Amazon: Building Future Innovation Capabilities in Business

This report analyzes Amazon's innovation management, focusing on its future capabilities and requirements in the evolving online retail sector. It examines the importance of innovation for large companies like Amazon, exploring its strategies for attracting customers through innovative services. The report outlines an innovation roadmap to assist Amazon in creating appealing goods and addresses the significance of leadership planning and effective strategies for executing innovative ideas. It delves into Amazon's future vision beyond 2020, its innovation needs, and the development of its innovation capabilities. The report highlights the critical role of cross-functional cooperation, knowledge transfer, and organizational knowledge in fostering innovation. It also discusses the challenges Amazon faces, including competition and the need to stay ahead of market trends. The report emphasizes the importance of Amazon's innovation capabilities for maintaining its leading position in the online retail industry and generating profits through new ideas and strategies.

Managing Innovation in
Business
Table of Contents

EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................1
Purpose of the report...................................................................................................................1
Future of the industry 2020 and beyond.....................................................................................1
Organization innovation requirements 2020 and beyond...........................................................3
Building future innovation capabilities for organisation............................................................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

EXECUTIVE SUMMARY
This report is based on Amazon for analysing importance of innovation in the workplace.
It is the largest online service provider. In this report, the innovation is essential for large
companies such as amazon. The main reason behind is that they are establishing innovating
services for attracting more customers. The main purpose of this assignment is to formulate
innovative road map that assist firm while creative and attractive goods. In addition to this, it will
addressing the importance of leaders planning and appropriate strategy for executing innovative
ideas or thoughts at workplace. The project is mainly concentrate on future innovation
capabilities of Amazon and their blockages. Also determining the future vision of 2020 and new
developed and innovative products of an organisation.

INTRODUCTION
Managing innovation define as the marked departure from traditional management
principle, practices and processes from customary organization. It will form the alteration of
working in performing better functioning effectively. The main objective of this assignment is to
addressing the innovation talent for analyzing the efficiency of their leaders. The project is based
on Amazon which is international online service provider in the retail sector. Amazon provides
appropriate services and facilities to their customer that help in fulfilling its customers demand
and requirements (Biemans, 2018). At last, the report based on three things such as future vision
2020 of Amazon and beyond that innovation requirements of Amazon and developing innovation
capabilities of Amazon.
Purpose of the report
Innovation is a concept which bring something new that is new product, procedures and
idea. In this, high competitive market is essential for carry out innovation in business for gaining
higher income or profits. Amazon firm offer variety of products to their customers such as
books, apparels, stationery, electronics, toys, pantry, etc. They are developing consumer
electronics that includes Kindle, fire stick, Cloud technology solution, TV and so on. In this
project, innovation is required for organization which help in attracting large number of
customers towards their products.
Future of the industry 2020 and beyond
In this time period, online retail sector is growing and developing in continuous manner
in which the procedure of selling the goods and services through internet (Andriopoulos and
Lewis, 2010). Online retailing company follows B2C business model thus customer direct
communicate with the organization regarding any products. In this, there is no intermediate are
involved. E-retailers can be divided into parts that are described as follows:
 Pure Play E retailer – Such e-retailers does not have any physical outlets like amazon
and it can be access or process through internet.
 Brick and Click e-retailers – These retailers offer offline and online both that means
they have their personal physical distribution system and online websites.
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The online retail sector is the advanced developing industry due to its various advantage
such as save time, offer huge discount, easy to compare among variety of options, easily access
from anywhere or anytime and so more. Buyers are analyze full details about goods and choose
any mode of payment such as COD, e-wallet, net banking, etc. there are number of people who
are using digital technology in current time period so they are purchasing any product through
online in easy way (Seebode, Jeanrenaud and Bessant, 2012). With the help of online shopping,
people are get their choice commodity on one click and also explore various alternative without
any physical efforts.
E-retailing can create major impact of retail industry in future scenario due to following
reasons:
 Pricing strategies are dynamic – In e-retailing industry, prices are set flexible as per the
demand and need of products or services and its competitors. The market allow sensitive
and dynamic rates which are permit to supervise competitors pricing strategies. E-
retailers are taking benefits of low stocks of challengers and encourage their personal
sales and profitability in better manner.
 Technology and expert systems – E-retailers can collect information about choice or
preferences of their customers by exploring their most searched data. It will assist to
attract and influence the customers buying behavior.
In scenario of 2020, growth of online retail company will predictably results in following
way:
 Retailers will progressively relay on automatic equipment – For reducing manpower
or workforce so this is develop fast and efficient work, retailers are using robot
techniques of packaging and delivering goods. It help in save time and provide
appropriate work for clients (Dodgson, Gann and Phillips, 2013). In current scenario of
2020, the use of robot technology will enhancing in more rapid manner.
 High usage of technology and social media – In present scenario, there are various
social media method such as Facebook live, Instagram and messenger are mainly used
merchandising techniques that are adopted by some online merchandisers. In 2020,
online retailers take benefit of changing marketing latest trends and use of e-wallet and
net banking method.
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 Brick and morter retailing will keep growing – Therefore, the growing tendency of
online enterprise, traditional store format are suffered but still innovative store with great
purchasing experience are continuously getting growth. Thus, online stores have an
opportunities for processing their physical outlets.
Organization innovation requirements 2020 and beyond
Amazon innovation Requirements – Amazon is the international internet retailer in the
world in terms of market capitalization, income and revenue. It was established in 1994 by Jeff
Bezos. It is the biggest online store which provide products via internet and also offer various
discounts on specific goods (Jaw, Chen and Chen, 2012). They require to fulfill its innovation
criteria of working which includes new skills, innovative mind set and new ways for doing work
and managing all employees. In current time period, large number of retailers are advancing their
operating criteria and anticipated behavior is increasing their working experience and beat tough
competitors. For instance, Amazon have main two objectives such as growth and innovation.
Some of these are includes:
 Amazon is trying to assist buyers – Amazon is exploring various new ways which help
customers to find unique product and services. The simple method for attracting number
of buyers is to make them comfortable in searching and finding all correct data in proper
manner.
 Amazon is showing beyond demographics – Amazon is engaged in online retailing
with their regular customers through websites. First step of amazon is to introduce and
develop online shopping on just one click and gather more information. Through this,
Amazon can explore locations such as social media for customers profiles and searching
web browser history for analyzing what mostly explored by people. They can add some
filters like searches according to the name, age, gender, etc. Through this, Amazon
require to know about needs and demand of buyers (Nambisan and Sawhney, 2011).
After many years of launching, Amazon still require to continue the work on innovation
because there are number of competitors who are standing in front of Amazon company. Due to
strong competition, Amazon has various innovative requirements and needs which must be
fulfilled by them. The major advantage of amazon is that people are visiting because they are
acquiring what they need, in this the way of offering commodities and services along with
quality. The competition is strong against the another online service suppliers and they are
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getting good at this point. There are three types of innovation such as amazon require to develop
all new skill which help in innovate themselves in online retailing market. Staff members are
prepare to participate in making appropriate decision and share their opinions regarding
establishing new skills in amazon's (Talukder, 2016). The second need is to develop innovative
mind set. That means, they require to prepare themselves to think innovative way because they
do not have such mind set that will convey things to their employees. The third thing is that they
need to organize their manforce in term of performing innovative. It require huge convincing
power because flexibility is always resist the employees.
Innovation Requirement of Amazon by 2020 and beyond – In this, Amazon has to get
their innovations in running by 2020 due to enhancement in competition and to compete against
it, their work area has been developed. The requirement beyond 2020 is essential for Amazon is
to manage and maintain its position in the online service merchandising. Therefore, facilities of
amazon is good for use and people are mainly visit it in the future time period until they are
capable for maintaining its higher position in the market place.
Building future innovation capabilities for organisation
Amazon is the company which have several blockages in their innovation way because in
this there are several things which they have to be considered. Elements which have to be
considered are competitors, strategies and plans as well as how much knowledge related to
innovation Amazon having etc..
Cross-functional co-operation – In Amazon, there are several team or group for
performing different functions. So for gaining better advantages it is important to co-operate with
all the teams along with members working with them. For example, finance and Human
Resource team (Van Lancker, Wauters and Van Huylenbroeck, 2012).
Knowledge transfer – Sharing or transfer of knowledge is necessary, if individual
having knowledge about particular think and he/she is not sharing by everyone than it will
convert knowledge pool. Thus, for gaining benefits it is important to share skills and knowledge
with everyone who is working in the Amazon.
Organisational knowledge – In company there are several peoples who are working and
they all have their own knowledge as well as skills. For doing any work within the
administration if they all combine their knowledge then it will assist them in doing work in more
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better manner. Along with this, each and every person will share their knowledge and help in
doing work more effectively.
Amazon have numerous staff members for performing several work and they all have
knowledge about their respective job roles. When they all share their knowledge as well as skills
with each other with in the Amazon then it will convert into organisational knowledge. Sharing
of knowledge help in enhancing it but in respective company there is blockage in it. Apart from
this, Amazon have several functional group or teams in which maintaining co-operation is
necessary because modification is always resisted by everyone in first time. So to manage
resistance, co-operation is a beneficial (Bernasconi, Harris and Moensted, 2013). Because if
groups are doing work in separation then staff members will never follow co-operation in their
working. Their is requirement of Synchronisation within teams and their members is must for
maintaining several tasks at one time. Because there are many things to be done by the team
leaders and to avoid overlapping, this is must to designate roles and responsibilities of everyone
who is doing work in Amazon.
Amazon have several competitors in business environment which is biggest threat for
them and they are working on it for surviving in the surrounding full of competition. Thus, same
organisation have to keep eyes or overlook their competitor's strategies as well as policies for
taking first position in the market.
Innovation Capability – It is defined as an capability related to innovation for
transforming idea, knowledge and experience into latest trends of goods and processes which is
important or beneficial for the business firm as well as their stakeholders. Innovation capability
can be possible when Amazon and their staff members work for innovating their capabilities
along with this stand strong in at the time of strong competition. Through innovation company
can bring latest idea and strategies which result in generating profit. Moreover, with the
assistance of same enterprise can generate more and more profit and help in examining the
efficiency and capabilities of the business (Den Hertog, Van der Aa and De Jong, 2010). Their is
requirement of proper planning for implementing successful innovation which is done by the
manager. Below mention are the steps involved in the innovation planning :- Problem recognition/goal – first step of planning innovation have to set goal as well as
identify the issue or problem of company. If goal are setted and problem is identified then
proper planning related to innovation can be done and issues through enterprise is going
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on will also resolved. Moreover, through this organisation can also measure actual and
standard performance of overall organisation after applying innovation. There are some
areas which needed to be consider while setting goals are : Participants, budget,
resources, time duration and so on. Idea generation – Second step after setting goal is generation of idea, in business there is
no limit of generating idea. Manager and other staff members can also go for idea
campaign and experimentation (Wang and Tsai, 2014). All the same, for idea generation
phase brainstorming is the suitable method when there is shortage of time or few number
of team members is involved for one particular purpose. It give wide impact on team
work and enhance it also. Designing and measuring concept – After selecting idea, then in third phase company
have to work on generated idea and method, prepare framework for it and then make
proper report related to framing and measuring concept. Report will include, goal which
need to be achieve, required duration for accomplishing it and outcomes desired. Pre-implementation - It is an experimental stage in which an enterprise can take a trial
of the chosen method for determining its skilfulness. This will assist in identifying
whether to apply the selected strategy for long or not.
 Implementation – Last phase is implementation, which is done after identifying
efficiency of the innovation plan. Then amazon can implemented pre-decided plan for
their planned duration. After, implementation of strategy it is important for company to
take feedback on regular basis and compare standard with actual performance of the
entire administration in relation to the innovation (Bhat, 2010).
For implementing innovation process successfully there is requirement of following
below mention points :- Communication – It is the two way process through which information can be transfer
with each and every individual. For gaining the desired results it is important to
communicate goals and strategies of the Amazon with every employees who are working
with them. Apart from their, in business firm their should be top to bottom
communication because all these things help in motivating employees. Thus,
management department of the Amazon have to take care of effective communication so
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they can negotiate with the staff members to be productive and contribute in the
innovation strategy. Internal Coordination – There is requirement of co-ordination within each and every
department for implementation of strategy successful in the organisation. Thus, manager
of amazon have to take care of co-ordination between every division. Resources – For implementing anything there is requirement of gathering resources
within particular time period. Same as in the applying innovation also and these resources
are time, training professionals and manpower for performing innovation strategy
(Dawson and Andriopoulos, 2014). Experimentation – This is necessary step which must be performed before
implementation of strategies. So that, organisation will not suffer much losses in future.
Thus, before implementation of any strategy Amazon have to experiment it on small level
for identifying its efficiency. Financial resources – For implementation of innovation it is necessary to have financial
resources. So that, organisation can do investment and if innovation get fail then they will
not suffer a lot. Amazon is the online retail company which have strong financial
resources for putting innovation and enhancing profitability.
 Unity in goals of individual and organisation – For implementing innovation and
avoiding conflicts there is requirement of unity in the organisation goals and every
employees. Moreover, it will assist in making roles and responsibilities clear as well
amazon have to discuss the purpose of innovation with the staff members. Because it will
result in making team responsible along with this, build confidence and trust in them.
From the above discussion it has been identified that leader of Amazon can implement
plan and innovation strategy in proper manner with the help of their employees only.
Innovation capabilities of Amazon :- Respective company is taking major steps in the
area of innovation and for establishing capabilities. There are as follow :- Continuous view towards evolve and improve: Amazon is the organisation which always
focus on introducing new things and stand true on them. They take care of their own
evolution which is the fact that Amazon is introducing new products rapidly.
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 Priorities are customers: Every customer want priority from company they are doing
shopping same with the Amazon also they put on priority to their customers. This results
in converting them loyal.
Future capabilities of Amazon :- Respective organisation is meeting needs and wants of
customers but for maintaining same position in future it is must for them to innovate their
capabilities. Although, Amazon is going to innovate their goods and services by 2020. These are:
Amazon is an store in which there is no requirement of human beings except customers. It is
kind of store where customers can take products and only requirement of checkout. Another
innovation is, Amazon Drones which assist them in attracting customers and making shopping
easy for them (Dodgson, 2018). Drones themselves go and tell qualities of goods and services to
them. There is no human capital needed.
CONCLUSION
As per the above described report, it can be concluded that innovation play an important
role in developing effective position in the whole market place among huge competitors. This
project contains future innovation capabilities of Amazon in which it has been explained about
required skills and establish products which offer in the market place. Amazon is exploring
various new ways which help customers to find unique product and services. Amazon is the
company which have several blockages in their innovation way because in this there are several
things which they have to be considered. In company there are several peoples who are working
and they all have their own knowledge as well as skills. Apart from this, Amazon have several
functional group or teams in which maintaining co-operation is necessary because modification
is always resisted by everyone in first time.
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REFERENCES
Books and journals
Biemans, W., 2018. Managing innovation within networks. Routledge.
Andriopoulos, C. and Lewis, M.W., 2010. Managing innovation paradoxes: Ambidexterity
lessons from leading product design companies. Long range planning. 43(1). pp.104-122.
Seebode, D., Jeanrenaud, S. and Bessant, J., 2012. Managing innovation for sustainability. R&D
Management. 42(3). pp.195-206.
Dodgson, M., Gann, D.M. and Phillips, N. eds., 2013. The Oxford handbook of innovation
management. OUP Oxford.
Jaw, Y.L., Chen, C.L. and Chen, S., 2012. Managing innovation in the creative industries–A
cultural production innovation perspective. Innovation. 14(2). pp.256-275.
Nambisan, S. and Sawhney, M., 2011. Orchestration processes in network-centric innovation:
Evidence from the field. Academy of management perspectives. 25(3). pp.40-57.
Talukder, M., 2016. Managing innovation adoption: from innovation to implementation.
Routledge.
Van Lancker, J., Wauters, E. and Van Huylenbroeck, G., 2016. Managing innovation in the
bioeconomy: An open innovation perspective. Biomass and Bioenergy. 90. pp.60-69.
Bernasconi, M., Harris, S. and Moensted, M., 2013. High-tech entrepreneurship: managing
innovation, variety and uncertainty. Routledge.
Den Hertog, P., Van der Aa, W. and De Jong, M.W., 2010. Capabilities for managing service
innovation: towards a conceptual framework. Journal of service Management. 21(4).
pp.490-514.
Wang, C.J. and Tsai, C.Y., 2014. Managing innovation and creativity in organizations: an
empirical study of service industries in Taiwan. Service Business. 8(2). pp.313-335.
Bhat, J.S., 2010. Managing innovation: Understanding how continuity and change are
interlinked. Global Journal of Flexible Systems Management. 11(1-2). pp.63-73.
Dawson, P. and Andriopoulos, C., 2014. Managing change, creativity and innovation. Sage.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
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