aws re:invent 2016: leading enterprise innovation at startup speed (ent207)
TRANSCRIPT
© 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
Remember to complete
your evaluations!