Amazon is a well-known platform for the retailers and individuals since 2000. Amazon.com serves as types of customers-content creators, consumers, enterprises and sellers all over the world. Amazon.co.uk serves the consumers and the enterprises of United Kingdom. Simple Storage Service (SS) and Amazon Web Services (AWS) is the primary system developed by Amazon to adopt the information system and carry out their business venture. The information system has provided a global platform for the individuals and the retailers where they can sell their products (Zhang, Cui and Wang 2014). The information system help them to progress in the business venture, helps them in decision making and innovative approach. Thousands and thousands of customers all over the world remain engaged and search for goods online over the Amazon website. The Customer Relationship Management (CRM) system is accumulating the information from the customer through searching, wish list, data mining and others. The customer’s purchase list can be acquired with the help of CRM, based on CRM Amazon acknowledges customers’ purchase list and the latest trends. Based on the data acquired, the database of Amazon keeps a record of every detail of the customers’ wish list, purchase list. Amazon has built a system for tracking the intruders as well (Adaji and Vassileva 2016). The system is known as Smart Analysis Search (SAS). The SAS is helpful in detecting frauds or any malicious attack with the help of specific algorithms. SAS helps Amazon to serve their customers better. The information system of Amazon is totally based on the Service Oriented Architecture (SOA) and this SOA is responsible for making information system robust and scalable. Amazon has excellent refund policy. Amazon treats well with their customers smartly and sincerely, in this way to strengthen their customer base.
The report will highlight the information technology concepts that have the capability to change the business operations of Amazon. The concepts like ERP, CRM has helped to reach millions of customers not only in the UK but all over the world. The features like one-click payment, payment with bank card will be highlighted in the report. Amazon Go, the retail concept has been adopted with the aid of information system. Thus the information system has helped Amazon in decision making and innovative approach, the information system has helped to increase their market share and productivity as well.
One-click purchase
Amazon provides personalised shopping experiences as well as easy money transaction via bank cards (Bhargava et al. 2016). The customers if store their address, their shipping address and bank card details pretty early then they have a chance to purchase goods online with the help of just one click.
The amazon.com and amazon.co.uk use the server software which is highly secured (Chaffey 2015). The customers’ personal information, their bank card number and the customer’s details are stored in the database in an encrypted manner.
Amazon with the aid of information system has developed intelligent recommendation system via which the customers’ purchase list and the surfing data can be acquired (Zhang, Cui and Wang 2014). This helps them to know the latest trends. If any customer prefers a particular book and purchases that book, then the recommendation system of Amazon will recommend related books to the same consumer.
The Amazon e-commerce website offers lucrative search options to the customers. The customers have the scope to choose multiple items available on the internet. The customers get the opportunity to choose the desired item from various catalogues available on the e-commerce website (Chaffey 2015). The information system and the searching tools aid in browsing and finding millions of items on their website.
Enterprise Resource Management (ERP system)
The Oracle cloud database is used by Amazon as the ERP software system. Amazon has the large database that stores vital information of their customers. The ERP system facilitates the ordering system, fastens the order fulfilment (Chen and Teng 2013). The ERP system also eases the order tracking procedures and minimises the delivery issues.
The personal details of the customers, the bank card details, and customers’ purchase history can be collected, can be stored and can be acquired at the time of need with ease with the aid of the CRM (Chiu et al. 2014). The customers’ feedbacks are stored, their interest as well as the product reviews are collected and are assessed, thus Amazon can get an overview of the customers’ interest and based on their interest they can shape their business (Zhang, Cui and Wang 2014). CRM also enhances communication among the employees via email and message systems. Amazon integrates the customer services, sales as well communication as a whole.
Innovative technology
Amazon sold books, CDS and DVDs over their e-commerce website. They initially followed the B2C model however, they changed the business strategy and business model completely and direct their sales business model to sales and service model (Flanagin et al. 2014). They are conducting business currently focussing on customers and another similar business group. Amazon with the aid of information system develops cyber-book store and with the assistance of other retailers have raised a platform so that it can become a cyber-market.
The customers who visit their website for the very first time they are shown some featured products on Amazon. Later when they visit their website, the recommender system shows the products to the customers studying the customers’ demands and wishes (Huang and Benyoucef 2013). The customer relationship management system can aid Amazon to retain their customers. The CRM thus can facilitate the customers’ shopping experience.
Amazon gives priorities to the customers. The information system helps Amazon to stay connected with the customers all the time throughout day and night 24×7 services. They are ready to solve the queries of the customers all the time (Kozareva 2015). They have a customer service team who are ready to help the customers communicating with them in the language they prefer to speak.
Amazon.com and amazon.co.uk provide cost-effective service to the customers; they provide customers with the products with a much cheaper price range (Turban et al. 2017). For this reason, they are earning a relatively low profit; however, they are gaining a competitive edge that can benefit them in the long run (Zhang, Cui and Wang 2014). It has also been analysed that a product takes the very little amount of time to sell on Amazon in comparison to the other websites.
Amazon adopts various promotional strategies. The advertising strategy includes social media which enhances the promotion strategy.
To enhance the rate of sale and boost the customer traffic on amazon.com and amazon.co.uk an associate program has been designed to help the customers and the small retailers (Laudon and Traver 2013). Around 200,000 websites have been designed for the associate program by Amazon.
Electronic Customer Relationship Management
The e-CRM has the ability to accumulate data, integrate them and distribute them throughout the companies across all the countries. The e-CRM assists in sales and service of the increasing online retailing. (Adaji and Vassileva 2016). The e-CRM in today’s world is not limited to only a single channel rather it is multichannel using the e-mail, smartphones, etc. The CRM solution embellishes sales, services as well as marketing and online marketing (Li and Karahanna 2015). Thus, e-CRM helps Amazon to understand their customers better and this can help them to stay ahead of their competitors.
Due to adoption of information system and CRM, each and every customers of amazon.co and amazon.co.uk will be taken into consideration by Amazon.
The CRM has given the facility to Amazon to group customers on the basis of their choices (Mohapatra 2013). Based on their customer demands and shopping behaviour they divide the customers into groups and categories and Amazon showcases them the list or categories of items that those customers will possibly prefer, in this way the information system facilitates the recommendation system and because of this CRM they are now more close to the customers. They send the recommendations to their customers via emails and messages (Adaji and Vassileva 2016). Amazon initial target was books, however, they have now shifted their business to grocery, food items, and electronics devices as well. That is why their market is increasing and CRM is helping them out in their venture.
Customer account
A customer if wants to purchase anything from the website will have to open their profile on amazon.com and amazon.co.uk. In this way Amazon can know the customers feedbacks, information of the customers and the bank card details (Sorokina and Cantú-Paz 2016). This account helps them to know the customers better, helps them to serve the customers.
Amazon.com and amazon.co.uk always offers the opportunity to the customers to add favourite items to the wish list, in this way with the help of wish list Amazon knows about the products the customers want. They showcase the related items to the customers. Amazon offers multiple opportunities to the customers to retain their customer trust and increase their customer base (Adaji and Vassileva 2016). The opportunities like 1-click ordering give the facility to the customers to purchase items within 20 seconds. They also initiated return policy as well. The return policy helps them to gain customers’ trust more.
The return policy of Amazon has increased their productivity and sales, the customers have started to rely on Amazon even more. The customers are now getting full refunds and that is also conducted online. That is why if customers are not satisfied with the product they have bought; they are now getting the opportunity to get full refunds. They are shopping whether any kinds of risks and hassle-free (Swan et al. 2014). The Amazon has secured system where the customers can pay online. The customers even track the products; in this way the customers get assured that they will get their product on time.
Amazon with the assistance of information system has initiated the new concept Amazon Go. Amazon Go is new type of store that has come up with modern technology and some advanced features. Amazon Go has introduced new concept Just Walk Out Shopping experience. The customers will have to download and install Amazon Go app to enter the store and they do not have to stand in queues (Turban et al. 2015). The customers can chose products of their choice and after that they can simply check out of the store. As soon as they check out, Amazon sends them the receipt or bill. The customers then pay the bill.
Conclusion
It may be concluded from the above discourse that the information system has changed the Amazon’s business a lot, the information concepts like one-click purchase, secure payment using bank cards via online, the usage of CRM and ERP has facilitated the business activities. The information system has also facilitated the customer service, the return policies as well. Amazon Go, a new IT innovation from Amazon is the future of the retail industry. The information system has changed the marketing strategy of Amazon and on the basis of information system they are well ahead of their competitors.
Amazon with the help of information system and innovative approach has emerged successful in the market. They have left behind their competitors. They are serving customers from United Kingdom to rest of the world. They are selling wide range of products and they have left behind many competitors. There is no time of relaxation for the, they have to focus on innovation. They need to stay connected with the customers all the time and will have to consider their feedback well. Their feedback can help them to know if their business activities are going well or not. They will have to stay aware of the latest trends. They will have to make use of the information technology wisely so that they can get to know the feedbacks and along with that they can get to know the latest market trends.
References
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