How to Build an Algorithm-Driven Business Model Like Amazon
What companies can learn from Amazon’s data-driven decision evolution
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Amazon’s success isn’t just about vast amounts of data— not at all, in fact.
It’s about systematically turning decisions into algorithms.
From the start, Amazon wrote down decisions, turned them into processes, and automated each step until decision-making became scalable.
Jeff Bezos is fine with making a gut decision at Amazon as long as you write it down, learn from it, and then share the knowledge.
The key is to prioritize decisions based on their business impact and automate them gradually. By focusing on refining decision-making processes with algorithms, Amazon continuously improved its operational efficiency and customer experience.
Key takeaways:
Start by documenting small, impactful decisions.
Keep on expanding your written framework for your decisions.
Automate incrementally—don’t rush full automation.
Ensure data collection serves the decision-making process, not the other way around.
