Alexa –Amazon: Innovation and Business Development Report

This report discusses the latest product innovation Alexa, a smart virtual assistant developed by Amazon, and its impact on the market and various organizations. It also provides an overview of Alexa, its use, important milestones, and future developments.

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Alexa –Amazon
Innovation and Business Development
Report
Student
9/18/2019

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Executive Summary
Innovations mean introducing news ideas and strategies, which can be implemented to cater the
needs of society by providing feasible solutions to the problems. In this assignment, the focussed
has been placed over the latest product innovation in which Alexa is considered is as a smart
virtual assistant developer, which has been launched in the market by Amazon. In the
assignment, the overall effects of the Alexa over the market and the various organizations have
been discussed.

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Contents
Introduction............................................................................................................................................3
Innovation..............................................................................................................................................3
Product Innovation.................................................................................................................................3
Overview about Alexa...........................................................................................................................4
Use of Alex............................................................................................................................................5
Important milestones for this innovation...............................................................................................5
Impact of Alex over various organizations............................................................................................7
3 future developments of this innovation for organizations..................................................................8
Elevator Pitch.......................................................................................................................................10
Conclusion...........................................................................................................................................12
Bibliography........................................................................................................................................13

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Introduction
With the constant changes in the business environment, the demand for innovation has been
increased at every level management, Even its demand can be seen in emerging E-Commerce
Companies, which has eventually placed emphasizes over the product Innovation Alexa, which
is a virtual assistant launched in the market (Dwyer, 2019). Its voice interacting features makes
it unique and creative product innovation. Through this assignment, a brief discussion in the
context of innovation and its sub-part that is product innovation will be provided. Along with
that, the focal point of the report will be the analyses of the stages of development of Alexa from
its introduction in the market and its prevailing impacts over the organization will be displayed
(Life wire , 2018). At the end of the report, 3upcoming development for the organization in the
context of Alexa will be discussed.
Innovation
In the business terminology, innovation means the implementation of new strategies or new
plans and designs that can be installed in the device (machinery) or can be used in the form of
new techniques. Innovation involves identifying the problems and solving them by providing
unique and exclusive solutions to society. Such innovations can be accessed by the people in the
form of product, process, and technology (Dwyer, 2019).
Product Innovation
Product Innovation means manufacturing new, exclusive good or re-launching the existing
product with new technology or features which can increase its usefulness and value in the
market. Inventions can be observed in the utilization of the products or in its procedure

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(Innovation Tactics , 2018). Car manufacturing companies launching a new model of a car every
year, and smartphone companies are bringing the updated version of the mobile devices. All this
count as an example of innovation.
Overview about Alexa
Alexa is an exclusive digital voice supporter launched by Amazon in November 2014. Its
functionality was first observed in Amazon Echo and Amazon Echo Dot, which is a wireless,
sound play device developed by Amazon Lab 126. Along with the Amazon Echo, its usefulness
can be observed in Smartphones. As per the latest development in the software, more than
90,000 of the expertise are available in the Amazon Alexa (Innovation Tactics , 2018). Some of
its expertise includes creating the list of daily tasks or activities, time management by setting the
alarms and providing the latest information about politics, on-going trends in fashion, market,
weather, and traffic (King, 2019).
Originally, the idea development of the Alexa has been generally inspired by the artificial voice
track used in the Star Trek TV show. The Amazon has selected the X alphabet in this automatic
and artificial intelligence as people talking and asking Alexa can be easily recognizable by this
product. Like various latest innovations, Alexa can be placed in 3 major categories as product
innovation, process innovation, and design innovation, as it is a smart technology, which can
monitor other applications by using home designed technology. Even the customer can maximize
their utilization of Alexa by updating their version. Alexa is an artificial intelligence consisting
of a wide range of data, which has initiated deep learning (Dawar, 2018). The demand for
Dubbed Alexa, which is an Amazon AI, is so popular that it has become household names for
majority of the customer. Besides this, Alexa is considered, as a secret agent as it also comprises

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various hidden features like if consumers can insist on Alexa play Rock, Paper games. Moreover,
the design guide of Alexa revolves around situational design where the skill builder can develop
more participative and habitual skills in Alexa. In 2019, Alexa will be launching in the market
with I Robot ( discussed in future development in the following report) (Life wire , 2018)
Use of Alex
Alexa maximizes the satisfaction of the customers by operating as a private supporter. Through
Alexa, customers can easily be accessed to information and along with that, it can also monitor
other devices. It effectively answers questions asked by customers related to traffic, sports,
entertainment, and knowledge. Besides this, it manages the calling systems and prepares the
grocery list so that double entry of each item could be avoided. For the lifestyle enhancement,
potential clients can further utilize Alexa Skills, which can convert the ordinary environment of
the home into the home automation hub. With the assistance of this artificial intelligence, people
can optimistically prepare and plan for holidays trips for relaxations (Koksal, 2018).
Important milestones for this innovation
With the beginning of the era of advanced technology, Amazon had launched Alexa in the
competitive and challenging trade market. Initially, it was introduced as a wireless, voice device
with an in-built virtual supporter, but now they are more than thousands device, available in the
market Until now Alexa has achieved exceptional growth by not limiting itself to a particular
domain and expanded the scope of its expertise by developing into powerful medium of
providing information (Chung et al., 2017). Today Alex is present everywhere, whether it is
entertainment or communication. Even though its product, people can curb their loneliness by
interacting with Alexa. In the entertainment sectors, customers through the voice assistant in

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Amazon Prime Video can give a various command like" Alexa records the movie XXX”, Alex
plays the TV series FRIENDS" Such kind of communication with Alexa can be conducted with
it by installing the system in every corner of the houses. Through such intercom channels,
family members can talk with each other like “Alexa, play the song for someone speciall (Perez,
2019). Besides this, it converts ordinary homes into a smart home by controlling the light
system. For example, when clients move out or go anywhere outside the home, then Alexa
automatically turns off the lights. Smart plugs like Alexa turning on and off the electric home
devices (Lepitak, 2018).
Its working and usefulness can be observed in Laptops and Personal Computers in which Alexa
supports the software of an internal system of computer devices where it efficiently saves the
time of the clients by enabling the verbal typing than the manual typing. In the home
entertainment device, it regulates internal system. (Kinsella, 2019) To utilizes this application,
enrich the experience attains utmost satisfaction and value, potential customers can download
through Fire OS 5.3.3 or higher Android 5.1 or higher OS 11.0 or higher. Form past few years,
Alexa has shown exceptional growth in the market of virtual assistant and artificial intelligence.
In October 2017, more than ten million customers had bought Alexa supporting devices (López
et al., 2017).

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Impact of Alex over various organizations
Figure 1
Source: (Kinsella , 2019)
For Alexa 2017 was considered to be as one of the profitable years as the company made sales
of over 10 million, where the company had manufactured and supplied about 24, 000 in the
global market. As per the report published by RBC Money Market expert Mark Mahaney,it has
been estimated that in the upcoming years Alexa will emerge as strong competitors other
companies like Google Assistant and Apple Siri as it will be generating $18 billion to $19
billion, by 2021. In developed counties like Australia and Canada, Alexa has already made its
place and retains a strong position in the market. In Australia, more than 20,000 skill of Alexa is
operating in the market. The demand of the smart speakers in the Australian market has
overtaken the market of U.S. In 2018, it was observed in 5.7 million, about 29.3% of adults have
wireless and voice support speakers. According to Edison Research Today, Alexa retains 78% of
global market share in the latest technology and product innovation market. (Perez, 2019)

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Figure 2
Source: (Kinsella , 2018)
With the latest updates and versions, Alexa is giving strong competitions to its rival companies
that is Apple Siri and Google Assistant. As Amazon has brought product innovation, it has
outperformed Apple’s voice assistant “Siri” as Apple was not able to take the risk, and did not
install interactive skills in Siri, due to which the usefulness of this application became limited.
Whereas Alexa interacts and communicates effectively with the customers, therefore there are in
more demand than Siri. Its impact can be observed on Google as it has also introduced a home
control system and now is preparing to give competition in the market. Google's artificial
intelligence study, has been displayed in the manual car projects (Kinsella , 2019).
3 future developments of this innovation for organizations
Alexa is considered to be an as strong and premium voice support system, which has made a
placed in the hearts of millions of customers. According to the Business Insider Intelligence

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Team by 2024, the demand of the Alexa will increase in such a way that about 500 million smart
speakers will be supplied in the market to meet the needs of potential customers. Besides this the
Alexa to improve the performance, Amazon is moving forward, which can be perceived as 3
main future developments.
1. The company has acquired a patent right , which permits Alexa to conduct activities
without any challenges and triggers. The company will be launching a new system that
through its assistance consumers can directly communicate to play news without uttering
the name of the assistant. Through such small changes, customers can interact with
Artificial intelligence more effectively (King, 2019).
2. The company is planning to enhance its designs by updating its camera base look which
can lead to the transformation of Echo Look. Amazons engineers are conducting
research, where the 3Model based on the examinations of images and videos (Oveden,
2019) .
3. The third and major development which can be done is relaunching of IRobot with
Alexa so that Robots with the voice controller can enrich the experience of the
customers where the I Robot while mopping and cleaning can perceived instructions

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Elevator Pitch
Figure 3
Source: (Kinsella, 2019)
When it is talked about the product innovation that has made the life of many people easier, what
comes in mind is Alexa, Alexa is a virtual assistant and one of the best innovations of Amazon
that has happened so far. Its unique feature of communicating and interacting with the customers,
makes it different and exclusive from the rest of the advanced technology products that are
available in the market. Its functionality can be observed in Amazon Echo while watching
Amazon prime video and other smart speakers (Dawar, 2018). Alex is a diversified app, which
not only controls the functioning of other compatible devices but also manages and plans the
schedule of the customers so that potential customers can systematic manage their lives and time
(López et al., 2017). Alexa along with it, provided the latest news to the customers at any places
and it has been observed that till now, over 25 million smart speakers have been sold in the
market and it will be expanding its product in 2020. With exclusive features, Alexa is giving tuff
competition to other artificial intelligence innovative products (Lopatovska & Oropeza, 2018). In

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Australia, Alexa can receive favourable conditions to operate and take over the market as it can
be observed that young people of Australia are very much interested in advanced technological
apps and have owned smart speakers (Lopatovska et al., 2019). One of the best feature of Alexa
that it can easily and effective convert the ordinary environment of home into smart and
attractive Even Alexa control the light system. In other words, this means that when the client is
somewhere outside and has forgotten to turn off the lights, Alexa on his/her behalf conduct this
actively thus saves time and energy. It is considered to be as best interactive app therapy as
people can talk to Alexa anytime and regarding anything. It also helps people by providing
solutions to problems. From the time, it has become best friends to human beings (Lopatovska &
Oropeza, 2018). Therefore, it is profitable to purchase these pocket-friendly products.

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Conclusion
It can be concluded that in the advanced and challenging environment, there is a need for
innovation in every field or sector of the economy whether it is product or service. In the above
assignment, the focus has been placed over the product innovation Alexa. Alexa is a smart
virtual assistant that which has been, launched in the market by Amazon Such innovation has
made the life many people easier as it assists the clients in plans. It works according to the
instruction provided by the customer.

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Bibliography
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Digital Investigation, 22(1), pp.15-25.
Dawar, , 2018. Marketing in the Age of Alexa. [Online] Available at:
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Innovation Tactics , 2018. Amazon business model: Alexa, Echo. [Online] Available at:
https://www.innovationtactics.com/amazon-business-model-alexa-echo-ai/ [Accessed 2019
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Kinsella , B., 2018. There are Now More Than 70,000 Alexa Skills Worldwide, Amazon
Announces 25 Top Skills of 2018. [Online] Available at: https://voicebot.ai/2018/12/14/there-
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Kinsella , B., 2019. Amazon Alexa Skill Counts Rise Rapidly in the U.S., U.K., Germany, France,
Japan, Canada, and Australia. [Online] Available at: https://voicify.com/amazon-alexa-skill-
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López, G., Quesada, L. & Guerrero, L.A., 2017. Alexa vs. Siri vs. Cortana vs. Google Assistant:
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