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Concept of Innovation, Invention and Creativity - Amazon Go

University: Mont Rose College of Management & Sciences

  • Unit No: 6
  • Level: Undergraduate/College
  • Pages: 13 / Words 3298
  • Paper Type: Assignment
  • Course Code: LSS2403
  • Downloads: 494
Question :

This assessment will have few questions which are like:

  1. Elaborate the effective innovation and invention.
  2. Explain the 4P’s in marketing.
  3. Define frugal innovation in Amazon Go.
Answer :
Organization Selected : Amazon Go


Innovation is the process related to the transformation of an idea or conception from one to another or into goods and services which increase the value of those goods within the organisation and will satisfy customers. It is understood as a combination of new ideas that are applied to make effective changes in the existing goods and services in order to increase the performance and productivity of goods. It is very necessary for every organisation to make innovative ideas in order to meet the fast-paced environment where technology is changing regularly and globalization is increasing consistently. In business, it is the introduction of different products and services that will increase the value of that particular company. In this report, Amazon Go's importance of innovation and invention has been discussed for a better outcome and to improve the expansion of the business (De la Mothe and Paquet, 2012).

In this project report, different tasks are shown such as the concept of innovation, and the difference between invention and creativity. This report also focuses on the different types of innovation, the process of commercialization and different tools for rational property have been discussed.

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P1 Importance of innovation and comparison with invention.

Innovation: Introduction of New ideas is commonly known as creativity or innovation. In general, various new methods and tools that are used by every organisation which help them to improve their operation and achieve goal in a specific period of time. It is related to the process of translating new ideas into product and services so that values can be increased that will benefit customer the most and for which they are ready to pay prices. In business, it is often said to be the positive result when ideas are applied by the management of company that help them to further satisfy the wants and expectation of the consumer. This concept is totally different from creation as it is an act of making, inventing and producing something. Innovation is so crucial for companies, as it create bigger opportunities that is useful for survival in competition market, economic growth as well as have a positive result to the success of company.

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Importance of innovation: It is one of the most crucial concerns of all organisation and have an important role in development and coordination of the market is absolute. It has a key importance to the companies that are able to set the innovate ideas in different business operation in order to identify new opportunities and figure out best methods to solve the current issue and ascertain upcoming problem. The benefits of innovation are different for small and large enterprise such as in large companies manager tries to innovate new ideas to introduce new product or services that expand their business. While small enterprises keep innovating new thing to survive in competitive and fluctuating market. For example, if small companies is selling their product at retail or wholesale market they are not able to generate more profit. So in order to increase the profit manager of company apply innovate idea to sell their product online, by creating mobile app or displaying information related to discount on product via blogs and online account, as a result their profit will be increased. Some of the importance of innovation for company are discussed below:

  • Attract more customer's: It is related to one of the most effective way to increase profit within company, as huge customer base the more profit will be generated. Company apply various method to attract buyer such as displaying message on online website, sales message on mobile and discount ad on TV, radio, Facebook, Amazon videos etc. In the company Amazon Go manager should innovate new ideas to improve services and goods that attract more customer. Thus as a result it will improve the financial wealth and increase the productivity and profitability of business operation of Amazon Go.
  • Profit maximization: This process is related to ascertain of bet output and price level in order to get maximize profit as a return. In order to get maximum profit companies usually adjust the influential factors that are production cost, price of product, the total level of output involved in production that result in reaching predefined profit goals. Basically there are two main method of profit maximization that are applied by manager such as marginal revenue method and total revenue method. It is very important, that company should fix faithful price of their product in order maximise profit otherwise customer will move toward cheaper product if prices are higher. It is very important for Amazon Go to have a strong customer base that will increase sales and generate more profit. So manager of this company should innovate their services such as improve delivering services that is “pick goods and walk out service”.

Comparison between innovation and invention

Basis for comparison




Invention is the introduction to the presence of a plan or idea for a process and product that has never been created before.

Innovation is a process that is related to the development of new idea and creativity to do certain business operation.

 Important Concern

Invention is primarily obsessed with individual procedure or product.

Innovation is a collection of different process and production.


Amazon develop a modest announcement that sees above board of the Bezos playbook: Amazon Go. It is a new type of store with no checkout required. Thus, it is a part of invention.

Amazon Go is a kind of fresh store that do not required check-out procedure. In this company manager innovate to provide services such as to create “ Just Walk Out” Shopping.

P2 Leadership, teamwork, vision and culture for innovation and commercialization.

In an organisation, it is essential to determine various roles and responsibility that can assist in attaining overall aims and objectives more effectively in near future time. In accordance to innovation, there is various crucial role which is played by leaderships, culture, team members and overall vision that can shapes commercialisation and innovation within Amazon company. Every element is necessarily vital for Amazon co in content to bring commercialisation with the innovative ideas in an organisation (Drucker, 2014). Some of them are discussed below:

Vision: This could be referring as the upcoming plan of the company. It is applicable in an organisation by the manager in disbursement of roles and responsibility and overall duties of workers. It is very crucial for companies to have an innovative vision that help them to accepts changes and overcome challenges. To create a innovative vision, there are some basic steps that are described below:

  • Define challenges: It is very necessary for company to first define challenges of organisation that are not letting company to become innovator. These factors may be sight of customer, right people to address, hire new efficient employees etc.
  • Know organisation well: This is related to solving of each challenges that are faced by company and list the ideas as opportunities to be solved.
  • Define direction: This is related to making direction in appropriate manner so that challenges are resolved easily without any mismanagement.
  • Define Innovative Vision: This is the final steps of crafting innovating vision in articulating a single sentence for the company.

The vision of Amazon co is to deliver check-out free shopping experience to their client with the assistance of several updated tools that can be use by the sensor fusion and computer vision.

Culture: A cultural of innovation is related to an environment that helps in creative thinking and supports them to extract economic ans social knowledge. It help to generate new improved product and services or improve the process of production. In companies, booming culture of innovation could be advantage to the exiting strength and may improve the quality of good and services. It is vital for Amazon Go, to make their target on culture effectively to attain their maximum outcome from the sale of their products and services. In case they want to reduce the gaps in their culture that present in their workers. In this regards, Amazon co required to give proper values, beliefs and regulation that are applied within an organisation.

Leadership: It is defined as the ability of a company's management that enables them to set objective and attain challenging goals by making effective strategies. This provide direction for benefit of company that is related to making employee capable to perform certain business task to reach the desired goals. It involves of showing worker the way to perform duties and responsibilities and regularly supervising them for completion of their task. This is one of the essential ways to make use of innovative leaderships ability to guide employees in accordance with the application of unique technology and working style. An effective leader can take his team to attain organisation goals in direct direction. It will guide team members to bring commercialisation by the help of their innovative thinking.

Teamwork: This is the process of working jointly with group of different people in order to attain a predefine goal. Teamwork is very important for every business as it if employee work together, they work with more potential and result in achievement of company goals. It is known as a collaborative or cooperative efforts of a team that work in order to attain common aims and objectives that are set by Amazon company. there are various group of people each of them are capable enough in bring innovation and commercialisation with the all efforts and skills. By the help of this, they can easily be able to attain sustainability at the marketplace (Gawer and Cusumano, 2014).

M1: Analysis of various source of innovation

As innovation is one of the crucial and important think which is required to be done within an organisation. There are various sources such as industry and market structure changes, demographic and new knowledge’s are used while making any decision in the company future planning. By maintain an open dialogue among employees and upper management in order to present their ideas can provide management to foster and develop an effective environment of innovation management in the company.


P3 Importance of 4Ps of innovation for better development of ideas.

Innovation is a process that is related to the “4Ps” model that is a powerful tool for analysis. So it is has been effective process that includes different parts such as process, product, people and press that is essential for better and positive innovation.

Product: This is related to a good, idea, method, information, or services and goods that is a result of business process of company to satisfy customer demands and needs. There may be combination of both tangible and intangible attributes such as features, function of product that are offer to a buyer for making purchase. It is the process of innovation that is related to introduction and improvement of available product. In production process, innovation is simply on to add new features in goods or increase the satisfying level in services. Due to this process customer find best suitable goods and services that will satisfy their needs and desire. In Amazon Go employees are more focused to make fresh new and good quality of product that attract large customer from marketplace.

Process: In this type of innovation management focus on various processes through which goods are being created or services are delivered. Manager of Amazon Go should try to improve its process of delivering goods and increase effectiveness of other services. In company, management adopt new feature such as open checkout free grocery stores where buyer can simply come, buy and go with quality goods and services and bills are automatically billed to their Amazon prime account.

People: An individual person is an entrepreneur that create something new, inaugural in a business entity They use their ability and knowledge in order to prompt their employees for creating new products at marketplace. It is one of the main aspect of innovation because whole success and development of company is depending on them. In Amazon Go, manager use their ability to motivate and promote their workers to handle with customers in an effective manner so that their needs are fulfilled and company earn more profit.

Press: This part of innovation displays the environment and the status in which a respective company runs operation and functions in, to germinate the product (Jain and et. al., 2013). Thus innovation covers business firm resources, society and best pattern. In this Amazon Go, need to develop affable and healthy situation to their employees so that they perform their work happily and give their full endeavour in accomplishment of long term growth and success within specific time period.

Uses of innovation Frugal: This process is related to introduction and examine of innovative idea, as it helps management of Amazon Go to reduce the complexity and cost of product and its production. With the help of this technique company easily create and deliver different product and services at low price so more customer will purchase their product. Basically there are some common steps that are included in process of making new ideas that are discussed below:


(Innovation Funnel, 2017)

Wide of mouth: This activity is based on knowledge and skill development ability in manager so that new ideas make extant working of business in more effective manner. Amazon Go should collect data from various market and its trends through application of direct and alternate sources of data collection.

Narrow segment of funnel: In this stage the above selected ideas are developed in an organisation and most reliable idea is chosen. In general, it means that production of unique product is according to the needs and specification for customer. In Amazon Go, manager match their innovative plans with their present goal and ascertain the best that support in achievement of desired goals.

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P4 Development of Frugal innovation

Frugal innovation: It is basically developing in the circumstance of emerging market. It depends on developing goods and services those are cheap to buy and fits the market best and fulfil special wants and requirement of customer. In contrast, it leads and guides to innovation new product that were cheap, quality assured and better that satisfy customer. Through this process, Amazon Go produces good quality of product with faithful price so that their customer is not affected which result in generation of more sales and profit.

In Amazon Go, manager has a purpose is to provide free checkout shopping services to their customers and assume entire amount of market share. In this low cost production supports them in improvement of their probability (Lee, Kao and Yang, 2014). In order to create frugal innovation in the company, manager need to follow some steps which are determined as under:

Developing innovation features: Under this step new features and efficiency in the product and services are introduces so that customer is attracted more towards their services. This help Amazon Go to survive in challenging market and remain profitable through long run.

Introduction of advance technology: Technology is rapidly changing in today's world so with the introduction of new techniques explains the need of these technology. So it is very necessary for every organisation to be well educated about these changing technologies so that make them, capable enough to cop up with any future uncertainty. These new techniques help in making effective strategy and increase the productivity of company and improve the performance of in upcoming time. This step is important for company as it is the adaptation of new latest technology that increase the efficiency of it services. In Amazon Go manager, develop their working process by adopting latest and advance technology that will enhance the effectiveness and satisfying level of their services to customer.

M2 Different type of sales structure

There are different types of sales structure such as geographic area that means companies select an individual to sell their product or promote its services in a particular area. Manager of Amazon Go appoint individual person to promote its new service. Other is sales activities that means sales within and outside of the country. Manager of Amazon Go, sales their product both for home and export of goods. Marketing structure of product means that different types of product and services are produce for sales. In Amazon Go manager tries to established new services for sale.

D1 Analysis of innovation

Innovation is process that is first managed with the long term position but not measured in long time increments but rather in completion of targeted goals. So, measurement of innovation process in Amazon Go for implementable goals in three steps. These steps are identification of gaols related activity, short term deliverable and near term development.

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In the above report, it has been concluded that innovation is crucial and primary aspect for development and growth of company. Manager uses different type of innovation such as “4ps”, frugal, funnel and commercial for improvement of services. In this report various tools are applied in companies to protect intellectual property that are trademark, patents etc.


  • De la Mothe, J. and Paquet, G. eds., 2012. Local and regional systems of innovation (Vol. 14). Springer Science & Business Media.
  • Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
  • Gawer, A. and Cusumano, M. A., 2014. Industry platforms and ecosystem innovation. Journal of Product Innovation Management. 31(3), pp.417-433.
  • Jain, A., and et. al., 2013. Commentary: The Materials Project: A materials genome approach to accelerating materials innovation. Apl Materials. 1(1). p.011002.
  • Lee, J., Kao, H. A. and Yang, S., 2014. Service innovation and smart analytics for industry 4.0 and big data environment. Procedia Cirp, 16, pp.3-8.

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