View our brief powerpoint summary of our project below:

https://screencast-o-matic.com/watch/cYnXeDwO2g

Section I:

As time goes on, companies are constantly looking for an edge to top their competitors. This advantage is often utilized in the technology industry. The corporations that progress the fastest and are the most innovative are the entities that will be the most successful. Amazon is prominent in the technology industry and is considered one of the “Big Four” tech companies; along with Google, Facebook, and Apple. Founded by Jeff Bezos in 1995, Amazon has brilliantly used its resources to become the massive powerhouse it is today, leading the globe in many industries. They have recently shown their innovative abilities with the launching of “Prime Air”. This service, which is available to Prime members in select areas, enables customers to receive packages within 30 minutes of ordering. This development is a possible huge success for Amazon and gives them an advantage over their competitors such as Walmart, eBay and Microsoft. It is important for companies to utilize technology to help solve problems that may exist. Amazon’s drones will help reduce pollution, traffic, delivery time and shipping costs. 

Often with new products, new problems arise. The same holds true for the new Amazon Drones that have been put in circulation. A business problem is a challenge that a company faces, whether it is short or long term. It can be anything that proposes a threat to the longevity of a company or restricts the widths to which a company can go. There is a potential threat to the business Amazon does with the development and usage of Amazon drones. There are concerns with how the drones will function and how well they will operate. These drones weigh approximately 55 pounds and can carry packages up to 5 pounds. Many people are concerned about these drones malfunctioning and collapsing out of the sky. A 60 lb (Webb). object falling out of the sky is dangerous and not something that appeals to Amazon or its customers. With all technology, there are worries about the engineering of the product, likes these drones and how they developed to protect against potential issues. A potential great innovation can turn into a stock collapsing project with the occurrence of one mishap. 

Amazon has potentially addressed this issue through its engineering of the drone. In a statement released by Amazon they clarified, “Instead of a drone striking the ground-or a person- a drone would jettison its components after detecting a problem, reducing the weight and force of any impact”. I do not believe this is an effective way to prevent any injury at all. Instead it is Amazon attempting to reduce consumer fear, by reassuring that they are taking the necessary measures to prevent any such incidents. I believe this is a relatively large problem for the business of Amazon because all it takes is one injury or one death for consumers to lose their trust in a company that was once so valuable to them. As seen with the new Boeing 737 airplanes, technological issues can cause a company to lose lots trust and money from consumers. Within five months of debuting a new and “improved” airplane, there were two crashes, leading to the deaths of over 345 people. This led to the grounding of all Boeing 737’s around the globe, and a massive reputation hit for the Boeing company. Amazon does not want to have a catastrophic incident happen because they were trying t gain an advantage over the competitors. 

Another issue with Amazon’s drones is how it react in different weather conditions and its potential reaction to unexpected land objects, such as trees. Each drone can be worth between 20,000 and 60,000 dollars, a price that is not cheap. It is critical that Amazon has an effective way of designing these drones so that there are no crashes into trees and/or buildings. Amazon plans on combatting this potential issue by implementing a flight navigation system. This software will rely on built in sensors and wireless communication that will inform drones about the paths of previous drones, so that flight routes can be adjusted properly. These drones do not have a human operator, so it is imperative that the programming of these drones is properly executed (Chauhan). There have been regulations that have been put in place to reassure the safety and completion of these shipments. There must be certification completed for businesses to utilize these drones in airspace. The FAA or the Federal Aviation Administration has recently given permission for Amazon to begin testing their drones this past June. Although the grant is only valid for a year, Amazon will be able to reapply for renewal once the year is over. 

The problems listed effect both Amazon and its customers. If drones are falling out of the sky, customers will resort to other shipment methods such as UPS or FedEx. Amazon will hurt its currently great reputation and will lose lots of business. A good public image is important to companies because it gives them a competitive advantage over their rivals. If the public does not respond well to Prime Air, people will start to question Amazon and its management. When questions begin to arise about a company and its processes a lack of trust begins to develop. As well, its stock price could potentially be damaged with bad news and bad reports about its developments (Gearbrain). People will invest their money in companies that are technologically sound and efficient. Amazon is taking the chance of releasing potentially ineffective drones in order to be first in the industry. This is a dangerous method that can be a great success or a massive failure. There has been lots of time and money spent into developing these drones and connecting it to their business which will be hurtful to Amazon if their drones are not successful. Lastly, problems that affect the stock price are because of the stockholder equity that is being damaged. Its shareholders express their feelings by buying or selling stock, previously made public by the company. If drones are ineffective and present more problems than had believed, it could create unrest with the public and force them to sell their stock. 

Amazon’s drones can potentially be one of the greatest advancements that the shipping industry has seen. It is an efficient form of transporting goods, since it reduces traffic, lowers air pollution and minimizes shipping costs. Many people will be able to utilize “Prime Air” since approximately 70% of people live within the travel range of an Amazon drone. Furthermore, this is an indirect method of CSR because Amazon is reducing its carbon footprint by making technologically sound advancements, such as these drones. Having less trucks on the road will reduce its carbon dioxide in the air. These drones are not only effective in the United States but in places such as Ghana and Rwanda where it is difficult to deliver vaccines and medicines to people due to inlets that make ground travel difficult and costly. They are being used for the benefit of not only amazon, since it only costs them about a dollar per shipment via drone (compared to potentially thirty dollars via truck) but its customers as well. People had been used to 

seven-day shipping and now today are accustomed to Amazons two-day shipping method. It is exciting to imagine ordering a product and expecting it at your door in less than an hour. Jeff Bezos is leading this new wave of delivery drones and if he properly addresses these potential problems, Prime Air will be a huge success that puts Amazon far ahead of its competitors.

Section II:

When Amazon announced their newest delivery service, people often became concerned. The common questions that people are asking are as follows: Who will be operating these drones, how will our packages be delivered safely, and what qualifies for drone delivery? People often struggle with the idea of drone delivery being the quickest and more efficient means of delivery. Amazon has acknowledged that packages 5lbs and under will be able to qualify for this type of delivery. They also announced that these orders will be delivered in 30 minutes or less. This will in turn, eliminate packages arriving late or being delayed due to unforeseen events like accidents, road blocks, and weather. 

            The first delivery solution is requiring these drones to have a livestream feature available to customers. With this feature, customers will be allowed to view the current flight path of these drones as well as what the drone is viewing. Philly By Air, a company that provides professional drone footage, stated that, “There were around 1.1 million drones in the United States as of December 31, 2017. During 2019, that number will reach 2 million.” Due to the popularity, customers purchase drones for their recording capabilities along with the ability to take pictures. So, what if customers could do something similar to this without manually piloting these drones? With this addition, customers will feel like they are being more hands on with their package as they are able to see what exactly the drone sees. Along with this benefit, this will give customers a thrilling experience, as they will be able to see the aerial view and flight path when delivering their purchase. Below is a graph showing the ownership of drones in the United States.

 

            The next solution to allow a manual flight pattern adjustment. This would actually reverse the invention of these drones flying themselves. These days, people are able to receive weather updates much quicker. People are able to turn the TV on as well as the radio to see current weather updates and storm warnings. If they are unable to get to a TV or radio, people are able to view these notifications on their smartphone or even receive these notifications via text or call.  If Amazon is allowed to add this function, this will limit the possibilities of drones being damaged in specific weather conditions. With this feature, there is also another problem that arises. Because deliveries might be delayed due to weather conditions, customers must be notified quickly on the status of their delivery. These are in fact commercial drones, so in order for the drones to include a manual flight option, employees must be certified to operate these drones if needed. The FAA requires three steps when earning your commercial pilot certification. You need to be at least 16 years old, pass an aeronautical knowledge test, and participate in a TSA screening. With three requirements, customers are able to feel comfortable about their package being delivered professionally as well as notified if their product is unable to be delivered at that set time due to weather complications. 

            The last solution would help both Amazon and their customers. With drones, there is a worry of damage to not only the customers purchase but also the drones themselves. These Amazon drones are not large but also not small. Crashing becomes a huge concern for Amazon. If Amazon were to implement a requirement for customers who would like to participate in this delivery service, they would need information on where they would like the package to be delivered. For example, these packages would need to be delivered to a safe area where it is possible for the drone to land as well as take off and return to these shipping facilities. Customers must provide the parameters and lengths of the area where they would like this package to believe so that both parties can avoid damages. 

            When picking the best solution, it is difficult to narrow it down to just one. It would be ideal if all three could be implemented but the best solution is to be able to have the camera installed into these drones. Both Amazon and its customers are able to visually track their products. If something were to go wrong, customers will be able to playback the footage as well as Amazon. This creates a hands-on feature for these customers and in turn might be more enticing when ordering packages and selecting their delivery method. DJI Enterprise, a drone retailer, sells to customers who want to fly for fun as well as capture amazing content for social media or for their own self-interest. DJI currently provides drones to construction companies for site mapping, real estate marketing, and building inspection. Each flight is recorded via camera and the customers are able to playback the footage as well as watch remotely from their phone or computer. They also provide these drones to farmers for spraying and many other purposes. With this ability, you are able to view a live image, and this could help Amazon if there is any damage to the product or drone. These drones should be required to have cameras along with video footage to both parties. In our introduction to our project, we mentioned that other companies are in the process of developing alternative delivery methods similar to Amazon’s Prime Air. As of now, they are nowhere close to Amazon. Amazon has the funds needed to perfect this delivery method. Because of this, there is no rush when producing these delivery methods. In order to succeed, they need to test as well as implement the camera function to ensure the safety from damage to their drones as well as their customer’s orders. DJI is one of the largest sellers of drones both commercially and directly to the consumer. In other words, it is B2B, business to business, and B2C, business to consumer.  Each drone has the capability to record videos as well as take pictures. This has proven to be successful because in 2016, DJI sold around 825,000 drones and they are continually producing and selling these drones. Customers are pleased with these functions. If Amazon were to produce their drones with cameras and allow customers to view live footage, many problems would be eliminated, and customers will be more pleased with their order and how it was handled. 

Section III:

In December of 2013, Amazon president and CEO announced the idea of Amazon using drones for delivery of various products for prime members. Immediately, the idea was greatly criticized. The idea was unheard of and drones were still a new product to the market. However, investors and consumers soon saw the possibilities that would be reached if the idea was implemented. The speed of receiving online products would be greatly increased. Allowing people to receive packages within a few minutes of placing the order would break the ground in a whole new world of delivery. 

Cost and Benefit: 

Price: Drones range in price from a couple hundred dollars to millions of dollars for the military issued models. On average, the drones that would have to be used by amazon would need to be powerful (to hold a large amount of weight) and consist of a large battery to travel far distances. Overall, the price of the drones that they would be using would be around $4,000. Using this number, if the company issued 150 drones, the initial cost to get the product going would be around 600,000. While this may, at first seem low cost, they would have to be serviced and built with a specific system to hold the package and drop off when needed. Overall, the prices are high, but when compared to the lower need of gas guzzling vehicles to deliver products, the investment becomes a clear decision. Also, when the process of packaging, driving, and delivering is considered, the prices for box car delivery vs. drones is slightly more.

Ethical Considerations: 

            One of the main ethical issues that leads to the revolt against drone delivery is the loss of many man powered jobs. Already, the cargo driver industry is in scrambles with amazon being one of the main companies still holding many jobs. If drones were to be implemented, not all, but many of the tasks that would traditionally require a specific person, will disappear. While the loss of jobs is an extremely large worry amongst many amazon workers, the invasion of privacy that occurs with drones is inevitable. Even now, there are various private and governments using drones in the sky. Along technical difficulties that occur in the air over homes, people do not approve of cameras above them and it is often called an invasion of privacy. 

Cameras and video cameras are often attached to these drones and leading many civilians into thinking that they are being spied on. Possibly, even taking pictures without the consent of the subjects. There have even been a couple cases where people find out that they are being spied on by others who have no right to do so. On top of this, there is the possibility that the drone fails or drops a package when not programmed to do so. As a result, the drones may not only place people’s privacy in danger, but they also may physically lead to airborne debris landing on unauthorized locations and losing people’s orders. 

Section IV:

This prototype shows how the drone will navigate through the air safely while dodging and avoiding other objects that may jeopardize the flight. The drone will leave the amazon facility, then a described will climb the air to a safe height and continue its path towards the customers home. If an object was too close to the drone it will maneuver around the object safely. Once the drone is at a safe height and area to descent towards the customers home it will deliver the package.  

This prototype shows how the amazon drone will carry the package that the customer ordered. It also shows the area in which the drone will land safely. The drone clasps the package to the bottom of itself which safely secures it.  

This link shows the flight path of an actual amazon drone and how it maneuvers through the air and safely lands/delivers the package.  

This link also shows how a man orders an item from amazon and the drone gets the order to him in less than 30 seconds. The drone lands in his yard and he walks over to collect his package.  

Works Cited:

“Amazon Want to Build Self-Destructing Drones.” Gearbrain, Gearbrain, 29 Nov. 2017,      www.gearbrain.com/amazon-delivery-drones-self-destruct-2513493087.html. 

Chauhan, Harsh. “Amazon Needs Drones to Fix This $6 Billion Problem.” The Motley Fool, The Motley Fool, 8 June 2018, www.fool.com/investing/2018/06/08/amazon-needs-drones-to-fix-this-6-billion-problem.aspx. 

“The Economics of Drone Delivery .” Flexport, http://www.flexport.com/blog/drone-delivery-economics/. 

Lee, Dave. “Amazon to Deliver by Drone ‘within Months’.” BBC News, BBC, 5 June 2019, www.bbc.com/news/technology-48536319. 

Webb, Kevin. “Amazon’s Drone Delivery Service Is One Step Closer to Taking Flight.” 

Business Insider, Business Insider, 5 June 2019, www.businessinsider.com/amazon-prime-air-drones-approved-by-faa-2019-6

Glaser, April. “DJI Is Running Away with the Drone Market.” Vox, Vox, 14 Apr. 2017,

www.vox.com/2017/4/14/14690576/drone-market-share-growth-charts-dji-forecast.

“33 Eye-Opening Drone Stats – Key Trends for 2019.” Philly By Air, 15 Mar. 2019, www.phillybyair.com/blog/drone-stats/.

“DJI Enterprise – Drone Solutions for Your Business – DJI.” DJI Official, enterprise.dji.com/.

“We’re excited to share Prime Air – something the team has been working on in our next generation R&D lab. The goal of this new delivery system is to get packages into customers’ hands in 30 minutes or less using unmanned aerial vehicles.“

-Amazon

Group D, has decided to do research on Amazon’s soon to be delivery service, Amazon Prime Air. The company has decided to solve the customers pains by providing them with a service in which packages can be delivered no more than 30 minutes. Packages will be delivered via drone. The drone will be pre-calculated meaning that the route will be determined and analyzed before take-off. Customers that are looking for packages to be delivered quickly and same day delivery will qualify for this type of delivery. As of 2019, Walgreens has tested this method, but is not close to Amazon. The UPS has also been cleared to begin testing this method of delivery. Packages up to 5lbs are the only products that can be delivered as of now. We decided to research this topic due to the high demand of drones and their capabilities. We believe that this is the perfect topic to explore.

Section 1- Business Problems

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