As regard to customer data as well as data from transactions, the Amazon Go model is premised on hundreds of pictures being taken of every person entering and exiting the store. Amazon then stores these pictures for long enough to identify the products being purchased, before the images are deleted. Credit card information is captured at the point of registration for the app that is required to use the Amazon Go stores, and then credit and debit card information is captured when purchases are made. Further receipts are issued after purchases are made, and the system also records how long an individual has been shopping for (this is printed on the receipt). With a need to capture and store such large volumes of information that is both sensitive and personal to people, it is not surprising that many are concerned for the security of the information and the potential for the information to fall into the wrong hands. Amazon Go stores are in their infancy, and have not had to deal with any negative publicity surrounding data breaches, or cyber security issues. Yet, these very issues are things that could damage the operation of the whole Amazon Go approach. It will only take one major cyber security breach for confidence in the whole system to be shaken, or for the system to attract the attention of regulators or even legislators and policymakers concerned for the future protection of the data that is gathered and held for the purposes of cashless shopping. These issues will have to be managed very carefully, and proactively if Amazon Go growth forecasts are to be realized. There has also been considerable controversy surrounding the cashless store, owing to the concern that they create problems for a group of people known as the "unbanked". These are people who don't have bank accounts and as such they don't meet the prerequisites for having credit and debit cards for example, an address or an internet connection. Since you need a smartphone, an app and a credit or debit card before you can use the Amazon Go shop, one of the most central issues is that the cashless store excludes people who don't use technology. Disadvantaged people could find it hard to access these facilities, because often you need a good credit history and an address before you can get a bank account, a credit or debit card, or even a smartphone that can support apps. These seemingly simple requirements exclude people on low incomes, the homeless and the disadvantaged. These people are being referred to as the "unbanked" - a reference to their inability to get credit facilities, open bank accounts or get mobile phones or mobile phone contracts. Some estimates place the number of "unbanked" people in the USA alone at 14 million — a figure set to rise. Representatives of the "unbanked" have been approaching legislators and policymakers in an effort to gain protection for the "unbanked" population. The result have been various legislative bills, some of which have led to cashless stores being banned in certain cities and localities. In the USA New Jersey and Philadelphia are considering whether to place outright bans on cashless stores, in a move that could force Amazon Go to provide human cash tellers for people who prefer to use cash. Some have suggested that prepaid kiosks may solve the problem, since these are in keeping with the cashless ethos, however they allow unbanked people to exchange cash for items that will allow them to patticipate in the cashless shopping experience. As such, the unbanked population continues to represent a major problem that may impede the ambitious 4 growth forecasts of the Amazon Go business model, and it is fair to say the mainstay of the problems have yet to be addressed in full at operational level within Amazon Go. These facts about Amazon Go help us understand it a lot better. But as with any proposition that aims to disrupt an industry, it takes time to understand potential problems lurking in the operational application of ideas. Amazon Go is no different, and while security, third party data storage and ethical problems related to the "unbanked" population are indeed grave concerns and represent challenges that will necessitate changes to the business model, there is no doubt a place for Amazon Go at the table as disruptors of the supermarket industry. The disruption, may however unfold more slowly than planned as problems are identified and systems adapted accordingly. 1. Elaborate on at least FIVE (5) ethical or security issues that Amazon Go may face in its business operation.
As regard to customer data as well as data from transactions, the Amazon Go model is premised on hundreds of pictures being taken of every person entering and exiting the store. Amazon then stores these pictures for long enough to identify the products being purchased, before the images are deleted. Credit card information is captured at the point of registration for the app that is required to use the Amazon Go stores, and then credit and debit card information is captured when purchases are made. Further receipts are issued after purchases are made, and the system also records how long an individual has been shopping for (this is printed on the receipt). With a need to capture and store such large volumes of information that is both sensitive and personal to people, it is not surprising that many are concerned for the security of the information and the potential for the information to fall into the wrong hands.
Amazon Go stores are in their infancy, and have not had to deal with any negative publicity surrounding data breaches, or cyber security issues. Yet, these very issues are things that could damage the operation of the whole Amazon Go approach. It will only take one major cyber security breach for confidence in the whole system to be shaken, or for the system to attract the attention of regulators or even legislators and policymakers concerned for the future protection of the data that is gathered and held for the purposes of cashless shopping. These issues will have to be managed very carefully, and proactively if Amazon Go growth forecasts are to be realized.
There has also been considerable controversy surrounding the cashless store, owing to the concern that they create problems for a group of people known as the "unbanked". These are people who don't have bank accounts and as such they don't meet the prerequisites for having credit and debit cards for example, an address or an internet connection. Since you need a smartphone, an app and a credit or debit card before you can use the Amazon Go shop, one of the most central issues is that the cashless store excludes people who don't use technology.
Disadvantaged people could find it hard to access these facilities, because often you need a good credit history and an address before you can get a bank account, a credit or debit card, or even a smartphone that can support apps. These seemingly simple requirements exclude people on low incomes, the homeless and the disadvantaged. These people are being referred to as the "unbanked" - a reference to their inability to get credit facilities, open bank accounts or get mobile phones or mobile phone contracts. Some estimates place the number of "unbanked" people in the USA alone at 14 million — a figure set to rise.
Representatives of the "unbanked" have been approaching legislators and policymakers in an effort to gain protection for the "unbanked" population. The result have been various legislative bills, some of which have led to cashless stores being banned in certain cities and localities. In the USA New Jersey and Philadelphia are considering whether to place outright bans on cashless stores, in a move that could force Amazon Go to provide human cash tellers for people who prefer to use cash. Some have suggested that prepaid kiosks may solve the problem, since these are in keeping with the cashless ethos, however they allow unbanked people to exchange cash for items that will allow them to patticipate in the cashless shopping experience. As such, the unbanked population continues to represent a major problem that may impede the ambitious
4
growth forecasts of the Amazon Go business model, and it is fair to say the mainstay of the problems have yet to be addressed in full at operational level within Amazon Go.
These facts about Amazon Go help us understand it a lot better. But as with any proposition that aims to disrupt an industry, it takes time to understand potential problems lurking in the operational application of ideas. Amazon Go is no different, and while security, third party data storage and ethical problems related to the "unbanked" population are indeed grave concerns and represent challenges that will necessitate changes to the business model, there is no doubt a place for Amazon Go at the table as disruptors of the supermarket industry. The disruption, may however unfold more slowly than planned as problems are identified and systems adapted accordingly.
1. Elaborate on at least FIVE (5) ethical or security issues that Amazon Go may face in its business operation.
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