Amazon Web Services believes it has found the recipe for successful innovation in Two Pizza teams which it claims have launched nearly three hundred new services and features this year
A BBC article on innovation [September 2014] pointed to the fate of once-successful companies that had lost the innovation game to more dynamic and younger competitors. It cited Polaroid, Alta Vista, Kodak among the recent casualties.
The article went over ground that can be found in textbooks of innovation management: Innovate or die. One consultant was quoted as saying “Typically, big companies are much more conservative than start-ups and won’t do anything that is untested or could risk future profits”, It then listed an approach advocated by Amazon Web Services:
Two Pizza teams
The challenge is to find ways of recreating the energy an dynamism of lean start-up operations within larger companies. Which is where Amazon’s Two Pizza teams come in: Perhaps it is online retailer and web services provider Amazon that best exemplifies lean start-up principles in action.
“Keeping teams small enough to be fed by two large pizzas, giving them autonomy and direct access to customers, encourages risk taking and innovation”, says Ian Massingham, technical evangelist for Amazon Web Services (AWS), the retailer’s cloud platform. “AWS has launched 280 new services and features this year – it’s all about making things better for our customers.”
Most commentators accept there is no one way for big companies to innovate, but they all agree that without innovation your days at the top could be numbered.
As simple as that?
Not really. The basic point has been around as lean thinking since the 1980s and a best-selling book of that name by Jim Womack and Dan Jones, founders of the Lean Enterprise Institute and the Lean Enterprise Academy. Lean thinking is a mix of practical advice for project managers with a philosophic (sometimes evangelical) background for overcoming the functionalism and silos of large organisations. The shift is exemplified in the shift from Fordist production lines to Toyota’s dynamic small teams.
Teams shall not live by Pizza alone
But teams shall not live by Pizzas alone. Amazon already had an innovation culture before the Two Pizza concept was announced. As Massingham said, encouraging risk-taking and innovation requires more distributed leadership, and autonomy to workers. Transformation requires more than a smart name.