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Assessment 3 Applied Project
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Assessment 3 Applied Project
Introduction
Amazon is one of the biggest technology companies that focuses on cloud computing, e-commerce, artificial intelligence, and digital streaming. It has been serving its customers for the last two decades. The basic vision of the founder of Amazon was to build a virtual shopping place for consumers. In the initial stage, Amazon provides its customers with a massive number of books through virtual shopping. It was founded it 1995 by Jeff Bezos and proved to be a huge success in the nineties. With the passage of time, Amazon began to offer services through for all kind of customers including content creators, enterprises, sellers, and consumers. A critical examination of Amazon is highly necessary to determine various existing information systems that proved to be effective for Amazon. Nowadays, people can easily access various services of Amazon through their smartphones. The entrance of Amazon in the Australian market is problematic for local retailers as Amazon is using modern information systems to gather more customers. However, Amazon needs to incorporate effective information systems to attract more consumers towards its products and services. Here, the focus is to introduce some effective information systems for Amazon, so it can excel in the given market.
Discussion
Amazon used both order fulfillment system and website system to enhance their online trafficking and security system. It is important to mention that Amazon has a huge database by 1995, which was running on DAS (Digital Alpha Servers). With the passage of time, Amazon began to introduce new systems to improve security and online trafficking. In the 2000s, Amazon spent more than 200 million dollars to introduce some efficient systems. It is essential to notify that Amazon introduces logistics from Manugistics and analysis software from epiphany. Incorporation of information systems was highly important and necessary for Amazon due to various cyber-attacks on their website. Amazon began to develop its own systems such as Simple Storage Service (SSS) and Amazon Web Service (AWS). Establishment of these new systems provides valuable support for Amazon to maintain huge online trafficking. A critical examination of these information systems provides a better understanding of their working. Amazon establishes and incorporates these systems to maintain millions of active consumers and penalty of its products. Nowadays, Amazon web service provides a specific platform for many retailers to sell their services and products. It wasnt all that long ago that books were the sole focus of amazon and this was the only market that it chose to work in and dominate. However, with a rather unprecedented turn of events, at present, the company represents four percent of all retail sales and around 44 percent of eCommerce. Since its inception, its stock has also gone up by 8,000 percent ADDIN ZOTERO_ITEM CSL_CITATION citationID5RQo5i1m,propertiesformattedCitation(CB Insights, 2019),plainCitation(CB Insights, 2019),noteIndex0,citationItemsid944,urishttp//zotero.org/users/local/0omESN17/items/IWSIMMGB,urihttp//zotero.org/users/local/0omESN17/items/IWSIMMGB,itemDataid944,typewebpage,titleAmazon Strategy Teardown,container-titleCB Insights Research,abstractSeattle-based Amazon is doubling down on AI for AWS and the ecosystem around its AI assistant, Alexa. Its seeking to become the central provider for AI-as-a-service. But its not leaving retail behind either, running grocery, book, and convenience stores across the US.,URLhttps//www.cbinsights.com/research/report/amazon-strategy-teardown/,languageen-US,authorfamilyCB Insights,given,issueddate-parts2019,accesseddate-parts2019,9,7,schemahttps//github.com/citation-style-language/schema/raw/master/csl-citation.json (CB Insights, 2019). The future of Amazon is as bright as ever, with seven of its marketing strategies already in place that can catapult Amazon at an unprecedented rate right into the future. Here is a look at its strategies and the impact it can have on customers, vendors, as well as its competitor.
Amazon prime was a way to earn the loyalty of customers and bring in more customers over to the platform by offering them better increments and value propositions, such as free shipping. This move has proved to the linchpin in the success of this empire, making it one of the most successful enterprises of all times. While it has paved the way for amazons success, new vendors just entering the market can ride on this wave of success and ensure that their brand is also a success in nearly no time. With most brands trying to go online, having access to a platform as giant as amazon can quadruple the success potential for small business. They can simply sign up to amazon and have the sites credibility and amazing service to pave its way to success. Amazon is quite known for using drone technology to make across the state deliveries within 48 hours. This is putting an immense pressure on its competitors to keep up, while also reducing the sheer amount of labour involved. However, while it offers its airborne fulfilment centre to some retailers and their products, expanding in this arena can certainly help. On one hand, Amazon does offer worldwide shipping, but this worldwide shipping option is controlled by the retailer, who are usually hesitant to ship products globally. Thus, it is high time that amazon introduces incentives for retailers and vendors to grow their reach and ship products overseas.
Viability of Information Systems
Incorporation of modern information systems is highly necessary for an organization as it simplifies various processes. The information system provides a valuable opportunity for the organization to make better decisions regarding their processes and services. In the modern world, companies are trying to utilize various effective strategies to reach out to their clients. There is an immense need for organizations to establish a better communication channel to interact with their clients and customers (OBrien and Marakas, 2006, pp.14). In that particular aspect, information system helps to create better communication between an organization and customers. Amazon needs to develop global domination in order to compete with other technology companies such as Apple, Facebook, and Google. Moreover, Amazon is facing various problems in the Australian retail market. Amazon has proved its effectiveness in many countries around the globe. However, due to significant challenges in the Australian market, Amazon needs to develop and incorporate various new information systems to excel in the market. CRM (Customer Relation Management) system is one of the most effective systems in the retail industry. Companies are using it to gather information about their customers. Therefore, Amazon should need to incorporate CRM system for searching and data mining. With the help of this system, Amazon will be able to get information regarding customers activity and what they buy or not. It is important for Amazon to utilize the services of CRM as it is an efficient information system that analyses information and provides service accordingly. It is important to consider the fact that Amazon can increase its sales with the applications of CRM regarding products and ordering products.
Now, Amazon is in need of a specific strategy to improve its transaction processing system. Improvement in the transaction processing system is highly necessary for a company to improve their online sales. Customers tend to use the services of those information systems that provide ease in the payment process. For that particular purpose, Amazon needs to provide effective transaction processing system. Amazon should need to enhance its secure credit/debit card payment so that its customers feel secure. There is a need for secured server software for Amazon to incorporate in its processes. It is highly important for companies to encrypt personal information and credit card number during the transaction process (Wadley, 2006, pp.9). Utilizing the applications of secured server software, companies can easily secure sensitive information of client over the internet (OBrien and Marakas, 2006, pp.26). It is also necessary for Amazon to bring a 1-click purchase information system in its transaction processes. There are many significant companies in Australia that are using 1 click ordering to provide ease for customers to make a purchase. 1 click strategy will be highly efficient for Amazon to increase its profitability. Amazon can easily safe its time along with customers time through 1 click ordering system. Utilization of 1 click ordering system will be beneficial for Amazon to provide ease for its loyal customers to purchase any item without filling order form. Amazon also needs to improve its recommendation system, to determine the interest of customers regarding their purchase.
Companies are using recommendation systems to keep a record for customers past purchase through efficient searching system. A critical examination of the recommendation system provides a better understanding of its effectiveness and efficiency. It is important to consider the fact that companies can make significant progress through the recommendation system. It allows companies to understand the likes and dislikes of their clients. Amazon should need to use the recommendation system as it will help it to save money. It will provide valuable information for Amazon that what products are more likely to attract customers. Through this, Amazon can easily increase its sales and profit margin. The recommendation system is incorporated with linking and data mining systems that keep a record of customers activity and purchases. A best possible recommendation is presented by this recommendation system, which can ultimately enhance customers browsing experience (Smith and Linden, 2017, pp.21). It is important to consider the fact that customer satisfaction is highly important for an organization to excel in a particular market. By using the services of recommendation systems, a company can search for queries from customers to establish an effective interactive platform (Smith and Linden, 2017, pp.23). Therefore, it is beneficial for Amazon to maximize its customers satisfaction along with sales to increase its profit margin as compared to other companies. Furthermore, it is highly important for an organization to incorporate an interactive searching system in order to make it easy for clients to find out any item of their interest. If Amazon wants to increase its sales, then it should need to provide its customers with an interactive searching option. The basic purpose behind this interactive searching system is to provide ease for customers to find their desired item (Smith and Linden, 2017, pp.23). Through the utilization of this searching tool, Amazon can easily increase its sales and profit margin as customers can easily find millions of items through it.
Acquisition Management Plan
It is identified that Amazon needs to introduce 1-click purchase, secure credit card payment, recommendation system, and interactive searching system to improve its profit margin. The utilization of these information systems will be beneficial for Amazon to enhance its processes. Incorporation of 1-click purchase, secure credit card payment, recommendation system, and the interactive searching system is highly important for Amazon to keep a track on the activity and purchase of its customers. For the incorporation of these 1-click purchase, secure credit card payment, recommendation system, and interactive searching system, Amazon should need to invest in this new system. There is an immense need to establish cost goals for the acquisition of these systems in Amazon. Management of Amazon should need to ensure that they have financial resources to incorporate these information systems. Amazon should need to spend almost 800 million dollars to establish and incorporate these programs into its current processes. Design-to-cost should need to be utilized by Amazon to reduce cost in the design phase of this project. It is essential for Amazon to establish an effective design for this recommendation system in order to save money. Evaluation of recent business and sales activities of Amazon ensures that it has sufficient financial resources to introduce these new systems. After designing and establishing these information systems, it is necessary to train employees to utilize them. Training of employees before incorporating these information systems is beneficial to make them use-to with these systems. Amazon should need to look for its manpower to ensure that it has sufficient physical resources to introduce these new systems. IT department of Amazon is highly efficient, which ensures that it will be easy to train these employees. After proper training of employees, Amazon should need to incorporate these new information systems. It is necessary to analyze the performance-period requirements of these information systems. Amazon should need to completely incorporate these information systems in 8 months.
Conclusion
In a nutshell, incorporation of new information systems such as 1-click purchase, secure credit card payment, recommendation system, and the interactive searching system is necessary for Amazon to improve online trafficking and sales. Amazon should need to utilize these information systems to provide ease for its customers. A critical analysis of Amazon ensures that it has sufficient physical and financial resources to incorporate these information systems.
References
OBrien, J.A. and Marakas, G.M., 2006.Management information systems(Vol. 6). McGraw-Hill Irwin.
Smith, B. and Linden, G., 2017. Two decades of recommender systems at Amazon.com.Ieee internet computing,21(3), pp.12-18.
Wadley, D.K., Hewlett Packard Development Co LP, 2006.Retail consumer information methods and retail consumer information system. U.S. Patent 7,021,536.
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