Information Systems at Amazon
Information system refers to any system that is made of people and computers that processes and deduces information. Since all the major companies no longer process information manually, information systems play a key supporting role which is similar to Human Resources and Finance. No wonder, many companies now have a Chief Information Officer (CIO) to take care of information systems of the organization. One of the major global companies that have successfully deployed Information Systems to further the organization’s objectives is Amazon.
Amazon is now one of the largest E-Commerce companies in the world with revenues of US$ 43.74 for the first quarter of the year 2017 (Balakrishnan 2017). The company is also a leading retailer in the world. The company started as an online retailer of books. But it has soon diversified into selling other items. The key to the success of the company was to collect data on consumers to whom it was selling books and utilize it selling other items (Forbes 2015). The company has tons of consumers’ information and cleverly utilizes it pitch the right products to the consumers.
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Mission of Information Systems at Amazon
The mission of information systems at Amazon is to create investments that are supported by its own information systems with the objective of creating value and increasing profitability.
Goals of Information Systems at Amazon
Being an ecommerce company, the main of information systems at Amazon is to sell as many products to its consumers and acquire new customers. Hence, the key goals of information systems at Amazon are:
- To acquire information that can help in cross-selling different kinds of goods to consumers.
- To use information systems as a management solution that can address different kinds of problems rather than seeing it as just a technological improvement.
Importance of Information Systems at Amazon
Information systems play a very important role at Amazon. The data that the company has collected on its consumers over the years conferred a unique competitive advantage to the firm. Many new entrants into the ecommerce business could not compete effectively with Amazon as they cannot build an information system which can rival that of Amazon. The company is constantly trying to improve its information systems by making fresh investments in the area. The information systems of the company has also helped Amazon build an effective customer relationship system with its consumers which can build a loyal customer base.
References
Balakrishnan, A 2017, Amazon sinks as revenue misses, guidance disappoints, CNBC, http://www.cnbc.com/2017/02/02/amazon-earnings-fourth-quarter-q4-2016.html.
Forbes 2015, Will Amazon Succeed in Selling Local Services? https://www.forbes.com/sites/knowledgewharton/2015/01/15/12032014-2/#3b9bc78b77b9.