Amazon's Innovation Strategy: A Design Thinking Approach

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MGMT20132 - INNOVATION AND SUSTAINABLE
BUSINESS DEVELOPMENT
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Executive summary
The Innovation strategy of Amazon Company has a focus on designing thinking trend of the
organisation. There will be proper framing and structuring of the innovation trend of the
organisation. This is a major view of regarding organisational environment and innovation
strategy of the company. It shows the strategic alignment of innovation strategy. The alignment
shows the identification of workshops and seminars to develop innovative ideas for the
employee. The innovation initiative basically gives customer experiences, want to achieve more
customers.
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Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Discussion........................................................................................................................................5
Conclusion.....................................................................................................................................12
References:....................................................................................................................................13
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Introduction
Innovation strategy is the method of planning used to increase the market share or product
innovation when it comes to identifying and making a solution to the innovation plan, there must
also see product development. Innovation strategy is created for winning product which means a
product must be used in the attractive market. This assignment basically focuses on the design
thinking of the Amazon Company. Amazon is the American based company which is
established in Seattle, Washington. It focuses on the services and operations like cloud
computing as well as the artificial intelligence. Amazon is the biggest e-commerce market
platform. Amazon.com discovers by the Jeff Bezos on 5 July 1994. Mainly Amazon is the largest
employer company in the United States. It basically deals with the online shopping of goods and
services. This assignment basically focuses on the design thinking trend of Amazon of
innovation strategy. Amazon is the largest selling market of goods and services reached every
level of a country. They are dealing with their business through online mode by giving cash back
offers.
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Discussion
Organisation environment- organisation environment means institution or forces which affect
the resources, performance, and operations. An organisational environment is more sources for
inputs, information and knowledge, and skills for output. Institutional theory reflects the
organisation that conforms to the ecological and institutional theory. Design thinking is the core
methodology of innovation. This basically identifies how resourceful tools and framework. It is a
useful tool to understand better in relation to how organisational environment effect and design
thinking is applied. The mapping technology of design thinking ecology basically identifies the
nu number of organisational variable and how correlation with design thinking.
Innovation trend and strategy – Organisation know the lot of standards that basically
highlights the new ideas, and struggle of innovation team. According to Darden hoe design
thinking must give help to solve a problem in innovation and their capability (Wu, 2013).
Challenges of innovation – to a successful for innovation process there must be delivered three
things lower risk, cost of change and top-level solution and worker can purchase this. Over the
year’s business, people have developed important tactics and attain possibilities. But if an
organisation is going to apply these tactics they find organisation continuously apply new trade-
off and complications (Borjesson, et. al., 2014).
Superior solutions-
By defining problems in conventional ways is tried to remove problems and get a solution in
innovation thinking. Asking more questions which are interesting that gives original business
ideas.
Design thinking basically highlights the structured process which gives the innovator to improve
solutions. Following point is included an innovative solution.
Employee buys in – innovation cannot guarantee success until the employee does not focus on a
company project. Each individual must fulfil a definite role in context for generating ideas. This
is very difficult to involve different perspectives that will create disorganisation and
unconnected.
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Lower risk and costs- uncertainty is not removable in relation to the innovation. So that
innovator builds a portfolio option. The tradeoffs denote very much idea of focus and resource.
To manage stress, the innovator must leave bad ideas in relation to innovation.
Innovation capabilities-
The organisation goal irrespective of producing goods and services basically promote
technological challenges and innovation. Technological capability is a better understanding of
the process of technical change. Innovation capabilities ability to the organisation to make new
ideas in relation to carries economic value. The innovation capability gives the idea to develop
new thoughts and ideas in relation to the future generation of the organisation (Kindström, et. al.,
2013).
Innovation value creation-
Innovation value creations basically correct the weakest point and make innovation in relation to
the strength of those links. It is the purpose of an institution to create value and efficiently
enough that generate profit after cost. Value creation is an essential concept of starting the
business.
Strategic alignment-
Having strategic alignment basically for innovation project basically gives for the opposite
performing random act of innovation. This means the organisation has undertaken innovation
goals, in the matter of the particular project. They see how strategic alignments basically match
with the vision of the company and set a structure to reach an undetermined source of
possibilities.
Alignment- the alignment is the final stage of the identification process which provides a series
of seminar and workshop discussion that will be asked in the same form of a question. The
organisation should be a focus on the job possibilities in comparison to the constraint imposed by
the current state of thing. This gives the diversification of teams that should be more cooperative
and creative discussion in relation to criteria of design or a structure of key feature that brings the
ideal innovation. Establishment of the spirit of inquiry will help in knowing dependency on
dissatisfying from the current state of thing. It makes it easy for a team to reach potentially to the
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innovation process. A design criteria agreement basically gives Nobel ideas which give safer
incremental ones (Liedtka, 2018).
Alignment between business strategy and innovation
Expand solution for wrong reasons
To expand new technology can be exciting with the individual level. Teams can be exhaust from
those directions which basically top-level strategic objective but it might be more enjoy full and
interesting them for personal level. By expanding this new concept it is not bad but it is wrong if
they actually make sense to do so just because something is not aligned with the strategy.
The final stage of the identification process is a series of seminar and workshops. It shows that
job will be designed inefficient manner. It focuses on many possibilities rather than any
restriction imposed by any state of affairs. It gives help to increase design thinking is more
creative and more collaboration towards the team.
Leadership changes
The top level department makes the reason for the breakdown in the strategic alignment decision.
A leader personal goal might be to give effect to the entire organisation, for good and bad. The
executive and higher department people make a decision regarding product and goods of their
own belief. They take a decision even employee and customer idea is totally different. After one
on two years, the leadership is changed, a new leader comes in and he takes the opposite decision
of the last leader in the organisation. This gives a major effect on the company current project of
innovation basically misaligned with corporate strategy as far as the concern of leadership
changes (Vértesy, 2017).
Steps of alignment of business strategy in relation to innovation
Discover innovative idea in relation to a particular field-
A company needs to develop the whole strategy in regard to what field of his innovation. The
ideas and technology should be connected with the fundamental requirement of customers. The
search field is necessary to highlight the link between requirements, trends, product benefit,
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functions, and attributes. The search topic basically highlights the consumer fulfils, idea and
technology development.
Convert the company to deliver a result of innovation-
This shows how organisations operate innovation. This reflects an honest assessment in relation
to performance innovation. It also shows the skills are required to close a gap of ideas of
innovation between top level and employees. The very innovative company highlight the two
good characteristics. Firstly, the role and responsibility of a chief innovation officer are to the
fastest increasing position in the corporate world. Secondly is the most efficient team of
innovation, positively connected with the synergy of a company that manages everyday business
of the organisation.
Impact of design thinking of Amazon company-
 Design thinking gives problem-solving in innovation- Company faces the problems of the
need for tools which requires for process optimisation is not increasing
 It shows power to covert as much as possible of innovation.
 It reflects to finding innovative approach i.e. human-centric approach to finding a solution to
a difficult solution.
 Design thinking combines the approaches of design, management or science to solve a wide
range of product.
 It used to enhance product development, service, and experience in design thinking.
 It is a design, management and engineering student to need to equipped with design thinking
to manage and lead innovation to the organisation.
 This is an increasing body of proof which identifies the application of design thinking to
business gives a return of investment to increase employment and customer satisfaction. It is
helpful to create more innovative and differentiated goods or services.
 Design thinking represents observation and deeply understands of challenges
 Design thinking analyses critical thinking identify the sources of value for key stakeholders
and enable fast that give new digital solution specifically solution.
Business model canvas by Osterwalder and pigneur's
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Key Partners
 Manufacture
rs Third-party
sellers
publisher’s Digital
content
producers.
Key Activities
 Merchandising

Value
Proposition
 Convenienc
e
 Competitiv
e pricing
 Brand
recognition
Customer
Relationships
 better
satisfaction
 long-term
relationships
Customer
Segments
 mass
market
Key Resources
Warehouses
technological
infrastructure
Channels
 website amazon.com
Cost Structure
 Online cost-driven
Revenue Streams
 Online retail
Innovation activities
Organisation innovation activities are basically on the basis of analysis. It starts with of
innovation process. It is very useful to increase the level of education. Innovation idea is
generally on the basis of present trends and general overview in the field. There should give
motivation to the employee regarding innovation. Incentive program must be created for
innovation ideas. A reward should be given to an employee on the basis of an innovative idea
(Lendel, et. al., 2017).
An innovative manager should include the following point
 Use of the innovative idea
 Risk
 An innovation which tough to implement
 Suitability
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 Expected return
 Feasibility
Innovation capabilities
 To build capability to define and launch any business activity.
 Evaluation innovation readiness and benchmark against best practices.
 Create a culture of a world-class skill set, and responsible leadership.
 By developing the next future generation of innovation leaders.
 Improve governance system basically give help to fast and smart decision making.
 Develop customer centric organisation (Safrudin, et. al., 2014).
Innovation initiative
 To improve the customer experiences
 Change company situation
 To change the experience of supplier, partner and vendor experiences
 Initiatives give result to attain more customers
 The initiative result should be more profitable
 Focus on the business objectives
Value capture of innovation-
 Open innovation mainly focuses on collaborative inventing. Understanding the joint venture
outcomes and the process is not proper for understanding open innovation activities (Ojasalo,
et. al., 2018).
 The value should be captured through sustainable growth effectively in the global economy.
The value creation should be used to innovate is not only process function but also the
organisational culture and behaviour of stakeholders (Chesbrough, et. al., 2018).
Recommendation of best strategic alignment in relation to addressing the innovation trend
 Design thinking creates a natural flow of research
 The innovation trends must be designed in a way that challenges should be faced in reaching
a top level solution, lower cost, and risks.
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 There should highlight the organisation to a collection of a human being must be motivated
by verifying emotion and perspective.
 The design thinking of innovation trend must emphasis learning, dialogues, and engagement.
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Conclusion
Innovation strategy is the guideline of new ideas, views, and creativity of a particular field. It is a
strategy of sustainable development of business. This assignment is focused on design thinking
trend of innovation of Amazon Company. Design thinking trend basically gives focus on the
reorganise thinking of innovation. It showed customer discovery, idea generation or checked a
clear structure of people trying to make a new thing and more collaborative towards a company.
It defined innovation trend, innovation capability, innovation capability, and innovation value
capture. Innovation activity is helpful to attain future next generation of the leader. It has been
noticed that innovation capability would be increased if the company is customer-centric.
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