Analysis of Amazon Australia's Human Activity System and Recommendations for a New Information System

Running head: Introduction to Information System

Introduction to Information System 1
Executive Summary
Amazon.com Inc . is conducting its business under the name of Amazon. It is an e-commerce
and cloud computing company based in Seattle, Washington. It was founded by Jeff Bezos on 5th
July 1994. It has separated its retail websites for the U.S.A., U.K. and Ireland, Canada, France,
Spain, Brazil, Italy, Australia, India, China and Mexico.
Initially, Amazon Australia dealt in online books and later on it diversified its business to video
and MP3 downloads, audiobooks downloads software, video games, apparels, food, toys and
jewelry. It also produces the electronics for its consumers- Kindle e-readers, Fire TV and tablets
and Echoes. It has also been the largest service provider of cloud infrastructure in the world. It
deals with low-end products under Amazon Basics –its in-house brand.
Amazon adopts a Human Activity System (HAS) explains the conceptual model of the human
activity. It transforms the input into output so that the stakeholder needs can be fulfilled. The
explanation of the activity can be documented in Root Definition. So, in this report, the various
aspects of the existing human activity system adopted by Amazon Australia will be explained
along with exploring its issues faced by various stakeholders. A new Information system will be
recommended along with explaining the steps to avoid future failure.

Introduction to Information System 2
Contents
Introduction.................................................................................................................................................4
Part 1) An overall analysis of the business of Amazon Australia................................................................4
a) Provide information about Amazon Australia and locate relevant information about its strategy,
how it competes in the market, and its operations...................................................................................4
b) Describe the organizational form of Amazon Australia using Mintzberg’s classification...................5
c) Present the value chain of Amazon Australia using Porter’s Value Chain Model. List and describe
the primary and support activities of Amazon Australia..........................................................................5
d) Analyze the competitive strategy of Amazon Australia using Porter’s competitive forces model.......8
Part 2) Analyzing an existing human activity system that is problematic....................................................9
a) Identification of an existing human activity system by stakeholders that is problematic along with
the analysis of the role of stakeholders in the system..............................................................................9
b) Draw a rich picture showing the issues and the concerns of the stakeholders you have identified.10
d)Use of DeLone-McLean Model of Information System Success to describe the areas in which the
existing human activity system is not successful...................................................................................11
e) Describing measures of success for the existing human activity system identified and explaining the
usage of measures where the HAS falls short.......................................................................................13
Part 3) Suggesting a new Information System support the HAS................................................................14
a) Identification of a new information system which can add value to the business of Amazon
Australia and the stakeholders involved in it.........................................................................................14
b) Description of the data and information that the new system involves and types of knowledge
which it can create and inform decision-making...................................................................................15
c)Draw a process model using the BPM notation for the newly identified information system............16
d) Classification of new information system within Amazon Australia as either: front-end, back-end,
customer-facing, or supplier-facing along with defining its reasons......................................................16
e)Description of the impact and identification of its effects of new information system within Amazon
Australia for all stakeholders.................................................................................................................17
f) Description of the measures of success for the proposed new information system............................17
Part 4) Recommendations and reflection...................................................................................................18
a)Series of recommendations to Amazon Australia’s management.......................................................18
c) Use of new information system in order to provide better service to customers and to ensure the
success of the information system.........................................................................................................18

Introduction to Information System 3
Conclusion.................................................................................................................................................18
Referencing...............................................................................................................................................19

Introduction to Information System 4
Introduction
A Human Activity System is a hypothetical mechanism which explains the purposeful human
activity which could be instituted in the real world. Such systems are notional i.e. they do not
describe the activities of the real world rather they are intellectual constructs. So, Amazon
Australia shall adopt the Human Activity Systems (HAS) which covers the aspects such as
accomplishing the vision of the business and its requirements (Sila, 2013).
So, in this report, the various aspects of the business operations of Amazon Australia in the light
of existing human activity systems shall be discussed. Also, recommendations would be given to
installing new information systems so that consumers can be served in a better way.
Part 1) An overall analysis of the business of Amazon Australia
a) Provide information about Amazon Australia and locate relevant information about
its strategy, how it competes in the market, and its operations
Amazon has launched its marketplace in Australia and it comprises of 23 categories of goods
comprising of books, computers, accessories, music, electronics, home improvement, kitchen
goods and baby care products. It has entered $300 Billions of retail market in Australia. It has
also launched its Prime subscription service in the country (Chalmers, 2018).
Technological innovation has been a part of the market strategy of Amazon. Its market strategy
and operations have been focused upon investing in technology and increasing its applications in
the sector of logistics, M& A strategy, R & D activities, AWS segments and improvement in
web services by fulfillment capacity and experimenting with Fintech (Connellan, 2017).

Introduction to Information System 5
Amazon has been investing in robotics and drones technology and has acquired patents on them.
It has around 45000 robots in its warehouses. Additionally, it has been focusing on artificial
intelligence and machine learning to increase better experiences of its consumers (Grey B
Services, 2018).
b) Describe the organizational form of Amazon Australia using Mintzberg’s classification.
In this context, the organizational form of Amazon Australia using Mintzberg's classification can
be explained by bifurcating the various successful organizations as the machine organization,
entrepreneurial organization, divisional organization, innovative organization and professional
organization. The organizational form of Amazon Australia is divisional (diversified)
organization.
This type of organization has various product lines and business units. It has central headquarters
at Washington with a number of automated divisions located in various parts of the world which
make their own decisions and have their own unique structures (Irefin, Abdul-Azeez & Tijani,
2012).
c) Present the value chain of Amazon Australia using Porter’s Value Chain Model. List and
describe the primary and support activities of Amazon Australia.
Value chain analysis is an analytical framework which assists in identifying the activities of
business which help in competitive advantage and creation of value in the business. The value
chain analysis of Amazon Australia using Porter's Value Chain Model can be explained as: