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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