What is “Virtuous cycle”?

The technology company that I work with has a “virtuous cycle” concept that is organically included in the interviews of the CEO and executives, and in the speeches of our product leaders.

For example, an excerpt from Google CEO Sundar Pichai’s interview with MIT Technology Review about quantum supremacy 🔎 “For example, us building our own data centers is what allowed us to build something like TPUs [tensor processing units, specialized chips for Google’s deep -learning framework, TensorFlow], which makes our algorithms go faster. So it’s a virtuous cycle.”

Well, what is this “virtuous cycle”? A recurring cycle of events, the result of each one being to increase the beneficial effect of the next, the opposite of a vicious circle (a situation in which one problem causes another problem which then makes the first problem worse). The term has been translated into Turkish language as “efficient cycle”, “fertile cycle”, “sequence of benefits”.

What does the ‘virtuous cycle’ mean for companies?

Today’s technology giant Amazon was built on the customer experience-oriented “Virtuous Cycle” concept twenty years ago. Jeff Bezos, founder and CEO of Amazon, painted one of the most iconic business models on the back of a paper napkin. The drawing of Bezos, dubbed the “Virtuous Cycle,” shows the idea that success begins with a great customer experience. A great customer experience will attract more customer traffic, customers will bring more sellers to the system, these sellers will provide more…