Management Information System In Amazon Inc.

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8/21/2019
Submitted by
Group C
Student Id: 18FIN021-18FIN029
Semester: 2nd
year; 1st
semester
Session: 2018-19; (AS: 2017-18)
Department of Finance and Banking
University of Barishal
Project Report
On
Impact of Management Information System in Amazon Inc.
Submitted to
Md. Saiful Islam
Lecturer
University if Barishal
Course Code: F-203
Course Title: Management Information System
Submission Date:

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Group C
Member List
Serial Name Student ID
1 Jannat Jahan Mim 18FIN021
2 Maria Akter 18FIN022
3 Sadia Sultana 18FIN023
4 Tamanna 18FIN024
5 Mizanur Rahman 18FIN025
6 Mursheda Akter 18FIN026
7 Md. Al Mauz Alam 18FIN027
8 Sadia Sultana 18FIN028
9 Md. Abu Hanif 18FIN029

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Letter of Transmittal
21 August 2019
To
Md. Saiful Islam
Lecturer
Department of Finance and Banking,
University of Barishal.
Subject: Impact of Management Information System in Amazon Inc.
Dear Sir,
We are pleased to submit our report on “Impact of Management Information System in Amazon
Inc.” under the requirement of B.B.A program (Course Title: Management Information System),
Department of Finance and Banking, University of Barisal.
It has been prepared in accordance to your guidance and with the information of reliable sources.
We have tried to make the project paper precise. Our prime focus was to give a clear concept about
Management Information System in Amazon Inc. However, we will be really happy to provide
more information if needed.
We have really enjoyed working on the report. We got to know many new information about the
management system of an organization that will help us in future. We hope that our work would
meet the level of your expectation and oblige us.
Sincerely yours,
On behalf of Group C
University of Barishal.

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Acknowledgement
First of all, we would like to thank the almighty Allah for helping us throughout the whole
internship period by making us complete all the responsibilities properly and prepare a project
report on it within the very short period.
Then we want to express our great gratitude to our honorable course instructor to give us such a
good topic for making a project paper. He gave us his helpful hand to do this project paper. His
class lecture and advice helps us to prepare our paper very much which was very fruitful to us. So
we are grateful to him. He was very generous and friendly towards us while conducting the course
and was the person who has guided us throughout preparing the paper. His teaching method was
really effective and interesting.
We would like thank almighty for keeping everything on right track. Finally, we would like to
thank our parents and friends, without whose support, it was impossible for us to complete the
project.

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Bona fide Certificate
This is to inform that the report on “Management Information System in Amazon Inc.” is a bona
fide work of Group C, Student ID ranging from (18FIN021-18FIN029), who carried out the study
under my supervision. Certified further that this project paper is not part of any other project report.
They are permitted to submit the report.
Md. Saiful Islam
Lecturer

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Table of Contents
Chapter Page
Background…………….…………….……………….……….……………….……….………………………….………………..1
1 Introduction
1.01 Origin of the Study.……………….……….……………….……….………………………….….………………….2
1.02 Objective.……………….……….……………….……….………………………….….………………………………..3
1.03 Limitation.……………….……….……………….……….…………………………….…….….……….……………..4
1.04 Methodology.……………….……….……………….……….………………………….….………………………….5
2 Information System
2.01 Information system and global business………….……….……………….……….………………………..4
2.02 Information system and Amazon Inc.……………………………………………………………………....4-5
3 Information Systems, Organizations and Strategy of Amazon
3.01 Features of Amazon.com………………………………………………………………………………………...6-7
3.02 The internet and Amazon.com………………………………………………………………………….………..8
3.03 Using Information Systems to Achieve Competitive Advantage…………………….………8-11
3.04 Information system strategies for dealing with competitive forces…………………..…11-13
3.05 Amazon’s Activities…………………..……………………..……………………..……………………..…..13-15
3.06 Using System for Competitive Advantage: Management Issue……………………..…….15-16
3.07 Managing Strategic Transition…………………..……………………..……………………..………….16-17
4 Foundations of Business Intelligence: Databases and Information Management
4.01 Business intelligence…………………………………………………………………………………………………17
4.02 Business intelligence trends………………………………………………………………………………………17
4.03 The problem of managing data resources in a traditional file environment………………17
4.04 Database services……………………………………………………………………………………………………..18
4.05 Amazon business Intelligence………………………………………………………………………………18-21
4.06 Business intelligence environment and performance management in Amazon………..22
5 Global E-business and collaboration impact, effect and situation of Amazon
5.01 The role of information systems function in Amazon of a business…………………..………22
5.02 The various levels of management in Amazon of a business………………………………..22-23
5.03 Collaboration……………………………………………………………………………………………………………23
5.04 Technology for collaboration and teamwork…………………………………………………………….23
5.05 Dominions of collaboration technologies in Amazon In ……………………………………………24
5.06 Information systems department……………………………………………………………………………..24

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5.07 Improve organizational performance in Amazon Inc. ……………………………………………….24
6 E-commerce: Digital markets & Digital Goods
6.01 E-commerce……………………………………………………………………………………..………………………25
6.02 Digital markets and digital goods in a global marketplace……………………………………27-28
6.03 6.03 Types of e-commerce…………………………………………………………………………………..28-29
7 Telecommunications, Internet and the wireless Technology in Amazon
7.01 Telecommunication Amazon web services……………………………………………………………….29
7.02 Digital Business Service for Telecom……………………………………………………………………29-30
7.03 Big Data and Analytics for telecommunication………………………………………………………….30
7.04 Head of Telecommunications Sales Strategy and Operations……………………………………31
7.05 Overview of Amazon Web Services…………………………………………………………………………..31
8 Ethical and Social issues of information system in Amazon
8.01 Key technology trends that raise ethical issues for the company………………………………32
8.02 Nonobvious relationship awareness (NORA).………………………………………………………32-33
8.03 Ethical analysis…………………………………………………………………………………….……………………33
8.04 Candidate Ethical principles…………………………………………………………………………………33-34
8.05 Information Rights of the Amazon Company……………………………………………………….34-35
9 Operational Excellence and Customer Intimacy of Amazon…………………………………………..35
10 Project Management in Amazon. Com
10.1 Operational Excellence of Amazon…………………………………………………………………..……36-37
10.2 Customer Intimacy of Amazon…………………………………………………………………………..….37-39
11 Conclusion…………………………………………………………………………………………………………………….39

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Executive Summary
This is a project report based on our research of two week on Amazon Inc. The report critically
evaluates the how service based organization -Amazon Inc. use Management information systems
as a vibrant tool in attaining competitive advantage through efficient management and acquisition
of information. The study involves assessment of the best MIS practices in place for Amazon
throughout its value chain activities. Uniqueness of MIS is being highlighted in the report through
assessment of technology, process and the systems that Amazon use right from the initiation of the
end user with the website till the payment and delivery mode is being selected.

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Background:
For the last two decade Amazon.com has been serving customer worldwide. Amazon.com was
founded by Jeff Bezos back in 1995.The founders vision was to build a virtual shopping place for
book lovers. Amazon.com brings the world largest book store to the door step of the people around
the world. All people has to do is search and select the desired book. It took 30 day to deliver
books to the customers of 50 states and 45 countries.
Amazon.com was a huge success in nineties.Amazon.com became a platform for the retailer and
individuals in 2000.Amazon.com offers their services towards four types of customers,
consumers, sellers, enterprises and content creators. (Annual report 2013)
Amazon serves customer through the popular web site www.amazon.com. Now a day customers
can access through mobile technology.Amazon.com apps are also available for the customers.

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1. Introduction:
1.01 Origin of the study
An information system can be defined technically as a set of interrelated components that collect (or
retrieve), process, store, and distribute information to support decision making and control in an
organization. In addition to supporting decision making, coordination, and control, information systems
may also help managers and workers analyze problems, visualize complex subjects, and create new
products. The study of information system examines people, process and technology in an organizational
context. In a corporate setting, the ultimate goal of the use of a management information system is to
increase the value and profits of the business.
Organizations under E commerce industry seek to attain core competence by creating and sustaining a
unique process to collect personal information about customers and their purchasing trends. Management
information systems aids organization and its system to integrate in an effective and efficient manner to
bring out the synergy between the interactions of the people and information systems. MIS facilitates
management decisions at the strategic and operational levels of an organization. Emerging as an American
multinational E commerce co, Amazon has turned out to be leading online retailer co and offering cloud
computing services. The case of Amazon reflects the successful alignment of information systems with the
overall strategic goals of the organization. Amazon has been fine tuning its E strategy by means of keeping
its website systems unique and separate from that of its order systems. MIS has played a crucial role in the
development of the company on global context (Weber, 2010). Amazon has used MIS as a vibrant tool to
streamlines its management activities and that at the same time has ensured that the customers are offered
with diversified services through its MIS (Cao, 2011).

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1.2 Objective of the study
 To study the Information System and global business;
 To study the Information System and Amazon Inc.;
 To study the Strategy of Amazon Inc.;
 To study the foundation of Business Intelligence of Amazon Inc.;
 To study the Global e-business and Collaboration effect, impact in Amazon Inc.;
 To study the Digital Market and Digital Goods of Amazon Inc.;
 To study the Telecommunication system of Amazon Inc.;
 To study the Social and Ethical issue of Information System in Amazon Inc.;
 To study the Operational Excellence and Customer Intimacy situation of Amazon Inc.;
 To study the Project Managing System of Amazon Inc.
Limitation of the study
 The study is limited because we didn’t get the raw information of the topic;
 The study is limited because the disclosure policy of the certain company;
 Expensive tool were needed to get the access of different web sites to collect data which was
rarely available to us.
1.3 Methodology
 Primary Data Collection
As we have work on a multinational company, so we didn’t get enough chance to get raw data.
Though we have tried to cover by virtual survey and experiment. And as there are a very few
customer of the company prevailing in our country and society (family and friends), so we get a
little data from this source. Consequently we had to work mainly on the basis of secondary data.
 Secondary Data Collection
 Book: We try to relate the topic of “Managing Digital Firm’’ with the actual certain
company basis. The book is mentioned in the reference part.
 Internet: Our main source was several web sites where the company itself and the other
survey organizations disclose the ways of managing the certain company with the help
of information system and we collect the data from there and make it useful after doing
some research on it. The web addresses are mentioned in the reference part.

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2 Information System
2.01 Information system and global business
Management Information Systems (MIS) focus on the use of Information and Communication
Technologies (ICT) in managing organizations. In the 21st
century almost all organizations use
Information and Communication Technologies to efficiently control their operation, to help
managers make better decision and achieve competitive advantage, and to facilitate seamless
internal and external communication with their employees, customers, partners, and other
stakeholders.
Companies can use management information system to provide the product and the services of the
highest quality at an affordable prices and top rated customer service and help companies to enter
into a new markets through e-commerce. Globalization, collaboration, and integration have
become the new drivers in this competitive arena. Nowadays, the main focus of the companies is
to stay globally competitive by leveraging the capabilities of modern information and
Communication technologies. Many businesses have begun to participate in the global market, as
it presents a chance for greater revenuer and larger business prospects.
2.02 Information system and Amazon Inc.
Amazon.com opened its virtual doors on the World Wide Web in July 1995. They seek to be
Earth’s most customer-centric company. They are guided by four principles: customer obsession
rather than competitor focus, passion for invention, commitment to operational excellence, and
long-term thinking.
Amazon serve consumers through their retail websites and physical stores and focus on selection,
price, and convenience. They design their websites to enable millions of unique products to be
sold by them and by third parties across dozens of product categories. Customers access their
offerings through their websites, mobile apps, Alexa, and physically visiting their stores. They also
manufacture and sell electronic devices, develop and produce media content and provide easy-to-
use functionality, fast and reliable fulfillment, and timely customer service.
To complete these task there’s a great impact of management information system. As of export-x,
amazon sold a total of 1938 million product and services around the world in 2015 which is
increasing daily. So, managing this huge system of retailing, they need to differentiate the products
and supplier, then take the orders of thousands of people in every single seconds via web 2.0
technology and finally reach the product to the certain customer, then the benefit recovers their
buying and finally need to pay the employees and other stakeholders, is not an easy task. In this
term Management Information Systems helps amazon to do these task properly in a time efficient
manner. Basically Management Information Systems used for point-of-sale data collection,
logistics, inventory control, internal communication and each of these item affect their retail
operations.

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In 1995 Amazon used website system and order fulfillment system separately in order to
improve security. By 1995 amazon has huge database running on Digital Alpha Servers. Amazon
renovated the entire system in the year of 2000. Company spent $200 million on the new system.
These systems include analysis software from “Epiphany”, logistics from “autistics” and new
DBMS from oracle. (Gerald, 2012) For communication with supplies amazon seal deal with
Exelon for business-to-business integration system. (Konicki, 2000). Amazon Web Service
(AWS) and Simple Storage Service (SS) are the main system developed by amazon. Through this
system amazon can maintain its vast number of products and millions of active customers.
Amazon web service has become a global platform for individual to retailers to sell their
products. Through reliable, Scalable, and robust web service amazon creates a global
domination. The challenges of amazon.com web services are very prominent.
The rapid development and dissemination of new information, as well as telecommunications
technology today acquires the character of the global information revolution, which has a growing
influence on politics, economics, management, finance, science, culture and other social spheres
within national borders and in the world as a whole. One of the most important tasks of the present
time is improving management processes, including the use of modern information technology. It
is the key to performance of virtually all organizations. Effective management of the organization
today is not possible without control of its information activities and the entire system of corporate
information. Therefore, developed management information system is the key to success of an
organization.
Management information system of Amazon was an attempt to link directly the information system
and its development with organizational goals using logical analysis. It regularly produces
structured reports on various aspects for the Amazon. Its tasks are to assess the operations and
create a report based on it (Laudon & Laudon, 2013). Management information system of the
company is a set of interrelated machines organized in a hierarchical structure, covering all aspects
of the company from top to bottom (Sousa & Oz, 2014). It forms the first, rarely the second level
of information system and performs its normal function and transmits information machines of the
second level (Sousa & Oz, 2014). At this level, the data is used for optimization calculations
(Laudon & Laudon, 2013). Thus, the management information system consistently implements
the principles of unity and organization of information through the use of technical means of
collection, storage, processing and transmission of information in conjunction with the use of
analytical methods of mathematical statistics and models of forecasting and analytical calculations.
An important role in the successful sale rates of the Amazon was played by the proper marketing.
Management information system has helped to build a sales system, in which ordinary people
themselves started to promote products of Amazon. Any site owner can sell products of Amazon
through their own resource, receiving a percentage of sales. Also, applications of information
systems in the company can be seen in the infrastructure of cloud system.

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3 Information Systems, Organizations and Strategy of Amazon
3.01 Features of Amazon.com
The main feature that puts Amazon.com on another level is the multi-leveled e-commerce strategy
it employs. Amazon.com lets almost anyone sell almost anything using its platform. You can find
straight sales of merchandise sold directly by Amazon, like the books it sold back in the mid-'90s
out of Jeff Bezos' garage -- only now they're shipped from a very big warehouse. Since 2000, you
can also find goods listed by third-party sellers -- individuals, small companies and retailers like
Target and Toys 'R Us. You can find used goods, refurbished goods and auctions. You could say
that Amazon is simply the ultimate hub for selling merchandise on the Web, except that the
company has recently added a more extroverted angle to its strategy.
 Organizational Culture of Amazon.com
Amazon.com considers itself a completely customer-centric company. In fact, it has described
itself as "customer-obsessed." The company really believes that if it doesn't listen to customers,
it will fail. Amazon has stated that it wants to take advantage of any opportunity that presents
itself to the company during a time of unprecedented technological revolution. Amazon not
only believes in putting customers first but also in ownership from its team. "Ownership
matters when you're building a great company," the company has said. "Owners think long-
term, plead passionately for their projects and ideas and are empowered to respectfully
challenge decisions."
Getting a job at Amazon may not be easy (especially since the company prides itself on its high
hiring bar). When making a hiring member, management asks, "Will I admire this person? Will I
learn from this person? Is this person a superstar?" While tech companies such as Google Inc. are

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known for the perks it gives employees, Amazon operates differently. The company believes
that frugality breeds resourcefulness and self-sufficiency.
 Organizational Environment of Amazon.com
The environment of amazon is a highly complex and is divided into three categories namely
industrial, general and competitive. Technological and global factors are the two segments that
rank highest for amazon in the general environment. Technological has driven the growth of
amazon, which has allowed Amazon to provide its customers a wide variety of services and
products at lower rates. Amazon has database containing 1.1 million books , in comparison to the
largest superstore that has 1,75,000 books , Amazon also offers web hosting and fulfillment
services to online and offline retailers using its Amazon Commerce Network. Currently, the
Amazon retail websites have products ranging from toys, video games, MP3 downloads,
electronics household goods and collectible items. The company has also created a worldwide
network of customer service and fulfillment centers.
 Organizational Structure of Amazon.com
Amazon organizational structure can be classified as hierarchical. Senior management team
include two CEOs, three Senior Vice Presidents and one Worldwide Controller, who are
responsible for various vital aspects of the business reporting directly to Amazon CEO Jeff Bezos.
There are seven segments such as information technology, human resources and legal operations
and heads of segments also report to Amazon CEO.
Hierarchical structure at Amazon has developed due to the immense size of the business. The
largest internet retailer in the world by revenue employs 560,000 people worldwide and it has more
than 300 million customers globally. Amazon organizational structure integrates many small
teams that deal with various aspects of the business. Amazon founder and CEO Jeff Bezos is
credited with the introduction of ‘two pizza rule”. According to this rule, meetings should be held
in teams small enough that could be all fed with only two pizzas. It is important to note that despite
its large size, unlike many other companies with hierarchical organizational structure, Amazon
remains highly flexible to adapt to frequent changes in the external marketplace.

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3.02 The internet and Amazon.com
Amazon works by both internet and directly. They sell stuff directly from them and they allow
other venders to sell through them. Start by doing a search for what you're looking for. After you
do a search for the book you want to buy you'll see a link in the listing that show something like
"71 used & new". If you click on that you'll see a listing of the books and the people who are trying
to sell that book. Each seller has a rating. By this you can order which you want and by getting
order Amazon send you by shipping system. Many items sold by Amazon.com have free shipping
if the total order is over $25. That is not true for the other stores.
3.03 Using Information Systems to Achieve Competitive Advantage
Amazon is a business that has gained competitive advantage through information systems. They
build a strong relationship with their customer by keeping a record of past purchases and this
allows them to recommend new products that the customer may be interested in.
Porter’s competitive forces model
Amazon must address the major forces of competition, consumers and substitutes, based on the
Porter’s Five Forces Analysis of the business. It is recommended that the company must address
the strong force of competitive rivalry by emphasizing competitive advantage and strengths of the
e-commerce organization.
 Traditional competitors: Amazon competes against strong competitors. This aspect of
Porter’s Five Forces Analysis model tackles the effects of firms on each other. In the case
of Amazon.com Inc., the following external factors are responsible for the strong intensity
of competition or competitive rivalry in the online retail industry environment:
i. High aggressiveness of firms (strong force);
ii. High availability of substitutes (strong force);
iii. Low switching costs (strong force).
Retail firms are generally aggressive, and they exert a strong competitive force against each other.
For example, Amazon.com Inc. directly competes against giants like Walmart, which has a
significant and expanding e-commerce website. Amazon also experiences the strong force of
substitutes because of their high availability. For instance, Walmart’s physical or brick-and-mortar
stores are substitutes to Amazon’s online retail service. Other brick-and-mortar bookstores and
smaller retailers also compete against Amazon. Furthermore, low switching costs impose a strong
force on the company. Low switching costs correspond to low barriers for consumers to transfer
from one retailer to another, or from one company to a substitute provider. Based on the external
factors in this aspect of the Five Forces Analysis of Amazon, competition must be a strategic
priority to ensure the company’s long-term competence.

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 New Market Entrants: New firms potentially reduce Amazon’s market share in online
retail. The effects of new entrants are considered in this aspect of Porter’s Five Forces
Analysis model. Amazon.com Inc. experiences the weak intensity of the threat of new entry
based on the following external factors:
i. Low switching cost (strong force);
ii. High cost of brand development (weak force);
iii. High economics of scale (weak force).
Amazon’s consumers can easily transfer to new firms, thereby empowering new firms to impose
a strong force against the company. This condition is due to low switching costs, or the low
negative effects of transferring from one provider to another. However, the high cost of brand
development in online retail weakens the influence of new entrants on the performance of Amazon.
For example, it would take years and billions of dollars to create a strong brand that directly
competes with the Amazon brand. In addition, the company benefits from high economies of scale
that make its e-commerce business strong. As such, new entrants need to achieve similarly high
economies of scale to compete against the company. Based on the external factors in this aspect
of the Five Forces Analysis, new entrants are a minor strategic issue in Amazon’s performance in
the online retail industry environment.
 Substitute Product and Service: Amazon.com Inc. competes with substitutes in the
online retail market. This aspect of Porter’s Five Forces Analysis model identifies how
substitutes affect the industry environment. In the case of Amazon, the following external
factors support the strong intensity of the threat of substitution:
i. Low switching cost(strong force);
ii. High availability of substitutes (strong force)
iii. Low cost of substitutes (strong force)
Amazon continually addresses the strong force of substitutes, which threaten the e-commerce
company’s performance. The low switching costs show that customers can easily transfer from the
company to other retailers. For example, consumers can easily decide to buy from Walmart stores
or other retail establishments instead of buying from Amazon.com Inc. The high availability of
substitutes and the low costs of their product offerings further increase the influence of substitutes
against the company. Thus, the external factors in this aspect of the Five Forces Analysis of
Amazon.com Inc. show that substitution is among the priorities in the company’s strategies for
long-term success in the online retail industry environment.

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 Customers: Amazon.com Inc.’s vision statement and mission statement highlight the
company’s customer-centric approach to e-commerce business. This aspect of Porter’s
Five Forces Analysis model determines the influence of consumers on firms and the
industry environment. The following external factors support the strong intensity of the
bargaining power of customers in affecting Amazon:
i. High quality of information (strong forces);
ii. Low switching cost (strong forces);
iii. High availability of substitutes (strong forces).
Consumers have access to high quality information regarding the services of online retailers and
the products they sell. This external factor affects Amazon.com Inc. in terms of the ability of
customers to find alternatives to the company’s online retail service. In relation, the low switching
costs make it easy for consumers to transfer from Amazon to other firms, such as Walmart. Also,
the high availability of substitutes further empowers consumers to shift from one retailer to
another. For example, instead of purchasing on Amazon’s e-commerce website, a customer can
easily go to one of Walmart’s stores, which are strategically located throughout the United States.
The external factors in this aspect of the Five Forces Analysis show that Amazon must consider
the strong bargaining power of buyers as a major factor in addressing business challenges in the
online retail industry environment.
 Suppliers: Suppliers control the availability of supplies or materials Amazon.com Inc.
needs for its e-commerce operations, such as hardware components for information
systems. The influence of suppliers on the online retail industry environment is outlined in
this aspect of Porter’s Five Forces Analysis model. Amazon experiences the moderate
intensity of the bargaining power of suppliers based on the following external factors:
i. Small population of suppliers (strong force)
ii. Moderate forward integration (moderate force)
iii. Moderate size of suppliers (moderate force)

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The small population empowers suppliers to impose a strong force on Amazon.com Inc.’s e-
commerce business. For example, changes in prices of equipment from a small number of large
suppliers could directly impact the company’s online retail operational costs. However, the
moderate forward integration limits suppliers’ actual effect on Amazon. Moderate forward
integration equates to a moderate degree of control that suppliers have in the sale of their products
to firms like Amazon. Moreover, the moderate size of most equipment manufacturers limits their
influence on the company. Based on this aspect of the Five Forces Analysis of Amazon, the
external factors emphasize the moderate significance of suppliers as a strategic determinant in the
online retail industry environment.
3.04 Information system strategies for dealing with competitive forces
 Low Cost Leadership: Amazon uses low cost leadership as its generic strategy for
competitive advantage. Minimization of operational costs is the objective in this generic
competitive strategy. For example, Amazon.com uses advanced computing and networking
technologies for maximum operational efficiency, which translates to minimized costs.
Considering the nature of e-commerce, the company benefits from process automation,
which is generally used in purchase processing, scheduling, and other operational
processes. These benefits enable Amazon.com Inc. to minimize the cost of its online retail
and other services.
 Product Differentiation: Differentiation is the process of adding meaningful and valued
differences to distinguish the product from the competition. Amazon successfully provide
a differentiated service to consumers. Within Amazon.com’s core website, the company
now offers over 593,000 items within the grocery section. While this is a vast selection,
where Amazon.com differentiates itself is that 74,000 of these items are eligible for free
shipping either through Amazon Prime or super saver shipping with a $25 purchase.
 Focus on Market Niche: In 1994, Jeff Bezos after being jolted by Internet’s 2300 percent
annual growth rate, began to think about building a true ‘everything store’ online. But he
knew that building such a store is impractical at least in the beginning. So, to position his
service in people’s mind, he had to focus on a niche. How to choose a niche? He made a list
of twenty possible categories — Computer software, office supplies, apparel, music, etc…
One interesting option popped out — The Books.

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Why Books? — Bezos chose the ‘Books’ category for the following reasons
 Books was a $10 billion industry in the united states in the year 1994. A considerable
percentage of people had already been buying books through mail order or through postal
services — A potential customer base with a need for convenience.
 Generally, most of us would have a “Fear of Failure” while trying out any new things.
Consumers at that time had little exposure to online buying. They had this fear of buying
goods of unknown quality. But books were pure commodities. A copy of a book in one store
was identical to the same book in any other store. So, the customers had no “Fear of
Unknown”. They knew what they would be getting.
 That time, books were primarily supplied by two major distributors and this would help
Bezos not to waste time in approaching individual publishers.
 Strengthen Customer and Supplier Intimacy: On the customer side, Amazon.com keeps
track of user preferences for book and CD purchases, and can recommend titles purchased
by others to its customers. Despite Amazon’s arrival on the scene, existing suppliers have
an opportunity to stand out by becoming more personal with the B2B customer. Suppliers
that are able to provide contractual arrangements, service agreements, better insights into
demand patterns, and also unique offerings based on past purchases and installations are
able to provide more than Amazon can. This type of personalization needs to go beyond
just the sale of the individual item and smaller traditional suppliers are in the perfect
position to do so.
The Business Value Chain Model
Value chain analysis is an analytical framework that assists in identifying business activities that
can create value and competitive advantage to the business. The figure below illustrates the essence
of Amazon value chain analysis.

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.
Amazon Value Chain Analysis
3.05 Amazon’s Activities
I. Primary Activities
 Amazon Inbound logistics: Generally, Amazon does not have long-term contracts or
arrangements with its vendors to guarantee the availability of merchandise, particular
payment terms, or the extension of credit limits. Fulfilment by Amazon (FBA) is the
cornerstone of Amazon inbound logistics for company-owned retail business. Sellers can
also use FBA by stowing their inventory in Amazon fulfilment centers. In this case,
Amazon assumes full responsibility for logistics, customer service, and product returns. If
a customer orders an FBA item and an Amazon owned-inventory item, the company ships
both items to the customer in one box, as a significant gain of efficiency. The use of FBA
is an optional choice for sellers and this choice makes the products of third-party seller’s
eligible for Amazon Prime free two-day shipping, free shipping and other benefits.
 Amazon Operations: Amazon operations are organized into three segments:
i. North America. This segment operates North America-focused websites such as
www.amazon.com, www.amazon.ca, and www.amazon.com.mx. Sales in this segment
increased by 25% and 33% in 2016 and 2017, compared to the comparable prior year
periods.
ii. International. This segment operates internationally-focused websites such as
www.amazon.com.au, www.amazon.com.br, www.amazon.cn and others.
International sales increased by 24% and 23% in 2016, and 2017, compared to the
comparable prior year periods. Loss in this segment was caused by increased levels of

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operating expenses to expand Amazon’s fulfilment network and spending on
technology and content and marketing efforts. Increase in operating loss in
international segment was also partially caused by changes in currency exchange rates.
iii. Amazon Web Services (AWS). This segment deals with global sales of computing,
storage, database, and other service offerings for start-ups, enterprises, government
agencies, and academic institutions. AWS sales increased 55% and 43% in 2016 and
2017, compared to the comparable prior year periods AWS offers pay-as-you-go cloud
storage, compute resources, networking and computing services and its major
customers include Pinterest, Dropbox, and Airbnb.
 Amazon Outbound logistics: Generally, Amazon outbound logistics integrates the
following:
i. Fulfilment centers. The e-commerce giant operates 109 fulfilment centers around
the globe and the company uses robotic technology in an extensive manner to
manage receipt, stowing, picking, and shipment of products.
ii. Co-sourced and outsourced arrangements
iii. Digital delivery. These relate to products and services that can be downloaded
from Amazon website.
iv. Physical stores. The e-commerce giant acquired Whole Foods chain in 2017. The
company has generated USD 4.3 billion revenues in Q2, 2018 from physical stores
sales alone.
 Amazon Marketing and Sales: Amazon marketing message conveys the promises of the
largest selection of products and services, attractive prices, fast delivery of products and
overall superior customer services. Several components of the marketing communication
mix such as print and media advertising, sales promotion, events and experiences, public
relations and direct marketing are used in an integrated way in order to communicate the
marketing message to the target customer segment.
 Amazon Service: Exceptional customer service is a major source of value creation for the
e-commerce and cloud computing company. Amazon annual report says “we seek to be
Earth’s most customer-centric company” and accordingly, the company offers exceptional
customer services. Amazon Marketplace and Prime has two types of customers – sellers
on and buyers from Amazon platform. For sellers in particular, Amazon offers Selling
Coach program “alerting sellers about opportunities to avoid going out-of-stock, add
selection that’s selling, and sharpen their prices to be more competitive”.
II. Amazon Support activities
 Firm’s Infrastructure: Amazon has a huge fraction of the effort into building the
infrastructure that lets a Web-scale business run. Amazon has all the scar tissue to show
people they know how to do it. Amazon think it’s also going to be a very meaningful

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business for them one day. So Amazon’s motives for doing it are very straightforward:
Amazon think its good business.” Amazon has already won many converts among its new
customer base, effectively remaking the economics of instantly scalable infrastructure.
Losable Wang provides a compelling example of how Amazon’s services can cut costs,
citing the virtual world Second Life and its use of S3 to manage downloads of new
software.
 Human Resources: Amazon.com has a great training for its employees. According to the
annual report of amazon.com 2010, the past year’s success is the product of a talented,
smart, hard-working group, and Amazon take great pride in setting up of this team. Setting
the bar high in Amazon approach to hiring has been, and will continue to be, the single
most important element of Amazon.com’s success. However, employment levels fluctuate
due to seasonal factors affecting Amazon’s business. Additionally, Amazon utilizes
independent contractors and temporary personnel to supplement their workforce,
particularly on a seasonal basis. Although Amazon has works councils and statutory
employee representation obligations in certain countries, Amazon’s employees are not
represented by a labor union and Amazon consider their employee relations to be good.
Competition for qualified personnel in Amazon’s industry has historically been intense,
particularly for software engineers, computer scientists, and other technical staff.
 Technology Development: Amazon.com utilizes technology innovation to differentiate
itself on online customer experience. Innovations such as personalized recommendations,
one-click ordering, and search inside the book are all Amazon.com innovations. These
innovations comprise the virtual store experience for the Amazon.com customer.
Amazon.com has highly customized software applications that support their supply chain
business model. In addition to using technology to support supplier collaboration and order
sourcing, Amazon.com utilizes its core technology expertise to improve supply chain
execution. Execution involves the internal distribution center processes that have been
highlighted in this paper as well as the transportation initiatives. Amazon.com drives
competitive advantage by utilizing proprietary information technology specifically
designed to support their business model. An indication of Amazon.com's confidence in its
technology is the bundling of its e-commerce front-end and back-end to develop the
Merchant.com model. Additionally, Amazon.com evaluates technology to drive business
value.
 Procurement: Amazon.com utilizes a Sales and Operations (S&OP) planning process to
determine forecasts for each product that it stores in its distribution center inventory.
Amazon.com keeps track of its inventory position in real-time based on warehouse receipts
and shipments. Purchase orders are placed to suppliers based on the forecasted amount
needed minus the current inventory on hand in the warehouse.

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3.06 Using System for Competitive Advantage: Management Issue
 Sustaining Competitive Advantage: The first and foremost factor for sustainable
competitive advantage is to position your brand inside a consumer’s mind. As Amazon
began to sell books online, it was beginning to find ways to establish and preserve the
difference in a consumer’s mind as it was the next foundational step in building a sustainable
competitive advantage. Amazon has been performing hundreds of activities to provide the
chosen value propositions to customers. Amazon customized some activities such as: easy
to return, users review, trust is earned to meet Amazon’s low price and a greater value of
convenience for the customers. Over a period of time, those activities became unique to
Amazon and became a stepping stone for sustainable competitive advantage.
 Aligning with Business Objectives: It's important to realize that first and foremost
Amazon.com is a technology company. Over the past years, Amazon.com grew from an
online retailer into a platform on which more than 1 million active retail partners worldwide
do business. Behind Amazon.com's successful evolution from retailer to technology
platform is its SOA (service-oriented architecture), which broke new technological ground
and proved that SOAs can deliver on their promises. Growth is core to Amazon.com's
business strategy, and that has had a significant impact on the way they use technology:
growth through more categories, a larger selection, more services, more buying customers,
more sellers, more merchants, and more developers, increasing the different access
methods, and expanding delivery mechanisms. The impact has been on many areas: larger
data sets, faster update rates, more requests, more services, more developers, more
documentation, more programs, more servers, more networks, more data centers. A large
part of Amazon.com's technology evolution has been driven to enable this continuing
growth, to be ultra-scalable while maintaining availability and performance.
The biggest success has been that Amazon.com has become a platform that other
businesses can benefit from. Making Amazon.com a general platform for e-commerce
operation has been made possible through their advanced technology investments and it
has been success.
3.07 Managing Strategic Transition
Strategic transitions is a movement between levels of sociotechnical systems. Suppliers and
customers must become intimately linked and may share each other’s responsibilities. Security
and Compliance is a shared responsibility between Amazon and the customer. This shared model
can help relieve the customer’s operational burden as Amazon operates, manages and controls
the components from the host operating system and virtualization layer down to the physical
security of the facilities in which the service operates. The customer assumes responsibility and
management of the guest operating system (including updates and security patches), other

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associated application software as well as the configuration of the Amazon provided security
group firewall. Amazon is responsible for protecting the infrastructure that runs all of the
services offered in the Amazon Cloud. Customer responsibility will be determined by the AWS
Cloud services that a customer selects. This determines the amount of configuration work the
customer must perform as part of their security responsibilities.
This customer/Amazon shared responsibility model also extends to IT controls. Just as the
responsibility to operate the IT environment is shared between Amazon and its customers, so is
the management, operation and verification of IT controls shared. Amazon can help relieve
customer burden of operating controls by managing those controls associated with the physical
infrastructure deployed in the Amazon environment that may previously have been managed by
the customer.
4 Foundations of Business Intelligence: Databases and Information Management
4.01Business intelligence:
The term Business Intelligence (BI) refers to technologies, applications and practices for the
collection, integration, analysis, and presentation of business information. The purpose of Business
Intelligence is to support better business decision making. Essentially, Business Intelligence
systems are data-driven Decision Support Systems (DSS). Business Intelligence is sometimes used
interchangeably with briefing books, report and query tools and executive information systems.
4.02 Business intelligence trends:
Currently organizations are starting to see that data and content should not be considered separate
aspects of information management, but instead should be managed in an integrated enterprise
approach. Enterprise information management brings Business Intelligence and Enterprise
Content Management together. Currently organizations are moving towards Operational Business
Intelligence which is currently under served and uncontested by vendors. Traditionally, Business
Intelligence vendors are targeting only top the pyramid but now there is a paradigm shift moving
toward taking Business Intelligence to the bottom of the pyramid with a focus of self-service
business intelligence.
4.03 The problem of managing data resources in a traditional file environment:
Traditional file management techniques make it difficult for organizations to keep track of all of
the pieces of data they use in a systematic way and to organize these data so that they can be easily
accessed. Different functional areas and groups were allowed to develop their own files
independently.
Over time, this traditional file management environment creates problems such as data redundancy
and inconsistency, program-data dependence, inflexibility, poor security, and lack of data sharing

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and availability. A database management system (DBMS) solves these problems with software
that permits centralization of data and data management so that businesses have a single consistent
source for all their data needs. Using a DBMS minimizes redundant and inconsistent files.
4.04 Database services
Amazon RDS: Makes it easy to set up, operate, and scale a relational database in the cloud .RDS
leverages SNS to broadcast notifications when RDS events occur. As usual, these notifications can
be delivered via any protocol supported by SNS, including SQS queues, Lambda functions, and
HTTP endpoints. As an example, imagine that you own a social network website that has
experienced organic growth, and needs to scale its compute and database resources on demand. In
this case, you could provide an SNS topic to listen to RDS DB instance events. When the “Low
Storage” event is published to the topic, SNS pushes this event to a subscribing Lambda function,
which in turn leverages the RDS API to increase the storage capacity allocated to your DB
instance. The provisioning itself takes place within the specified DB maintenance window.
 Using Amazon RDS Event Notifications via Amazon SNS
 Viewing Amazon RDS Events
4.05 Amazon business Intelligence
Amazon is a fast, cloud-powered business intelligence service that makes it easy to deliver insights
to everyone in your organization. As a fully managed service, Quick Sight lets you easily create
and publish interactive dashboards that include ML Insights. Dashboards can then be accessed
from any device, and embedded into your applications, portals, and websites.
With our Pay-per-Session pricing, Quick Sight allows you to give everyone access to the data they
need, while only paying for what you use.

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 Discover hidden insights
ML Insights leverages AWS’s proven machine learning (ML) and natural language capabilities to
help you gain deeper insights from your data. These powerful, out-of-the-box features make it easy
for anyone to discover hidden trends and outliers, identify key business drivers, and perform
powerful what-if analysis and forecasting with no technical expertise or ML experience needed.
 Pay only for what you use
QuickSight offers a unique, industry first pay-per-session model for dashboard readers, users who
consume dashboards others have created. Instead of paying a fixed license cost per month, readers
are billed $0.30 for a 30-minute session up to a maximum charge of $5/reader/month for unlimited
use. This pricing model allows all of your users to access secure, interactive dashboards and email
reports on a pay-per-session basis with no upfront costs or complex capacity planning.

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 Scale to tens of thousands of users
Deliver rich, interactive dashboards for your readers
Quick Sight makes it easy and fast to create interactive dashboards and reports for your users. You
can securely share those dashboards with anyone in your organization via browsers or mobile
devices. With Quick Sight, you choose from a wide library of visualizations, charts, and tables,
add interactive features like drill-downs and filters, and perform automatic data refreshes to build
interactive dashboards. Quick sight also allows you to schedule automatic email-based reports, so
you can get key insights delivered to your inbox.
Explore, analyze, and collaborate
Quick Sight gives users and analysts self-service business intelligence (BI), so they can answer
their own questions, collaborate, and share insights. With Quick Sight, your users can connect to
data sources, create/edit datasets, create visual analyses, invite co-workers to collaborate on
analyses, and publish dashboards and reports.
 Embedded analytics
Quick Sight embedding makes it easy to integrate a modern analytics experience into your apps,
portals, and websites. As a fully managed platform, Quick Sight is designed and priced to grow
with you, offering an architecture that scales to millions of customers while only paying for what
you use.

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 Build end-to-end BI solutions
Connect to your data, wherever it is
Quick Sight allows you to directly connect to and import data from a wide variety of cloud and
on-premises data sources. These include SaaS applications such as Salesforce, Square,
ServiceNow, Twitter, GitHub, and JIRA; 3rd party databases such as Teradata, MySQL, Postgres,
and SQL Server; native AWS services such as Redshift, Athena, S3, RDS, and Aurora; and private
VPC subnets. You can also upload a variety of file types including Excel, CSV, JSON, and Presto.
 A Global Solution
As a native AWS service with customers all over the world, Quick Sight has been designed
and built as a global product from the beginning. The Quick Sight application is localized
in 10 major languages including: English, German, Spanish, French, Italian, Portuguese,
Japanese, Korean, Simplified Chinese, and Traditional Chinese. Quick Sight is also
available across multiple AWS regions including: N. Virginia, Oregon, Ohio, Dublin,
Japan, Singapore, and Sydney.
 Achieve security and compliance
Quick sight provides a secure platform allowing you to distribute dashboards and insights
securely to tens of thousands of users. In addition to the multi-region availability and built-
in redundancy, Quick Sight allows you to securely manage your users and content via a
comprehensive set of security features including role-based access control, active directory
integration, CloudTrail auditing, single sign-on (IAM, 3rd party), private VPC subnets, and
data backup. QuickSight is also Fed Ramp, HIPAA, PCI PSS, ISO, and SOC compliant to
help you meet any industry-specific or regulatory requirements.

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4.06 Business intelligence environment and performance management in Amazon:
During the 21st
century business environments have become more complex and dynamic than ever
before. Companies operate in a world of change influenced by globalization, volatile markets, legal
changes and technical progress. As a result, they have to handle growing volumes of data and
therefore require fast storage, reliable data access, intelligent retrieval of information and
automated decision-making mechanisms, all provided at the highest level of service quality.
Successful enterprises are aware of these challenges and efficiently respond to the dynamic
environment in which their business operates.
Business Intelligence (BI) and Performance Management (PM) offer solutions to these challenges
and provide techniques to enable effective business change. The important aspects of both topics
are discussed within this state-of-the-art volume. It covers the strategic support, business
applications, methodologies and technologies from the field, and explores the benefits, issues and
challenges of each. Issues are analyzed from many different perspectives, ranging from strategic
management to data technologies, and the different subjects are complimented and illustrated by
numerous examples of industrial applications. Contributions are authored by leading academics
and practitioners representing various universities, research centers and companies worldwide.
Their experience covers multiple disciplines and industries, including finance, construction,
logistics, and public services, amongst others.
5 Global E-business and collaboration impact, effect and situation of Amazon
5.01 The role of information systems function in Amazon of a business:
The information systems department is the formal organizational unit responsible for information
technology services.It is responsible for maintaining the hardware, software, data storage and
networks that comprise the firm' s IT infrastructure. The department consists of specialist, such as
programmers, systems analysis, project leaders and information system managers, and is often
headed by a CIO.
5.02 The various levels of management in Amazon of a business:
i. Transaction Processing System
ii. Management Information System
iii. Decision Support System
iv. Executive Support System

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Systems serving operational management are transaction processing systems, such as payroll or
order processing, that track the flow of the daily routine transactions necessary to conduct
business. Management information systems and decision - support systems support middle
management. Most MIS reports condense information from TPS and are not highly analytical
models and data analysis capabilities. Executive support systems support senior management by
providing data that are often in the form of graphs and charts delivered via portals using many
source of internal and external information.
5.3 Collaboration
Collaboration is working with others to achieve shared and explicit goals. Collaboration can be
one- to-one and many- to- many. Collaboration can be short-lived, lasting a few minutes or long
term, depending on the nature of the task and the relationship among participation.
Growing important of collaboration:
i. Changing nature of work
i. Growth of professional work - "interaction jobs"
ii. Changing organization of the firm
iii. Changing scope of the firm
iv. Emphasis on innovation
v. Changing cultural of work
5.4 Technology for collaboration and teamwork

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5.5 Dominions of collaboration technologies in Amazon Inc. :
5.06 Information systems department:
Information systems department is the formal organizational unit responsible for information
technology services. It's include often headed by
 Chief information officer (CIO),
 Chief security officer (CSO),
 Chief knowledge officer (CKO),
 Chief Privacy Officer (CPO),
 System Analyst,
 Information System Manager.
5.07 Improve organizational performance in Amazon Inc:
Enterprise applications (enterprise systems, supply Chain management systems, customer
relationship management systems, and knowledge management systems) are designed to
coordinate multiple functions and business processes. Enterprise systems integrate the key internal
business processes of Amazon into a single software system to improve coordination, efficiency,
and decision making. Supply chain management systems help the firm manage its relationship
with suppliers to optimize the planning, sourcing, manufacturing, and delivery of products and
services. Customer relationship management use information systems to coordinate all of the
business processes surrounding the firm’s interaction with its customers to optimize firm revenue
and customer satisfaction. Knowledge management systems enable firms to optimize the creation,
sharing, and distribution of knowledge.

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6. E-commerce: Digital markets & Digital Goods
6.01 E-commerce
Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and
selling of goods or services using the internet, and the transfer of money and data to execute these
transactions. Ecommerce is often used to refer to the sale of physical products online, but it can
also describe any kind of commercial transaction that is facilitated through the internet.
In ‘amazon.com’ all of the buying and selling activities are done by the internet. When we
purchased of goods from amazon we have to use the e- commerce process.
8 Unique feature of E commerce
E-commerce has grown so rapidly because of the unique nature of the Internet and the Web. The
Internet and e-commerce technologies are much more rich and powerful than previous technology
revolutions like radio, television, and the telephone.
a. Ubiquity
In traditional commerce, a marketplace is a physical place, such as a retail store, that you visit to
transact business. E-commerce is ubiquitous that means it is available just about everywhere, at all
times. Like amazon.com makes it possible to shop from your desktop, at home, at work, or even
from your car, using mobile commerce. We can buy goods anytime and anywhere. The result isb
called a marketspace - a marketplace extended beyond traditional boundaries and removed from a
temporal and geographic location. From a consumer point of view, ubiquity reduces transaction
costs—the costs of participating in a market. To transact business, it is no longer necessary that
you spend time or money traveling to a market, and much less mental effort is required to make a
purchase.
b. Global Reach
E-commerce technology permits commercial transactions to cross cultural and national boundaries
far more conveniently and cost effectively than is true in traditional commerce. As a result, the
potential market size for e-commerce merchants is roughly equal to the size of the world’s online
population. In amazon.com we can purchase or sale goods any national boundaries or any culture.
We can use amazon.com from any location of this world. It is available anywhere over the online
or internet.
c. Universal Standards
One strikingly unusual feature of e-commerce technologies is that the technical standards of the
Internet and, therefore, the technical standards for conducting e-commerce are universal standards.
Amazon.com is shared by all nations around the world and enable any computer to link with any

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other computer regardless of the technology platform each is using. In contrast, most traditional
commerce technologies differ from one nation to the next. For instance, television and radio
standards differ around the world, as doe’s cell telephone technology. The universal technical
standards of the Internet and e-commerce greatly lower market entry costs—the cost merchants
must pay simply to bring their goods to market. At the same time, for consumers, universal
standards reduce search costs—the effort required to find suitable products.
d. Richness
Information richness refers to the complexity and content of a message. Traditional markets,
national sales forces, and small retail stores have great richness: They are able to provide personal,
face-to-face service using aural and visual cues when making a sale. The richness of traditional
markets makes them powerful selling or commercial environments. Prior to the development of
the Web, there was a trade-off between richness and reach: The larger the audience reached, the
less rich the message. The Web, amazon.com, makes it possible to deliver rich messages with
text, audio, and video simultaneously to large numbers of people. We can send a message with
text, audio, video about goods to purchase.
e. Interactivity
Unlike any of the commercial technologies of the twentieth century, with the possible exception
of the telephone, e-commerce technologies are interactive, meaning they allow for two-way
communication between merchant and consumer. Television, for instance, cannot ask viewers any
questions or enter into conversations with them, and it cannot request that customer information
be entered into a form. In contrast, all of these activities are possible on an e-commerce Web site.
Interactivity allows an online merchant to engage a consumer in ways similar to a face-to-face
experience but on a massive, global scale. We can also see that in amazon.com, where are available
interactivity. We can learn about our goods by two way communication.
f. Information Density
The Internet and the Web vastly increase information density—the total amount and quality of
information available to all market participants, consumers, and merchants alike. E-commerce
technologies reduce information collection, storage, processing, and communication costs while
greatly increasing the currency, accuracy, and timeliness of information. For example amazon.com
reduce their cost for the information density.

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g. Personalization/Customization
E-commerce technologies permit personalization: Merchants can target their marketing messages
to specific individuals by adjusting the message to a person’s name, interests, and past purchases.
The technology also permits customization—changing the delivered product or service based on
a user’s preferences or prior behavior. Given the interactive nature of e-commerce technology,
much information about the consumer can be gathered in the marketplace at the moment of
purchase. With the increase in information density, a great deal of information about the
consumer’s past purchases and behavior can be stored and used by online merchants.
For example. When we purchase some goods, the amazon collect our name, interest, and they store
information which kinds of product we like most.
h. Social Technology
In contrast to previous technologies, the Internet and e-commerce technologies have evolved to be
much more social by allowing users to create and share with their personal friends (and a larger
worldwide community) content in the form of text, videos, music, or photos. Using these forms of
communication, users are able to create new social networks and strengthen existing ones. All
previous mass media in modern history, including the printing press, use a broadcast model (one
to-many) where content is created in a central location by experts (professional writers, editors,
directors, and producers) and audiences are concentrated in huge numbers to consume a
standardized product. The new Internet and e-commerce empower users to create and distribute
content on a large scale, and permit users to program their own content consumption. The Internet
provides a unique many-to-many model of mass communications.
6.02 Key concepts in e-commerce: digital markets and digital goods in a global marketplace
 Digital Market
The Internet has created a digital marketplace where millions of people all over the world
are able to exchange massive amounts of information directly, instantly, and for free. As a
result, the Internet has changed the way companies conduct business and increased their
global reach. The Internet reduces information asymmetry. An information asymmetry
exists when one party in a transaction has more information that is important for the
transaction than the other party. Digital markets are very flexible and efficient because
they operate with reduced search and transaction costs, lower menu costs (merchants’ costs
of changing prices), greater price discrimination, and the ability to change prices
dynamically based on market conditions Digital Markets also enable price discrimination,
Dynamic pricing and disintermediation.

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 Digital Goods
The Internet digital marketplace has greatly expanded sales of digital goods. Digital goods
are goods that can be delivered over a digital network. Music tracks, video, Hollywood
movies, software, newspapers, magazines, and books can all be expressed, stored,
delivered, and sold as purely digital products. Currently, most of these products are sold as
physical goods, for example, CDs, DVDs, newspapers, and hard-copy books. For example.
Amazon buy and sales all kinds of digital goods like, cell phone, laptop, and all kind of
digital goods.
6.03 Types of e-commerce
The three major electronic commerce categories are business-to-consumer (B2C) e-commerce,
business-to-business (B2B) e-commerce, and consumer-to consumer (C2C) e-commerce.
Business-to-consumer (B2C) electronic commerce involves retailing products and services to
individual shoppers. amazon.com, which sells books, software, and music to individual consumers,
is an example of B2C e-commerce.
Business-to-business (B2B) electronic commerce involves sales of goods and services among
businesses. Amazon.com Web site for buying and selling of digital goods is an example of B2B
e-commerce.
Consumer-to-consumer (C2C) electronic commerce involves consumers selling directly to
consumers. For example, amazon.com enables people to sell their goods to other consumers by
auctioning their merchandise off to the highest bidder, or for a fixed price.
 Ecommerce revenue model
A firm’s revenue model describes how the firm will earn revenue, generate profits, and
produce a superior return on investment. Amazon.com earn money with six revenue
models: advertising, sales, subscription, free/freemium, transaction fee, and affiliate.
 Advertising Revenue Model
In the advertising revenue model, a Web site generates revenue by attracting a large
audience of visitors who can then be exposed to advertisements. The advertising model is
the most widely used revenue model in e-commerce,
 Sales Revenue Model
In the sales revenue model, companies derive revenue by selling goods, information, or
services to customers. Companies such as Amazon (which sells books, music, and other
products), all have sales revenue models.

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 Subscription Revenue Model
In the subscription revenue model, a Web site offering content or services charges a
subscription fee for access to some or all of its offerings on an ongoing basis. Content
providers often use this revenue model.
 Free/Freemium Revenue Model
In the free/freemium revenue model, firms offer basic services or content for free, while
charging a premium for advanced or special features. For example, Google offers free
applications, but charges for premium services.
 Transaction Fee Revenue Model
In the transaction fee revenue model, a company receives a fee for enabling or executing a
transaction. For example, eBay provides an online auction marketplace and receives a
small transaction fee from a seller if the seller is successful in selling an item.
 Affiliate Revenue Model
In the affiliate revenue model, Web sites (called “affiliate Web sites”) send visitors to other
Web sites in return for a referral fee or percentage of the revenue from any resulting sales.
For example, My Points makes money by connecting companies to potential customers by
offering special deals to its members.
7 Telecommunications, Internet and the wireless Technology in Amazon
7.01 Telecommunication Amazon web services:
Enable agility, accelerate innovation, and bolster your competitive advantages by building a
scalable communications infrastructure on AWS. Unlock the ability to pursue new, easily scaled
revenue growth opportunities such as software based network functions, lot and expanded
connectivity offerings, analytics and managed B2B services all while enjoying increased
efficiency in your core connectivity workloads. Plus, by adopting AWS robust cloud based
technology in your current solutions, you join a diverse and global ecosystem of patterns and gain
the opportunity to rapidly develop, deploy and distribute new product offerings that meaningfully
enhance both new and existing customer's experience.
Benefits:
 Globalize your offerings and extend your reach;
 Accelerate innovation increase agility;
 Drive efficiency with real time insight;
 Pay for what you use;
 Explore use cases big data and analytics digital business service.
7.02 Digital Business Service for Telecom:
Share your expertise, expand your reach and enjoy benefits of scale by providing digital business
services like streaming media, customer portals and loT platforms on AWS. Take advantage of

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highly scalable, elastic and secure cloud services to accelerate development and deployment of
your offerings while driving efficiency. With the AWS partner ecosystem, you can expand your
reach by promoting your products to AWS Global customers all while reducing your capital
Infrastructure investment.
 Over-the-top Delivery:
Deliver and monetize highly scalable Over-the-top experiences to your customers AWS Media
services and Amazon cloud Front. With The ability to encode, Originate, Monetize, And
deliver live and stored content to all of their device, AWS Can help extend your customer
engagement and drive additional revenue.
 Related Products
i. Amazon API gateway;
ii. Amazon Cloudfont;
iii. AWS Elemental Media Package.
 Related Resources
If it were not for AWS and the third party content delivery network, we would not be able to
provide this service as it would have cost millions of dollars in computing infrastructure. we
are so confident in the availability and the capacity that we extended the services to all mobile
users.
7.03 Big Data and Analytics for telecommunication:
Surface powerful insights about your business by leveraging data from your operations, customer
base and network. From informing retention programs and identifying effective customer offerings
to developing preemptive maintenance programs for your network components. Big Data
Analytics Solutions from AWS help you create outstanding customer experience.
By developing a highly available, Stable And automatic data pipeline in the AWS Cloud Enjoy
responsiveness agility and flexibility in your decision making by providing your data scientist and

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business stakeholders with a holistic 360- degree view leveragess relevant data in real time. Plus
With automated cost effective solutions for data lifecycle management, ensure your data is
accessible, allowing you to eliminate the need for complicated, time intensive, on premise data
management solutions for network and call data records.
7.04 Head of Telecommunications Sales Strategy and Operations:
Amazon Web services.lnc.("AWS") is looking for head of telecommunications sales and strategy
and operations to manage all aspects of the worldwide telecommunications vertical field
operations activity to deliver timely and equal accurate business insights, decision support,
strategic project/ program management and omco sales operations and own core planning
processes. This is a highly visible role and the right candidate must have the ability to influence at
all levels across Sales, Marketing Solution Architecture, Business Development Professional
Services, Legal Finance and other Operations teams. This person will partner with the head of the
Telecommunication vertical organization to define and develop the strategy to achieve business
goals, while establishing a structured and disciplined management framework, holding all cross
functional leaders accountable for their ongoing inputs and delivering results. They will own all
periodic business reviews and the overall assessment of business performance, and where
necessary, drive ownership of corrective actions to ensure organizational goals are exceeded.
The successful candidate must be a strong leader and will draw upon solid analytical critical
thinking and problem solving skills to effectively manage the WW Telecommunications
operational concedence.
The Candidate must be able to roll up his/her sleeves and work directly with the models, be detail
oriented analytical and have excellent problem solving abilities.
They will influence the continuous improvement of forecast models, Segmentation, Frameworks,
Sales incentives, Marketing incentives, Business intelligence/ Reporting tools and other field
activities to enable operational goals. He/she will have superb Communications and customer
relationship skills outstanding analytic insights and be a passionate advocate for their customers
through other internal parties. He/she will drive towards simple scalable solutions to difficult
problems, have excellent project management skills and be able to communicate Complex
Strategies for analytical results both written and verbally in a clear and easy to understand way.
7.05 Overview of Amazon Web Services
Internet to things:
AWS loT Core AWS loT Device Defender
Amazon FreeRTOS AWS loT Device Management
AWS loT Greengrass AWS loT Events
AWS loT 1-Click AWS loT SiteWise
AWS loT Analytics AWS loT Things Graph
AWS loT Button AWS Partner Device Catalogue

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8 Ethical and Social issues of information system in Amazon
Ethics are the principles of right and wrong individuals, acting as free moral agents, use to make
choices to guide their behavior. Information systems raise new ethical questions for both
individuals and societies because they create opportunities for intense social change.
In today’s business environment, market is becoming more rapidly changing and highly
competitive. This is due to the increased globalization and existence of a huge number of
businesses in the market place. Amazon.com is a prominent Internet retail company in E-
commerce. Its business includes Business-to-Business (B2B) and Business-to-Customer.
Information systems raise new ethical question foe the Amazon Company.
8.1 Key technology trends that raise ethical issues for the company
The doubling of computing power every 18 months has made it possible for most organizations to
use information systems for their core production processes. As a result, our dependence on
systems and our vulnerability to system errors and poor data quality have increased which raised
ethical issue for Amazon Company.
Advances in data storage techniques and rapidly declining storage costs have been responsible for
the multiplying databases on individuals by private and public organizations. These advances in
data storage have made the routine violation of individual privacy both cheap and effective.
Massive data storage systems are inexpensive enough for regional and even local retailing firms
to use in identifying customers.
Advances in data analysis techniques for large pools of data are another technological trend that
heightens ethical concerns because companies and government agencies are able to find out highly
detailed personal information.
Finally, advances in networking, including the Internet, promise to greatly reduce the costs of
moving and accessing large quantities of data and open the possibility of mining large pools of
data remotely using small desktop machines, permitting an invasion of privacy on a scale and with
a precision heretofore unimagined.
These all may raise ethical issues for the Amazon Company.
8.2 Nonobvious relationship awareness (NORA)
A new data analysis technology called nonobvious relationship awareness (NORA) has given both
the government and the private sector even more powerful profiling capabilities. NORA can take
information about people from many disparate sources. Amazon Company use it for gathering
information of its potential and permanent customer.

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NORA technology can take information about people from disparate sources and find obscure,
nonobvious relationships. It might discover, for example, Amazon Company use it for keeping
records of its individual customer and the transection of the company.
8.03 Ethical analysis
As a company Amazon Company can use a five-step process that can help the company:
 Identify and describe clearly the facts. Find out who did what to whom, and where, when,
and how.
 Define the conflict or dilemma and identify the higher-order values involved. Ethical,
social, and political issues always reference higher values.
 Identify the stakeholders.
 Identify the options
 Identify the potential consequences of its options.
When Amazon Company confronted with a situation that seems to present ethical issues, the
company should use that analysis.
8.04 Candidate Ethical principles
Once the analysis is complete, what ethical principles or rules should you use to make a decision?
This question is arrived, to solve this question it is helpful to consider some ethical principles with
deep roots in many cultures that have survived throughout recorded history by the authority of the
amazon company:

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i. Do unto others as you would have them do unto you (the Golden Rule). Putting yourself
into the place of others, and thinking of yourself as the object of the decision, can help you
think about fairness in decision making.
ii. If an action is not right for everyone to take, it is not right for anyone (Immanuel Kant’s
Categorical Imperative).
iii. If an action cannot be taken repeatedly, it is not right to take at all (Descartes’ rule of
change). An action may bring about a small change now that is acceptable, but if it is
repeated, it would bring unacceptable changes in the long run
iv. Take the action that achieves the higher or greater value (Utilitarian Principle). This rule
assumes you can prioritize values in a rank order and understand the consequences of
various courses of action.
v. Take the action that produces the least harm or the least potential cost (Risk Aversion
Principle). Some actions have extremely high failure costs of very low probability or
extremely high failure costs of moderate probability. Avoid these high-failure-cost actions,
paying greater attention to high-failure-cost potential of moderate to high probability.
vi. Assume that virtually all tangible and intangible objects are owned by someone else unless
there is a specific declaration otherwise. (This is the ethical “no free lunch” rule.) If
something someone else has created is useful to you, it has value, and you should assume
the creator wants compensation for this work.
8.05 Information Rights of the Amazon Company
Privacy is the claim of individuals to be left alone, free from surveillance or interference from
other individuals or organizations, including the state. Claims to privacy are also involved at the
workplace. Amazon Company has the right of the privacy of information.
Computer Crime and Abuse
Though Amazon Company has the information privacy right, it can become the victim of computer
crime and Abuse. Computer crime is the commission of illegal acts through the use of a computer
or against a computer system. Computers or computer systems can be the object of the crime, as
well as the instrument of a crime. A cybercriminal can do some illegal task which can affect the
amazon company`s data and other things.
Such as:-
i. Identity theft: A cyber-criminal impersonates someone else identity to practice
malfunction. This is usually done by accessing personal details of someone else or by
accessing a company’s database
ii. Hacking: The Company can be attacked by a hacker. A hacker can hack the database and
can destroy important data of Amazon Company.

35 | P a g e
Moreover, as a Company Amazon has some Ethical and social issues of Information system which
has some advantage and disadvantage.
9 Project Management in Amazon. Com
Amazon web services is continuing to pioneer in the public sector and is seeking a project manager
within the public sector enablement team to implement unique, scalable programs FOR the
business. This role encompasses both designing project plans that will accelerate each initiative
while also tactically implementing each project individually and alongside team members.
The Successful candidate will combine a solid understanding of sales and marketing dynamics, a
keen eye for detained the ability to synthesize vast information while making it usable amongst a
global sales audience. This Individual will be a key member of the global sales enablement team,
examining existing business practices while identifying new initiatives that would result in Time
savings and increased sales effectiveness. Examples of the project that will be driven by this
individual include building out enablement resource for multiple lines of resources into internal
knowledge management systems and developing resources to consistently leverage internal CRM
tools. The Successful candidate will be at the center of the team, will be comfortable driving results
in an ambiguous environment, and will be part of the glue that helps our team operate efficiently,
effectively and happily. This individual must have 5+ years of a combination of relevant
experience serving sales and business development organizations and project management
experience in audition ot Strong written and verbal Communication skills. Experience within
public sector industries is highly preferred.
Responsibilities:
 For each initiative develop a project plan and communicate strategy with global programs
manager and relevant leader and stakeholders; fully own end to end progress against
targets.
 Partner with team program managers to develop, executive, and fulfil Programs as well as
develop, new Programs to meet emerging needs spanning multiple lines of business and
geographic Regions.
 Develop cross-functional sales enablement resources and content for global sales team
while leveraging existing resources for implementation and roll out of programs.
 Perform detailed needs assessment in collaboration with various stakeholders within the
global sales enablement team.
 Identify project roadblocks, research and present root- cause analysis, and manage
resolution.
 Design and implement metrics of measure impact, effectiveness, appropriateness and
utility of Programs. Measure and report on the effectiveness of sales enablement
investments through dashboards and quarterly reports.

36 | P a g e
 Maintain scheduled deadlines, detailed project status reports and introduce processes to
optimize management of project across the global sales Enablement team.
 Conduct continuous feedback and socialization efforts with team Program managers and
additional stakeholders, creating a continuous improvement loop for enablement programs.
 Partner with Public sector training team to educate the field and introduce new programs.
10 Operational Excellence and Customer Intimacy of Amazon:
10.01 Operational Excellence of Amazon
When Amazon started in 1995, it was a site that only sold books. Within a month of its inception,
the company had already shipped books to over 40 different countries. Since then, Amazon has
become one of the world’s largest e-commerce companies, accounting for around 44% of total e-
commerce sales in the United States for 2017.
At Snap Agency, we specialize in crafting data-driven solutions that position our clients for
continuous growth. We’ve spent the past eight years developing innovative digital marketing
strategies to help a wide range of B2B and B2C businesses maximize leads and sales. We’re also
proud to provide the resources e-commerce companies need to thrive in the ever-changing world
of digital. So today, let’s take a look at seven reasons why Amazon is enjoying such tremendous
success.
i. Innovation:
Amazon’s success largely stems from its innovative technologies and practices, many of
which were championed by its CEO, Jeff Bezos. Consider the Echo, Amazon’s impressive
voice command device. Echo can be used to play songs, research your favorite sports
teams, and even check the weather with a few spoken words. This innovative technology
was a huge investment for the e-commerce giant—one that fostered exceptional results.
Over 22 million Echo units were sold in 2017 alone.
ii. Customer Service:
Because of its commitment to world-class customer service, Amazon has developed a
range of helpful tools users can employ to track packages and quickly return or exchange
ordered items, bringing simplicity and convenience to their online shopping experiences.
Amazon’s Customer Service team has won multiple awards for its dedication to preventing
and swiftly addressing problems for customers. One of Amazon’s overarching missions is
to become the planet’s most customer-centric company—and the brand’s dedication to this
goal has paid dividends. Social media is another powerful tool that Amazon employs to
engage with shoppers and enhance the quality of its customer service. When done right,
social media channels can help your e-commerce business address customer concerns and
build a solid foundation of loyal and passionate followers who advocate your brand. That’s
why many e-commerce companies work with Snap’s Social Media Team to refine and
grow their social presence.

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iii. Execution:
Amazon gets everything right when executing customer orders. They select products and
services that customers want and need—and leverage distribution centers across the globe
that allow them to quickly ship products. Amazon also has excellent vendor relationships
that allow them to offer customers discounted pricing. The world’s largest online retailer
is also ramping up plans to invest more across Europe this year, employing thousands of
more employees. They’re also looking to implement brick-and-mortar stores that will have
the capability of same-day-delivery via drones!
iv. Diversification:
Starting off as an online bookstore, Amazon now offers everything from soup to nuts.
Literally. A search of the site reveals over 3,000 listings for vegetable soup. Search the
term “nuts” and you’ll see over 37,000 results. Amazon now carries products in music,
books, electronics, health and beauty, automotive, grocery and clothing. Business owners
can contract with Amazon’s network of pros to get IT support, furniture assembly and even
A/V services. By diversifying its offerings, Amazon is continuously driving reach and
relevance.
v. Outstanding User Experiences:
A strong UX makes it easy for e-commerce customers to find what they’re looking for and
move further down the conversion funnel, resulting in more sales. That’s why Amazon
employs a full UX team comprised of professionals in everything from user research and
interaction design to web development. These UX experts collaborate with Amazon’s
engineers, product managers and executives to create seamless user experiences that drive
customer conversions.
vi. An “IN IT TO WIN IT’’ mindset
Does anybody really remember when Amazon was unprofitable? If you’ve been around
for a while, you might remember Bezos’ warning to investors that it would be a long time
before they would see a return. Back in 1997, he told Inc. Magazine that Amazon would
be unprofitable for a very long time. His “in it to win it” mindset kept the company pushing
through new strategies until 2003—when the company posted its first profit. No matter
how you look at it, Amazon has grown up from a little online bookstore to an industry
giant. You could even say Amazon created the industry for total domination.
10.2 Customer Intimacy of Amazon
The Amazon brand has not only built a unique business proposition (retail, cloud services,
entertainment, technology), but it also dominates part of our Brand Intimacy Report and Rankings.
If we asked you to think about the warm and fuzzy attributes the Amazon brand connotes, could
you name any? Probably not. So how does it perform so well in driving what ultimately matters
most—how consumers feel about the brand?
First, a little background on what we mean by Brand Intimacy. Through recent advances in

38 | P a g e
neuroscience and psychology, we have a better understanding of the decision-making process. We
now know emotion is the driver of decisions, and our rational minds retrofit our selections after
the fact. Furthermore, behavioral science suggests how we feel about a brand is the best predictor
of behavior.
Brand Intimacy is at the heart of this new thinking. We have been studying it for several years,
initially by understanding shifts and updates in the worlds of technology, marketing, and science,
and then by undertaking in-depth, qualitative, online communities research to better explore and
understand the very idea of Brand Intimacy. This resulted in over 20,000 brand stories across the
United States, Germany, and Japan. Finally, we have completed quantitative research with 6,000
consumers, encompassing 52,000 brand evaluations in the United States, Mexico, and the UAE to
validate and better understand the implications and performance of intimate brands.
Central to the model are the archetypes. These six archetypes are consistently present, in part or in
whole, among all intimate brand and identify the character and nature of ultimate brand
relationships. In retail, the fulfillment archetype dominates. Fulfillment is defined as exceeding
expectations, by delivering superior service, quality, and efficacy.
As an online retail pioneer, Amazon delivers fulfillment from simultaneously tinkering narrowly
around every pixel of the customer journey to broadly expanding the ecosystem of influence and
boundaries of what you can effortlessly buy and have shipped to your door. This experience drives
the feeling of confidence and trust within Amazon’s customers.
We’ve also learned that retail brands that score well in fulfillment, the retail category archetype
driver, generally have a larger percentage of fusing stage relationships with their customers.
Amazon is winning in Brand Intimacy by building stronger bonds with its customers, and that
bodes well for its future success. Amazon outperforms the category against the archetype that
matters most, which has driven a strong 44 percent of its customers to experience some form of
intimacy with the brand. By comparison, the category average is 29 percent.

39 | P a g e
By being pervasive, direct and peerless in fulfilling customer needs, Amazon has established itself
as essential. It has become a new brand staple in people’s lives, something upon which they
depend. Although it does not promote an emotionally-oriented brand promise, the Amazon brand,
indeed, has anchored itself squarely in the hearts of its users, becoming a brand they feel connected
to and that they identify with.
11 Conclusion
Amazon is a revolutionary e-marketplace that is both world-renowned and extremely efficient,
amazon has gone from a small company run out of a garage, to a fortune 100 company run all over
the world. Amazon fulfills their mission statement every day by being a customer-centric company
that offers over two hundred million products at the lowest price possible. Amazon is a very
innovative company that creates and manufactures many products. They are always expanding and
trying to create new ways to make their company and the lives of the customer better.
Amazons biggest competition as an e-marketplace is eBay. Amazon currently leads this market by
having a more organize, effective, professional, and easy to use website. Furthermore, Amazons
brand personality is that they are a fast, friendly, innovative company that can be trusted. All of
these traits make amazon he website where most customer choose to do their right shopping. Also,
visa reward card provide many benefits to their members and make shopping on their website
quick and easy. Overall, amazon has developed into one of the most important and successful
companies in the world today.

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