Tuesday, December 10, 2019

Foundation Of Information Management Systemâ€Myassignmenthelp.Com

Questions: Explain in depth how does the company use Information systems to support or enable its operations, business processes and competitive strategies? What information systems and technologies does your company use in each of its departments? Does the company build its own information systems or does it outsource them? How much of the companys success do you attribute to its use of information systems? What is the role of the CIO in your company? What decisions does s/he make and what is his/her span of authority? How does he set his/her department strategies? Answers: Introducation Amazon is an e-commerce company headquartered in Seattle that operates in different countries. It is distinguished as one of the first e-commerce companies which have contributed to the growth of e-commerce in the world. It was founded in 1994 by Jeff Bezos. The company started out as an online bookstore. In 1997, Amazon went public and diversified by adding other items such as electronic, video games, music, DVDs, etc. The company reported its first net profit during the fourth quarter of 2001. The company acquired various companies as its sales and profits continued to soar. In 2007, the company started manufacturing and selling its own branded electronics such as Kindle. It also launched Amazon web services to the public the following year. Since then, the company has made several acquisitions and has launched new initiatives aimed at expanding business operations and improve customer experience (Ritala, 2014). As of January 2017, Amazon was reported to have over 250,000 employees . Amazon is known for its innovations and contribution to e-commerce which has revolutionized the world. Amazon sells various products and services via its website and smartphones applications. The companys products include content provided by third-party sellers and those purchased for resale as well as merchandise (Kanto, 2015). The company also manufactures and sells various electronic devices such as televisions and Kindle. Through its subsidiary, it offers various organic and health food such as eggs, salmon, kale, lettuce, beef, almond butter, avocados, bananas, etc. Its operations are based on three segments: North America, Amazon web services, and International. North America segment involves sales of merchandise and subscriptions via North American websites such as www.amazon.ca. The international segment focuses on sales of products through international websites such as www.amazon.co.jp, www.amazon.co.uk, etc. Amazon Web Services segment involves of AWS services to customers including government agencies and institutions (Cusumano, 2010). Amazon has leveraged technology to drive growth and enhance customer experience. Through its websites, third parties can sell their products. Many small businesses and individual sellers use the companys platform to increase sales and reach new markets. Amazons technological innovations have enabled the company to tailor the shopping experience to each customers preferences. Its online platform offers various features such as book discovery, wish lists, 1-click shopping, among others that are designed to improve customer experience. Overall organization business strategy Amazons business strategy can be defined as diversification which involves leveraging technology to drive business growth and cost leadership strategy focusing on providing the best value to customers at the lowest price possible (Bharadwaj, 2013). The companys strategy is customer oriented and underscores its aim to serve customers by providing a wide selection of products and prioritizing customers needs. The company focuses on using its technological capabilities to execute this strategy in terms of satisfying customers needs by offering low prices, wide selection, and improving convenience of the shopping experience. Information Technology Strategy Explain the IT strategy and how it served to achieve the organization business strategy. Amazons IT strategy involves leveraging emerging technologies and technological innovations to drive business growth and enhance customer experience. Through this strategy, the company has adopted innovation to enhance its operations (Amit, 2012). Since its inception, the company has come up with innovations such as information systems that have played a vital role in reducing operating costs and enhancing the efficiency of business operations (Chaffey, 2007). Amazon has also become a frontrunner in integrating emerging technologies with the aim of improving its operations and enhancing its capability to serve its customers. Amazon uses various information systems support its operations. Information systems are crucial to the companys operations and are considered as a pillar of Amazons IT strategy. This implies that the company upgrades them to align them with the organizational business strategy. Some of the information systems used by the company include web system, transaction processing system, recommendation system, interactive search system, enterprise resource management (ERM) system, customer relationship management (CRM) system, order fulfillment system, and smart analysis search. Web information system provides a platform through which the company and third party sellers can post products they want to sell. The system showcases the products and services offered by the company and supports transactions. Customers can register in the system and buy products or subscribe to content available. The system is integrated with the database which stores user and product details. Customers can search for various products based on categories or keywords and view their description and price. It also incorporates data analytics tool which tailors products displayed on the website based on the purchasing behavior or preferences of customers. A majority of orders are placed via the website which is relatively easy to use for many customers. Through the web system, the company has succeeded in efficiently serving many customers in different countries. The system is based on Service Oriented Architecture which enables the website to be scalable and robust. Order fulfillment system is a vital information system which is used in processing orders and delivering products to customers. The system is separated from the web system but relies on data from the website to fulfill orders. When customers place orders on the website, the order fulfillment system process the inquiry and track the logistics functions to ensure the order is delivered to the right customer. The system supports the companys shipping operations and has played a key role in enhancing the efficiency of the product delivery process. It runs on a large database running on servers and has continuously been renovated in order to scale it to the growing volume of orders. Amazon developed a Smart Analysis Search system to track fraudsters using its websites. The system has been effective in identifying fraudsters and has helped the company to reduce fraud on its website by analysing behavior patterns (Sudarno, 2012). The system allows the company to assess and personalize its services to the customers needs as well as effectively serve customers. A transaction processing system is used to manage the companys business transactions including collecting and modifying transaction data (Thomson, 2012). The system has various features designed to enhance customer experience. Customers are required to create a profile in order to purchase from the website. The system is integrated with the website to improve the transaction process. It offers various features such as wish list and shopping cart. Other features include 1-click purchase, card transaction, email communication, and shopping services tailored to customers preferences. The system also secures transactions by encrypting customers personal information. Amazon developed a recommendation system which uses customers purchasing patterns and searching behavior to recommend items tailored to their preferences. The system involves mining customers data in order to provide the best recommendation (Xiao, 2007). This enhances customer experience and helps in improving sales conversion rate. The company also provides an interactive search system which allows customers to select desired items via search tools available. The companys supply chain activities are managed by customer relation management (CRM) system. The CRM system collects customers information such as credit card details, purchase history, etc., and stores it in the database. It is integrated with the transaction processing system which handles and secures transactions. It also incorporates sales, services, and communication systems. Amazon also uses an enterprise resource management (ERP) system which holds customer information and automates order processing as well as product distribution. The ERP system also decreases the time taken to fulfill orders by reducing distribution mistakes and tracking orders. Amazon has various departments which use a range of information systems to support their operations. These departments include logistics, distribution, IT, and sales and marketing. Logistics and distribution department relies on order fulfilment system, tracking devices, and CRM system. These systems and technologies are key in processing and delivering orders as expected. IT department oversees technology aspects of the company and rely on various technologies and systems such as website, servers, ERM system, etc. With these information systems, the IT department can assess IT operations and ensure they are aligned with the business goals. Sales and marketing department is involved in managing sales and marketing strategy. The staff members in this department use CRM system, transaction processing system, data analytics, and social media platforms to assess sales performance and develop marketing strategies that enable the company to gain value. Amazon develops most of its information systems. Amazon web service is one of the main systems developed by the company to support its operations. The company has leveraged its technological capabilities to innovate and develop robust systems that drive business growth and enhance the efficiency of its operations (Chesbrough, 2011). While the company has outsourced some systems and technologies such as Oracle, most of systems are developed by an in-house team and are aligned with its strategy to ensure organizational objectives are met. Business growth and increase in sales in Amazon have been attributed to its information systems. The companys information systems have been pivotal in reducing operating costs and enhancing the efficiency of the supply chain process (Isckia, 2009). This has enabled the company to effectively serve its customers and improve customer satisfaction. As a result, the company has maintained high repurchase rates and sales conversion rate which has increased its revenues and profits. Additionally, the systems have enabled the company to scale its operations to meet growing market demand (Teece, 2010). Chief Information Officer (CIO) plays an instrumental role in Amazon particularly due to its stature as a technology company. The CIO formulates organizational IT goals and oversees IT operations in the company. CIO works with top-management to develop an IT strategy that aligns with the companys business strategy and growth objectives. He creates a strategic plan to enable the company to gain business value through its technological capabilities and ensures the companys information systems and IT procedures achieve the business goals established (Peppard, 2010). The CIO also works with IT and innovation teams to develop new technologies and systems that can help the company to enhance its efficiency. Also, he is involved in IT risk management and development of information security policies and strategies. Future Solution (Data Mining) Data is a vital asset that can be beneficial to firms when mined. Through data mining, Amazon can gain value from large datasets it possesses. Through affinity analysis, the company can assess items bought by a customer and predict customer behavior based on preferences and purchasing behavior (Kaur, 2016). By leveraging patterns obtained through the data mining process, the company can align its marketing strategies with the predicted customer behavior. This can be vital in increasing sales as the company can effectively personalize its marketing strategy to the customers (Mobasher, 2007). By evaluating customer purchasing patterns and demographics of customers, Amazon can build products that align with customers preferences and optimize its customer targeting strategy based on this intelligence. Additionally, the company can use data mining to retain customers by enhancing customer loyalty. By applying data mining techniques on social media audience, the company can generate ideas for satisfying customers, improving customer engagement, and enhancing the brand (Cortizo, 2011). References Amit, R., Zott, C. (2012). Creating value through business model innovation.MIT Sloan Management Review,53(3), 41. Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., Venkatraman, N. V. (2013). Digital business strategy: toward a next generation of insights. Chaffey, D. (2007).E-business and E-commerce Management: Strategy, Implementation and Practice. Pearson Education. Chesbrough, H. W. (2011). Bringing open innovation to services.MIT Sloan Management Review,52(2), 85. Cortizo, J. C., Carrero, F. M., Gmez, J. M. (2011). Introduction to the special issue: mining social media.International Journal of Electronic Commerce,15(3), 5-8. Cusumano, M. (2010). Cloud computing and SaaS as new computing platforms.Communications of the ACM,53(4), 27-29. Isckia, T., Lescop, D. (2009). Open innovation within business ecosystems: a tale from Amazon. com.Communications and Strategies,74, 37-54. Kantor, J., Streitfeld, D. (2015). Inside Amazon: Wrestling big ideas in a bruising workplace.New York Times,15, 74-80. Kaur, M., Kang, S. (2016). Market Basket Analysis: Identify the changing trends of market data using association rule mining.Procedia Computer Science,85, 78-85. Mobasher, B. (2007). Data mining for web personalization. InThe adaptive web(pp. 90-135). Springer Berlin Heidelberg. Peppard, J. (2010). Unlocking the performance of the chief information officer (CIO).California Management Review,52(4), 73-99. Ritala, P., Golnam, A., Wegmann, A. (2014). Coopetition-based business models: The case of Amazon. com.Industrial Marketing Management,43(2), 236-249. Sudarno, B. E. P. (2012). Analysis Tracking Online Payment System.International Journal Of Scientific Technology Research (IJSTR) Volume,1. Teece, D. J. (2010). Business models, business strategy and innovation.Long range planning,43(2), 172-194. Thomson, A., Diamond, T., Weng, S. C., Ren, K., Shao, P., Abadi, D. J. (2012, May). Calvin: fast distributed transactions for partitioned database systems. InProceedings of the 2012 ACM SIGMOD International Conference on Management of Data(pp. 1-12). ACM. Xiao, B., Benbasat, I. (2007). E-commerce product recommendation agents: use, characteristics, and impact.MIS quarterly,31(1), 137-209.

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