1. Introduction
Digital technologies enable the development of a wider range of new business models, transforming them and becoming new channels for communication with customers and other stakeholders. With the help of digital technologies, business models can transform and be automated or scaled [1]. Digital transformation has become the key for enterprises to improve competitiveness and achieve sustainable development. In this context, leadership training also faces huge opportunities and challenges. The traditional leadership training model has yet to adapt to the rapidly changing market environment and corporate needs. Therefore, how to combine digital transformation and innovative leadership training models has become the focus of current business and academic circles.
As a global e-commerce and cloud computing leader, Amazon’s success is inseparable from outstanding leadership. In the digital transformation process, Amazon has always regarded leadership training as an important support for corporate development. Digital transformation also has a key impact on leadership training at Amazon. Through an in-depth study of Amazon’s leadership training model and practice, it can offer reference and inspiration for other companies’ leadership training within the framework of the digital transformation.
The purpose of this study is to investigate in great detail how digital transformation affects leadership training, as well as the effectiveness and challenges of this type of training in this environment. Additionally, this study will look at innovative approaches to leadership training models within this framework. Existing leadership training theories can be enriched and improved, and new research perspectives and ideas can be provided for the academic community by analysing the case of Amazon. Practical guidance for other companies to improve their leadership training effectiveness during the digital transformation process and enhance leaders' digital capabilities and leadership levels can be provided by analysing Amazon's successful experience.
This study adopted the literature research method and case analysis method. By reviewing and sorting out relevant academic literature, industry reports, corporate cases, etc., it gained a detailed understanding of the impact of digital transformation on leadership training and Amazon’s concepts and practices in leadership training. This article takes Amazon as an example to analyse its specific strategies, methods, and effectiveness of leadership training, summarises and analyses its successful experience, and provides useful inspiration for other companies.
2. Digital Transformation and Leadership Training
2.1. The Impact of Digital Transformation on Leadership Training
Digital transformation combines innovations that bring new actors, structures, practices, values and beliefs [2]. Digital transformation has brought certain promotion and impact to all aspects of corporate management and has a profound impact on corporate leadership training, both positive and negative.
On the positive side, first, changes in training formats. The traditional face-to-face teaching model is being replaced by digital technology. In the future, more leadership training will adopt digital methods such as online learning and virtual reality. This method improves the flexibility and convenience of training and makes the training content more vivid and intuitive; second, it is innovative. Digital transformation will enable the visualisation and intelligence of large amounts of data, a huge opportunity for leadership training. Digital technology can make training content more comprehensive and in-depth, helping leaders better comprehend and address the issues raised by the digital transformation; third, the learning experience is improved. Digital technology will transform the learning experience of leadership training. Through technologies such as virtual reality, leaders can feel the knowledge learned more intuitively and improve learning efficiency; fourth, evaluation of training effects. Digital transformation provides a more scientific and accurate method for evaluating the effectiveness of leadership training. Through data analysis and artificial intelligence technology, leaders' learning status and training effects can be monitored and evaluated in real time so that training content and methods can be adjusted promptly to improve training effects.
On the negative side, during the digital transformation process, leaders need to master new technology tools and platforms. Suppose training needs to cover these new technologies or provide adequate practice opportunities. In that case, leaders may face technical challenges and need help to use these tools to increase efficiency and productivity effectively. Digital transformation can require significant capital and resource investments to develop and implement new training programs. This can add to the cost burden on businesses, especially when budgets are limited. In addition, digital transformation may change organisational structure and culture, leading to resistance to change among some employees. If leaders do not have adequate leadership and communication skills to handle this resistance, it can lead to change failure.
2.2. The Role of Leadership Training in Digital Transformation
As businesses progress toward digitalisation, leaders will need new skills and thinking methods to cope with changing market conditions and rapid technological developments. Research shows a leader's identity is malleable and can change during training interventions [3]. Leadership training is indispensable for cultivating excellent leaders and improving their abilities. The purpose of leadership training is to equip leaders with new information and enhanced abilities while also motivating them to establish the necessary attitudes to acquire and use the skills and knowledge needed for their jobs [4]. In digital transformation, leadership training also has considerable significance and role, as follows:
Cultivate digital thinking. Digital transformation requires leaders to have a digital mindset and be able to understand and leverage data to drive decisions. Leadership training can help leaders develop data-driven decision-making skills and learn how to collect, analyse and apply data to develop smarter and more effective strategies.
Stimulate the spirit of innovation and change. Digital transformation requires leaders to have innovative thinking, the courage to change, and the ability to reshape the organisation's culture and processes. Leadership training can inspire leaders’ sense of innovation and spirit of change through case sharing, team building, and other activities, and it can promote organisations to remain competitive in the digital age.
Improve teamwork and communication skills. Digital transformation requires cross-department and cross-level collaboration within an organisation. Leadership training can strengthen leaders’ teamwork and communication skills, enabling them to lead their teams better to meet the challenges of digital transformation.
Cope with future challenges. Digital transformation is an ongoing process, and leaders must continually learn and grow to meet future challenges. Leadership training can provide leaders with a platform for continuous learning and development, allowing them to improve their abilities and qualities, make continuous progress, and create greater value for the enterprise.
Participating in leadership training can enhance an individual's sense of self as a leader by providing clarity on role requirements and encouraging self-reflection [5]. Leadership training can cultivate leaders' digital thinking and innovation capabilities, inspire their spirit of change, improve team collaboration and communication skills, and enable them to lead companies better to maintain competitive advantages in the digital era.
3. Discussion
Digital transformation focuses on potential changes in a company's business model brought forth by digital technologies, which may result in modifications to organizational structures, processes, or products [6]. Companies' leadership needs have also undergone significant changes in the context of digital transformation. Leaders need higher technical literacy, data-driven decision-making capabilities, teamwork and communication skills, etc. Therefore, leadership training needs to pay more attention to integrating technical knowledge and leadership skills, as well as adaptability and innovation to various changes.
To meet the challenges of digital transformation, leadership training needs to continuously innovate training content and methods. The training content should cover technical knowledge, data analysis, innovative thinking, etc.; the training method can combine online and offline seminars, workshops, simulation exercises and other diversified forms. In addition, digital transformation is an ongoing process, and leadership training should set up a system for continuous learning and feedback. When training, include a variety of delivery methods, provide practice chances, and give feedback [4]. Enterprises need to regularly evaluate the training effect and continuously adjust training content and methods based on the latest feedback results to ensure that the training can meet the actual needs of the enterprise. The success of leadership training is ultimately reflected in the practical application of training results. Enterprises need to encourage leaders to turn the knowledge and skills learned in training into practical actions to promote the smooth progress of digital transformation.
According to some academics, leadership training is a methodical learning program created to enhance particular work-related information (what you know), abilities (what you can do), and attitudes (your ideas or sentiments toward work) in order to enhance work performance [7]. Different training requirements may apply to leaders with and without experience [8]. In leadership training, delivering information may include lectures supplemented by visual aids such as videotapes and written materials [9]. There are training programs that follow the lectures for one-day Interactive sessions, including role-playing, decision-making exercises and case studies [10]. Some scholars believe a systematic needs analysis should be conducted before implementing a training plan. Select a training program that has been scientifically validated and assess its efficacy for your organization. Additionally, obstacles that keep workers from acquiring and using their abilities should be removed [4].
Most existing research on leadership training focuses on systematic training, emphasising employee learning and skill application to promote organisational performance. Very few studies exist on the relationship between leadership training and corporate digital transformation. Most existing research only focuses on one-sided leadership training and must stay within the traditional leadership training model. It needs to clarify the leadership training needs in digital transformation and integrate leadership training methods with the changes in the current era. The digital transformation of contemporary enterprises has been combined and failed to use diversified and modern methods to conduct leadership training flexibly.
4. Case Analysis: Amazon Leadership Training
4.1. The Background of Amazon’s Digital Transformation
Amazon’s digital transformation background and journey can be traced back to the early 21st century, when the Internet gradually became popular and e-commerce emerged. Amazon, which started as an online bookstore, faced stiff competition in online retail in its early days and struggled with profitability. With digital customer expectations changing rapidly, Amazon has keenly captured this trend and expanded its reach to cover a wide range of product categories. Amazon expanded its e-commerce operations with the launch of Amazon New Business, a comprehensive marketplace for B2B businesses with more than 250 million products and services, from cleaning supplies to industrial equipment. The company has also launched a slew of new services. This transformation laid a solid foundation for Amazon to become one of the largest online retailers in the world.
As technology continues to advance and markets continue to change, Amazon continues to deepen its digital transformation. It began to invest in and develop its technology platform, including cloud computing, big data analytics and artificial intelligence. Chen Xiaojian, general manager of Amazon Cloud Technology Greater China Product Department, said: Amazon Cloud Technology has always adhered to reverse working and built products based on the needs of millions of customers. We firmly believe that only in this way can we continue to lead technological innovation [11]. Introducing and applying these technologies enables Amazon to understand consumer needs better and provide a more personalised shopping experience. In addition, Amazon continues to optimise its supply chain and logistics systems to improve operational efficiency.
In the process, Amazon has also actively promoted digital transformation in other areas. For example, it launched the Kindle e-reader, which promoted the publishing industry's digital transformation. By launching AWS (Amazon Web Services), it provided powerful cloud computing services to other enterprises and encouraged the entire industry to undergo a digital transformation.
Amazon's digital transformation process is a process of continuous innovation and adaptation to market changes. Amazon has transformed from a traditional online retailer to a global technology giant by continuously introducing new technologies and expanding into new business areas.
4.2. Practices of Amazon Leadership Training
Amazon has a distinctive culture for finding and nurturing leaders, centered around 14 leadership principles that influence and mold the business's choices and distinct entrepreneurial mindset. These high-execution culture and strong entrepreneurial spirit serve as the foundation for these Amazon leadership principles [12]. Amazon's leadership training concepts and practices are closely connected, shaping its unique corporate culture and management style. Amazon’s leadership training concepts mainly include the following points.
Customer first. Customers always come first. Amazon firmly believes that meeting the needs of its customers is the cornerstone of its success. In leadership training, this concept is repeatedly emphasised, and leaders are required to always think from the customer's perspective and think about how to provide better products and services, even if they sacrifice their interests for the sake of customers.
Innovation and simplification. Amazon encourages leaders to be innovative and constantly look for new ways to solve problems. At the same time, streamline processes and products to make them easier to understand and use.
Make the right decision. Leaders need to make smart decisions to move their company forward. Amazon emphasises that decisions should be based on data and facts, not personal bias or emotion.
Select talents and cultivate talents. Amazon attaches great importance to the cultivation and development of talents. Leaders need to focus on the growth of their employees and provide them with opportunities to learn and develop.
Adhere to high standards. Good leaders always raise the bar and strive to create high-quality products and services. Amazon requires leaders to set high standards for themselves and their teams, pursue excellence, and constantly challenge themselves.
In the practical application of Amazon leadership training, Amazon provides leaders with development programs, including online courses, workshops, seminars, etc., to help them improve their leadership skills. Amazon encourages leaders to work in different departments and roles to broaden their perspectives and experience. This rotation system helps leaders better understand the company's operations and business model. Amazon also emphasises the importance of data and the need for leaders to make decisions based on data. The company provides many data tools and analysis platforms to help leaders better understand and utilise data. In addition, Amazon encourages employees to provide feedback to leaders to help leaders understand their strengths and weaknesses and develop improvement plans. This feedback mechanism helps leaders continuously improve their leadership skills.
4.3. Amazon leadership training in the context of digital transformation
Amazon’s leadership training concepts and practices reinforce each other and jointly drive the company’s growth. By emphasising customer first, innovation and simplification, making good decisions, selecting talents and adhering to the highest standards, as well as implementing practices such as leadership development plans, internal rotation systems, data-driven decision-making culture and employee feedback mechanisms, Amazon has successfully succeeded Developed an efficient and capable leadership team to provide strong support for the company's digital transformation.
In the context of digital transformation, the embodiment of Amazon leadership training can be observed from the following dimensions. First, Amazon focuses on its leadership principles, emphasising innovation, customer focus, results orientation, and long-term thinking. Leadership training includes comprehensive study and practice of these principles so that leaders can maintain consistent values during digital transformation. Second, Amazon provides extensive digital technology training to ensure leaders understand and can respond to emerging technology trends such as cloud computing, artificial intelligence, and big data analytics—all of which are essential to the digital transformation process. Additionally, Amazon typically adopts a practice-oriented learning approach that encourages leaders to apply what they learn through real projects and situational simulations. This helps deepen understanding of the practical challenges of digital transformation and improves problem-solving skills. Finally, Amazon has a dedicated leadership development program designed to develop the skills and qualities of leaders in the digital age. This includes regular seminars, training courses, mentorships and other forms of training.
One of Amazon's success stories in digital transformation is its success in cloud computing services (Amazon Web Services, AWS). AWS not only provides powerful infrastructure support for Amazon itself but also provides cloud computing services to enterprises worldwide. Amazon's digital transformation has enabled it to achieve leadership in cloud services and provide innovative solutions to other businesses.
4.4. Practical Suggestions and Enlightenments
Amazon has achieved significant research results in leadership training. Its emphasis on leadership training, adapting to digital transformation, providing diverse training content, adopting practice-oriented training methods, and regularly evaluating training effects have inspired other companies. As noted by Day et al., it is crucial to understand your organisation's leadership training and development needs, where your funding will be directed, what effective initiatives will be used to address those needs, and then corresponding investment [4].
In order to further optimize leadership training to adapt to the needs of digital transformation, based on the research results, this study makes the following suggestions: Enterprises should clarify leadership training needs considering the digital transformation and develop targeted training plans and strategies; enterprises need to adopt diversified Training methods and means to improve training effects and learning experience; leadership training should focus on the integration of technical knowledge and leadership skills to cultivate leaders with high adaptability and innovative capabilities; leadership training can strengthen cross-border cooperation and exchanges, Invite experts and scholars from different fields and industries to share experiences and insights; establish a continuous learning and feedback mechanism to ensure that leadership training can continue to meet the actual needs of enterprises; encourage leaders to apply training results in actual work to promote digital transformation Goes smoothly.
5. Prospects for Future Research Directions in Leadership Training
Future research on leadership training will combine market changes and digital transformation, paying more attention to AI and leadership training, cross-cultural leadership training, emotional intelligence and leadership training, and personalised leadership training. The following aspects can be anticipated when considering future research directions for leadership training.
AI and leadership training. With the continuous development of modern artificial intelligence technology, AI will play an increasingly important role in leadership training. For example, Through AI technology, thorough analysis of leaders’ behaviours, decision-making, and communication styles can be conducted, providing them with more accurate feedback and effective suggestions.
Cross-cultural leadership training. With the deepening of globalisation, cross-cultural exchanges are essential. Cross-cultural leadership training will become an important direction in future leadership training. Leaders need to have cross-cultural communication, cross-cultural teamwork, and cross-cultural decision-making abilities to cope with the increasingly complex and changing international environment. Therefore, future leadership training will focus on cultivating leaders’ global vision and cross-cultural awareness to enhance the competitiveness of enterprises on the international stage.
Emotional intelligence and leadership training. Research shows that emotional intelligence is critical to a leader’s success. It is believed that an important quality for a leader is emotional intelligence. Leaders with high emotional intelligence activate their human potential, motivating others [13]. Future leadership training will pay more attention to the cultivation of emotional intelligence, helping leaders improve their emotional management, empathy, and interpersonal skills to understand better, meet the needs of team members, and promote team harmony and development.
Personalised and customised leadership training. Every leader has their unique style and needs. Through a comprehensive comprehension of leaders' attributes and requirements, customised training programs are meticulously crafted to enhance their strengths and address areas for improvement. This kind of training method will align with the actual needs of leaders and improve training effectiveness and satisfaction.
6. Conclusion
This study takes Amazon as an example. By studying leadership training in the context of digital transformation, it is found that modern digital transformation has a profound impact on leadership training and leadership training also plays an important role in digital transformation. Enterprises need to pay attention to the innovation and practice of leadership training, change the traditional leadership training model, and cultivate leaders with high adaptability and innovation capabilities to cope with the opportunities and challenges brought by digital transformation.
References
[1]. Li, F. (2020) The digital transformation of business models in the creative industries: A holistic framework and emerging trends. Technovation, 92, 102012.
[2]. Hinings, B., Gegenhuber, T., & Greenwood, R. (2018) Digital innovation and transformation: An institutional perspective. Information and Organization, 28(1), 52–61.
[3]. Miscenko, D., Guenter, H., & Day, D. V. (2017) “Am I a leader? Examining leader identity development over time.” The Leadership Quarterly, 28(5), 605-620.
[4]. Day, D., Bastardoz, N., Bisbey, T., Reyes, D., & Salas, E. (2021) Unlocking human potential through leadership training & development initiatives. Behavioral Science & Policy, 7(1), 41–54.
[5]. Kragt, D., & Guenter, H. (2018) Why and when leadership training predicts effectiveness: The role of leader identity and leadership experience. Leadership & Organization Development Journal, 39(3), 406-418.
[6]. Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2016) Options for formulating a digital transformation strategy. MIS Quarterly Executive, 15(2), 123–139.
[7]. Salas, E., Tannenbaum, S. I., Kraiger, K., & Smith-Jentsch, K. A. (2012) The science of training and development in organisations: What matters in practice. Psychological Science in the Public Interest, 13(2), 74–101.
[8]. Day, D. V., Harrison, M. M., & Halpin, S. M. (2009) An Integrative Approach to Leader Development: Connecting Adult Development, Identity, and Expertise. Psychology Press.
[9]. Santos, J. P., Caetano, A., Tavares,M. (2015). Is training leaders in functional leadership a useful tool for improving the performance of leadership functions and team effectiveness? The Leadership Quarterly, 26(3), 470-484.
[10]. Hassan, R., Fuwad, S., & Rauf, A. (2010) Pre-training motivation and the effectiveness of transformational leadership training: An experiment. Academy of Strategic Management Journal, 9(2), 1–8.
[11]. Chen, L. H. (2024) Strengthen the foundation and expand new technologies to empower cloud computing innovation. Amazon Cloud Technology fully develops generative AI. Software and Integrated Circuits.
[12]. Tou, Y., Watanabe, C., Moriya, K., Naveed, N., Vurpillat. (2019) The transformation of R&D into neo-open innovation: A new concept in R&D endeavour triggered by Amazon. Technology in Society, 58, 101141.
[13]. Drigas, A., Papoutsi, C., & Skianis, C. (2023) Being an Emotionally Intelligent Leader through the Nine-Layer Model of Emotional Intelligence—The Supporting Role of New Technologies. Sustainability, 15, 8103.
Cite this article
Tan,Y. (2024). Leadership Training in the Era of Digital Transformation: Case Study of Amazon. Advances in Economics, Management and Political Sciences,119,22-28.
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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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References
[1]. Li, F. (2020) The digital transformation of business models in the creative industries: A holistic framework and emerging trends. Technovation, 92, 102012.
[2]. Hinings, B., Gegenhuber, T., & Greenwood, R. (2018) Digital innovation and transformation: An institutional perspective. Information and Organization, 28(1), 52–61.
[3]. Miscenko, D., Guenter, H., & Day, D. V. (2017) “Am I a leader? Examining leader identity development over time.” The Leadership Quarterly, 28(5), 605-620.
[4]. Day, D., Bastardoz, N., Bisbey, T., Reyes, D., & Salas, E. (2021) Unlocking human potential through leadership training & development initiatives. Behavioral Science & Policy, 7(1), 41–54.
[5]. Kragt, D., & Guenter, H. (2018) Why and when leadership training predicts effectiveness: The role of leader identity and leadership experience. Leadership & Organization Development Journal, 39(3), 406-418.
[6]. Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2016) Options for formulating a digital transformation strategy. MIS Quarterly Executive, 15(2), 123–139.
[7]. Salas, E., Tannenbaum, S. I., Kraiger, K., & Smith-Jentsch, K. A. (2012) The science of training and development in organisations: What matters in practice. Psychological Science in the Public Interest, 13(2), 74–101.
[8]. Day, D. V., Harrison, M. M., & Halpin, S. M. (2009) An Integrative Approach to Leader Development: Connecting Adult Development, Identity, and Expertise. Psychology Press.
[9]. Santos, J. P., Caetano, A., Tavares,M. (2015). Is training leaders in functional leadership a useful tool for improving the performance of leadership functions and team effectiveness? The Leadership Quarterly, 26(3), 470-484.
[10]. Hassan, R., Fuwad, S., & Rauf, A. (2010) Pre-training motivation and the effectiveness of transformational leadership training: An experiment. Academy of Strategic Management Journal, 9(2), 1–8.
[11]. Chen, L. H. (2024) Strengthen the foundation and expand new technologies to empower cloud computing innovation. Amazon Cloud Technology fully develops generative AI. Software and Integrated Circuits.
[12]. Tou, Y., Watanabe, C., Moriya, K., Naveed, N., Vurpillat. (2019) The transformation of R&D into neo-open innovation: A new concept in R&D endeavour triggered by Amazon. Technology in Society, 58, 101141.
[13]. Drigas, A., Papoutsi, C., & Skianis, C. (2023) Being an Emotionally Intelligent Leader through the Nine-Layer Model of Emotional Intelligence—The Supporting Role of New Technologies. Sustainability, 15, 8103.