It has long been clear that Amazon was far more than just lucky when it comes to how they became the largest online retailer in the world. Smart business decisions and a focus on efficiency has allowed them to grow and profit through all the changes going on around them. As Amazon is beginning to enter new markets, they are focusing on making sure they are doing it right, and that means using lean manufacturing techniques. According to the website Enna:
“Amazon has traditionally been known as an online retailer, but the Seattle, Washington-based company is quickly diversifying into other areas. One of the new service packages it is developing, Amazon Web Services (AWS), is a cloud-computing platform designed for businesses.
AWS is a radical new direction for the company, but Amazon wants to do it the right way. For that reason, the internet retailer has turned to Toyota’s Lean manufacturing approach as a means to eliminate and reduce any inefficiencies standing in its way. Because AWS is a low-margin offering, the company is determined to make it as efficient as possible.”
Focusing on efficiency allows Amazon to not only develop and profit from this innovative service, but it also allows them to help the developers who use their service improve their efficiency as well. It is clear that Amazon has a strong lean manager in place who will help guide this division of the company to success long into the future. Employees, investors and customers of this business should feel confident in the way it is being run. Enna quotes:
“This extends to software developers as well. By making AWS so efficient, application developers and data center costs are aligned.“
Anyone starting up any type of business, or looking to improve the way an existing business is run should look to Amazon to see how they are breaking new ground in their organization. With proper planning and a strong adoption of lean practices it is possible to do incredible things with any company.
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