Thank You For Disrupting E-Book

Jean-Marie Dru

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch
• Veröffentlichungsjahr: 2019

Seitenzahl: 303

Beschreibung

The business ideas and innovation philosophies of the world's great entrepreneurs--for anyone to implement in any business Steve Jobs. Jeff Bezos. Larry Page. Sergey Brin. Zhang Ruimin. Marc Benioff. Millions of words have been written about the great entrepreneurs of the world. This book is not about describing their achievements. Nor is it about their charisma, personal trials, or their place in popular culture. We have all heard or read about them already. This book is about the entrepreneur, the thinker. It is about the grand ideas, the disruptive thoughts, the innovative underpinnings and business philosophies that gave rise to their achievements. Thank You For Disrupting: The Disruptive Business Philosophies of The World's Great Entrepreneurs examines 20 of the most significant business leaders of our time. Author Jean-Marie Dru, himself a disruptor who coined the term decades ago, explains not only the impact these leaders have had on their own companies, but also their immense influence on the business world as a whole. Each chapter is replete with in-depth analyses, insightful comments, and personal observations from the author, including discussions covering the experimentation and platforms of Jeff Bezos, to the recruitment policies and core values of Sergey Brin and Larry Page, to the complete CSR and company activism of Paul Polman, and many more. Illustrating how the vision of a disruptive innovator can reach far beyond his or her company, this engaging book encourages and inspires readers to become disruptors in in their own businesses. The Disruptive Business Philosophies of The World's Great Entrepreneurs is a must-read for anyone interested in the why and how behind the most significant and influential business achievements of our time.

Leseprobe

THANK YOU FOR DISRUPTING

THE DISRUPTIVE BUSINESS PHILOSOPHIES OF THE WORLD′S GREAT ENTREPRENEURS

Jean-Marie DRU

Cover design: Zakka Design Agency, Paris

Copyright © 2019 by Jean-Marie Dru. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data

Names: Dru, Jean-Marie, author.

Title: Thank you for disrupting : the disruptive business philosophies of the

   world's great entrepreneurs / Jean-Marie Dru.

Description: First Edition. | Hoboken : Wiley, 2019. | Includes index. |

   Identifiers: LCCN 2019011645 (print) | LCCN 2019019826 (ebook) | ISBN

   9781119575634 (Adobe PDF) | ISBN 9781119575665 (ePub) | ISBN 9781119575658

   (hardback)

Subjects: LCSH: Entrepreneurship—Case studies. | Businesspeople—Case

   studies. | Strategic planning—Case studies. | Corporate culture—Case

   studies. | Creative ability in business—Case studies. | BISAC: BUSINESS &

   ECONOMICS / Strategic Planning.

Classification: LCC HC29 (ebook) | LCC HC29 .D78 2019 (print) | DDC

   658.001—dc23

LC record available at https://lccn.loc.gov/2019011645

To Marie-Virginie

To my children

To my grandchildren

CONTENTS

Cover

Introduction: Thank You for Disrupting

Part One: Disruptive Company Leadership

Chapter 1. Steve Jobs: On User Experience, Design and Timelessness

All in One

The Art of Reduction

Life Lessons

Notes

Chapter 2. Jeff Bezos: On Experimentation and Platforms

Experimentation as a Strategy

The Platform Economy

Notes

Chapter 3. Herb Kelleher: On Human Resources and Operational Quality

Employees First

The Art Is in the Implementation

Notes

Chapter 4. Bernard Arnault: On the Management of Creativity and Brand Building

Art and Commerce

The Luxury Industry as Model

Notes

Chapter 5. Zhang Ruimin: On Decentralization and Customer-Centricity

Everyone Is a CEO

Zero Distance with the Customer

Notes

Chapter 6. Jack Ma: On Chinese Business Models and Disruptive Management

A Contrarian Model

Embracing Change through Paradox

U.S. In, China Out

Notes

Part Two: Disruptive Business Thinking

Chapter 7. Jim Collins: On the Search for Excellence and the Management of Alternatives

Good to Great

The Era of the

And

Notes

Chapter 8. Clayton Christensen: On Disruptive Innovation

Bottom-up Disruption

The Disruption Controversy

Notes

Chapter 9. Jedidiah Yueh: On the Behaviors of Companies of the New Economy

Lessons from an Entrepreneur

Category of One

Notes

Part Three: Disruptive Corporate Culture

Chapter 10. Sergey Brin and Larry Page: On Recruitment Policies and Core Values

HR as a Science

A Fertile Environment

Notes

Chapter 11. Patty Mccord: On Employee Empowerment and Talent Management

Disruptive HR Practices

A Contrasting Culture

Notes

Chapter 12. The Disruption Company: On Corporate Culture Components and Disruption

Vision, Values, Practices

People, Story, Place

The Disruption Methodology

Notes

Part Four: Disruptive Brand Building

Chapter 13. Marc Pritchard: On Transparency, Accountability, and Creativity

Leading Change in the Marketing World

Making Brands Serve a Higher Purpose

Notes

Chapter 14. Brian Chesky: On Brand Building and Disruptive Data

Shaping an Iconic Brand

The Single Disruptive Data

Notes

Chapter 15. Lee Clow: On the Power of Great Advertising

Big Brand Ideas

Creativity, the Advertiser’s Best Bet

Notes

Chapter 16. Oprah Winfrey: On Building a One-Person Brand

The Ultimate Celebrity Brand

The One-Person Businesses

Notes

Chapter 17. Arianna Huffington: On Digital Journalism and Women’s Empowerment

The Consecration of Online Journalism

Women in Business

Notes

Part Five: Disruptive Social Purpose

Chapter 18. Paul Polman: On Complete CSR and Corporate Activism

A Force for Good

CEO Activism

Notes

Chapter 19. Emmanuel Faber: On Social Purpose and the Bottom of the Pyramid

Side Roads

The Bottom of the Pyramid

Notes

Chapter 20. Marc Benioff and Suzanne Dibianca: On Scaling Up Philanthropy

A Native Philanthropist

Pledge 1%

Notes

Conclusion

Acknowledgments

Index

End User License Agreement

Guide

Cover

Table of Contents

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Introduction

Thank You for Disrupting

Thank You for Disrupting is about the entrepreneur as thinker. It’s about how the most disruptive business builders in the world think and do things.

This book is not intended to relate their great achievements. Most of us have already heard or read about that. Rather, the intention here is to look behind these achievements to understand the big ideas and disruptive thinking that brought them into existence.

By fusing hardware and software 40 years ago, Steve Jobs was the first corporate leader who embodied, in an unprecedented way, the concept of “design thinking,” which is today’s dominant strategic framework. By launching the 1–1–1 philanthropic model,1 Salesforce’s co-founder Marc Benioff has become one of the most influential and outspoken voices on social issues, and has emerged as a corporate social responsibility ringleader. By creating, within the Haier company, over 2,000 independent teams2 that have the liberty to talk directly with private equity firms, Zhang Ruimin has taken decentralization to an unimaginable level. By systematically disrupting existing HR policies, Patty McCord has forged Netflix’s corporate culture, which is not only unique, but also emblematic of businesses born into the new economy. By rendering luxury accessible, while at the same time increasing the prestige of the LVMH brands, Bernard Arnault has achieved a seemingly impossible task. He excels at managing creativity. By inventing a new business model for online journalism, Arianna Huffington has disrupted the conventional news delivery and made digital news reporting respectable. By being one of the first entrepreneurs in America to make social purpose and business work together, Sarah Breedlove was a pioneer in peer-to-peer marketing, community marketing, and cause marketing.

It’s impossible to be exhaustive when devoting only a dozen or so pages to such avant-garde figures. I take a historical look at major disrupters from across the globe in recent decades. The reality is, the majority of them are men; but, fortunately, the business world is changing. I have no doubt that, in the very near future, more women will come forth as world-renowned disrupters.

Each domain of activity prompts fresh currents of thought. New concepts appear; paradigms emerge. Bodies of knowledge accumulate, collections of ever-evolving experience build up over time and are made available. It’s true in science, where discoveries are made through challenging the mainstream thinking. It’s true in art, where each period has seen new schools of thought arise, breaking with what former decades had celebrated. It’s also true in political or social sciences, or in literature. In this way milestones are established, new directions given, tipping points created.

The same applies to the world of business. Business is an open forum where ideas circulate, where companies can continually inspire each other, and where people spread inspiration by moving from one company to another.

The 25 great entrepreneurs I talk about in this book have visions that extend beyond the frontiers of their business. In addition to the impact they have had on their own companies, they have also profoundly influenced the business world in general.

This is a celebration of truly disruptive spirits. To them, I say: Thank you for disrupting. Thank you for advancing our collective thought process and making the world of business better and more interesting every day.

Notes

1

Upbin, Bruce (September 18, 2012), “Talking Philanthropy with Marc Benioff.”

Forbes

.

2

Conversation with Zhang Ruimin by Knowledge@Wharton. “For Haier’s Zhang Ruimin, success means creating the future.” Retrieved from knowledge.wharton.upenn.edu, April 20, 2018.

PART ONEDISRUPTIVE COMPANY LEADERSHIP

Some of the leaders we discuss here come from the old business world, while others are part of the new landscape. All of them have left a mark that stretches beyond their own industries.

My goal is to recognize really disruptive business philosophies. They come from Steve Jobs, Jeff Bezos, Herb Kelleher, Bernard Arnault, Zhang Ruimin, and Jack Ma. All of them have refused to conform to rigid ways of thinking and acting. They have shown themselves to be free spirits, not limited by conventional thinking and not tolerant of any barrier to their goals. They all have the intrinsic qualities of great leaders: clear vision, technical competence, and the capacity to make quick decisions.

Steve Jobs laid the milestones of what will remain the most disruptive business model of our time. He built an innovative ecosystem and shaped what we have come to know as the New Economy. For many people, Apple's boss embodies the most brilliant and inventive spirit that the world of business has known. It would have been simply impossible to start with someone else.

CHAPTER 1STEVE JOBS

ON USER EXPERIENCE, DESIGN AND TIMELESSNESS

When Steve Jobs passed away, Bill Gates said that Jobs’s influence would be felt for “many generations to come.”1 Tim Cook, who succeeded Jobs at Apple, went even further, speaking of “thousands of years from now.”2

History will remember Jobs for the seismic impact he had on the world of computers, especially in making them popular and accessible to all. What is also extraordinary is the way in which he was able to pivot his company several times. As Apple changed, so did its primary competitor: IBM, Microsoft, Samsung, in that order. Jobs’s influence will mark the world forever, and his thinking will inspire hundreds of innovative business models.

In 1993, a book was published about Chiat\Day, the leading Californian agency that later became part of the TBWA network. It was entitled Inventing Desire.3 That’s what Steve Jobs did. He invented tomorrow’s desires.

All in One

When the iPod (and later the iPhone) came out, it was a real surprise not to find any instructions inside the package. Steve Jobs believed that users of his products should be able to use them instinctively. This might seem easy, but determining the most intuitive path requires a colossal amount of work. Jobs introduced what would be later called a “seamless user experience,” known today as a “frictionless customer experience.” Fluidity is the new norm.

At the launch of the Mac in 1984, Apple created an ad that referred to George Orwell’s novel 1984. Using the line “you’ll see why 1984 won’t be like 1984 . . .”4 Apple introduced the concept that machines should adapt to humans, not the other way around. Today, the algorithm should adapt to the user. Technology should not be constraining, ergonomics must permit fluidity of interactions. This prefigures a future when we will be truly augmented, where our intimacy with a machine will be total. The result: a world without friction between man and machine.

From stores to products, from iPods to Macs, from iTunes downloads to iPad apps, Apple masters better than anyone what physicists call the science of reciprocal actions. Apple was the first to create an ecosystem where devices interact automatically with one another, where products work together “naturally.” As we probably all remember, it started with the iPod. The iPod’s initial pitch was very simple: “1,000 songs in your pocket,” to quote the slogan on the billboards TBWA\Chiat\Day created for Apple. The offer was the combination of iTunes, the iTunes Store, and the iPod. Photos, games, and apps came later, as users progressively adopted the platform.

Many companies around the world are now looking to create their own proprietary ecosystems, business models with elaborate architectures. Those in China are no exception. For example, hundreds of millions of Chinese have WeChat and Alipay. They use these all-in-one apps constantly to contact friends, pay bills, order taxis, reserve hotels and plane tickets, catch up on the news, or schedule appointments. In a Fast Company article about multifaceted “super apps,” Albert Liu, EVP of Corporate Development at Veriphone declared, “The advantage of super lifestyle apps like Alipay or WeChat is they’ve connected incrementally more data than an app that’s just focused on a single area. . . . There is no comparison with anything in the U.S.”5 WeChat is used on average more than 10 times a day for other things than chatting. It’s been described as the “one app to rule them all.” This all-in-one thinking is not so far from the mindset we inherited from Steve Jobs. And this approach is now driving the smartphone explosion in China.

Back in 1983, at the International Design Conference in Aspen, Colorado, Steve Jobs had already identified the huge potential of applications. A grand visionary, he predicted a future when each user would have “an incredibly great computer in a book that you can carry around with you and learn how to use in 20 minutes.”6 In 2007, the launch of the iPhone made all previous applications permanently outdated. Apps were presented for the first time as simple icons, accessible through a user-friendly tactile interface. In doing so, Steve Jobs created applications that were attractive and easy to use. Before then, no one could have thought that millions of apps would see the light of day in the next decade. Without the flair of Steve Jobs, and his drive to impose his vision of the future at all costs, Uber and Airbnb would probably never have existed. At least, they wouldn’t exist in their current forms.

It was also in the early eighties that Steve Jobs pursued an idea that a number of his competitors disputed. As he put it, “More and more, software is getting integrated into the hardware. . . . Yesterday’s software is today’s hardware. Those two things are merging. And the line between hardware and software is going to get finer and finer and finer.”7 I remember some observers at the time castigating Steve Jobs for his desire to make Apple a company that integrated both hardware and software. In his critics’ view, this would condemn the brand to a niche market. For a while, the naysayers’ arguments were reinforced by the success of the seemingly absolute compatibility of Microsoft Windows. It’s true that, at the beginning, Apple was the brand for a small core of believers, often from creative industries. These passionate brand advocates allowed Apple to carry on until the tipping point of 2001, which was when the iPod launched. That year Steve Jobs changed the world, opening up a new era for design.

Apple was an early adopter of what was already known as “design thinking,” a both analytical and intuitive approach that leads to a deeper understanding of the user experience. Apple accelerated its emergence.

Today, all tech companies follow in the footsteps of Steve Jobs. Programmers are interested in not only what machines can do, but more importantly, how they are used. Fulfilling Jobs’s predictions, the interaction between software and hardware has become the distinctive sign of business.

In the Financial Times, John Gapper commented on Google’s project to make an entire platform—software and hardware—for driverless cars. He said, “Without the iPhone revolution, it is hard to imagine a technology company entering the transport industry, or designing a device that can steer cars around while receiving and transmitting streams of data.”8 The iPhone has provided tech companies with a new and unlimited world of opportunities. It was a pioneering product, helping people find ways to develop seamless hardware and software solutions that drive innovation into new spaces.

Only when hardware and software work perfectly together, can the user experience be optimized. And what is a strategy today if not to constantly seek to improve the user experience? That’s why, little by little, as underlined by the Harvard Business Review, “Firms started treating corporate strategy as an exercise in design.”9 This approach facilitates the resolution of more and more complicated issues, addressing large-scale problems with multistep processes. Design helps cut through complexity.

For Steve Jobs, design was not so much a physical process as a way of thinking. This was the single-minded vision that drove his company. As a result, Apple took an end-to-end responsibility for the user experience years before the phrase “design thinking” became popular—and decades before the concept imposed itself on the business world as a whole.

The Art of Reduction

I would like now to talk not so much about design thinking, but of design in the usual meaning of the word. Jonathan Ive, who has for years been Apple’s head of design, always adopted a minimalist approach. In our agency, we call this quest for simplicity “the art of reduction.”

One of the key elements of minimalism resides in the dualism of simplicity and richness, the fact that clean forms allow the essential to be revealed. In search of immediate readability, minimalist art advocates no distance between the object and its purpose. Apple is a paragon of this philosophy. Any superfluous ornament or element is removed. Apple aims to show the object as an idea. This approach is the foundation of minimalist art.

Steve Jobs turned computers into objects of desire, making design matter. He educated billions of peoples’ eyes. He made machines friendly and beautiful, brightening offices. By bringing beauty to a field where it was scarcely expected, Apple has raised our aesthetic expectations—forever, no matter the product category.

People talk about strong design like they talk about great art. Also like art, design leaves a lasting impression. Apple devices are art. Steve Jobs often said that he wanted Apple to be at the intersection of humanity and science. In almost every keynote presentation he made for the launch of a new product, he ended with a slide that showed two road signs at the intersection of Liberal Arts Street and Technology Street. It was his way of underlining how much he wanted to balance the humanities with science, creativity with technology, art with engineering.

Life Lessons

Steve Jobs’s legacy is immense. First, he shaped what was to become the New Economy by rendering possible thousands of business models. Second, he helped make design an art in itself. There are, of course, many other things Steve Jobs accomplished, but I wish to close this chapter by remembering some of his observations, memorable thoughts on issues close to his heart. On the subject of innovation, he confessed, “I’m actually as proud of the things we haven’t done as the things I have done. Innovation is saying no to 1,000 things.”10 On simplicity, he stated, “Simple can be harder than complex: you have to work hard to get your thinking clean to make it simple.”11

Steve Jobs did not leave us observations only of business, but also some timeless lessons from his own life and from life in general. He said that, for a free spirit like his, being fired by Apple was the best thing that could have happened. The liberty of becoming a beginner again replaced the burden of success. As he put it, “It freed me to enter one of the most creative periods of my life.”

He loved to mix experiences, conjugate different disciplines. On this subject, he often said that it’s impossible to connect the dots in advance. You can’t predict how things are going to turn out. It’s only with hindsight that you can make sense of things. “So, you have to trust that the dots will somehow connect in your future,” he added.

In the famous commencement address he gave at Stanford, he told the graduating class that when he was 17, he learned to live each day as if it were his last. After all, one day it certainly would be. Jobs explained that since realizing this, each morning he looked at himself in the mirror and thought about whether he would be happy with what he was planning to do during the day, assuming that day would be his last. If the answer several days running was no, then he knew it was time to change something important.

In the same speech, he explained to the students, “Your time is limited, so don’t waste it living someone else’s life.”12 He pushed them to always aim higher, to stay hungry, to stay foolish. When I first saw the video of this speech, I was reminded of the script our agency created for the commercial “Think Different.” In that we imagined Jobs saying:

Here’s to the crazy ones. The ones who see things differently. . . . They’re not fond of rules. And they have no respect for the status quo. . . . They push the human race forward. . . . And while some may see them as the crazy ones, we see genius. Because people who are crazy enough to think that they can change the world are the ones who do.

This closely reflected Jobs’s way of thinking. Perhaps the best way to sum up his passion to encourage each of us to “put a dent in the universe”13 is with the famous question he asked John Sculley, whom Jobs was recruiting to be the president of Apple. It was 1985 and Sculley was the president of Pepsi when Jobs made him that offer. To make it impossible for Sculley to refuse, Jobs asked, “Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?”14

Notes

1

The Telegraph. (October 7, 2011). “Steve Jobs leaves behind product legacy that will last for years,”

Telegraph

.

2

Balakrishnan, Anita (October 3, 2016). “Why Apple CEO Tim Cook doesn’t ask, ‘What would Steve Jobs do?” CNBC.com.

3

Stabiner, Karen (1993).

Inventing Desire: Inside Chiat/Day: The Hottest Shop, the Coolest Players, the Big Business of Advertising.

New York: Simon & Schuster.

4

1984 Apple Inc. Super Bowl commercial. Video available at

https://www.youtube.com/watch?v=cDDzGr80KSY

(accessed on January 10, 2019).

5

Carr, Austin (March 2017). “11-16 Alibaba, Tencent, Xiaomi, BBK Electronics, Huawei, Dalian Wanda for ramping up the pace for the world,”

Fast Company

, issue 213, 48.

6

Gibson, Rowan (2015).

The Four Lenses of Innovation: A Power Tool for Creative Thinking.

Hoboken, NJ: John Wiley & Sons.

7

Cheney, Steve (August 18, 2013). “1980: Steve Jobs on Hardware Software Convergence,” SteveCheney.com. Available at

http://stevecheney.com/1980-steve-jobs-on-hardware-software-convergence

(accessed December 17, 2018).

8

Gapper, John (January 11, 2017). “Steve Jobs’ legacy is the omniscient tech company,”

Financial Times

.

9

Brown, Tim and Roger Martin (September 2015). “Design for Action. How to use design thinking to make great things actually happen,”

Harvard Business Review

93(09), 57–64.

10

Cohen, Peter (May 22, 2015). “Saying no to 1,000 things,” iMore.com. Available at:

https://www.imore.com/saying-no-1000-things

(accessed December 17, 2018).

11

Jobs, Steve (May 25, 1998) in an interview to

Bloomberg BusinessWeek

.

12

Steve Jobs’ Commencement Address at Standford University (June 12, 2005). Available at

https://news.stanford.edu/2005/ 06/14/jobs-061505/

(accessed December 17, 2018).

13

DNews (October 12, 2011). “Steve Jobs: Dents in the Universe.”

https://www.seeker.com/steve-jobs-dents-in-the-universe-1765465298.html

(accessed December 17, 2018).

14

Sculley, John (Bloomberg TV, October 14, 2010). Quoted in a documentary series “Bloomberg Game Changers: Steve Jobs.”

CHAPTER 2JEFF BEZOS

ON EXPERIMENTATION AND PLATFORMS

There are certain overused expressions that I am fed up with. For example, every company should be “client centric.” This is hardly a new point of view; it has been around for decades. Back in the eighties, I remember the CEO of Auchan, one of Europe’s leading retail chains, claiming to “put the client at the center” of all the strategies he developed for his group. Another worn-out management cliché is “the right to make mistakes.” How many articles or books condescendingly exhort the importance of having courage and taking risks? As if businesspeople don’t already know! These two platitudes in particular were staples of management books and articles, but when the Internet arrived, they were suddenly given new life.

In the digital revolution, everything starts with consumers; the Internet has truly put them at the center. Additionally, like it or not, companies are condemned to be resolutely open to risk. The Internet is the catalyst for turbulence, leaving companies with no other choice than to constantly question themselves, to continually experiment, and to innovate at an accelerated pace. Otherwise, they run the risk of being left behind by competitors—and eventually disappearing.

Jeff Bezos is the person who best represents the resurgence of these two concepts, client centricity and risk-taking, in today’s world. He has brought them to a new level of significance, which can be seen in Amazon. Bezos is driven to always get closer to his customers and he is constantly taking risks.

As a result, in 2017, Amazon was ranked number one in the American Customer Satisfaction Index1 as well as in LinkedIn’s ranking. Bezos has created the biggest and, above all, best service company in history; he calls Amazon “the earth’s most consumer-centric company.”2

Experimentation as a Strategy

The foundation to Jeff Bezos’s thinking is that customers are never satisfied. They’re always looking for a better way, but without a clear idea of what that may look like. This is why Jeff Bezos has always been dubious about customer research. He once declared that “a remarkable customer experience starts with heart, intuition, curiosity, play, guts, taste. You won’t find any of it in a survey.”3 Jeff Bezos shares with Steve Jobs the belief that there’s no point in asking consumers what they want. This goes against many business approaches. For example, the head of Xiaomi mobile phones constantly looks to improve his products based on feedback that is gathered daily from his user community. By contrast, Apple’s and Amazon’s visionaries believe that listening to consumers leads you nowhere. Bezos’s goal is to give people what they don’t know they need.

To invent, you obviously have to explore, experiment—take a leap into the unknown. Success comes out of conducting hundreds of unsuccessful experiments. There is always serendipity involved in discovery. Failure must be welcomed; it has to be embraced. In Silicon Valley this seems natural. Innovators there have even coined a word for it. They call failure pivoting.

“I’ve made billions of dollars of failure at Amazon,”4 states Jeff Bezos. Recall the Fire Phone, the auction site Amazon Auction, and the hotel-booking site Amazon Destination. Dozens of ideas didn’t work, but they were compensated by a few big successes. As he has said, Amazon’s success depends on the number of experiments the company does per year, per month, per week, per day. For Bezos, experimentation is not a way toward the strategy; it is the strategy.

In technology, the return on investment can be very long tailed because the Internet increases the success of an idea exponentially. This leads Jeff Bezos to advise, “Given a 10 percent chance of a 100-times payoff, you should take that bet every time. But you’re still going to be wrong 9 times out of 10.”5

Experimentation means that decisions are no longer the result of lengthy upstream discussions. Rather, they are made after ideas have been tested live. This avoids unending talk, which is often counterproductive. When one project of many doesn’t work out, it isn’t seen as a mistake or a failure. To the contrary, it is seen as moving the company’s collective thinking forward. Why? Because more failures actually lead to more successes. And “as the company grows, the size of the mistakes has to grow as well,”6 Bezos has commented.

Amazon is always experimenting, so that customer experiences can become a little better every day. The goal is total satisfaction. Experimentation is fueled by the desire to make the execution perfect. Attention is given to even the most minor details. But this is not micro-management. Like Steve Jobs, Jeff Bezos is obsessional when it comes to the quality of the user experience. This is why he personally controls every pixel on the site’s landing page. During meetings, he spends most of his time reading emails from clients. He has declared that Amazon’s customers remain loyal until the very second a competitor comes with a better service.

Jeff Bezos believes that this behavior sets him apart from the vast majority of other corporate leaders. He claims not to think about the competition because doing so would distract him from the essential: the consumer. Rather than thinking conventionally in terms of market share, Bezos thinks in terms of market creation. As he puts it, “Other companies have more of a conqueror mentality. We think of ourselves as explorers.”7

The Platform Economy

Today, Amazon is perhaps the most influential company in the world, a position due to its unquestionable role as the spearhead of the platform economy. From now on, all companies will need to develop platforms, creating systems that interact easily with others.

What do Facebook, Twitter, Uber, Airbnb, Apple, Salesforce, and Amazon have in common? Their business models may be very different, but each owes its strength to an online platform that connects people and ecosystems. Of course, these businesses monetize their platforms differently. Facebook and Twitter live on advertising revenues. Uber and Airbnb charge fees. Apple sells products and has also built a platform for app developers, who, in turn, render the brand’s products even more desirable.

These platforms are all sophisticated networks. Building them is complex because companies need to aggregate thousands and thousands of customers and the data that is relevant to them. Thanks to mobile apps, users can interact with any business, anytime, anywhere. The most valuable new-economy companies are all platforms that position them as quasi-monopolies.

When Jeff Bezos launched Amazon as a virtual bookstore, he devised an infrastructure that combined leading-edge IT with breakthrough logistics. This pairing became the core competency of his company. Amazon has since gradually built out from its initial assets. “Take inventory of what you are good at and extend out from your skills,”8 advises Bezos. We have all witnessed Amazon’s evolution from an e-commerce powerhouse to a company hosting third-party sites. Amazon Web Services makes its data expertise and cloud-computing capabilities available to thousands of other companies, including Netflix, to use in building their own applications. No one invests more energy than Amazon when it comes to improving, aggregating, and pivoting its business, or in helping clients pivot theirs. Unquestionably, Amazon has had a hand in the construction of the new economy. It has created a platform that is so sophisticated and powerful that it impacts the way the Internet works.

In its 2016 Tech Vision report, Accenture pointed out that “a platform does not just support the business, the platform is the business.”9 An interesting point in Accenture’s analysis shows the degree to which digital platforms are not limited to tech companies. The health care sector includes many platforms that bring together different providers and collect and manage data via apps. This is also the case for other sectors of industry. General Motors has developed OnStar, a connected car platform, Disney has its MyMagic+ platforms, and General Electric has created Predix, the world’s largest industrial Internet of Things.

GE’s clients can develop their own applications on the Predix platform. Their factories, as well as GE’s, will be able to improve productivity through real-time data management and networking of industrial equipment. For instance, the wear and tear of machine tools will be constantly monitored, allowing maintenance needs to be predicted and serviced before problems occur. To take an example from another industry, it won’t be long before every tracking point of every railroad company in the world is equipped with an electronic sensor that links to a real-time central database. This sets up industrial companies to become the next drivers of innovation.

According to Accenture, this will produce a major shift. Historical tech centers like Silicon Valley will disperse, spreading innovative activity across a variety of industry-concentrated global hubs. For General Electric and its former CEO Jeff Immelt, this will have a profound impact on the stock market. Immelt told Le Figaro