This study aims to understand and explore the innovative practices utilized by Amazon Online and develop understanding on design thinking as an innovation strategy.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT Innovation and Sustainable Business Development Name of the Student Name of the University Author Note
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
1INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT Contents Introduction................................................................................................................................2 Amazon Online......................................................................................................................2 Design Thinking as an Innovation Trend...............................................................................2 Aim.........................................................................................................................................3 Discussion:.................................................................................................................................3 Inter-relationships between Key Concepts of Design Thinking:...........................................3 -Environment within the Organization:.............................................................................3 -Trend in Innovation..........................................................................................................3 -Strategy of Innovation......................................................................................................4 -Capabilities for Innovation...............................................................................................5 -Value creation...................................................................................................................5 -Capturing Innovation........................................................................................................5 Importance of developing innovation strategy.......................................................................6 Impact of the innovation trend on Amazon:..........................................................................7 Conclusion/ Recommendations:.................................................................................................8
2INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT Introduction: Amazon Online Amazon online is an online E-commerce retail business that is based in America and is one of the industry leaders in online retail. Amazon online boasts a huge variety in its inventory including products like computer peripherals, home wares, hygiene products, electronic equipment, games, software, music, toys, grocery items, accessories, clothing, books, toiletry, kitchenware. The company has significant investments in cloud computing and artificial intelligence which has allowed the company to achieve significant market success. With over hundred million subscribers it is the biggest Internet Company globally in terms of its revenue. Amazon online also has one of the biggest market captures due to which it runs ahead of its competitors such as Flipkart and Walmart. Various strategies and trends can be seen within innovative practices, one of which is Design Thinking which helped the company to overcome competition and maintain its position as the market leader. Design Thinking as an Innovation Trend Design Thinking refers to a process through which new ideas can be developed as an approach to implement innovation within practice. This trend implies a focus on the concepts of product design and therefore helps to identify innovations within the design process. Hence the name, Design Thinking. According to Liedtka (2013) and Filatro et al (2017)the Design Thinking process requires a cognitive as well as strategic and practical approach in which multiple domains of designs are considered and design cognition are identified which influences the design activity through the implementation of the design concepts. This
3INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT approach moreover, helps in the strategic implementation of innovation within product design (Brenner and Uebernickel 2016). Aim The following study aims to understand and explore the innovative practices utilized by Amazon Online and develop understanding on design thinking as an innovation strategy. Discussion: Inter-relationships between Key Concepts of Design Thinking: According to Royalty and Shepard (2018), several components are related with the process of Design Thinking. These components influence the businesses and business processes on a regular basis. By focusing on these componentsdesign thinking can be implemented strategicallyacrossvariousbusinessprocessesandtherebyensurebettersuccess. (Chesbrough et al. 2018) Outlined below are the key concepts of Design Thinking in the context of Amazon Online: -Environment within the Organization: The environment of the organization can be understood as the collection of factors, forces and institutions within which an organization exists and influences the operations and performance of the organization (Dutta and Folta 2016; Filatro et al. 2017)). According to Liedtka and Ogilvie (2011) the organization environment should focus on the development of acommunityofdesignersandmanufacturerswhocanco-existandcoevolveby implementing and supporting innovative practices and thereby facilitating creativity within the organization. The organizational environment is a key influencer and motivation of employee behavior and therefore their creativity and innovative ideas. It can therefore be suggested that the environment within an organization is an important factor that can
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
4INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT influence the trend of influence adopted in an organization (Liedtka 2013; Liedtka and Ogilvie 2011). -Trend in Innovation The trend of innovation can e understood as the practices that implement innovation ideas within an organization or an industry and thereby create new design for products and services. Amazon Retail utilizes the innovation trend of Design Thinking to implement new concepts for services and products and thereby support their market position as leaders (Liedtka 2015; Liedtka et al. 2013). One of the ey strength of the Deign Thinking process is that it helps in the development of innovative products keeping in mind the needs and expectations of the customers. According to Brenner and Ubrmickil (2016) , Design Thinking can assist both divergent and convergent validity of an idea where the main assumptions, principles as well as the processes an be analyzed and evaluated. The process of Design Thinking involves a wicked problem being identified followed by framing it effectively, focusing on possible solutions, reasoning on the solutions and identifying strategies that can be used to address the problems and creating ideas for the solution. the innovation trend therefore, integrally influences the innovation strategy that would be used in an organization (Martinez-Conesa et al. 2017; Ojasalo et al. 2015). -Strategy of Innovation Strategy of innovation is the procedure using which a business can implement innovative practices within its operations to improve its performance in terms of service or product quality, efficiency, productivity, affordability, and aesthetics (Pel 2016). This strategy is dependent on the innovative trend utilized by an organization through which it can address and solve a problem through an articulation of innovative concepts , sharing them and creating a pool of knowledge that can inform the decision makers and designers. The strategy is dependent on the innovative capabilities of a business and therefore is a factor that links the
5INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT innovation trends to the innovation capabilities. Amazon Online utilizes the strategy of process innovation and marketing innovation through which it can support better product deliveryandeffectivemarketing.Additionally,amazonalsohasstrongorganizational innovation that supports innovative changes in the workplaces and best practices (Royalty and Shepard 2018; Torres et al. 2018). -Capabilities for Innovation Capabilitiesforinnovationareanorganization’scapacitytodevelopandimplement innovativeideasinitsoperations.Thiscaninvolveusingcreativeandtechnological breakthroughs and restricting existing business processes to adapt to the new changes. The capabilitiesinfluencestheinnovativestrategiesusedbyanorganization.Transaction capability is one key innovation capability of Amazon Online that allows it to have efficient and profitable negotiations with the vendors and suppliers thereby ensuring a competitive price range for its products. The company utilizes the capabilities of creative abrasion (to generate ideas using discourse and debate), creative agility (to experiment and test using fast pursuing, reflection and adjustment) and creative resolution (to make integrative decisions that combines opposing or disparate concepts and ideas) (Royalty and Shepard 2018).
6INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT Fig 1: Three capabilities of Innovation. Source: Royalty and Shepard 2018 -Value creation Value creation refers to the development of added values for a product or service that can be used to attract customers. It uses the hypothesized value for a service or a product, based on design Thinking that connects the resources of the organization with the capabilities and develop creative or innovative ideas for the products or services. Amazon Online utilizes a combination of value innovation and technology innovation to create value for its products through its efficient pricing and better selection of technology. Additionally, Amazon also uses innovation to generate ideas, convert them into practice and diffuse them within the organization to create a value for all stakeholders (Pel 2016). -Capturing Innovation This is a strategy that can help an organization to understand an use innovative practice within its services and products thereby utilizing the benefits of innovative practices. According to Pel (2016) the capturing of innovation influences the creation of value within a product or a service and therefore influence the success of an organization in the market. This
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
7INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT can help a business to align its operational objectives with the strategic directions and implement innovative practices within the organization. Innovation capture is the final step within the innovation process which helps to put in action the innovative ideas (Ojasalo et al. 2015). Fig 2: Components of design thinking. Source: Ojasalo et al. 2015 Importance of developing innovation strategy The importance of developing innovation strategy is briefly outlined below within the context of Amazon Online: 1.New market capture: According to Martinez-Conesa et al (2017), design Thinking can help an organization to effectively utilize innovative practices and innovative ideas to design new products and services which keep in consideration the feedbacks, needs andexpectationsofthecustomersandtherebyattractthemmoreeffectively. Segments of customer market who are focus on product diversity, product quality, customer sensitivity and design efficiency can be effectively encroached through this innovation process. Liedtka (2013) suggested that through design thinking as an approach towards innovation an organization can improve its unique selling points and thereby help to attract the target audiences more effectively.
8INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 2.Developing the values of the products and services: the innovative practice has helped Amazon online to improve the values associated with its products and services and thereby improve the experience of the customers and create value for its product. This involves not only enhancing the features that are existing in the product but also developingnewvaluesthataredrivenbytheneedsoftheusersanddesign capabilities of the organization. Ultimately this approach helps to reach out to new customers through an improvement of the values and qualities of the products and service offered by Amazon. 3.Developinganeffectivebusinessmodel:TheinnovativestrategiesofDesign Thinking have helped amazon Online to create a business model that is effective and efficient and have assisted the organization to maintain its leadership position. This model has allowed Amazon to address the existing needs within an organization and havebetterproducttestingtherebyensuringconsistencyinproductquality. Innovative practices in business model therefore ensure Amazon to implement its creative and innovation ideas within the business processes and gain competitive advantage (Torres et al. 2018). Impact of the innovation trend on Amazon: The innovation trend of Design Thinking has offered many advantages for the organization allowing it to achieve market growth. The impacts of Design Thinking on the organizational process of Amazon are outlined below: 1.Better testing of products has been facilitate by the innovative practices through which a product can be tested from various angels and strategies and develop designs that are more resilient and are fault tolerant. This also helps to implement better quality products and services which can help it to maintain its position as a leaders in
9INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT the market. Innovation in product design has also helped Amazon to increase its diversity on its inventory allowing to reach a wider variety of customers through a wider diversity in products and services. 2.Keeping the customer expectations as a center of the business model has helped Amazon to address the needs and expectations of the customers and thereby improve their experience with the brand. This has also helped the company to develop a better brand image that its competitors. 3.A positive work culture has been developed through the innovation and creative directions of the management and develop and inclusive work culture that helps the organization to implement creativity and innovation in its work practices. Conclusion/ Recommendations: Few recommendations can be given to Amazon Online that can help it to address some of its key organizational challengesand effectivelyimplement innovativepractice within its business processes. These recommendations are outlined below: 1.Amazon should focus on a centralized discourse on innovative concepts in which important ideas can be labeled and a feedback system can be involved through which acommunicationcanbedevelopedbetweenthedevelopers/designersand users/customers (Liedtka and Ogilvie 2011). 2.To effectively organize its innovation activities, Amazon online should develop its capability of innovative leadership and mindful entrepreneurship. This can help the organizationtoimproveitstransactional,managerial,operationalandcreative competencies. The company should also focus on the scale of its business operations and approaches of management involved in the business transactions, supply chain and marketing strategies in order to achieve better success.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
10INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 3.The innovation initiatives that can be pursued by Amazon to optimize it Design Thinking process by focusing on development of talent within the organization. This approach can help Amazon online o nurture and grow the right kinds of talents and skills that can increase the pool of knowledge and ideas from which innovative an creative ideas can emerge. This aspect of supporting the development of human capital is therefore and important recommendation for Amazon Online. 4.In order to create and capture value from its innovative practices Amazon can increase its focus on what the customers expect from its products ad addressing those requirements effectively. This can also be supported by providing products and services at a more competitive price with better quality and superior product life (Liedtka 2015). 5.To ensure strategic alignment in order to address the trends in innovation, Amazon Online should focus to reduce uncertainties in their design of products and ensure the products are designed based on the allocated resources and capabilities of the organization. It should also take into consideration the wicked problem faced by the company and design products that are subservient to the solutions of those problems (Ojasalo et al. 2015).
11INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT References: Brenner, W. and Uebernickel, F., 2016. Design thinking for innovation.Research and Practice. Chesbrough, H., Lettl, C. and Ritter, T., 2018. Value creation and value capture in open innovation.Journal of Product Innovation Management,35(6), pp.930-938. Dutta, S. and Folta, T.B., 2016. A comparison of the effect of angels and venture capitalists on innovation and value creation.Journal of business venturing,31(1), pp.39-54. Filatro, A., Cavalcanti, C. C., and Muckenberger, E. 2017. Design Thinking and Online Education. Liedtka, J. 2013. Design Thinking: What it is and why it works.Retrieved from Design at Darden,UniversityofVirginiawebsite:http://batten.squarespace. com/storage/books-journals-articles/DSWP,1, 202-201. Liedtka, J. and Ogilvie, T., 2011.Designing for growth: A design thinking tool kit for managers. Columbia University Press. Liedtka, J., 2015. Perspective: Linking design thinking with innovation outcomes through cognitive bias reduction.Journal of Product Innovation Management,32(6), pp.925- 938. Liedtka, J., King, A., and Bennett, K. 2013.Solving problems with design thinking: Ten stories of what works. Columbia University Press. Martinez-Conesa, I., Soto-Acosta, P. and Carayannis, E.G., 2017. On the path towards open innovation:Assessingtheroleofknowledgemanagementcapabilityand
12INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT environmentaldynamisminSMEs.JournalofKnowledgeManagement,21(3), pp.553-570. Ojasalo, K., Koskelo, M. and Nousiainen, A.K., 2015. Foresight and service design boosting dynamiccapabilitiesinserviceinnovation.InTheHandbookofService Innovation(pp. 193-212). Springer, London. Pel,B.,2016.Trojanhorsesintransitions:Adialecticalperspectiveoninnovation ‘capture’.Journal of environmental policy & planning,18(5), pp.673-691. Royalty, A. and Shepard, S., 2018. Mapping and measuring design thinking in organizational environments. InDesign thinking research(pp. 301-312). Springer, Cham. Torres, A., Behe, B. and Barton, S., 2018. E-Commerce Adoption in the Amazon Era: Evidence from the Green Industry.