Driving Innovation at DVLA
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The document discusses Amazon's culture of innovation and organizing for innovation. It describes Amazon's focus on customer obsession, long-term thinking, willingness to fail, and being misunderstood for long periods. It also discusses how Amazon organizes for innovation through small, empowered teams and by hiring "builders" who are given freedom to innovate through rapid experimentation. The document provides examples of Amazon's mechanisms, architecture, culture and organizational structures that facilitate innovative thinking.
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Driving Innovation at DVLA
- 1. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Matt Lewis Chief Architect - DVLA Martin Bishop AWS UKIR Public Sector Solutions Architecture Manager Driving Successful Digital Transformation in the Public Sector
- 2. 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. Jeffrey P. Bezos Founder and Chief Executive Officer Amazon.com, Inc.
- 3. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. WHERE INNOVATION STARTS
- 4. » Customer Obsession “Start every process with the customer and work backwards.” » LongTermThinking “Be stubborn on the vision but flexible on the details.” » If you want to be inventive, you have to be willing to fail. “We are willing to go down on a bunch of dark alleys and occasionally we find something that really works.” » You have to be willing to be misunderstood for a long time. “We are very comfortable being misunderstood.” Our culture of innovation
- 5. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. OUR MISSION
- 6. Working Backwards Puts you in the shoes of your customer Ensures market fit
- 7. Working Backwards – PR and FAQs Work backwards from the customer Press Release FAQ User Manual Customer Press Release FAQ User Manual
- 8. Most companies write the software, they get it all working, and then they throw it over the wall to the marketing department, saying ‘here is what we built, go write the press release.’ That process is the one that’s actually backwards.” Jeffrey P. Bezos Founder and Chief Executive Officer Amazon.com, Inc.
- 9. » Customer Obsession “Start every process with the customer and work backwards.” » LongTermThinking “Be stubborn on the vision but flexible on the details.” » If you want to be inventive, you have to be willing to fail. “We are willing to go down on a bunch of dark alleys and occasionally we find something that really works.” » You have to be willing to be misunderstood for a long time. “We are very comfortable being misunderstood.” Our culture of innovation
- 10. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. OUR COMMITMENT
- 11. amazon vertraulich $5.1B Q4 ‘17 Billed Revenue, 45% YoY 8.5% of Q4 ‘17 Consolidated Amazon.com Revenue $1.35B Q4 ‘17 Operating Income 64 Price Reductions (since ‘06) 1,430 New Services and Features introduced in FY 17 Millions of Monthly Active Customers AWS By The Numbers
- 12. » Customer Obsession “Start every process with the customer and work backwards.” » LongTermThinking “Be stubborn on the vision but flexible on the details.” » If you want to be inventive, you have to be willing to fail. “We are willing to go down on a bunch of dark alleys and occasionally we find something that really works.” » You have to be willing to be misunderstood for a long time. “We are very comfortable being misunderstood.” Our culture of innovation
- 15. » Customer Obsession “Start every process with the customer and work backwards.” » LongTermThinking “Be stubborn on the vision but flexible on the details.” » If you want to be inventive, you have to be willing to fail. “We are willing to go down on a bunch of dark alleys and occasionally we find something that really works.” » You have to be willing to be misunderstood for a long time. “We are very comfortable being misunderstood.” Our culture of innovation
- 17. How do we organize for innovation? » Mechanisms Encoded behaviors that facilitate innovative thinking » Architecture Structure that supports rapid growth and change » Culture Customer obsession, hire builders, let them build, support them with a belief system » Organization Small, empowered teams that own what they create
- 18. How do we organize for innovation? » Mechanisms Encoded behaviors that facilitate innovative thinking » Architecture Structure that supports rapid growth and change » Culture Customer obsession, hire builders, let them build, support them with a belief system » Organization Small, empowered teams that own what they create
- 20. Single-purpose Connect only through APIs Connect over HTTPS Largely “black boxes” to each other “Microservices”
- 21. Self-service Platforms without Gatekeepers We are creating powerful self-service platforms that allow thousands of people to boldly experiment and accomplish things that would otherwise be impossible or impractical.
- 22. How do we organize for innovation? » Mechanisms Encoded behaviors that facilitate innovative thinking » Architecture Structure that supports rapid growth and change » Culture Customer obsession, hire builders, let them build, support them with a belief system » Organization Small, empowered teams that own what they create
- 23. At Amazon, we hire Builders and let them build.
- 24. Everyone of us is a leader on our mission
- 25. How do we organize for innovation? » Mechanisms Encoded behaviors that facilitate innovative thinking » Architecture Structure that supports rapid growth and change » Culture Customer obsession, hire builders, let them build, support them with a belief system » Organization Small, empowered teams that own what they create
- 26. Amazon Achieves Speed and Agility with Two-Pizza Teams Small, decentralized teams are nimble Own/run what you build Fosters Ownership & Autonomy
- 27. Culture of Experimentation: We Give Our People Freedom To Innovate Rapid iteration –
- 28. How do we organize for innovation? » Mechanisms Encoded behaviors that facilitate innovative thinking » Architecture Structure that supports rapid growth and change » Culture Customer obsession, hire builders, let them build, support them with a belief system » Organization Small, empowered teams that own what they create
- 29. We had three big ideas at Amazon that we have stuck with for 20+ years, and they are the reason we are successful: put the customer first, invent and be patient. Jeffrey P. Bezos Founder and Chief Executive Officer Amazon.com, Inc.
- 30. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Matt Lewis, Chief Architect DVLA
- 31. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. DVLA – What we do • Register drivers and vehicles • Issue driver and vehicle documentation • Collect Vehicle Excise Duty (vehicle tax) • Maintain accurate databases • Share information lawfully
- 32. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Unique Size and Scale £6bn 50m 48m 23m 2016/17 – Revenue generated £6.1bn 50 million licensing transactions per year – 78% online. We maintain a register of 40 million vehicles (~1.5 per UK household), 48 million driver records (or >9 out of 10 people over the age of 16 in the UK), 68% of renewal transactions online We handle over 23 million card payments a year making us a Tier 1 merchant, and the second biggest UK organization for direct debit payments
- 33. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. DVLA IT Strategy
- 34. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. The barrier to transformation is our technology
- 35. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. It really is all about the people
- 36. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Organising ourselves for success
- 37. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. A pay framework that helps us to compete
- 38. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Succession Planning
- 39. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 40. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. DVLA engineering community
- 41. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Empowering our people to make a difference
- 42. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. >70%Reduction in cloud run costs
- 43. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Lower cost to experiment • Working prototype delivered in days • Massive scalability to support billions of enquiries • Flexibility to throttle volumes to support hybrid architecture • Reduced cost and increased agility with serverless computing
- 44. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 45. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Reduce risk through Automation
- 46. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Economic and Market Forces zone Clean air
- 47. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Thank you!
Editor's Notes
- Let me begin with a quote by Jeff Bezos, which demonstrates how AWS thinks about fostering innovation for others. This can be teams within Amazon but then more importantly, developers, businesses, and enterprises outside of Amazon.
- And how do we do this ? We start with the customer and work backwards. That is where innovation comes from. It’s not only about being close to customers and talking about what they like and need, but it’s also about reinventing on their behalf. 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. No customer ever asked Amazon to create the Prime membership program, but it sure turns out they wanted it
- And this approach of starting with the customer to enable innovation is rooted in a culture within our company which is about four things: Customer Obsession Long Term Thinking Inventive mind set that is okay with failure And willingness to try new things, and therefore be misunderstood We tie these mental models to how we build businesses, and they have both a platform approach and a financial underpinning for how we tie that to building platforms
- Our mission is broad, which leaves the kinds of opportunities we can get into broad. We want to be a customer centric company, and that can take many shapes, forms, and sizes.
- And when you break it down there are a lot of specific reasons that are driving decisions today. Such as: Increase agility: Almost always when you talk to companies, the number one reason they choose to move to the cloud is the agility and the speed that they get in the cloud. And when they talk about speed, it's two things. The first is the ability to spin up thousands of servers in minutes as opposed to 10 to 18 weeks it takes for most on-premises companies to spin up servers. But even more importantly, what allows them to move fast is having a plethora of infrastructure services at their fingertips to get from idea to implementation in several orders of magnitude faster than they could before. Additionally, some of our customers are creating business cases where they believe their workforce can be anywhere between 30-70% productive and deliver features much faster as a result of migrating their skills and applications to the cloud. We see a lot of data center consolidation or rationalization projects, especially in companies that have been acquisitive or have otherwise experienced infrastructure sprawl over the years. We increasingly talk to companies looking to completely re-imagine their business using modern technology as part of a larger digital transformation program, and, of course, any cost conscious organization is always looking for ways to improve the bottom line by reducing their costs.
- And this approach of starting with the customer to enable innovation is rooted in a culture within our company which is about four things: Customer Obsession Long Term Thinking Inventive mind set that is okay with failure And willingness to try new things, and therefore be misunderstood We tie these mental models to how we build businesses, and they have both a platform approach and a financial underpinning for how we tie that to building platforms
- But our mission is rooted in our commitment, which is manifested by focusing on bringing ease to customers. Making their lives easier.
- Or the other example is AWS. In 2006 we started the business, and Wall Street and others said it was a risky bet. But 10+ years later, it is the business of AWS that Wall Street loves.
- And this approach of starting with the customer to enable innovation is rooted in a culture within our company which is about four things: Customer Obsession Long Term Thinking Inventive mind set that is okay with failure And willingness to try new things, and therefore be misunderstood We tie these mental models to how we build businesses, and they have both a platform approach and a financial underpinning for how we tie that to building platforms
- This is from the 2015 letter to shareholders
- But innovation is hard, and there are failures that we should be mindful of. At Amazon we learn from our failures, and then look take those learnings and evolve. http://www.forbes.com/sites/ryanmac/2016/04/05/jeff-bezos-calls-amazon-best-place-in-the-world-to-fail-in-shareholder-letter/#7a24121562f4 Jeff Bezos Letter to Shareholders 2016: “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. AWS, Marketplace and Prime are all examples of bold bets at Amazon that worked, and we’re fortunate to have those three big pillars. They have helped us grow into a large company, and there are certain things that only large companies can do. Invention Machine We want to be a large company that’s also an invention machine. We want to combine the extraordinary customer-serving capabilities that are enabled by size with the speed of movement, nimbleness, and risk-acceptance mentality normally associated with entrepreneurial start-ups. Can we do it? I’m optimistic. We have a good start on it, and I think our culture puts us in a position to achieve the goal. But I don’t think it’ll be easy. There are some subtle traps that even high-performing large organizations can fall into as a matter of course, and we’ll have to learn as an institution how to guard against them. One common pitfall for large organizations – one that hurts speed and inventiveness – is “one-size-fits-all” decision making. Some decisions are consequential and irreversible or nearly irreversible – one-way doors – and these decisions must be made methodically, carefully, slowly, with great deliberation and consultation. If you walk through and don’t like what you see on the other side, you can’t get back to where you were before. We can call these Type 1 decisions. But most decisions aren’t like that – they are changeable, reversible – they’re two-way doors. If you’ve made a suboptimal Type 2 decision, you don’t have to live with the consequences for that long. You can reopen the door and go back through. Type 2 decisions can and should be made quickly by high judgment individuals or small groups. As organizations get larger, there seems to be a tendency to use the heavy-weight Type 1 decision-making process on most decisions, including many Type 2 decisions. The end result of this is slowness, unthoughtful risk aversion, failure to experiment sufficiently, and consequently diminished invention. 1 We’ll have to figure out how to fight that tendency. And one-size-fits-all thinking will turn out to be only one of the pitfalls. We’ll work hard to avoid it… and any other large organization maladies we can identify.
- And this approach of starting with the customer to enable innovation is rooted in a culture within our company which is about four things: Customer Obsession Long Term Thinking Inventive mind set that is okay with failure And willingness to try new things, and therefore be misunderstood We tie these mental models to how we build businesses, and they have both a platform approach and a financial underpinning for how we tie that to building platforms
- First example is the Kindle. Many people questioned the first generation of the kindle. And it was quite big and heavier than most books. But we stayed focus on our vision, and over time created a convenient way for people to read more books, and now have the Paperwhite version.
- These are the four aspects that go into how we organize for innovation, and when you do this, you take innovation (which is usually managed centrally by most enterprises), and move it to the edge….
- These are the four aspects that go into how we organize for innovation, and when you do this, you take innovation (which is usually managed centrally by most enterprises), and move it to the edge….
- So, it's not just how many services and capabilities we have, but we're also iterating at a very fast clip by listening to what our customers tell us matters, and then making that a reality. As a builder on the AWS platform, every day a customer wakes up, on average, with three new capabilities they can choose to use or not. Just for perspective, in 2011, we released over 80 significant services and features; in 2012, nearly 160; in 2013, 280, in 2014, 516, in 2015, we launched 722. In 2016, we launched 1,017 new services and features. As of April 1st, we have launched 236 new features and services in 2017.
- These are the four aspects that go into how we organize for innovation, and when you do this, you take innovation (which is usually managed centrally by most enterprises), and move it to the edge….
- https://youtu.be/3n1NpmtJ5G8
- This is underpinned on a consistent belief in what are the LPs that make people successful, and that is based on the 14 LPs of amazon.com
- These are the four aspects that go into how we organize for innovation, and when you do this, you take innovation (which is usually managed centrally by most enterprises), and move it to the edge….
- These are the four aspects that go into how we organize for innovation, and when you do this, you take innovation (which is usually managed centrally by most enterprises), and move it to the edge….
- I leave you with a simple way of looking the path forward.
- Gave each engineering squad their own AWS dev account (limited blast radius) Gave them accountability to determine their requirements and manage account billing There is still a gated process to move into controlled environments This has encouraged innovation and upskilling