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Amazon Innovation strategy: How idea capture led to the development of Amazon prime?


Founded in 1994, Amazon is one of the largest technology companies in the world. The company’s businesses include e-commerce, cloud computing, digital streaming, and artificial intelligence.

Idea capture and Implementation:

In 2004, a team of amazon employees led by Greg Greeley, then VP of the company, floated the idea of ‘Prime’ – a subscription-based model that offered two-day product delivery to exclusive members. Subsequently, as a part of Amazon’s intrapreneurship program, an Engineer named Charlie Ward submitted his idea to offer exclusive shipping as part of an annual membership, to the Amazon digital employee suggestion box.

The company’s CEO encouraged the initiatives and asked a group of employees to come to his boathouse to work on the idea. Amazon Prime was finally launched in 2005 as an annual membership offering members paying USD 79 a year, free two-day delivery on more than 1 million of Amazon’s different products.


Prime subscriptions now generate over $19 billion per year, and one in every three Americans has a Prime membership.

It is impressive how promoting an innovation culture proved so much beneficial for Amazon. An employee’s idea not only proved to be in the company’s favour but also enhanced customer experience. It is imperative that CXOs cultivate a culture of innovation in their organizations. An idea management tool can help you in the pursuit, by encouraging ideas and idea culture in your organization. Want to get your hands on a good idea management tool? This list of idea management software can help you choose one.

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