Innovation within the Consumer Market: Framework and Analysis Report

This report examines innovation within the consumer market, beginning with a literature review on innovation and its impact on business. It proposes a framework for assessing organizational innovation, focusing on people, process, and tools. The framework is then applied to Amazon, analyzing its strengths and weaknesses in these areas. The report identifies gaps in Amazon's innovation strategies, such as the need for improved customer service tools and faster delivery options, and suggests improvements. The framework includes phases like problem definition, UX design, and product development, emphasizing the importance of adaptability and continuous improvement. The report highlights the significance of leadership vision, risk-taking, and understanding market dynamics for successful innovation. It also underscores the importance of integrating various tools like PPM systems for effective portfolio management and the need for employee awareness of innovation's importance.

Running Head: INNOVATION WITHIN THE CONSUMER MARKET
Innovation within the consumer market
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Drawing on a wide range of literature on innovation...............................................................2
2. Develop a framework that you could use to assess an organisation in terms of innovation....4
3. Describe your framework and justify the critical elements (with reference to the literature)..5
4. The next step is to apply this framework to a particular organisation of your own choice.....7
5. Where are the gaps? What is being done well, what areas need to be improved?...................8
6. Finally, develop a plan to address areas of weakness. You may choose to focus on a few key
areas and discuss them in detail.....................................................................................................10
References......................................................................................................................................13

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1. Drawing on a wide range of literature on innovation
According to the author Slater et al., (2014), innovation is the key towards the business
undertaking of any concerning the business firm. The business firm achieves a competitive
advantage over other firms by making use of the innovation. It is the innovation that transforms
the business firm into a qualitative business firm. Innovation is not only about making the use of
new technology and new ideas to in order to generate a new set of commodities or products.
Innovation is much more beyond that; innovation is not to be compared and addressed with that
of the new creations. Innovation can be better understood as an act and practice of making,
inventing, or producing something. However, innovations can be realized with creativity.
People has to innovate their thinking ability such that they are required to think outside of
the box in order to create incremental enhancements. Innovations result in bigger opportunities
and are vital for the survival, economic growth, and for the success of the company. Innovating
helps in the key driver for optimizing operations. Companies that make use of the innovation are
successful in making the organisation place at a different paradigm in order to identify new
opportunities and best methods to solve current problems. For a better understanding of the
innovation, the qualitative leaders should be open-minded and collaborative in nature. The fact
of feeling comfortable with uncertainty, and manage the changes are some of the behavioural
aspects towards the innovation. Innovative leaders are very risk bearing body that understands
the level of risk and uncertainties that are associated with that of the huge opportunities.
Innovation does not clearly state whether it will lead to huge success or not but it will
surely result in effective business operations. Besides, everyone in the universe is an innovator
because the innovative potential that exists within us. Since we were born, we innovate by
learning by doing. The pitfall is that school have formatted by proving us knowledge us and has

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diminished our ability to innovate, while the ability to innovate is higher valued because
innovation cannot be learned or taught.
Another author Vivarelli et al., (2014), another meaning of innovation stands for the
vision and the aim of one particular business firm. The change of these visions and plans into the
end goals and objectives are is termed as the innovation. The process of conversion of these
ideas and thoughts into realities is referred to as innovation. There are some of the qualitative
factors that are required to be present in order to be an effective leader. It is the leadership vision
and qualities that contribute towards an innovation activity.
Some of the qualitative factors are as follows; they are:
 Should be a leadership body, should possess leadership vision.
 Should be a risk-bearing body.
 Should understand the dynamic changes that take place within the business environment.
The majority of business professionals agree to the fact that innovation is a long term goal
process and requires huge planning and focus. A recent study was conducted by the brand
Accenture, they claimed that more than 90 percent of executives has faith that within the long-
term success of their organization's strategy relies upon the ability to develop new ideas and
concepts (BusinessNewsDaily, 2019).

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2. Develop a framework that you could use to assess an organisation in terms of
innovation.
Problem definition UX design Product development
Phase 1 Phase 2 Phase 3
Inspiration & Trends,
problem framing
ideation value
proposition
Ethnography frame
solution, design
prototype, and design
solutions
Tech proof of
concept, minimum
viable product soft
launch product
release
Time Frame
1-4 days of workshop 1-4 Weeks Sprints 1-4 Weeks Sprints for
POC - MVP
Figure: Framework for innovation
Source: Created by the researcher

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However, there also lies a question in regard to the fact that is organizational
effectiveness always seems to be positive. Sometimes, innovation has a negative effect on the
organizational business undertakings. It is the political factors that hamper the business
undertakings of the concerning business firm. However, an organisation may face knowledge
loss or organizational dysfunctions such as that of avoidance, resistance, struggle, alteration, and
conversion processes (Audretsch et al., 2014).
To eliminate the negative effects of the innovation, it is suggested that the various
organizations should first understand the incompatibility between the new knowledge, and prior
knowledge. After that reformulate the newly introduced knowledge. Implications for theory and
research are offered as well as suggestions for practice.
3. Describe your framework and justify the critical elements (with reference to the
literature).
The three main aspects of the framework will be undertaken in order to understand the
level and the efficiency of the innovation, they are as follows:
 People
 Process
 Tool
Speaking in terms of the people, the manual labour workforce along with that of the total
available HR is to be evaluated on the basis of the productivity that is being achieved. It is about
framing an organisation in a manner that it has an innovative structure. It is also concerned with
the job and authority of the people in order to manage the innovation portfolio. The highest
maturity organizations have a Centre for Process Excellence that is productive, well established,

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and well-staffed (Maier et al., 2014). These organisations have support from the executive
leadership body and that of from the department heads who understand that innovation is how
the business will grow, meet the corporate strategy, and thrive. Decision-making in the high
maturity innovation organization is collaborative and efficient.
Speaking in terms of the process, it resembles towards the automation of the
commercialization process. Organizations that rely upon the highest maturity level possess
dynamic processes that can easily be adapted as the market changes and the company evolves.
This organisations have fully automated and operate upon the standardized processes that are
normally in the phase of continuous improvement, including process deliverables, templates, and
reports. Portfolio metrics have evolved from being focused on product financials to include
resource capacity, competitive impact and environmental impact scores. Projects are killed early
and often during portfolio reviews (Holtzman et al., 2014).
Speaking in terms of the tool, it is concerned with having a PPM (Portfolio project
management) system in order to carry on an automation process, which is rolled out to everyone
along the commercialization process. The PPM (Portfolio project management) application is
integrated with other required enterprise applications, such as that of the ERP and the PLM. New
ideas, concepts and Ideas are obtained by means of purpose-built, externally available
applications for the customer and company-wide collaboration. The product objective is linked
with that of the corporate strategy and project execution via the means of the PPM application.
Self-service, configurable reports and metrics are delivered across the organization to those who
need access, in a format and device that works best for each individual user (Hausman et al.,
2014). As with People and Process, majority of the organizations feel like they are at Level 3 or
lower when it comes to effective use of Tools in their product portfolio management.

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4. The next step is to apply this framework to a particular organisation of your own
choice.
The chosen organisation is Amazon. The concerning business firm should understand the
manner in which the labour supply is undertaken along with that of the employees. On the other
hand, it should also focus on the structure of the formation of the top management authorities.
There is an advantage of changing the hierarchy structure on a regular basis. Understanding
which of the hierarchy works better and then making use of it is one of the best innovation
strategies in terms of the people aspect.
On the other hand, the local union workers and that of the third party workers is to be
satisfied by availing incentives and fringe benefits to them before any need arises by them. This
helps in eliminating any situation of chaos among the work groups and maintain a positive
working environment within the society (Nylén et al., 2015). They should be trained and made
them aware of the business visionary and objectives. Most of the lower level workers and
labourers don’t have a pretty good knowledge of the importance of innovation in the business
prospects. Hence making use of the HR team, a separate team is to be formed for making them
aware of the innovation.
An analysis should be made as of whether to carry on vertical marketing system or
horizontal marketing system as each has its own advantages and disadvantages. The process of
business operations is to be evaluated in order to rectify the errors. The business process differs
from one business firm to another firm and that of the sub-departments of the business firm.
There are different business processes such as management, finance, accounting, and much
more. In order to make each of the various department efficient in its business undertaking focus
is to be given upon the business processes.

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Moreover, it is important for Amazon to understand its business activities. At present, the
business firm makes use of the e-commerce platform in order to penetrate the consumer market
(Mazzucato et al., 2016). However, there are many other regions of the country who do not have
a facility of proper infrastructure. Hence, the brand Amazon can think of a revolution within its
business process by introducing physical shops at various destinations.
The use of the tools can be modified such that the majority of the consumer market can
be attracted and can be captured. Moreover, the business firm Amazon makes use of the digital
platform such as that of the e-commerce platform and that of the delivery service tools. The use
of the tools can be modified in order to introduce innovation within the business undertakings.
Making use of the tools such as that of the online chatbot, a tool such as a camera scanner that
scans any product nearby and makes the new product available in front of the desired consumer,
features like getting delivery within a single day, and much more.
5. Where are the gaps? What is being done well, what areas need to be improved?
The gaps as identified are as an online chatbot, a tool such as a camera scanner that scans
any product nearby and makes the new product available in front of the desired consumer
features like getting delivery within a single day, and much more. This is some of the gaps as
identified which requires focus for the introduction of the innovation. However, there are many
other consumer-related issues which are identified and is required to be dealt with. Consumer-
related issues such as that the consumer is eager to get a reply when they need to cross-check
certain factors in regard to a particular commodity. They also find difficulty in purchasing a
product in regard to quality as much of the specification are not clearly mentioned according to
the nature of the product (Shafie et al., 2014).

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However, there are a number of measures that are being undertaken by the Amazon such
as that the brand makes use of the AI based bot and scripts within their webpage in order to
understand the purchasing behaviour of the consumer. On the other hand, Amazon has
introduced innovation within the consumer market by introducing Alexa based bots. This bots
not only helps the consumer with their daily day to day related activities but also helps in the
business-related activities. At the first initial stage, the product was very desirable among the
consumer market. Then the product seems to be at the growth stage, speaking in terms of the
present phase of time the product seems to be at the maturity phase. However, there is a need for
much more innovative product for the concerning business firm.
The number of rival firms has understood the innovation product as a competitive
advantage of the brand Amazon for which the number of rival firms has also started to make use
of the same product offering. However, this technique has been outdated, and there is an
immense need for the new innovation product category. Moreover, the business firm can make
use of innovation strategy like availing the necessarily required product to the consumer within a
single day, creating an interactive and attractive official webpage for the consumers (Argyres et
al., 2015).
Moreover, the use of the supply chain is to be improved such that the supply can be made
available within a single day of time. Moreover, the use of air cargo can be undertaken in order
to make the delivery on a single day basis guaranteed. Besides, the use of the local shops can be
undertaken in order to make the product available to the consumer at the shortest possible time.
Amazon can form a hand with that of the local shops for similar kind of activities. Order from
that particular area can be matched with that of the product availability in the store. If available,

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then the product can be arrived at the point of the consumer by means of the local partnership
agreement.
6. Finally, develop a plan to address areas of weakness. You may choose to focus on a
few key areas and discuss them in detail
This entire work will be carried out for a time period of about 6months. After which the
outcome and efficiency will be measured in terms of statistical measures. After that the
suggestions of the focus group will be undertaken in order to understand the differences that
were expected and the actual differences that took place (Bryson et al., 2018).
1- By depicting out the list of the weaknesses in the form of a list and then evaluating with the
actual results obtained in comparison to that of the expected outcome.
2- By making use of external experts and professionals from different regions of the world will
help in the contribution of different ideas. This idea will help in the creation of the new action
plans as such that the professionals and expert can work together towards the attainment of this
specific set of goals.
3- Setting up a focus group to monitor the internal aspects of the business environment. Setting
up another team for monitoring the external aspects of the business environment. Setting up
another team of IT background to monitor the activities that are going on within the official
website and to keep track of the consumer movements.
4- To participate in the international seminars and to understand the global trends that are being
undertaken by the different rival firms. To participate in the events to understand the future
marketing and innovative steps of the rival firms.

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5- To conduct a consumer survey in order to have an idea from the consumer market in regard to
the expectation from the concerning business firm. This survey should be carried out physically
as well as on an online basis.
6- To find out a qualitative mentor, in order to give qualitative guidance.
7- Carry on additional training, training is the means of providing and equipping with qualitative
skills in order to fulfil the skills gaps and to understand the area where it is required much of
importance. Amazon can take help from the other rival firms upon agreement in order to
understand the difference among the working styles.
After carrying on the above activities, there will be some improvement or the occurrence
of new product ideas will be created as a prototype and will be made available within the
consumer market as a demo. The demo session is required to be carried out on international
market events. This is to capture the focus of much of the consumer market. Then, the next plan
would be to make use of the customer feedback for the production of the particular product
offering. This is to ensure that the production in the bulk amount, does not fail to penetrate
successfully within the consumer market.
However, one of the strategical move is not to launch the product within the consumer
market. Instead, developing consumer interest more and more and introducing the consumer
product in terms of innovation within the business process such as innovation in the chatbot, a
tool such as camera scanner that scan any product nearby and make the new product available in
front of the desired consumer, features like get delivery within a single day, and much more.
This is, in turn, to generate and formulate brand-equity for the concerning firm Amazon.
Introducing innovation within the user tools. This will help in making the consumer market