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Developing the Story





               The goal of telling a story is to introduce a new business model in an engaging, tangible way.
               Keep the story simple and use only one protagonist. Depending on the audience, you can use
               a different protagonist with a different perspective. Here are two possible starting points.                                                                     consumer
                                                                                                                                                                                 market
                                                                                                                                                      online retail
            STORYTELLING  Company Perspective           maintaining its own servers. Similarly, Amazon Elastic         1   it infrastruc-                shop      amazon.com
                                                                                                                            fulfi llment
                                                        Computing Cloud (Amazon EC2)(11) offers Amazon.
                        Ajit, 32, Senior IT Manager, Amazon.com
                                                        com’s own computing capability to outside clients.
                        Ajit has worked for Amazon.com as an IT
                                                                                                                           development &
                        manager for the past nine years. He and his      Ajit knows that outsiders might view such services   2 ture & software
                                                                                                                           maintenance
         176176         colleagues have pulled countless all-nighters   as distracting Amazon.com from its core retail opera-
                        over the years to deliver the world-class IT   tions. From the inside, though, the diversifi cation makes                                       sales margins
            DESIGN      infrastructure that serves and maintains the   perfect sense.                                  3  ture & software
                                                                                                                           it infrastruc-

                        company’s e-commerce business.
                                                           Ajit remembers that four years ago, his group spent
                  Ajit is proud of his work. Along with its fulfi llment   much time coordinating the efforts of the network engi-  4  fulfi llment
               excellence (1, 6), Amazon.com’s powerful IT infrastruc-  neering groups, which managed IT infrastructure, and   infrastructure
               ture and software development capabilities (2,3) form   the applications programming groups, which managed
               the heart of its success at selling everything from books   Amazon.com’s many Web sites. So they decided to build   5
               to furniture online (7). Amazon.com (8) delivered over   so-called application programming interfaces (APIs)  technology & content
                                                                                                                    6
                                                                                                                        fulfi llment
               half a billion page impressions to online shoppers (9) in   (12) between these two layers, which would allow the   (marketing)
               2008, and spent over a billion dollars for technology and   latter to easily build on the former. Ajit also remembers
                                                                                                                                                       amazon web
               content (5), notably to run its e-commerce operations.   exactly when they started to realize that this would be                       services: s3, ec2,       companies and
                                                                                                                                                      sqs,  other web           developers
                  But now Ajit is even more excited, because Amazon.  useful to external as well as internal customers. So under                        services
               com is traveling far beyond its traditional retail offers. It’s   Jeff Bezos’s leadership, Amazon.com decided to create a                             APIs
               in the process of becoming one of the most important   new business with the potential to generate a signifi cant
               infrastructure providers in e-commerce.   revenue source for the company. Amazon.com opened
                  With a service called Amazon Simple Storage   up its infrastructure APIs to provide what it calls Amazon
               Systems (Amazon S3) (11) the company is now using its   Web Services to outside parties on a fee-for-service basis                                 utility computing fees
               own IT infrastructure to provide online storage to other   (14). Since Amazon.com had to design, create, imple-
               companies at rock-bottom prices. This means that an   ment, and maintain this infrastructure anyway, offering
               online video hosting service can store all customer vid-  it to third parties was hardly a distraction.
               eos on Amazon’s infrastructure rather than buying and







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