Building core capabilities: The secret to innovation at scale (SEG206)

Scaling Innovation at Scale

Shared Customer Obsession

  • Customer obsession is one of the most important leadership principles at Amazon
  • Shared customer obsession means that all teams have a deep understanding and knowledge of the customer
  • A critical platform capability to drive customer innovation is a customer data platform (CDP) that provides shared customer insights and knowledge across teams
  • This allows teams to deliver coherent and personalized experiences for customers throughout their journey

Insist on the Highest Standards

  • Technical debt can be a major bottleneck to innovation as companies scale
  • It can degrade customer experience, lower profits, and frustrate good engineers and product managers
  • To address this:
    • Align teams to customer outcomes when prioritizing technical debt
    • Use tools like feature flagging, version control, and AI-powered code analysis to manage technical debt
    • Emphasize technical and business collaboration on debt prioritization
    • Leverage services like AWS CodeGuru, CodeWhisperer, and Database Migration Service

Small Autonomous Teams

  • Conway's Law states that system design mirrors organization design
  • Loosely coupled teams aligned to loosely coupled software systems is key for optimizing innovation
  • Teams should own the entire lifecycle of the systems they develop, from customer vision to operation and iteration
  • This allows teams to stay close to customers and innovate at the edge

Mechanisms to Promote Ideas from Anywhere

  • Having well-defined, repeatable processes (mechanisms) is key for capturing and scaling innovation
  • Amazon's "working backwards" process allows anyone to pitch and test ideas, with a path to funding and scaling
  • Mechanisms should include both qualitative customer discovery and quantitative experimentation at scale
  • Platform capabilities like self-service experimentation can enable this across the organization

Putting it All Together

  • Key platform capabilities to enable these principles:
    • Customer data platform (CDP)
    • Continuous refactoring and modernization tools
    • API-driven, modular architecture
    • Mechanisms for customer discovery and experimentation
  • Focus on data foundations, team/architecture alignment, and AI-powered capabilities as products for internal teams

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