Innovation and Commercialization: A Case Study of Amazon Go

INNOVATON AND COMMERCIALIZATION
1

Table of Contents
Introduction................................................................................................................................3
LO 1...........................................................................................................................................4
P1 : Explain the difference between invention and innovation and determine the importance
of innovation in comparison to invention in organizations like Amazon Go............................4
P2 : Explain how organizational vision, leadership, culture and teamwork can develop
innovation and commercialisation.............................................................................................6
LO 2...........................................................................................................................................8
P3 : Explain the 4P's of innovation and apply innovation funnel for Amazon Go...................8
P4. Explain and critically evaluate the role of Frugal innovation in development of Amazon
Go.............................................................................................................................................11
Conclusion :.............................................................................................................................12
References :..............................................................................................................................13
2

Introduction
Business development and growth in recent times is dependent on the ability of the company
to think of new ideas, and implement them in an effective way so that, customer needs are
met and the company can maximize its profit margins. n the extremely competitive global
market, company's won't be able to survive and make a mark without constant innovation and
invention and proper use of marketing strategies that can attract customers. This makes
innovation and commercialization the need of the century.
The chosen company in this study is Amazon Go. This study focuses on comparing
innovation with invention and the need of innovation and commercialisation in recent
times. Innovation funnel and Frugal innovation which are the strategies used in the
development of any organization are also key elements of this study.
3

LO 1
P1 : Explain the difference between invention and innovation and determine the
importance of innovation in comparison to invention in organizations like Amazon Go.
Invention and Innovation both are key elements in the foundation of any business
organization. Though both are mistaken to be the same, they differ significantly in meaning
when it comes to the idea of business.
Invention refers to a creative idea that can be applied in any business organization to
manufacture a different product, or to alter the processes involved in production so that it
requires minimum time and manpower, both of which brings increased amounts of revenues
to the company (Aleve et al., 2017). In context of the case study mentioned, Amazon has
opened corner stores which allow the customers to pick up their groceries just while passing
by , without having to wait for hours in the long queue, which saves a lot of the customers
time in today's fast moving lifestyle. This invention will increase the Amazon's customer
spectrum, and increase the company's profit margins.
Innovation on the contrary refers to the application of innovation which results in a the
production of a new product ,process of service, which is not only practical and economically
viable but benefits the customers and brings in huge profits to the company (Basaiawmoit, et
al 2017). Another Very important factor for innovation is that it has reproducible at a low
cost. Amazon Go is a successful innovation because it keeps in mind the needs of the
consumers and economically viable for the company which brings it high amounts of
revenues.
The differences between invention and innovation are summarised as follows:
PROPERTIES INVENTION INNOVATION
DEFINITION Invention refers to a creative idea
involved in the manufacture of a
completely new product.
Innovation refers to the
application of a creative idea
to produce a new product, or
to improve an existing
product, process or service.
REQUIRED SKILLS Mostly requires scientific thoughts
and ideas
This requires marketing
strategies, technological
4