Importance of Mini-drone Delivery Technology for Amazon Company

This report analyzes the importance of mini-drone delivery technology for Amazon Company, the decision makers involved, budgeting for the technology, planning and implementation, and the use of mobile technology by Amazon.

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ORGANISATIONAL STRATEGY AND LEADERSHIP
Student’s Name
Course
Date

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Introduction
Over the last decade, the evolution of technology has significantly changed the operations
of diverse companies and many monumental discoveries have further shaped landscapes of
society. Amazon Company has lately adopted advanced technologies in order to differentiate its
products and gain a competitive advantage in flooded e-commerce markets. Amazon is an
American multinational technology company that focuses on e-commerce, artificial intelligence,
and cloud computing (Amazon (2019).In the UK, Amazon started in 1998 and has since
expanded to offer 100 million commodities in over 50 categories of products ranging from
groceries, sportswear and beauty (Curtis, 2019 p.1).Currently, the company is the largest cloud-
computing platform and e-commerce marketplace in the world as measured by market
capitalization and revenue. The company uses diverse disruptive technologies to gain a
competitive advantage in the industry and facilitate effective customer delivery. Therefore, the
main aim of report is to analyses how futuristic mini-drone delivery plan technology is important
for Amazon Company, who makes decisions about the use of technology in Amazon Company,
how technology is budgeted in the company, how company make plans about technology, how
use of technology change as new developments are introduced and how Amazon uses mobile
technology.
Research analysis and design
Mini-drone deliver technology
Mini-drone technology is a secret R$D project that is intended to fry small packages of
customers to their doorsteps within 13 to 30 minutes (Vergouw, Nagel, Bondt and Custers, 2016
p.21). The technology involves the use of prime air vehicle with no human pilot to deliver urgent
products to diverse customers globally. To fry products successfully to various destinations, the

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order must be small enough to fit in the cargo box, less than five pounds (2.25kg) and must have
a delivery location within16 kilometer (10-mile radius) of an Amazon center (Amazon, 2019).
Furthermore, the prime air drones technology to be implemented by Amazon will be connected
to the internet to allow flight control management and effective communication between drones
(Image source DesJardins 2019).
Importance of Mini-drone delivers plan technology to Amazon Company
Mini-drone delivery technology will be important for Amazon Company after its
implementation as it will boost the effectiveness of supply chain, fasten operations and maintain
convenient customer delivery. Furthermore, with customers being able to receive their purchases
within 30 minutes or less, the technology will play a significant role in increasing market
segmentation of Amazon because customers will be motivated to purchase more items that are
urgent.
Decision makers about the use of technology in Amazon Company

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Various internal and external stakeholders of Amazon Company are involved in decisions
making the process of determining how the mini-drone technology will be implemented and
functioning. The decisions of the company regarding the implementation of technology are
firstly discussed by a formed committee that is chaired by a nominated project team leader. After
first committee discussion, technology implementation is then forwarded to a second committee
consisting of CEO (Jeff Bezos), Head of Information and Technology (Chad Wright) and Chief
finance officer (Mr. Brian.T. Olsavsky) who provides their final decisions of technology in the
company (Kim 2019).
Stakeholder Role
CEO (Jeff Bezos) Approves the technology implementation
(Kim 2019).
Senior Director of Information technology in
Amazon ( Chad Wright)
Supervising the team involved in coding
designing and coding the technology (Bowles,
2019).
Chief financial officers (Mr. Brian.T.
Olsavsky)
Determines the budgets of the technology and
approves them in accordance with Amazon
policy of creativity and innovation (Bowles,
2019).
Budgeting for Mini-drone technology in Amazon Company
Amazon’s Budgeting of a technology is determined by the Chief of Information and his
team and later is forwarded to Chief financial officer for approval and then to CEO for
launching. The budget of mini-drone technology is budgeted for making sure all the essential
resources that will be used in each phase of a project are readily available. Furthermore, the

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budget for mini-drone technology will be divided into several categories consisting of human
resources, raw materials, implementation costs, prototyping costs and other miscellaneous that
might occur during the process of implementing the technology (Jenkings, 2019).
Simplified Mini-drone technology budget
Item costs Stakeholder in charge costs Deadline date
Raw materials Operational manager $ 10000.00 N/a
Human resource Human resource
manager
$ 3000.00 N/a
Designing, Implementation,
and prototyping
Director of Information
technology
$ 400000 N/a
(Jenkings, 2019)
Amazon’s planning about the technology
The implementing for new technology by Amazon is planned after a thorough industry
analysis (analysis of both macro and microenvironment). Furthermore, after market research and
surveys regarding how customers are feeling about the services and products offered by the
company, Amazon usually comes up with plans of introducing a technology that will fasten the
processes and maintain convenience among the customers (DaSilva, Trkman, Desouza & Lindič,
(2013 p.1161).
How the use of technology change in Amazon as developments are introduced
Use of technology in Amazon requires full support from workforces and leaders in order
to make technology acceptance to both customers and employees perspective. Upon
identification of new technology with advanced features and capabilities of meeting customer
demands, the organization begins slowly the process of “introducing technology. First, all

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stakeholders impacted by technological change are briefed about the technology to be introduced
and how it will be beneficial for employees, customers and organization. After the
implementation of technology, concern management team starts a phase of training staff and
employees. Finally, the company reviews how the public responds to change by getting
feedbacks from assessment tools such as Facebook, Twitter, and surveys (Rossman, 2016 p.16-
p.30)
Amazon Company mobile technology
Amazon Company uses mobile technology to enhance their operations, maintain
effective communication with customers and provide insights to consumers on new and on-offer
products and services. Research conducted by Rauch, (2011) shows that more people
(approximately 70%) worldwide shops in Amazon using Tablets and smartphones more than
computers and laptops in the holiday season. Furthermore, Amazon financial data of 2014
showed that 8% of Amazon’s $61 billion in annual sales was associated with tablets and phones.
Conclusion
Amazon company focuses on e-commerce, artificial intelligence and cloud computing.
Most of Amazon processes such as supply chain have been automated to fit the emerging need of
various consumers in the society. The company uses disruptive technology to gain a competitive
advantage over its close competitors. Mini-drone technology is believed to be launched in the
near future by Amazon Company in an effort of boosting effective and convenient deliveries to
customers. The technology ensures customers receive their goods faster and conveniently. The
key stakeholders who are involved in decision making for the technology include the director of
information technology, Chief financial officer and Chief executive officer (CEO). The

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technology budget provides compensation of resources that are used in all the phases of
technological implementation.
References
Amazon (2019). Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books,
DVDs & more. [online] Amazon.com. Available at: https://www.amazon.com/ [Accessed 13
Apr. 2019].
Bowles, J. (2019). Technology for Social Good - Zipline's drone delivery rescue missions -
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https://government.diginomica.com/2017/08/30/technology-social-good-ziplines-drone-delivery-
rescue-missions-2/
Curtis, S. (2019). Amazon at 15: the technology behind Amazon UK's success. [online]
Telegraph.co.uk. Available at:
https://www.telegraph.co.uk/technology/amazon/10377834/Amazon-at-15-the-technology-
behind-Amazon-UKs-success.html [Accessed 13 Apr. 2019].
DaSilva, C. M., Trkman, P., Desouza, K., & Lindič, J. (2013). Disruptive technologies: a
business model perspective on cloud computing. Technology Analysis & Strategic
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DesJardins, J. (2019). Amazon and UPS are betting big on drone delivery. [online] Business
Insider. Available at: https://www.businessinsider.com/amazon-and-ups-are-betting-big-on-
drone-delivery-2018-3?IR=T [Accessed 24 Apr. 2019].

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Jenkings, D. (2019). Forecast of the market UAS Package delivery markets. Retrieved from
https://news.erau.edu/-/media/files/news/forecast-commercial-uas-package-delivery-market.pdf?
la=en
Kim, E. (2019). Jeff Bezos told employees that fear of Amazon is overblown — some rivals are
proving him right. Retrieved from https://www.cnbc.com/2019/02/22/jeff-bezos-told-employees-
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company (Vol. 1). Clyde Hill Publishing.
Vergouw, B., Nagel, H., Bondt, G. and Custers, B., 2016. Drone technology: types, payloads,
applications, frequency spectrum issues and future developments. In The Future of Drone Use
(pp. 21-45). TMC Asser Press, The Hague.