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S U MM I TB e r l i n

© 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.SUMMIT

How Digital Business Models Are Developed and Executed at Amazon

Feras AlsamawiSenior Business Development Manager – Digital Innovation EMEAAmazon Web Services


First steps:

Innovation

at Amazon (1995)


1994 m Founded

1995 m Amazon.com

1998 m Added CDs & DVDs

2006 m Amazon Web Services

2007 m Kindle

2011 m Video

2012 m Groceries

2014 m Alexa/Echo

2015 m Bookstores

2017 m Go


5


Every one of us

is a leader on

our mission


…


OUR MISSION

we want to be Earth’s mostcustomer-centric company

10


OUR COMMITMENT

we make our customers’ liveseasier

11


WHERE INNOVATION BEGINS

we start with the customerand work backwards

12


Amazon’s culture of innovation

Customer

obsession

Long-term

thinking

If you want to

be inventive,

you have to be

willing to fail.

You have to be

willing to be

misunderstood

for a long time.

“Start every process

with the customer

and work

backwards.”

“Be stubborn on the

vision but flexible on

the details.”

“We are willing to go

down on a bunch of

dark alleys and

occasionally we find

something that

really works.”

“We are very

comfortable being

misunderstood.”


Amazon’s Virtuous Cycles

3

GrowthCustomerExperience

Traffic

Sellers

Selection & Convenience

LowerPrices

Lower Cost Structure


15


WILLINGNESS TO BE MISUNDERSTOOD

for a long period of time

16


17


18


TheInstitutional

YES!

Failure


TheInstitutional

YES!

Learn from failures…


Working Backwards is

a process.

Use it to get clarity,

not to document what

you’ve already

decided to do.


Who is your customer?

Be specific about their context and needs


Press Release

FAQ

Visuals

Start with the customer and work backwards


Is it a one-way or a two-way door?


Two-Pizza teams are fast and agile, foster ownership and autonomy

Small, decentralized

teams are nimble

Own and run what you build


“The traditional model is that you take your software

to the wall that separates development and

operations, and throw it over and then forget about it.

In 2006

Werner Vogels, CTO Amazon:

Not in Amazon.

You build it. You run it.”


A structure that allowed for 1 change/second…

> Single-purpose> Connect only through APIs > Connect over HTTPS> Largely “black boxes” to each other> “Microservices”


Self-service platformswithout gatekeepers

“We are creating powerful self-service

platforms that allow thousands of people

to boldly experiment and accomplish

things that would otherwise

be impossible or impractical.”


HYBRID

ARCHITECTURE

Data

Backups

Integrated

App

Deployment

s

Direct

Connect

Identity

Federation

Integrated

Resource

Management

Integrated

Networkin

g

MARKETPLACE

Business

AppsDatabases

DevOps

Tools

Networkin

g

Securit

y

Storag

e

Business

Intelligenc

e

ENTERPRISE

APPS

Virtual

Desktops

Sharing &

Collaboratio

n

Corporate

Email

Backup

IoT

Rules

Engine

Device

Shadows

Device

SDKs

Registry

Device

Gateway

DEVELOPMENT & OPERATIONSMOBILE SERVICESAPP SERVICESANALYTICS

Data

Warehousin

g

Hadoop

/Spark

Streaming

Data

Collection

Machine

Learning

Elastic

Search

Queuing &

Notification

s

Workflo

w

Search

Email

Transcodin

g

One-click

App

Deployment

Identity

Sync

Mobile App

Testing

Push

Notification

s

DevOps Resource

Management

Application

Lifecycle

Management

Container

s

Triggers

Resource

Templates

API

Gateway

Streaming

Data Analysis

Business

Intelligence

Mobile

Analytics

Single

Integrated

Console

TECHNICAL & BUSINESS SUPPORT

SupportProfessional

Services

Account

Managemen

t

Partner

Ecosystem

Solutions

Architects

Training &

Certification

Security &

Billing Reports

GAMING

3D Game

Engine

Character

Designer

Multiplaye

r Service

Twitch

Integration

Cloud

Integration

RegionsAvailability

Zones

Points of

Presence

INFRASTRUCTURE

CORE SERVICES

ComputeVMs, Auto-scaling, Load Balancing,

Containers, Cloud functions

StorageObject, Blocks, File,

Archivals,

Import/Export

DatabasesRelational, NoSQL,

Caching, Migration

CDNNetworkin

gVPC, DX, DNS

Access

Control

Identity

Management

Key

Management

& Storage

Monitoring

& Logs

SECURITY & COMPLIANCE

Resource &

Usage Auditing

Configuration

Compliance

Web

application

firewall

Assessment

and reporting


2001 2009

Monolithic application

& teams

Microservices

& 2 pizza teams


f(innovation) = (org * arch)

(mechanisms * culture)


Organizing 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

(mechanisms * culture)

f(innovation) = (org * arch)


Quality & Speed – Traditional vs Digital World

Traditional Digital

Quality Speed

Process driven & predictable Customer feedback driven, less

predictable

Static – high cost of

deployment and change

Agile – low cost of deployment

and change

There are multiple paths to Innovate with Amazon

“How does

Amazon

Innovate?”

Amazon’s

Culture of

Innovation

‘I want to transform or

reorganize my company

for innovation’

‘I want to develop a new

digital offering to meet

a customer need’

‘I want to leverage the

cloud to accelerate our

pace of innovation’

Organizational

Transformation(e.g. ProServe & Partners)

New Product/Solution

Development

(e.g. Digital Innovation)

Cloud Adoption(e.g. AWS Services, MAP,

EAP, CAF)

Organizational transformation, HR,

culture, finance

Use Amazon mechanisms to identify &

drive pioneering innovations to scale

Build the technology platform & IT

capability for innovation


Interested in Amazon’s approach to innovation?AWS Digital Innovation Program

… explore Amazon’s culture of innovation and work together to define and prototype a new digital offering for your customers

41

EXPLORE innovation at Amazon – the principles behind our organization, architecture, mechanisms and culture

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

You bring:

• Senior executive business sponsor

• Specific customer problem or opportunity

• Investment in workshop and prototype

Amazon brings:

• Innovation expertise

• Executive workshop facilitation

• Prototyping capability and credits

1 2 3


Thank you!


Feras [email protected]

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