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Amazon is a cloud computing and e-commerce company based in the United States. It was founded by Jeff Bezos in 1994 which has now become the largest internet based retailer in the world regarding market and sales volume. It is initially started as an online bookstore which was later diversified to sell CDs, video, DVDs, Blu-rays, Video games, Software, toys, furniture, apparel and jewellery. This tech giant also offers international shipping to many countries besides the US for some of its product (Post, 2012). At present, there are three common primary sets; sellers, consumer and developer. The main idea behind the establishment of this platform is to serve many customers as much as possible with a wide variety of product which would ultimately generate profit for the organisation. Amazon has a various product such as Amazon Appstore, Amazon Video, Amazon Web Services, ComiXology and Amazon Kindle. The web service of Amazon includes new features such as Virtual Private Cloud, Amazon Relational Database, Elastic MapReduce, Versioning for Amazon S3 and High-Memory EC2. This Padlet will analyse the use of information system and technology within Amazon.

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HOW INFORMATION SYSTEM SUPPORT CUSTOMER CYCLE, PURCHASE CYCLE, CUSTOMER RELATIONSHIP MANAGEMENT AND QUALITY MANAGEMENT.

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HOW INFORMATION SYSTEM SUPPORT CUSTOMER CYCLE, PURCHASE CYCLE, CUSTOMER RELATIONSHIP MANAGEMENT AND QUALITY MANAGEMENT.

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Purchase cycle is the step taken to order and pay for the product and MIS at Amazon helps the customer in each step of purchase cycle from the search of the need for a specific product to approval and payment. The interactive search system allows the customer to search the product and supplier, First of all, the customer identifies their needs for certain product and services and after deciding how much and when the service or product should be delivered, he/she write the purchase request. After the selection of supplier, the website allows place order through “one-click ordering”. Once the order is placed, they are inspected and approved to deliver usually within 30 days of order.

Customer Relationship Management (CRM) is used by Amazon to gain satisfaction and loyalty of the customer (Imran, 2014). The Amazon website provides ‘Featured Product” when customers first enter into the site. But after the second visit, the smart system developed by Amazon automatically detects the customer interest and personality and recommend the service or product accordingly. CRM records the information of the customer such as debit card, credit card, order record, transaction record and past purchase history (Gray & Byun, 2001). With secured transaction method, the order system takes care of the transaction record and instruction is delivered to the system for the execution of shipment. The customer information is collected from the web system with the help of customer feedback, wish list, customer interest and product reviews. The communication between the customer and system is automated with email and messages system.  Hence, with CRM system, customer sales, communication and services are successfully integrated into Amazon.

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Types of Information Systems used in Amazon

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Types of Information Systems used in Amazon

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Transaction processing system: This system helps operations to monitor day to day activity.

Management information system: Its helps them to store data about the customers and face the challenges that comes in their way from the environment of the business

Enterprise resource planning: It supports and integrate processes including planning, manufacturing, sales and so on.

Supply Chain management: It coordinates suppliers, product, service, production and distribution.

Electronic commerce system: It enable the costumers from amazon to buy good and services from their website.

(Valacich & Schneider, 2012)

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Over the past 20 years, Amazon has developed from a small seller working from a garage in Seattle, to a global company with 304 million customers worldwide. In Europe alone, we have a thriving network of 29 fulfillment centers in seven countries. In 2015, we shipped over one billion units to our many customers across Europe.

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Bianco, P., Kotermanski, R. & Merson, P.P. (2007) Evaluating a Service-Oriented Architecture [Online]. Available at: https://www.sei.cmu.edu/reports/07tr015.pdf (Accessed: 20 October 2017).

Curtis, S. (2013) Amazon at 15: the technology behind Amazon UKs success. Available at: http://www.telegraph.co.uk/technology/amazon/10377834/Amazon-at-15-the-technology-behind-Amazon-UKs-success.html (Accessed: 25 October 2017).

Demir, A. (2017) ‘Management Information System: Case Study of Amazon.Com’ Journal of Research in Business and Management, 4(11), pp. 11–12, ISSN [Online]. Available at: http://questjournals.org/jrbm/papers/vol4-issue11/B4111117.pdf (Accessed: 26 October 2017).

Gray, P. & Byun, J. (2001) ‘Customer Relationship Management’, Center For Research on Information Technology And organizations, p. 9, California Digital Library [Online]. Available at: https://escholarship.org/content/qt76n7d23r/qt76n7d23r.pdf (Accessed: 29 October 2107).

Guo, S., Wang, M. & Leskovec, J. (2011) ‘The Role of Social Networks in Online Shopping: Information Passing, Price of Trust, and Consumer Choice’, pp. 1-2. [Online] Available at: https://arxiv.org/abs/1104.0942 (Accessed: 29 October 2017).

Harsh, S. B. (2014) Management Information Systems [Online]. Available at: http://departments.agri.huji.ac.il/economics/gelb-manag-4.pdf (Accessed: 29 October 2017).

Imran, A. A. (2014) ‘A study on amazon: Information Systems, business strategies and e-CRM’, ResearchGate. [Online] DOI: 10.13140/RG.2.1.1366.8247 (Accessed: 29 October 2017).

Kumar, V. & Raheja, G.E. (2012) ‘Business to business ( b2b ) and business to consumer ( b2c ) management’, International Journal of Computers & Technology, 3(3), pp. 47–48, Council for Innovative Research [Online]. Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.299.8382&rep=rep1&type=pdf (Accessed: 26 October 2017).

Lu, J., Wu, D., Mao, M., Wang, W. & Zhang, G. (2015) 'Recommender system application developments: A survey', Decision Support Systems, 74, pp. 1–4. Opus [Online]. Available at: https://www.uts.edu.au/sites/default/files/desi-publication-recommender%20system%20application%20developments%20a%20survey-accepted%20menuscript.pdf (Accessed: 29 October 2017).

Nowduri, S. (2011) 'Management information systems and business decision making: review, analysis, and recommendations', Journal of Management and Marketing Research, pp. 2-3, EBSCO [Online]. Available at: http://www.aabri.com/manuscripts/10736.pdf (Accessed: 30 October 2017).

Overview of Amazon Web Services (2017) Available at: https://d0.awsstatic.com/whitepapers/aws-overview.pdf (Accessed: 26 October 2017).

Post, G. V. (2012) Management Information Systems Cases. Available at: Posthttps://www.jerrypost.com/MIS/MISCases2012.pdf (Accessed: 29 October 2017).

Valacich, J. & Schneider, C. (2012) Information Systems Today: Managing in the digital world. 5th edition. Harlow: Pearson Education Limited.

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Amazon Web Services (AWS) is a secure cloud services platform, offering compute power, database storage, content delivery and other functionality to help businesses scale and grow. Learn more: http://amzn.to/2iL5v6K Explore how millions of customers are currently leveraging AWS cloud products and solutions to build sophisticated applications with increased flexibility, scalability and reliability.

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Organisations attain core competence by creating a unique and sustaining process for collecting customer information regarding purchasing trends with the help of MIS. The integration of organization and its system is aided by information system in an efficient manner to bring out synergy between system and people. The use of information system in online shopping platform further helps management in decision making at operational level of the organization (Nowduri, 2011). When the information system is aligned with overall strategic goal of the organization, it plays crucial role in the development of the company in global context. Information system and technology can be used as to streamline the management activities and at the same time ensuring the diversified service to the customers. With the use of information system, the geographical, linguistic and cultural boundaries are narrowed down where knowledge, information, relationship and communication are shared with much ease and changing economic and other factors have influenced the use of information system (Harsh, 2014). It is much easier now to open the business 24 hour all over the world and one can get their goods delivered right to the doorstep by moving just single muscle. Information system and technology has helped organization to promote more efficient operation by improving the supply of the information to decision makers. The productivity of the company has been positively affected which helps to gain the competitive advantage in the industry and new interesting jobs have been created providing employment opportunity. In the world of E-commerce, CRM has been the buzz word which helps the organisation to streamline the information towards marketing, offering service and providing technical assistance to the customer (Demir, 2017). The remote access provided by the IT system helps employee to work from home or on the road allowing the increase in productivity. These days, organisation use cloud hosting service to transfer and access the data such as Dropbox, one drive etc. and organisation can use their data anywhere at any time. The financial management has been significantly improved by the use of various software reducing error in calculation because these software are equipped with every tool needed in accounting. Finally, the use of information system and technology has helped business to improve their consumer relationship resulting in expansion and business growth.

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CRITICAL EVALUATION OF THE EFFECTIVENESS OF THE INFORMATION SYSTEM IN AMAZON

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CRITICAL EVALUATION OF THE EFFECTIVENESS OF THE INFORMATION SYSTEM IN AMAZON

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The Amazon web service used by Amazon has allowed its retailer, developer and individual seller to advertise their product on Amazon site by building their web-based application (Amazon Web Services, 2017). By releasing a variety of integrated web services, Amazon has now widened its robust IT infrastructure cheaply and easily. The main advantage of integrated web service to Amazon has been to monitor all the activities to analyse and make right decision for global e-commerce business. The simple storage service (S3) in Amazon has helped company to web-scale computing easier for all their developer and business partner by receive and keep data from anytime, anywhere. The use of S3 provided the opportunity to access same data storage to run global e-business. Amazon has Smart Analytic Search (SAS) analyse the behavioural pattern of the customer and helps to detect and reduce the fraud in Amazon website (Imran, 2014). But, as with all computer system, sometime non-essential data are being collected which delay the business decision of the company. The cost of providing extensive training to the business manager on new system has negative effect on the growth of revenue. Amazon is successful in creating value and profitability by right investment on technology and right management solution to competitive business era.

The service-oriented architecture (SOA) is the mainframe of the company’s information system which allows it to be ultra-scalable, high performance and a wide range of software component enhancement. With the use of SOA, Amazon has focused on end data to keep more consumer, more items and more online order to reinforce the business sale (Bianco, Kotermanski & Merson, 2007). It is so fully distributed, and comprehensive service platform is serving multiple applications. The transaction processing system at Amazon creates convenience for the user with the help of personalised features such as “shopping cart”, “wish list” and so on. The start of Recommended System gave Amazon the useful and relevant information about the user (Lu et al, 2015). The information about customer’s past shopping preferences, his/her behaviour with another customer, the purchased item, similarity in customer are used to give that information. Thus, Amazon has used all the major characteristics of MIS for sustainable and predictable improvement of its e-business.

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Amazon does not have the nearest competitor when it comes to online shopping and is the ultimate online retailer around the world. But the competition is growing in online shopping market, and Amazon has to come up with something as there is no room for relaxation (Yliopisto & Saastamoinen, 2009). The innovation in technology is at the speed of light and Amazon needs to adapt to the new technology. The use of drone delivery system is the indication of its plan and investment in technology. Amazon should start implementing artificial intelligence system and intelligent virtual agents which would benefit in the long run. The use of AI would set the future of information system on Amazon. The entire platform of Amazon needs to integrate with the social networking websites because it must aid in offering touch points at each point of time to the customer (Guo, Wang & Leskovec, 2011). The phishing issues have constantly affected Amazon which asks the customer about their accounting information which needs to be addressed by the enhancement of anti-phishing intervention. Finally, the interrelationship between marketing and sales department within Amazon needs more intervention through MIS system.

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INFORMATION SYSTEM AND TECHNOLOGY FOR EFFECTIVE CUSTOMER SERVICE

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INFORMATION SYSTEM AND TECHNOLOGY FOR EFFECTIVE CUSTOMER SERVICE

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The sale strategy technique employed by Amazon is unique which reflects its information system. The organisation has shifted from single level sales strategy to multi-level e-commerce strategy. The company has initially focused on business to the consumer model of selling and business to the business model of operation, but after rapid innovation in the area of technology, the interaction between consumer and company has enhanced (Kumar & Raheja, 2012). This recent development forced Amazon to give more priority to the customisation of its IT infrastructure and respect the reviews of the customer. Retailers are excluded which allows the customer to sell and buy their product using Amazon as a platform. Management Information System is reflected in the business model of Amazon. At first browsing and then management of account and finally, it involves shopping. In all these steps, the unique Management Information System  of Amazon plays a crucial role. Whether a customer buys or not, they provide information to the system which is smart enough to analyse the information.

Amazon use wide range of information system for its day to day activities. Amazon Web Service and Simple Storage Service are the main system in Amazon by which they maintain vast number of active customer (Imran, 2014). Amazon has reliable, robust and scalable web service which helps it to create global domination. Amazon has Smart Analysis Search (SAS) for tracking fraudsters which analyse the behavioural pattern of the consumer. Amazon also bring one-click ordering service through easy to use card transaction, direct shopping and email communication. It has secured debit/credit card payment system which use secured server software. Similarly, it has interactive search system which provides searching option to the customer from million available options. Oracle is used as the Enterprise Resource Planning (ERP) having huge database for storing information related to customer. The purpose of ERP system is to sustain and link all facets of the business, including planning, manufacturing, sales, marketing, and so on (Valacich and Schneider, 2012, p.60). Since, the use of ERP has helped Amazon to reduce 50% of the customer service contact due to fewer mistakes. Through e-mail and message system, automatic communication has been ensured with customers and with customer relationship management (CRM) system, the customer sales, services and communication has been properly integrated.

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Technology that supports day to day activities of amazon are: 

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Technology that supports day to day activities of amazon are: 

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Amazon Prime

Marketplace

Amazon web services

Technology at work (SLAM)

Prime Now

Kindle

Prime air

Amazon Launchpad

Customer reviews

Amazon fresh

Frustration-Free Packing

Fulfilment by Amazon

Amazon Wind and solar Farms

Amazon Fire TV

Amazon Fulfilment Network

Amazon Pantry

Career Choice

1-Click

Fire Tablets

The Mayday Button