When in 1995 entrepreneur Jeff Bezos launched Amazon.com from his garage in Seattle (USA), fewer than 1 in 200 people worldwide had internet access and online shopping was just a year old. Today, Bezos’ innovative website has made Amazon.com the world’s largest online retailer, with $60 billion in annual sales – $170 million a day. Online shoppers see Amazon.com as their primary interface—this is the technology innovation. Amazon.com and its accompanying vast information technology capabilities can predict what we want. It catalogues our searches and purchases, and gives us suggestions of what we want.
A brilliant example of the power of technology innovation – right? Only half right. What we don’t see is actually more profound: it’s the power of partnering technology innovation and systems innovation. If you thought Amazon’s secret sauce was simply the technology innovation, think again. In fact, it’s the systems innovation that makes Amazon work.
Systems model: Amazon.comGraphic by MSH