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Culture of Innovation
The document outlines Amazon's approach to innovation, emphasizing a customer-centric methodology that begins with understanding customer needs and working backwards to develop solutions. It discusses the creation of an environment conducive to innovation through mechanisms like decentralized teams, self-service tools, and a culture that embraces failure as a part of the process. Additionally, it highlights Amazon's digital innovation program, which guides businesses in defining and prototyping new digital products or services within a structured workshop format.
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Culture of Innovation
- 1. Innovation at Amazon Innovationwith Amazon Digital Innovation Program Overview Business objectives
- 2. © 2018, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. 44 Innovation at Amazon
- 3. © 2018, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. 55 Where innovation begins start with the Customer and Work Backwards
- 4. © 2019, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. 1994 Founded 1995 Amazon.com 1998 CDs & DVDs 2006 AWS 2007 Kindle 2011 Video 2012 Groceries 2014 Alexa/Echo 2015 Bookstores 2017 Go
- 5. © 2019, AmazonWeb 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. © 2018, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. 88 Creating the right environment for Innovation Mechanisms: Encoded behaviors that turn ideas into meaningful innovations Working Backwards methodology, PR-FAQs, and detailed Narratives Organization: We decentralize authority to single- threaded owners leading small, empowered ‘two pizza’ teams that own what they create Architecture: Empower innovators through self-service tools; utilize AWS cloud platform to build quickly, scale fast and minimize costs of failure Culture: Hire builders & manage against our 14 Leadership Principles, Think Big & invest early and accept failure as a critical part of the innovation process
- 7. © 2018, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. 99 A mechanism is a complete process…. Working Backwards 1 2 3 4 5
- 8. © 2018, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. 1010 5 Working Backwards Questions
- 9. © 2018, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. 1111 Working Backwards Mechanism Customer Press Release FAQ Visuals © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Innovation begins with the Customer, then work backwards
- 10. © 2019, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. We revise, and make the idea better with each iteration
- 11. “Done correctly, theWorking Backwards process is a huge amount of work. But, it saves you even more work later. The Working Backwards Process is not designed to be easy, it’s designed to save huge amounts of work on the backend, and to make sure we’re actually building the right thing. ”Jeffrey P. Bezos Founder and Chief Executive Officer Amazon.com, Inc.
- 12. © 2018, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. The Working Backwards is a Mechanism that enables Everyone to Innovate in the Authenthic Amazon way
- 13. © 2018, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. 1919 Innovation with Amazon 19
- 14. © 2018, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. 2020 Interested in Amazon’s approach to Innovation? EXPLORE Culture of innovation at Amazon and Identify the Busienss Challenge DEFINE a new product, service, or experience that will delight your customers; start with the customer and work backwards BUILD a prototype in the cloud to bring your new digital offering to life; test it with your customers 1 2 3 Let’s partner to invent something your customers will love, fast AWS Digital Innovation Program
- 15. © 2018, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Bias for Action Deliver Results Learn & Be Curious Customer Obsession Working Backwards Articulate customer Innovation via PR/FAQ/Visuals Working Backwards Session Innovation at Amazon EXECUTIVE REVIEW EXECUTIVE REVIEWEXECUTIVE REVIEWTODAY Think Big Identify end- customer & end- customer need / opportunity PR/FAQ review Visuals Deliver innovation at scale with AWS Digital Innovation Program 1-3 days 5-30 days3-5 hrs ~ 2 months~ 1 month
- 16. © 2018, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. 2222 Define- Amazon Innovation Workshop 1 or 2 Days Working Backwards Workshop with 7-10 attendees GOAL: 1. Define a new digital product vision using Amazon´s Working Backwards 2. Draft a Press Release (PRFAQ) format 3. Draft Business Model Problem or opportunity Press Release Diverge Converge Location: Amazon office in Europe (e.g Milan. Berlin, Paris or Madrid) Typical attendees: Business leaders/ stakeholders such as CMO, COO, CDO, Head of Innovation/ Product Design / Digital Strategy, Business Development Managers, Digital Project / Marketing Managers & and Customer Service Managers ( 70% Business 30 % IT) Duration: 1 day (Required: commitment & preparations)
- 17. © 2018, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. 2323 Breakfast Introduction to the Day 8:00 – 8:30 Re-frame problem/opportunity 8:30 – 9:00 Recap of Explore Session 9:00 – 10:00 Start with the customer 10:00 – 10:30 Break 10:30 – 10:45 Think Big / What if? 10:45 – 11:15 Generate ideas / Crazy 8s 11:15 – 12:00 Lunch 12:00 – 12:30 Ideation (diverge) / Voting (converge) 12:30 – 1:30 Identify most important customer benefit 1:30 – 2:00 Break 2:00 – 2:15 Outline PR-FAQ 2:15 – 3:15 Plan prototype phase 3:15 – 4:00 Reflection, summary, and next steps 4:00 – 4:30 PROBLEM OR OPPORTUNIT Y PR (outline) Work backwards Focus on customer Digital Innovation Workshop (sample agenda)
- 18. © 2019, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. Focus on the customer Work backwards Press Release Outline Amazon Innovation Workshop Final PR/FAQ How would a disrupter approach this problem? How does this raise the bar for our customers? Circulate for feedback & signoff TODAY +14 DAYS 1+ MONTH Note: Timeline based on timely edits, feedback, committed resources – from both customer and AWS Problem / opportunity Rapid prototyping Iterating beyond the workshop
- 19.
- 20. How to makea Program Successful Customer 1. Executive sponsorship C-level business leader LoB head, and senior IT leaders 2. Specific Business Challenge identified problem or opportunity identified 3. Commitment to Engage in AWS Digital Innovation Program engagement (1-3months) 3. Good Faith in AWS as the platform of choice for prototype and scaled implementation 4. Public Reference at the end of the Workshop Amazon 1.Innovation mechanisms & experience Guided use of Amazon innovation methods and approach 2. Plan, drive, & facilitate innovation engagement going from a specific problem/ opportunity to a new digital solution(s) 3. Prototype capability & support to build and deploy breakthrough solutions (1-5 weeks after a refined PRFAQ is complete) Via internal resources and Partners
- 21. Let’s Start Work Hard,Have Fun, Make History
- 22. © 2018, AmazonWeb Services, Inc. or its Affiliates. All rights reserved. 30 © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 30 Thank You AMAZON CONFIDENTIAL