Importance of Innovation and Design Thinking in Business Development

Running head: INNOVATION AND BUSINESS DEVELOPMENT
Innovation and Business Development
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1INNOVATION AND BUSINESS DEVELOPMENT
Executive Summery
This paper aims to analyze importance of innovation in an organization and examine the
features of the design thinking method as a successful business innovation tool. Amazon is
taken as the model organization and how it has applied innovation tools for success has been
evaluated. Moreover, the purpose of this paper is to analyze certain market trends and
strategy and their alignment with the organizational strategy. Amazon has become one of the
leaders in the trend of e-commerce. Design thinking method is a problem solving method that
has enabled the organization to fulfill the wishes of its buyers and earn considerable profit as
well. In this context, business environment and its different factors like innovation trend,
strategy, strategy alignment, innovation capability, value creation and capture have
impressionable effect. a business canvas model of Amazon shows the opportunities and
threats of the organization and on the basis of that recommendations on strategy and
innovation can be made. The paper finally concludes that the implementation of Design
Thinking and alignment of that innovation strategy with recent market trends and company
strategies, Amazon have been able transform the very idea of online shopping and standards
of customer satisfaction.

2INNOVATION AND BUSINESS DEVELOPMENT
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Design Thinking.....................................................................................................................4
Factors Affecting Innovation.................................................................................................5
Alignment of Innovation with Corporate Strategy.................................................................6
Design Thinking of Amazon: Canvas Business Model.........................................................7
Recommendation....................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10
Appendices...............................................................................................................................12

3INNOVATION AND BUSINESS DEVELOPMENT
Introduction
Amazon is a multinational company originating from USA. Their headquarters is
located at Seattle, Washington. The major services provided are online shopping and e-
commerce, cloud computing facilities and artificial intelligence like Amazon Echo. It is the
largest service provider of e-commerce as well as cloud computing facility. Jeff Bezos is the
maker of Amazon and it was established on 5th July, 1994 as an online book selling platform
that later expanded to video selling and streaming as well (Kantor & Streitfeld, 2015).
Gradually it included things like electronics, apparel, furniture, toys, food, jewelry and many
more. Design thinking on the other hand is a relatively recent innovation strategy and most
organizations have already adopted this method and have profited. Amazon too, has adopted
this methodology to come up with creative and revolutionary solutions to the problems and
threats. To determine the impact of the methodology it is necessary to analyze many factors.
This paper will trace the ideas and concepts of design thinking, organizational environment
co relation among innovation trend, strategy, capabilities, value creation and capture, analyze
the impacts, opportunities and threats of Amazon through the application of Canvas business
model, recommend the effectiveness of the innovation strategy to innovation trend and how
they ensure strategic alignment.
Discussion
Amazon is the leading company of the United States in terms of turnover. Amazon
online shopping service provides a platform for many sellers to boost their profit by selling
their goods through amazon. Being a large organization, they have applied many innovation
trends till date. The latest trend that they have been following is the Design Thinking trend
that has become extremely popular in recent times.