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5020
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Information Systems
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Nov 24, 2024
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Uploaded by wilburnshanta35
How Amazon was able to develop a successful IT strategy.
Previously in 1995 Amazon utilized a website system and an order fulfillment system individually for the purpose of improving security. However, by the year 2000 the enterprise changed the entire system from running a huge database on Digital Alpha Servers. The company spent $200 million on innovation of the system which included analysis software from, logistics software, and a new database management system (Imran, 2014). To deal with communication of
supplies Amazon acquired a deal with Excelon for the business-to business integration system (Konicki, 2000). The way in which Amazon maintains it large number of products and millions of customers, the company utilizes AWS and Simple Storage Services or SS. The AWS service has shown itself to become a worldwide platform for both individuals and retailers to sell their products. Due to the reliability and scalability of those web services Amazon has been able to develop a global domination. How Amazon planned and implemented the IT strategy.
When Amazon started planning and implementing their IT strategy, the company had to keep in mind that the challenges for the amazon web services were very eminent. There are thousands of customers searching constantly for products and ordering products, therefore the systems must be fast, reliable, and secure (Imran, 2014). This caused amazon to utilize a Customer Relation Management system for taking customer information through their searching,
data mining, and so on. Utilizing this system allowed the company to keep track of what consumers buy or do not buy, and it provides information about those products and customers. Amazon’s system is advanced enough to analyze that information and provide services as needed. However, with much online activity and purchasing there are going to be fraudsters, and that prompted amazon to integrate a system called SAS or Smart Analysis Search. This system allowed amazon to weigh and customize customer purchases while also helping to serve the consumer effectively (Kantardzie, 2003). The SAS allowed amazon to implement a transaction processing system that includes 1-
click purchasing. The 1-click purchase allows consumers that have ordered form this website before can order items by clicking only one button without having to fill out an order form. The server, which is secure, automatically gives the required information to the registered customer. Another way the company implemented their IT strategy was to add a secure credit and debit card transaction system that utilized secured server software that encrypts personal information of the customer. Furthermore, Amazon created a smart recommendation system that recommended products according to their past purchases and data searches. Amazon also implemented a supply chain management system in 2000 that assisted in the building of an automated warehouse and automated supply chain management system that are controlled by their CRM system (Imran, 2014). Amazon also utilized electronic customer relationship management which allowed the company to the ability to gather, integrate, and distribute data gained within the website to all the enterprise. Finally, the IT strategy of Amazon was implemented through CRM by consumer selection, consumer acquisition, review system, and the
integration of new technologies.
How is Amazon supported by their IT strategy?
By Amazon manifesting itself to be a multination ecommerce company, it is evident that the company is supported by its IT strategy in several ways. It is supported by their IT strategy through two technologies, the integration of customer relationship management and information management of their overall business strategy. Linux is a primary strength of technology of Amazon. The company’s IT infrastructure is built in a way that it processes well beyond millions
of operations, queries, and issues of more than half of its sellers (Demir, 2017). Its IT strategy has also been supported by its sales strategy due to the Management Information System. This prompted the company to change from a single level sales strategy to a multi-level e-commerce strategy. With the enhancing development of online shopping population increasing interactions between customers and businesses, Amazon is forced to prioritize the customization of its IT so that the customer views are valued as a part of their business strategy.
The IT strategy also supports the business model through its Management Information Systems. The MIS plays a vital role in browsing, managing accounts, and the last steps of shopping. This system supports the IT strategy because the technology used by the company includes web service, middleware, groupware, and networking which are the main components of MIS. The technology and the enterprise system are interconnected with bright database management systems that depend on each other. Lastly, Amazon’s IT strategy is also supported through its payment system and marketing strategy. Demir, A. (2017). Management Information System: Case Study of Amazon.Com. Journal of Research in Business and Management. Volume 4 ~
Issue 11. pp. 11-17
https://www.questjournals.org/jrbm/papers/vol4-issue11/B4111117.pdf
Imran, Md Abdullah. (2014). A STUDY ON AMAZON: INFORMATION SYSTEMS, BUSINESS STRATEGIES AND e-CRM. DOI: 10.13140/RG.2.1.1366.8247.
Kantardzic, M. (2002). Data Mining: Concepts, Models, Methods, and Algorithms, Second Edition. Data Mining: Concepts, Models, Methods, and Algorithms: Second Edition. DOI: 10.1109/9780470544341.
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