In the third installment of How to Grow Your Business Like Amazon, Steve provides a deep dive into one of the four cycles - The Test Cycle!
In order for Amazon to cultivate such remarkable products and services, they had to test countless strategies and processes. When breaking it down, Steve explains how The Test Cycle is comprised of three primary principles: Encourage Successful Failure, Bet on Big Ideas, and Practice Dynamic Invention and Innovation.
Each of these principles help to lay the foundation of testing new products and services. Without these three principles, Amazon would have never seen the success they achieved.
So sit back, relax, and enjoy a thought-provoking discussion that could help you apply The Test Cycle's principles to your business.
00:20 - Recapping discussions from prior episodes
01:00 - the importance of testing in business
03:13 - Principle #1: Encourage Successful Failure
05:20 - Inventing can be messy
06:00 - The Apollo Mission and its failure for NASA
09:00 - "Our mission became known as NASA's biggest failure"
11:45 - How Amazon has failed along their journey
14:50 - Principle #2: Bet on Big Ideas
17:00 - The company was wed to three elements: Marketplace, Prime, and AWS
19:00 - Over 50% of sales on Amazon products go through third-party sellers
21:30 - Overview on the development of Amazon Prime
23:10 - The big idea of AWS
25:45 - Principle #3: Practice Dynamic Invention and Innovation
27:00 - The development of the Kindle
32:15 - Experimentation leads to invention, that allows for thorough innovation
34:15 - The Test Cycle isn't just for startups
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