During Amazon Web Services’ (AWS) November re:Invent conference, there were a number of interesting talks.
Psst…Don’t run away, not-interested-in-technology folks, this is barely about tech if you look closely.
I got the most out of the sessions centered around the strategic design decisions that Amazon.com (an AWS customer) and other AWS customers were making.
These discussions were all about making a system resilient, scalable and capable of reacting quickly and transparently to changes in the business – while keeping costs as low as possible and tied directly to the business’ actual resource usage.
Naturally, their point was that AWS helps provide this ability to people who build systems.
AWS streamlines server infrastructure the same way LTL trucking streamlines freight shipping.
LTL clients get to use a high quality transportation system without investing a fleet of trucks, warehouses, dispatchers, mechanics and drivers that they may not need two weeks from now. Yet all of those resources and jobs are necessary to get freight from point a to point b. Shippers pay for what they use, meaning less waste, more efficiency, better job security and better asset use.
As I said, this isn’t about tech.
No one ever says
During a discussion on why AWS is always changing, Bezos summed it up simply: “No one ever says ‘Jeff, I love AWS but I wish it was more expensive.’ or ‘Jeff, I love AWS but I wish it was a little less reliable.’ or ‘Jeff, I love AWS but I wish you would improve it at a slower rate.’ ”
Is it any different for you? For the LTL trucking firm?
In a business where inexpensive, high quality delivery whose cost tied to usage is the focus, these changes simply don’t happen without high quality systems managing things.
Systems reduce inertia, eliminate obstacles and streamline processes so people can get the right work done faster at the same (or better) level of quality.
They aren’t about tech.
What’s the next hot thing?
When Bezos was asked about the difference between being an entrepreneur when he started Amazon (1995) and now, he said “the rate of change has increased substantially”.
He noted that people always ask him what the “next big thing” is and lamented “I almost never get asked ‘What’s not going to change in the next 10 years?’ “.
He likened businesses that address those long-standing needs to flywheels. They take time to spin up, but run smoothly and efficiently once at operating speed.
These days, solutions to these needs can be built anywhere. In a rural Montana community of 4000 people, Zinc Air has developed energy storage technology that makes dependable, scalable, portable power storage a reality.
Power availability in the developing world is a need of substantial scope as it is in places that would otherwise require months or years of infrastructure construction. It’s one more example of a need that isn’t changing anytime soon.
Is there a business there?
Not all that long ago, a substantial reason for chasing venture capital was the cost of server infrastructure. Using cloud computing like AWS, you pay for what you use as your business grows, rather than for massive infrastructure you may never use. A long-standing obstacle that impacted business development has been addressed.
Obstacles like those that LTL trucking, AWS and Zinc Air eliminate are the kind of change that Bezos was talking about when he spoke of businesses addressing long-standing inefficiencies, problems and barriers in things that won’t change over the next 10 years, rather than trying to figure out what the next big thing is.
Consider hunger. The short term solution is usually feeding people who can’t feed themselves. The long term solution is somehow enabling them to alter their economic situation so they no longer need help feeding themselves. Solving it might include some combination of jobs, medical care, child care, irrigation, clean well water, transportation, seed stock and better farming methods.
“The next big thing” might be your streamlined solution to just one small inefficiency in one area that makes hunger so difficult to extinguish. And it might be bigger than Amazon.
“If you’re willing to be misunderstood for a long period of time, then you’re ready to start something new.” – Jeff Bezos, commenting on starting Amazon.