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. Speaker: Jon Kaehne, Head of Enterprise Strategy, Amazon Web Services

1. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Jon Kaehne
Head of Enterprise Strategy, Amazon Web Services
Level 200
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Leading Enterprise Innovation
@ Startup Speed

2. at the heart of new product
dev is one sad fact

3. 85%of new products #FAIL
- Harvard Business Review

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

5. worse yet – during market
disruption new product
development is the only safe haven

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

7. Or innovate as fast
as startups?

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

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

11. 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/

13. Disruption

14. “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

15. Accept that you know Nothing
Neither you, nor the customer, may know what the
product requirements are until after they’ve played with
the product
Test Smart
Failure friendly firms don’t fail, they either confirm or
reject hypotheses
Measure Smart
Lean Enterprises measure the right things
Iterate at Speed
Lean Enterprises don’t throw good money after bad.
But neither are they fickle. Whatever the case, they pivot
or persevere quickly
1
2
3
4
Principles of Lean Innovation

16. Accept that you know nothing
1

17. The problem is not
the wall between
engineering and
marketing

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

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

20. In fact neither do they
https://www.flickr.com/photos/helga/https://www.flickr.com/photos/yamagatacamille/

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

22. 50 page business plan
Capital Budgeting
3-month Requirements Analysis
Functional Documentation
9-month Development Project

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

24. What’s the alternative?

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!

32. Product Development
Product –
Market fit
Time
Scale

33. Product Development
Product –
Market fit
Time
Scale

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
Now: re-written as
photo app. Sold to
FB for 1bn
Started: burbn, location-based
mobile app. Photo sharing is
just one feature

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

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

39. MVPs do not (necessarily)
increase certainty
– they actually…
Reduce low-hanging uncertainty

40. remember,
(only) 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?

49. “Cloud is like a fertilizer
that creates startups”
- Eric Ries

50. Although undoubtedly tough,
this is all completely doable

52. “Our performance of SAP on AWS is off the scale. We reduced our
monthly billing cycle from four days to one day and have significantly
reduced our overall annual IT costs. ”
- Carlos Galiano, CIO, Seaco Global Ltd.

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

55. Thank you!