© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

Eric Tachibana

November 29, 2016

Leading Enterprise Innovation

At Startup Speed

ENT207

at the heart of new product

dev is one sad facthttps://www.flickr.com/photos/striatic/

85%of new products #FAIL

- Harvard Business Review

that’s trillions

of dollars in

wasted

innovation

each year

https://www.flickr.com/photos/japokskee/

worse yet – during

market disruption new

product dev is the only

safe havenhttps://www.flickr.com/photos/a_sorense/

https://www.flickr.com/photos/68751915@N05/

what if we could reduce

waste by even 10%

or innovate as fast as

startups?

https://www.flickr.com/photos/rainbirder/

THE GOOD NEWS!

we have proven tools to

reduce waste

https://www.flickr.com/photos/japokskee/https://www.flickr.com/photos/vinothchandar/

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

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/

Disruption

“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

Principles of Lean Innovation

Accept that you know nothingNeither you, nor the customer, may know what the

product requirements are until after they’ve played with the product.

Test SmartFailure-friendly firms don’t fail—they either confirm or

reject hypotheses.

Measure SmartLean enterprises measure the right things.

Iterate at SpeedLean enterprises don’t throw good money after bad. But neither are they fickle. Whatever the case, they pivot or

persevere quickly.

accept that you know nothing

1

The problem is

not the wall

between

engineering and

marketing

https://www.flickr.com/photos/79286287@N00/

The problem is

not the wall

between

engineering and

marketing

The problem is

the wall between

you and your

customer

You don’t

know jack

about what

the customer

wants

https://www.flickr.com/photos/helga/

in fact neither do they

https://www.flickr.com/photos/helga/https://www.flickr.com/photos/yamagatacamille/

So how do most firms

respond to all this

uncertainty?

50-page business plan

Capital Budgeting

3-month Requirements

Analysis

Functional Documentation

9-month Development

Project

50-page business plan

Capital Budgeting

3-month Requirements

Analysis

Functional Documentation

9-month Development

Project

Cross Fingers

what’s the alternative?

test smart

2

innovators love failure!

innovators love failure!

innovators love to experiment

https://www.flickr.com/photos/marsdd/

experiments confirm or reject

hypotheses. failure is not an option

innovators experiment using minimum

viable products (MVP)

MVPs like “concierge services” can

even be pretend!

https://www.flickr.com/photos/havoc315/

Product Development

MVP

Time

Sca

le

Product Development

MVP

Time

Sca

le

Innovation & Iteration

MVP

Time

Sca

le

Innovation & Iteration

Time

Sca

le

Started: burbn, location-based mobile

app. Photo sharing is just one feature

Innovation & Iteration

Time

Sca

le

Started: burbn, location-based mobile

app. Photo sharing is just one feature

Now: rewritten as

photo app. Sold to FB

for 1bn

Innovation & Iteration

Time

Sca

le

Started: odeo, site to create & share

podcasts

Innovation & Iteration

Time

Sca

le

Started: odeo, site to create & share

podcasts

Now: micro-blogging,

500M users, IPO,

>18Bn market cap

MVPs do not increase

certainty - they reduce low-

hanging uncertainty

remember, just reducing

failed products from 90% to

80% is already a big deal

measure smart

3

iterate at speed

4

pivot versus persevere

de-risking value > experiment cost

So how is all this relevant

for the cloud?

11.6s

Average time

between

deployments

(weekday)

1,079

Max number of

deployments in a

single hour

(or approx every

3 seconds)

30,000

Max number of

instances

simultaneously

receiving a

deployment

Feature Innovation

Speed of deployments at amazon.com

75%

Reduction in

outages triggered

by software

deployments

since 2006

90%

Reduction in

outage minutes

triggered by

software

deployments

Business Value of Frequent Deployments

~0.001%

Software

deployments

cause an

outage

Although undoubtedly

tough, this is all

completely doable

Remember

if you don’t do it, direct or

brand new competitors

will

Thank you!

erictach@amazon.com

Eric Tachibana (linked-in)

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