BPP Leading Through Digital Disruption Assignment Sample

Introduction

Digital disruption refers to the consequences that transform the behavior and fundamental expectations in a market, culture, process, or industry (Skog et al. 2018). This change occurs due to “digital capabilities”, assets or channels. This disruption completely changes the business, customer, and industry. In this study, the digital disruption problems of Amazon Prime have been analyzed.

Task 1: The Case for Change

Company and its market

Amazon Prime was a very small bookstore in 1994 (Jolly, 2021). It utilized the power of technology to boost its operations and was able to secure a high revenue in the year 2017 of about $38 billion. Furthermore, it offers free reading of books which attracts customers (Jolly, 2021). The company focused on the news of the customers and utilized their feedback to enhance its services. This company offers unlimited movies, TV shows from all around the world, albums, songs, “ad-free access to playlists, and many more. It operates in the UK, Canada, Italy, Germany, and many more countries.

Threats faced

The pirated services in Amazon prime have enhanced which can tend to decrease the number of customers of the company. The Prime video platform has become quite complicated for the user (Business LibreTexts, 2021). Furthermore, Amazon Prime users have experienced several issues in the live streaming of the videos. On the other hand, due to mismanagement of the supply chain the effect of the pandemic decreased the profit margin of the company (NC State News, 2021). Furthermore, “omni-channel shopping’ has created problems for Amazon officials. In addition, there are also problems with LoT, which needs to be fixed which can help the customers to purchase the products with more convenience. Contrary, the most prominent problem is piracy which can lead to a huge loss for the industry.

Objectives of digital transformation

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The main objective of the company is to satisfy the customers. The company wants to adopt the “Dash Replenishment Service” which can help the manufacturers to monitor the order and stock details (Technology and Operations Management, 2021). This technology helps to “auto-detect the amount of stocks present and reorder from the company whenever necessary. It wants to make the ordering process more convenient for the users. Furthermore, Amazon Prime has plans to develop its interface further in order to address the privacy issues faced by the company.

Task 2: Capture Insights

Insights for the chosen company

At the present moment, the streaming industry has become very popular and as a result, there are a lot of new entrants. With the entrance of HBO Showtime, Apple, and Disney have their open services (Amazon.com, 2021). Furthermore, due to the complexities of using, customers prefer Hulu and Netflix much more than Amazon Prime. In the year 2020, Amazon Prime was able to secure 9.91 billion dollars worldwide (Business LibreTexts, 2021). Furthermore, the taxes of the company have been approximately about 563 million dollars from all over the world. The company has various partners for online streaming problems like SHOWTIME, RLJ Entertainment, Smithsonian, and many more (Business LibreTexts, 2021). The partnership is very important as it helps to enhance the resources and produces better efficiency of services to the customers.

Approaches and techniques

Due to the advantage of technology, there are several tools and software, which can be used by the business organization to understand the competitors. These tools are Quick Search, WooRank, SEMrush, SpyFu, and many more. On the other hand, PESTLE, benchmarking, SWOT, Porter’s five forces model are excellent to develop deep insights of the competitors (Prathapan et al. 2018). These tools can help Amazon Prime to understand the business policies of the competitors like Netflix, Disney, and many others. It can help the business organization to develop services, improve its interface and adopt technology is not a better way to prove efficiency to the subscribers.

Digital technologies used by the company

SEMrush is an excellent tool that can be used by the company. SEMRush helps to analyze the trends in the market (Prathapan et al. 2018). Furthermore, it helps to improve the ranking of the website by helping the official to select excellent trendy keywords. On the other hand, tools like SpyFu, Quick Search, and many others help to rank the organization based on customer preference. It facilitates the business organization to track the conversation regarding the brand, the impact of the firm, the way it has been able to influence people, and many more (Ranta et al.  2021). This information can help Amazon prime to identify its weakness and strengths and address them in a people way. Furthermore, PESTEL helps to understand the environment of the business and the officials to adopt strategic decisions. SWOT helps to identify the weakness, opportunities which can help the industry to enhance its services in a better way (Prathapan et al. 2018).

Task 3: Making decisions

Approaches for making informed decisions

 

The profit of Amazon Prime in the last year was about 9.90 billion dollars and total revenue was 25.21 billion dollars. The company faces issues with piracy and interface complexity which leads the customers to switch to other companies.

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The approaches that can be chosen are:

1.Conscious decision making

This type of decision-making is performed in cases where the risks and their impacts are completely known. Furthermore, in cases where enough information is available this type of decision-making is implemented (Dotoli et al. 2020). A “cross-functional team” can be approached in order to implement this process.

2.Participatory decision making

In cases where big internal decisions need to be made this type of approach is implemented. This type of decision-making is quite risky and it needs to be ensured that skilled members participate in this process (Dotoli et al. 2020). Amazon Prime can be able to adopt excellent decisions regarding complexity and implement a user-friendly interface for enhancing efficiency.

Inclusive and data-driven decisions

Amazon Prime needs to be completely sure that all decisions taken by the company are based on analytics and data. The company needs to create a department that is completely data-driven so that managers are able to make correct decisions. On the other hand, performance reviews are very necessary in order to track the productivity of the decisions made (Finlay, 2021). The purposes of employee surveys and performance reviews can help the company to understand the effectiveness of its policies. Furthermore, encouraging the managers is very important to enhance their performances (Finlay, 2021).

Digital technologies for support

Google Clouds and Analytics are very important tools that can help Amazon prime to make informed decisions (Hwang and Chen, 2017). Both these applications increase the security of the system which can help the company to work with greater efficiencies. Furthermore, it offers better visibility of the policies taken by the competitors. Analyzing these policies and business strategies can benefit the business organization to utilize huge amounts of information for making excellent decisions. These technologies help to adopt digital disruption in a proper way. Digital disruption helps to enhance the bonding of the organization, helps to focus on more alternative options, enhances resource utilization, and many more (Hwang and Chen,  2017).

Task 4: Engaging talents

Approaches for fast decisions

Amazon uses the AWS Cloud technology in order to enhance its services (Amazon Web Services, Inc, 2021). This excellent technology offers a user-friendly interface for the customers. This technology is completely secure and encrypted which can help the organization to enhance its efficiency. Another application used by this company is DynamoDB (Amazon Web Services, Inc, 2021). This technology is very useful in order to monitor the performance of the company. An excellent technology helps to enhance the data management process.

Automated data management helps the managers of the company to utilize maximum data before making any decisions for the company. Furthermore, both these technologies can help provide reliable services to customers throughout the world. Additionally, these services help to provide a huge amount of data storage capabilities for the company (Amazon Web Services, Inc, 2021).

Actions are chosen by the company

Amazon prime enhances the training and development opportunities for the managers (Hwang and Chen, 2017). Treating and developing are excellent in order to enhance the capability of an individual. It facilitates the people to have updated knowledge regarding the latest technologies.

Suggestions for technology

1.Fox Matrix

This excellent technology can help the business organization to concert tools easily. Furthermore, it helps the firm to identify new opportunities in the market for expanding the business (Shrivastava, 2017). It can be very beneficial for Amazon prime as they need to analyze better technologies to enhance their productivity. This technology helps to gather views of a single customer, identify data models for sisters, allows segmentation in a proper way, build dashboards and identify proper resolution.

2.Digital open spaces

This is an excellent technology which “provides S3-compatible object storage” which allows us to serve and store a huge amount of data (Shrivastava, 2017). Hence, it provides enough space for the storage of unstructured information for usage. Furthermore, it helps the managers to save a lot of time, easy transfer of data, high security, and many more benefits.

Task 5: Creating a Digital-Ready Culture

Leadership role

Leadership is the key to the success of an organization. Leadership strategy helps to inspire all the employees in order to take correct decisions for the benefit of the organization. The CEO of Amazon prime is Andrew Jassy. The role of the CEO in the organization is:

  1. Establish effective communication with the public, stakeholders, government officials, shareholders of the company.
  2. The CEO utilizes the information and makes decisions regarding the short and long-term success of the company (Björk et al. 2018).
  3. The mission and vision of the organization are created by the CEO.
  4. The CEO directs the president, directors, vice presidents, and various other leaders within the organization.
  5. The CEO also helps to motivate and guide the leaders in order to accomplish the goals of the business.
  6. The CEO also ensures that the company maintains an excellent social responsibility level while conducting the business (Björk et al. 2018).

Attributes and behaviors of an informal leader

Informal leaders are very necessary for the business organization in order to develop excellent relations among the workers. The attributes and behaviors of an informal leader are stated below:-

  1. Informal leaders are excellent in establishing healthy relationships with the employees (Rettikh. and Lyutaeva, 2020). Maintaining a good relationship helps to build the loyalty and trust of the workers with each other. This further helps to increase work productivity and decrease work errors.
  2. Informal leaders have excellent knowledge about the company. They understand the culture of the firm completely and hence can produce their work output according to that (Seaman et al. 2018).
  3. These kinds of leaders do not have any ulterior motives. They are excellent in understanding their job roles; they perform the tasks that need to be performed and do not have any motive to receive rewards.
  4. They possess excellent knowledge about modern tools and technologies. This quality of the informal leaders facilitates the company to increase utilization of technology in order to enhance the efficiency, productivity, and prestige of the business organization (Rettikh and Lyutaeva, 2020).

Task 6: Steer Collaboration

Collaboration techniques

Amazon Prime can implement the following collaboration techniques:

  1. Communication is very important in order to establish a proper relationship with the team member (Foltz, 2018). Communication is very essential as it helps to build loyal relationships among the team. This facilitates the team members to understand each other’s weaknesses and strengths in order to increase efficiency.
  2. It helps to maintain a level of transparency among the team members. This transparency increases the trust among team members and helps them to collaborate with each other (Foltz, 2018).
  3. The advancement of technology has helped business organizations to utilize various technologies. Numerous tools help the team members to collaborate efficiently. This software further instructs the leader to identify the difficulties and recommend strategies that can help to collaborate in a better way
  4. The firm needs to reward the employees on the basis of their collaboration efforts (Foltz, 2018). This can encourage the employees to enhance their communication with the team members. This collaboration can enhance their ethics, moral, and behavior and hence improve the culture of the organization.

Collaboration tools

The collaboration software that can help Amazon Prime are:-

  1. Proofhub: This is excellent management software that helps to enhance collaboration among employees (Molotsi and Goosen, 2019). This tool facilitates organizing folders and files, monitoring the productivity of projects, planning, and organizing tasks, and much more. In addition, this software is an excellent solution for discussing the details of the undertaken project with the stakeholders and employees.
  2. Trello: This is collaboration software that can be implemented by Amazon Prime. Team members can work on the project in a common platform without any kind of disruption (Horváth, 2019). The software continuously updates the data and allows the members to have easy access to information. This can help the team members to have healthy communication with each other.

Task 7: Selecting leaders

Attributes and behaviors of leaders

  1. Training programs are very necessary in order to enhance the knowledge and skills of the employees.
  2. Communication is very important for leaders. Open communication can help the employees to enhance their productivity and mitigate risks (Glatthorn et al. 2018).
  3. The leaders need to implement innovation and change whenever necessary. Change helps to utilize resources in a better way. Furthermore, it can facilitate the productivity and efficiency of the organization.
  4. Collaboration “across teams” is very necessary. It facilitates to enhance the creativity and availability of more information for successful projects (Obadha and Deya, 2020)

According to Glatthorn et al. (2018), the leader needs to be very open-minded in order to change. Furthermore, it is essential for leaders to have a great amount of information regarding the market. This can help them to understand the demands of the customers and current trends. Cote (2017) stated that leadership training is very necessary so that they can have an updated knowledge regarding the latest technologies in the market. This can help them to take necessary measures for implementing change. On the other hand, as stated by Mutali (2017), leaders need to have an attitude of learning. Continuous learning facilitates people to enhance their knowledge. In addition, continuous learning also helps to increase the experience regarding their job, which in turn facilitates the organization to enhance the performance of the teams.  On the other hand, as stated by Obadha and Deya, (2020), leaders need to foster open communication within the team members so that they can increase collaboration.

Conclusion

This digital transformation can benefit the industry and its customers by enhancing the efficiency of services. Furthermore, this digital disruption facilitates the companies to implement innovation and eliminate outdated services. It helps the companies to provide excellent services and enhance the profitability and productivity of the company. It affects the operation of a business organization, forces it to adopt digital change, and hence is very beneficial for the sustainability of the firm.

References

Amazon Web Services, Inc. 2021. Amazon Prime Video Case Study – Amazon Web Services (AWS). [online] Available at: <https://aws.amazon.com/solutions/case-studies/amazon-prime-video/> [Accessed 26 June 2021].

Amazon.com. 2021. Amazon.com Help: Issues with Live Streams on Prime Video. [online] Available at: <https://www.amazon.com/gp/help/customer/display.html?nodeId=GLF6K9WFVYXMR7BS> [Accessed 26 June 2021].

Backlinko. 2021. Amazon Prime User and Revenue Statistics (2021). [online] Available at: <https://backlinko.com/amazon-prime-users> [Accessed 26 June 2021].

Björk, L.G., Browne-Ferrigno, T. and Kowalski, T.J., 2018. Superintendent Roles as CEO and Team Leader. Research in Educational Administration & Leadership, 3(2), pp.179-205.

Business LibreTexts. 2021. 14.10: Case study – Amazon Prime. [online] Available at: <https://biz.libretexts.org/Bookshelves/Marketing/Book%3A_eMarketing__The_Essential_Guide_to_Marketing_in_a_Digital_World_(Stokes)/14%3A__Customer_relationship_management(CRM)/14.10%3A_Case_study_-_Amazon_Prime> [Accessed 26 June 2021].

Cote, R., 2017. Vision of effective leadership. International Journal of Business Administration, 8(6), pp.1-10.

Dotoli, M., Epicoco, N. and Falagario, M., 2020. Multi-Criteria Decision Making techniques for the management of public procurement tenders: A case study. Applied Soft Computing, 88, p.106064.

Finlay, S., 2021. Artificial intelligence and machine learning for business: a no-nonsense guide to data driven technologies (No. 4th ed). Relativistic.

Foltz, P.W., 2018. Automating the assessment of team collaboration through communication analysis. Design recommendations for intelligent tutoring systems, 6, pp.197-185.

Glatthorn, A.A., Boschee, F., Whitehead, B.M. and Boschee, B.F., 2018. Curriculum leadership: Strategies for development and implementation. SAGE publications.

Horváth, I., 2019. MaxWhere 3D capabilities contributing to the enhanced efficiency of the Trello 2D management software. Acta Polytechnica Hungarica, 16(6), pp.55-71.

Hwang, K. and Chen, M., 2017. Big-data analytics for cloud, IoT and cognitive computing. John Wiley & Sons.

Jolly, D., 2021. What Amazon can teach us about digital transformation in manufacturing. [online] Nukon.com. Available at: <https://www.nukon.com/blog/what-amazon-can-teach-us-about-digital-transformation-in-manufacturing> [Accessed 26 June 2021].

Molotsi, A.R. and Goosen, L., 2019. E-tutors’ perspectives on the collaborative learning approach as a means to support students of computing matters of course. FOREWORDS: SACLA 2019 PROCEEDINGS, p.37.

Mutali, E., 2017. Strategic leadership and change management at Equity bank. International Academic Journal of Human Resource and Business Administration, 2(4), pp.49-67.

NC State News. 2021. Study Reveals Extent of Privacy Vulnerabilities With Amazon’s Alexa. [online] Available at: <https://news.ncsu.edu/2021/03/alexa-skill-vulnerabilities/> [Accessed 26 June 2021].

Obadha, T.W. and Deya, J., 2020. Effects of strategic leadership on change management in African Union Regional Standby Force. International Academic Journal of Human Resource and Business Administration, 3(9), pp.166-177.

Prathapan, M., Sajin Sahadevan, D. and Zakkariya, K.A., 2018. Effectiveness of digital marketing: Tourism websites comparative analytics based on AIDA model. International Journal of Innovative Research & Studies, 8(4), pp.262-273.

Ranta, V., Aarikka-Stenroos, L. and Väisänen, J.M., 2021. Digital technologies catalyzing business model innovation for circular economy—Multiple case study. Resources, Conservation and Recycling, 164, p.105155.

Rettikh, A.A. and Lyutaeva, P.S., 2020. Characteristics of formal and informal leadership in the student group. Urgent problems of modern society. Language, culture, and technology in the changing world: sbornik materialov XVII Mezhdunarodnoi nauchno-prakticheskoi konferentsii molodykh uchenykh, pp.302-308.

Seaman, C., LaPerla, J.T., Schwartz, E. and Bienstock, J.E., 2018. COMMON LEADERSHIP CHARACTERISTICS, PERSONALITY TRAITS, AND BEHAVIORS THAT GENERATIONS X, Y, AND Z LEADERS FIND EFFECTIVE FOR SHARED LEADERSHIP: A FORMAL, INFORMAL, AND RATIONAL APPROACH. Journal of International Management Studies, 18(3).

Shrivastava, S., 2017. Digital disruption is redefining the customer experience: the digital transformation approach of the communications service providers. Telecom Business Review, 10(1), p.41.

Skog, D.A., Wimelius, H. and Sandberg, J., 2018. Digital disruption. Business & Information Systems Engineering, 60(5), pp.431-437.

Technology and Operations Management. 2021. How Amazon – the most valuable retailer in the world is dealing with digital disruption – Technology and Operations Management. [online] Available at: <https://digital.hbs.edu/platform-rctom/submission/how-amazon-the-most-valuable-retailer-in-the-world-is-dealing-with-digital-disruption/> [Accessed 26 June 2021].

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