CO-EVOLUTION BETWEEN CCC-DRIVEN CASH FLOW MANAGEMENT AND TRANSFORMATION OF R&D – AMAZON’S ENDEAVOR
International Journal of Managing Information Technology (IJMIT)
ISSN: 0975-5586 (Online); 0975-5926 (Print)
Article:
CO-EVOLUTION BETWEEN CCC-DRIVEN CASH FLOW MANAGEMENT AND TRANSFORMATION OF R&D – AMAZON’S ENDEAVOR
Authors
Yuji Tou1, Chihiro Watanabe2,3 and Pekka Neittaanmäki2
1 Dept. of Ind. Engineering & Magm., Tokyo Institute of Technology, Tokyo, Japan
2 Faculty of Information Technology, University of Jyväskylä, Finland
3International Institute for Applied Systems Analysis (IIASA), Austria
Abstract
Amazon became the world R&D leader in 2017 by rapidly increasing R&D investment. The company’s extremely large amount of R&D funds is the result of an ample free cash flow generated by sophisticated cash conversion cycle (CCC) management. Increased R&D induced business advancement and lean cost structure construction leading to further increase in cash flow which has stimulated interaction between vendors, customers, and Amazon via the Amazon marketplace. Activated interaction accelerated CCC advancement, a subsequent free cash flow increase, and user-driven innovation, thus accelerated the transformation of routine or periodic alteration activities into significant improvement simultaneously. All of these components function together as a consolidated sophisticated machine
Keywords
R&D, Transformation, Cash flow management, Cash conversion cycle, Amazon
Paper URL:
Abstract URL:
Current Issue URL:
Comments
Post a Comment