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.

1. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Amazon’s Culture of
Innovation
October 2018

2. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
History of Innovation
1994  Founded
1995  Amazon.com
1998  Added CDs & DVDs
2006  Amazon Web Services
2007  Kindle
2011  Video
2012  Groceries
2014  Alexa/Echo
2015  Bookstores
2017  Go

3. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Our Mission
to be the earths most customer
centric company

4. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Our commitment
we make our customers’ lives
easier

5. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Where innovation begins
we start with the customer
and work backwards

6. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Amazon’s Growth Flywheel
> Value
> Selection
> Convenience

7. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Integrated
Networking
Rules Engine
Device Shadows
Device SDKs
Device Gateway
Registry
Local Compute
Machine Learning
Conversational
Interface
Virtual Desktops
App Streaming
Schema
Conversion
Image Recognition
Sharing &
Collaboration
Exabyte-Scale
Data Migration
Text to Speech Corporate Email
Application
Migration
Database
Migration
Regions
Availability Zones
Points of
Presence
Data Warehousing
Business Intelligence
Elasticsearch
Hadoop/Spark
Data Pipelines
Streaming Data
Collection
ETL
Streaming Data
Analysis
Interactive SQL
Queries
Queuing & Notifications
Workflow
Email
Transcoding
Deep Learning
Frameworks
Server
Migration
Communications
Business Apps
Business
Intelligence
DevOps Tools Security Networking StorageDatabases
API Gateway
Single Integrated
Console
Identity
Sync
Mobile Analytics
Mobile App
Testing
Targeted Push
Notifications
One-click App
Deployment
DevOps Resource
Management
Application Lifecycle
Management
Containers
Triggers
Resource Templates
Build and Test
Analyze and Debug
Compute
VMs, Auto-
scaling, Load
Balancing,
Containers,
Virtual Private
Servers, Batch
Computing,
Cloud Functions,
Elastic GPUs,
Edge Computing
Storage
Object, Blocks,
File, Archivals,
Import/Export,
Exabyte-scale data
transfer
CDN
Databases
Relational,
NoSQL,
Caching,
Migration,
PostgreSQL
compatible
Networking
VPC, DX, DNS
Identity
Management
Key Management
& Storage
Monitoring
& Logs
Configuration
Compliance
Web Application
Firewall
Assessment
& Reporting
Resource &
Usage Auditing
Access Control
Account
Grouping
DDOS Protection
Support Professional
Services
Optimization
Guidance
Partner
Ecosystem
Training &
Certification Solutions Management
Account
Management
Security & Billing Reports
Personalized
Dashboard
TECHNICAL & BUSINESS SUPPORT
MARKETPLACE
Monitoring
Manage
Resources
Data Integration
Integrated Identity &
Access
Integrated Resource &
Deployment
Management
Integrated Devices
& Edge Systems
Resource
Templates
Configuration
Tracking
Server
Management
Service
Catalogue
Search
HYBRID ARCHITECTUREANALYTICS MOBILE SERVICESDEV/OPS IoT AI ENTERPRISE APPS MIGRATION
APP SERVICES
INFRASTRUCTURE CORE SERVICES SECURITY & COMPLIANCE MANAGEMENT TOOLS

8. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
How do we organize for Innovation?

9. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
How do we organize for Innovation?
>> Mechanisms
Encoded behaviors that facilitate innovative thinking

10. © 2018, 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
User
Manual

11. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Working Backwards process
1
1

12. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Who is your
customer?
•
Be specific about their
context and needs

13. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Artifacts from the Working Backwards process
Press Release
FAQ
Visuals

14. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
We read,
discuss,
debate and
ask
questions.

15. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
19
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.”
Jeff Bezos
Founder and Chief Executive Officer
Amazon.com, Inc.
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

16. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
How do we organize for Innovation?
>> Mechanisms
Encoded behaviors that facilitate innovative thinking
>> Architecture
Structure that supports rapid growth and change

17. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
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.”

18. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Integrated
Networking
Rules Engine
Device Shadows
Device SDKs
Device Gateway
Registry
Local Compute
Machine Learning
Conversational
Interface
Virtual Desktops
App Streaming
Schema
Conversion
Image Recognition
Sharing &
Collaboration
Exabyte-Scale
Data Migration
Text to Speech Corporate Email
Application
Migration
Database
Migration
Regions
Availability Zones
Points of
Presence
Data Warehousing
Business Intelligence
Elasticsearch
Hadoop/Spark
Data Pipelines
Streaming Data
Collection
ETL
Streaming Data
Analysis
Interactive SQL
Queries
Queuing & Notifications
Workflow
Email
Transcoding
Deep Learning
Frameworks
Server
Migration
Communications
Business Apps
Business
Intelligence
DevOps Tools Security Networking StorageDatabases
API Gateway
Single Integrated
Console
Identity
Sync
Mobile Analytics
Mobile App
Testing
Targeted Push
Notifications
One-click App
Deployment
DevOps Resource
Management
Application Lifecycle
Management
Containers
Triggers
Resource Templates
Build and Test
Analyze and Debug
Compute
VMs, Auto-
scaling, Load
Balancing,
Containers,
Virtual Private
Servers, Batch
Computing,
Cloud Functions,
Elastic GPUs,
Edge Computing
Storage
Object, Blocks,
File, Archivals,
Import/Export,
Exabyte-scale data
transfer
CDN
Databases
Relational,
NoSQL,
Caching,
Migration,
PostgreSQL
compatible
Networking
VPC, DX, DNS
Identity
Management
Key Management
& Storage
Monitoring
& Logs
Configuration
Compliance
Web Application
Firewall
Assessment
& Reporting
Resource &
Usage Auditing
Access Control
Account
Grouping
DDOS Protection
Support Professional
Services
Optimization
Guidance
Partner
Ecosystem
Training &
Certification Solutions Management
Account
Management
Security & Billing Reports
Personalized
Dashboard
TECHNICAL & BUSINESS SUPPORT
MARKETPLACE
Monitoring
Manage
Resources
Data Integration
Integrated Identity &
Access
Integrated Resource &
Deployment
Management
Integrated Devices
& Edge Systems
Resource
Templates
Configuration
Tracking
Server
Management
Service
Catalogue
Search
HYBRID ARCHITECTUREANALYTICS MOBILE SERVICESDEV/OPS IoT AI ENTERPRISE APPS MIGRATION
APP SERVICES
INFRASTRUCTURE CORE SERVICES SECURITY & COMPLIANCE MANAGEMENT TOOLS

19. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
516
24 48
6
1
82
159
280
722
1,01
7
LAUNCHES
2008 2009 2010 2011 2012 2013 2014 2015 2016
1430
2017
P A C E O F
I N N O V A T I O N
New capabilities daily

20. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
24
A look back at
development at
Amazon… circa 2001
•

21. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
25

22. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
A structure that allowed for
1 change/second…
> Single-purpose
> Connect only through APIs
> Connect over HTTPS
> Largely “black boxes” to each other
> “Microservices”

23. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
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

24. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
At Amazon, we
hire Builders and
let them build.

25. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Leadership Principals - LP‘s
Every one of us
is a leader on
our mission

26. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
32
We Give Our People
Freedom To Innovate

27. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
33
The
Institutional
YES!

28. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
34
Experiment early &
frequently

29. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
35
Is it a one-way or
a two-way door?

30. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
The
Institutional
YES!
Learn from failures…

31. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Willingness to be
misunderstood

32. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
38
66
Price Reductions (since ‘06)
1,430
New Services and Features
introduced in FY 17
Millions of
Monthly Active Customers
Willingness to be misunderstood

33. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
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
>> Organisation
Small, empowered teams that own what they create

34. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
40
Two-Pizza teams are
fast and agile, foster
ownership and
autonomy
Small,
decentralized
teams are
nimble
Own and
run what
you build

35. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
41
Innovation at the Edge
enable everyone to innovate

36. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
43
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.
Jeff Bezos
Founder and Chief Executive Officer
Amazon.com, Inc.

37. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
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