Innovation and Commercialization: Analysis of Amazon's Strategies

This report provides a comprehensive analysis of innovation and commercialization strategies, using Amazon as a case study. It explores key concepts such as the definition and importance of innovation, comparing it with invention, and examines how organizational vision, leadership, culture, and teamwork shape innovation. The report delves into the 4Ps of innovation, the innovation funnel, and frugal innovation, analyzing their application in an organizational context. It also covers the commercial funnel, new product development, and the development of an innovation business case, including funding strategies and methods for measuring effectiveness. Furthermore, the report evaluates tools for knowledge management, intellectual property protection, and critically assesses the nature of innovation and the challenges organizations face in developing successful innovations.

Innovation and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1. Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................3
P2. Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................5
M1. Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation........................................................................................6
LO 2.................................................................................................................................................6
P3. Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................6
M2. Analyse and apply the innovation funnel in an organisational context...............................8
P4. Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..................................................................................................................8
M3. Appraise the role of frugal innovation in an organisational context....................................9
D1. Critically Analyse how innovation is developed, embedded and measured in an
organisational context................................................................................................................10
LO 3...............................................................................................................................................10
P5. Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.....................................10
P6. Build an Innovation Business Case for an organisation, including ways to access funding
...................................................................................................................................................12
M4. Build a detailed Innovation Business Case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve....................14
LO 4...............................................................................................................................................15

P7. Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property..........................................................................................15
M5. Present supported evidence-based evaluation of these different tools in the context of the
wider business environment......................................................................................................16
D2. Critically evaluate the nature of innovation and the context in which it is developed,
providing evidence-based judgements on how organisations can overcome challenges to
develop successful innovations..................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Innovation defines the procedure which is useful in making suitable changes and alternation
in the present product and services which is existed within the market and provided by the
company. In terms of various organisations innovation is important in order to achieve success
and growth for the smooth running of the organisation as it is the concept of enhancing the
current existed product that helps in attracting maximum number of people and leads to increase
sales and profitability of an organisation (Zahedi, Mirghfoori and Morovati Sharif Abadi, 2018).
Meanwhile commercialisation refers to the procedure which is useful in launching the new and
fresh products and services in the market area that leads to earn significant profit and also
increase sales of the company.
In addition to this the report is based on an American multinational digital company that
focus on e-commerce, Cloud Computing, digital streaming and artificial intelligence. Along with
this company was founded in 1994 by Jeff Bezos and headquarter in United States. Currently the
new innovation it is planned by company is prime air that becomes the real game changer in
terms of delivery as it delivers the product through drones at the doorstep of the customers within
just 30 minutes. Moreover this report is going to cover the concept of innovation and invention
along with their comparison along with considering the vision culture teamwork and leadership
of the company. It also describes the 4 P’s of innovation use of innovation funnel development
of frugal innovation importance of commercial funnel and new product development procedure
in the context of innovation. Lastly it leads to develop innovative business case for the company
and also describe the various tools it helps in protecting the intellectual property of the company.
LO 1
P1. Explain innovation and determine its importance to organisations in comparison with
invention
Innovation: It defines the technique of presenting new thoughts that are now worried
about the existed items and administrations inside the organization and it unmistakably impact
the accomplishment of the organization. As far as this numerous variables are valuable in
pushing and supporting the system of advancement including intelligence inspiration basic
reasoning and uniqueness that are helpful in driving the power of development (Xiao and et. al.,
2016). For instance, in terms of Amazon, they launched “Prime Air” in order to deliver their

products to their potential customers and it takes just 30 minutes to deliver product. As it is the
fastest mode for delivery and in that case they use drones or flying robots to deliver product by
offering fastest services.
Invention: It is a term which is helpful in depicting presenting the new item and new
thought inside the market that already doesn't exist and furthermore new for the clients. It
happens when the new thought happens in the brain of an individual and furthermore changed
into the finished created item that is prepared to offer and gave to their clients to the first run
through inside the market (Afzal and et. al., 2018). In the interim development take parcel of
time as it requires reasonable examination investigate the necessities and inclinations of clients
and after that testing is made to distinguish the advantages and disadvantages of the item as
indicated by the point of view of customers.
Comparison among innovation and invention
Basis Invention Innovation
Meaning It defines the improvement of
spic and span and new thought
for the item that has been
never existed.
It depicts the appropriate
movement of rolling out
unmistakable improvements
inside the existed item so as to
dispatch it thinking about the
new ways and Idea for the
absolute first time (Eberhardt
and et. al., 2017).
Purpose Its goal is to give new and
new item and administrations
to their potential clients all the
successful utilization of them.
Its motivation is to remember
additional endeavours and
standards for request to change
the as of now existed item as
per the intrigue and
inclinations of the clients so as
to improve the deals and
benefit.
Occurrence It happens when the noticeable
idea and Idea comes in the
It happens just when the
organization feel that their

psyche of an individual and
afterward gives the
conspicuous shape for the last
turn of events and creation of
the products to satisfy the
necessity and requirements of
clients (Rubera,
Chandrasekaran and Ordanini,
2016).
item gets declined inside the
market and furthermore miss
their position thinking about
the serious and dynamic
business condition.
External Drivers: Political: By undertaking the innovation which is done by company regarding their
offered products and services, it is analysed that country must have effective political
stability and efficient pricing policy in order to offer their product and also have the
government pressure to follow trade and tariff regulations. Economical: Economic factors of company also influences and every country has
different economy factor as for this, prices of company is also not standardised as it gets
fluctuate according the economic conditions of company. It also undertake inflation and
related tax factors which impacts the operations of company in various countries. Social: Different culture has various factors and health issues as western countries people
are tens to do online shopping as it more trendy and leads to save their time. Hence, it
becomes the duty of company to offer their products by identifying the wants and
preferences of customers and consider fair trade factor. Technological: Supplies of offered products are more efficient and effective for company
as in terms of this, Amazon also leads to promote various apps regarding the promotion
of its products and also offer online services in order to deliver services and its valuable
products to customers. Legal: Amazon need to follow safety standards regarding offering of effective products
and services and other trading standards and also consider federal trade commission.
Therefore, it becomes the duty of Amazon that they should undertake safety and effective
norms and regulations by considering tax laws.

 Environmental: Amazon need to consider environmental standards as it put positive
impact on the running and functioning of company. For this, Amazon need to undertake
its packaging factor which does not generate pollution or harmful for company and
sustainable and does not damage the environment.
P2. Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation
Innovation is the unmistakable factor that faces appropriate trouble so as to accomplish
noticeable objectives and destinations that are changed over into the completed items. In
connection with this few elements are introduced inside the market that is useful for the
organization so as to get it increasingly beneficial and serious (Hossain and Kauranen, 2016). As
far as this appropriate things that are created and clarified with respect to the honest beverages
are assessed underneath:
Organisational vision: This declaration describes the goals and goals that are set up for the
completion of thought which is made by association. Along these lines, it accepts a huge activity
in order to shape the modernization and moreover offer way to the workers of Amazon. In terms
of this, the vision of company is to make their delivery services faster which are useful in
satisfying the requirements of customers and also consider their convenience.
Leadership: It is a strategy by which organizer of association assistant, straight and leads
the workforce and besides the chose organization style that is fitting for improvement which is
situational control (NARIMANI and VAEZI, 2017). Moreover, the leaders of Amazon need to
adopt clear and reliable understanding in order to implement their innovation which is useful in
acquiring large number of market. In terms of this, Jeff Bezos adopt transformational leadership
which is useful in implementing probable innovation within an organisation and also leads to
manage the behaviour of their employees. The adopted leadership style of Jeff Bezos is more
effective which is useful in order to successfully manage and organise the organisation and other
staff members which is useful for them in order to motivate and prominently boost the morale of
employees that leads to increase overall productivity and performance of company. For this, it is
also important to implement and execute proper leadership that does not negatively impact the
overall performance of organisation and employees.
Culture: It describes the technique by which undertaking direct in the ecological factors in
offer to make their own uniqueness (Carayannis, Cherepovitsyn and Ilinova, 2016). Culture

addresses the characteristics and thinking where an affiliation works and proposed for this,
Amazon must be smooth in order to drive its new and innovative ways while performing task.
Subsequently, it is helpful in achieving vivacious bit of scope near with grow in limitation in
business focus. For example, Amazon needs to analyse the requirements of people and their
desire to get the product that leads to increase the product and market area of company. In terms
of this, culture also put positive impact on the running and functioning of company as effective
culture is vital in order to prominently motivate employees for their overall performance and
productivity which is useful for the good reputation and image of company and also leads to
attract customers towards the organisation.
Teamwork: It depicts the ecological variables wherein individuals work taking everything
into account in order to accomplish ordinary goals. Along these lines, it is significantly improved
to recall more specialists for the course of action of musings to achieve better outcome. Thusly,
advancement is useful in offering sensible reimbursement to big business (Ge, Koirala and et. al.,
2017). For example, in order to develop new thing or shape it into a turn of events, Amazon need
suitable joint effort and convincing coordination and investment among their delegates which is
useful for them to accomplish prominent destinations and objectives.
M1. Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation
Development is the more profound procedure that just portrays the improvement that
prompts change and makes it dependable with potential effect. Regarding this, couple of
wellsprings of development incorporates the unexpected as it happens inside the association at
the dubious circumstance and furthermore occurs by some coincidence. Incongruities depicts the
necessity of the incongruent flexibly and advancement which is an endeavour to understand the
current confusions among the individuals with respect to development. Market structure depict
the appropriate market structure that offer ascent to the odds of development and regarding this
the web crawler of Google assumes a significant job and give noticeable data of the overall
market by dissipated over the web. Necessity is the essential component of the creation and
advancement as both of the variables are create when the organization feels the reasonable
necessity of development and innovation. Demographics describe the appropriate market and
target zone which depict the way of life of the clients and turned into the wellspring of

advancement. Changing perception and new knowledge leads to give the birth to the
advancement as it is the huge source which produces as per the point of view.
LO 2
P3. Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas
Product: It is a foremost constituent which communicates that what's going inside an
association is going to proffer to it is guide clients toward fulfil their solicitations and makes a
motivation for the affiliation. In relation with Amazon, they launched “Prime Air” as their new
product which is useful in delivering urgent products to their potential customers that leads to
retain their customers for the longer period of time. Along with this, it leads to deliver the
products within just 30 minutes which is more convenient for their customers.
Process: This segment depicts the strategy of how the thing is made and passed on by the
association to its conclusive customers. In relation with Amazon, they provide their suitable
products and services with the help of drones or flying robots that leads to deliver the significant

product to particular client. Along with this, it is not available for each and every customer,
Amazon offer this services to only its prime customers.
Position: This part communicates where the thing lies in assessment of its adversaries who
offers undefined things in business focus. It is related with the promotion as it is concerned with
perception of people towards an organisation. Amazon needs to achieve the competitive
advantage and it can be achieved with the help of offering something new and innovative which
is useful for the company to retain and attract maximum number of customers towards it. For
this, amazon need to conduct proper market research which is useful in terms of analysing the
position of company after the launch of their product.
Paradigm: This depict the system by which association faces the movements in view of
getting innovative idea and how the unmistakable do its ability with respect to new challenges
(Lipkova and Braga, 2016). On the off chance that there ought to emerge an event of Amazon,
they can set the benchmark for others and make changes in plan of action as they have to
consider new creation unit.
Use of innovation funnel
Innovation funnel is used by associations so as to portray the specific advances that
happen in creating and making item or a procedure. The motivation behind advancement and the
utilization of Innovation funnel is to make fitting procedures and contributions that the
organization will offer to general society so as to satisfy their needs by assembling and monetary
way:
Investigation: The point of development channel is taken thought from idea to reality by
combining it in a particular item that can satisfy proper market need and needs of individuals in
financial and gainful way (Walsh, Lee and Nagaoka, 2016). The primary phase of Innovation

channel is it past for propelling another production great. In this phase of examination the
Amazon will recognize and decided their focused on clients and their specific needs and wants
alongside investigating the contenders' current execution that has a place with a similar market
with comparable particular items.
Development: This is where the Innovation funnel gives a realistic structure to the
organization for contemplating the screening and age of elective improvement alternatives and
furthermore to consolidate a subset of these into a specific item idea. For example Amazon
recognizes the need of shoppers for having progressively sound items which are additionally
reasonable.
Shipping: This is the last advance that is legitimizes transporting courses of the
organization which it will attempt. The phase of the channel characterizes to the methods of
move of creation administrations from the earliest starting point to the end buyers (Yang and et.
al., 2018). Innovation funnel last phase of delivery incorporates transport administrations and
capacity of Amazon to ship their items for new contribution to the suitable focused on crowd.
M2. Analyse and apply the innovation funnel in an organisational context
Innovation funnel is a significant apparatus for Amazon as this model permits the
association to lead an exhaustive of statistical surveying by putting fitting measure of cash in
innovative work of the market for recognizing another suitable thought by researching the
potential market region. Alongside it all the three phases of development channel will likewise
give Amazon to fittingly work in an orderly way that it helps the organization in driving it
towards accomplishing best outcomes and results from the advancement and new business
thought it wants to work after giving and fulfilling the needs of customers and end clients.
P4. Explain developments in frugal innovation and provide examples of how it is used in an
organisational context
Frugal innovation is a procedure of finding new Business models esteem change and green
structuring of items and administrations to render clients and clients the best quality merchandise
that faces reasonableness issues and outrageous requirements of it. Cheap advancement give an
opportunity to organizations to create and update their contributions and worth changed in such a
way that will help them so as to make accessible products for the clients in an adaptable and
feasible way. Frugal innovation includes either surviving or tapping institutional voids and asset
requirements to create produce increasingly comprehensive market (Liao and et. al., 2016).