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    1. The document discusses lessons that can be learned from Amazon's approach to digital disruption and their retail strategy. It focuses on a talk given by John Rossman, a former Amazon executive and expert in digital disruption. 2. Amazon has had a huge impact on the retail industry, capturing a growing share of the apparel, accessories, and online grocery markets. They also contribute a large portion to overall ecommerce growth. 3. Rossman discusses Amazon's focus on obsessing over the customer experience, inventing to simplify processes for customers, using instrumentation to measure everything, adopting a two pizza team approach, having backbone to disagree and commit, and ultimately delivering results for customers.

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    1. The document discusses lessons that can be learned from Amazon's approach to digital disruption and their retail strategy. It focuses on a talk given by John Rossman, a former Amazon executive and expert in digital disruption. 2. Amazon has had a huge impact on the retail industry, capturing a growing share of the apparel, accessories, and online grocery markets. They also contribute a large portion to overall ecommerce growth. 3. Rossman discusses Amazon's focus on obsessing over the customer experience, inventing to simplify processes for customers, using instrumentation to measure everything, adopting a two pizza team approach, having backbone to disagree and commit, and ultimately delivering results for customers.

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    32 views21 pages

    PHP Haf 2 Su

    Uploaded by

    NATSOInc
    1. The document discusses lessons that can be learned from Amazon's approach to digital disruption and their retail strategy. It focuses on a talk given by John Rossman, a former Amazon executive and expert in digital disruption. 2. Amazon has had a huge impact on the retail industry, capturing a growing share of the apparel, accessories, and online grocery markets. They also contribute a large portion to overall ecommerce growth. 3. Rossman discusses Amazon's focus on obsessing over the customer experience, inventing to simplify processes for customers, using instrumentation to measure everything, adopting a two pizza team approach, having backbone to disagree and commit, and ultimately delivering results for customers.

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    of 21

    1/20/17

    Crea%ng Retail Disrup%on


    The Amazon Way
    Featuring:
    John Rossman, Former Amazon Execu9ve,
    Author and Expert on Digital Disrup9on

    Lessons from The Amazon Way

    John Rossman

    1/20/17

    Amazons Impact on Retail


    AMAZON'S APPAREL & ACCESSORIES GMV estimated at

    and market share rising to

    $16B 14%

    50%

    Of US
    households
    will be Prime
    members by
    2020

    in 2020

    1.1% of US food &

    Amazon controls
    beverage

    Amazon is #1 in online grocery at


    market share

    22%

    Amazon US ecommerce

    28%

    sales growth =
    US retail sales growth =

    1.9%

    $0.51

    $1.00

    of every
    Of 2015 Ecommerce Growth is attributed to
    Amazon

    The Amazon Factor

    1/20/17

    The Amazon Factor

    The Amazon Factor

    1/20/17

    The Amazon Factor

    The Amazon Factor

    1/20/17

    The Amazon Factor

    The Amazon Factor

    1/20/17

    The Amazon Factor

    The Amazon Factor

    1/20/17

    Your Principles -- Make Them Real

    1/20/17

    Customer Obsession

    Improving Customer Experience with IoT


    The Amazon Way

    Shopping made simple.

    New Interfaces.

    Friction Free.

    Coordinated Delivery

    1/20/17

    Invent & Si mp lify

    Inventors and Explorers

    1/20/17

    Simplify the Worst Customer Experience

    Process vs. Bureaucracy

    10

    1/20/17

    Instrumentation

    Real Time Metrics For:

    - Customer experience
    - Processes
    - All system components
    - Financial drivers

    Example: Perfect Order Percentage (POP)


    Measures percentage of orders that are perfectly
    accepted, processed and fulfilled.

    Perfect Order
    Percentage
    Perfect
    Shipment
    Perfect Fill
    Rate

    Perfect
    Delivery

    Perfect
    Claims

    Perfect
    Info
    Provided

    Perfect CS
    Contacts

    Perfect
    Refunds

    Perfect
    Items

    11

    1/20/17

    The Two Pizza Team

    Are You a Platform?

    When a platform is self-service, even improbable ideas get tried,


    because theres no expert gatekeeper ready to say That will never work!
    Guess what? Many of those improbable ideas do work.
    -Jeff Bezos, 2011 Letter to Shareholders

    12

    1/20/17

    Have Backbone; Disagree and Commit

    A Forcing Function Is an
    Approach to Systematically
    Enforce a Strategy

    13

    1/20/17

    No PowerPoint

    Start Projects with a Future Press Release

    14

    1/20/17

    Amazon Top Ranked Supply Chain Company


    Amazon is named as #1 Rank in Gartners 2015
    Supply Chain ranking
    The lessons to learn from Amazon are more about
    strategy and philosophy, then about specific
    capabilities

    No Critical Dependencies

    15

    1/20/17

    There is No No

    Deliver Results

    DE WE
    LIV
    We
    ER
    !
    Deliver!

    16

    1/20/17

    The Economic Value Add From IoT


    PREDICTIONS FOR 2020
    Gartner
    26 billion endpoints
    $1.9 trillion in economic valueadd
    Cisco
    50 billion endpoints
    $14.4 trillion of value
    IDC
    212 billion endpoints
    $8.9 trillion market

    ENDPOINT = CONNECTED THING (TVS, SMART PHONES, SENSORS, CARS, ETC.)

    The Amazon Way On IoT

    John, this is a really excellent book.


    And a very important book. It evokes
    both business thought and technical
    thought, which is rare
    - Larry Hughes, former Amazon cyber
    security leader

    17

    1/20/17

    How Can The Internet of Things Impact Business?

    Improving Customer Experience with IoT


    The Amazon Way

    https://www.youtube.com/watch?v=NrmMk1Myrxc

    18

    1/20/17

    Improving Operations with IoT


    --The Amazon Way

    Not automated work, but human-machine teams

    Build New Business Models with IoT

    19

    1/20/17

    Rolls Royce Engines As-a-Service

    Why the Urgency?


    Seventy percent of Fortune 1000 companies
    over the past decade are new

    Source: Jim Collins and Jerry Porras, Built to Last, 2011 updated by Brian Solis.

    20

    1/20/17

    The death knell for any enterprise is to glorify


    the past no matter how good it was.

    Jeff Bezo
    s

    THANK YOU!
    Email:
    johnerossman@gmail.com
    Tw i t t e r :
    @johnerossman
    Blog:
    w w w . t h e - a m a z o n - w a y. c o m
    (download the poster here!)

    21

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