Kaz Nejatian, COO & VP of Product at Shopify spoke about the company at the Collision Conference
The Collision Conference brought together some of the brightest minds in the tech industry. One of them was Kaz Nejatian, COO & VP of Product at Shopify. He was interviewed by Kia Kokalitcheva, Technology & VC Reporter at Axios. The panel discussion happened just two months after Shopify’s announcement of selling its delivery operation, signifying a shift in their strategy away from competing with Amazon. Nejatian’s insights shed light on the reasoning behind this decision. Let’s see what he had to say about it?
Focus on the core business
What led to the drastic change in the strategy? The key factors behind this significant change, according to Nejatian, are two cultural aspects of Shopify that are uncommon in the tech industry: “we reserve the right to wake up smarter tomorrow and we do this pattern of building products through partnerships. We’ve done this before”. He said that what impacted the decision to sale the delivery operation was the fact that the acquiring company was better equipped to handle logistics, which was never the core focus of Shopify. “It’s really easy for companies to get distracted from the main mission and focus on side quests”, he said.
What is their core business?
According to Nejatian, Shopify’s core business is to help merchants to find customers, connect to them and build long-lasting relationships. That is also the core of their new venture, Shop Pay, which he describes as not a marketplace, but as a “shopping assistant for buyers to connect with merchants that they already follow. It’s about deepening relationships with brands.”
Kaz Nejatian with Kia Kokalitcheva. Photo by Ramsey Cardy/Collision via Sportsfile
With roots in small merchants, Nejatian says they have been “dragged into enterprise”. Last January, they have launched Commerce Components. This innovative approach involves breaking down their platform and offering tailored solutions that cater specifically to their clients’ needs. Does this ways of business and collaboration hurt the brand? “It’s not our goal to be all internet shopping”; in fact, it’s their “anti-goal.” Instead, Shopify’s primary objective is to be helpful in the most effective and relevant ways possible.
What does it all have to do with outsourcing?
To draw a parallel to IT outsourcing, companies often turn to external service providers to handle non-core functions and focus on their primary business objectives. IT outsourcing allows organizations to delegate specific IT tasks, such as software development, infrastructure management, or technical support, to specialized providers. By doing so, companies can free up internal resources, tap into external expertise, and streamline their operations.
Would you like to learn more about Datum’s outsourcing or are you thinking about outsourcing your IT needs? Talk to one of our specialists.
