The document discusses the challenges facing enterprises and how transformation is needed. It outlines both the disadvantages enterprises currently face, such as high customer expectations and constant change, as well as advantages they have like existing customer bases and resources. It then discusses how enterprises can transform by adopting new mechanisms, architectures, cultures and organizations that promote innovation, such as developing minimum viable products, using microservices architectures, and establishing small autonomous teams. New technologies like serverless computing and machine learning are also enabling this transformation. Overall, the document argues that enterprises of all kinds must transform to keep up with the changing environment.

1. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
What Transformation Really
Means for the Enterprise
Tom Laszewski
Americas EnterpriseTechnologist
AWS

2. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
ENTERPRISES FACE
A CHANGING ENVIRONMENT
?
H i g h c u s t o m e r
e x p e c t a t i o n s ,
f i c k l e n e s s
L o w b a r r i e r s
t o e n t r y
C o n s t a n t , r a p i d c h a n g e
a n d u n c e r t a i n t y

3. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
WHAT AN
ENTERPRISE

4. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
WHAT AN
ENTERPRISE
WHAT AN
ENTERPRISE

5. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
ON THE OTHER HAND
THEY HAVE EXISTING
ADVANTAGES
D e e p
k n o w l e d g e
o f t h e i r
m a r k e t s
S k i l l e d a n d
c o m m i t t e d
e m p l o y e e s
F i n a n c i a l
a n d o t h e r
r e s o u r c e s
E x i s t i n g
c u s t o m e r
b a s e
O p e r a t i o n a l
p r o c e s s e s ,
c o m p l i a n c e
c e r t i f i c a t i o n s

6. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Andy Jassy
AWS CEO
“There is no compression algorithm for
experience.”

7. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
ALL ENTERPRISES HAVE

8. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
EXISTING
INFRASTRUCTURE
ESTABLISHE
D
PROCESSES
CULTURAL
RESISTANCE
TO CHANGE
INERTIA CAN GET IN THE WAY

9. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
WITH AN EMBEDDED TECHNOLOGY CHALLENGE

10. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
The continuum between entrepreneurial IT and foundation IT
Zielemans, Francois. Digital Manifesto: Principles and Practices for Orchestrating an IT Value Chain
Foundational IT
EntrepreneurialIT
+
+
0
1
2
2

11. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
f (innovation) = (mechanisms * architecture)
(organization * culture)

12. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Mechanisms Defined

13. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Jeff Bezos
Founder and Chief Executive Officer
Amazon.com, Inc.
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.

14. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Mechanism
Example
Working backwards
from the customer
PR Write the Press Release:Think big and
focus on the customer need
Write the FAQ: Customer and
internal stakeholder
Define the user interaction and write
the manual

15. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Architecture – Guardrails with Governance
“We are creating powerful
that allow
thousands of people to
and accomplish
things that would otherwise
be impossible or impractical.”
AWS cloud

16. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Architecture - Microservices
Highly-decoupled
Single purpose
API-basedhttp://

17. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Culture - MVP
MinimumViable Product: What is the smallest thing
you can test to prove the unproven parts of your idea
Start with value hypothesis and growth hypothesis
Run small experiments to see if there is both value and demand
Bias towards many small tests vs. larger, extended ones
Persevere or pivot early based on results
“One accurate measurement is worth more than a thousand expert opinions.”
—Admiral Grace Hopper

18. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
High Velocity Decision Making
…most decisions should probably be
made with somewhere around 70%
of the information you wish you had.
If you wait for 90%, in most cases,
you’re probably being slow.
—Jeff Bezos
Culture – One way and two way doors

19. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Leadership Principals
Culture

20. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Organization - Amazon Achieves Speed and Agility
with Two-PizzaTeams
Small, decentralized
teams are nimble
Own/run what you build

21. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Teams of 8 to 10
Applications
Infrastructure
Leadership
Security
Operations
Organization - Teams Designed Around Products
Achieve speed and agility
with two-pizza teams

22. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
● Adaptive Home
page
Experiences
Two kinds of products:
Services
● Search
● Cart
● Account
● Item
● Advertising
● Promotions
● Digital asset
● Others ...
Navigation
Promotions
Customer Profile Promotion Content Cartridge
Recommendations
AdaptiveHomePage
Search Cart
Digital Asset Digital Asset Digital Asset Digital Asset Digital Asset
Cart
Account
Account
Search
Promotions
Advertising
Item Item Item Item Item Item
Promo Promo Promo Promo Promo
Item Item Item Item Item
Digital Asset Digital Asset Digital Asset
Digital
Asset
Digital Asset Digital Asset
Digital Asset
Organization - ProjectTeams or ProductTeams

23. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
This Change enables …
Cultural
Philosophy
Practices Tools
DevOps

24. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
The
Institutional
YES!
It can also led to failures…

25. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
And success…

26. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
What about technology

27. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
TechnologyTrends
Acceleration in
experimentation
Agile, CI/CD, Infra
as Code
1.5 per second
Server to services
Platform services
and serverless
architectures
US Government
20K data centers,
Cattle not pets
Data
Explosion of
data
Lyft using
Amazon
Redshift
Democratization of
IT
Available to
everyone
Alexa, Amazon
Machine Learning

28. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
AWS
Analytics
Amazon Alexa,
Machine
Learning, IoT
Finra 75 billion
Serverless
Amazon ECS,
AWS Lambda
AWS Lambda like
a herd
Database
Freedom
Amazon RDS,
Aurora, Redshift,
EMR, DynamoDB
Reduce operations
cost and increase
performance
Global
presence
First 5
years: 4
regions
Next 5
years: 7
regions
Announced -
Bahrain, Hong
Kong SAR,
Sweden
More
services
19 services mid-
2012
1430 new
features and
services in 2017

29. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
IT’S NOT JUST AMAZON…

30. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
COMPANIES OF
ALL KINDS ARE
TRANSFORMING

31. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
COMPANIES OF
ALL KINDS ARE
TRANSFORMING

32. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
COMPANIES OF
ALL KINDS ARE
TRANSFORMING

33. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
COMPANIES OF
ALL KINDS ARE
TRANSFORMING

34. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Enterprises Are Achieving Massive Scale
with Cloud Native Architectures
Lambda to replicate
data from mainframe
DB2
to RDS for
PostgresSQL
and DynamoDBreduced the time
to ingest and
process data
for its analytics
pipeline by 97%
Verizon is targeting a
mass migration off of
Oracle to
PostgreSQL.
One project projects
potential
savings of over $1M

35. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

36. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Best Practices
Executive
leadership
ExperimentEducate staff
Cloud center
of excellence
http://amzn.to/enterprise-cloud-best-practices
Engage partners
Put it in writing – Narratives,
PR/FAQs, Manifestos
Tell People –Talk at AWS events,
Github contributions

37. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Ahead in the Cloud
Stephen Orban
Cloud Native Architectures
Tom Laszewski
Innovators Dilemma
Clayton Christensen
Enterprise Strategy Blog
https://aws.amazon.com/blogs/enterprise-strategy
Antifragile
Nassim Nicholas Taleb
The Phoenix Project
Mark Schwartz
Recommended Readings

38. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
r e : I N V E N T
2 0 1 8
L a s V e g a s
N o v e m b e r 2 6 – 3 0 , 2 0 1 8
R e g i s t r a t i o n N o w O p e n

39. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
BOLD

40. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
THE BIGGEST THING IS TO BEGIN.
JUST GET GOING.