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Innovating Through Disruption by Richard Halkett, AWS Worldwide Lead, Digital Innovation More than ever, companies are beset by challenges–and surrounded by opportunities, too. To thrive, companies are going to have to do (even) more with (even) less. Amazon's approach to innovation is one way of tackling the challenge, and it could have elements helpful to others in the present climate. In our experience, innovating successfully depends on rapidly determining where to innovate, what solution to focus on, and how to build. Crises draw us back to where we are comfortable. And we are experiencing a global crisis like no other in recent memory. In response, many companies are preserving capital and hurrying to protect what appears to be their 'core business.' At best,most are choosing modest adjustments and incremental change. Plans for innovation are cast aside; such endeavors are considered more appropriate for when times are good. But the innovation imperative continues, and those who innovate now will thrive in the recovery. First, let's take a trip down recent memory lane. During the 2007-2008 global financial crisis, when many were concerned about the future of the travel and hospitality industry, innovations in business models, customer engagement, and technology emerged to create the marketplace we have today. Airbnb launched in August 2008, Uber in March 2009, followed by Square later that year. By 2010, we were able to use our third-generation iPhones to conduct business that was not even possible when the first model was launched three years earlier. But these companies were startups with little at stake and everything to gain. What is an established company to do? According to a Harvard Business Review article titled 'Roaring out of Recession,' only 9% of established companies emerged stronger after the Great Recession while 17% went bankrupt, and the rest performed roughly the same as pre-recession. So what did that 9% do differently? They 'reduce costs selectively by focusing more on operational efficiency than their rivals do, even as they invest relatively comprehensively in the future by spending on marketing, R&D, and new assets.' Amazon's Go-To Innovation Techniques A series for CIOs and Innovation Leaders to explore innovation best practices In this pandemic, companies are beset by challenges–and surrounded by opportunities, too. To thrive, companies are going to have to do (even) more with (even) less. Amazon's approach to innovation is one way of tackling the challenge, and it could have elements helpful to others in the present climate. In our experience, innovating successfully depends on rapidly determining where to innovate, what solution to focus on, and how to build. To determine where to innovate–the 'innovation space'–it is vital to rapidly differentiate between one-way and two-way doors. One way doors are those decisions that are hard to undo–those impacting life and health, major capital investments, or decisions that could damage customer trust. Even in this present climate, those decisions should be carefully thought through. By contrast, two-way doors are easy to undo and offer great potential for learning–more so by

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