AWS STARTUP DAY 2018 I Innovation @ Amazon

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In this session, we review some of the mechanisms and best practices that help us innovate at Amazon, and go through some of the suggestions on how it applies to startups and particularly AWS customers. The goal is to drive simplicity through a continuous, explicit customer focus. Get insights on how we structure our teams for autonomy and speed, and how we’re 'working backwards' from our customers when deciding where to focus engineering efforts.

Technology

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Innovation @ Amazon
ASAF ANOLIK, HEAD OF INNOVATION PROGRAMS
AMAZON WEB SERVICES

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Agenda
• Why is innovation important to us
• What is innovation for us
• How we innovate:
Culture
Mechanisms
Organization
• Key Takeaways
• Q&A

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Why is innovation important?
Market Size - Up
By adoption
By unlocking
By funding
Productivity - Up
Tools
Addressable users
Tech Cost - Down
Economies of scale
Automation
Price reductions
Pay per use

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Why is innovation important?

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Innovation at Amazon (1995)

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
PrimeAir
Advanced Shopping
Kindle Reader Fire TV
Grocery Delivery
Amazon Video
Home AutomationCloud Computing
Examples from today

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Pace of Innovation – New capabilities daily
516
24 48 61 82
159
280
722
1,017
LAUNCHES
2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6
1,430
2 0 1 7

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Why is turning ideas to reality so hard?
Funding
Fund-raising and
access to capital
Commercials
Time-to-Market, Go-
to-Market, Legal
Time
Planning, creating, and
operating a business
Product
Validation, Market-fit,
Value-proposition
Talent / Expertise
Acquiring, training,
and retaining talent
Culture
Mindset, Speed, Risk,
Decision-making

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Our approach
Customer Obsession
“Start every process
with the customer
and work
backwards.”
Long Term Thinking
“Be stubborn on the
vision but flexible on
the details.”
“We are comfortable
being
misunderstood for a
long period of time.”
Willingness to fail
“Invention requires
two things: the
ability to try a lot of
experiments, and
not having to live
with the collateral
damage of failed
experiments.”

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Our execution
Culture: Hire
builders, guided by
our Leadership
Principles
Architecture:
Empower
innovators through
self-service tools.
Organization:
Decentralize
authority to single-
threaded teams
that own what they
create
Mechanisms:
Encoded behaviors
that turn ideas into
meaningful
innovations

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Culture – Hire builders

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Culture - failure

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Learning - from failures

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Learning - from successes

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Working Backwards
Customer Press Release FAQs Visuals

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
What won’t be simple – simply won’t be
“We will optimize the customer
experience to enable enhanced
accuracy in Buy-Box pricing to
facilitate increased rapidity and
elevated confidence in purchase
decisioning by cross-border retail
customers.”
“Amazon makes it easier for
international shoppers to decide
what to purchase by showing
them the total landed cost of an
item. Total landed cost includes
all taxes, duties, and shipping
costs.”

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
High Velocity Decision Making
1-WAY DOOR
Consequential and irreversible or
nearly irreversible decisions.
2-WAY DOOR
Most decisions are changeable,
reversible.

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Two-Pizza teams
Amazon Achieves Speed and Agility with small single-threaded teams.
Decentralized Ownership & Autonomy.

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Key Takeaways
• Experiment as much as you can - We are here to help.
• Reduce cost of failure – fast and cheap
• Future-proof for your customers – their needs will evolve
• Future-proof for your staff – they’ll need more capabilities
• We want to invent on your behalf – talk to us

© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Thank you
ASAF ANOLIK | MAY 9TH 2018

AWS STARTUP DAY 2018 I Innovation @ Amazon

Speaker: Asaf Anolik, Head of Innovation, AWS Focus: Business In this session, we’ll review some of the mechanisms and best practices that help us innovate at Amazon, and go through some of the suggestions on how it applies to startups and particularly AWS customers. The goal is to drive simplicity through a continuous, explicit customer focus. Get insights on how we structure our teams for autonomy and speed, and how we’re 'working backwards' from our customers when deciding where to focus engineering efforts.

Building a Culture of Innovation - AWS Partner Summit Mumbai 2018.pdf

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Customers often ask us how they can innovate "like Amazon". From its humble beginnings as a startup in a garage, Amazon has not only innovated across e-commerce, but also introduced new, diverse businesses beyond e-commerce. Over the years, Amazon has improved its ability to take on hard problems and find innovative ways to solve them. AWS is one such example. We have taken something as central and specialized as operating a data center, and pushed it to the edge as a utility. When technology becomes a utility, it becomes ubiquitous, allowing more people to participate in innovation. This talk discusses how Amazon approaches innovation with its mechanisms, architecture, culture, and organization. Ben Butler, Business Development, Accelerators, Amazon Web Services Mohamed Frendi, Director, Chief Information Office, Innovation, Science and Economic Development Canada, Government of Canada Daniel McLaughlin, Director General, Digital Services Division, Innovation, Science and Economic Development

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AWS STARTUP DAY 2018 I Innovation @ Amazon

2. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Agenda • Why is innovation important to us • What is innovation for us • How we innovate: Culture Mechanisms Organization • Key Takeaways • Q&A

3. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Agenda • Why is innovation important to us • What is innovation for us • How we innovate: Culture Mechanisms Organization • Key Takeaways • Q&A

4. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Why is innovation important? Market Size - Up By adoption By unlocking By funding Productivity - Up Tools Addressable users Tech Cost - Down Economies of scale Automation Price reductions Pay per use

10. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Agenda • Why is innovation important to us • What is innovation for us • How we innovate: Culture Mechanisms Organization • Key Takeaways • Q&A

12. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. PrimeAir Advanced Shopping Kindle Reader Fire TV Grocery Delivery Amazon Video Home AutomationCloud Computing Examples from today

13. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Pace of Innovation – New capabilities daily 516 24 48 61 82 159 280 722 1,017 LAUNCHES 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 1,430 2 0 1 7

14. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Why is turning ideas to reality so hard? Funding Fund-raising and access to capital Commercials Time-to-Market, Go- to-Market, Legal Time Planning, creating, and operating a business Product Validation, Market-fit, Value-proposition Talent / Expertise Acquiring, training, and retaining talent Culture Mindset, Speed, Risk, Decision-making

15. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Agenda • Why is innovation important to us • What is innovation for us • How we innovate Culture Mechanisms Organization • Key Takeaways • Q&A

16. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Our approach Customer Obsession “Start every process with the customer and work backwards.” Long Term Thinking “Be stubborn on the vision but flexible on the details.” “We are comfortable being misunderstood for a long period of time.” Willingness to fail “Invention requires two things: the ability to try a lot of experiments, and not having to live with the collateral damage of failed experiments.”

17. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Our execution Culture: Hire builders, guided by our Leadership Principles Architecture: Empower innovators through self-service tools. Organization: Decentralize authority to single- threaded teams that own what they create Mechanisms: Encoded behaviors that turn ideas into meaningful innovations

18. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Agenda • Why is innovation important to us • What is innovation for us • How we innovate Culture Mechanisms Organization • Key Takeaways • Q&A

23. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Agenda • Why is innovation important to us • What is innovation for us • How we innovate Culture Mechanisms Organization • Key Takeaways • Q&A

25. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. What won’t be simple – simply won’t be “We will optimize the customer experience to enable enhanced accuracy in Buy-Box pricing to facilitate increased rapidity and elevated confidence in purchase decisioning by cross-border retail customers.” “Amazon makes it easier for international shoppers to decide what to purchase by showing them the total landed cost of an item. Total landed cost includes all taxes, duties, and shipping costs.”

27. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. High Velocity Decision Making 1-WAY DOOR Consequential and irreversible or nearly irreversible decisions. 2-WAY DOOR Most decisions are changeable, reversible.

28. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Agenda • Why is innovation important to us • What is innovation for us • How we innovate Culture Mechanisms Organization • Key Takeaways • Q&A

30. The Institutional YES!

32. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Key Takeaways • Experiment as much as you can - We are here to help. • Reduce cost of failure – fast and cheap • Future-proof for your customers – their needs will evolve • Future-proof for your staff – they’ll need more capabilities • We want to invent on your behalf – talk to us

AWS STARTUP DAY 2018 I Innovation @ Amazon

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