NORTH SOUTH UNIVERSITY

Department of Management
Spring 2025
MIS107- Information Systems & Computing
Group Project
Section: 38
Group: “Error-404”
Topic- ‘IS Use in Business’- Amazon.

Date: 19/04/2025

Submitted To:

Md. Mahbubul Alam,PhD

Professor, Sher-e-Bangla Agriculture University, Dhaka.

Submitted By:

Kashfia Zannat – 2411871630

Faiza Pathan Arpita – 2413090630
Munshi Refat Hossain – 2232654030
Sidrat Ul Muntaha – 2423018627
 IS Use in Business: Amazon

Amazon is an American e-commerce and cloud

computing company based in Seattle, Washington,
founded by Jeff Bezos in July 1994. Amazon is the
world’s largest Internet retailer measured by both
revenue and market capitalization, and is the second
largest in total sales volume after China’s Alibaba
Group. Amazon initially started life as an online
bookstore, however, Bezos recognized that the only way to succeed online was to grow big and
fast! Taking full advantage of the impending Internet boom, Bezos rapidly expanded Amazon’s
product offerings and services over time. Today, Amazon sells everything from books to
television sets and car parts to outhouses. It has become a one-stop shop for almost any product,
and a range of other business ventures, such as Amazon Web Services, provide a range of other
solutions to industry-leading companies and even government agencies such as the U.S. Central
Intelligence Agency (CIA).

Amazon’s Products:

Amazon contains 350 million product lines include books, music CDs, videotapes, and software,
apparel, baby products, consumer electronics, beauty products, gourmet food, groceries, health
and personal care items, industrial and scientific supplies, kitchen items, jewelry and watches,
musical instruments, sporting goods, tools, automotive items and toys/games.

 Amazon.com (E-commerce Platform):

A global online marketplace with an
extensive range of products and
features, including Prime shipment,
Fulfillment by Amazon (FBA), and

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 customized suggestions. It is a key part of Amazon's ecosystem, combining with Prime
Video and AWS.
 Amazon Web Services (AWS): This cloud computing part of Amazon offers pay-as-you-
go, scalable services for networking, storage, computing, and many other areas. For users
ranging from startups to governments, features like auto-scaling help optimize cost and
performance.
 Amazon Prime Video: A streaming service offering a subscription model that offers live
events, licensed content, and Amazon Originals. With 200 million subscribers, it is the
second-largest streaming service in the world and may be viewed by itself or through a
Prime membership.
 Amazon Games: Amazon’s gaming division focused on publishing and developing video
games in-house. It represents the company’s investment in interactive entertainment and
digital content.
 Amazon Studios: Amazon’s content production arm that creates TV shows, films, and
comics, often based on user submissions and feedback. Its content is primarily distributed
through Prime Video, with partnerships like Warner Bros. enhancing its film production.

Amazon’s Organogram:

Although the Amazon.com service and

experience were and still are at the core of
the company’s success, the characteristics of
the company’s organizational structure also
play a huge role. The thing about Amazon’s
organizational structure is that it enables
extensive top-down control over global e-
commerce operations. This is ideal because
the company has various operations in
different business areas.

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Amazon’s Business Process and Digital Strategy:

Amazon's digital strategy, which emphasizes customer obsession, ongoing innovation, and
utilizing data and technology to improve customer experiences and boost efficiency, is intricately
linked to its commercial operations. This entails utilizing AI, machine learning, and data
analytics to create new products and services, enhance operations, and customize
recommendations—all while keeping a laser-like focus on customer happiness.

 Customer-Centric Approach: Since the very beginning, Amazon has made it a point to
“focus relentlessly on its customers.” This is how Jeff Bezos puts it, “We see our
customers as guests to a party, and we are the hosts. It’s our job every day to make every
important aspect of the customer experience a little bit better. Customer review, one-click
ordering, personalization, customer service, easy returns, etc., are the key initiatives taken
by Amazon to prioritize their customers.
 Continuous Innovation: Amazon reflects a strong track record of backing emerging
technologies, even when there’s a higher likelihood of failure. Amazon demonstrates
what many may call “an extreme tolerance to failure.” Jeff Bezos is even willing to joke
about these missteps. “I’ve made billions of dollars in failures,” he said at a conference in
2014. “Listing them would be like a root canal without anesthesia.”
 Order Management System: What sets Amazon apart from other retailers is its advanced
fulfilment and delivery networks. The company has invested heavily in technology and
infrastructure to make its operation faster and more reliable, which has helped it to offer
customers a range of delivery options, including one-day and even same-day delivery in
some areas.
 Warehouse Management System: The use of robotics and automation in warehouses has
increased the speed and accuracy of order fulfillment. The company has also developed
its own logistics network, which includes a fleet of planes and trucks, as well as
partnerships with major shipping carriers like UPS and FedEx. In addition to its focus on
technology and infrastructure, Amazon’s investment in innovative new store formats,
such as its Amazon Go stores, is a further step towards making the shopping experience
faster and more convenient for customers and reducing costs for Amazon.

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  Long-Term Thinking: One of the hallmarks of Amazon’s business strategy is its long-
term thinking. While many companies focus on short-term profits and immediate returns,
Amazon takes a more patient approach. The company is willing to invest in new
initiatives that may take years to pay off, such as its investment in AWS, a business that
initially struggled to gain traction but has since become one of its most profitable
ventures.

Key IT systems of Amazon:

 Amazon Web Services (AWS) - Cloud Computing

System. Powers both internal systems and external
clients. Includes EC2, S3, Lambda, RDS, Dynamo
DB, etc.
 E-commerce Platform Systems- Retail Website & Mobile App Backend. Handles product
listings, user accounts, checkout, and recommendations.
 Inventory Management System (IMS) - Tracks stock levels, forecasts demand.
 Warehouse Management System (WMS) - Controls warehouse operations and
automation (e.g., robotics).
 Transportation Management System (TMS) - Plans and tracks deliveries and shipping
logistics.
 Customer Relationship Management (CRM) - Manages customer interactions, support,
and service experience. Collects, manages, and displays customer reviews.
 Order Management System (OMS) - Handles orders from placement to delivery and
returns. Supports multiple payment methods, fraud detection.
 Business Intelligence Systems- AWS Redshift, EMR, Quick Sight, etc., used for sales
analytics, customer insights, operational performance. Used for recommendations,
personalization, and forecasting.
 Identity & Access Management (IAM) - Controls access to internal systems. Includes
encryption, DDoS protection, and monitoring.

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Types of IS that Amazon is currently using:

 Transaction Processing System (TPS): Daily operations like order processing, billing,
inventory updates, and payments are managed by Amazon’s TPS. It supports smooth
operations and customer satisfaction by ensuring quick, accurate, and efficient
transactions at the operational level.
 Customer Relationship Management (CRM): To improve customer satisfaction and
loyalty, Amazon's CRM system handles customer data, communications, and support. It
functions at the managerial level and might include customized tools and Salesforce.
 Enterprise Resource Planning (ERP) System: Amazon’s custom-built ERP system
integrates key functions like finance, HR, inventory, and procurement to improve
efficiency. It streamlines processes, reduces data redundancy, and enhances
communication across departments, supporting smooth and fast decision-making.

 Supply Chain Management (SCM) System: The

Amazon Fulfillment System uses cutting-edge
technology, such as Kiva robots, to manage
shipping, warehousing, and inventory. This
enterprise-level SCM system enables speedy and
efficient order fulfillment, allowing Amazon to
deliver products globally with speed and accuracy.
 Decision Support System (DSS): Business
intelligence technologies are used by Amazon's DSS to analyze trends, consumer
behavior, and sales. It gives managers access to real-time data and forecasting tools to aid
in decision-making, allowing quick reactions to shifts in the market and simplifying
business operations.
 Knowledge Management System (KMS): To store and distribute organizational
information, Amazon's KMS combines internal Wikipedia and AI capabilities like Alexa.
It encourages teamwork, education, and simple access to important information,
supporting creativity and effective decision-making throughout the business.

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  Executive Support System (ESS): Amazon's ESS gives top executives a real-time
knowledge of financial metrics and critical performance indicators through management
dashboards and reporting tools. By helping leadership in monitoring progress and
evaluating risks, it helps strategic decision-making.

Key Strengths and Weaknesses of IT Strategies and Business Processes:

Strengths:

 Decision based on Evidence: The IT strategy at

Amazon is highly integrated with business
intelligence systems, which enable real-time
analytics and predictive modeling for customer
behavior trends and inventory optimization.
 Automation and Scalability: IT systems such as AI
and Machine Learning have enabled the seamless automation of logistics and
operations. It can achieve efficiency at an enormous scale.
 Customer Experience Personalized: CRM tools and recommendation procedures help
in ensuring customer satisfaction by personalizing experiences that are individualistic.
 Cloud Infrastructure: Amazon Web Services (AWS) offers unparalleled scalability
and resilience, thus facilitating Amazon's growth along with being a key revenue
stream.
 Integrated Supply Chain Management: IS is not operationalized with great logistics
systems so as to minimize delivery times and reduce operational costs, creating great
loyalty in customers.

Weaknesses:

 Related to Cybersecurity and Data Privacy: With bulk storage, the issue becomes how to
maintain the sensitive.
 Noting Ethical Side: Put bluntly, a great deal of automation could be suspected of being a
tool for job obliteration and for promoting obscurity in AI operations.

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  Maintenance Cost of IT Infrastructure: Keeping track of these enormous expenses is a
terrible affair in managing and upgrading its IT system to stay abreast of modern
advancements.
 Integration Order: All of this will accomplish perfect integration through all of its
Information Systems gears, which becomes harder as Amazon enters new markets.

How IT Systems Help Achieve Competitive Advantages:

 Heightened Operational Efficiency: Robotic

automated warehouse management reduces
errors and operational time. Delivery
systems are optimally streamlined for faster
shipping, a major competitive edge in e-
commerce.
 Better Customer Engagement: AI-based
recommendations increase sales by
presenting products according to individual preferences. Real-time analysis of customer
feedback encourages improvement on an ongoing basis.
 Global Scale: AWS provides scalable solutions for hosting, data storage, and
computation, allowing Amazon, while creating a rapid expansion, to support other
businesses.
 Innovation Leadership: Driving smart automation, the company utilizes cutting-edge
technologies such as Alexa and IoT devices, thus establishing itself as the trailblazer.
 Cost Proficiency: Predictive analytics and supply chain optimization will eliminate waste
and cut down on operating expenditure.

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Challenges of IS implementation and use in business processes:

 System Integration Complexity: Amazon uses

different types of systems (e.g., ERP, CRM,
SCM, and AI). Integrating them smoothly can
be challenging due to different architectures,
data formats, and technologies. It can cause
data inconsistency, delays in decision-making,
and process inefficiencies.
 High Implementation and Maintenance Costs:
Developing, deploying, and maintaining systems like AWS, AI models, and internal tools
require huge financial and human resource investments. It increases operational costs and
demands continuous funding.
 Data Security and Privacy: Handling massive amounts of customer and business data
comes with risks like data breaches, cyberattacks, and compliance issues. It could
damage customer trust and lead to legal consequences.
 System Downtime and Reliability: With operations running 24/7 globally, even minor
system downtimes can lead to order delays and lost revenue. That affects customer
satisfaction and business reputation.
 User Resistance and Training Needs: Employees and partners may resist new systems or
struggle with using advanced tools like AI dashboards or ERP modules. It can lower
adoption and reduce system effectiveness without proper training.
 Scalability Challenges: As Amazon grows, its systems must scale to handle more users,
data, and services without lag or failure. It requires ongoing upgrades and optimization to
meet demand.
 Rapid Technology Changes: Tech evolves quickly. So Amazon must constantly update or
replace systems to stay competitive and innovative. It causes impacts like shortening
system life cycles and demands agility in adoption.

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Opportunities for IS use in Amazon:

 Invest More in Personalization Technologies: Increase customer satisfaction and sales by

using modern AI and machine learning to provide more personalization throughout the
entire customer journey, from search to checkout.
 Expand Automation Across Operations: To try
to cut costs and improve speed and accuracy,
fulfillment centers, logistics, and customer
service have begun to utilize robotics and
automation.
 Strengthen Data Analytics for Strategic
Decisions: Improve decision support systems to
make better, quicker decisions by getting real-
time information about market trends, customer
behavior, and operational performance.
 Scale Cloud Infrastructure for Global Growth: AWS facilitates a smooth transition into
developing markets while keeping central control and ensuring local performance and
safety.
 Drive Innovation with AI-Powered Services: Keep creating innovative products like
voice commerce, drone delivery, and Amazon Go while using IS to start the retail digital
revolution.
 Optimize the Supply Chain with Smart Technologies: Reduce delivery delays, boost
supply chain transparency, and improve inventory management using real-time data and
predictive analytics.
 Integrate Sustainability Tracking into IS: To support green activities, cut waste, and
improve corporate accountability, integrate environmental effect tracking into current
systems.

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Amazon is a global leader in e-commerce and cloud computing, offering products like
electronics, books, and apparel, along with services such as Amazon Prime and AWS. The
company’s organizational structure supports innovation and rapid decision-making, focusing on
customer satisfaction and operational efficiency. Amazon utilizes key IT systems, including
ERP, CRM, SCM, WMS, OMS, and AWS, which enhance automation, scalability, and
personalized service. While Amazon’s IT strategy boasts strengths such as real-time analytics
and system integration, it faces weaknesses like high costs and complex system maintenance.
These systems provide competitive advantages by optimizing supply chains and improving
customer experience. Challenges include data privacy concerns and system integration
complexities, but opportunities lie in expanding AI, automation, and sustainable technologies.
Strategic improvements should focus on cybersecurity, reducing complexity, and enhancing
employee IT training.

References:
http://Amazon.com

https://amazon.jobs/content/en/job-categories/operations-it-support-engineering
https://en.m.wikipedia.org/wiki/Timeline_of_Amazon_Web_Services
https://news.yahoo.com/amazon-prime-has-200-million-members-142910961.html
https://businessmodelanalyst.com/amazon-swot-analysis/

https://www.latterly.org/amazon-swot-analysis/

https://bstrategyhub.com/swot-analysis-of-amazon-amazon-swot/

https://www.aboutamazon.com/about-us

https://en.wikipedia.org/wiki/List_of_Amazon_products_and_services

https://www.linkedin.com/pulse/challenges-faced-amazon-implementing-rto-mandate-due-
workspace-mgelc

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