Amazon in 25 years has transformed from a dc into a huge business industry, while Jeff Bezos placed the first list of richest resources and more than 100 billion dollars. Nowadays, it is difficult to tell whether Amazon is a trading company or technology. At one time Jeff Bezos explained what Amazon is today – and so it gave entrepreneurs a good lesson in strategic thinking.
In May 2017 – before Bezos hit the richest list and before his property raised £ 100 billion – the founder of Amazon became involved in the Internet Internet charity gallery.
One of the elements was a discussion with Bezos about an industry strategy. The activist confessed that it is difficult to sort Amazona today – that he is a commercial or technological company – and he asked the company's CEO how we think about Amazon today?
Jeff Bezos' response was extraordinary as the billionaire left the rank of business in the traditional business sense. As he explained, Amazon today provides many goods and services, but all these elements have their common credit.
– We have a very special business approach, and we have been thinking for over 20 years – we explained Bezos. And he added that Amazon has a few simple rules applying to it in every activity. At the same time, it is a great lesson to see how the company's recent capitalism has exceeded one billion dollars.
1. Feedback from the user
As Bezos, the whole company is full of customersthat is, to give him the best service or result, t instead of being – like many others – t an interest in competition, business model, product or technology. Amazon's Chief Executive confirmed there are lots of ways to highlight business – for example, just animation with competition – it also works.
– But, I like meeting the client, I think it's the right module. There is also no serious regeneration of materials, but customer health seems to be healthier for me – he stressed it.
As part of this philosophy Jeff Bezos is never satisfied with Amazon's current success. In 2018, in a letter to shareholders, he explained that although the company is very well assessed in customer satisfaction surveys, "customer needs are constantly growing ":
Bezos then stressed that “people are keen to do something better, and the present day affects“ wow ”, tomorrow growing common.” T transforming technology, meeting the needs of customers more quickly than ever, so companies can't stand to thrive and relax on their lads, as this is t They are stagnation, which means that they can turn quickly to a customer.
2. You must be a pioneer, an engineer
The second principle comes from the first: Amazon wants to be the pioneer, the invention of innovation. According to Bezos, this is consistent with the client's vision.
– Practitioners always want better solutions, but they don't know them yet. Listening to the client is not only listening to him, but is also an exploration of behavior and discovery. You have to be the pioneer, engineer – by Bezos during the garden.
Meanwhile, the businessman is not worried about the money his company spends on research or trying to innovate – but the Amazon CEO thinks it is a good and precious feature. at advanced companies, as he said to the Washington Post.
– The amount of the error should be that the company should grow. If this is not the case, you will not think of anything that could affect your environment. To do that, you need to make great mistakes – it is the verification of the Amazon President.
It is worth noting, however, that the billionaire will not fetch money just like that, but it follows strict rules for investment in innovative projects. As explained by prof. Scott Galloway's book "Wielka Czwórka", most CEOs do not "even take risks" if less than 50% of their ability is successful – no matter how big the result may be. " To change Jeff Bezos said in 1997 that there is 10% of the project. To get 100-hour chances, you should take it every time.
This approach to risk and innovation on the Amazon management has burned over $ 500 million on Telephone Phone – one of its biggest failures – but on the other side it can try and enter it. non-indigenous business sectors and being a director – as it was with a cloud industry, for example. Amazon services.
Two types of industry decisions by Jeff Bezos
But this is not the end Bezos will share decisions for two types, t and it is very important in danger:
- Type 1 is simply non-transferable decisions and needs to be made with care.
- Type 2's decision is like going through doors that open from both sides – if you don't like what you have done, you can return
“With the growth of the organization, it appears that it is more likely to use severe 1 type in most decision making processes, including many different types, which require type 2.” – Bezos wrote his time. “The final impact of the error is slow action, a risk of danger and have the capacity to test sufficiently well and to regularly update innovation. "
How Galloway identifies, with thanks to type 2 decisions. Amazon's projects can quickly – and without embarrassment, abandonment or otherwise invalid projects.and this will release capital for other investments. Conversely, type 2 decisions give you the chance to take risks quickly when there can be big repayment, which follows to the rapid development of valuable innovations – as was the case. , according to principle. Galloway, with Amazon Prime services or AWS clouds listed above.
Bezos emphasized that the treatment of light decisions of Type 1 decisions is more of a mistake. “Every company that has its use will use type 2 decisions in case who need type 1, dying before they can become serious – "confirms the Director. t
3. Focus on long-term tasks and control
A third principle and last principle, described by Bezos in an interview during the gala, is looking at long-term activities. – I want everyone to think without thinking in 2-3 years time, but 5-7 years – he said.
And he explained: t
– If you start thinking like this, you change as you spend your time, as you plan, what you have put into your energy. Many things will improve then. But it is not a natural idea for people so you have to build control – he stressed Bezos during the gallery.
He also said that it was worth the philosophy of "going rich," – even though it is not a good method of selling. So, Bezos must be controlled, you need to learn.
It is worth noting that there is one principle working in the Amazon that influences control – what is called “disagreement and promise”, meaning “disagreement and promise”. “It means that all staff can agree to the view, when the decision is taken that everyone must be involved.
– And that's Amazon – a set of rules, the way we are – the Amazon founder then came to a decision.
Below in English you can show the whole conversation with Bezos in May 2017: