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The flywheel metaphor was created by Jim Collins in his business classic Good to Great2. It was famously adopted by Amazon. This model is about sequential phases of work which logically support the next. The more you do them, the better you get and the more momentum the flywheel develops.
In his award-winning book about Amazon, The Everything Store, Brad Stone described the Amazon flywheel:
Drawing on Collins’s concept of a flywheel, or self-reinforcing loop, Bezos and his lieutenants sketched their own virtuous cycle, which they believed powered their business. It went something like this: Lower prices led to more customer visits. More customers increased the volume of sales and attracted more commission-paying third-party sellers to the site. That allowed
Amazon to get more out of fixed costs like the fulfillment centers and the servers needed to run the website. This greater efficiency then enabled it to lower prices further. Feed any part of this flywheel, they reasoned, and it should accelerate the loop.Â
by brilliantnoise.com