ICT 275 INNOVATION AND TECHNOLOGY MANAGEMENT T220
Assessment type: Case study Group Written Report, 2500 words (Summative)
Purpose: This assessment will allow students to be able to demonstrate formulating an idea and turning it into a business plan using Value Proposition Canvas. This assessment contributes to learning outcomes b, c and d.
Assessment topic: Ideation and Value Proposition Design
Task Details: Brainstorm with your team and identify a gap/problem/business opportunity and provide an IT solution for the identified problem. You demonstrate the value proposition of the proposed solution/product/service to the actual needs of the customer.
You explain in your report:
The Opportunity Discovery
Problem Statement Defining a Solution Value proposition canvas
The outcome of your ideation and value proposition will be reflected in a value proposition canvas (along with a written report of 2500 words). The value proposition canvas consists of two parts. One part is the customer profile, in which you describe your customer. The other part is the value map in which you describe how you create value for your customer. If those two parts match with each other then you have a fit in your value proposition. You start with creating your customer profile, after which you will complete your value map.
You need to identify:
The eCommerce retail industry has been surrounded by huge competitive environmental the companies are introducing different strategies applications to survive in the market. Many of the business entities are introducing new products or developing the existing products. The innovation and creativity have become the sole source of creating competitive advantage and edge for the business entities operating within the market. The assignment is focused on introducing a new product or service by Amazon Inc.
The technological advances increase experiences, satisfaction and interests of the customers in the market. Amazon has ample scopes to introduce better IT services and products, which can increase the quality of services for the customer. It has been assessed that Amazon has been introduced different forms of IT advances services which have been increased customer satisfaction levels. The development of its operational and supply chain system can increase processing of the delivery system of the entity (Zambrano et al. 2019). Due to increasing delayed time for delivery, the customers have been presenting negative reviews. In such regards, the enhancement of operational and supply chain system might help the entity to cover its ongoing issues. As per most of the products are small and they take similar investments from the firm for delivery, the company might cut down costs of operations for maintaining the cost of the products. The Amazon might regulate its pricing strategy by cutting down costs of the supply chain and delivery system for the small and light-weighted products.
Ecommerce entities like Amazon have been at risks of lack of touch of the desired products by the customers. Therefore, the increase of the number of physical stores might be a reasonable option and scope for the entity to increase the customer shopping habits. Hahn et al. (2018) has stated that the company can introduce technological features and organisational policies for reducing the sales of counterfeit products under the brand. The company has gained criticism for delivery of imitated products, which has been reduced the performance of the entity in the market. Amazon has collaborated or acquisition of different IT-based start-ups and technology-based companies for introducing innovative technological upgrades for increasing experiences of the customers (Singireddy and Daim 2018). A self-driving start-up company Zoox Inc has been acquired by Amazon to leverage autonomous technologies. These technologies might help the company to increase the engagement of ride-hailing services, which is high in demand within the customers in the market. The introduction of Prime Air has been one of the innovative products, which has been helped to reduce the issues of delivery system issues of Amazon. However, the company can upgrade the technological inputs of the drones, which might provide better assistance and services to the customers in increase quality, reliable and fast delivery of reordered products.
By the time, the Amazon has been introduced different IT-based innovative services for the customers such as AI Alexa, Prime Air Prime Now, Dash Button, One-click purchase, cloud computing services. From the analysis, it has been extracted that about 75% and above-ordered products are small and light in weight Prime Air has been one of the solutions which have been introduced by the entity to reduce the increasing issues of delivery (Amazon 2020). However, there were some issues found in the drone systems, which might create further issues for the company.
In the coming year of 2021, Amazon will be presenting an additional feature in its Prime Air to increase its capability to provide much reliable and qualitative service to the customers. According to the problem found in the drone system and increasing issues of delivery, the customised AI system to be installed with an upgraded GPS signalling for both the mobile application of Amazon and drones for the entity. The introduction of customised artificial intelligence with advanced signalling will help the drones to access and identify the locations of the customers 5 times faster than usual. With the updated AI software and application in the mobile devices, the customs themselves might be able to assist the drones to find the address for a limited time being. The advanced artificial intelligence system will help the drones to deliver the products and return to the base for completing another order frequently.
4. Problem statement
The Amazon usually takes 7-15 days for delivery of the products and services ordered by the customers. However, with the changing time, the customers have been increased concerns about the immediate delivery of the products and services. It has been stated that the customers usually make comments over delayed deliveries of the products and services for the customers. The Amazon has been enhancing its operational and supply chain activities and developed its logistics systems. However, the delivery timing has somehow remained one of the consistent issues for the entity. Amazon has measured that 75% of the ordered items of the customers are small in size and light in weight (Enderle, 2019. On the same time, the customers are seeking for a shop of similar products for 30 minutes in the market and drive back to their base. The increasing rate of physical stores opening in every corner of the cities, the Amazon has been at the risk of shifting of the customs form online shopping habits to try out the products availed in the physical stores. On the other hand, Amazon has also observed that the time talking for delivery remains almost the same for small and large items ordered by the customers in the market. Thus, there is a similar cost engagement which has been spent by the company throughout the year.
The customers have made a dissatisfactory expression over the procedure of working and delivery of the entity. It has been stated that after the order is placed by the customers it usually takes, weeks or months to make a proper delivery of the item. As per the e-commerce research firm, it has been explained that the working procedure of the third party merchants working as a partner with Amazon has received a negative review from the customers (Shavarani et al. 2018). Typically, the procedure includes the third party merchants deliver the ordered products to the Amazon warehouse, and the company takes over the whole operations of delivery of the product to the customers. Amazon has made delays in the delivery of essential and non essentials products, which has led the third party sources to take the charge of the shipment procedure (Shavarani et al. 2018). There has been an increase in complaints about products that never arrived, damaged, products. Over 11% of the total reviews made by the customers have been focused on the delay in delivery for more than 30 days. Therefore, it is a necessary aspect which needs to be taken care of by the entity to increase customer satisfaction and sustain the loyalty for the brand in the marketplace.
Amazon has been introducing Prime Air which included updated drone systems to meet the issues of the delivery systems. However, the drone systems have also created issues of finding the correct locations and delivering the product on the time. According to Burzichelli (2016), the issue of long time delivery of the Amazon has still been intact as the introduction of drones had issues of GPS location system, which takes longer time to locate the addresses and increase the delivery time beyond committed by Amazon. In the initial phase, it has been observed that most of the produced drones come up with the inbuilt GPS systems, which helps to track down the locations. The signalling system and location accessibility of the drones have been malfunctions most of the times, which has led to long time search analysis and access of the actual address of the delivery point to present delivery of the products to the customers on the given time (Price 2019). There is a lack of options, which could be assisting the drones by the customers to lead a right direction for the product delivery to their homes or destined addresses. Then long time delivery issues poor packaging systems which have been tried to be addressed by the drones, as some challenges ahead to operate and function properly for the customers. The Amazon might be facing issues with the commitment of the fastest delivery of the products than expected for the customers to hold them back after massive complaints of increasing delivery times of the products ordered.
5. Defining a Solution
The drone system has been one of the advanced technologies which have been used for delivery of the products and services. However, the drones include a variant of issues and problems, which might be a matter of concerns for the entity. The drones signalling systems which are inbuilt in nature malfunctions to understand identify and access the exact locations of the customers, which takes a long delivery time for the customers (Gartenberg and Vincent 2019). Thus, the issues of delayed delivery have been still consistent for the entity. As a solution, the new advanced technology development might help the drones to perform 5 to 10 times better in the delivery of the products and services. It has been stated that new technology has been proposed in the market which will be providing an advanced artificial intelligence system with customised codes. The AI signalling codes will be connected to the updated version of the Amazon application. The customers might be able to update their locations from time to time to provide proper direction of the location. This will increase the accessibility of the locations for the drones to increase the delivery systems much faster than usual (Amazon. 2020a). The drone will be introduced with advanced AI and signalling systems, which will increase the frequency and working of the GPS of the drones.
Figure 1: Customer value proposition canvas
(Source: created by author)\
6. Value proposition Canvas
6.1. Customer task: Based on the customer tasks, a customer firstly looks for the product and its delivery time while long in Amazon, based on which they make purchase decisions for the product. The time taking of the product delivery increase interest and intention of purchase of the product. If a product takes a shorter time to deliver, the customer intention to go for the products, the customer seeks for other e-commerce sites or makes a visit to the physical stores within the market.
6.2. Customer gains: The customers of Amazon have been one of the primary issues of delayed delivery, which has not been addressed even after the introduction of drones. Thus, with the introduction of the new features and updates, timely delivery will be received by the customers (Amazon 2020). The customers will be highly satisfied with the on-time delivery of their ordered products as it is committed by Amazon. With the customised services, the customers might be able to assist the directions to the drones properly to increase efficiency and reliable of the delivery system. Advanced signalling system, will be able to increase the location access system of drones, which will be increasing time frequency of the delivery. The customers will be satisfied with the possibility of delivery of their ordered product before the time committed by the Amazon through their updated and advanced drones.
6.3. Customer Pains: The increased delivery time of the product increase stress and anxiety among the customers. The customers become doubt full of the packing, quality reliability and other aspects of the product. The delay in the delivery increase perception of misplaced, incorrect product delivery, damaged products, or fake product delivery from the company to the customers (Greene 2020). Additionally, the long delivery time force customers to go out of the market and seek for similar products. The possibility of not finding exacts form or type of products from the physical markets might increase disappointments for the customers. It has been stated that the customers will be annoyed with the current drone systems, which usually creating issues of lack of location accessibility, delay in the identification of the locations and delay in the delivery of the ordered products.
6.4. Product and services: The Amazon has been introducing a new feature of customised artificial intelligence with advanced signalling systems to increase the performance of the drones to address the delivery issues of the entity. The updated version of Amazon mobile application will avail the artificial intelligence customised system which will help the customers to provide the exact locations of their home to increase reliability and efficiency of drones to deliver the products. The advanced AI system and signal coding of the drones will increase the frequency of locating and accessing the area where the product is required to be delivered. The new feature of Amazon and updated version of the drone as well a mobile application will be increasing the delivery system as well as timing 5-10 times faster.
6.5. Pain relievers: The customers will be receiving their ordered products within the specified and lesser time; the advanced AI system will increase level of frequency of delivery of the products to increase experience and satisfaction of the customers. The customer will not have to opt for other sources to purchase the products as the delivery time will be reduced to less than half as taken by the drones earlier.
6.6. Gain creators: The advanced features and systems of the Amazon prime air drones will be taking care of time taking location, GPS accessibility, and customised function of AI by the customers to direct the drones for the delivery of the products. The new updated version of the mobile application will be providing additional experience to customers to increase the delivery system and receiving the products less then time committed the Amazon for the ordered products.
6.7. The fit: The customers in the market currently desired for increased time offends frequency of delivery, as the long time taking of the product delivery creates anxieties and stress within the customers. The drones introduced by Amazon have introduced issues of malfunctioned GPS, which has also created problem of time delay in delivery of ordered products. The new features of the drone and mobile application of Amazon will be increasing the frequency of product delivery for the customers half of the time taken by the drones usually. Thus, the proposed features and updated advancement of technologies will be meeting the demands and requirements of the customers.
The assignment includes new product or service development of Amazon for the decline the current issue of delays in the delivery of the products even after the introduction of Prime air drones for the entity. The new feature of advanced AI and signalling will be introduced in the market with an updated version of the mobile application. This will provide proper assistance for the drones over the address for faster delivery of the products. The assignment follows the building of the customer value proposition to understand the viability and reliability of the new features and service proposed under Amazon as per the needs requirements and perceptions of the customer.