Innovation Trends and Strategies: A Case Study of Amazon and Design Thinking

This report discusses the importance of innovation trends and strategies for businesses, with a case study of Amazon and the innovative trend of design thinking. It includes the definition of concepts, their relationships, importance of innovative strategy, impact of innovative trend, and recommendations for the organization and strategic alignment.

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Name of the student
Name of the university
Author note

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Table of Contents
Introduction......................................................................................................................................2
Impact on business by the advances of design thinking..................................................................2
Organization and innovative trend...................................................................................................3
Definition of the concepts and their relationships...........................................................................4
Importance of innovative strategy...................................................................................................5
Impact of the innovative trend.........................................................................................................6
Recommendation for the organization.............................................................................................8
Recommendation for the strategic alignment..................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Introduction
The concept of innovation includes the creation of new value. The goal of innovation is
to produce the idea regarding the productive position furthermore improving the quality, the
services and the management models of the business concerned. In the competitive market, the
innovation and the context of creativity is a critical priority. With the impact of globalization.
The technological and the revolutions of knowledge , the context of innovation and the strategies
of innovation is essential for each and every business for the promotion of the business and the
global networks (Liedtka, 2015). The report highlights the innovation trends of the company ,
Amazon and how the innovation trend of design thinking is beneficial for the growth of the
company in the competitive global market.
Impact on business by the advances of design thinking
As explained by Liedtka (2018), in the paper ‘ Why design Thinking works’, the new
ways of the organization of the works leads to the extraordinary improvements. The combination
of the tools like the kanban cards, the quality circles are included in the total quality management
targeting the process of the social technology. The author of this article highlighted the context
of the challenges in the process of the innovation. The article highlights the fact that for being
successful the process of the innovation requires to deliver three of the essential things which are
the lower risks and the cost for the change, the superior solution and the employer buy in.
Through the process of the business, the people through out have developed some of the useful
tactic for the achievement of these outcomes (Liedtka & Ogilvie, 2011). The article focused
mainly on the social technology and the design thinking tools that includes the ethnographic
research, the emphasis regarding the reframing of the problems, the experimentation, the use f

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the diverse terminology and so on. The article describes the ways of the innovation and the
description regarding the how the tools of the design thinking helps the business towards
execution of the innovative and strategic experiments. The article furthermore explained how the
tools of the design thinking can be beneficial for the organization wile delivering the sense of
security while helping the business to discover the needs of the customers and the idea regarding
the testing.
Organization and innovative trend
The selected organization for this assignment is Amazon which is the American
electronic commerce company that has become one of the highlighted icon of the internet
business (França et al., 2017). Founded in the year 1994, the company is one of the largest
internet retailing organization in the world making sure to meet the needs of the customers
throughout the world. Unlike the other organization and the multinational companies in the
world, Amazon has not fixated over the tightly designed ecosystem of the interlocking services
and application. The organization emphasized over the platform serving its customers in the best
and the fastest ways (Nobre et al., 2016). Due to the strategy of the organization regarding the
continues rate of evolution, the company experimented in the adjacent areas regarding the
development and the building of the franchises. Throughout the era, Amazon tops the list of the
singular enterprise that continued to be the nimble even in case of the achievement of the
enviable scale.
The innovative trend of the strategy that the will be explained in this report is the design
thinking trend. It is generally defined in various of the ways by the academic, the leaders of the
industry which states the believe of keeping the customers at the core with the design of the

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products and the services for the improvement of the existing services and products. The design
thinking can furthermore be created with the process model called the double diamond. These re
divided in four of the major phases which are the discover, defining, development and the
delivery (Chabot et al., 2016). These maps the convergent and the divergent stages of the
process of the design that the organization should take in account in the process of innovation.
Definition of the concepts and their relationships
The organizational environment constitutes of the institutions and the forces that
surrounds the organization that furthermore affects the operations, the performance and the
resources. The organizational environment includes all the elements that exist outside the
boundaries of the organization and furthermore have the potential for affecting the portion and
the organization.
Innovation is the meaning of new and creative ideas and thoughts together with the new
imaginations in the form of the methods and the device (Uhl & Gollenia, 2016). The trends of
the innovation involves the application of the better and good solution meeting the new and the
innovative requirements, the unarticulated needs and the existing needs of the competitive
market.
The strategy of innovation is the idea or the plan for the growing of the market share or
the profit by the innovation of the services and the products. The innovation strategy is one of the
key essential tool that each and every competitive business organization must adopt for the
improvement of their approaches in the competitive market.
The innovation capability can be defined as the ability of the business organization to
transform an idea towards a new and an innovative something that carries some of the economic

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value. The context of the innovative capability is connected to the production of the organization
and its competitiveness in the market.
The concept of the value creation and the capture ranges back to the markets which are
highly competitive. This include the chances and the probability of the increased profit through
the value creation (Wang & Reio Jr, 2017). The concept lies on the belief that trying for
capturing more of the values without the creation of the value tends to make most of the
customers to go to the competitors. There lies a competition that forces the close linkage among
the creation of value and the capturing of the value.
Importance of innovative strategy
The successful implementation , development and the exploitation of the new and the
innovative ideas are one of the crucial factor for the business for improving its procedure and
bring new and innovative products and the services to the competitive market, thus increasing
the level of efficiency and improving the profit margin.
The creation and the development of an innovation strategy ensures one of the most
effective strategic alignment within the organization with some of the highlighted factors
including the improvement of the productivity, reputation, the reduction of the cists, the
increased level of competitiveness, the improved recognition of the value and the brand, the new
relationship and the partnerships and the increased and improved profitability and the rate of the
turnover of the company (Dolata, 2017).
In the current context of the organization, Amazon, the innovative strategy of design
thinking will enable in the problem solving with the provision of the creative insights that allows
different perspectives and refreshing of the strategy for staying ahead of the competition in the

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market of retail commerce. For Amazon, the innovative strategy is extremely essential and this
tool will help the organization towards the development of the new and the improved services
and the products for meeting the rapidly changing demands and the needs of the customers in the
era of the globalization.
Impact of the innovative trend
The innovative trend of design thinking will be beneficial for Amazon since this will help
the e-commerce website to make some of the innovative methods and strategies for the
promotion and the marketing of the services and the production for gathering the attraction of the
customers and the clients through out the world. According to Brenner, Uebernickel and Abrell
(2016) there lies two of major innovative ways for the extension of the business. This includes
taking of the inventory for the extension of the skills or the determination of the need of the
customers and working backward with the learning o the new set of skills. With the review of the
strategic tool of the SWOT analysis, it can be summarized that for the business organization,
Amazon the strength after the implication of the design thinking will be the aggregates, the filters
and the connectedness. The weakness might be the bad and the rotten reviews of the content. As
per the opportunities, the new innovative strategy of the design thinking will enable Amazon to
attract lots of customers.
Key Partners
Manufacturers,
third-party
sellers,
publishers and
Key Activities
Merchandising
of physical and
digital goods,
production of
Value
Proposition
Convenience,
competitive
Customer
Relationships
Making online
shopping and the
purchase of
Customer
segments
Appeals to a mass
market,
accessibility and

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digital content
producers are all
key partners in
Amazon's
operations.
digital content. pricing, brand
recognition, and
the sheer range
of goods stocked
are all central to
Amazon's value
digital content
easier for
consumers has
long been a focus
of Amazon, user
interactivity and
high level of
customer service
sheer variety of
physical and
digital products in
a virtual way
Key
Resources
Physical
resources such as
warehouses and
film studios,
technological
infrastructure is
key resource,
largest provider
of cloud
infrastructure
services
Channels
amazon.com,
fourteen different
versions of its
website for
customers from
various countries
across five
continents
Cost structure
Cost driven retail activities , Amazon is the most
Revenue Streams
Largest revenue stream, huge range

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significant drivers of the cost. Initial cost of the
purchasing of the goods.
of the physical products , sale of
electronic books , streaming of the
digital contents , sale of the kindle
products.
Source: (Osterwalder & Pigneur, 2010)
Recommendation for the organization
It is recommended for Amazon to organize the innovation activities of the design
thinking by firstly creating a culture that fosters the innovation with the organization of the new
ideas in the way that empowers the act over them (Elsbach & Stigliani, 2018). Amazon should
discuss the trend of the design thinking idea in the central location, the organization must
furthermore label the list of the ideas and the innovative strategies to design a new preformats ,
planning for the change and the implementation of the changes in the workforce.
The innovative capabilities and additional basis that the organization must develop is by
the development and the improvement of the organizational behavior, the implementation of a
culturally healthy and safe working environment, strategic alliances, better customer support
system, co-evolution of the practices and the culture and more.
Some of the innovative initiatives that the organization, Amazon must pursue includes
the following. This includes the voice search, the cloud computing, the introduction of the
automated brick and the mortar stores, the facility of the one click ordering, the system and the
option of the online review system, the option of the online review and the reading of the books,
the facility of the ultra fast delivery system and the same day delivery system for the selected

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products to the customers, the innovative trend of the personalized experience of the customers
and the evolution of the nature of the business (Daft, 2015).
The organization, Amazon ensures that it creates and captures the values from the
innovation and the innovative trends by the reviewing and centering or focusing down on the
needs of the customers The organization should narrow doe its targets and view from the
customers point of view, regarding their need for attracting them from the other e-commerce
organization in the market.
Recommendation for the strategic alignment
Amazon can best ensures the strategic alignment for addressing the innovative trend of
the design thinking by the three simple step procedure (Ben Mahmoud‐Jouini, Midler &
Silberzahn, 2016). This includes the asking of the questions; regarding the meeting of the
strategic objectives, the identification of the areas where the innovation trend can lead to some of
the dramatic improvements. Second step is the posing of the innovation challenges that is based
over the strategic needs and finally the evaluation.
Conclusion
Thus it can be concluded from the above assignment that innovation is the meaning of
new and creative ideas and thoughts together with the new imaginations in the form of the
methods and the device. The trends of the innovation involves the application of the better and
good solution meeting the new and the innovative requirements, the unarticulated needs and the
existing needs of the competitive market. The technological and the revolutions of knowledge ,
the context of innovation and the strategies of innovation is essential for each and every business

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for the promotion of the business and the global networks. The report explained the innovation
trends of the company , Amazon and how the innovation trend of design thinking is beneficial
for the growth of the company in the competitive global market

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References
Ben Mahmoud‐Jouini, S., Midler, C., & Silberzahn, P. (2016). Contributions of design thinking
to project management in an innovation context. Project Management Journal, 47(2),
144-156.
Brenner, W., Uebernickel, F., & Abrell, T. (2016). Design thinking as mindset, process, and
toolbox. In Design thinking for innovation (pp. 3-21). Springer, Cham.
Chabot, L., Bivens-Tatum, W., Coates, H. L., Kern, M. K., Leonard, M., Palazzolo, C., ... &
Wang, M. (2016). 2016 top trends in academic libraries A review of the trends and issues
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competition-innovation strategies (No. 2017-01). Stuttgarter Beiträge zur Organisations-
und Innovationsforschung, SOI Discussion Paper.
Elsbach, K. D., & Stigliani, I. (2018). Design thinking and organizational culture: A review and
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Liedtka, J. (2018). Why Design Thinking works: It addresses the biases and behaviors that
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Nobre, C. A., Sampaio, G., Borma, L. S., Castilla-Rubio, J. C., Silva, J. S., & Cardoso, M.
(2016). Land-use and climate change risks in the Amazon and the need of a novel
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