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Innovation and Commercialization - Amazon Go

University: The University of Sydney

  • Unit No: 8
  • Level: Undergraduate/College
  • Pages: 7 / Words 1721
  • Paper Type: Assignment
  • Course Code: 22573
  • Downloads: 679
Organization Selected : Amazon Go


Innovation is characterized as a process of translating an invention or idea into product and service that creates some value for customers or which they pay. Commercialization refers to the subset of broader innovation process which is driven by profit motives and market (Aarikka-Stenroos and Sandberg, 2012). This assignment is based on case study of Amazon Go in which firm wants to open checkout-free grocery stores where consumer can pick up their groceries and walk out without having to queue up and pay at checkout. This report covers significance of innovation and difference between innovation and invention. 4P's of innovation, innovation funnel and role of frugal innovation in development of Amazon Go is also discussed in this project.

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P1 Difference between invention and innovation and importance of innovation in comparison to invention, to organisations such as Amazon Go

Innovation: It is defined as the process of converting an idea into good or service that provides some value to customers for which they pay. In businesses, innovation occurs when ideas are implemented by firm to further satisfy expectations and needs of customers.

Invention: It refers to the process of creating something such as technique, method, device, product etc. which is unique and completely new that has never been seen before (Eesley, Hsu and Roberts, 2014).

Difference between innovation and invention

Basis for comparison




Invention occurs when a unique product is introduced in market which has never been seen before.

Innovation occurs when a new or innovative feature is added to existing product of company.

Concerned with

It is generally concerned with single good or process.

It is concerned with combination of distinct goods and processes.


Amazon creates humble announcement that can be seen above board of Bezos playbook: Amazon Go. This is a new kind of store in which checkout-free system is installed. Therefore, it is considered as an invention part.

Amazon Go is a new outlet in which no checkout is required. In this, firm bring innovation in their process by creating “Just Walk Out Shopping experience for customers.

Significance of innovation in comparison to invention:

Maximise profitability: For attaining high sales and profit ratios in market, Amazon Go needs to have large customer base. By introducing innovation within organisation, firm can be able to do so. Innovative services of Amazon like free checkout system helps company in attracting large group of customers as it saves their time. This kind of innovation assists firm in maximizing its profitability in an effective way (Ge and et. al., 2017).

Attract large group of customers: In order to increase the customer base, innovation is more crucial and effective process for Amazon Go as compared to invention. By bringing innovation in product and services, company is able to administer high quality innovative products to its customers. This enables firm to attract large number of clients which ultimately increase its profit ratios.

P2 How organisational vision, leadership, culture and teamwork can develop innovation and commercialisation

Organisational leadership, vision, teamwork and culture plays crucial role in developing innovation and commercialization within company. All such aspects play crucial role in effectively bringing innovation and commercialization within Amazon. These are defined below:

Vision: It is an aspirational statement of what firm would like to attain in its long term future (Hausman and Johnston, 2014). It states organisational objectives which are intended to guide internal decision making of firm. Amazon's vision is to provide checkout-free services to customers in order to make their shopping experience excellent by using high end technology like sensors that track customer's activity. Effective vision of organisation helps employees to work creatively and innovatively towards attaining objectives.

Leadership: It refers to the ability of leading people, group or organisation. Leaders play crucial role in providing direction to manpower for their future course of action. Application of appropriate leadership style by leader of Amazon helps in performing tasks effectively and completing it on time. Good leadership and effective decision of leader helps in bringing innovation and commercialization within Amazon.

Culture: Culture of an organisation must be strong as it helps in motivating and encouraging employees to work towards attainment of its goals (Ke and et. al., 2016). All the individuals working within company has their different culture, beliefs and values. Amazon needs to eliminate these differences by developing clear flow of communication between employees. It assists in encouraging workforce to freely exchange their ideas and views which improves their creative thinking ability and helps in bringing innovation and commercialization within firm.

Teamwork: Collective efforts of all team members helps in effectively attaining goals and objectives of company. Amazon encourage its employees to work in team which assists in bringing innovation and commercialization within company. Formation of different types of teams helps in performing tasks more effectively which results in long term sustainability of Amazon in market (Thore, 2012).


P3 4P's of innovation and analysis and application of innovation funnel to Amazon Go

4P's of innovation includes product, process, people and press which are invented to narrow the investigation on particular area of company. These are defined below:

Product innovation: This is the process of making existing products of firm more better. In this, innovation takes place by adding a new feature into available product for making it more unique and attractive. Amazon mainly emphasize on constantly bringing innovation by making adding new features in its products.

Process innovation: This innovation helps company in making alterations in its delivery process. Amazon made changes in its delivery process by open up its checkout-free grocery stores which saves time of customers as they do not require to stand in queues for paying bills.

Press innovation: It involves the surroundings where people work and perform operations in order to develop new product. It covers culture, practices and resources of company. Amazon can develop healthy surroundings within firm so that, employees feel happy and encourage to work in more effective manner towards attaining goals of organisation.

People innovation: People play crucial role in growth and success of organisation. They use their knowledge and skills that helps them in developing innovative products. Amazon motivate their employees to utilize their skills and knowledge in appropriate way so that, they enable to deal with customers in more effective manner (Walsh, 2012).

Use of Innovation funnel:

Innovation funnel is the tool that is utilized by companies in order to assess ideas and conceptualize product. The purpose of any process or product development project is to convert an idea from concept into reality via converging to a particular product that helps in meeting needs of market.

P4 Critical evaluation of role of frugal innovation in development of Amazon Go

Frugal innovation:- According to this methodology, Frugal plays vital role for international company and enterpriser that how will they invest uniquely in order to beat external completion. This practice helps in merging various market segments of a company. Move over it describes merits and drawbacks of Frugal innovation and aids to transfer the concept of life by comparing present situation with standard conditions. Henceforth, this activity act as guidance for production sector as how to produce cheaper and quicker in order to satisfy consumer needs and wants. In respect to chosen company Amazon Go, has opportunity to control production process as to provide good quality products at lower rate to overcome consumer demands in short period of time. Thus, this innovation program helps company to attain revenues with maximum sales (Yin, Shi and Yan, 2014).

Present reports covers case study of Amazon Go. The main motive of a company is to reduce customer burden by offer them checkout-free shopping experience and acquiring maximum ratio is market share. This methods influence company to lower the cost and maximise the profits. Amazon Go aids to develop with new tactics and software which helps firms to generate more profits and render quick services to consumer. For fast and more development, manager needs to take care are as follows:-

Reduction of production cost:- In this process primary objective is to decreasing the cost production in very initial level. It guides organisation to reduce the wastage of resources through proper usage of goods in accurate manner.

Developing innovative feature:- To beat external environment, organisation allow innovative thoughts and ideas for launching new feature in existing products. Therefore, these practices help firms to face challenges and built strong competition for other companies (Yin, Shi and Yan, 2014).

Application of advanced technology:- This techniques mainly take place with dynamic environment through adopting various advanced application in organisation. It helps a company to get ensured before implementing a plan effectively. Thus, it develops higher level of Amazon Go.

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As per the above mentioned report, it has been concluded that innovation refers to the process in which concepts are translated into products that creates some value for customers. Vision, leadership, team work and culture of organisation helps in bringing innovation and commercialization within firm. Innovation funnel is used by company to assess idea and conceptualize product. The concept of frugal innovation is utilized to minimise cost and complexity of product and its production

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