I recently read a very interesting analytical piece on the aggressive strategies being employed by Amazon to give their customers the best experience and how they are externalising such strategies (be it an in-house product or service) into commodities that other players (tech companies) can deploy in exchange for a fee, opening up an additional revenue stream for Amazon: the perfect example is Amazon Web Services which the company started to solve its cloud computing needs before commercializing it to serve other companies, bringing in about $3.6 billion in revenues according to their latest quarter earnings report; other examples of this model include Fulfilled by Amazon which other online retailers use;the Amazon Go still being tested among their users. Another company that commercialised an in-house product/service is PayPal whose anti-fraud system is today known as Palantir (which was rumoured to help capture Osama Bin Laden with its powerful data analytics tool) and is a company on its own.
While it is good to outsource a lot of peripheral stuff to focus on the core components of your company (in Nigeria), can this Amazon model be replicated by some tech companies here (when they get big) to launch new products/services that may end up being separate revenue-generating entities/companies for the parent companies? Considering one of @mark recent tweets on whether one can set up another company parallel to act as a competition to one’s parent company. A likely potential is KOS from Konga which the company initially started to serve its needs but is now available to other online retailers; Hotels.ng’s Spot.ng could also follow this model.
Are their other companies in Nigeria with in-house use-driven products/services that can potentially end up being commercialised to serve other companies, and possibly become companies on their own? And is this a better model for starting up new companies by parent companies (since the in-house use of such products/services provides an extensive feasibility framework/simulation of the potential market outside) when compared to just establishing a new company whose value proposition was not utilised in-house?