E-Business Technology and Management Project. Research Paper

E-Business Technology and Management
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E-Business Technology and Management
Amazon was established in 1994 as an online bookstore, with Jeff Bezos as the founder. Originally, the company was established to sell books online, although the founder had a vision of eventually selling everything else via web (Vrethager, 2017). Currently, the company has been able to offer almost anything to customers through their online shop, a realization of the founder's vision. In addition, the company has been able to make acquisitions and has also been able to outsource their IT infrastructures to other companies.
Business Analysis of Amazon
Amazon offers a range of products for their online customers through their online shop, ranging from e-books, digital music, groceries, consumer electronics to providing solutions to other businesses. The main competitors are Alibaba, Wal-Mart, Netflix among others who offer digital products to online customers. The company thrives in service delivery and varieties for selection, which is their value proposition (Murphy & Narkiewicz, 2010). They ensure that their processes are reliable and effective, which maximizes the customer’s experience. The company has made sure that their website and IT infrastructures are effective enough, which has even reduced the number of calls made to their call center. The company monetizes their value proposition by providing their customers with one portal which allows customers to access all information without having to visit different websites for the same (Rosenberg, 2014). In addition, Amazon has been able to monetize their IT infrastructure by partnering with retailers that are trying to leave traditional ways of doing business by embracing e-commerce (Levinson, 2007). By doing so, the company has been able to utilize its resources and make more money in the process. In addition, the company has been able to provide their infrastructures to companies that are willing to venture into the e-commerce industry but lack the resources to invest in the necessary infrastructure. This outsourcing of their IT infrastructure has also been a major way of creating and monetizing value proposition for upcoming e-retailers who are willing to pay a certain amount for the services.
The business environment has allowed Amazon to make acquisitions since its inception, the first being Junglee Corp (Resca & Spagnoletti, 2014). In addition, the company, through its Amazon Web Service (AWS), was able to provide web search services to developers and people who own websites. These developments have been made possible by the global technological developments such as high-speed internet and the availability of devices such as mobile phones which have made it possible for consumers to acquire online services. In addition, the environmental situation that has forced companies to reduce their carbon footprint has been an opportunity for the company to offer digital products. The company has evolved from an online bookstore to a solution provider (Resca & Spagnoletti, 2014) through their Amazon Enterprise Solutions.
The ability to utilize information systems has enabled the company to facilitate communication with its suppliers by partnering with Excelon, who provides them with business to business (B2B) integration system (Imran, 2014). The B2B integration systems allow information to be transmitted and processed efficiently without delays. In addition, the company uses its Simple Storage Service (SSS) and the Amazon Web Service (AWS) to store customer information and can also communicate with their customers through the web service.
Importance of Information at Amazon
Once a customer access Amazon’s website, the company is able to receive the information and use it to improve the customer’s experience. Such information includes names, phone numbers, addresses, financial information from credit cards and social security numbers, IP addresses, and purchase history (Amazon, 2017). Customer information is also obtained from cookies, and e-mail communications. After this information is collected, it is processed and stored in Amazon Web Service regions, and cannot be replicated or transferred without the customer's consent (Amazon Web Service). The stored information is also secured with encryptions to keep it from prying eyes. In addition, the company is also able to obtain business activity data through exchanges with its suppliers, customers and other users (Akter & Wamba, 2016). Further, the company also collects information in the market concerning prices of products, which enables it to offer prices that are competitive and friendly to consumers, giving them a competitive edge.
Amazon uses big data analytics to analyze information since it collects petabyte of information which is stored in the company’s cloud. Through big data analytics, Amazon is able to identify customer possible preferences and needs by analyzing their purchase history and any feedback or reviews issued by the customer (Akter & Wamba, 2016). Further, the use of big data analytics enables the company to obtain information from social media platforms, which helps them in identifying opportunities in the market. One of the benefits that Amazon derives from analyzing data is customer service and product improvement (Amazon, 2017). In terms of service improvement, the company is able to personalize services based on customer preferences as identified through the analysis of purchasing history. In addition, the company is able to monitor dynamic pricing systems and receives alerts to ensure that they are aware of their competitors’ pricing activities (Akter & Wamba, 2016). Further, information analysis at Amazon results in the improvement of the supply chain (Akter & Wamba, 2016), which is a process improvement that can be seen through the level of customer satisfaction and increased profitability. When a customer places an order at Amazon, he/she is able to know the availability of the product, the shipping information and arrival time of the product.
Information obtained by Amazon is shared with third-party service providers contracted by the company to perform functions such as data analysis and marketing (Amazon, 2017). The information provided to them is used strictly for the purpose of performing the required tasks. In addition, information can be shared with affiliated businesses that work closely with but are not controlled by Amazon. The company also uses the information for other businesses in terms of promotional offers, although the information provided is limited (Amazon, 2017). During the dissemination of information, the company uses Secure Socket Layer (SSS) software to protect the information.
Amazon has adopted the use of advanced knowledge management techniques, which enables them to gather and send information to their huge number of customers (Rosenberg, 2014). Amazon thrives in the knowledge that creating a personalized customer experience is the key to maintaining loyal customers. As such, they have managed to provide all the necessary information to their customers through one portal and customers do not have to visit different websites for different products (Rosenberg, 2014). This has ensured easy access to necessary information at any time. Amazon has also provided features where customers can rate and review the products and services. This way, they are able to gather information from customers and can also predict customer preferences by analyzing information provided by customers in those features. In addition to this, Amazon has an effective feedback system which enables them to obtain information from customers on ways of improving their services and products offered through their site (Rosenberg, 2014). This knowledge management effectiveness has enabled Amazon to be the best at meeting customers’ need...