New World/New Rules

I recently read an interview of Jeff Bezos, the CEO of Amazon.com. The focus of the article was on the Kindle, their ultra-cool wireless reader.

When the Kindle was launched, the breakthrough wasn't in the concept; the first e-readers were introduced over a decade ago. But they were the first to finally get it right, addressing everything from the light weight of the hardware, an easy to read screen and access to a wide-range of books.

But I think the real breakthrough was that it was Amazon that put the whole package together, and not Apple, Intel or even Research in Motion, all of which are in the business of manufacturing computer hardware. After all, Amazon is a retailer; they're supposed to sell other people's stuff, not make it. Yet they broke some rules and did it anyway.

I like Jeff's explanation for how this came about. Here's what he said:

"There's a tendency, I think, for executives to think that the right course of action is to stick to the knitting—stick with what you're good at. That may be a generally good rule, but the problem is the world changes out from under you if you're not constantly adding to your skill set."

Maybe Jeff should have said, "It used to be a good rule." We're all witnessing how quickly products and services are becoming obsolete. That suggests that companies need to assume they're going to have a short lifespan, or instead they need to become much more creative and much more aggressive about how they define themselves in the marketplace.

Amazon took a risk when they stepped out of their routine, but it has clearly paid off. The Kindle is now their #1 selling product. I can't wait to see what their next reinvention is going to be!

Jennifer