The Process of Information System in Amazon Expository Essay

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Updated: Feb 12th, 2024

Introduction

An information system refers to a combined assemblage of parts for acquiring, storing and processing information for use by various stakeholders in a particular setting. Organizations depend on information systems to undertake daily activities interact with clients, suppliers, and achieve a competitive edge in their particular industry.

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For instance, organizations use their websites to inform potential and actual clients about goods and services offered by the company. They also use information systems to carry out accounting processes and compensations among other things.

State corporations and ministries have adopted information systems to disseminate necessary information to citizens. Most companies sell their goods through information systems. Such goods include books, softwares, and electronic goods among others. This essay seeks to explore the use of information systems at Amazon.com

Background Information

Amazon.com, Inc. came into being on 28 May 1996. The company serves customers through its retail websites with a deep concentration on fair prices and convenience. The company grants programs to traders to sell their goods on its websites and programs that facilitate authors, music artists, and software developers to design and sell their products. The company has two units: North America and the International units.

The company comes up with websites through which millions of products reach the intended clients. Amazon.com offers Kindle devices through which writers publish their contents and attends to developers and all types of businesses through Amazon Web Services (AWS), Amazon Web Services affords entry to technology programs that works with every kind of enterprise.

Amazon.com offers lowest possible prices to its customers through daily product pricing and freight bids through their premium membership program, Amazon Prime. It accomplishes low price bids through improvement of its operating efficiencies.

The company has put in place user-friendly programs, which enhance quick and reliable services and prompt attendance to customers’ needs. The programs offered by Amazon.com enable traders sell their goods and services through its websites accessible through cellular phones and computers as well.

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North America unit consists of proceeds gained from retail selling of customer goods and services as well as membership subscriptions through websites localized in North America. The unit gains from sales realized from exports from www.amazon.com and www.amazon.ca.

International unit comprises of proceeds from selling retail client goods and membership fees through the company’s international websites plus sales realized from export sales to customers in the United States of America and Canada.

Business Process

Business process refers to activities aimed at realizing business goals. These activities fall into three distinct groups including decision-making, operations and competitive strategies.

The most basic type of function is operations support, At Amazon.com, information systems enhance business processes relating to operations through recording and preserving inventory information, information on continuing jobs, information relating to hardware repair and service, supply chain information, and other operations information.

Information systems process information into production timetables, production controllers, and systems for monitoring production. In addition, information systems gather information on human resources, compensation packages, work histories and other people-related information. Information systems convert such information into expenses information per employee and output per employee.

Information systems gather information on market, clients and their profiles, relationship with the company histories as well as information related to advertising. From this data, information systems process it to such items as elasticity reports, marketing schedules and sales activity information.

Information systems facilitate decision-making by management. They allow management to manipulate data and compare best scenario possible for implementation.

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Information systems used for decision-making range from spreadsheets to sensitivity analysis tools like Monte Carlo analysis, logit analysis, multi dimensional scaling among others. The management uses such tools to make decisions touching on new products, risk and sensitivity of the market.

Lastly, information systems offer strategic support function to increase their competitive advantage through a three- tier analysis. The first level relates to piloting programs set by the company to test their viability. The second level involves adopting one or two functions of the information systems while the third level involves building up a distinct competitive advantage.

Information systems at Amazon.com
Figure 1: Information systems at Amazon.

Improving Business Processes at Amazon.Com

Amazon.com should avoid cluttering of pages especially the product page. Too much cluttering distracts potential customer from the product displayed because of various advertisements on a single product page. Amazon.com’s homepage lacks contact information and forces a customer to search for such information.

The company should improve its homepage to include essential information relating to the company including contacts, profile and background information. In addition, the company should come up with alerts to inform customers when new products come up.

Conclusion

Amazon.com is doing some great work but there is room for more improvements to gain more customers and increase profitability. Information systems are dynamic and as such, Amazon.com must keep on upgrading them.

Works Cited

Econsultancy. ‘Ten things Amazon can do better online’. 2013. Web.

Fact-index.com. ‘‘. 2013. Web.

Make Assignment. ‘‘. 2013. Web.

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Reuters. ‘Amazon.com Inc (AMZN.O)’. 2013. Web.

Zwass, Vladimir. ‘‘. 2013. Web.

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IvyPanda. (2024, February 12). The Process of Information System in Amazon. https://ivypanda.com/essays/the-process-of-information-system-in-amazon/

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"The Process of Information System in Amazon." IvyPanda, 12 Feb. 2024, ivypanda.com/essays/the-process-of-information-system-in-amazon/.

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IvyPanda. (2024) 'The Process of Information System in Amazon'. 12 February.

References

IvyPanda. 2024. "The Process of Information System in Amazon." February 12, 2024. https://ivypanda.com/essays/the-process-of-information-system-in-amazon/.

1. IvyPanda. "The Process of Information System in Amazon." February 12, 2024. https://ivypanda.com/essays/the-process-of-information-system-in-amazon/.


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IvyPanda. "The Process of Information System in Amazon." February 12, 2024. https://ivypanda.com/essays/the-process-of-information-system-in-amazon/.

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