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Innovation the Amazon Way Build Innovation into the DNA of Your Company

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Page 1: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Innovation the

Amazon Way

Build Innovation into the

DNA of Your Company

Page 2: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)
Page 3: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

“The culture is what forms the

foundation for all future innovation. If

you break the culture, you break the

machine that creates your products.”

Brian Chesky, Founder

https://medium.com/@bchesky/dont-fuck-up-the-culture-597cde9ee9d4

Page 4: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Culture

Page 5: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Culture

Organization

Architecture

Mechanisms

Page 6: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

2008 2009 2010 2011

Amazon EBS

Amazon EC2

Amazon SNS

AWS Identity & Access Management

AWS Import & Export

Amazon CloudWatch

Amazon EMR

Amazon RDS

Amazon VPC

Auto Scaling

Elastic Load Balancing

Amazon ElastiCache

Amazon SES

AWS CloudFormation

AWS Direct Connect

AWS Elastic Beanstalk

GovCloud

Amazon SWF

Amazon Route 53

Amazon Redshift

Amazon Glacier

Amazon Dynamo DB

Amazon CloudSearch

Amazon EC2

AWS Storage Gateway

Amazon CloudTrail

Amazon CloudHSM

Amazon WorkSpaces

Amazon Kinesis

Amazon Elastic Transcoder

Amazon AppStream

AWS OpsWorks

AWS Data Pipeline

2013 2012

A Rapid Pace of Innovation

Page 7: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Work Backwards from the Customer

Page 8: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

1. PRESS RELEASE

Page 9: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

1. PRESS RELEASE

2. FAQ

Page 10: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

1. PRESS RELEASE

2. FAQ

3. USER MANUAL

Page 11: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Loosely coupled.

Hardened APIs with good documentation.

Page 12: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

2 PIZZA TEAMS

Page 13: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)
Page 14: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

“If you want to increase

innovation, you have to

lower the cost of failure.”

Joi Ito

Director MIT Media Lab

Page 15: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)
Page 16: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

SPEED OF ITERATION

BEATS QUALITY OF ITERATION

Page 17: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Build the Minimum Viable Product

using Agile Development techniques

Continuous Integration

Continuous Deployment

Page 18: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Deploying More Frequently Lowers Risk

Frequent Release Events

“Lean Methodology”

Rare Release Events

“Waterfall Methodology”

Smaller Effort

“Minimized Risk”

Larger Effort

“Increased Risk”

Page 19: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Business Value of Frequent Deployments

75% 90% ~0.001% Reduction in

outages triggered

by software

deployments since

2006

Reduction in

outage minutes

triggered by

software

deployments

Software

deployments

cause an outage

Page 20: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Reinforcing Mechanisms

Page 21: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Remove Friction

Page 22: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Priority Setting

Page 23: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Fight the Monolith

Page 24: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Culture

Organization

Architecture

Mechanisms

Page 25: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Innovation

(mechanism * culture)

f(innovation) = (org * arch)

Page 26: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

INNOVATION IS NOT A GOAL,

IT’S AN ONGOING PROCESS

Page 27: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

“We've had three big ideas at Amazon

that we've stuck with for 18 years, and

they're the reason we're successful:

put the customer first, invent, and be

patient.”

Jeff Bezos

Page 28: Innovation the Amazon Way · Innovation the Amazon Way Build Innovation into the DNA of Your Company ... Architecture Mechanisms . Innovation (mechanism * culture) f (innovation)

Thank you

[email protected]