Innovation at Amazon: How Your Business Can Benefit
Amazon has been dominating the business and financial news lately. From record setting stock prices to plans for testing drone delivery capability, Amazon is on track to fundamentally change how we shop for just about any product traditionally available in retail stores. After nearly 20 years of continuous improvement, founder Jeff Bezos is poised for innovation that rivals the automobile, the internet and cell phones in terms of what Amazon will do to change our lives.
So what can we learn from this remarkable journey of creative thinking and extraordinary marketplace disruption? After all, most medium and small size businesses don’t have nearly the financial resources to do what Amazon is doing. Maybe you don’t need the same level of resources. Maybe all you need to do is observe and act!
Recently, I was invited to tour the Amazon fulfillment center in San Bernardino, CA by my good friend and past client, Craig Kausen- President of the Chuck Jones Art Galleries and Center for Creativity. Even though my business does not include fulfillment, I was eager to see how Amazon managed to deliver my packages in the time it might take me to cruise the local shopping mail ( not quite but it’s getting close!) What we saw was remarkable. In a massive 1.2 million square foot facility, we witnessed thousands of products being picked, packed and moved to delivery trucks at a rate hard to comprehend. As a business coach, I’m greatly impressed with organizations that have created working environments that produce efficiencies previously not thought possible. But, I’m not in the fulfillment business so what did I take away from this experience? 1. Serving the customer is their ultimate goal We all have and are trying to expand our customer base. How well do you know and understand what your best customer values most? In Amazon’s case, it’s the ability to shop in the comfort of your own home, get a quick delivery turnaround and feel the process was a great experience. This way, they remove the custom’s hesitation to buying things online that they might have felt more comfortable buying directly at a retail store. How good is the experience of doing business with your company? Do your customers feel so good about you that they no longer look at your competitors? Take some time to objectively look at the experience you provide. Could it be better? Is it the best you can provide? 2. Creating an atmosphere for high performance standards Everywhere you walk in Amazon’s facility, you see messages about their philosophy of what they believe are exceptional workplace practices. These are not just mottos, they believe and live them! From continuous employee development to new idea generation, they stand behind their expectations by making their employees full partners in their quest to do better. Does everyone in your organization know and understand what you believe and stand for? 3. Continuously looking for ways to do it better In my early years of working for much larger manufacturing companies, I was reminded of an old saying that goes like this; ‘if it ain’t broke, don’t fix it’. It referred to not looking for or working on things that are not broken or in need of repair. Amazon takes a different approach of continuously looking for ways to improve their processes, essentially breaking older less effective ways of operating. It’s a different mindset but one that says, there’s always a better way to do what we do. Staying at the top of your game and ahead of your competition means looking for ways to improve what you do, even at the smallest level. What areas of your business are not up to today’s standards or are not working as effectively as they should? 4. Investing in technology Not all businesses need the same level of technical support. Many businesses that I have worked with, however, have abdicated any desire for even the basic level of computer support that would add huge levels of efficiency and cost reduction to their operations. If you are behind the technical curve, you’re not only putting your business at a competitive disadvantage but you alienate employee talent and customers who may want to be connected with businesses who employ current day practices. Amazon has taken technical capabilities to an extreme level in order to position their employees for highly efficient performance. This not only means allot to the employees but insures you get your favorite item shipped for $3.99! What area of your business is being underserved by technology? 5. Consistency of operating processes A critical advantage employed by Amazon is the exactness of the processes they use to storage, select, pack, ship and delivery your purchases. In every area of the fulfillment center, they have figured out how to potion inventory, gather products and send them through the conveyor so that the operation runs smoothly. Fine tuning the way they ship product as well as having employees utilize job standards that promote high volume, lost cost results is what makes Amazon untouchable in this area. Smaller businesses from restaurants and copy centers to auto repair and CPA firms can greatly improve the quality of their products and services along with the satisfaction of their customers if their operating processes are well thought out. How well do you do at providing the product or service your business offers? Are your processes written down? Do your employees utilize them to the fullest? It’s very inspirational to see a large company operating at the top of their game. The workplace atmosphere is energized, the employees are committed and the demand for what they do keeps growing. You can have the same effect at your business level if you just take notes from Amazon and incorporate innovation, standards, operating processes, technical support and an eye on what your customer wants and values. As much as I’d like to think it’s a choice, it really isn’t. If you don’t do it, someone else will. Think Kodak! |
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About the Author:
Steve Smith is an experienced business & executive coach and President of GrowthSource Coaching based in Orange County, CA. Steve works individually with business professionals who want to achieve top tier effectiveness in the organizations they run. Steve graduated from Frostburg State University with a degree in business management. In his spare time, Steve writes articles from a variety of business publications, travels with his wife on his motorcycle and cares for his adopted greyhound.
www.growthsourcecoaching.com
Steve Smith is an experienced business & executive coach and President of GrowthSource Coaching based in Orange County, CA. Steve works individually with business professionals who want to achieve top tier effectiveness in the organizations they run. Steve graduated from Frostburg State University with a degree in business management. In his spare time, Steve writes articles from a variety of business publications, travels with his wife on his motorcycle and cares for his adopted greyhound.
www.growthsourcecoaching.com
