Incumbent enterprises face dramatically competitive landscapes, with threats from almost every direction.  Protecting your core business and innovating for the future is a delicate balancing act.  Innovating as fast as a startup becomes a core competency, but failed new product innovation wastes time and resources.   In this session, IT managers and professionals learn how running a lean enterprise can be a powerful framework for leading enterprise-scale innovation as effectively and fast as a startup. 

1. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
June 21, 2017
Leading Enterprise Innovation at Startup Speed
David Florey, Head of ProServe HKT, AWS

2. The Lean Enterprise

3. at the heart of new product
dev is one sad fact
https://www.flickr.com/photos/striatic/

4. 85%of new products #FAIL
- Harvard Business Review

5. that’s trillions
of dollars in
wasted
innovation
each year
https://www.flickr.com/photos/japokskee/

6. worse yet – during
market disruption new
product dev is the only
safe haven
https://www.flickr.com/photos/a_sorense/

7. https://www.flickr.com/photos/68751915@N05/
what if we could reduce
waste by even 10%

8. or innovate as fast as
start-ups?
https://www.flickr.com/photos/rainbirder/

9. THE GOOD NEWS!
we have proven tools to
reduce waste
https://www.flickr.com/photos/japokskee/https://www.flickr.com/photos/vinothchandar/

10. https://www.flickr.com/photos/130321091@N06/

12. THE REALLY GOOD NEWS!
we also have proven tools
to apply this to innovation
https://www.flickr.com/photos/japokskee/https://www.flickr.com/photos/vinothchandar/

14. Disruption

15. “Lean Startup is a new strategy for the 21st-
century corporation” - Steve Blank, HBR
http://en.wikipedia.org/wiki/Steve_Blank#mediaviewer/File:Steve_Blank.jpg

16. Principles of Lean Innovation
Accept that you know Nothing
You and customers may know what product
requirements are until after they’ve played with products
Test Smart
Failure-friendly firms don’t fail, they confirm or reject
hypotheses
Measure Smart
Lean Enterprises measure the right things
Iterate at Speed
Lean Enterprises don’t throw good money after bad.
Whatever the result, they pivot or persevere quickly

17. accept that you know nothing
1

18. The problem is
not the wall
between
engineering and
marketing
https://www.flickr.com/photos/79286287@N00/

19. The problem is
not the wall
between
engineering and
marketing
The problem is
the wall between
you and your
customer

20. You don’t
know what
the customer
wants
https://www.flickr.com/photos/helga/

21. in fact neither do they
https://www.flickr.com/photos/helga/https://www.flickr.com/photos/yamagatacamille/

22. So how do most firms
respond to all this
uncertainty?

23. 50 page business plan
Capital Budgeting
3-month Requirements
Analysis
Functional Documentation
9-month Development
Project…

24. 50 pge business plan
Capital Budgeting
3-month Requirements
Analysis
Functional Documentation
9-month Development
Project
Cross Fingers

25. test smart
2

26. innovators love failure!

27. innovators love failure!

28. innovators love to experiment
https://www.flickr.com/photos/marsdd/

29. experiments confirm or reject
hypotheses. failure is not an option

30. innovators experiment using minimum
viable products (MVP)

31. MVPs like “concierge services” can
even be pretend!
https://www.flickr.com/photos/havoc315/

32. Product Development
Product –
Market fit
Time
Scale

33. Product Development
Time
Scale
Product –
Market fit

34. Innovation & Iteration
Time
Scale
Product –
Market fit

35. Innovation & Iteration
Time
Scale
Started: burbn, location-based mobile
app. Photo sharing is just one feature
Product –
Market fit

36. Innovation & Iteration
Time
Scale
Started: burbn, location-based mobile
app. Photo sharing is just one feature
Now: Instagram –
re-written as photo
app. Sold to FB for
1bn

37. Innovation & Iteration
Time
Scale
Started: odeo, site to create & share
podcasts

38. Innovation & Iteration
Time
Scale
Started: odeo, site to create & share
podcasts
Now: micro-blogging,
500M users, IPO,
>18Bn market cap

39. MVPs do not increase
certainty - they reduce low-
hanging uncertainty

40. remember, just reducing
failed products from 90% to
80% is already a big deal

41. measure smart
3

44. iterate at speed
4

45. pivot versus persevere

46. de-risking value > experiment cost

47. 1. Choose the right hypotheses
2. Reduce the cost to experiment

48. So how is all this relevant
for the cloud?

50. Although undoubtedly
tough, this is all
completely doable

54. Remember
if you don’t do it, direct or
brand new competitors
will

55. THANK YOU!!
dflorey@amazon.com
David Florey