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Innovation at AWS - 18 September - 15:00

Published: October 13, 2019

AWS Loft Istanbul 2019 Innovation at AWS - 18 September - 15:00

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Innovation at AWS - 18 September - 15:00

4. Slide2471 © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. “There are many advantages to a customer-centric approach, but here’s the big one: Customers are always beautifully, wonderfully dissatisfied, even when they report being happy and business is great. Even when they don’t yet know it, customers want something better, and your desire to delight customers will drive you to invent on their behalf.” - Jeff Bezos, 2016 letter to shareholders
6. How do we organize for innovation? © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we organize for innovation? Culture Customer obsession, hire builders, let them build, support them with a belief system Mechanisms Encoded behaviors that facilitate innovative thinking Architecture Structure that supports rapid growth and change Organization Small, empowered teams that own what they create
7. How do we organize for innovation? © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we organize for innovation? Culture Customer obsession, hire builders, let them build, support them with a belief system Mechanisms Encoded behaviors that facilitate innovative thinking Architecture Structure that supports rapid growth and change Organization Small, empowered teams that own what they create
8. Every one of us is a leader on our mission © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Every one of us is a leader on our mission © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Invent and Simplify Hire and Develop the Best Frugality Deliver Results Are Right, A Lot Dive Deep Bias for Action Insist on the Highest Standards Earn Trust Ownership Think Big Customer Obsession Have Backbone, Disagree & Commit Learn and Be Curious
9. Our Leadership Principles © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Our Leadership Principles Customer Obsession Leaders start with the customer and work backwards. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers. Ownership Leaders are owners. They think long term and don’t sacrifice long-term value for short-term results. They act on behalf of the entire company, beyond just their own team. They never say “that’s not my job”. Invent and Simplify Leaders expect and require innovation and invention from their teams and always find ways to simplify. They are externally aware, look for new ideas from everywhere, and are not limited by “not invented here”. As we do new things, we accept that we may be misunderstood for long periods of time. Are Right, a Lot Leaders are right a lot. They have strong judgment and good instincts. They seek diverse perspectives and work to disconfirm their beliefs. Learn and Be Curious Leaders are never done learning and always seek to improve themselves. They are curious about new possibilities and act to explore them. Hire and Develop the Best Leaders raise the performance bar with every hire and promotion. They recognize exceptional talent, and willingly move them throughout the organization. Leaders develop leaders and take seriously their role in coaching others. We work on behalf of our people to invent mechanisms for development like Career Choice. Insist on the Highest Standards Leaders have relentlessly high standards—many people may think these standards are unreasonably high. Leaders are continually raising the bar and driving their teams to deliver high quality products, services and processes. Leaders ensure that defects do not get sent down the line and that problems are fixed so they stay fixed. Think Big Thinking small is a self-fulfilling prophecy. Leaders create and communicate a bold direction that inspires results. They think differently and look around corners for ways to serve customers. Bias for Action Speed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk taking. Frugality Accomplish more with less. Constraints breed resourcefulness, self-sufficiency and invention. There are no extra points for growing headcount, budget size or fixed expense. Earn Trust Leaders listen attentively, speak candidly, and treat others respectfully. They are vocally self-critical, even when doing so is awkward or embarrassing. Leaders do not believe their or their team’s body odor smells of perfume. They benchmark themselves and their teams against the best. Dive Deep Leaders operate at all levels, stay connected to the details, audit frequently, and are skeptical when metrics and anecdote differ. No task is beneath them. Have Backbone; Disagree and Commit Leaders are obligated to respectfully challenge decisions when they disagree, even when doing so is uncomfortable or exhausting. Leaders have conviction and are tenacious. They do not compromise for the sake of social cohesion. Once a decision is determined, they commit wholly. Deliver Results Leaders focus on the key inputs for their business and deliver them with the right quality and in a timely fashion. Despite setbacks, they rise to the occasion and never settle. Whether you are an individual contributor or a manager of a large team, you are an Amazon leader. These are our leadership principles, unless you know better ones. Please be a leader.
10. Slide2469 © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Invent and Simplify Leaders expect and require innovation and invention from their teams and always find ways to simplify. They are externally aware, look for new ideas from everywhere, and are not limited by “not invented here”. As we do new things, we accept that we may be misunderstood for long periods of time.
12. Slide120 © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 73 Price Reductions (since ‘06) 1957 New Services and Features introduced in FY 18 Millions of Monthly Active Customers
13. Slide2470 © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Bias for action Speed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk taking.
15. How do we organize for innovation? © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we organize for innovation? Culture Customer obsession, hire builders, let them build, support them with a belief system Mechanisms Encoded behaviors that facilitate innovative thinking Architecture Structure that supports rapid growth and change Organization Small, empowered teams that own what they create
16. Working Backwards is a process © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Working Backwards is a process Use it to get clarity, not to document what you’ve already decided to do Customer Press Release FAQ Visuals
17. Who is the customer? © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Who is the customer? Be specific about their context and needs © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
20. FAQs © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. FAQs •Include both customer FAQs and internal FAQs •Include the hard questions •Share your Press Release early to gather questions Sample Customer FAQs: 1.How is this different from what Amazon offers me today? 2.Can I get a refund if I’m dissatisfied? 3.Are there things I need to manage or keep track of? 4.How much does this cost? Sample Internal FAQs: 1.What decisions and guidance do we need today? 2.What customer feedback have we collected so far? 3.What will customers be most disappointed in? 4.What other options did we consider and reject? 5.What are our MLP features? 6.What are our hotly debated topics? 7.Are we stepping through any “one way doors”? 8.Who is the single threaded leader?
21. Visuals © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Visuals •Show the customer experience •Rough idea – rough drawing •Match fidelity to maturity of your idea •Don’t be afraid to be provocative
22. Slide548 © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. We read, discuss, debate, and ask questions © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
23. How do we organize for innovation? © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we organize for innovation? Culture Customer obsession, hire builders, let them build, support them with a belief system Mechanisms Encoded behaviors that facilitate innovative thinking Architecture Structure that supports rapid growth and change Organization Small, empowered teams that own what they create
24. A shift to microservices • Single-purpose• Connect only through hardened APIs • Largely “black boxes” to each other• Business logic and data only accessible through APIs © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. ‹#› A shift to microservices • Single-purpose • Connect only through hardened APIs • Largely “black boxes” to each other • Business logic and data only accessible through APIs © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
25. Self-service platformswithout gatekeepers © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Self-service platforms without gatekeepers Creating powerful self-service platforms that enable builders to use the right tool for the right job © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
28. How do we organize for innovation? © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we organize for innovation? Culture Customer obsession, hire builders, let them build, support them with a belief system Mechanisms Encoded behaviors that facilitate innovative thinking Architecture Structure that supports rapid growth and change Organization Small, empowered teams that own what they create
29. Amazon hires builders and lets them build © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon hires builders and lets them build © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
30. Two-Pizza teams are fast and agile, fostering ownership and autonomy © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Two-Pizza teams are fast and agile, fostering ownership and autonomy Small, decentralized teams are nimble Own and run what you build © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
32. Slide101 © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. To our shareowners (2015) This year, Amazon became the fastest company ever to reach $100 billion annual sales. Also this year, Amazon Web Services is reaching $10 billion in annual sales. One area where I think we are especially distinctive is failure. I believe we are the best place in the world to fail (we have plenty of practice!), and failure and invention are inseparable twins. To invent you have to experiment, and if you know in advance that it’s going to work, it’s not an experiment. Most large organizations embrace the idea of invention, but are not willing to suffer the string of failed experiments necessary to get there. Outsized returns often come from betting against conventional wisdom, and conventional wisdom is usually right. Given a ten percent chance of a 100 times payoff, you should take that bet every time. But you’re still going to be wrong nine times out of ten. We all know that if you swing for the fences, you’re going to strike out a lot, but you’re also going to hit some home runs. The difference between baseball and business, however, is that baseball has a truncated outcome distribution. When you swing, no matter how well you connect with the ball, the most runs you can get is four. In business, every once in a while, when you step up to the plate, you can score 1,000 runs. This long-tailed distribution of returns is why it’s important to be bold. Big winners pay for so many experiments. © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
34. How do we organize for innovation? © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we organize for innovation? Culture Customer obsession, hire builders, let them build, support them with a belief system Mechanisms Encoded behaviors that facilitate innovative thinking Architecture Structure that supports rapid growth and change Organization Small, empowered teams that own what they create
35. Slide2472 © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Invention comes in many forms and at many scales. The most radical and transformative of inventions are often those that empower others to unleash their creativity – to pursue their dreams Jeff Bezos Founder and Chief Executive Officer Amazon.com, Inc. © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

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