NAME OF STUDENT: Nirmala Somwaru-Husain

STUDENT NUMBER: GY/00015

UNIT NAME: MANAGEMENT INFORMATION SYSTEM

UNIT CODE: MG5103

FACULTY NAME: DR. PARMESHWAR KISHORE

ASSIGNMENT TITLE: AMAZON.Com, INC

1
Contents

INTRODUCTION...........................................................................................................................................3

EXECUTIVE SUMMARY................................................................................................................................4

QUESTION 1: HOW INFORMATION INFLUENCED AMAZON’S GROWTH?....................................................5

QUESTION 2: DISCUSS THE ROLE OF NETWORK IN AMAZON’S BUSINESS.................................................8

QUESTION 3: ANALYSE THE COMPETITIVE ADVANTAGES OF AMAZON BECAUSE OF THEIR TECHNOLOGY

UPDATION.................................................................................................................................................10

QUESTION 4: HOW INTERNET INFLUENCED THE AMAZON BUSINESS......................................................12

QUESTION 5: DISCUSS THE DIGITAL MARKETING MODEL OF AMAZON....................................................13

QUESTION 6: WHAT ARE THE STRATEGIES OF AMAZON TOWARDS CLOUD COMPUTING?......................15

QUESTION 7: EVALUATE AMAZON’S MOVE TOWARDS SECURITY AND PRIVACY OF THEIR CUSTOMERS. 17

QUESTION 8: HOW BUSINESS PROCESS REENGINEERING HELPED AMAZON TO OVERCOME THEIR

FAILURE?...................................................................................................................................................19

QUESTION 9: DISCUSS THE ROLE OF FUNCTIONAL INFORMATION SYSTEM IN AMAZON’S BUSINESS

MODEL.......................................................................................................................................................20

QUESTION 10: EVALUATE THE ETHICAL AND SOCIAL ISSUES IN INFORMATION SYSTEMS OF AMAZON...21

CONCLUSION.............................................................................................................................................22

REFERENCES..............................................................................................................................................23

2
 INTRODUCTION
The management of a successful business is reliant upon superior quality information systems to
process all financial and organizational data. All businesses, whether large multinational
companies or small scale, should have access to an extensive pool of knowledge, data, and
information, to help them identify with customers’ needs, the business environment, and skills
and experiences that employees possess.
The manner in which a business obtains, disseminates, and utilizes this knowledge might be
crucial to its capacity to grow.
Amazon.com Inc, an American multinational technology company, is one such business which
focuses on e-commerce, cloud computing, online advertising, digital streaming, and artificial
intelligence to grow and establish its competitive advantage.
Jeff Bezos, founder, and executive chairman of Amazon launched this conglomerate on July
05,1994 in Bellevue, Washington, United States. It started out as an online bookstore but has
since evolved into many product categories earning the nickname, ‘The Everything Store”. It has
numerous subsidiaries and has significantly expanded its physical reach
(https://en.m,wikipedia.org/wiki/Amazon_company).
Even though Amazon’s provision of a wider variety of goods increased its attractiveness in the
market, it was Amazon.com’s service that helped it to develop a loyal following of customers
and ultimately became profitable. On the basis of customers’ purchasing history and information
from consumers of similar products, its personalization technologies suggested more products to
buy.
The following questions based on Amazon.com, Inc, are under consideration as part of this
assessment:
1. How information influenced Amazon’s growth?
2. Discuss the role of Network in Amazon’s business?
3. Analyze the competitive advantages of Amazon because of their technology updation.
4. How Internet influenced the Amazon’s business?
5. Discuss the digital marketing model of Amazon.
6. What are the strategies of Amazon towards cloud computing?
7. Evaluate Amazon’s move towards Security and Privacy of their customers.
8. How did Business process re-engineering help Amazon to overcome their failures?
9. Discuss the role of functional information system in Amazon’s business model.
10. Evaluate the Ethical and Social Issues in information Systems of Amazon.

3
 EXECUTIVE SUMMARY
Five essential characteristics are responsible for Amazon’s success, which makes it one of the
most thriving businesses in the world. Its service to customers and accessible shopping avenues
are fundamental contributory factors. With a market capitalization of over$1.005 trillion and
projected net revenues of $978.45 billion in 2022, Amazon has an innovative business model,
invests in technology, and is led by Jeff Bezos who has been instrumental in administrating the
company’s growth through the company’s long term vision, ‘ To be the earth’s most customer-
centric company; to build a place where people can come to find anything they may want to buy
online”, an ethos of innovation and retention of top talent (https://companiesmarketcap.com).
The company has grown exponentially since its modest beginnings as an online bookstore.
The business has stayed ahead of its competitors because of its openness to try out novel
technologies and business models. Its success is largely due to the investments it has made in
technology. To enhance its recommendations system and increase productivity, the organization
uses artificial intelligence and data analytics. The cloud computing subsidiary, Amazon Web
Services has grown to be a significant source of income (empirics.asia).
Also, Amazon has been able to make use of its extensive worldwide logistics network to provide
consumers in numerous nations with quick and dependable delivery.
Despite being one of the most successful multinational businesses, Amazon is under scrutiny by
Occupational Safety and Health Administration over working conditions inside Amazon
warehouses. Additionally, Lauren Rosenblatt, Seattle Times Amazon Reporter, 2023, indicated
that, ‘after years of scrutiny, over working conditions inside Amazon warehouses, federal
prosecutors are asking whether Amazon executives know about safety hazards and misled the
company’s safety records. This type of investigation places their ethical values in perspective.

4
QUESTION 1: HOW INFORMATION INFLUENCED AMAZON’S
GROWTH?
Module 1.1.2 states that ‘information around the world is being stored in thousands of computers
and shared by millions of people. Data base management systems (DBMS) enable large volumes
of business data to be captured, stored, updated, and accessed by the business fast and easily. It
delivers the most important resources, viz. the Management Information System to its managers,
to manage all business resources effectively’.
Data is defined as the collection of facts and statistics gathered together for reference and
analysis. It is stored in digital formats due to advancements in computer programmes that can
store large volumes of information (https://www.majesteye.com/why-dat-important-for-your-
business/).
It therefore requires all successful businesses to have a high-quality information system. An
information system is the amalgamation of many resources, such as software, hardware, systems
communications, and end users.
Businesses like Amazon utilize different types of information to help them to make informed
decisions. Information gathered is instrumental in the structuring of business policies,
procedures, or goals (Indeed Editorial, 2022). The inventiveness of Amazon is evident in its
financial performance. After Apple, it became the second public business in history to be valued
at $1 trillion in 2018, and it currently has the third-highest market valuation in the US, behind
only Apple and Microsoft. The web juggernaut's enormous success is distinct in its income.
Sales for 2020 increased to $386 billion from $280 billion in 2019 (BBC News,2018). The net
profit virtually doubled. Data access and information reaching consumers as a result of
connectivity to an expanded world wide web were credited with driving Amazon's expansion.
The expansion and success of Amazon have been significantly influenced by information. Since
its beginnings as an online book seller, Amazon has used information in a variety of ways to
promote growth and enhance its operations. By using the "everything under one roof" business
model, Amazon has prospered. Customers, however, frequently experience a sense of being
overrun by the sheer number of options available. In other words, they end up being data-rich
with a ton of possibilities but insight-poor, with little understanding of what would be the
greatest purchase for them (Marr, B., 2021).
To counteract this, Amazon builds and tunes its recommendation engine using Big Data obtained
from users as they explore. Amazon can forecast what you want to buy based on the information
it has about its consumers. Additionally, once the store is aware of what you might desire, it can
make persuading you to buy it easier, such as by suggesting other items rather than having you
browse the entire catalogue. This ultimately creates a superior experience for customers. Equally
relevant is the fact that the collaborative filtering model or predictive analytics serves as the
foundation for Amazon's recommendation system. Creating a profile of who you are and then
showing you things that individuals with similar profiles have bought amounts to making a
presumption about what you might want.

5
Furthermore, Amazon has invested heavily in artificial intelligence (AI) to further leverage the
power of information. For example, they use AI-powered algorithms to make product
recommendations, optimize pricing, and automate various business processes.
Whenever consumers use the website and make a purchase, Amazon is known to accumulate
information about them. The corporation keeps track of what customers’ search history and their
shipping addresses. Using this data, they may infer a customer's income level and determine if
they post reviews and feedback. Noteworthy is that Amazon was the trailblazer for incorporating
customer reviews into its marketing platform. This inherently provides valuable information to
potential customers and helps to build trust and confidence in Amazon’s products.
The collective usage of this massif data creates a "360-degree view" of each individual client,
which is then utilized to identify additional consumers who fall into the same precise customer
niche. This is the foundation of Bio Data-driven marketing (Marr, B., 2021). This data is further
used to personalize emails that can substantially enhance conversion rates and is instrumental in
changing the prices of products with the help of real-time analytics.
Amazon also uses data to streamline its Supply Chain and Logistical processes. Supply Chain
Optimization is the most effective strategy for boosting productivity. Amazon works with
manufacturers to track their stocks and connects with them to rapidly fulfil orders. To cut
transportation costs, Amazon uses big data to analyse the information that is currently available
and find the warehouse that is nearest to a client. Graph theory also aids in selecting the ideal
delivery time, route, and product groupings, which further lowers shipping costs (Pathak, R.,
2020).
Amazon uses information to augment price optimization. Information and statistics are utilized
to regulate product prices in order to draw in more customers and, ultimately, boost net profit.
Prior to data being used in pricing optimization, the prices of goods stayed the same regardless of
how frequently the website was visited. Prices today are constantly shifting. Data platforms that
evaluate a person's propensity to buy are one of the causes.
Prices are determined based on a variety of factors, including purchase history, estimated profit
margin, product availability, competition pricing, customers’ behaviour on the Amazon website,
and item preferences. As data is updated and analyzed, pricing of products often varies every 10
minutes. As a result, Amazon frequently gives discounts on top-selling items whilst making
bigger profits on less well-liked ones. The result for the business was an increase in annual
income of 143% from 2016 to 2019 (Pathak, R.,2020).
Amazon strategically changed and modified physical storefronts using information. The cashier-
free hotel store brand Amazon-Go is heavily reliant on information to function. The items that
buyers are allowed to buy are identified by sensors, and cameras make sure that customers are
unsuccessful in their attempts to shoplift. Although the company has not clearly explained how
and why it collects information about Amazon Go customers, it is probable the company may
use the data to better its stores (Marr, B.,2021).

6
It can be conclusively stated that information and data collection is the fuel of Amazon’s
marketing strategy. It helps the company to understand how customers react to their products,
and the content they have the most appreciation for. It fosters the targeting of advertising
campaigns based on interest, location, or demographics. Data and information ensure that a
company is performing optimally, and yields results and maximizes profitability.

7
QUESTION 2: DISCUSS THE ROLE OF NETWORK IN
AMAZON’S BUSINESS.

Amazon's business depends heavily on its network, which allows it to interact with clients,
suppliers, and partners all around the world. There are numerous ways in which network
supports amazon business. The core of Amazon's operations is its e-commerce platform.
Millions of products from tens of thousands of sellers are accessible to clients through this.
Amazon can provide a smooth shopping experience to customers all around the world thanks to
its platform, which is built on a massive network of data centres and servers.
Global reach has therefore been impacted by network. China, Japan, India, Mexico, and other
nations have all been added to the company's list of international markets. This has made it
possible for it to contact clients who might not have otherwise been able to buy its products and
to access new markets. Additionally, the business has been able to make use of its extensive
worldwide logistics network to provide customers in numerous nations with quick and
dependable delivery (empirics.asia)
Additionally, Amazon's network enables it to efficiently manage its supply chain, from sourcing
products to shipping them to customers. The business relies on a network of manufacturers,
suppliers, and logistical partners to make sure that products are offered when customers need
them.
Further, public cloud networking services are used by IT teams for a variety of tasks, including
traffic management and monitoring, enabling cross-environment communication, shielding
private data from prying eyes, and more. Amazon Web Services provides a variety of services to
assist users of the cloud in setting up and maintaining network connectivity and security for their
applications, both locally and remotely.
Amazon Web Services (AWS), one of the biggest cloud computing platforms in the world, offers
a variety of software and infrastructure services to companies of all kinds. This facilitates
companies with the scope to offer clients all over the world quick, dependable services, Amazon
Web Services depends on a massive network of data centres and network infrastructure. Between
Amazon Virtual Private Clouds and other resources that use AWS or on-premises software, this
Amazon networking service offers a private, secure connection. Data is protected from exposure
to the public internet via Private Link, which creates a private Internet Protocol (IP) address with
an elastic network interface in the subnet (https://aws.amazon.com)
For on-premises applications, Private Link connects with AWS Direct Connect to offer secure
access. Private Link assists in reducing some network security risks by preventing public
exposure, such as brute force and distributed denial-of-service attacks.

8
The distribution and logistics division of Amazon benefits from this. Products can be delivered
promptly and effectively to clients anywhere in the world thanks to Amazon's network of
warehouses and distribution locations. The business also leverages a huge network of shipping
partners, including trucking firms, shipping lines, and airlines, to transfer goods throughout the
globe. To augment its online platform, Amazon network supports digital media and
entertainment offerings. Inclusive in these are Prime Video, Twitch and Amazon Music. These
services rely on a vast network of content providers, data centers and delivery systems to provide
a seamless experience to its end users.
To augment its online platform, digital media and entertainment options are now supported via
the Amazon network. These include Prime Video, Twitch, and Amazon Music. To give its
customers a flawless experience, these services are reliant upon a huge network of content
providers, data centers, and delivery methods.
In general, Amazon's network is a fundamental part of its operations since it enables it to connect
with clients, partners, and suppliers globally. The success of the business is determined by its
capacity to use this network to supply high-quality goods competently.

9
QUESTION 3: ANALYSE THE COMPETITIVE ADVANTAGES OF
AMAZON BECAUSE OF THEIR TECHNOLOGY UPDATION.

According to surveys, one of the top three goals for senior leaders is innovation. But on a daily
basis the ‘delivery engine’ frequently commands senior management attention rather than the
discovery engine. This, however, is not applicable to Amazon.com, as the founder and CEO of
Amazon, Jeff Bezos, has worked out how to devote the majority of his time to innovation. His
main priority is to have the third quarter’s outcome baked in. He views his role as developing the
innovative Roadmap that will move the business from where it is to where he wants it to be.
Amazon has been a pioneer in e-commerce for many years, and one of the important factors in
their success is their commitment to technical innovation and continual updates. When Jeff
Bezos quit his job in New York and relocated to Seattle, he thought the internet was the future.
The advancement of their technology has given Amazon a number of competitive advantages.
Amazon is a pioneer in collecting, storing, processing and analyzing customer information and
this was used advantageously by the company.
Foremost, a smooth and customized consumer experience is now possible thanks to Amazon's
technological advancements. In order to provide individualized recommendations, focused
marketing, and quicker delivery times, they use data analytics and machine learning to examine
client behaviour and preferences. Furthermore, Amazon offers one-click ordering to make
shopping easier for users and keep them from visiting other websites. After your first order is
received, this proprietary function becomes immediately active.
This feature only functions if you are an Amazon regular and the website already has your
mailing address and preferred payment method (http://www.torontosom.ca/blog/how-did-
amazon-use-big-data-to-conquer-the-e-commerce-space).
Further to that, Amazon’s supply chain and logistics operations have been optimized thanks to
technological advancements, which has resulted in quicker deliveries and lower prices. For
instance, to boost productivity and speed up order processing, they deploy robotics and
automation in their warehouses. Amazon makes every effort to fulfil orders fast because they
recognize that prompt delivery of items is essential to maintaining customers' interest.
Coupled with the above, is the use of predictive analytics for targeted marketing which increases
the customer base, satisfaction, and loyalty. This is achieved through Alexa Voice Recordings.
The Echo and Echo Show virtual assistants from Amazon contain speakers and a camera. With
just a command, we may utilize it for a variety of things, such getting weather updates, daily
news, or placing an order (Pathak., 2021). These recordings are uploaded to Amazon servers and

10
help to improve the Alexa experience by enabling speech recognition, accurate message
processing and functionality.
Technological updation has enabled Amazon to have a competitive edge through pricing. Thanks
to advancements in technology, Amazon is now able to give customers more affordable prices.
They can provide cheaper rates than their rivals because, for instance, they utilize dynamic
pricing algorithms to modify prices in real-time based on supply and demand. Amazon can
readily track competition pricing as well as the amount of inventory that is available, which aids
them in determining the cost of goods. They adjust the prices of 2.5 million products every
day(http://www.torontosom.ca/blog/how-did-amazon-use-big-data-to-conquer-the-e-commerce-
space).
Amazon's technological advancements have made it possible for them to make data-driven
judgements and remain competitive. They monitor market trends, consumer behavior, and
product performance using data analytics, which enables them to make wise choices regarding
product creation, pricing, and marketing tactics.
Amazon also achieves competitive advantage through their Anticipatory Shipping model. The
licensed anticipatory shipping strategy from Amazon also makes use of massive data to predict
the products a consumer is likely to purchase, as well as when and where they would need to be
delivered. When a consumer orders something, the items are sent to a local distribution center or
stockroom where they are prepped for transport. Amazon employs predictive analytics to boost
its product sales and net profits while cutting down on delivery costs and time (Pathak., 2021).
Furthermore, Amazon introduced book recommendations from kindle highlighting. Following
the acquisition of Goodreads by Amazon in 2013, various Kindle features were merged with the
social networking service, which has about 25 million subscribers. As a result, users were able to
highlight words and make comments, which they could then share with their peers to debate the
book. This was advantageous to the corporation since it allowed it to periodically check the
highlighted words on Kindle to determine the readers' interests. Additionally, they recommended
eBooks to their clients and improved the reading experience by using this innovation
(https://www.analyticssteps.com).
Categorically, Amazon’s technological advancements have given them a number of competitive
advantages, including improved customer experience, streamlined business processes, innovation
in goods and services, aggressive pricing, and data-driven decision-making. These benefits have
allowed Amazon to keep up its dominance in e-commerce and expand its clientele.

11
QUESTION 4: HOW INTERNET INFLUENCED THE AMAZON
BUSINESS

The internet had an enormous effect on how Amazon developed and became successful. The
internet has impacted Amazon's business in the ways listed below:

CUSTOMIZED PRODUCT RECOMMENDATIONS: Amazon makes customized product

recommendations based on consumer browsing and purchasing habits. Sales have increased as a
result of people finding things they are interested in more easily. Amazon also uses these
recommendations to improve the quality of products they are offering and also to enhance
customers’ satisfaction.

CLOUD COMPUTING: The services provided by Amazon's web services division, AWS, are
available to businesses of all sizes. For Amazon, this has turned into a sizeable source of income
and helped it diversify outside of its primary retail business.

FULFILLMENT: The internet has allowed Amazon to develop sophisticated logistics and
fulfilment systems that enable it to deliver goods quickly and efficiently. By maintaining its
competitive advantage and increasing customer loyalty, Amazon has profited from this.

ONLINE RETAILING: Thanks to the internet, Amazon was one of the first major retailers to
offer products for sale online. Amazon online retail stores also cover store-based grocery
delivery and pick up. This made it possible for them to reach a bigger audience than they could
have with traditional brick and mortar businesses.

FEEDBACK FROM CUSTOMERS: One of the first online retailers to allow customers to
post reviews of the products they purchased on its website was Amazon. This improved
credibility with potential customers and provided Amazon with helpful input to improve its
services.

12
BETTER CUSTOMER SERVICE: A thriving business is aware that satisfied clients are loyal
ones. The internet has made it possible for businesses to gather data on consumer needs and
desires in an effort to consistently give the ideal product—an experience that no rival has yet
been able to match.

QUESTION 5: DISCUSS THE DIGITAL MARKETING MODEL OF

AMAZON
Amazon is the largest online store in the world based on sales and market value and this online
business has changed how people all over the world do business. The core of Amazon's digital
marketing approach is a focus on customer-centric, data-driven strategies that seek to personalize
each customer's experience. The following encompass Amazon strategy:

CUSTOMER DATA: Data about customers is gathered by Amazon from each contact a
customer has with its platform. Using this information, a thorough profile of each customer's
preferences, purchasing tendencies, and past is created.
PERSONALIZATION: Amazon uses this information about its customers to make each
customer's purchasing experience unique. This comprises tailored messaging, targeted
promotions, and product suggestions.
SEARCH ENGINE OPTIMIZATION: Amazon uses search engine optimization (SEO) to
make sure that its goods show up at the top of search engine results pages (SERPs) for pertinent
keywords. In order to achieve this, product listings must be optimized with pertinent keywords,
comprehensive product descriptions, and compelling product images.
PROMOTED SEARCH: Amazon also employs promoted search to increase website traffic.
This entails placing advertisements at the top of SERPs for pertinent keywords and placing bids
on those keywords. This entails developing social media strategies, managing influencer
marketing initiatives, and utilizing social monitoring tools to track client feedback.

SOCIAL MEDIA: Amazon interacts with customers and promotes its goods on social media-
 AMAZON ON FACEBOOK: On Facebook, Amazon India has 10 million followers. It
shares business news and advertisements on Facebook mainly. To publicize its Sale
Days, it employs effective promotion. By posting articles on a variety of subjects, it also
remains current (www.simplilearn.com).

 AMAZON ON TWITTER: A distinct strategy is being used by Amazon India to attract

new customers via Twitter. It keeps in contact with its followers by posting a variety of

13
 content, running promotions to attract new clients, and observing and starting trends.
With two million Twitter followers, it is one of the largest in its industry. It sounds less
like advertising and more like personal suggestions when using Twitter content.

 AMAZON ON YOUTUBE: The best part about Amazon's YouTube advertisements is

how quickly viewers pay attention to them. Amazon makes sure that all of its
advertisements are worthwhile and engaging. It typically accomplishes this by trying to
make the client feel special.

 AMAZON ON PINTEREST: Amazon has more than a million followers on Pinterest.

They use Pinterest to advertise their goods using a variety of topics to attract customers.

AFFILIATE MARKETING: Amazon has a strong associate marketing programme that

enables influencers and independent websites to advertise its goods. A commission is paid to
affiliates on purchases made as a result of their referrals.
EMAIL MARKETING: To interact with customers and advertise its products, Amazon
employs email marketing. This includes purchase updates, reminders for abandoned carts, and
tailored promotional emails.
Digital marketing is used by Amazon in a manner that is unmatched. They must continue
producing engaging content and distributing it in the best manner possible if they want to remain
competitive. To remain current, Amazon Marketing Strategy is regularly updated. Amazon's
marketing strategy has helped the company remain ahead of the competition in the challenging
retail market (www.simplilearn.com).

14
QUESTION 6: WHAT ARE THE STRATEGIES OF AMAZON
TOWARDS CLOUD COMPUTING?
IaaS is a service provided by Amazon through AWS that enables customers to hire computing
resources, like servers and storage, on a pay-per-use basis. As a result, clients do not need to
make sizable capital expenditures to change the amount of computing power they have available
as required.
After purchasing Zappos.com in 2009 and Quidsi in 2010, Amazon made the decision to begin
leasing out extra room on its computer network to other companies. The choice to purchase
Audible in 2009 gave the business the opportunity to increase the variety of digital media it
offered. As a consequence of this decision, the cloud infrastructure as a service (IaaS) industry
was created. They increased its cloud functionality and unveiled a novel way to consume books,
the Kindle E-reader. Consumers and E-book readers were the first to receive access to the ability
to view books online and in digital format. Later, the feature was added to Fire tablets, Fire Tv
Streaming media players, and other gadgets.
Amazon chose to rent out cloud space on its computer network to other businesses in order to
stay one step ahead of the competition by utilizing this cloud computing capability. Because of
the freedom and affordability of Amazon Web Services (AWS), companies like Juniper
Networks, Intuit, and Netflix decided to stop using their private data servers and switch
exclusively to Amazon Web Services.
Companies only pay for what they use with AWS. Building a storage system has no upfront
costs, and estimating utilization is not necessary. Customers of AWS only use what they require,
and their expenses scale automatically and appropriately.
AWS consists of a wide range of distinct cloud computing goods and services. Servers, storage,
networking, remote computing, email, mobile development, and security are offered by
Amazon's wildly successful business. AWS can be divided into three major categories: S3,
Amazon's storage system; EC2, Amazon's virtual machine service; and Glacier, a cost-effective
cloud storage service.
Because of its size and prominence in the processing industry, AWS has significantly outpaced
its rivals. According to a study from a reputable independent analyst, as of the first quarter of
2021, AWS held 32.4% of the market, followed by Azure (20%) and Google Cloud (9%)
(www.investopedia.com).
AWS's computers are spread across 81 availability zones. The division of these serviced areas
serves two purposes: first, to enable users to (if they so choose) restrict the geographic scope of

15
their services; second, to increase security by spreading out the physical locations where data is
stored. 245 nations and regions are covered by AWS overall (www.investopedia.com).
AWS IS SCALABLE AND ADAPTABLE
Start-ups and small businesses can see the clear advantages of using Amazon for their computing
requirements because AWS's cost is adjusted based on the usage of the customers. AWS actually
makes it easy to establish a business from scratch because it offers all the tools required for
doing so. Amazon offers affordable migration services for already-established businesses,
allowing for a smooth transition of your current system to AWS. AWS offers resources to help
with expansion as a business develops. Customers would not have to waste time debating
whether they should reevaluate their computing usage because the business model supports
flexible usage.
SECURITY AND RELIABILITY
A business hosting its own website or storage is doubtlessly much less secure than using
Amazon Web Services. Numerous data centres operated by AWS are presently spread out all
over the world and are strictly maintained. A catastrophe affecting one area would not result in a
permanent loss of data due to the diversification of the data centres.
By placing its data centres in remote areas and permitting access only for necessary purposes,
AWS has tried to keep them as obscure as possible. With Amazon's expertise in cloud services,
outages and potential attacks can be quickly recognized and quickly fixed, round-the-clock. The
data centres and all the data contained therein are safe from intrusions (www.investopedia.com).
.

16
QUESTION 7: EVALUATE AMAZON’S MOVE TOWARDS
SECURITY AND PRIVACY OF THEIR CUSTOMERS.

The privacy of how businesses use customer data must be honored at all levels because
customers own the information. Amazon ensures security and privacy in the following ways:
MULTIFACTOR AUTHENTICATION: Amazon is concerned with customers’ protection
and privacy and as such customers are often required to complete an additional step when they
sign in so that Amazon can ensure that only the customers and authorized users have access to an
Amazon account.
During sign in from a new browser, device, or location, or when a customer’s sign-in behaviour
appears different because cookies have been cleared, "multi-factor authentication" is required.
Customers might be prompted in one of the following methods to confirm a sign-in:
 Type in a six-digit verification passcode that Amazon will transmit to the email or mobile
number provided to Amazon.com.
 Verify the sign-in using a mobile Amazon programme.
 Provide an answer to a security query related to the account.
The website or mobile app will be used for each of these stages. If a customer phones the
customer service line for assistance, Amazon might ask the customer to prove his/her identity,
but Amazon will never get in touch with a customer first to request a password, verification
codes, or security question.
COOKIES: Amazon uses cookies and other identifiers to help the systems recognize customers
browser or device so that Amazon Services can be enhanced.

Amazon has designed its systems with security and privacy in mind by ensuring that they:

 Protect the security of customers personal information during transmission by using

encryption protocols and software.
 Follow the Payment Card Industry Data Security Standard (PCI DSS) when handling
credit card data.
 Maintain physical, electronic, and procedural safeguards in connection with the
collection, storage, and disclosure of personal customer information. Amazon security

17
 procedures mean that they may occasionally request proof of identity before disclosing
personal information.
 Their devices offer security features to protect them against unauthorized access and loss
of data. Customers can control these features and configure them based on needs. 

One significant change made by Amazon is a pledge to refrain from sharing customer
information with other businesses unless those consumers have given their consent first. The
spokeswoman claimed that although the company had previously reserved the right to purchase,
sell, and trade such information at will, it had never actually done so (Nash, K., 2000).
With privacy, security, and customers in mind, Amazon strategically designs its products,
services, and operating systems. Significant resources are spent on the hiring of professionals
whose primary goal is to guarantee the integrity and security of customer data, including bio and
financial records. In order to protect client data from loss, theft, and unauthorized access, there
are technological and procedural safeguards in place with respect to data mining, sharing, and
storage.

18
QUESTION 8: HOW BUSINESS PROCESS REENGINEERING
HELPED AMAZON TO OVERCOME THEIR FAILURE?
Business reengineering is the process of redesigning business procedures in order to accomplish
appreciable gains in productivity, efficiency, and performance. Business reengineering has been
used by Amazon to overcome setbacks and enhance processes in a number of ways. Some of
them include:
COST OPTIMIZATION: Amazon has prioritized cost reduction to preserve its edge in
competitive pricing. In order to use dynamic pricing algorithms, which change rates in real-time
based on supply and demand, they have redesigned their pricing strategies. Additionally, they
have redesigned their procurement procedures to bargain better prices with suppliers and cut
expenses.
STREAMLINED OPERATIONS: Initially, Amazon had trouble processing orders swiftly and
effectively. By redesigning their logistics and fulfilment procedures, they surmounted this
difficulty. To optimize their warehouse and supply chain operations, they implemented new
technologies like robotics, automation, and data analytics, which led to quicker deliveries and
reduced costs.
INNOVATION: To maintain competitive advantage competition, Amazon has consistently
made innovation investments. Their product development procedures have been redesigned to be
quicker, more agile, and customer focused. In order to rapidly spot new opportunities and
introduce new goods and services, they use data analytics to track market trends and consumer
behaviour.
CUSTOMER EXPERIENCE: Amazon's early efforts in customer service were frequently
inadequate, with slow response times and few support options. To combat this, Amazon
redesigned their customer support processes by integrating chatbots, self-service tools, and other
technologies that speed up response times and enhanced the customer experience.
The success of Amazon in conquering its setbacks and enhancing its operations can be attributed
significantly to business reengineering. They were able to optimize costs, innovate in product
development, and streamline processes while also improving customer experience. Amazon has
maintained its dominance in the e-commerce sector by using business reengineering techniques.

19
QUESTION 9: DISCUSS THE ROLE OF FUNCTIONAL
INFORMATION SYSTEM IN AMAZON’S BUSINESS MODEL.
Computer-based systems known as functional information systems (FIS) serve an organization’s
operational activities and business processes. To support its e-commerce operations, Amazon's
business model heavily depends on efficient information systems in the following ways:
INVENTORY MANAGEMENT: By providing real-time statistics on stock levels, demand,
and supplier information, Amazon's functional information systems support inventory
management. This makes it possible for Amazon to effectively manage their inventory levels and
ensure they have the appropriate products in stock to satisfy customers’ demand.
SUPPLY CHAIN MANAGEMENT: By enabling real-time visibility into the flow of goods
from suppliers to customers, Amazon's functional information systems facilitate supply chain
management. Amazon is therefore able to optimize their supply chain processes and cut
expenses.
CUSTOMER RELATIONSHIP MANAGEMENT (CRM): Amazon's functional information
systems support CRM by providing customer data, allowing Amazon to offer tailored
suggestions, focused advertising, and improved customer service.
E-COMMERCE PLATFORM: Amazon's e-commerce platform is a useful information system
that serves the company's primary operations, such as the processing of orders, payments, and
logistics for shipping. Amazon can manage high amounts of traffic and transactions because of
the platform's scalability and flexibility.
DATA ANALYTICS: Amazon makes extensive use of data analytics to understand consumer
behavior, industry trends, and product success. They gather data using functional information
systems, analyze it, and use the results to make choices about product development, pricing, and
marketing tactic
The business model of Amazon is fundamentally dependent on functional information networks
since these programmes assist the organization’s primary business processes, such as data
analytics, inventory control, supply chain management, and customer relationship management.

20
QUESTION 10: EVALUATE THE ETHICAL AND SOCIAL ISSUES
IN INFORMATION SYSTEMS OF AMAZON.
Digital streaming, cloud computing, artificial intelligence, and other fields are all areas in which
Amazon, a multinational technology company, works. Amazon is faced with a number of ethical
and social problems in information systems as a result of this extensive impact. The most
important ones are listed below:
Privacy: Amazon collects and utilises a tonne of customer personal information. Regarding how
Amazon gathers and distributes user data with outside organizations, in particular, this raises
privacy concerns.

monopoly: Due to its e-commerce and cloud computing market hegemony, Amazon has raised
questions about its market strength and potential for anticompetitive behaviour. Governmental
investigation and demands for the company's dissolution have resulted from this.
Employment practises: Due to the poor working circumstances and low pay for warehouse
employees, Amazon has come under fire for its treatment of these employees. Concerns have
also been expressed about the potential for exploitation of AI-powered systems used to track
staff productivity.

Being one of the biggest retailers in the world, Amazon's operations have a big effect on the
environment. This includes the energy used by its data centres and the carbon footprint of its
shipping and transportation activities.
Discrimination and bias: Amazon's AI-driven systems, including its facial recognition
technology, have come under fire for allegedly sustaining prejudice and discrimination against
disadvantaged groups. Concerns exist regarding the fairness of Amazon's algorithms in areas like
pricing and product suggestions.
Intellectual property: Amazon has been sued for copyright infringement, counterfeiting, and
trademark infringement in a number of cases.

21
Amazon confronts a broad range of ethical and social issues in information systems as a result of
its extensive influence and influence in numerous fields. The business must act to resolve these
problems and make sure that it conducts business in an honest and responsible way.

CONCLUSION

22
REFERENCES

23