Amazon: Information Systems and Business Strategies For the last two decades, Amazon

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Amazon: Information Systems and Business

Strategies

For the last two decades, Amazon.com has been serving customers worldwide. Amazon.com was founded by Jeff Bezos back in 1995. The founders' vision was to build a virtual shopping place for book lovers. Amazon.com brings the world's largest book store to the doorstep of people around the world. All people have to do is to search for and select the desired book. It took 30 days to deliver books to the customers of 145 countries. Amazon.com was a huge success in the nineties. Amazon.com became a platform for the retailer and individuals in 2000. Amazon.com offers its services to four types of customers, consumers, sellers, enterprises, and content creators. Amazon serves the customer through the popular website www.amazon.com. Now a day customers can access through mobile technology. Amazon.com apps are also available for customers.

Information Systems utilized for internet activity

Information Systems: In 1995 Amazon used the website system and order fulfillment system separately to improve security. By 1995 amazon had a huge database running on Digital Alpha Servers. Amazon renovated the entire system in the year 2000. The company spent $200 million on the new system. These systems include Operational Support Systems, Management Support Systems, and Strategic Information Systems, and new DBMS from Oracle. These systems helped Amazon to manage its Business-to- Consumer (B2C) side of the business. For communication with supplies, Amazon seals a deal with Excelon for a business-to-business (B2B) integration system. Amazon Web Service (AWS) and Simple Storage Service (SS) are the main systems developed by Amazon. Through this system, Amazon can maintain its vast number of products and millions of active customers. Amazon's web service has become a global platform for individual retailers to sell their products. Through reliable, scalable, and robust web service, Amazon creates global domination. The challenges of Amazon's web services are very prominent. Every second thousand customers are searching. For products and ordering products, the systems have to be fast, reliable, and secured. Every second CRM (Customer Relationship Management) system is taking customer information through their searching, data mining, and wish list. Whatever customer buys or not, they are providing information about them. Systems are smart enough to analyze the information and provide service accordingly.

Supply Chain Management (SCM): For the huge success by 2004 the "Supply Chain System" played a huge role. In 2000 amazon spent a good amount to build an automated warehouse and automated supply chain management. All the supply chain activities are controlled by the CRM system. It was also observed that the implementation of Information Systems reduced the Bullwhip effect at Amazon by a huge margin.

Enterprise Resource Management (ERP System): Amazon uses oracle as the ERP. It has a huge database that holds information related to the customer. The customer's ordering process is automated as the order is taken as it automatically finds the nearest

distributing center for the delivery. This system fastens the order fulfillment process with the order tracking and reduces any distribution mistakes. By this system, the company reduced 50% of its customer service contacts since 1999 because of fewer mistakes.

Database Management System at Amazon

Amazon's biggest assets are the data collected through online activities happening on its website. Through online activities, Amazon collects data from customers and uses it for advertising and marketing purposes. Data collected by Amazon are thus from three sources, namely, operation, external, and distributed. These data are integrated and stored in Data Warehouse and then collected by Data Mining software for various decisions.

Strategic Information System at Amazon

Being an online company, decision making at Amazon are truly based on real-time data. Amazon developed its automatic decision-making SIS which generates reports based on the data collected from varied sources. Top management uses these data and reports to make instant decisions with adaptive implementation strategies.

 

Question 1

Discuss the role played by Information Systems to reduce the Bullwhip effect in Supply Chain Management at Amazon?

explain SCM , Types of SCM , Bullwhip effect SCM is in case

 

Question 2

Analyze the role of Data Base Management System (DBMS) in collecting and using it for decision making at Amazon?

explain DBMS, Types of Data companies , DBMS is in the case

 

Question 3

Examine the type of Strategic Information System (SIS) developed and used by Amazon?

explain SIS, types of SIS, SIS is in the case