Leading Enterprise Innovation at Startup Speed
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Incumbent enterprises face dramatically competitive landscapes, with threats from almost every direction. Protecting your core business and innovating for the future is a delicate balancing act. Innovating as fast as a startup becomes a core competency, but failed new product innovation wastes time and resources. In this session, IT managers and professionals learn how running a lean enterprise can be a powerful framework for leading enterprise-scale innovation as effectively and fast as a startup. Speaker: Jon Kaehne, Head of Enterprise Strategy, Amazon Web Services
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Leading Enterprise Innovation at Startup Speed
- 1. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Jon Kaehne Head of Enterprise Strategy, Amazon Web Services Level 200 © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Leading Enterprise Innovation @ Startup Speed
- 2. at the heart of new product dev is one sad fact
- 3. 85%of new products #FAIL - Harvard Business Review
- 4. that’s trillions of dollars in wasted innovation each year https://www.flickr.com/photos/japokskee/
- 5. worse yet – during market disruption new product development is the only safe haven
- 6. What if we could reduce waste by even 10% https://www.flickr.com/photos/68751915@N05/
- 7. Or innovate as fast as startups?
- 8. https://www.flickr.com/photos/japokskee/https://www.flickr.com/photos/vinothchandar/ THE GOOD NEWS! we have proven tools to reduce waste
- 11. 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/
- 13. Disruption
- 14. “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
- 15. Accept that you know Nothing Neither you, nor the customer, may know what the product requirements are until after they’ve played with the product Test Smart Failure friendly firms don’t fail, they either confirm or reject hypotheses Measure Smart Lean Enterprises measure the right things Iterate at Speed Lean Enterprises don’t throw good money after bad. But neither are they fickle. Whatever the case, they pivot or persevere quickly 1 2 3 4 Principles of Lean Innovation
- 16. Accept that you know nothing 1
- 17. The problem is not the wall between engineering and marketing
- 18. The problem is not the wall between engineering and marketing The problem is the wall between you and your customer
- 19. You don’t know jack about what the customer wants https://www.flickr.com/photos/helga/
- 20. In fact neither do they https://www.flickr.com/photos/helga/https://www.flickr.com/photos/yamagatacamille/
- 21. So how do most firms respond to all this uncertainty?
- 22. 50 page business plan Capital Budgeting 3-month Requirements Analysis Functional Documentation 9-month Development Project
- 23. 50 page business plan Capital Budgeting 3-month Requirements Analysis Functional Documentation 9-month Development Project Cross Fingers
- 25. Test Smart 2
- 28. Innovators love to experiment https://www.flickr.com/photos/marsdd/
- 29. Experiments confirm or reject hypotheses. Failure is not an option.
- 30. Innovators experiment using minimum viable products (MVP)
- 31. MVPs like “concierge services” can even be pretend!
- 32. Product Development Product – Market fit Time Scale
- 33. Product Development Product – Market fit Time Scale
- 34. Innovation & Iteration Time Scale Product – Market fit
- 35. Innovation & Iteration Time Scale Started: burbn, location-based mobile app. Photo sharing is just one feature Product – Market fit
- 36. Innovation & Iteration Time Scale Now: re-written as photo app. Sold to FB for 1bn Started: burbn, location-based mobile app. Photo sharing is just one feature
- 37. Innovation & Iteration Time Scale Started: odeo, site to create & share podcasts
- 38. Innovation & Iteration Time Scale Now: micro-blogging, 500M users, IPO, >18Bn market cap Started: odeo, site to create & share podcasts
- 39. MVPs do not (necessarily) increase certainty – they actually… Reduce low-hanging uncertainty
- 40. remember, (only) reducing failed products from ~90% to ~80% is already a big deal
- 41. Measure Smart 3
- 46. De-risking Value > Experiment Cost
- 47. 1.Choose the right hypotheses 2.Reduce the cost to experiment
- 48. So how is all this relevant for the cloud?
- 49. “Cloud is like a fertilizer that creates startups” - Eric Ries
- 50. Although undoubtedly tough, this is all completely doable
- 52. “Our performance of SAP on AWS is off the scale. We reduced our monthly billing cycle from four days to one day and have significantly reduced our overall annual IT costs. ” - Carlos Galiano, CIO, Seaco Global Ltd.
- 54. Remember – if you don’t do it, direct or brand new competitors will
- 55. Thank you!