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Innovation at Amazon
Innovation with Amazon
Digital Innovation Program Overview
Business objectives
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
44
Innovation at Amazon
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
55
Where innovation begins
start with the Customer
and Work Backwards
© 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
1994 Founded
1995 Amazon.com
1998 CDs & DVDs
2006 AWS
2007 Kindle
2011 Video
2012 Groceries
2014 Alexa/Echo
2015 Bookstores
2017 Go
© 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
“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.”
- Jeff Bezos, 2016 letter to shareholders
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
88
Creating the right environment for Innovation
Mechanisms:
Encoded behaviors that turn ideas into
meaningful innovations Working
Backwards methodology, PR-FAQs, and
detailed Narratives
Organization:
We decentralize authority to single-
threaded owners leading small,
empowered ‘two pizza’ teams that own
what they create
Architecture:
Empower innovators through self-service
tools; utilize AWS cloud platform to build
quickly, scale fast and minimize costs of
failure
Culture:
Hire builders & manage against our 14
Leadership Principles, Think Big &
invest early and accept failure as a
critical part of the innovation process
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
99
A mechanism is a complete process….
Working Backwards
1
2 3
4
5
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
1010
5 Working Backwards Questions
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
1111
Working Backwards
Mechanism
Customer
Press
Release
FAQ
Visuals
© 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Innovation begins with the
Customer, then work
backwards
© 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
We revise, and
make the idea better
with each iteration
“Done correctly, the Working Backwards process is a
huge amount of work. But, it saves you even more
work later. The Working Backwards Process is not
designed to be easy, it’s designed to save huge
amounts of work on the backend, and to make sure
we’re actually building the right thing.
”Jeffrey P. Bezos
Founder and Chief Executive Officer
Amazon.com, Inc.
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
The Working Backwards
is a Mechanism
that enables Everyone
to Innovate in
the Authenthic Amazon
way
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
1919
Innovation with Amazon
19
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
2020
Interested in Amazon’s approach to Innovation?
EXPLORE Culture of innovation
at Amazon and Identify the Busienss
Challenge
DEFINE a new product, service,
or experience that will delight your
customers; start with the customer
and work backwards
BUILD a prototype in the
cloud to bring your new digital
offering to life; test it with your
customers
1 2 3
Let’s partner to invent something your customers will love, fast
AWS Digital Innovation Program
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark
Bias for
Action
Deliver
Results
Learn &
Be Curious
Customer
Obsession
Working
Backwards
Articulate customer
Innovation via
PR/FAQ/Visuals
Working
Backwards
Session
Innovation at
Amazon
EXECUTIVE REVIEW EXECUTIVE REVIEWEXECUTIVE REVIEWTODAY
Think Big
Identify end-
customer & end-
customer need /
opportunity
PR/FAQ review
Visuals
Deliver innovation at
scale with AWS
Digital Innovation Program
1-3 days 5-30 days3-5 hrs
~ 2 months~ 1 month
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
2222
Define- Amazon Innovation Workshop
1 or 2 Days Working Backwards Workshop
with 7-10 attendees
GOAL:
1. Define a new digital product vision using Amazon´s Working
Backwards
2. Draft a Press Release (PRFAQ) format
3. Draft Business Model
Problem or opportunity
Press Release
Diverge
Converge
Location: Amazon office in Europe (e.g Milan. Berlin, Paris or Madrid)
Typical attendees: Business leaders/ stakeholders such as CMO, COO, CDO, Head of
Innovation/ Product Design / Digital Strategy, Business Development Managers, Digital
Project / Marketing Managers & and Customer Service Managers ( 70% Business 30 % IT)
Duration: 1 day (Required: commitment & preparations)
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
2323
Breakfast Introduction to the Day 8:00 – 8:30
Re-frame problem/opportunity 8:30 – 9:00
Recap of Explore Session 9:00 – 10:00
Start with the customer 10:00 – 10:30
Break 10:30 – 10:45
Think Big / What if? 10:45 – 11:15
Generate ideas / Crazy 8s 11:15 – 12:00
Lunch 12:00 – 12:30
Ideation (diverge) / Voting (converge) 12:30 – 1:30
Identify most important customer benefit 1:30 – 2:00
Break 2:00 – 2:15
Outline PR-FAQ 2:15 – 3:15
Plan prototype phase 3:15 – 4:00
Reflection, summary, and next steps 4:00 – 4:30
PROBLEM OR
OPPORTUNIT
Y
PR
(outline)
Work backwards
Focus on
customer
Digital Innovation Workshop (sample agenda)
© 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Focus
on the
customer
Work
backwards
Press
Release
Outline
Amazon
Innovation
Workshop
Final PR/FAQ
How would a
disrupter approach
this problem?
How does this raise
the bar for our
customers?
Circulate for
feedback &
signoff
TODAY +14 DAYS 1+ MONTH
Note: Timeline based on timely edits, feedback, committed resources – from both customer and AWS
Problem /
opportunity
Rapid prototyping
Iterating beyond the workshop
Public Statements
How to make a Program Successful
Customer
1. Executive sponsorship
C-level business leader LoB head, and senior IT leaders
2. Specific Business Challenge identified
problem or opportunity identified
3. Commitment to Engage
in AWS Digital Innovation Program
engagement (1-3months)
3. Good Faith in AWS
as the platform of choice for prototype and scaled
implementation
4. Public Reference
at the end of the Workshop
Amazon
1.Innovation mechanisms & experience
Guided use of Amazon innovation methods and approach
2. Plan, drive, & facilitate innovation engagement
going from a specific problem/ opportunity to a new digital solution(s)
3. Prototype capability & support
to build and deploy breakthrough solutions (1-5 weeks after a refined
PRFAQ is complete) Via internal resources and Partners
Let’s Start
Work Hard, Have Fun, Make History
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
30
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
30
Thank You
AMAZON CONFIDENTIAL

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Amazon's Approach to Innovation

  • 1. Innovation at Amazon Innovation with Amazon Digital Innovation Program Overview Business objectives
  • 2. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 44 Innovation at Amazon
  • 3. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 55 Where innovation begins start with the Customer and Work Backwards
  • 4. © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 1994 Founded 1995 Amazon.com 1998 CDs & DVDs 2006 AWS 2007 Kindle 2011 Video 2012 Groceries 2014 Alexa/Echo 2015 Bookstores 2017 Go
  • 5. © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. “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.” - Jeff Bezos, 2016 letter to shareholders
  • 6. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 88 Creating the right environment for Innovation Mechanisms: Encoded behaviors that turn ideas into meaningful innovations Working Backwards methodology, PR-FAQs, and detailed Narratives Organization: We decentralize authority to single- threaded owners leading small, empowered ‘two pizza’ teams that own what they create Architecture: Empower innovators through self-service tools; utilize AWS cloud platform to build quickly, scale fast and minimize costs of failure Culture: Hire builders & manage against our 14 Leadership Principles, Think Big & invest early and accept failure as a critical part of the innovation process
  • 7. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 99 A mechanism is a complete process…. Working Backwards 1 2 3 4 5
  • 8. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 1010 5 Working Backwards Questions
  • 9. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 1111 Working Backwards Mechanism Customer Press Release FAQ Visuals © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Innovation begins with the Customer, then work backwards
  • 10. © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. We revise, and make the idea better with each iteration
  • 11. “Done correctly, the Working Backwards process is a huge amount of work. But, it saves you even more work later. The Working Backwards Process is not designed to be easy, it’s designed to save huge amounts of work on the backend, and to make sure we’re actually building the right thing. ”Jeffrey P. Bezos Founder and Chief Executive Officer Amazon.com, Inc.
  • 12. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. The Working Backwards is a Mechanism that enables Everyone to Innovate in the Authenthic Amazon way
  • 13. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 1919 Innovation with Amazon 19
  • 14. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 2020 Interested in Amazon’s approach to Innovation? EXPLORE Culture of innovation at Amazon and Identify the Busienss Challenge DEFINE a new product, service, or experience that will delight your customers; start with the customer and work backwards BUILD a prototype in the cloud to bring your new digital offering to life; test it with your customers 1 2 3 Let’s partner to invent something your customers will love, fast AWS Digital Innovation Program
  • 15. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Bias for Action Deliver Results Learn & Be Curious Customer Obsession Working Backwards Articulate customer Innovation via PR/FAQ/Visuals Working Backwards Session Innovation at Amazon EXECUTIVE REVIEW EXECUTIVE REVIEWEXECUTIVE REVIEWTODAY Think Big Identify end- customer & end- customer need / opportunity PR/FAQ review Visuals Deliver innovation at scale with AWS Digital Innovation Program 1-3 days 5-30 days3-5 hrs ~ 2 months~ 1 month
  • 16. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 2222 Define- Amazon Innovation Workshop 1 or 2 Days Working Backwards Workshop with 7-10 attendees GOAL: 1. Define a new digital product vision using Amazon´s Working Backwards 2. Draft a Press Release (PRFAQ) format 3. Draft Business Model Problem or opportunity Press Release Diverge Converge Location: Amazon office in Europe (e.g Milan. Berlin, Paris or Madrid) Typical attendees: Business leaders/ stakeholders such as CMO, COO, CDO, Head of Innovation/ Product Design / Digital Strategy, Business Development Managers, Digital Project / Marketing Managers & and Customer Service Managers ( 70% Business 30 % IT) Duration: 1 day (Required: commitment & preparations)
  • 17. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 2323 Breakfast Introduction to the Day 8:00 – 8:30 Re-frame problem/opportunity 8:30 – 9:00 Recap of Explore Session 9:00 – 10:00 Start with the customer 10:00 – 10:30 Break 10:30 – 10:45 Think Big / What if? 10:45 – 11:15 Generate ideas / Crazy 8s 11:15 – 12:00 Lunch 12:00 – 12:30 Ideation (diverge) / Voting (converge) 12:30 – 1:30 Identify most important customer benefit 1:30 – 2:00 Break 2:00 – 2:15 Outline PR-FAQ 2:15 – 3:15 Plan prototype phase 3:15 – 4:00 Reflection, summary, and next steps 4:00 – 4:30 PROBLEM OR OPPORTUNIT Y PR (outline) Work backwards Focus on customer Digital Innovation Workshop (sample agenda)
  • 18. © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Focus on the customer Work backwards Press Release Outline Amazon Innovation Workshop Final PR/FAQ How would a disrupter approach this problem? How does this raise the bar for our customers? Circulate for feedback & signoff TODAY +14 DAYS 1+ MONTH Note: Timeline based on timely edits, feedback, committed resources – from both customer and AWS Problem / opportunity Rapid prototyping Iterating beyond the workshop
  • 20. How to make a Program Successful Customer 1. Executive sponsorship C-level business leader LoB head, and senior IT leaders 2. Specific Business Challenge identified problem or opportunity identified 3. Commitment to Engage in AWS Digital Innovation Program engagement (1-3months) 3. Good Faith in AWS as the platform of choice for prototype and scaled implementation 4. Public Reference at the end of the Workshop Amazon 1.Innovation mechanisms & experience Guided use of Amazon innovation methods and approach 2. Plan, drive, & facilitate innovation engagement going from a specific problem/ opportunity to a new digital solution(s) 3. Prototype capability & support to build and deploy breakthrough solutions (1-5 weeks after a refined PRFAQ is complete) Via internal resources and Partners
  • 21. Let’s Start Work Hard, Have Fun, Make History
  • 22. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 30 © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 30 Thank You AMAZON CONFIDENTIAL