Digital Disruption and Business Transformation

This assignment delves into Amazon's digital disruption and its impact on business transformation. It analyzes the changes in the Worldwide Customer Association (WCA) model from before to after the digital disruption. The WCA model consists of internal and external customers, products generated by the company, steps in business processes, participants, information about the business, and technology used. The assignment identifies key differences in these aspects after Amazon's transition to digital technologies, including a shift from human resource-based customer interactions to artificial intelligence-driven services.

Running head: WORK CENTERED IMPROVEMENTS
WORK CENTERED IMPROVEMENTS
Name of the student
Name of the university
Author note

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Executive summary
The report is aimed at understanding the different aspects of the change in the structure and the
functioning of the organization in order to facilitate the digital disruption. The digital disruption
of Amazon has helped the same in maintaining a balance in the need of the customers and the
value proposition of the products that are delivered by the organization to the customers. The
report aims at discussing the different recommended actions that might be taken by the company
and the manner in which the digital disruption affects the functioning of the organization through
undertaking the Work Related Analysis.

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Table of Contents
1. Background to the scenario.........................................................................................................3
1.1 Purpose of the report..............................................................................................................3
2. MATRIX FRAME WORK..........................................................................................................3
WORK CENTERED ANALYSIS BEFORE DIGITAL DISRUPTION....................................3
WORK CENTERED ANALYSIS AFTER DIGITAL DISRUPTION.......................................5
2. Assessment of the effect of digital disruption.............................................................................7
2.1 WCA before the digital disruption........................................................................................7
2.3 The transition.........................................................................................................................9
3. Recommendations......................................................................................................................10
3.1 The determination of the customer needs............................................................................10
3.2Understanding the capability of the organization.................................................................10
3.3 An audit on the uncertainties...............................................................................................10
4. Implementation Plan..................................................................................................................11
5. Conclusion.................................................................................................................................12
References......................................................................................................................................13
Appendix........................................................................................................................................15

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1. Background to the scenario
The digital disruption helps in determining the different aspects of the transition in the
functioning and the structure of the organization in the market. The digital disruption that
occurred at Amazon has helped the organization in bringing forth improvements in terms of the
functioning of the business as per the needs of the customers (Antonelli 2014). The technological
change in the organization has affected the value proposition in the market. On the other hand,
there are other implications based on the functioning of the human workforce who were
substituted with the utilization of machine and the artificial intelligence. It has affected the
functioning of the organization as peer the needs of the consumers in the market.
1.1 Purpose of the report
The main purpose of the report is based on the understanding of the different aspects of
the transition in the business model in the organization and the value that is being proposed by
the organization in the market. it also helps in determining the competitive position of the same
in the market. The report enumerates the assessment of the effect of the digital disruption
through the work centered analysis before and after the disruption. It also enumerates the
recommendations and an implementation plan for the organization, which will be helping the
same in coping up with the challenges of the disruption.
2. MATRIX FRAME WORK
WORK CENTERED ANALYSIS BEFORE DIGITAL DISRUPTION
CUSTOMERS
 Young and potential customers within
PRODUCTS & SERVICES

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the age limit 18- 67 years.
 Urban and rural customers
 Switchers and the soft core loyal
customers depending on the regions of
functioning
 The company facilitates the customers
with a wide range of products from
electronic gadgets to the home decors
that are suitable for the wide variety of
the customer needs.
WORK PRACTICES (MAJOR ACTIVITIES AND PROCESS)
 Undertaking an analysis of the customer needs through the determination of the
feedbacks. It helps the organization in maintaining the balance in the functioning of the
organization in determining the trends that affects the performance of the organization in
the market.
 Locating the customer through the utilization of the radar to deliver the needs of the
customers
 Utilization of the human resource to reach out to the customers in the respective market
PARTICIPANTS
The suppliers and the
collaborators of the
business are regarded as
the main participants on,
which the organization
determines the smooth
functioning of the same.
INFORMATION
 The usage of the
employees database and
the determination of the
feedbacks of the
customer and registering
them in the database
helps the organization in
bringing forth continuous
TECHNOLOGIES
 The AI technology that
is used by the
organization helps in
determining the
preferences of the
customers.

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modifications in the
functioning of the
business.
INFRASTRUCTURE • The infrastructure of the organization and the systems that
are undertaken by the business clearly supports the activities
that are planned by the organization. The large warehouses
and the retail outlets have helped in reaching out to the
consumers. On the other hand, the different facilities that
are provided by the organization relating to the customer
services is also facilitated through their service centre.
ENVIRONMENT • The political and the legal environment has supported to the
growth of the organization in the market. On the other hand,
the different aspects of the environmental fluctuations affect
the functioning of the organization while transporting their
products to the different regions.
STRATEGIES • The strategies that are applied by the organization in the
market conditions reflect the objective of the organization to
retain the loyalty of the customers.
WORK CENTERED ANALYSIS AFTER DIGITAL DISRUPTION
CUSTOMERS
 The potential customers ranging from
PRODUCTS & SERVICES

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the amateurs to the professionals
 The hard core loyal customers and the
switchers
 Urban and the rural customers
 The costly commodities and the
gadgets that the customer can use on a
daily basis ranging from home décor to
the personalized products
WORK PRACTICES (MAJOR ACTIVITIES AND PROCESS)
 The analysis of the needs of the customers through the feedbacks
 Recordkeeping of the demand of the customers based on the region and the cultural
backgrounds of the customers
 Undertaking the collaborations with the different companies in the regions to satisfy the
needs of the customers
 The utilization of the CMS and the AI technology for identification of the needs of the
customers
 The utilization of machinery in the place of the human workforce for efficiency in the
practices
PARTICIPANTS
 The collaborators
 The suppliers
 The customer care
units for providing
after sale services
INFORMATION
 The maintenance of the
database of the clients to
determine the demands
 A team of experts to
adhere to the
requirements of the
clients through the
analysis of the feedbacks
TECHNOLOGIES
 The implementation of
the AI technology
 The usage of the CMS
to design the proper
functioning of the
webpage that are made
available to the
customers

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  The implementation of
the smart machinery to
replace the human
workforce for
maintaining the
efficiency of the
performance
INFRASTRUCTURE  The expansion in the infrastructure of the business in order
to facilitate the huge demands of the customers
 The warehouse facilities for the storage of the goods in a
safe and secured manner
ENVIRONMENT The political and the legal environment is favorable for the
expansion of the company in the different countries. The quality
management systems of the organization have helped the same in
exceeding the benchmark. On the other hands, the stable economic
condition of the business has helped the same in keeping away from
the fluctuations in the market.
STRATEGIES The strategies that are implemented by the organization has helped
in the growth of the same in the market structure and the
functioning of the business in the market.

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2. Assessment of the effect of digital disruption
2.1 WCA before the digital disruption
The company,Amazon, is an American e-commerce organization that was founded by
Jeff Bezos in the year 1994. Since its inception, the company has undertaken various
technological innovations that have helped the company in bringing forth improvements in the
structure and the functioning of the business in the international markets. Before the year 2012,
the company took steps to identify the different needs of the consumers through their traditional
manner of documentation. It helped the organization in recommending new commodities to the
customers in the market (Miller and Rice 2013).
On the other hand, the human workforce was engaged in order to perform the smooth
functioning of the processes that were undertaken by the organization. It has affected the
organization through the expansion in the costs that the company had to spend for undertaking
their specific operations. The revenue of the company in the year 2012 was US$ 74,452, which
was higher than that of its previous year revenue (Annualreports.com 2018). However, the
competitive position of the organization was lagging due to its chief competitors in the market.
The major aspects of the change in the fiscal year were based on the developments that were
undertaken by the company based on the understanding of the needs of the customers
(Christensen 2013). However, the structure and the functioning of the organization faced
challenges due to the strikes and the malfunctioning of the workforce, which affected the smooth
functioning of the organization.

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The other aspects that affected the functioning of the organization was based on the lack
of the utilization of the proper digital media channels which affected the company’s
understanding relating to the needs of the customers (Camisón and Villar-López 2014). It has
affected the functioning of the organization relating to the determination of the change in the
preferences of the customers. The company was unable to track the different needs of the
customers, which affected their offerings and the value proposed by the same in the market.
2.2 WCA after the digital disruption
The digital disruption that was undertaken by the company in the year 2014 has reflected
the profitability through the revenue that was created by the organization by the end of the year
2015, which was around US$ 107,006. It reflected the positivity of the disruption and the manner
in which it has affected the value proposition of the organization in the market
(Annualreports.com 2018). The organization invested their resources on the implementation of
the different technologies that are aimed at bringing in the change in the functioning of the
organization in the market (Antonelli 2012). The installation of the artificial intelligence and the
usageof the software for tracking the preferences of the customerhave helped the organization
in making recommendations based on the preferences. Suppose for example, a customer looks
into their webpage for buying an Android, the CMS (Content Management System)and the
AI(Artificial Intelligence) technology of the organization recommends the customer to make a
buy of the compatible headsets. It has helped the organization in increasing their sales worldwide
(Behrendt 2012).
On the other hand, the implementation of the machinery has helped the organization in
bringing in efficiency in their functioning in the markets (Castelvecchi 2015). The proper

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utilization of the machinery has helped the organization in bringing in transition in their
business models and the functioning based on the identification of the preferences of the
customers (Topol and Hill 2012). The intelligent mechanism system of the organization
enhanced the functioning of the workforce, as it is an accurate means of undertaking the
processes that are planned by the organization.
2.3 The transition
The transition that was undertaken by the organization has helped in determining the
technological innovation and the sustenance of the same in the international market (Scholz
2017). The transition that was undertaken by the company added to the value proposition that is
promised by the organization to the customers. On the other hand, the determination of the
preferences of the customers has helped the organization in amending the customers with their
requirements (Priceand Flach 2017). The determination of the requirements of the customers has
helped in determining the change in the structure and the functioning of the organization in the
market. The digital disruption has helped the company in bringing forth improvements in the
structure based on the understanding of the requirements of the customers and he smooth
functioning of the processes that are undertaken by the same.
3. Recommendations
The recommended functions that might be undertaken by the organization is based on
bringing in the modifications in the situation of the same in the international markets. This
section of the report enumerates the recommended actions that might be undertaken by the
organization in order to facilitate the improvements on the structure.

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3.1 The determination of the customer needs
The determination of the different customer based on their preferences and thereby
segmenting the target customers based on the preferences will be helping the organization in
bringing in changes in the products that are offered by the same. The digital disruption that is
being undertaken by the organization offers certain challenges based on the uncertainties as per
the market conditions. The installation of the CMS and the AI has helped the organization for
understanding the needs of the organization. However, the proper implementation of the different
technologies might be a challenge for the organization.
3.2Understanding the capability of the organization
The understanding of the capability of the organization helps in determining the change
in the structure and the functioning of the business in the market. The determination of the
capabilities of the organization helps in implementing the correct approach of the technology as
per the requirement of the organization.
3.3 An audit on the uncertainties
An internal audit must be undertaken by Amazon in order to determine the possible
threats that might be faced by the company through the transition that is planned by the same. On
the other hand, the implementation of the technology will help the company in excluding the
interference of the human workforce. However, the company must also take steps to ensure that
the technological processes function accordingly based on the changes in the situation of the
organization in the market. An audit on the uncertainties will be helping the organization in
determining the possible threats that might be encountered by the organization while determining
the change in the processes of the organization.

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4. Implementation Plan
This section of the report is aimed at forming an implementation plan, which will be
helping the organization in order to determine the improvement that is planned by the
organization in the market.
Elements Time
required
Status
Implementation of the
CMS
2 months The proper implementation of the CMS has helped the
organization in bringing in the required changes based on
the understanding of the systems of the transition in the
market.
Implementation of the
AI
7 months The utilization of the AI helps the organization in reading
the preferences and the choices of the customers and thereby
recommends products accordingly.
Implementation of the
high tech machinery
4 months The high tech machinery of the organization has helped the
organization in excluding the human workforce thereby
enhancing the functioning.
5. Conclusion
Therefore, from the above analysis it can be stated that the technological advancements
that are undertaken by Amazon is based on the understanding of the change in the environment
and the market. On the other hand, the determination of the needs of the customers has helped
the organization to undertakethedigital disruption. The disruption has helped the organization in

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maintaining its sustenance in the international market. The enumeration of the challenges and the
recommended actions that might be undertaken by the organization in sticking on to the
transition helps in determining the growth of the organization.

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References
Annualreports.com (2018). [online] Annualreports.com. Available at:
http://www.annualreports.com/HostedData/AnnualReportArchive/a/NASDAQ_AMZN_2014.pd
f [Accessed 9 Apr. 2018].
Antonelli, C., 2012. The economics of localized technological change and industrial
dynamics (Vol. 3). Springer Science & Business Media.
Antonelli, C., 2014. The economics of innovation, new technologies and structural change.
Routledge.
Behrendt, W., 2012. The interactive knowledge stack (IKS): A vision for the future of CMS.
In Semantic technologies in content management systems (pp. 75-90). Springer, Berlin,
Heidelberg.
Camisón, C. and Villar-López, A., 2014. Organizational innovation as an enabler of
technological innovation capabilities and firm performance. Journal of business research, 67(1),
pp.2891-2902.
Castelvecchi, D., 2015. Artificial intelligence called in to tackle LHC data
deluge. Nature, 528(7580), pp.18-19.
Christensen, C., 2013. The innovator's dilemma: when new technologies cause great firms to fail.
Harvard Business Review Press.
Kaufer, D.S. and Carley, K.M., 2012. Communication at a distance: The influence of print on
sociocultural organization and change. Routledge.

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Miller, E.J. and Rice, A.K. eds., 2013. Systems of organization: The control of task and sentient
boundaries. Routledge.
Price, S. and Flach, P.A., 2017. Computational support for academic peer review: A perspective
from artificial intelligence. Communications of the ACM, 60(3), pp.70-79.
Scholz, T., 2017. Uberworked and underpaid: How workers are disrupting the digital economy.
John Wiley & Sons.
Topol, E.J. and Hill, D., 2012. The creative destruction of medicine: How the digital revolution
will create better health care (p. 2). New York: Basic Books.