1.

AmazonsBusinessProcessInnovation

Businessprocessinnovationradicallyalterstheolderparadigms,principlesand
conventionstocreateanddeliverbettercustomervalue.

Amazon is a consistent business process innovator because it questions what it does today.
Todays strengths may become tomorrows weakness. Amazon wanted to attack growth
induced stagnation and irrelevance of existing business processes with the axe of innovation.
ManycompaniesgobyonlythefounderswisdombutinnovatorslikeAmazoncantaffordto
sentimentalizetheiconsoftheyesterday.Amazonquestionsandbreakstheexistingprocesses
toallowfreshbreathintonewprocessesasfollows.

2013:DevelopingFulfillmentCapabilities:SundayPackageDeliveryModel
IncreasingnumberofWarehouseswith50newwarehousefacilities
Businessprocess:TobringUSpopulationinthesamedaydeliverycatchment
area

2006:FulfillmentbyAmazonModel
IndependentsellerscoulduseAmazonswarehousestofillordersandlogistic
support
Businessprocess:Amazonbecameadistributorforindependentsellers
Whatoutsourcedin1995becamethecoreproposition

2000:SellAll,CarryMoreModel
Expandedthewarehousestomorethan10andstockingmorebecausecatchment
areagotexpandedbeyonddealers
Businessprocess:Excellentdeliveryperformanceandefficientlogistics

1995:SellAll,CarryFewModel
Offeringmorethanamillionbooksbutstockedonly2,000
Amazonforwardedcustomerorderstobookwholesalers/publisherswhoshipthe
productswithAmazonspackagingmaterialandlabels
Businessprocess:Effectivedealerrelationship

Themannerinwhichtheflowofworkoccursiscalledprocess.Eachdepartmenthasits
own allocation of work, based on its functions. It is important that these departments
workincoordinationwitheachothersothattheoverallobjectivesoftheorganization
areachieved.Forthispurpose,theworkprocessineachdepartmentshouldbedesigned
inawaytoavoidconflictamongthedepartments.

Topic

Course

Process:Deliveringcustomervaluesand
satisfaction:Unit2.3

Marketingmanagement

Source:Girotra,K.andNetessine,S.(2013),AmazonConstantlyAuditsItsBusinessModel,HBRBlog
Network,November15,2013