Amazon has been a powerhouse. Since the bookseller came online in the 1990s, Amazon has moved into so many industries that it is almost impossible to count. Many may not realise that as well as providing the service that ships almost anything to customers, it powers many internet services through its AWS (Amazon Web Services) Division. Amazon’s powerhouse that runs those services powering the cloud allows access to Quantum Computers in the same marketplace environment. One of the purported successes of Amazon is the “Amazon Fly Wheel”.
Recently at the 2nd Annual Economist Commercialising Quantum conference, Richard Moulds, general manager of Amazon Braket, AWS’s quantum computing service, spoke about how the company is applying tried and tested “Fly Wheel” to the Quantum Services it offers.
The Amazon Fly Wheel
The Amazon Flywheel is a concept coined by Jeff Bezos, the founder of Amazon, to describe the self-reinforcing cycle that drives the success and growth of the company. It is a virtuous cycle that operates based on the following key components:
- Selection and Low Prices: Amazon offers a vast selection of products at competitive prices. This attracts customers and encourages them to make purchases on the platform.
- Customer Experience: Amazon strongly emphasises providing excellent customer service and a seamless shopping experience. This includes fast and reliable shipping, convenient return policies, and personalized recommendations based on customer preferences.
- Customer Satisfaction: By providing a positive customer experience, Amazon aims to satisfy its customers and build loyalty. Satisfied customers are likelier to become repeat buyers and recommend Amazon to others.
- Traffic and Sales: Satisfied customers generate positive word-of-mouth, leading to increased website traffic and sales volume. As more customers make purchases on Amazon, the platform gains more data and insights about customer preferences, which can be used to enhance the customer experience and improve product offerings.
- Seller Success: Increased sales volume attracts more third-party sellers to the Amazon marketplace. These sellers offer a wider selection of products, attracting more customers. The success of third-party sellers contributes to the overall growth of the platform.
- Economies of Scale: As Amazon’s customer base and sales volume grow, the company achieves economies of scale. This enables Amazon to negotiate better deals with suppliers, reduce costs, and pass on customer benefits through lower prices or improved services.
The Amazon Flywheel represents a continuous loop, where each component reinforces and accelerates the others, driving further growth and success for the company. It highlights the importance of customer satisfaction, selection, pricing, and the overall customer experience in Amazon’s business strategy.
The Quantum Fly Wheel
As exemplified by Richard Moulds, Quantum Computing development can also be championed by the same methodology. In his presentation, Richard shows the Quantum Flywheel and discusses how the universalism of the Amazon Flywheel works for building a Quantum Ecosystem too.
Of course, the Amazon Flywheel only relates to the parts Amazon can control. Braket is hardware agnostic, and the laws of development of the quantum hardware are subject to perhaps slightly less amenable laws than the business process that the Fly Wheel represents. However, the impact on the quantum ecosystem could be vital.
But there will be some critical advantages of choice that AWS Braket will provide, especially when you think back to history when just every software company wanted to achieve “vendor lock-in”, whether it was for an OS (operating system) or application. Interestingly enough, AWS could benefit the industry as it encourages interoperability. In that, circuits can be run on a range of hardware options. Instead of value capture, Quantum Companies have to up their game. But at the same time, they will get access to a marketplace where exposure to their services is possible.
Vendor lock-in refers to a situation where a customer becomes heavily dependent on a particular vendor’s products, services, or technologies, making it difficult or costly to switch to an alternative vendor.
The impact of the Flywheel concept on the quantum industry could happen in the following way:
- Investment in Quantum: Amazon’s Flywheel emphasizes the importance of continuous investment in technology and innovation. In the quantum industry, companies and organizations that actively invest in quantum research, development, and infrastructure can drive innovation, foster breakthroughs, and accelerate the advancement of quantum technologies.
- Customer Experience: The Flywheel highlights the significance of customer adoption and satisfaction. In the quantum industry, companies that develop user-friendly quantum computing platforms, tools, and applications, and provide a seamless customer experience, have the potential to attract a more extensive user base and encourage widespread adoption of quantum technologies.
- Hardware Performance: In the quantum industry, as advancements are made in quantum hardware, algorithms, and error correction, achieving economies of scale in manufacturing quantum components, reducing error rates, and improving computational efficiency can contribute to lowering the overall costs of quantum systems and services. This, in turn, can promote wider accessibility and adoption of quantum technologies.
- Use-Cases and Algorithms: The Flywheel concept recognizes the importance of feedback loops and iterative improvements based on customer data and insights. In the quantum industry, gathering user feedback, monitoring performance, and using real-world data can refine quantum technologies, algorithms, and applications. This iterative improvement process can lead to better solutions, increased user satisfaction, and a positive feedback loop for further innovation and adoption.
Applying the Amazon Flywheel concept to the quantum industry underscores the importance of investing in research and development, fostering customer adoption and satisfaction, and building a vibrant ecosystem with multiple vendors supplying various diverse technologies. Multiple vendors on the Braket eco-system enable customers to run circuits with Ion Traps, Super Conductors, Neutral Atoms and Photonic systems.
