AWS Initiate Day Mexico City | La Cultura de la innovación en Amazon
•Descargar como PPTX, PDF•
0 recomendaciones•219 vistas
La Cultura de la innovación en Amazon: Impulsando el éxito de los clientes. Ponente: Roberto de la Mora
Recomendados
Recomendados
Más contenido relacionado
Similar a AWS Initiate Day Mexico City | La Cultura de la innovación en Amazon
Similar a AWS Initiate Day Mexico City | La Cultura de la innovación en Amazon (20)
Más de Amazon Web Services LATAM
Más de Amazon Web Services LATAM (20)
Último
Último (13)
AWS Initiate Day Mexico City | La Cultura de la innovación en Amazon
- 1. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. La Cultura de Innovación de Amazon: Impulsando el Éxito de los Clientes
- 2. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. La Cultura de Innovación de Amazon Habilitando la Innovación para Todos Roberto D. De La Mora Principal - Business Development LATAM
- 3. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Jeff Bezos CEO, Amazon.com “La invención viene en muchas formas y escalas. Las mas radicales y transformativas de las invenciones son con frecuencia aquellas que apoderan a otros para desatar su creatividad – a perseguir sus sueños.”
- 4. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 5. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. « …la innovación es ahora reconocida como el ingrediente individual mas importante de una economía moderna… en resumen, es la innovación mas que la aplicación de capital y mano de obra – lo que hace al mundo girar»
- 6. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. NUESTRA MISIÓN Queremos ser la compañía mas centrada en el cliente del mundo
- 7. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. NUESTRO COMPROMISO Le hacemos la vida fácil a nuestros clientes
- 8. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. DONDE INICIA LA INNOVACIÓN Comenzamos con el cliente y trabajamos hacia atrás
- 9. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 10. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 11. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 12. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 13. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 14. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Nuestras creencias para construir una cultura de innovación »Obsesión por los clientes “Inicia cada proceso con el cliente y trabaja hacia atrás” »Pensamiento de largo plazo “Necio en la visión, flexible en los detalles” »Si quieres inventar, tienes que estar dispuesto a fallar “Estamos dispuestos a meternos en un montón de callejones obscuros para ocasionalmente encontrar algo que realmente funciona” »Estar dispuesto a ser incomprendido por mucho tiempo “Estamos muy cómodos siendo incomprendidos”
- 15. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. El Circuito de Crecimiento de Amazon Valor Selección Conveniencia
- 16. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 17. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 18. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. NECIO EN LA VISIÓN Pero flexible con los detalles
- 19. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 20. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. VOLUNTAD DE SER INCOMPRENDIDO Por un largo plazo
- 21. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 22. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. » Mecanismos Proceso de Trabajar hacia Atrás (Working Backwards Process) Comunicado de Prensa (Press Release) Preguntas Frecuentes (FAQ) & Visualizaciones » Arquitectura Arquitecturas basadas Aplicaciones “suavemente” acopladas Plataformas de auto-servicio – Sin “gatekeepers” » Cultura Nuestra Gente: constructores, innovadores, empresarios Nuestras Creencias: Los Principios de Liderazgo de Amazon » Organización Experimentación Equipos de Dos-Pizzas ¿Cómo nos organizamos para innovar?
- 23. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. SIEMPRE TRABAJAR DESDE EL CLIENTE HACIA ATRÁS OBSESIÓN POR EL CLIENTE © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 24. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 25. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Escribir el comunicado de prensa
- 26. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Incluir ambas las FAQ de los Clientes y de los Stakeholders Incluir preguntas difíciles Compartir tu comunicado de prensa tan pronto como sea posible para recabar preguntas FAQs del Cliente – Los clientes hacen las mejores preguntas porque son fundamentales para cualquier experiencia: ¿Cuánto va a costar? ¿Qué tipo de soporte tendré? ¿En dónde puedo encontrar esto? ¿Cómo cancelo esto? FAQs de Stakeholders - ¿Qué te podría preguntar tu jefe? ¿y el jefe de tu jefe?, ¿otros equipos internos?, ¿tus socios de negocios? ¿Qué tecnología base usa? ¿De que se van a quejar los clientes con la primera versión? ¿Cómo esto va a impactar nuestros sistemas? ¿Cuál es el impacto para el negocio? ¿Cómo sabemos la necesidad del cliente? ¿Cómo podríamos lanzar mas rápidamente? ¿Qué es lo que está provocando el mayor debate interno?escribir las FAQ
- 27. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Visualizar la interacción del usuario y escribir el manual
- 28. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. ¿Es opcional el proceso de Trabajar hacia Atrás en Amazon?
- 29. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. » Mecanismos Proceso de Trabajar hacia Atrás (Working Backwards Process) Comunicado de Prensa (Press Release) Preguntas Frecuentes (FAQ) & Visualizaciones » Arquitectura Arquitecturas basadas Aplicaciones “suavemente” acopladas Plataformas de auto-servicio – Sin “gatekeepers” » Cultura Nuestra Gente: constructores, innovadores, empresarios Nuestras Creencias: Los Principios de Liderazgo de Amazon » Organización Experimentación Equipos de Dos-Pizzas ¿Cómo nos organizamos para innovar?
- 30. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. “Tenemos la buena fortuna de contar con un equipo innovador, y una cultura paciente, pionera y obsesionada con el cliente – las mejores innovaciones, grandes y pequeñas, están ocurriendo diariamente en beneficio de los clientes, y en todos los niveles de la organización. Esta distribución descentralizada de invención a lo largo y ancho de la compañía – no limitado a los líderes de mayor jerarquía – es la única manera de tener innovación robusta y de alto rendimiento. Lo que estamos haciendo es retador y divertido – nos toca trabajar en el futuro.” Jeff Bezos Carta anual a los accionistas del 2014
- 31. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Servicios de Amazon.com (en teoría…)
- 32. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Propósito-específico Conexión solo a través de APIs Conectividad vía HTTPS En general “cajas negras” para las otras apps “Microservicios”
- 33. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Plataformas de Auto-Servicio, sin “Gatekeepers” “Estamos creando plataformas de auto-servicio poderosas que permiten a miles de personas experimentar atrevidamente y lograr cosas que de otro modo serían imposibles o imprácticas."
- 34. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. AWS: La plataforma de infraestructura tecnológica mas robusta, y con mas facilidades
- 35. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
- 36. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Innovación en Sector Público impulsada por AWS 70PB de datos de la Tierra Analiza 75PB de transacciones diariamente Migración de TI Segura, Sencilla, y Económica Estrategia “Cloud First” y colaboración entre Fin/TI Servicios de misión crítica escalables – Innovación en AI Alta disponibilidad, confiabilidad y escalabilidad
- 37. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. » Mecanismos Proceso de Trabajar hacia Atrás (Working Backwards Process) Comunicado de Prensa (Press Release) Preguntas Frecuentes (FAQ) & Visualizaciones » Arquitectura Arquitecturas basadas Aplicaciones “suavemente” acopladas Plataformas de auto-servicio – Sin “gatekeepers” » Cultura Nuestra Gente: constructores, innovadores, empresarios Nuestras Creencias: Los Principios de Liderazgo de Amazon » Organización Experimentación Equipos de Dos-Pizzas ¿Cómo nos organizamos para innovar?
- 38. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Cada uno de nosotros somos un líder, con una misión.
- 39. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. » Mecanismos Proceso de Trabajar hacia Atrás (Working Backwards Process) Comunicado de Prensa (Press Release) Preguntas Frecuentes (FAQ) & Visualizaciones » Arquitectura Arquitecturas basadas Aplicaciones “suavemente” acopladas Plataformas de auto-servicio – Sin “gatekeepers” » Cultura Nuestra Gente: constructores, innovadores, empresarios Nuestras Creencias: Los Principios de Liderazgo de Amazon » Organización Experimentación Equipos de Dos-Pizzas ¿Cómo nos organizamos para innovar?
- 40. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. The Institutional YES!
- 41. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Aprender de las Fallas…
- 42. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Descomponer problemas en “Primitivos” Enfoque en una sola línea de trabajo Habilita equipos Auto-Dirigidos Impulsa la Propiedad y la Autonomía
- 43. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. INNOVACIÓN EN EL BORDE Habilitar todos para innovar
- 44. © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark
- 45. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Traducir Lenguaje de Señas a Voz • Guantes con Bluetooth • Graba la posición de las manos y el movimiento • Usa aprendizaje profundo para asociar gestos con palabras • Texto a Voz “SignAloud”
- 46. © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark
- 47. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. EQUACIÓN DE INNOVACIÓN DE AMAZON 𝑓 𝑖 = 𝑚𝑒𝑐ℎ𝑎𝑛𝑖𝑠𝑚𝑜𝑠 ∗ 𝑎𝑟𝑞𝑢𝑖𝑡𝑒𝑐𝑡𝑢𝑟𝑎 ^ 𝑐𝑢𝑙𝑡𝑢𝑟𝑎 ∗ 𝑜𝑟𝑔𝑎𝑛𝑖𝑧𝑎𝑐𝑖ó𝑛
- 48. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Innovación manifestada en muchos dominios diferentes Desarrollo de Drones Compas Avanzadas Kindle Entetenimiento en Casa Entrega de Perecederos Streaming Automatización del Hogar Cómputo en la Nube
- 49. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. FINAL RECOMMENDATIONS a. Take control. Lead the disruption. b. Deploy technology to break constraints. c. Lose out on efficiency and go for effective disruption. d. Don’t be terrified, the odds are better than you think! e. We’re here to help, work backwards from your customer outcomes. Innovation is everyone’s responsibility
- 50. Tuvimos tres ideas en Amazon con las cuales nos hemos quedado por mas de 20 años y que son la razón de nuestro éxito: poner al cliente primero, inventar, y ser paciente. Jeffrey P. Bezos Founder and Chief Executive Officer Amazon.com, Inc.
- 51. © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. ¡Gracias!
Notas del editor
- Customers often ask me how can their companies innovate like Amazon. From its humble beginnings as the "World's Largest Bookstore," Amazon has not only innovated across e-commerce and adjacent segments within e-commerce, but also introduced new businesses that seem (and sometimes are) unrelated to e-commerce. Over the years Amazon has gotten very good at taking hard problems (often times esoteric), and made them easier for the masses to use. AWS is a great example of that. We have taken something so central and specialized as operating and managing technology data center, and pushed to the edges in form of a utility. When technology becomes a utility, it becomes ubiquitous, and therefore, more people can participate in the innovation.
- Let me begin with a quote by Jeff Bezos, which demonstrates how AWS thinks about fostering innovation for others. This can be teams within Amazon but then more importantly, developers, businesses, and enterprises outside of Amazon.
- Amazon has been digital company since day one, and from when we publically launched in 1997, Jeff wrote in our shareholder news letter that “though personalization, online commerce will accelerate the very process of discovery. Amazon.com uses the Internet to create real value for its customers“
- The economists realized there could be only one answer – innovation. It had to be a combination of new scientific knowledge, rapid technological progress through R&D and patent registration, rampant entrepreneurship in society, and the emergence of new networks of firms working in industry clusters and cities. It was innovation – in the form of new technologies, processes, products, services, and business models – that was chiefly responsible for spurring the higher levels of productivity which were driving economic growth. See more at: http://www.innovationexcellence.com/blog/2015/02/03/triumph-of-the-innovation-economy-part-7/#sthash.SISJe5fz.dpuf This conclusion is now undeniably supported by empirical evidence around the world, showing the clear statistical link between innovative activity and economic performance in all kinds of economies at various periods of time. – See more at: http://www.innovationexcellence.com/blog/2015/02/03/triumph-of-the-innovation-economy-part-7/#sthash.SISJe5fz.dpuf.
- Our mission is broad, which leaves the kinds of opportunities we can get into broad. We want to be a customer centric company, and that can take many shapes, forms, and sizes.
- But our mission is rooted in our commitment, which is manifested by focusing on bringing ease to customers. Making their lives easier.
- And how do we do this ? We start with the customer and work backwards. That is where innovation comes from. It’s not only about being close to customers and talking about what they like and need, but it’s also about inventing on their behalf. There are many advantages to a customer-centric approach, but here’s the big one: customers are always beautifully, wonderfully dissatisfied, even when they report being happy and business is great. Even when they don’t yet know it, customers want something better, and your desire to delight customers will drive you to invent on their behalf. No customer ever asked Amazon to create the Prime membership program, but it sure turns out they wanted it
- What does Amazon know about Innovation?; - Not a Young Company. Founded in 1994, 24 years old - Not a Small Company. More than 220k employees - Not a Startup~$177B (2017) in revenue across 190 countries - Many dimensions – retail, AWS, Audible, IMDB, Alexa, Fire TV Picture of original fulfillment center where “pickers” walked along aisles selecting products for order. Largest internet retailer Books Kindle Prime May Day Video, Golden Globes best comedy for Transparent Fulfillment centers (8th generation) Prime Air
- Supply Chain Innovation 8th generation fulfillment center 30,000 kiva robots deployed globally, from small units (picture) that can lift 450kg to larger units that can lift pallets of 1350kg No more walking – 53% improvement in utilization of floor space in fulfillment center http://www.businesswire.com/news/home/20141130005031/en/Amazon-Unveils-Eighth-Generation-Fulfillment-Center
- Since we introduced Kiva robots, we have hired 300,000 people with 100,000 robots
- #1 search engine for retail products in North America. Why? Customer choice – put customer first. User reviews – in saturated markets user reviews are consider one of the highest trusted mechanisms. Intelligence to surface best reviews for customers. Overview of Alexa and Amazon Echo – ecosystems approach Andy Jassy – “Once you’ve used an Echo a few times, touching a smart phone feels inconvenient” The Amazon.com platform used to be a monolithic deployment. Hard to change, error prone. Amazon realized early on that this needed to change and championed a microservices architecture before all the cool kids started calling it “microservices”. There are over 200 service calls made to present the home page. As an example there is a service team that just looks after the presentation of the customer name – ie “Hello, CM” – and the interfaces that support this. The importance of the home page. The default search engine for consumers looking for retail products in North America – why? The credibility of the user reviews which are provided. We use machine learning to surface the best reviews to make it easier for customers to make informed decisions quickly Choice. Listing third party products ahead of Amazon stocked items if the pricing, or shipping is better – customer obsession
- Amazon Go
- And this approach of starting with the customer to enable innovation is rooted in a culture within our company which is about four concepts: Customer Obsession Long Term Thinking Inventive mind set that is okay with failure And willingness to try new things, and therefore be misunderstood
- Critical to our culture is our belief in focusing on the things that matter most to customers. Independent of the industry, customer segment, or business, consumers, developers, businesses, and large enterprises want Value Selection Convenience And these are requirements that don’t change. In fact, if one focuses on ensuring innovation is being exercised in each of these areas, one creates a virtuous, closed loop flywheel, and most, if not all of Amazon’s businesses are rooted in this growth flywheel. Value is delivered with more selection, and selection improves experience drives more traffic. More traffic attracts more partners that want to participate in the ecosystem, and therefore they add even more selection. That creates growth. And growth helps drive usage which enables one to drive lower cost structures with scale. That gives our businesses structural advantages, which then enable use to take actions like dropping prices periodically, and customers love it when we make products and services more cost-effective.
- Prime is a great example of how Amazon continues to innovate on value, selection and convenience. And as we add more either of these dimensions, they create a compounded effect in helping the others. Over the years Prime has not only expanded in the selection of items that fall under this program, but the value it brings to consumers, and more so the convenience of the services. Look at how from 2007 to 2015 our delivery mechanism was (and continues to be) rooted in our supplier network (UPS, FedEx). But solving the problem of last mile delivery so that something like Prime Now (which is to deliver in 2 hours or 1 hour) is not easy to solve with the current supplier approach. So this is where Amazon innovated with a new business model…which I will talk about next.
- To make Prime Now work in Seattle, amazon announced a new, innovative program called Amazon Flex. This new app-based program empowers individuals to sign-up, be their own boss and deliver Prime Now orders through an easy-to-use mobile application. These individuals work when they want, where they want, as much or as little as they want, based on available volume, earning money their way. We are currently operating Amazon Flex in Seattle with plans to expand soon to other cities where Prime Now is offered. We are seeing great results through Amazon Flex, with participants in Seattle earning on average more than $25 per hour. But for this we had to think out the box, and as we see this make more sense for our business, we are likely to expand it in other markets.
- But innovation is hard, and therefore one has to be stubborn on vision, while being flexible with details. In other words be firm on the “why,” and allow some level of flexibility with respect to how and what…at least for some period of time, up until the point it makes sense to make certain processes or technology choices more firm. Therefore, some level of consistency and control in the how and what that subscribe to well established principles gets developed over time.
- First example is the Kindle. Many people questioned the first generation of the kindle. And it was quite big and heavier than most books. But we stayed focus on our vision, and over time created a convenient way for people to read more books, and now have the Paperwhite version.
- But if you are going to try new things, you have to be comfortable with being misunderstood.
- Or the other example is AWS. In 2006 we started the business, and Wall Street and others said it was a risky bet. But 10+ years later, it is the business of AWS that Wall Street loves.
- So we have mechanisms, we have the tool set, we have the people that operate innovation. Now we need to ensure they have the right organizational ethos and setup to innovate.
- Purpose: Answering the 5 Questions within your Working Backwards doc Time: 3 MINS This is the Lanyard card that everyone at Amazon gets. the purpose is to give you customer focus. There are 5 questions. Use these 5 questions as you start thinking about an idea before the PR – Can we answer all these questions Once you have solid answers as a team, then start writing. Most important question is the first – who is the customer? If you can’t answer, you shouldn’t move forward. What is the customer problem or opportunity? After you do this a few times, you realize that the third question is the hardest to get right, kind of surprising. Is the most important customer benefit clear? (Value, Selection, Convenience? Trust?) Trust—this is most important: hard to earn, easy to lose This is all about getting FOCUS. How do you know what customers need or want? What data do you have – whether it’s numbers or qualitative What does the customer experience look like? This is where you start to describe your solution
- FAQ - 4 MINS Presenter comments: The ’Frequently Asked Questions’ provide details and data of your idea. Gather questions as you are reviewing your PR with different people and stakeholders. FAQs will be several pages long and can be quite detailed. There are two types of FAQ questions – customer FAQ and Stakeholder FAQ. Customer FAQs - customers ask the best questions because they are fundamental to any experience: How much will this cost? What type of support will I get? Where can I find this? How do I cancel this? Stakeholder FAQs: What will your VP, partner teams, internal Amazon resources ask? Highlight that every time the document is reviewed they will likely get a few more FAQs. Also FAQs can be quite robust depending on the teams effected. What in the underlying technology? What will customers be most disappointed about in your initial release? How does this impact current systems? What is the business impact? How do we know what the customer needs? How can we launch this more quickly? What is provoking the most internal debate? Hard questions: Identify the hard questions early in the process. What are the questions you are hoping won’t be asked? What questions do you not yet know the answer to? How could this fail? Why should we do X and not Y? What are the risks? If a customer were to write to Jeff B about this launch, what will they say? Notes for presenter: • Point to FAQs wiki – many listed there are used by the Steam • Call out the need to list ‘hard questions’ in the FAQ • Your audience will likely include many new Amazonians,
- Rough idea – rough drawing Match fidelity to maturity of your idea Don’t be afraid to be provocative Create discussion Mechanisms Work backwards from the customer Narrative process Weekly Business Review (WBR) Organization Leadership Reviews (OLR) Build upon existing services Single-threaded teams Measure / Iterate No One way doors VISUALS – 2 MINS Presenter comments: Third component is visuals – Don’t worry about being a good artist. It is fast and frugal, is an opportunity to talk about the overall customer experience. When your idea is rough, your drawing should be rough. Stay away from high fidelity mockup early on. If you go high fidelity too soon – the conversations are about the wrong things. The purpose is not to get sign off, but to have discussion and debate. To make sure you’re focusing on the right things for customers. If you are not a great artist, use tools like the whiteboard, PPT, Keynote, or storyboarding software. There are also great prototyping tools you can use for high fidelity mockups. ASK: What are some other tools that people like to use for creating visuals? Notes for presenter: Everyone can help communicate their idea visually, not just designers. Visuals could simply be a picture of some sketches from a whiteboard. Don’t get caught up in the fidelity of the visuals – rough visuals early on is GOOD
- Switch to Video
- So we have mechanisms, we have the tool set, we have the people that operate innovation. Now we need to ensure they have the right organizational ethos and setup to innovate.
- Work backwards from the customer Narrative process Weekly Business Review (WBR) Organization Leadership Reviews (OLR) Build upon existing services Single-threaded teams Measure / Iterate No Two way doors
- AWS has 120+ services that offer so many capabilities from compute, storage, to CDN. And then to big data, IoT, messaging, etc. This broad and deep toolset enables our business within Amazon and our ecosystem of partners and customers to innovate faster. The cloud offers a lot of very well known benefits. Many companies are looking at the cloud as a way to double down on investments that support the core mission of the company and differentiate it from competitors. As a result, they are looking at new ways to innovate that allow for more experimentation and more customer engagement. And they are doing it in a way that meaningfully reduces their security and compliance risks.
- So we have mechanisms, we have the tool set, we have the people that operate innovation. Now we need to ensure they have the right organizational ethos and setup to innovate.
- This is underpinned on a consistent belief in what are the LPs that make people successful, and that is based on the 14 LPs of amazon.com Leadership Principles are authentic and represent who the company really is. They are not merely aspirational They are a very practical reference to help in most situations where trade-offs, prioritization, strategy development, or key scenarios are being developed. Bottom up – used every day as a shared vocabulary on how to communicate and get stuff done Amazon had what many companies have. We had a mission, vision, and values. And at some point, we did away with that and instead organized around 14 leadership principles. But what is really amazing is that I’ve never worked at a company where every employee took the principles so seriously, where the principles directed the day to day activity and decision making of employees at every level, where employees held each other accountable, and where the leadership principles had such an incredibly impactful role in recruiting and hiring.
- So we have mechanisms, we have the tool set, we have the people that operate innovation. Now we need to ensure they have the right organizational ethos and setup to innovate.
- This is from the 2015 letter to shareholders
- But innovation is hard, and there are failures that we should be mindful of. At Amazon we learn from our failures, and then look take those learnings and evolve. http://www.forbes.com/sites/ryanmac/2016/04/05/jeff-bezos-calls-amazon-best-place-in-the-world-to-fail-in-shareholder-letter/#7a24121562f4 Jeff Bezos Letter to Shareholders 2016: “One area where I think we are especially distinctive is failure. I believe we are the best place in the world to fail (we have plenty of practice!), and failure and invention are inseparable twins. To invent you have to experiment, and if you know in advance that it’s going to work, it’s not an experiment. Most large organizations embrace the idea of invention, but are not willing to suffer the string of failed experiments necessary to get there. Outsized returns often come from betting against conventional wisdom, and conventional wisdom is usually right. Given a ten percent chance of a 100 times payoff, you should take that bet every time. But you’re still going to be wrong nine times out of ten. We all know that if you swing for the fences, you’re going to strike out a lot, but you’re also going to hit some home runs. The difference between baseball and business, however, is that baseball has a truncated outcome distribution. When you swing, no matter how well you connect with the ball, the most runs you can get is four. In business, every once in a while, when you step up to the plate, you can score 1,000 runs. This long-tailed distribution of returns is why it’s important to be bold. Big winners pay for so many experiments. AWS, Marketplace and Prime are all examples of bold bets at Amazon that worked, and we’re fortunate to have those three big pillars. They have helped us grow into a large company, and there are certain things that only large companies can do. Invention Machine We want to be a large company that’s also an invention machine. We want to combine the extraordinary customer-serving capabilities that are enabled by size with the speed of movement, nimbleness, and risk-acceptance mentality normally associated with entrepreneurial start-ups. Can we do it? I’m optimistic. We have a good start on it, and I think our culture puts us in a position to achieve the goal. But I don’t think it’ll be easy. There are some subtle traps that even high-performing large organizations can fall into as a matter of course, and we’ll have to learn as an institution how to guard against them. One common pitfall for large organizations – one that hurts speed and inventiveness – is “one-size-fits-all” decision making. Some decisions are consequential and irreversible or nearly irreversible – one-way doors – and these decisions must be made methodically, carefully, slowly, with great deliberation and consultation. If you walk through and don’t like what you see on the other side, you can’t get back to where you were before. We can call these Type 1 decisions. But most decisions aren’t like that – they are changeable, reversible – they’re two-way doors. If you’ve made a suboptimal Type 2 decision, you don’t have to live with the consequences for that long. You can reopen the door and go back through. Type 2 decisions can and should be made quickly by high judgment individuals or small groups. As organizations get larger, there seems to be a tendency to use the heavy-weight Type 1 decision-making process on most decisions, including many Type 2 decisions. The end result of this is slowness, unthoughtful risk aversion, failure to experiment sufficiently, and consequently diminished invention. 1 We’ll have to figure out how to fight that tendency. And one-size-fits-all thinking will turn out to be only one of the pitfalls. We’ll work hard to avoid it… and any other large organization maladies we can identify.
- But we need smaller teams that came move fast with the mechanisms and the technology. Jeff created this concept of Two Pizza Teams in 2004-2005.
- Innovation at the edge of the organization and society is empowering. Democratize innovation and intrapreneurship.
- This is an inspiring example of innovation. Anyone know these two guys? I didn’t either until a couple of weeks ago. And it proves that we are accustomed to think innovation comes from companies with big budgets and lots of intellectual capital. But the truth is there are no borders to innovation. And great innovations can originate from two students that share a passion around invention and problem solving. And you don’t need a research grant for that, just $10,000. Two 20-year-olds whose friendship started in a college technology lab are getting national recognition for an invention that could revolutionize communication. University of Washington sophomores Navid Azodi and Thomas Pryor won the 2016 Lemelson-MIT student prize for an idea they had. “The idea initially came out of our shared interest in invention and problem solving. But coupling it with our belief that communication is a fundamental human right, we set out to make it more accessible to a larger audience.”
- Their invention, “SignAloud,” is a pair of gloves that can recognize hand gestures that correspond to words and phrases in American Sign Language. Each glove contains sensors that record hand position and movement and send data wirelessly via Bluetooth to a central computer. The computer looks at the gesture data through various sequential statistical regressions, similar to a neural network. If the data match a gesture, then the associated word or phrase is spoken through a speaker.
- Innovation like these can empower those that are born mute. Imagine all the innovative thoughts within those minds that are waiting to be communicated and manifested. It’s like we created recursive innovation algorithm… So while software is “eating the world,” when applied with creative and thoughtful innovation, it helps change the lives of people….even the youngest amongst us.
- So let’s take those four aspects, and create an innovation equation for you.
- This is the equation that is empowering so many exciting things here at Amazon.
- I leave you with a simple way of looking the path forward.