Innovation in Amazon

Running head: INNOVATION IN AMAZON
Innovation in Amazon
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INNOVATION IN AMAZON
Table of Contents
1. Introduction:................................................................................................................................1
Part 1.1. Three hot topic about innovation in Amazon:...................................................................1
Part 1.2. Idea for an innovative product:.........................................................................................2
Part 1.3. Streamlining of innovation with current capabilities of Amazon:....................................2
Part 2.2. Body:.................................................................................................................................3
Part 2.1. Design thinking for the innovation:..................................................................................3
Part 2.2. User involvement:.............................................................................................................6
Part 2.3. Fast integration-time, cost and resources:.........................................................................7
Part 2.4. Prototyping and testing capabilities:.................................................................................8
Prototype:.....................................................................................................................................8
Testing capability:.......................................................................................................................9
Part 2.5. Cross functional management:........................................................................................10

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INNOVATION IN AMAZON
1. Introduction:
Innovation can be defined as development of a new idea or product to serve an
emerging need in the market. Sisodia (2016) mentions in this respect that innovation has
emerged as one of the most important drivers of sustainability in the global industry. The
ecommerce industry is one of the most innovative industry in the world led by multinational
ecommerce companies with immense financial and technological base to bolster their
innovations. The paper would delve into an imaginary innovative product which would be owned
by none other than Amazon, the largest ecommerce company in the world. An exploration of
three topics regarding the company would set the background of the study.
Part 1.1. Three hot topic about innovation in Amazon:
Hot topic 1: Free Food isn’t enough—How Amazon beats Google in Innovation:
The article published in the Forbes magazine sets the perfect stage for the study by
comparing between Amazon and Google on the parameter of innovation. The article mentions
that the innovation score of Amazon is 166.3 compared to 95 achieved by Google (Forbes.com,
2018). This innovative power of Amazon can be attributed to the power of the company to base
its innovation on customers’ needs and employ experts for short span of time to utilise their
talents.
Hot topic 2: Amazon's arrival set to shake up Australia's retail sector:
The second article taken into account was published by The British Broadcasting
Corporation and advertises Amazon’s power to influence its competitors even in market where
ecommerce giant enters newly (BBC.com. 2018). The article points out that when Amazon
declared its intention of entering the Australian ecommerce market, the share price of resident

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INNOVATION IN AMAZON
Australian retail chains dipped. This dip shows that ecommerce is not only capable of
influencing the revenue generation of its competitors but also their capital generation.
Hot topic 3: Amazon’s Third-Party Sellers Hit By Hackers:
The article containing the aforementioned title was published in the Walls Street Journal
and points out the darker side of ecommerce business of Amazon, cyber theft. The article
mentions that hackers are targeting the third party sellers of Amazon and stealing the financial
resources by making fake deals. The article further mentions this data theft is detrimentally
effecting the brand image and customer satisfaction of Amazon (WSJ.com, 2018).
Part 1.2. Idea for an innovative product:
The innovative product which Amazon would develop is a secured payment gateways.
The gateway would require the customers put in their identity details in order to enter the portal
of Amazon. The portal would only allow customers carry on further functions like ordering of
items subject to the authentication of the details by specific government body which had issued
the identity proof whose details have been used. The payment gateway would enable customers
make payment secure and reduce cyber theft. It can also be pointed out that the product portfolio
of Amazon is vast consisting of both consumer goods as well as industrial goods. Thus, the
innovative payment gateway would provide security of payment to both domestic consumers and
industrial consumers. Thus, in other words the payment gateway would be totally aligned
with global product portfolio of Amazon.
Part 1.3. Streamlining of innovation with current capabilities of Amazon:
The new innovative payment system is perfectly aligned with the current capabilities of
Amazon. Wang, Li and Wang (2015) point out that in order to take maximum advantage from