Innovation and Commercialization: A Case Study of Amazon Go

INNOVATION AND COMMERCIALIZATION

Table of Contents
EXECUTIVE SUMMARY...................................................................................................................3
INTRODUCTION............................................................................................................................. 4
TASK 1............................................................................................................................................ 5
P1 EXPLAIN INNOVATION AND DETERMINE ITS IMPORTANCE TO ORGANIZATION IN
COMPARISION WITH INVENTION..............................................................................................5
M1 ANALYZE DIFFERENT SOURCES OF INNOVATION, AND HOW ORGANIZATIONS CAN
FOSTER AND DEVELOP AN ENVIRONMENT................................................................................7
P2 EXPLAIN HOW ORGANIZATIONAL VISION, LEADERSHIP, CULTURE AND TEAMWORK CAN
SHAPE INNOVATION AND COMMERCIALIZATION......................................................................9
TASK 2.......................................................................................................................................... 11
P3 EXPLAIN THE 4PS OF INNOVATION AND EXPLAIN THE USE OF THE INNOVATION FUNNEL
TO EXAMINE AND SHAPE INNOVATION IDEAS........................................................................11
M2 ANALYZE AND APPLY THE INNOVATION FUNNEL IN ORGANIZATIONAL CONTEXT OF
AMAZON GO............................................................................................................................ 13
P4 EXPLAIN DEVELOPMENTS IN FRUGAL INNOVATION AND PROVIDE EXAMPLES OF HOW IT IS
USED IN THE CONTEXT OF AMAZON GO..................................................................................15
M3 EVALUATE THE ROLE OF FRUGAL INNOVATION IN AMAZON GO......................................17
TASK 3 & 4................................................................................................................................... 18
CONCLUSION............................................................................................................................... 32
REFERENCES.................................................................................................................................33

EXECUTIVE SUMMARY
This report is about background information to explain the context for innovation at Amazon
Go. The company is facing the issues while generating sales in the market and this issue could
be solved by implementing the concept of innovation and commercialization in the company.
This report will help the management in developing the theories for the development of the
business.

INTRODUCTION
For the succession of business, it is important to continuously implement innovation in the
product and services of the organization. It has been observed that new business and
organization using innovative techniques for managing their business operations. The purpose
of this report is to recognize the concept of innovation and invention in the context of Amazon
Go and it also determines the difference between invention and innovation. The report also
examines the culture to develop the innovation and commercialization in the organization. It
analyzes the different type of innovation and concept of innovation funnel for the development
of innovative ideas within the business. It evaluates the role of frugal innovation in the
development of Amazon Go.

TASK 1
INTRODUCTION
Innovation means to bring the new ideas and measure into the existing product. The aim of this
report is to explain the innovation at Amazon Go and determine the differences between
innovation and invention. Along with that, it discusses sources of innovation to critically analyze
the role of frugal innovation in the development of Amazon GO.
P1 EXPLAIN INNOVATION AND DETERMINE ITS IMPORTANCE TO
ORGANIZATION IN COMPARISION WITH INVENTION
Innovation is one of the important factors that help in the development of the business.
Innovation is an effective process, which helps in obtaining uniqueness and creativeness in the
existing product and services of the business (Dmitriev, et al. 2016). It is the process where the
new methods and techniques are used and it also increases the functioning of business
operations. The invention is the process of converting the technical ideas into the new and
innovative product, which was not in existence before the procedure of the invention. The
launch of Amazon Go is the invention by Amazon, where they innovate the concept of
advanced shopping technology.
IMPORTANCE OF INNOVATION TO ORGANIZATION OF AMAZON GO
The Amazon Go is the online grocery store, which is operated by Amazon. It is automated
through which customers can purchase the grocery products without the use of cashier and a
checkout. This will help the company to obtain the profit from the new products and the
organization can also use updated technologies for influencing a large number of customers
having different choices and also gain the competitive advantage in the market.

COMPARISON BETWEEN INVENTION AND INNOVATION
SOURCE OF COMPARISON INVENTION INNOVATION
DEFINITION It is the process of
transferring the technical
ideas into new and
innovative products which
do not exist before the
process of the invention
within the organization
(Zadeh, et al. 2016)
It is the procedure of
implementing new ideas in
existing products for which
the customers will pay freely
is considered as the process
of innovation.
ORIGIN The origin of the concept of
the invention is to generate
novel ideas.
The concept related to the
innovation is to executing
ideas practically in existing
products of Amazon Go.
MANDATORY SKILLS Research and technical skills Promotional, planned and
technical skills are required
under innovation.
EMPHASIS The invention process is
focused only on the
development of a single
product.
The innovation process is
focused on the altering and
making existing products
better and influencing for
customers.

M1 ANALYZE DIFFERENT SOURCES OF INNOVATION, AND HOW
ORGANIZATIONS CAN FOSTER AND DEVELOP AN ENVIRONMENT
Innovation has several sources which are implemented by Amazon Go and influence the large
number of customers towards the product and services offered by Amazon Go. The sources of
innovation are as follows:
 Change in Perception
The creative thinking of different people develops the concept of innovation in the
Amazon Go (West, 2014). It uses new and updated techniques due to this the
perception of people change.
 Demographics
Innovation also gets influenced by the aspect of age, area, geographical phases,
individuals etc.
 Industry and Market Structures
The innovation brings changes when the demand for market changes. The current
market demands updated technologies and online shopping of the grocery store. This
leads to developing Amazon Go to fulfil the needs of the market structure of the
economy.
 New Knowledge
Obtaining information and new and creative knowledge will help people in directing
processes and observations effectively that develop innovation.
 Process Need
If there is ineffectiveness in the operation of the business process then there is a need
for innovation in the organization.
 The Unexpected
Any occurrence of unexpected events such as succession and failure can also cause
innovation in the organization (Boor, et al. 2014).

 Incongruities
Under this, the company can think differently from the other competitors in the market
to attain the satisfaction of the customers. Through innovation, an organization can
perform differently in the market and can influence a large number of customers
towards their organization.
FOSTERING AND DEVELOPING A CULTURE AND ENVIRONMENT OF INNOVATION
Amazon Go develops and enhances the product and services of offering online grocery store
according to the requirements of the customers. Increase in the competition influences the
revenue of the organization. The existing process of Amazon Go needs to increase their security
system because it does not require any registration and check out. At Amazon, Go customers
can go to the store and take the things they want and leave the store. The organization use
computer vision, which can misuse some relevant information of the customer. Therefore it is
required by them to develop the technology to the great extent and also make sure about the
security of the customers (Berry, et al. 2018). The adoption of innovation in techniques and
working pattern of Amazon Go can smoothly perform the operations of the business. It is
helpful in building a healthy relationship with customers and gain a competitive advantage in
the market. Amazon Go brings a totally different concept where customers just need to install
the application and can pay for their products through virtual carts. The technology can itself
detect the things which are being purchased by the customers and also get the receipt on
Amazon account. This is the great innovation by Amazon group which brings the environment
of innovation.