Building Tomorrow’s Reality -The Amazon Way Tomorrow’s Reality-The Amazon Way John Rossman Your Principles -- Make Them Real 1. Customer Obsession “The No. 1determining factor

Building Tomorrow’s Reality

-The Amazon Wayy

John Rossman John Rossman

Your Principles -- Make Them Real

1 . C u s t o m e r O b s e s s i o n

“The No. 1 determining factor on whether a consumer chose to make a purchase online was trust, not selection or price,

but trust. Trust is paramount to digital shoppers”but trust. Trust is paramount to digital shoppers ‐‐ Patrick Gauthier, VP of Amazon Payments

3 . Invent & S impl i fy 3 . Invent & S impl i fy

SIMPLIFY THE WORST CUSTOMER EXPERIENCE

The Beginners Mindset

Ins t rumenta t ion –

A CORE DES IGN REQUIREMENTA CORE DES IGN REQUIREMENT

- Customer experience

- Processes

- All system components

Fi i l d i

R e a l T i m e M e t r i c s F o r :

- Financial drivers

Example: Perfect Order Percentage (POP) Example: Perfect Order Percentage (POP)

M e a s u r e s p e r c e n t a g e o f o r d e r s t h a t a r e p e r f e c t l y a c c e p t e d , p r o c e s s e d a n d

f u l f i l l e d .

Perfect Order Percentage

Perfect Refunds

Perfect CS Contacts

Perfect Info

Provided

Perfect Claims

Perfect Shipment

Perfect Perfect PerfectPerfect Fill Rate

Perfect Delivery

Perfect Items

The Two Pizza Team

Process vs. Bureaucracy

Bureaucracy

ProcessProcess

7 . Think BIG

T h i n k i n g s m a l l i s a s e l f f u l f i l l i n g p r o p h e c y . L e a d e r s c r e a t e a n d

c o m m u n i c a t e a b o l d v i s i o n t h a t i n s p i r e s r e s u l t s . T h e y t h i n k

d i f f e r e n t l y a n d l o o k a r o u n d c o r n e r s f o r w a y s t o s e r v e c u s t o m e r s .

1 3 . HAVE BACKBONE ;

D I SAGREE AND COMMITDISAGREE AND COMMIT

A

F O R C I N G F U N C T I O NF O R C I N G F U N C T I O N

I S A N A P P R O A C H F O R

S Y S T E M A T I C A L L YS Y S T E M A T I C A L L Y

E N F O R C I N G A S T R A T E G Y

No PowerPointNo PowerPoint

Start Projects with a Future Press Release Start Projects with a Future Press Release

14 . De l iver Resu l t s

We Deliver!

Manage Your Dependencies

• S h i f t “ a s s ump t i o n s ” t o “ f a c t s ”

• Mana g e v i a S LA s

• D i v e D e e p o n C r i t i c a l P a t h

• Vo i c e o f Cu s t ome r

• I n s t i l l Own e r s h i p

Questions to Innovate –

The Amazon Way10

The Amazon Way

1 .Can t h e n e ed ( s t e p , c on t a c t , e t c . ) b e e l im in a t ed ?3 . Can t h e p r o v i s i on ing o r s c a l i n g b e on d emand ?4 . Can I mea su r e t h e p r o c e s s ( - - on a

l b )

5 .Can t h e s e r v i c e b e “when I wan t ” and r e a l - t ime ?6 .Wha t i s t h e “wo r s t c u s t ome r e x p e r i e n c e ” ?7 . Wha t a r e t h e du r ab l e cu s t ome r v a l u e s ?8 .How wou l d a p l a t f o rm s t r a t e g y l e v e r a g e my a s s e t s ?9 .Wha t i s t h e s y s t ems dynam i c mode l o f my e co s y s t em , 1 0 .Wha t a r e t h e t h i ng s t h a t a r e “h a rd ” , t h a t s hou l d b e

l

2 . Can t h e e xp e r i en c e b e a c r o s s a l ong v a l u e ch a i n ?

r e a l - t ime b a s i s ) ?and how do we c r e a t e a v i r t uou s c y c l e w i t h p a r t n e r s ?“ s imp l e ” ?

Questions to Improve & Re-Invent101 . C a n t h e n e e d ( s t e p , c o n t a c t , e t c . ) b e e l i m i n a t e d ?

2 . C a n t h e e x p e r i e n c e b e i n t e g r a t e d ?

3 . C a n t h e p r o v i s i o n i n g o r s e r v i c e b e a u t o m a t e d ?

4 C a n I m e a s u r e t h e p r o c e s s ( o n a d a i l y b a s i s ) ?4 . C a n I m e a s u r e t h e p r o c e s s ( o n a d a i l y b a s i s ) ?

5 . C a n t h e s e r v i c e b e “ w h e n I w a n t ” ?

6 . W h a t i s t h e “ w o r s t c u s t o m e r e x p e r i e n c e ” ?

7 . H o w c o u l d “ t h e i n t e r n e t o f t h i n g s ” c h a n g e t h e v a l u e p r o p o s i t i o n ?

8 . I s t h e s e r v i c e o r p r o c e s s g o o d e n o u g h t o h a v e e x t e r n a l c u s t o m e r s ?

9 . I s c u s t o m e r e x p e r i e n c e “ o m n i - c h a n n e l ” ?

1 0 . H o w w o u l d a d i s r u p t o r a c t ?

THE ECONOMIC VALUE ADD FROM IOT

Gartner

PREDICTIONS FOR 2020

Gartner

• 26 billion endpoints

• $1.9 trillion in economic value-add

Cisco


• $14.4 trillion of value

IDC


• $8.9 trillion market

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

SENSORS Optical Proximity

Motion

lTemperature

Tilt

Humidity Magnetic

SounddLevels / Leaks

Chemical / Gas Flow Pressure

IMPROVING CUSTOMER EXPERIENCE WITH IOT--THE AMAZON WAY--THE AMAZON WAY

Shopping made simple.Friction FreeFriction Free.

New Interfaces.

IMPROVING CUSTOMER EXPERIENCE WITH IOT

Non Amazon ExampleNon Amazon Example

Assisting Usage Auto-Replenishment

Coordinated Delivery

IMPROVING OPERATIONS WITH IOT--THE AMAZON WAY

Not automated work, but human-machine teams

BUILD NEW BUSINESS MODELS WITH IOT

ROLLS ROYCE – ENGINES AS-A-SERVICE

“The death knell for anyThe death knell for any enterprise is to glorify the past – no matter how good it was.”g

THANK YOU!THANK YOU!E m a i l :

j o h n e r o s s m a n @ g m a i l . c o mj o h n e r o s s m a n @ g m a i l . c o m

B l o g :

w w w o n a m z n c o mw w w . o n - a m z n . c o m

( d o w n l o a d t h e p o s t e r h e r e ! )

Building Tomorrow’s Reality -The Amazon Way Tomorrow’s Reality-The Amazon Way John Rossman Your Principles -- Make Them Real 1. Customer Obsession “The No. 1determining factor

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