Innovation and Commercialisation Report: Amazon Go Case Study Analysis

This report provides a comprehensive analysis of innovation and commercialization, with a specific focus on the Amazon Go case study. It begins by defining innovation and differentiating it from invention, emphasizing its importance for organizations. The report then explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialization efforts. It delves into the 4Ps of innovation and the application of the innovation funnel to Amazon Go. Furthermore, the report critically evaluates the role of frugal innovation in the development of Amazon Go and analyzes its new product development process. It also covers the commercialization funnel, business case considerations, funding methods, and strategies for protecting intellectual property. The report concludes by summarizing the key findings and their implications for the retail industry.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain innovation and determine difference between invention and innovations..........1
P2 Explain how organizational vision, leadership, culture and teamwork can shape innovation
and commercialisation............................................................................................................4
TASK 2 ...........................................................................................................................................6
P3 4Ps of innovation and innovation funnel for Amazon Go................................................6
P4. Critical evaluation of role of frugal innovation in the development of Amazon Go.......9
TASK 3 .........................................................................................................................................11
Covered in PPT.....................................................................................................................11
TASK 4..........................................................................................................................................11
Covered in PPT.....................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation and commercialisation is very important for every organisation. As it helps in
providing innovative and new products in market. Innovation is a process or action to identify
new solution of problems (Ke and et. al., 2016). Commercialisation is introduction of new goods
and services or new process for production in market and making it available to the target
consumers. Present report is based on Amazon Go, it is grocery store which is a subsidiary
company of Amazon and founded in 2016. It provide services by using computer vision, deep
learning algorithms and sensor fusion for making the purchase and payment automatic. This
report includes difference between innovation and invention, importance of innovation for the
organisation. Role of vision, leadership, culture and teamwork in innovation and
commercialisation. Use of innovation funnel in creating innovative ideas, development in frugal
innovation and its use for company. It also includes importance of commercial funnel and new
product development process commercialisation of innovation. Innovation business case and
ways of funding for given organisation and tools for protecting innovative ideas and intellectual
property.
TASK 1
P1 Explain innovation and determine difference between invention and innovations
Innovation refers to several activities which can be related to product, process and
organizational routine. It focuses on acquiring profitability by more attention of potential
customers in target markets (Osoro, Kirama and Vermeulen, 2017). Business entities can catch
latest trends, access relevant information and ensure product availability on customer's fingertips.
Customers enable for better experience by different choices on shopping way. In respect of
Amazon, this is count in most innovative companies in 2017 survey. Organization has developed
many platform of shopping and lifestyle by considering culture. These insight increase 60%
users in potential market. Amazon Go has opened first store but that time they didn't considering
on differentiation prospects. Nowadays it interacts to consumers with amazing digital platforms
for instance: convenient store by using digital cart and payment through their account. This
refers to fastest transactions, machine learning and computer cloud systems which make it smart
shopping on these stores.
1

Innovation has significant role for every business plans which ensure to its long term
success in the market.
Difference between innovation and inventions:
Basis of comparison Innovation Invention
Meaning It refers to new development in
existing product and technical
processes.
It implement for new product or
different process for increasing
growth.
Concept It based on new professional
ideas for practical procedures.
This concept based on working
theories and original opinions.
Required skills It shows combination of
marketing and technical skills.
Invention can be feasible only by
scientific skills.
Activities Innovation concerns on more
activities across the company.
These process focuses mainly in
research and development
department for new process and
product.
Consideration Innovations consider on a
combination of similar product
or services.
This works on particular product
or procedures.
Importance of Innovation in retail industry:
There is a wide difference between innovation and inventions already discussed above.
Both processes are important for developing a product for a company's success yet innovation
has an edge over invention. Innovation in terms of development of existing processes is more
important than invention as it requires lesser funds and efforts. Amazon Go also brought
innovation in retail industry. It is following sensor technique, those fundamentals changes retail
sales thoughts in customer's mind. In this grocery store doesn't have credit card machines and no
need of cash and ATM cards for payment. Through this system, company is enabling for
tracking consumer's behaviours during shopping activities. On this basis, it provides discounts on
related prior buying behaviour. Thus, it can be said that innovation has a major role to play in
retail industry as described below:-
2

Maintain customer relationship: Innovation leads to creativity by providing new
featured product or services in existing operation (Du and et. al., 2017). These kind of ability is
established better quality along with unique systems. People always seeks new reliable functions
in shopping centres and services. It helps in raise company's standard by facilitating new
functions in existing process. So throughout new creative programs Amazon can maintain
harmonium relationship with their customers.
Develops new technologies: Innovation mostly occurs during research and developing
efforts to fulfil consumer requirements. It provides new methods of selling, transactions,
distributions and product operational functions into an organization. Amazon Go can easily
adopting those techniques to fascinate their potential customers. Innovation facilitates for adding
new features and creates differentiation with rivals.
Thus, innovation plays major role for every organization whether it is selling or technical
support. Moreover, company uses invention for introducing new device in target market. This
term refers to an act of designing or discovering some new methods and something that doesn't
exist before (What is innovation and how can businesses foster it, 2017). These activities are
only based on scientific ideas and experiments which convert into tangible products (Yin, Shi
and Yan, 2014). Amazon also consider on this aspect for market growth so they approach for
footprint process for online giant. It includes to nine stores in UK market, by collecting
knowledge of high street retail. All these things are happening in new invention in technologies
sector which providing number of products within a single store. Amazon Go has introducing
new technology in their grocery stores which known as 'just walk out'. It includes mobile
application process so payment is received by amazon account with a buying receipt. Company
has attached sensor fusion technique at entryway that presenting a barcode for tracking entries at
store. This advance technology helps in identify consumer move for picking products. Thus, a
relevant invention assist to increasing sales within an organisation. Although innovation and
invention have many differences in it's framework that elaborating here:
As per Peter F. Drucker, innovation has seven sources those are describing here: The Unexpected: Market plays dynamic role which leads several modification in existing
process on bases of customers demands. These unexpected circumstances directly
supports to innovation (Uprety and et. al., 2018).
3

 Incongruity: Innovation takes place where incompatible situations occur. For instance:
some people prefer only car but facing many problems in parking area shortage, so smart
cars had taken place. Market structure: Existing structures directly affects to company's product sale which
gives many probabilities to innovation. Necessity: customer's necessary requirement also gives chances of innovation for fulfil
their desire timely. Demographic changes: In today's era, people consider on trendy products to look better.
To satisfying consumer's need according new lifestyle it gives birth to innovation New knowledge: In market, new relevant information always create something better
along with new functions into a product (Clayton, Feldman and Lowe, 2018).
 Changing Perception: Everyone has their own observation according to different health
perspective and preferences. customer's mindset emphasize to product sale which force to
make changes in existing services.
P2 Explain how organizational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
A company vision provide a clear image of working purpose and insight about goals.
These goals clarification encourage to employees for effective work performance on time. In
respect of Amazon Go, managers should clear their vision to attaining futuristic goals. Secondly
leadership power, a good leader faces many challenges with team members and resolve critical
situation smoothly. They understand company's culture and treat people accordingly by
encouraging to teamwork. These aspects are discussing below statements:
Organizational vision: This aspects clear all objectives and futuristic goals to every
people who is working in an organization. Amazon Go has solid vision which is based on deep
learning algorithms and computerized techniques. This allows buying activities without facing
public queue and checkouts to their customers. New sensor fusion technique is fascinating to
new customers as well existing people. Company must know about customer preference and
demand so they can easily think about for further modification in services. Thus, under-stable
vision open the doors for invention and assist to financial growth (Stojcic, N., Hashi, I. and Orlic,
E., 2018).
4

Leadership: It is the power of a person which comes by their personality, knowledge and
experience within an organization. Good team player gives contribution in counselling, coaching,
learning support, conflict resolution, strike for employees rights and so on. In respect of Amazon
Go, manager observers to customer's convenience and makes strategies on services. They always
willing for understanding the concept of people's need so they can work for innovation. These
initiative techniques enable to high profitability and create a better image in market segment.
Culture: This refers to work experience, assumptions, policies, norms and procedures
within an organization. Every company has different targets along with its policies and beliefs
that mandatory for employees. Amazon Go should follow better working environment which has
no discrimination between employees. A positive atmosphere provides assistance in increasing
enthusiasm at working station. So members will more willingness to give their best performance
by supporting to each other in supportive manner. Collaborative behaviour and positivity in
working environment lead to creative idea during employee's performance ( Stojcic, NHashi and
Orlic, 2018).
Teamwork: This process involves an agenda of professionals to accomplishing a target
or particular project. Team counts as a part of business which encourage to people wok together
by best contribution in all circumstances in company. Under Amazon Go, managers should
follow teamwork strategies for acquiring desired outcomes. When people collect in a group,
several innovative ideas come with best results which directly contribute for invention.
Thus, all functions take shape into innovation and commercialization by different results.
Amazon Go should consider on these activities for increasing market growth as well as
innovation in their grocery stores. Those above aspects help to attaining selected goals through
fascinate more consumers in potential markets.
Developing an environment for Innovation culture: It can be foster through leadership
qualities and working experience of founders who is passionate for optimistic outlook. Amazon
Go should works for employee's interdependency for effective and creative performance.
Managers need pursue on innovative ideas in open environment that happens naturally. This
attention conducts brainstorming techniques for creating unique ideas for supporting new
features. It involves super performing candidates to explore various requirements at a single
place. Here a team takes place who' will performing in effective manner along with clear
objectives. Senior mangers should promote to employees during their performance by following
5

reward system (Cano-Kollmann and et. al., 2018). They have to tolerate with mistakes and gives
suggestion or training session to failure. Moreover, company's CEO can take advice for changes
in working environment which decreasing their progress. This process provides assistance in
acquiring innovative ideas and efforts for developing a new techniques. Employees are more
encouraged through supportive behaviour, it also addressed to high morale with enthusiasm
towards their jobs. By following this creative environment Amazon Go can conduct more
innovation into their stores.
TASK 2
P3 4Ps of innovation and innovation funnel for Amazon Go
Paradigm- It deals with those aspects of external environment that brings about changes
in the products, process and techniques of entity in order to deal with the latest trends in industry
and marketplace. Also, it deals with the factors that involve bringing changes as per the changes
taking place in competitive businesses. So amazon Go uses different innovation in the field of
technology. As Amazon Go uses the automation process which helps in eradicating the human
involvement in the different operation. This also helps in limiting the wastage of paper and
various natural resources. They uses the different types of advanced machinery which uses
sensors in the machine while transporting material so it is required make concern to the
environmental condition so that damage to the ecosystem can be limit (Henttonen and Lehtimäki,
2017).
Product- The innovation in the product is now become compulsory for the company as
there are higher demand of creative and innovative product in the market. So it is very important
for the company to create innovative product, which can meet the demand of customer's desire.
Through this Amazon Go can become able create the brand image in customer. This helps the
company in getting better position in the market when compared to rivals
Position- Every business entity works for the purpose of serving the needs and preferences
of customers by bringing those products in market that gains the satisfaction of customers and
deliver them the value that they need. Also, for a business to function properly, it need human
resources. In any business, employee and workers are the main assets as they carry out all the
operational activities within an organisation. So innovation can be done with respect to the
human factors also. By giving them training regarding each and every skill through which
6

worker can innovate in there work culture while doing the operations. Workers of Amazon go
can use there creative mind while solving different types of problem in distribution of product in
stores.
Process- The several steps through which a task can be completed is known as process. The
manager of Amazon go makes the innovative plan through which the delivery of different
product and services can be done in a new way. The process involve all the operational activity
like selling, marketing and promotion of the product. The innovation can also be done on the
various promotional activity like through selling the product through digital marketing, social
media plat form etc. (Lim, Darley and Marion, 2017).
Innovation funnel
A product or process is usually developed with the concept of perceiving an idea and then
turning it into reality by converging to a specific product that can meet the needs and preferences
of customers. The development process starts with a range of inputs that are then put into process
so as to push them towards the rapid completion and introduction in marketplace. Aim of
innovation funnel is to convert idea into a product or service to satisfy the market demand. In this
process many ideas are collected at initial stage and at the last stage few ideas are considered for
developing a idea or concept. Amazon Go needs to develop a new idea and for this they use
innovation funnel. It has three steps for developing an innovation funnel. These steps are
explained as follows:-
7

(Source: Innovation Funnel, 2018)
Investigation: In this first stage organisation or management collect and enhance
information and knowledge for collecting various ideas as much as possible. If company has
many ideas then they will have chances for developing more products and concepts. Amazon Go
has to develop strategy for gathering large amount of information as it is very important part of
this process. Company can collect information from external as well as internal sources like
employees, competitors, by conducting research and from other institution etc. for this they
management has to have clear goals and objectives for development of new ideas. It needs to
have deep knowledge and understanding to convert ideas into realities (Sexton and Ligler, 2018).
Development: After collection of data next step is to screening of data. This process
includes identification of relation among selected ideas with the goals and objective whether
they are related or not. Assessment of associated risk and return related to the goals and
objectives. This stage includes testing of ides of in actual target marketplace. Required resources
are allocated for converting goods for utilising opportunities.
8
Illustration 1: Innovation Funnel

Shipping products: This stage ensures that ideas which are selected fulfils goals and
objectives of company. Then new products and ideas are introduced in the market to satisfy the
needs of consumers. For Amazon Go, this will help in developing strategies to achieve future
objectives. This a easy concept for companies for developing their ideas by using creativity as
ideas or products are already tested in market then release in actual market.
P4. Critical evaluation of role of frugal innovation in the development of Amazon Go
Frugal innovation is consider as a process that is used for minimising the complexity of
cost which is basically applied on a product. Thus, it can be said that it helps company in
reducing the cost of production with the help of different strategies and action plan. Therefore, it
assist company in providing better services and facilities to its clients. In frugal innovation firm
can usually remove the features which is not adding value in the product hence, this activity
automatically reduce the cost of the commodity. This is applied by each and every company as
they wants to gain profits which can further lead firm into a superior position.
Frugal innovation is not an easy task as it requires a lot of planning in terms of making
strategies so that cost can be reduced for their potential customers. Amazon Go, has worked on
frugal innovation and adopted a concept of reducing the congestion of queue in billing process.
As a result, entire activities are performed in no time. Therefore, this has worked in limiting the
number of people in waiting line (Cohen, 2017).
Across emerging markets, many enterprises are bringing continuous innovations with the
aid of frugal innovation and implementing them on a large scale to assist people with low
incomes but high aspirations. In Kenya, majority of the people use M-PESA which is a mobile
payment solution. This is very useful in Africa as a large number of people don’t have a bank
account but almost everyone has a mobile phone. Also, M-PESA has become the source fro
other businesses to bring transformation in its operations.
It has been critically evaluated that every single business organisation like Amazon Go
keep its focus on innovation for their future so that they may gain competitive advantages.
Innovative strategies can help Amazon Go in reaching to an all new level where they can give
excessive rivalry to its competitors. But, it has also been analysed that frugal innovation may
bring complex situations as well for the company because making changes in any department
focusing on innovation, organisation may reach to an all new level. Amazon Go, if it is talked
about this company, they have done delivery of products with the help of a drone. This helped
9

them in grabbing attention of customers in a long run and aid them in enhancing profit margins.
Some of the frugal innovations at the workplace are given beneath: Identify improvement area: This is being considered as a step where organisation needs
to keep its focus on different areas at workplace where the actual improvement is
required. Here, it has been critically analysed that manager of Amazon Go needs to keep
its focus on making modifications as per their own needs and requirements. Make alternative solution: Just after identifying where the problem is, Manager of
Amazon Go needs to keep its focus on pulling out right and alternative solutions through
which issue can be resolved rightfully. Choose most appropriate solution: Form all available solution selection most appropriate
one according to their needs and wants. Sustainable solution: Away with this, in this phase it is required for the manager of
Amazon Go to make effective decisions and if they do not find it out relevant in nature,
then company may easily take or make other determinations as well. Shape clients behaviours: Through this process firm are able to provide quality of goods
according to clients needs and wants.
 Engage and iterate: Lastly, it is required for manager of Amazon Go make effective
strategies which will help consumers in that are not demanding for a service more then
make modifications in them so that sales can be enhanced. So that, company want to
Engage potential customers with their product in order to full fill demand effectively.
Amazon's strategy of supplying goods by using drones is an innovative approach and
potential factor for its success in this dynamic environment. This strategy can give the company
a competitive edge in the market as no other firms of this sector has such unique inclination
towards such fine use of technology. However, it has received mixed reactions from the
customers. While some customers loved this idea and found it a game changer, others showed
some negative perspective towards this strategy (Snihurand and Wiklund, 2018.). This means
that there is still a wide scope for improvement in this strategy which would help the firm to
influence more customers towards their innovations. They could also use recommendations
online about their developing strategies which can be fruitful for the company in future as the
strategies will be accepted by its customers removing any possibilities for rejections.
10