded into our homes in 2017. Largely thanks to advances in Natural Language Processing (NLP), which saw Google sell “more than one Google Home device every second since Google Home Mini started shipping in October.” NLP technology, which enables natural speech to act as ‘commands’ to execute, has led to major advances in retail, as consumers use voice-controlled online shopping instead of ‘traditional’ online browsing.

Research from Narvar, an enterprise SaaS platform used by brands like Sephora, Levi’s, Gap and Neiman-Marcus,  shows that over 1.3 million British consumers have shopped online in the last six months using voice-controlled devices. This figure s predicted to triple in 2018. These devices are constantly ‘learning’ and improving their voice recognition. Google uses a combination of explicit linguistic knowledge and deep learning solutions to keep answers grammatical, fluent and concise.

Advances in NLP and AI are creating new opportunities for businesses and new experiences for consumers. The possibilities of AI-enhanced voice-controlled devices are almost limitless. However, these new ventures in uncharted waters have raised concerns regarding data privacy. These were recently highlighted at Lords Select Committee on Artificial Intelligence. While most consumers automatically opt-in to service agreements to allow providers to use their information for product improvement, there is still concern. The worry is that voice-controlled devices leave private information vulnerable to unauthorised access.

Tech companies are working hard to gain consumers trust that their data is secure. Google Home and Amazon Alexa voice commands are encrypted by default. It is safeguarding measures like this that will be pivotal to the advancement of voice-controlled devices. During one of the recent Lords Select Committee’s on AI, Dr Karachalios, MD, IEEE Standards Association, said AI advances can accelerate the promise of technology and “satisfy the material needs of humanity”. However, this bold claim will only come true if progression takes place in consumer data protection too.

It seems that any company looking to enter the voice-controlled market will be using CES as a platform to showcase innovation in this ever-expanding space.

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“Up in the Air” Disney, 21st Century Fox, Sky News. A discussion on ethics and the media

Today the CMA gave a provisional ruling on Fox’s proposed takeover of Sky. The ruling said that full control of Sky would give the Murdoch Family Trust excessive “influence over public opinion and the political agenda”. The ruling may well become a damp squib. Walt Disney currently awaits US regulatory approval to buy 21st Century Fox. This deal would allay many of the CMA’s concerns.

A recent debate organised by The Frontline Club on media ethics touched upon some of these topics. It explored Fox’s attempted takeover of Sky News; Rupert Murdoch’s commitment to ethical broadcasting standards; phone hacking; the Leveson Inquiry; and new versus old media. Leading media commentator Roy Greenslade chaired the debate.

The panellists were all mostly sceptical of a Murdoch takeover of Sky and Sky News. They all agreed that while the phone-hacking scandal harmed Rupert Murdoch, it is premature to talk about an irreversible decline. Particularly while his hand-picked successors occupy key media roles.

Graham Johnson, Head of Investigations at Byline, argued that Mr Murdoch shouldn’t be allowed to gain full control of Sky News. A view we now know is shared by the CMA. Despite this, and other recent setbacks such as the hacking scandal, Mr Johnson argued that the Murdoch family remains extremely influential in UK media.

According to Senior Campaigner at Avaaz, Alaphia Zoyab, and Media lawyer Mark Lewis, a Murdoch led takeover of Sky News would harm democracy. They state a strong democracy requires a balanced media. The panel felt that Mr Murdoch’s influence has shifted geographically in the last number of years from Britain to the US. In the US he enjoys unprecedented access to President Trump.

The audience contributed to the discussion with interesting points. For instance, they asked why Disney, or any other company, should gain power over the media landscape by monopolising ownership. Attendees also highlighted the rise of Google and Facebook and their effect on Murdoch owned media companies. The panellists felt it was too early to write off new media. Even though they acknowledged it is a threat. Especially platforms controlled by Rupert Murdoch.

The CMA’s provisional ruling on Fox’s takeover of Sky now moves to a three-week public consultation and then to the new Culture Secretary Matt Hancock, who will make a final decision in May.

Image credit: BBC News