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While I support the endorsement of Amazon's data-driven culture and strategy, I don't think it's fair to describe Apple as its opposite. Apple is not the gut-dr

While I support the endorsement of Amazon's data-driven culture and strategy, I don't think it's fair to describe Apple as its opposite. Apple is not the gut-driven, "bet the company" firm that the general public seems to think it is. Its bets are very data-driven, albeit not quite as real-time-data-driven as a company like Amazon's, whose business model allows for more real time data in the first place. In broad strokes, I think I'd describe the two companies this way: Amazon innovates through optimization of new markets, while Apple innovates through creating new markets. This isn't a wholly fair description of either company, and as we know, there are exceptions in either direction. But that's the business model of the two companies at a 30,000-foot glance. As you've hinted, probably the best way to differentiate the strategies of the two companies is on the risk/reward dimension. Amazon operates on a risk-minimization model, while Apple is risk-seeking in favor of outsized rewards. This is partially because Apple is still a hardware company (for now, at least), and it needs to keep reinventing its products to stay ahead of the commoditization of hardware.

ChuckFrank 15y ago
"Amazon innovates through optimization of new markets, while Apple innovates through creating new markets" Well said.
- sankara 15y ago
  Amazon has created new markets. The article mentions Kindle and AWS. The ebook reader and ebooks did not (really) exist before Kindle. Same with AWS.
  - jonnathanson 15y ago
    True. There are exceptions to the statement I made, which is why I pointed out that it's not wholly fair. In fact, Amazon's entire existence can in many ways be said to have been the creation of a new market. Even still, I think it's fair to say that Amazon primarily innovates these days through rapid and extensive iteration, especially on its consumer side.
DanielRibeiro 15y ago
I've sent it to some of my coleagues an article menting this ("Steve Jobs does customer development" [1]). Still, people refused to accept any evidence that getting facts is better than going with your gut. This is the problem with people that don't believe in facts: they don't believe in the fact that this belief is bad for them. [1] http://venturehacks.com/articles/jobs-customer-development http://venturehacks.com/articles/jobs-customer-development

ChuckFrank 15y ago

"Amazon innovates through optimization of new markets, while Apple innovates through creating new markets" Well said.

sankara 15y ago
Amazon has created new markets. The article mentions Kindle and AWS. The ebook reader and ebooks did not (really) exist before Kindle. Same with AWS.
- jonnathanson 15y ago
  True. There are exceptions to the statement I made, which is why I pointed out that it's not wholly fair. In fact, Amazon's entire existence can in many ways be said to have been the creation of a new market. Even still, I think it's fair to say that Amazon primarily innovates these days through rapid and extensive iteration, especially on its consumer side.

DanielRibeiro 15y ago

I've sent it to some of my coleagues an article menting this ("Steve Jobs does customer development" [1]). Still, people refused to accept any evidence that getting facts is better than going with your gut. This is the problem with people that don't believe in facts: they don't believe in the fact that this belief is bad for them. [1] http://venturehacks.com/articles/jobs-customer-development http://venturehacks.com/articles/jobs-customer-development