Innovation Definition

Businesses enterprises run the economy of every country in the world. Therefore, a robust economy is rooted on the ability of industries to survive and adapt in turbulent times and further re-align to meet the needs of the community. Businesses achieve this through being industrious, innovative and resourceful. Innovation largely contributes to the success of a company and ultimately the growth of the industry. The market environment is dynamic which has become a hub for innovators who continually invent ideas and multiple solutions. Innovators always brainstorm to come with the idea that offers multiple solutions. Innovation is extremely beneficial to the extent that companies often see their staff creativity as an asset. To nature and improve this, they organize seminars and training to update their human resource.

This research paper has an objective of establishing the importance of incremental innovation to the e-commerce business. Foremost, the paper digs to e-commerce nature of the firm and its positives to the users; the platform on which the company operates and some of its impediments to its operations. Further, this research discusses some of the emerging innovations in e-commerce business and what it means to the firm and customers; what advantages it brings with it. Finally, the paper makes a conclusion based on the discussion in the research.

Innovation is simply a twist of an existing product or service to realize uniqueness which ultimately satisfies the needs in the market. This is an asset to organizations considering the dynamic environment prompting the need to remain relevant, efficient and useful to customers. The fast changing business environment has made organizations to continuously seek ways to improve their processes to meet emerging needs and cope up with trends. These companies form sustainable and dependable systems meant to deal with market competition from rivals and meet the demand (Engineering UK, 2014).

Organizations come up with innovations after analyzing several factors in the environment. These include considerations of the recent trends, collecting and analyzing data and engaging customers to understand their preferences. After that, technical team in the organization tailors the product or services to encompass specifications of customer’s tastes and preferences (Lawrence, 2014).

Innovation at Amazon can be said to be radical or incremental. The radical innovation (also called disruptive) is the kind that affects the market of a given sector and thus impacting on the economic activities of this company. An example include adoption of the use of the virtual space. On the other hand, incremental innovation is focused on the already existing Amazon’s processes, products or services and on how they can be improved. An example include continuous improvement of the website. Thus, incrementally is concerned with upgrading what we already have in place. Both types of innovation are critical in Amazon and should not be ignored.

The e-commerce business is anchored on several factors that keep the business of Amazon rolling; which includes, but not limited to quick delivery timeliness. Giant e-commerce business understands the essence of short delivery timeliness, and there have invested heavily in innovation and technology. Amazon online company has launched drone delivery to its customers making significantly shortening the delivery period and delivering an amazing customer experience. The drones are pilotless planes controlled for delivery purposes.

Types of Innovation

The growth of e-commerce is a plus to the customers of Amazon Company, who benefit due to the convenience of an in-home shopping experience, anywhere and anytime. The convenience drives Amazon’s online shopping business because it presents to its users regarding fast delivery, anytime access and much more as mentioned. The one click ability of Amazon’s e-commerce has simply created a revolution in the shopping experience and thus gaining more grounds to the type of business. Therefore, it is evident that the success of Amazon lies in innovation.  Companies must make efforts to stay innovative because it is a strategy to stay competitive in the market.

Innovation promotes competition of Amazon in the market. This is because the companies that would have invented products or services will gain market share; and as a result, Amazon’s rival companies will work around the clock to come up with something that meets the need of the market in a bid to regain its market share. Competition is therefore bred and the customer, therefore, gains due to the availability of quality products and services (Staff, 2007).

The drone delivery has rapidly grown in popularity and emerged as one of the Amazon’s innovative market trends. See figure 1.0. This change significantly boosts the Amazon’s business of the company employing it because hours or same day delivery becomes a reality to its customers. However, the drone innovation is faced with a couple of challenges that it is an impediment to its full and wide implementation. The setbacks include air space regulation and the huge costs involved (WEF, 2013).

Figure 1.0

Amazon has added a feature of live chat which makes shopping experience exciting. There is this live chat that one engages in ones in these websites. It is so much useful to the visitor of the site because one gains knowledge of things not known and also gets ans

Figure 2.0

Beacon technology is one recent innovations at Amazon meant to stimulate sells through enticement messages. The application is downloaded and installed in phones. It ideally monitors the location and movements of the user comparable with the companies branch (Engineers Australia, 2012). The application, at losing range, sends messages of offers available and deals enticing the user to visit the nearby store and check for the products. Beacon technology is gaining grounds real quick since its initiation in 2013.

Figure 3.0

This type of innovation enables shoppers to buy Amazon’s products immediately through Pinterest and also save for later buying into the boards. The simplicity in the technology is the one click button to complete purchases.

Amazon has employed the Chatbot on the Facebook Messenger in its e-commerce business. This is the second most popular messaging application and therefore, companies leverage its popularity to bring gains. In addition to this, the plug-in features an AI-powered bot that can automate a whole host of tasks, from running Amazon’s adverts on Facebook or Instagram to distributing email campaigns (Crossrail, 2012). It even allows customers to shop, ask questions, or receive updates about their purchase, all without ever leaving Facebook Messenger.

Innovation in E-commerce Business

Chat box has brought a significant digital change in the Amazon’s e-commerce business especially its consumer interactions. This innovation has numerous advantages. Firstly, it has scalable customer service with very minimal human interaction that is unavoidable (Bakken, Hernes and Wiik,2009, pp. 169-182). It has improved Amazon’s customer intelligence and increased competition amongst businesses. Also, it has provided different navigational experience – conversation-based interface to find information, less text-based searching. Besides, it has personalization which is more like interacting with a good friend than a business (CSIRO, n.d).

Innovation has played a significant role in transforming Amazon’s transaction to paperless. This is necessary for the security of both the company’s clients and the delivery personnel for the company. The e-payment enables the Amazon’s customers to make payments via cards and other mobile applications on the delivery of their purchased items. Also, this system enhances audit trail and accountability of revenues of the company employing it.

The technology proves to be very useful when potential users visit the website of Amazon. The customers are directed on how to navigate the website and make purchases to completion of a transaction. This is a plus to Amazon as it makes the websites user-friendly and ultimately increases the chances of return customers (Lerner, Sorenson and Stromberg, 2008).

Social media has become an avenue where potential buyers look for Amazon’s products and services. Amazon has realized the power of social media and acted to utilize the same to market their business and improve their public relations. As a result, this has become more direct purchases on social media when options are made available to potential buyers. Averagely, face book is the source of roughly 64% of social sales worldwide, while 93% of Pinterest users have bought something online in the last six months (Coleman, 2013).

Amazon is now advancing to branded and custom videos to boost their sites and generate traffic. The video contents are ideally tailored to give insights into the business operations and the value their customers are likely to gain. The clips are made to be easily shared to market and gain trust with prospective

Amazon has also employed a Droid technology in its business. Droid delivery service is an innovation that brings the delivery solution on the ground. The little robot traveled alongside pedestrian sidewalks and controlled to the delivery location. It moves at a speed of four miles per hour, however, some able speeds can be more than twice of this). To enable this functionality, the little machines are fitted with cameras and microphones to enable visibility and two-way communication to the control center. GPS tracking and also the censors which aid in navigating obstacles or the foot traffic on the sidewalks. The little delivery droids are environmentally friendly. They use less energy compared to most light bulbs and because they reduce the vehicle emissions and also yet they are quicker in delivering products (National Science Foundation, 2011).

Figure 4.0

Augmented reality was explored to boost online sales at Amazon by the use of virtual reality technology which is informed of handsets or Google that create. This technology provides a 3-D shopping user experience and further provides retailers as the in-home extension of their physical stores which has the ability to increase sales with simplistic and unique user experiences and the built-in up features that promote sales. Google technologies or virtual reality headsets are growing in popularity due to their functionalities regarding retail marketing. Google Technology helps Amazon’s shoppers to realize the comfort of their home and envision it into an interactive dressing room. The Google can then guide the shopper makes correct choices regarding suitable sizes as well as propose accessories that are matching. By utilizing this technology to choose garment sizes accurately, the number of online return shipments will go down.

Benefits of Innovation to E-commerce

The Google technology has become a game changer innovation for Amazon’s business. The company can now display the look of their products in the home of the customer and allow a customer to have opportunities of a range of furniture to choose what styles they do like best (Sandra, 2008). For example, a shopper will be able to select their choice and visualize a couch, moving it to various sides of the room to visualize their look or even try a different size to ensure that it fits in a specific space. Technological advances have become major stepping stones to e-commerce business by leveraging new capabilities. It reduces long-term costs and also delivers the customer rates in a fast way (Tassey, 2011).

There is an increment rate of Amazon’s order fulfillment due to an in-home shopping experience that’s highly attractive to users, and further which reduces the rates of returns because of an enhanced, accurate sizing abilities. The Specialty retailers can be in a position to get better chances to sell unique pieces online as clients will be able to see products in their homes (David, 2013). Appliance technologies like the smart refrigerator will capitalize on repetitive kitchen purchases and will simplify ordering online with delivery options (James, 2014).

Innovation at Amazon is faced with several impediments. This includes the costs involved in inventing and implementation of the idea. There are technological costs and learning curve costs that will be incurred by the firms daring to take the path of innovation (Zahra, 2009, pp. 519-532). Secondly, there is resistance from other people in Amazon for fear of unknown. Some people may be worried that the new system will cost them their jobs and therefore not support the idea or sabotage its implementation (Edmiston, 2010).

Conclusion

Conclusively, innovation has played a vital role in shaping the e-commerce business. These inventions serve to improve the quality of products and services and therefore to gain more sells to these organizations. Nevertheless, innovation faces several hurdles both caused by human and environmental factors. Success in modern business lies on how best the company has employed innovative ways for their productivity. Thus, innovation is critical to the success of companies.

References

Bakken T., Hernes T., and Wiik, E. (2009).  An Autopoietic understanding of ‘innovative organization.’ In: Magalhães R, Sanchez R (eds) Autopoiesis in organization theory and practice. Bingley: Emerald, 2009), pp. 169-182.

Coleman, A., (2013). Targeting networking and social media: how to win a new business effectively. The Guardian, [online] 13 May. Available on https://www.theguardian.com/small-business-network/2013/nov/27/targeted-networking-social-media-business [accessed 30 August 2017]

Crossrail, (2012). Innovation Strategy: Moving London Forward, [Online]. Available at: https://www. crossrail.co.uk/sustainability/innovation/

CSIRO, ( n.d). An Introduction to Pulsars, Australian Government, Accessed 30 August 2017, https://www.atnf.csiro.au/outreach/education/everyone/pulsars/index.html

David O. (September 11, 2013). Ogilvy on Advertising. Knopf Doubleday Publishing Group. ISBN 978-0-8041-7005-5.

Edmiston, K. (2010). “The Role of Small and Large Businesses in an Economic Development.” Economic

Engineering UK (2014). The State of Engineering. Foreword the Rt. Hon Dr. Vince Cable MP, Page II. Found at: https://www.theengineer.co.uk/Journals/2013/12/06/v/x/t/EngineeringUK_ Report_2014.pdf.

Engineers Australia (2012). Innovation in Engineering Report June 2012

James, W. (2014). Your Small Business Adventure: Finding Your Niche and Growing Successful Business. ALA/Huron Street Press. ISBN 978-1-937589-44-8.

Lawrence, D. (2014). Disruptors are just pirates on high seas of capitalism. The Globe and Mail Special on Business Education. Available at https://www.theglobeandmail.com/report-on-business/careers/business-education/disruptors-are-just-pirates-on-the-high-seas-of-capitalism/article21443149/ Retrieved on 29 Aug 2017

Leitao, J., Baptista and Rui (10 June 2009). Public Policies for the Fostering Entrepreneurship: A European Perspective. Springer Science Business Media. ISBN 978-1-4419-0249-8.

Lerner, J., Sorenson, P. and Stromberg, P. (2008). “Private Equity and the Long-Run Investment: The Case of Innovation.”

National Science Foundation. (2011). Engineering Innovation Center Brings Together Tools to Launch, Press Release 11-150.

Sandra, B. (March 29, 2008). International Brand Management of the Chinese Companies: Case Studies on  Chinese Household Appliances and Consumer Electronics Industry Entering US and Western European Markets. Springer Science and Business Media. ISBN 978-3-7908-2030-0.

Staff (May 27, 2007). “Best Buy Accused of Overcharging In-Store Shoppers.”Associated Press (via CNBC).

Tassey, G. (2011). “Beyond the Business Cycle: The Need for the Technology-Based Growth Strategy.” NIST Economics Staff Paper, December. Available at: https://www.nist.gov/director/planning/upload/beyond-business-cycle.pdf.

WEF (2013). The Global Competitiveness Report 2013-14. September2013, World Economic Forum (WEF) www.weforum.org

Zahra, S.(2009). “A typology of social entrepreneurs: Motives, search processes and ethical challenges.” Journal of Business Venturing, pp. 519-532