Jeff Bezos latest annual letter (2014): Focus on customers and innovation

Buffett said that reading annual letters of organisations around the world is a good learning exercise. This one from Jeff Bezos is a good one. One thing about Amazon, an obsessive focus on customers.

We have the good fortune of a large, inventive team and a patient, pioneering, customer-obsessed culture — great innovations, large and small, are happening everyday on behalf of customers, and at all levels throughout the company. This decentralized distribution of invention throughout the company — not limited to the company’s senior leaders — is the only way to get robust, high-throughput innovation. What we’re doing is challenging and fun — we get to work in the future.

Failure comes part and parcel with invention. It’s not optional. We understand that and believe in failing early and iterating until we get it right. When this process works, it means our failures are relatively small in size (most experiments can start small), and when we hit on something that is really working for customers, we double-down on it with hopes to turn it into an even bigger success. However, it’s not always as clean as that. Inventing is messy, and over time, it’s certain that we’ll fail at some big bets too.

Value Creation

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