The re architecting the firm - sharing session guspri
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The document summarizes Amazon's rearchitecting efforts led by Jeff Bezos in 2002. 1) Before 2002, Amazon was facing scaling issues as its business grew rapidly. Its organization, technology, and data had evolved into silos, limiting its ability to expand. 2) In 2002, Bezos issued a memo mandating that all teams use APIs to break down silos. He sought to rearchitect Amazon's technology and organization simultaneously. 3) Bezos rebuilt Amazon's retail operations on a software platform with a state-of-the-art AI factory and data platform. This new digital operating model allowed Amazon to scale unprecedentedly in scope, scale, and learning.
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The re architecting the firm - sharing session guspri
- 1. Rearchitecting The Firm AGUS PRIANTO INFOMEDIA Sharing Session July 23, 2020 business case
- 2. COMPETING IN THE AGE OF AI
- 3. INTRO - FOUR INDUSTRIAL REVOLUTION Industry Revolution : Technology, Business Model, Operation Model, Organization Model, Competency Model Craft Production Mass Production Mass Customization Complex Operation Pekerjaan menjadi terspesialisasi dan mendorong Organisasi, Teknologi dan Data berevolusi menjadi SILO Need New Re-Architecting to Meets Scale, Scope, Learning Growth
- 5. US$ 1 T = Rp 15.000 T ~ 2,5 x APBN ~ 50 x TLKM AMAZON MARKET VALUE
- 7. AMAZON - A CRITICAL DIFFICULT TRANSITION 則 When organizations expand, they become increasingly complex and difficult to manage, so they build bureaucracies and inefficiencies. 則 With too much scale, too much scope (variety), or too much demand for learning and innovation, any managerial process will eventually stop working well, leading to inefficiency and even failure. 則 Large firms often use thousands of enterprise applications and IT systems, working with a variety of scattered databases and supporting diverse data models and structures. 則 Integrating data across different functional silos (without rearchitecting the entire system) is a long, horrifically complicated, unreliable process. Before API Mandate (Bezos Memo in 2002), AMAZON was starting to look like a traditional firm. Its organization, data, and technology had evolved into silos. Connections between silos were haphazard and often unpredictable, motivated by meeting immediate needs and fighting fires. AMAZON was dealing with limits on the scalability and scope of its business
- 8. Drive The Digital Business Transformation of AMAZON #RearchitectingTheFirm THE BEZOS MEMO 2002 Kondisi Amazon di 2002 : 則 Masa Transisi Amazon menjadi e-Commerce 則 Amazon mengalami kesulitan mendukung pertumbuhannya bisnisnya. 則 Terlalu banyak volume, terlalu banyak produk, terlalu banyak bisnis yang berbeda. 則 Process, System, Infrastructure Amazon breaking down. 則 Organisasi, Technology dan Data menjadi SILO 則 Amazon Online Retailer mengalami kesulitan 則 Amazon berhadapan dengan batasan skalabilitas dan ruang lingkup bisnisnya dan membutuhkan perubahan arsitektur besar. API MANDATE
- 9. HOW BEZOS RE-ARCHITECTING AMAZON Bezos understood that a digital firm requires a different kind of operating model, one that is architected to take an integrated core of software, data, and AI and use it to power a new breed of organization. RE-ARCHITECT ORGANIZATION AND CULTURE RE-ARCHITECT TECHNOLOGY & OPERATION Amazon is Digital Firm, Not Just Online Book Store... Bezos sought to rearchitect Amazons technology and organization at the same time 則 Break organizational and technological silos 則 Build the best software and data driven operating model in order to expand his retail operations to unprecedented levels of scale, scope, and learning. 則 Rebuilt Amazons retail operation on top of a software platform, which gradually evolved to embed a state-of-the- art AI factory
- 10. RE-ARCHITECT RE-ARCHITECT ORGANIZATION AND CULTURE
- 11. RE-ARCHITECT RE-ARCHITECT ORGANIZATION AND CULTUREActivityBase OutcomeBase
- 12. RE-ARCHITECT RE-ARCHITECT ORGANIZATION AND CULTURE Two Pizza Team No PPT & 6 Page Proposal Amazon Achieves Speed and Agility with Two Pizza Teams
- 13. RE-ARCHITECT RE-ARCHITECT ORGANIZATION AND CULTURE
- 14. RE-ARCHITECT TECHNOLOGY AND OPERATION Operating architecture for an AI-powered firm Membangun State-of-the-Art AI Factory dengan Data Platform yang dirancang dengan baik meningkatkan kemampuan organisasi untuk fokus pada Data Governance and Security Digital Operating Model menciptakan fondasi (atau platform) yang mencakup data dan teknologi, sebuah platform yang dapat digunakan dengan mudah dan cepat untuk membuat atau terhubung ke Agen Digital baru dalam bentuk aplikasi yang menangani berbagai USE CASE. / Digital agents State of the Art Data Platform - AI Factory
- 15. RE-ARCHITECT TECHNOLOGY AND OPERATION Operation Supervisor/ Manager/ Functional Leader Distribution Team Warehouse Team Settlement Team Operation Supervisor/ Manager/ Functional Leader Distribution Team Warehouse Team Settlement Team AGUS PRIANTO GUSPRI DIGITAL TEAMS MANAGER ROLE in Digital Operation Model : 則 Managers are Designers : shaping, improving & controlling the digital systems that sense customer needs and respond by delivering value. 則 Managers are Innovators : as they envision how these digital systems will need to evolve over time. 則 Managers are Integrators : as they work to connect disparate digital systems and identify new connections between the firms operating model and the customers it serves. 則 Managers are Guardians : as they work to preserve the quality, reliability, security, and responsibility of the digital systems they control. TRADITIONAL OPERATING MODEL DIGITAL OPERATING MODEL