Innovation and Commercialisation: A Case Study of Amazon Go

Innovation and Commercialisation
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Table of Contents
Introduction......................................................................................................................................3
LO1:.................................................................................................................................................4
P1. Explain innovation and determine its importance to organisations like Amazon Go in
comparison with invention..........................................................................................................4
P2. Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialization.................................................................................................................5
LO2:.................................................................................................................................................7
P3. Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovation ideas.................................................................................................................7
P4. Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..................................................................................................................9
LO3:...............................................................................................................................................11
P5. Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation 500..............................11
P6. Build an Innovation Business Case for an organisation, including ways to access funding
...................................................................................................................................................12
LO4................................................................................................................................................14
P7.Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property..........................................................................................14
Conclusion.....................................................................................................................................15
Reference list.................................................................................................................................16
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Introduction
In this jeopardized business environment, organisations constantly struggle to improve their
performance standard for maintaining the competitive stability. In this case, innovation is
required for betterment of existing service as well as commodities. In this landscape, innovation
and intervention are two different aspects. Invention means introduction of new service or goods.
On the other hand, innovation can improve the existing business tactics as well as products. This
study enlightens the case scenario of Amazon Go. Recently, Amazon is preparing to open self-
checkout grocery stores in UK through registering the trademark of Amazon Go format. They
have understood that, if Grocery store has no checkouts, billing process can be handled with
more easy way. Therefore, aim of this study is to understand the importance of such innovation
in business process of Amazon. Moreover, discussion will be supportive for understand the
requirement of physical resources and funding to foster standard innovation in response to
business sustainability.
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LO1:
P1. Explain innovation and determine its importance to organisations like Amazon Go in
comparison with invention
Innovation can lead to increased productivity through the support of fundamental source of
wealth such as tactics of funding. It refers to different tactical idea for utilising different tools
that can improve the organizational performance by means of transformation. In order to create
culture of innovation, organisations have to implement various policies Belleflamme et al.
(2014) commented that often companies show little support for sharing their ideas on
management structure, compensation as well as productivity. In this case, people generally think
that innovation leads to product modification or advancement. However, this innovation is not
only related to product it also related with the production as well as supply chain perimeter.
As per the theoretical understanding, innovation on business process is related with the
procedures of performance management, employee management and other plans. Therefore, the
word ‘Innovation’ is can be supportive to increase the sales and profit rate in regards to
economic growth. Therefore, Amazon Go can get positive marketing environment through
applying their innovation plan on the business process. It can be stated that product innovation is
supportive for making transformational change within competitive market. Amazon Go is
committed to maintain a cash free shipping experience. This service innovation is also cam make
the transaction process more easily. As per the current report, refund or return system can be also
process through a disciplinary manner.
They have also implemented digitisation in the service for maintain the security level through the
support of strong surveillance system. Through this innovation on ordering and supply process,
organisation can prevent theft through verifying the purchases in a proper way. Logical service
development has been improved the time lag between ordering and purchase in Grocery stores.
Amazon’s decision on the service innovation has been taken on inventory management purpose.
As per the report, 1.44 % profit has Benn achieved through shrinking the inventory. Previously
organisations are facing issue of employee theft, unknown loss, and shoplifting and vendor fraud.
After the innovative plan on inventory tracking, such issue rates have been minimised (Spicer,
2015).
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As per the viewpoint of Butler (2016), invention can be defined as the creation of product,
whereas innovation is related with the improvement of service. In this landscape, Amazon
managers have strategic focuses on both invention and innovation objectives. As per the current
report, Amazon has introduced various electronic gadgets such as Bluetooth tire pressure
monitoring system, smart carryon luggage and other products.
However, now question is rising that why the organisations have prone to create innovation on
inventory system. As per the opinion of Cerqueiro et al. (2016), current customers prefer cheap
price range for quality products. After the Brexit, consumer consumption rate gradually
increased due to status of increased product pricing range. However, organisation cannot provide
standard product quality as per preferred price range of customers. In this landscape, Amazon
Go’s service improvement in inventory management is effective to foster such standard pricing
range as per consumer choice. Through reducing the overall spending cost, organisation can
maintain positive invention tasks, which can be acceptable between the customers. Therefore, in
comparison to invention, innovation not only deals with the invented product but also the
internal production procedures such as ordering, supply as well as deliverance (Rock, 2017).
Therefore, innovation can maintain the organisational profit as well as consumer satisfaction
from both end.
P2. Explain how organisational vision, leadership, culture and teamwork can shape
innovation and commercialization
Organisations have to understand the strategic dimension of innovation through the support of
leadership, strong organisation vision as well as team work. Innovation is a part to answer
queries of service improvement. However, leaders and CEO throughout the organisation are
responsible for changing the working style. According to Gavira et al. (2016), innovation needs
to be applied for giving a competitive edge within the field of production, marketing and other
industrial service. In E-commerce business process, Amazon is now leading player in the market
through applying positive effort on digitisation. As per the case study, Amazon Go is a part of
Amazon’s business. Therefore, the leadership culture and team collaboration have been reflected
as per theoretical approach, that Amazon do.
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After massive success on Amazon in UK market, organisation has introduced Amazon Go. Their
marketing vision has been structured as well as prioritised on customer driven services.
Invention, innovation and commercialisation are three different prospective, which cannot be
controlled without a supportive leadership vision. Amazon has introduced “Just walk out
shopping”, where more technological improvement has been applied. Therefore, workers should
have the understanding about such technological innovation to maintain the functional standard
at all level.
Amazon Go has taken support of machine learning and artificial intelligence. Leaders has taken
support of situational leadership theory and transformational understanding to accelerate
standard customer=driven standard objectives in the service process of Amazon Go. Through the
understanding the vision of service, leaders have supported the organisation to be a frontier part
of low-margin grocery industry. In the service process of Amazon Go, vision has been applied.
This vision is to be earth’s most customer centric company. Through this understanding, leaders
and workers has played major role to apply innovation on behalf of people. Situational
leadership has been applied here for creating impact on daily basis work, which is performed by
the employees. The leadership principle is applied here to invent and simplify the customer
driven attributes. According to Gibson (2016), workers are performing as per the leader’s
direction of strategic vision. In case of Amazon Go, entire inventory innovation on transaction,
billing and ordering process is maintained through the support of technology. However, this
technology cannot be applied without standard as well as knowledgeable performance of
workers. Therefore, current success of Amazon Go is the primary evidence of their positive
leadership and teamwork in regards to innovation as well as commercialisation.
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