This document summarizes Amazon's development of their cashier-less Amazon Go stores. It discusses how Amazon Go uses computer vision, sensor fusion, and deep learning technologies to allow customers to shop and exit the store without waiting in line. This represented a major change in Amazon's business model and consumer shopping behavior. The document also outlines Amazon's leadership principles and how their leaders effectively communicated the vision and empowered teams to generate short-term wins from this new store concept.
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1. Amazon GO
RM Manahari Pemarathna
Master in Information System Management, University of Colombo
2. OUTLINE
Background of the organization
Nature of the change
Impact of the change
Role of leader in change
Effective practiced use by leader
Conclusion
References
3. BACKGROUND OF ORGANIZATION
Nature of business : Biggest internet-based company
Start year : 1994
CEO : Jeff Bezos
Head office : Bellevue, Washington
Products/services : Amazon.com, Amazon web services, prime
videos, Amazon music, Fire tablets, Fire TV, Echo and Alexa, and
Kindle E-reader and book
10. IMPACT OF CHANGE
1. Mission statement change
In 1995,
to be Earths most customer centric company, where customers can find and
discover anything they might want to buy online, and endeavors to offer its
customers the lowest possible price.
In 2018,
Serve consumers through online and physical stores and focus on selection, price
and convenience
13. 3. Change in Technology
Past Now
Dot.com technology Computer vision
Cloud Computing Sensor fusion
Amazon Dash board Deep learning
Linux technology Artificial Intelligence
Data Warehouse Amazon Go app
14. 4. Change in Marketing Activities
Past Now
Third party customer referral Geo fencing technology
Social media advertising Location based marketing
Online advertising SMS alert
Television advertising Collect customer preferences through
deep learning
Sponsored search
15. 5. Change the purchasing behavior of Land property
Amazon Go has 26 stores across cities such as San Francisco, Chicago and New
York.
The first store was only 1800 square feet (170 m2 ).
The third Amazon Go store is the largest at 2100 square feet.
6. Consumer purchasing behavior
16. ROLE OF LEADER IN CHANGE
Communicate clearly economic value and provide different pricing models
Account for unique technological needs
Identify and deal with barriers in organization processes, structures, cultures, and
politics
Roles of champion and change agent must be filled
Work with executives and other power holders to increase their understanding of
process/technology innovation
17. Amazon Leadership Principles
Customer obsession
Ownership
Invent and Simplify
Are Right, a lot
Learn and Be Curious
Hire and Develop the best
Insist on Highest standard
Think Big
18. Amazon Leadership Principles
Bias of Action
Frugality
Earn Trust
Dive Deep
Have backbone; disagree and commit
Deliver Result
19. EFFECTIVE PRACTICES USED / TO BE
USED FOR THE CHANGE
Acting with Urgency (Invent and simplify , Deliver result)
Developing the guiding coalition ( Amazon Go team)
Developing a change vision (mission is changed)
Communicating the vision Buy-in (Annual Report 2019)
Empowering broad based action
Tracking more than 20 people at a times or items moved from their specific shelf space
The store needed a robust hardware and software infrastructure to support everything
Apply the computer vision and machine learning technology to solve the problems of
who took what.
Training consumers to rethink how they shop in general
20. EFFECTIVE PRACTICES USED / TO BE
USED FOR THE CHANGE
Generating Short-term Wins
Sales revenue : $ 28 million in 2018
$ 639 million revenues at the end of the 2020
It is reported stores generate less than $1300 sales per square foot
Dont let up (gen Z market place , customer needs)
Make change stick
22. References
Amazon. (2017). Amazon Go. https://www.amazon.com/b?node=16008589011
Amazon. (2019). Amazon Annual Report 2018.
Amazon. (2020). Amzon. https://www.aboutamazon.com/
Cuofano, G. (2019). Amazon Mission Statement and Vision Statement In A Nutshell.
FourWeekMBA. https://fourweekmba.com/amazon-vision-statement-mission-statement/
Howell, J. P., Wanasika, I., Howell, J. P., & Wanasika, I. (2019). Jeff Bezos. In Snapshots of
Great Leadership. https://doi.org/10.4324/9781315110066-3
Polacco, A. (2018). The Amazon Go Concept : Implications , Applications , and Sustainability.
Journal of Business and Management, 24(1), 7992. https://doi.org/10.6347/JBM.201803
Sharma, A. (2018). How Amazon Go Works: The Technology Behind Automated Grocery Store
Explained. Geeks Mate. https://www.geeksmate.io/technology-and-working-of-amazon-go-
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