When you think about rapid-changing, super adaptable organizations infused with innovation, Amazon is one that comes to mind. This Medium article offers insight into the process the organization uses to bring new ideas to life.
Over the past 25 years, Amazon has transformed itself. What began as an online bookseller has become one of the world’s largest retailers. Beyond that, Amazon is the market leader in cloud storage services (AWS), is a major producer of both television and film (Amazon Studios), and has now entered the health care market.
Of course, not all of Amazon’s ideas pan out. (Anyone out there still have a Fire Phone?) But even when they don’t, the lessons learned prove invaluable — and sometimes lead to even more extraordinary ideas.
So, how do Jeff Bezos and co. do it? How do they decide on which ideas to focus their considerable resources, and which they want to leave behind?
Ian McAllister, Director of Amazon Day and former Director of Amazon Smile, shared an insightful look into Amazon’s approach for product development on Quora a few years ago.
The approach is known as “working backwards.”
Let’s break down how this process works and see how it can help you and your business.
Working backwards
According to McAllister, working backwards begins by “[trying] to work backwards from the customer, rather than starting with an idea for a product and trying to bolt customers onto it.”
For new initiative, the process begins with a formidable task: A product manager must write an internal press release announcing a finished product.
“Internal press releases are centered around the customer problem, how current solutions (internal or external) fail, and how the new product will blow away existing solutions,” writes McAllister. “If the benefits listed don’t sound very interesting or exciting to customers, then perhaps they’re not (and shouldn’t be built).”
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