Amazon destroyed profit expectations for its first quarter, with profits more than doubling from last year. The profit boom is thanks to increasing online sales (sales were up 43% in the quarter to $51 billion), advertising and Amazon Web Services (which saw a 49% rise in sales from last year). Amazon announced last week that the annual membership fee for Prime members will increase by $20 to $119 a year, which also posted an increase in revenue for the quarter of 60%. According to eMarketer, Amazon accounts for close to 43 cents of every dollar spent online. 

Amazon's subscription revenue was also up for the quarter by 60% at $3.1 billion. The rise in the annual membership fee is expected to add a windfall this business unit's revenue. Chief Financial Officer Brian Olsavsky said "We do feel it's still the best deal in retail."  Prime customers are eligible to receive free two day shipping on selective items, as well as access Amazon's music and video streaming services. Items eligible for two day shipping have grown by 5x since the previous price increase to the prime membership service four years ago. 


There was good news across almost all of Amazon's business units in this first quarter of 2018. AWS, Amazon Web Services, saw an expansion in profit margin and posted sales of $5.44 billion in the first quarter. In revenue, it remains the largest company in sector. Due to the acquisition of Whole Foods Market, Amazon's employee global headcount is 60% higher than it was a year earlier with 563,000 part-time and full-time employees. 


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The European Commission wants investment in artificial intelligence from private and public sources across Europe to total 20 billion euros by 2020 and has promised to increase its own investment over that time period by 70% to 1.5 billion euros. Artificial intelligence promises to revolutionize almost all sectors and the EU is seeking to ensure it retains competitiveness with Asia and The United States who both invested at least 3x more than Europe did last year. 

The Vice President of the European Union, Andrus Ansip, said on Wednesday that "Just as the steam engine and electricity did in the past, AI is transforming our world. Today, we are giving a boost to researchers so that they can develop the next generation of AI technologies and applications, and to companies, so that they can embrace and incorporate them." 

France and Britain have also recently made public their intentions to make investments in artificial intelligence a priority. Emmanuel Macron, President of France, promised last month to increase  the allocation of public money towards AI investment to 1.5 billion euros. Last year, private investments in AI across Europe totaled 2.4-3.2 billion euros, drastically lower than America's 18 billion euros and Asia's 10 billion euros. The bloc will have to continue to ramp up investment in the revolutionary technology or likely face a brain drain, where their top industry professionals are attracted elsewhere. 


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Analysis conducted on 40 years of innovation research contained in over 1,070 articles revealed that the two topics most linked among the published papers are disruptive and radical innovation. Disruptive and radical innovation describe very different processes and require entirely different responses from incumbents. Mistaking the two can cause organizations to focus on the wrong initiatives and may result in an inability to cope with the changes they face.

Research enables us to break down the source of disruptive innovation to being a combination between business model innovation and technology. This can be caused by new entrants exploiting over-looked market segments or their creation of a new market that was previously untapped. Research demonstrates that disruptive innovation often commences with new entrants using variations on current industry business models to gain a foothold in the low end of the market. Disruptive innovation also commonly stems from companies with inferior resources to industry incumbents.

Radical innovation on the other hand is caused by entirely new products or ideas, where a business successfully commercializes a break through idea. Radical innovation is heavily reliant on the organizational capabilities and human capital that enable organizations to create products that cause long-term impact. 

To appropriately cope with either disruptive or radical innovations, its is critical for organizations to first understand which type of innovation they are facing. Responses to radical innovation must focus on organizational and dynamic capabilities and should also include initiatives that empower your organization's human capital. Responding to disruptive innovation must focus on adjusting organizational strategies to meet changing customer needs. One thing is for certain, the role of digital in both in undeniable. 



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MIT researchers unveiled AlterEgo, a head mounted wearable that is capable of reading the "words in your head." After being calibrated, the device was able to correctly read commands with an accuracy of 92 %. The device measures subvocalization through neuromuscular signals, and sends them to a computer that runs them through neural networks to turn those signals into words. Its potential future uses include enabling voice and hands free communicating with computers, mobile devices, and AI assistants. 

AlterEgo also has bone conduction capabilities which allows the device to deliver audio without external noise ensuring a fully silent system (input and output). The system was created with the intention of building an "intelligence augmentation device" that would meld human and machine more closely allowing technology to feel like a more personal extension of our cognition.

The system has been used to ask for the time, navigate a Roku and report chess moves made by an opponent in order to get the correct counter move from a computer. 


Click here to watch a video about the device and  here to read the full article. ​

The mobile phone has become a productivity boosting tool to all in idle moments. According to Google, 60% of smartphone users say their phones help them feel more "confident and prepared" and 79% are more likely to revisit a mobile site if it's easy to use. Mobile phones provide sparks of inspiration, help solve urgent needs, enable moments of micro-productivity, assist in planning ahead, offer in-store assistance at all times, and give users a feeling of accomplishment.  Is your brand effectively catering your mobile experiences to fit your customer's needs? 

According to Google, 54% of smartphone users report that their mobiles reduce stress/anxiety in their lives. Google researchers identified five "mind states" that cause users to reach out to their mobile phones:

• A Spark: A trigger causes something to pop into people's head that results in them searching for information on that something. This triggered topic can be anything from services and products to experiences. 
• Urgent Need: The individual turns to their phones to find directions, food, clothing etc... quickly. 
• In-Store Assistance: Shoppers use their phones inside a store to find coupons, prices, reviews or general information on the products they are looking at. Although many businesses worry about showrooming (shoppers using their phones to look for better prices while in a store) - focus instead on finding a way to leverage the opportunities mobiles provide your customers.
• Micro-Productivity: People can now use their mobile phones to take care of tasks during times where they used to be idle (in a taxi, or waiting room).
• Planning Ahead: The mobile phone is enabling people to plan everything and anything in advance  (experiences, meals, hotels, car rentals). 

Find the mind states or micro moments that send your customer reaching for their phones and match your mobile experience to them. Doing so will help your company become more receptive to your customers and their needs. 


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