Jeff Bezos built Amazon on one principle: the law of increasing returns.
Most people know the law of diminishing returns: growth slows as you expand.
But in a software-defined business, the opposite happens.
The more people use it, the more data is created.
The more data, the more value.
The more value, the greater the market cap.
Thatās why Amazon could grow 35% per year and still expand margins and cash flow.Ā The machine runs it.
When your marginal cost approaches zero, you create exponential returns.
Thatās the foundation of trillion-dollar companies.
Watch my full keynote to see how Jeff Bezos used this model and what every CEO can learn from it:Ā https://lnkd.in/e_w_hc77
#Leadership #DigitalTransformation #SoftwareDefinedBusiness #Innovation #BusinessStrategy #Execution
Most people know the law of diminishing returns: growth slows as you expand.
But in a software-defined business, the opposite happens.
The more people use it, the more data is created.
The more data, the more value.
The more value, the greater the market cap.
Thatās why Amazon could grow 35% per year and still expand margins and cash flow.Ā The machine runs it.
When your marginal cost approaches zero, you create exponential returns.
Thatās the foundation of trillion-dollar companies.
Watch my full keynote to see how Jeff Bezos used this model and what every CEO can learn from it:Ā https://lnkd.in/e_w_hc77
#Leadership #DigitalTransformation #SoftwareDefinedBusiness #Innovation #BusinessStrategy #Execution