Helping customers address their 'fear of being obsolete'

ATLANTA — Speaking at the Emerson Group’s Industry Day back in October, Amazon Web Services’ Justin Honaman started his presentation with a provocative question: “What are you doing today so that you’re not obsolete tomorrow?”

It’s not a crazy question, he added, given that more than 50% of the companies in the Fortune 500 have disappeared in the last 15 years, and that 95% of the consumer products launched every year fail. And the emergence of new technologies like generative AI means that the pace of change, and the risks of standing still, are greater than ever.

Honaman, who is AWS’ head of worldwide retail and consumer goods go-to-market, explained in a recent interview with MMR that he and his team are helping retailers and consumer packaged goods companies “accelerate their innovation agenda” so that they can harness the power of technology to better serve, and stay relevant to, their customers.

For his work in this critical role, Honaman is being honored as MMR’s Innovator of the Year for 2023.

Some of the technologies that AWS can help its customers implement will be spotlighted at “NRF ’24: Retail’s Big Show,” the National Retail Federation’s conference and exposition, which is being held January 14 to January 16 at the Jacob K. Javits Convention Center in New York. Honaman will be speaking on a panel with Sebastian Barrios Mendoza, senior vice president of technology at Mercado Libre, a Latin American e-commerce company that hosts online marketplaces. The session is titled “Revolution or Evolution: Generative AI’s Role in Transforming Online Retail,” and it promises to explore “the real-world applications, opportunities and challenges of AI, based on Mercado Libre’s practical experiences and experimentation.”

Honaman sees AI as a game changer, noting that it is already disrupting the industry, and will only continue to evolve and improve over time. “We expect it to impact the vast majority of customer experiences over time.”

Generative AI is already having a big impact through applications in such areas as text generation for e-commerce listings, product innovation and ideation through image models, and even natural language coding.

One of the things AWS will be talking about at the NRF show is the introduction of Amazon Q, a service based on generative AI that empowers employees to interact with their company’s various data sources, repositories and back-office systems, allowing them to ask questions and retrieve information efficiently.

The service is seen as a potential boon to business users like marketers, project managers and sales representatives, allowing them to brainstorm problems and generate content, among other actions. The system is also sensitive to the fact that companies don’t necessarily want to share sensitive information and corporate secrets with people at all levels of their organization, so Amazon Q gives different users access only to the information they are authorized to see.

Honaman sees Amazon Q as representing the early stages of a transformative trend within the AI space.

Another technological innovation being rolled out is the launch of Amazon One Enterprise, a service that Amazon has been using in its retail locations to let customers quickly scan their palms to identify themselves in order to enter a store and easily pay for purchases. This technology is being offered to AWS customers and has the potential to extend beyond traditional in-store applications, offering identification services for offices and facilities. Honaman emphasized the convenience and efficiency of this enterprise version, eliminating the need for physical badges by utilizing palm-based identification.

AWS plans to offer demonstrations at the NRF show in four key areas:

• Smart Stores: Highlighting technological innovations within physical retail spaces, addressing the renewed interest in brick-and-mortar stores.

• Digital Commerce: Showcasing advancements in virtual try-on, virtual stores and immersive technologies that enhance the online shopping experience.

• Customer Data: Exploring ways to leverage customer data for improved personalization and consumer engagement across various channels, both online and in-store.

• Operations and Supply Chain: Emphasizing Amazon’s expertise in the supply chain space, providing solutions for inventory visibility, planning and supplier ­collaboration.

In the area of physical store technology, for example, AWS will be shedding light on solutions like its frictionless checkout “just walk out” technology, which lets consumers skip the checkout and literally just take the products they want and go. Amazon One identification technology also has a role to play in this space, and AWS will also be talking about opportunities related to sensor fusion, digital shelf labels, dynamic pricing and the resurgence of RFID technology.

Honaman notes that RFID technology received a lot of attention in the retail industry back in 2011 or so, but it was too expensive at the time to live up to its potential. Now the costs have come down, and it has the potential to change the way retailers think about inventory tracking and visibility.

“If I’m a retailer, I need to know what product I have available, and where it’s located. Then I need to determine the right channel for distribution of that product. So, if a customer is shopping for a particular pullover SKU in size large, is it available? And if so, where is it — in a store or is it in a warehouse? So that’s where you start seeing some of the applications for technologies like RFID.”

Honaman says that Amazon is known for its focus on the supply chain, and adds that it’s an area the company continues to invest in, “not just in the inventory space, but in the planning, allocation, forecasting and innovation space.”

Another key area of focus for retailers and CPG companies involves their data, since AI applications are only as good as the data they have to work with. Cloud-based data storage is, of course, the “bedrock” of AWS’ business, but Honaman emphasizes that AWS’ real strength lies not just in its technology, but in its unique culture, mechanisms and mission centered on the customer. Amazon’s stated mission is to the be earth’s most customer-centric company.

This mission is more than just words, Honaman says, explaining that, for Amazon, being customer-centric means continually asking, “How can we provide the best customer experience possible? The best experience for our customer’s customer.” This question extends to every retailer and major brand, like Heineken, Kellogg’s, Carter’s or Neiman Marcus, all of whom partner with AWS. Honaman emphasizes the importance of this focus in every customer interaction. It’s not just about delivering services; it’s about crafting experiences tailored to the unique needs and aspirations of each customer.

“I’ve worked at Accenture. I’ve worked at Ernst and Young. I’ve worked at Coca-Cola. I’ve worked at Georgia Pacific. I have incredible culture data points, and I know that Amazon’s culture of innovation is unique. That helps us to move fast and also be creative and help our customers cut through the clutter and find ways to improve the experience for their customer.”

One of recent examples of Amazon’s distinctive approach is its use of a PR-FAQ (Press Release/Frequently Asked Questions) as part of its digital innovation process. By crafting a future-focused press release — envisioning and articulating the future success of a project or innovation in a press release format — customers can reverse-engineer the steps needed to achieve that success. We then draft potential internal and external FAQ’s to support the press release as well as visuals to show the customer experience process flow.

Honaman argues that what sets Amazon apart isn’t just its technology or scale — it’s the way it innovates with customers. Customers, when engaged in executive briefings with AWS, spend significant time delving into the nuances of Amazon’s culture and operational philosophy. They’re not just looking for a service provider; they’re seeking a long-term invested partner whose innovative approach can be woven into the fabric of their own businesses. For AWS, it goes beyond just providing services; it’s about encouraging businesses to adopt a similar customer-centric and forward-thinking mindset. This approach not only helps solve present-day challenges but also anticipates tomorrow’s opportunities, enabling businesses to stay ahead of the curve in their respective industries.

Doing so has never been more important.

“This is one of the most exciting times to be in the retail and CPG industries from an innovation perspective,” Honaman says. “Brands are being forced to move quicker and make faster decisions with less perfect information. The only other option is the fear of being left behind or FOBO, the fear of becoming obsolete. And ultimately it is their end customers who will be the winners.”