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Show Notes:

• Data-driven decision making at Amazon. 0:10

  • Amazon prioritizes data-driven decisions, using historical patterns to inform new capacity planning.

• Optimizing inventory management through quantitative analysis. 0:59

  • Company analyzes data to optimize inventory management, keeping over 1 million items in stock while turning inventory 14 times per year.

• Making decisions without data. 2:22

  • Company prioritizes judgment over math in some important decisions, such as continuously lowering prices for customers despite data suggesting raising prices would be more profitable in the short term.

• Strategic vs. quantifiable decision-making in organizations. 4:05

  • Mintzberg et al. (1976) argue that excessive focus on quantifiable decisions may lead to inappropriate actions.

• Decision-making philosophy at Amazon. 5:14

  • Amazon prioritized customer convenience over internal concerns, expanding third-party sales from 6% to 28% of total units sold.

  • Bezos emphasizes customer-centric approach, bold investments, and continuous learning in Amazon's decision-making philosophy.