Abstract

E-commerce organization s and companies try to achieve the goals and objectives by utilizing the system and process of information and data collection, especially about customers and the products they are purchasing. This study highlights the same process of utilizing the data and information related to customers and their shopping trend in Amazon. Amazon uses the management information system, as an instrument to extract the data and related information, in order to attain the benefits of management. This study also asses the best management information systems of Amazon, their uniqueness and effects on the overall performance of the organization. At the end of the study, some recommendations for the betterment of the management information system at Amazon are given. The suggestions of integrating new systems in management information system will be helpful for Amazon in long run.

Introduction

The e-commerce industry is one of the topmost emerging industry of the modern era. The relationship of e-commerce and data is the must-have. Data and information related to customers, products, and trends are of core importance for an e-commerce organization. Every e-commerce organization not only collect these data by using and developing custom methods and processes but also uses it for increasing its capabilities in the industry. This critical review determines the use of these data set especially the tools in collecting this type of information. This study focusses on the MANAGEMENT INFORMATION SYSTEM and its application in context with the Amazon, one of the leading e-commerce organization. Especially to study the best management information system, used by Amazon in its business. Exclusiveness of MANAGEMENT INFORMATION SYSTEM, in terms of technology, the systems used by Amazon and the process of usage of that system, is highlighted carefully throughout this report. Furthermore, the whole process is studied form the very start of the user interaction with the e-commerce website of the Amazon. At the very end of the study, some suggestion and recommendations will be given in order to effectively and efficiently promote the current MANAGEMENT INFORMATION SYSTEM of Amazon. These suggestions are derived from the analysis of the information collected qualitatively and on the basis of the possibility of the implementation of the recommended tactics.

MANAGEMENT INFORMATION SYSTEM is beneficial for the organization in multiple ways. The very first way is the integration of MANAGEMENT INFORMATION SYSTEM into the organizational system in order to the efficient and effective progress of the organization in terms of the interaction in-between the information and the clients of the organization. The operation and strategic level decisions of an organization are affected by MANAGEMENT INFORMATION SYSTEM. The best example of affection is the MANAGEMENT INFORMATION SYSTEM in Amazon that displays the correct alignment of the information management system with the objectives and goals of the organization. The best strategy of Amazon is the separation of the re-processing (i.e. e-commerce) part of its system from the system integrated into its order inventory. At the very level of the world, MANAGEMENT INFORMATION SYSTEM is found to be playing important role in terms of the development of an international company (Weber & Byrd, 2008). The use of MANAGEMENT INFORMATION SYSTEM in Amazon as an exciting instrument so that the management activities of the company can be handled successfully. Similarly, Amazon has ensured the diversification of the services provided to the customer by the Amazon while using their MANAGEMENT INFORMATION SYSTEM.

There are multiple processes going in an organization. The role of the resource management system, usually the enterprise one is important for the process of integration and collection of data. The ability to integrate internal data along with the external information related to an organization is found to be the uniqueness of ENTERPRISE RESOURCE PROGRAM. One of these integration systems that is found to be working accordingly to the needs of stakeholders is the e-commerce one. The use of multiple software by the organization, since the key tool for controlling the whole life cycle of software is the software configuration management system (Bajaj & Nag, 2005), and their continuous upgradation is required due to the needs of the stakeholder. Another processor system working in an organization is the CUSTOMER RELATIONSHIP MANAGEMENT system. This system also widely required in e-commerce organization, helps the organization in providing them technically as well as streamlining services for the information of market and customers. The successful implementation of these systems in MANAGEMENT INFORMATION SYSTEM has displayed the importance and significance of an organization in collecting and using data and information for the efficient and effective performance of the organization.

Discussion

Amazon is one of the leading e-commerce retailers of America, that is working internationally. Another main service provided by Amazon alongside its e-commerce relationship is the cloud computing service. The MANAGEMENT INFORMATION SYSTEM and CUSTOMER RELATIONSHIP MANAGEMENT are two of the main technologies that run the overall business program of the American giant. The software architecture of the company is based on the foundation of Linux and is developed in such a manner that million of queries alongside the operations and other customer related issues can be handled by the technology used. The system at Amazon has the ability to handle issues of more than one half of all the seller volume of the whole world. According to Jordon, (2009), the company is found vulnerable in the security of the storing of information related to the credit and debit cards of thousands of its customers daily. The information related to the customer is stored to analyze the trends of customer purchases so that the interactive and customer related marketing and advertising campaigns can be run. This data is stored by using the CUSTOMER RELATIONSHIP MANAGEMENT system of the enterprise resource model of Amazon.

The true reflection of MANAGEMENT INFORMATION SYSTEM of Amazon can be observed in its sales and marketing strategy. Starting from the single level, and ending at the multi-level. The sale strategy of the amazon transit to e-commerce. Initially, the organization was interested in business to business and business to customer model of operation and selling. Modern-day advancement in the e-commerce system, however, made it favorable for Amazon, to focus more on the business to customer model. These advancements also forced Amazon to review its IT systems and to make upgradation and customization to them, in order to respect the feedbacks of customers and to make them the part of their business strategy. The integration of customers for direct sales is another example of the IT system growth in Amazon Jordon, (2009).

Management Information System

After its foundation in 1995, the online bookshop, Amazon used two different MANAGEMENT INFORMATION SYSTEM. One for the order placement while the one for the website itself. The idea behind the use of these two systems is to enhance the overall security of Amazon. The information at Amazon initially was stored at Digital Alpha Servers in its early days. By the end of 2000, the organization shifted its entire information system to the Oracle. Beside the database change, the new shift also contains new information analysis system and logistics management system. The supplier communication system was adopted through a business to business management system by Exelon. Millions of customers and thousands of products at Amazon are controlled by the in-house management system of Amazon, i.e. simple storage system and Amazon web services.

The MANAGEMENT INFORMATION SYSTEM of Amazon is made up of different sub-systems. Some of them are as follows:

Amazon Web Services

Through the passage of time, the Amazon web services have turned in to a worldwide platform for individual retailers in order to sell their products easily. This robust, reliable and scalable service of Amazon has made its web service as one of the global dominants of its type. The productivity and scalability of Amazon web service can be calculated by the thousands of its customers, that are searching every second, for thousands of products. Similarly, the reliability and security can be observed by the thousands of orders placing in every second. The CUSTOMER RELATIONSHIP MANAGEMENT system of Amazon handles information through customer searches and analyze them to design the customer-based marketing and sales strategy. What customers are buying and what they are searching is continuously analyzed by MANAGEMENT INFORMATION SYSTEM to provide the related services.

Smart Analysis Search

Another key component of the Amazon MANAGEMENT INFORMATION SYSTEM is a smart analysis search. This system is designed for tracking down the fraudsters. The pattern in search is analyzed by this system in order to detect fraudsters. It is also found helpful for customers in terms of providing and personalizing the customer search services so that they can be served effectively (Kantardzic, 2011).

Elastic Cloud Computing

Elastic cloud computing or EC2 is another service provided by Amazon. This service is specially designed for web developers working with web computing. This service help developers in creating their own system environment similar to the Amazon. It also gives complete control over the process and action of computing. The ability of ELASTIC CLOUD COMPUTING to store more data and conversing time, without starting a new server is one of the key advantages of ELASTIC CLOUD COMPUTING (Janice, 2011). An image of the Amazon machine, instead of starting a new server is the way ELASTIC CLOUD COMPUTING uses. The prominent and most striking feature of ELASTIC CLOUD COMPUTING is the pay for what you use. It also provides the opportunity for customizing the application up to the need of the developer. 

Simple Storage System

Inside the ELASTIC CLOUD COMPUTING, there are other systems for management such as simple storage system. The simple storage system is an online storage system. This system provides the end user with an opportunity of saving, retrieving and manipulating data at any location at any time. Customers start with searching to find out the product they are willing to buy. The search of customers is controlled by the search agent, Amazon’s model for searching and surfing. The information is retrieved from the surf results of the customer by the use of data mining. The mined data is then used to bring out the data stored in the central database as the suggestive offers for customers. In the case of customers who are willing to sell their products, a description of the product along with the image of the product is required to be uploaded to the central database.

Auction Model

In the case of the consumer to consumer and business to business transactions, the model used by Amazon is the brokerage model. A fee, calculated according to the product, is charged by Amazon against each product sale. Auction model is another model used by Amazon in the consumer to consumer and business to business transactions. The information related to the bidding is used to provide customers with the most relevant results based on their searches. The term “customers who have bought this product/book have also bought” is one of the key strategies of the company that reflects the uniqueness of Amazon in terms of competency in providing the most similar products based on the search analysis of the customer.

Wish List

The other service of Amazon, as an e-commerce website is a wish list. Customers are provided with an option of adding as much as the number of products they are willing or wishing to buy in the future. The CUSTOMER RELATIONSHIP MANAGEMENT system allows customers to view and review the products their peer at Amazon have already bought. Users can store the product for feature purchase. All of this data and information of the products and choices in the wish list are stored under the MANAGEMENT INFORMATION SYSTEM infomediary model. An internal social media platform is also developed and integrated by Amazon so the customers can easily interact with other peers at the e-commerce platform.

Search History

Another service related to e-commerce is search history recommendations. the search terms and results of customers at Amazon are saved so that they can review their search history for selecting similar products. This feature was released in June 2005, in order to make the MANAGEMENT INFORMATION SYSTEM of Amazon better. Similarly, the data entered during sign up process is also used to help in new searches. Whenever a previous client or user enter the Amazon website, he or she is offered with a list of products recommended for him or her.

Infomediary Model

Infomediary model of Amazon is used in predicting products at multiple levels. It works in coordination with other sub-systems of MANAGEMENT INFORMATION SYSTEM of Amazon. The wish list and the search history are the examples of those sub-systems. According to Allen (2008), Infomediary model of Amazon is criticized for collecting the information and data related to customers, especially the personal and purchase information. This data, on the other hand, plays a vital role in suggestion, based on the search behavior of the client, providing him or her with the best experience of shopping at Amazon e-commerce. Personal preferences are also asked and saved at the very beginning of sign up so that the advertisements and popup can show data relevant to the keywords selected by the customer.

Acquisition of Personal Data and Information

Amazon provides its customers with multiple options for shipping and checks out. These modes are based on the data gathered from customers at different times. The information technology used by Amazon to save and secure this type of data is consist of middleware, networks, groupware, and web servers. These four technologies provide the foundation of the whole MANAGEMENT INFORMATION SYSTEM of Amazon. The enterprise systems on the other hand attached to the MANAGEMENT INFORMATION SYSTEM are Human resources, accounting, and logistics. These four technologies and three enterprises system of Amazon are interconnected with different rational database systems (Bryce, 2006).

Shipment Address

The most important thing in an online purchase is the address used for the shipment. Customers are always asked about the physical address where the shipment has to be delivered. The information related to the shipping address is asked and saved at the time of sign up. The retrieving of shipping address, by customers, while checking out a purchased product helps them save the time in entering the address again. In the case of multiple shipping addresses, Amazon gives its customers a benefit of saving multiple addresses with a different name. the information related to the shipping address is used by the logistic department of Amazon in order to the timely delivery of the products. A different option for selecting the shipping modes are available for the users of Amazon.

Payment System

The credit and debit card information of the customers and the sellers is controlled by the payment processor of Amazon. The information placed by the customers related to the credit or debit card is passed through the secure socket of Netscape Secure Commerce Server to the Amazon servers so that the information related to the banking can be stored safely. The database storing this type of information has no direct connectivity with the internet so that the risk of theft can be minimized. In order to increase the further protection and confidentiality of customers information, the company also provide payment solution with partially online and partially through telecommunications. For increasing the trust of customers in the company, legal texts such as privacy policies and end-user agreements are also shared with customers while communicating (Chaffey, 2006).

Other Integrations

Some other integrations such as the logistic tracking and incentive marketing are also the part of the MANAGEMENT INFORMATION SYSTEM of Amazon e-commerce.

Logistic Tracking

The client relationship management system of MANAGEMENT INFORMATION SYSTEM also has the integration of the tracking system. This tracking system allows users of Amazon to track their product at any time. The system works with the customer address system. Allowing users to enter into their accounts and to track right back the current status of their products using a special tracking ID given to them at the time of order placement (Haegele, 2001).

Recommendations

The overview of different aspects of the MANAGEMENT INFORMATION SYSTEM of Amazon shows the attention and curiosity of the company in entertaining its customers. Since the leading online retailer of America, Amazon still needs some key adjustments and amendments in its MANAGEMENT INFORMATION SYSTEM. Following are some of the recommendations and suggestions for the betterment of MANAGEMENT INFORMATION SYSTEM of Amazon that indirectly will affect the productivity and efficiency of the organization.

Integrating Social Media

 In order to best cope with the current trends in online business, the company needs to be integrating social media and vice versa. An enhancement in the collaboration of the information from the advertising is crucially required. Customers should be benefited by the MANAGEMENT INFORMATION SYSTEM while using their social networking accounts with the Amazon. This synergy with social media can be useful in terms of more data and information collection regarding consumer behavior. The MANAGEMENT INFORMATION SYSTEM of e-bay clearly indicates the need for this synergy with social media.

The integration of social media will also be helpful in understanding the peer behavior of the customer. The reviews, by friends at social media, will be of great help in building the rust among the users of Amazon.

Resorting of Products

One of the greater features that helps any e-commerce site to shoot up is the sorting feature. Providing a sorting option in the customer relationship system will provide customers with the greater user experience. Sorting in terms of price, recent and higher ranked products will promote the scalability of the MANAGEMENT INFORMATION SYSTEM of Amazon.

Data Mining

In order to enhance the customer-based marketing, Amazon needs to analyze and mine the data based on the geography and location of the customers and the products shipped to. The recommendations and suggestion of products, based on demographics can be a big potential for Amazon.

Similarly, the data mined can also be an aid to the sellers and companies doing business on Amazon. MANAGEMENT INFORMATION SYSTEM can be used for analyzing the best product on the base of search and shipped history (Goldsmith, 2002).

Artificial Intelligence and Virtual Assistants

The implementation and integration of virtual assistants and Artificial intelligence in MANAGEMENT INFORMATION SYSTEM is a greater tool for building trust with the end users. The use of Artificial intelligence along with virtual assistants can set the future of Amazon bright. In order to meet the challenges and demand of customers the e-commerce strategy of Amazon should be flexible (Goldsmith, 2002).

The integration of artificial intelligence and virtual assistants should not be limited to customers. It needs to be applicable and available for all stakeholders, as the integration should be in the whole MANAGEMENT INFORMATION SYSTEM.

The virtual assistants can be helpful in understanding the issues related to operations and logistics, A chat service can enhance the CUSTOMER RELATIONSHIP MANAGEMENT system, supply chain management system, and operation management at Amazon. Virtual assistants can cut the cost of the human resource while providing a good customer care (Weber & Byrd, 2008).

Bridging the Gap

The upgradation of MANAGEMENT INFORMATION SYSTEM at Amazon can also bring the interrelation between marketing and sales. The ENTERPRISE RESOURCE PROGRAM has taken Amazon to a greater height but in order to cope with the current trends and needs of customers, the integration of a knowledge-based management system in the current MANAGEMENT INFORMATION SYSTEM infrastructure is a must have (Lawfer, 2004). The proper dealing with customers by bridging the gap between the ENTERPRISE RESOURCE PROGRAM and CUSTOMER RELATIONSHIP MANAGEMENT can reduce the level of user’s dissatisfaction.

Conclusion

The report tries to understand the MANAGEMENT INFORMATION SYSTEM and its structure at Amazon. Amazon is the largest online retailer of America. The current MANAGEMENT INFORMATION SYSTEM infrastructure of Amazon has greatly developed according to the needs of customers, revolving around the CUSTOMER RELATIONSHIP MANAGEMENT and Web services, the MANAGEMENT INFORMATION SYSTEM at Amazon has almost every common features of an e-commerce. However, there are still a lot of places and systems that are recommended to be integrated into the MANAGEMENT INFORMATION SYSTEM of Amazon. The integration of these systems in MANAGEMENT INFORMATION SYSTEM will result in the greater flexibility and productivity of Amazon as a business organization and will also result in greater efficiency and effectiveness in terms of customer-friendly e-commerce retailer.

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