Case Study – The Amazon of Innovation

Table of Content

Amazon is a company that is widely recognized and highly regarded.

The company is famous for its online retail shopping, specifically its popular Kindle Series with e-bookstore, cloud services, and order fulfillment services. Amazon exemplifies a perfect collaboration system, effectively utilizing all of its information systems.

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In this case study, we can delve into the extensive background of Amazon and explore specific questions that help us understand how Amazon demonstrates its ability and willingness to collaborate, experiment, execute systems, and engage in abstract thinking. These questions, along with others, will be further elaborated upon.

Q1. Amazon showcases their willingness and ability to collaborate through constant growth and innovative creations, which demonstrate their fruitful collaborations with employees and other companies.

The case study did not provide specific illustrations, but one can imagine the collaboration that occurred between Amazon during the 2010 holiday season. During this time, orders were shipped to 178 countries and 9 million units were shipped on their busiest day of fulfilling orders (Kroenke 29). Given the magnitude of these orders and units, it is inevitable to acknowledge the significant role played by collaboration and teamwork in making that period a success.

We can also examine the previous knowledge of Amazon and the growth of their Kindle series and Kindle bookshop, which demonstrates a great example of collaboration because one developer’s idea had the potential to become more successful through collaboration.

Q2.

In what ways does Amazon, as a company.

What forms the basis for the desire and capability to collaborate? Starting in 1994, the immensely popular Amazon was just a small and relatively unknown online bookstore. However, this fact might have been unnoticed at that time.

Amazon swiftly emerged as the paradigm for e-commerce (Kroenke 29). Yet, their ambitions extended beyond book sales; they aimed to broaden their customer reach by providing a diverse array of products. Despite the obstacles encountered, this determination is hailed as their most brilliant concept.

Despite a few failed experiments, such as their attempt to implement auction-style merchandising in 1999, unfortunately, they were unable to compete with eBay (Kroenke 29).

With that said, online retailing is an experimental endeavor. It is challenging to make sales as the customer is responsible for all the steps, and every attempt to sell an additional item requires an investment.

Amazon’s ability to predict sales forecasts is impressive, despite the uncertainty surrounding the actual sales prognosis. However, it remains a matter of trust that customers will continue to purchase their products, which has been consistently observed year after year.

By continuously expanding their product range, in the hopes of enticing customers to make purchases, they have achieved remarkable success. In addition, they made a daring move by introducing the Kindle.

The non-disappointing experience of Amazon incorporates the introduction of “Prime Members” who are privileged members receiving special benefits.

Currently, this initiative is ongoing and provides free transportation, continuing to benefit customers who consistently shop on Amazon. Their feedback is essential for its success.

Amazon’s sterling international position can be attributed to their employees’ willingness to experiment and their ability to execute systems thinking and abstract logical thinking. Systems thinking allows employees to analyze and manipulate various components within a system, while abstract logical thinking enables them to create and manipulate models.

By believing in learning systems, one can develop better theoretical models and enhance the overall process. At Amazon, employees utilize these systems to create and implement effective shipping agreements that maximize cost savings and customer satisfaction. These skills can also be applied to improve the process of launching new products or determining assembly costs.

Question #4:

Describe.

The five constituents of an information system that supports order fulfilment have distinct functions. The Computer Hardware component comprises numerous connected computing machines facilitated by data communications hardware (Kroenke 11). On the other hand, the Software functions consist of multiple programs that manage and facilitate communication among these computers.

According to Kroenke11, there are additional plans aimed at simplifying the process of selecting, packing, and transporting goods from the warehouse. The system also has the capability to store data related to customers’ orders.

Clients’ profiles from previous orders include merchandise information, stock lists, and other details related to the transportation process. There are hundreds of different procedures that clients follow.

Warehouse employees, along with transportation companies, play various roles in the functions performed by Peoples. These roles include not only being the users of the systems but also operating and servicing the computers, maintaining the data, and supporting computer networks.

Question #5: Choose any five of the inventions in Figure 1-7 and explain how Moore’s Law has facilitated them. According to Moore’s Law, the number of transistors per square inch on an integrated chip doubles every 18 months. Therefore, we can attribute the advancement of these inventions to Moore’s Law.

According to the statement, the expenses related to information communications and storage are virtually nonexistent. It is believed that Moore’s Law plays a key role in enabling Amazon to maintain a complete history. Particularly, this includes being the first online bookseller.

The Kindle 2, Kindle DX, and Kindle Fire are all being released by Amazon.com.

Moore’s Law had a profound impact on Amazon, both positively and negatively. It allowed Amazon to integrate auction elements similar to those found on eBay. However, this endeavor proved unsuccessful due to the influence of Moore’s Law.

Competing against eBay was proven to be challenging because of its excellent combination of affordable prices and exceptional performance. However, as the aforementioned four successful innovations were consistently introduced one after another.

There was a creation of new territory. The display of these innovations to the public continued to progress and the prices decreased. This was due to both the achievements of Amazon and the failures, which were all validated by Moore’s Law.

Since 1994, they have been able to participate in this type of public demonstration and reduce costs by introducing new inventions every year. Imagine you are employed by Amazon or a company that values innovation as much as Amazon does.

If an employee expressed uncertainty to their supervisor, stating “But I lack knowledge of how to accomplish that!”, the probable response would involve the supervisor elucidating that innovation encompasses attempting something unfamiliar. They might propose that in order to acquire understanding, the employee must engage in experimentation and cooperation with peers.

Sometimes, it is acceptable to have a limited understanding when exploring unfamiliar territories. This is, in fact, the primary driver of innovation: uncovering something remarkable and perhaps slightly unconventional.

It is crucial to grant employees the freedom to experiment, even in areas outside their expertise. Restricting this ability hampers the introduction of anything new, which goes against the purpose of working for innovative companies like Amazon.

I expect that the foreman will have a conversation with the employee about the importance of innovation. If the employee refuses to try the new task they were assigned, it could result in them being fired.

Question # 7:

In your own viewpoint and based on your personal experience, what skills and traits do you think are crucial for succeeding at Amazon? How would you handle managing such a large and well-known company like Amazon?

Having a diverse range of skills is crucial at Amazon, although some skills are more significant than others.

Customer Service/Communication, Knowledge of Computer Systems, and Creative Thinking/Problem Solving are essential abilities and skills that have significant importance in any setting.

When it comes to individuals, they desire a genuine sense of caring for their well-being. If they cannot perceive your level of concern, they typically will not respond with the same level of care.

Showing genuine enthusiasm for others’ ideas can boost the likelihood of getting support and reciprocation, leading to higher profitability.

When it comes to traveling, potential issues may arise. If you opt to become an online retailer, a strong understanding of computer systems is necessary. However, the more knowledge you have.

Doing things easier and more flexible for the client is beneficial, especially in case the website crashes. Additionally, people appreciate relaxation.

User-friendliness and speed of a website are crucial for meeting user requirements. Ultimately, expertise in creative thinking and problem-solving is essential.

Having a mindset that goes beyond conventional thinking and generating innovative ideas is essential for product development and customer satisfaction. These concepts are crucial in creating and successfully marketing distinctive products, which ultimately contribute to expanding the company’s market presence and boosting its financial profits.

Furthermore, teamwork is essential when working for any company. Coaction and cooperation are necessary in order to accomplish tasks successfully as a team.

Collaboration and cooperation are essential in any field of work as they prevent the damage of merchandise and make the work more challenging. Without collaboration and cooperation, working becomes difficult.

When it comes to working for Amazon, having these skills is crucial for achieving the highest profit and customer loyalty:

  • Acquiring only second-best
  • Seeking fortune
  • Believing in the importance of these skills:
    1. Ability to possess
    2. Achieving the greatest amount of profit
    3. Gaining returning customers
  • Being a company.

Amazon demonstrates the advantages of a company. They have shown their willingness to take risks and, over time, we have been able to witness their collaborative efforts, even if it is just through their achievements.

They have tried, but failed; however, they have not given up hope or the act of experimentation.

The team demonstrates creativity by thinking outside the box and presenting consumer-pleasing merchandise. Their inventions exemplify Moore’s Law, while their order fulfillments showcase the five constituents of information systems.

If businesses want to achieve the same level of success as this one, they need to be more progressive, open to experimentation, and adept at abstract thinking. Embracing fresh concepts and taking bold risks are crucial for their growth.

Through determination and collaboration, an online retail merchant has emerged as one of the largest and most respected online businesses in our time.

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