Amazon go offline while online

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

4. NATURE OF CHANGE
Watch what will happen?
No line , No checkout, No seriously

5.  Technology changes
Amazon Go App (Key, Discovery, Receipts, About)

6.  Technology changes
Computer Vision

7.  Technology changes
Sensor Fusion (Weight sensing, LIDAR sensing)

8.  Technology changes
Deep Learning Technology and AI
Keep track about customer
Identify shopping behavior
Suggest discount for customers

9.  Consumer shopping behavior change

10. IMPACT OF CHANGE
1. Mission statement change
In 1995,
“to be Earth’s 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”

11. 2. Business Model changed

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
 Don’t let up (gen Z market place , customer needs)
 Make change stick

21. Conclusion

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), 79–92. 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-
66880

23. Thank You