Faculty of business and management PDF

FACULTY OF BUSINESS AND MANAGEMENT
BA119
INFORMATION TECHNOLOGY IN BUSINESS
MGT300
CASE STUDY:
AMAZON DRONE KNOCKING
GROUP:
MGT300A3
PREPARED FOR:
MADAM DG KAMISAH BINTI AG BUDIN
PREPARED BY:
No Name Matrix No.
1 FUAD ISKANDAR BIN FAIZAL 2019245016
2 EVI CHRISTELYNA LOJIUS 2019429238
3 CHASVENESTELLA GEORGE 2019212038
4 MOHD RADIH RAJAIE BIN RUSLI 2019609068

TABLE OF CONTANCE
No. Topic. Pages.
1. Acknowledgment 1
2. Introduction 2
3. Main Theme of Article 2
4. Question in Case Study 3 - 8
5. Conclusion 8
6. Reference 9

1
ACKNOWLEGMENT
First and foremost, we would like to praise and thank the Almighty God for giving us the strength
and because of His blessing, we finally managed to accomplish this assignment. Without His blessing,
we wouldn’t have gone this far. This assignment cannot complete without effort and co-operation from
our group member, which are consist of Evi Christelyna Lojius, Chasvenestella George, Fuad Iskandar
Bin Faizal and Mohd Radih Rajaie Bin Rusli. We always work hard to produce a good assignment with
our full commitment and responsibility.
Therefore, we would like to acknowledge with thanks to our lecture Madam Dg Kamisah Binti Ag
Budin because without his guide our assignment cannot be done properly like this. She always gives
us supports and guide on how to do our assignment in purpose to produce a good outcome. She
inspired us greatly to work in this project. We also like to thank him for teaching us in this course.
Last but not least, we would like to express our thankfulness to University Technology Mara (UiTM)
campus Sabah for giving us opportunity to conduct this case study assignment. Finally, an honorable
mention goes to our friends and classmate because they always give us ideas an comments on our
assignment so that we can improve our assignment in many ways.

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INTRODUCTION
For this group assessment, our class are required to choose and solve one study case relating to
our subject which is Information Technology In Business, MGT300. From the case study that we are
given we are required to summarize the case study and relate with what we have learnt in Information
Technology in Business, MGT300. Our group has discussed and choose one case study entitled
“Amazon Drone Knocking”. This case study that our group selected, we will summarize them by
answering the question under the companion and guide from our lecturer.
MAIN THEME OF THE ARTICLE
The main theme of the article is, the use of drones to unload packages as it may be good for buyers,
who may want to get certain items as quickly as possible. Amazon revealed plans to start shipping
packages via flying drones via Prime Air in 2013 and recently, Amazon doubled down on one of the
new drones in action, and it’s been amazing. Amazon Prime Air is a drone courier service that aims to
increase Amazon’s shipping capabilities by providing faster delivery to their customers, while reducing
Amazon’s costs and carbon output.
The Amazon Prime Air drone looks a lot different from the one Amazon showed us a couple of years
ago. This one has a more commercial and streamlined look, and instead of showing the package
hanging in open air, the new drone hides the item in a square compartment.
There are video of the Amazon Prime Air Drone with Jeremy Clarkson on Google about how
amazing the new drone that will dramatically impact the supply chain. The drone will reached a height
of about 400 feet in vertical mode and then switched to horizontal mode to cover a distance of 15 miles
from the warehouse.
The drone also uses what Amazon calls “sense and avoid technology” to avoid collisions with other
objects in its flight path during flight. This will make the new drone looks more amazing.
Besides that, the delivery process is real and not a simulation. It started smoothly, making the
prospect of drone delivery look like something that will be feasible in just a few months and this noticed
by Amazon. However, Amazon still waiting to announce exactly when its drones will fly to the sky.

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QUESTION IN CASE STUDY
1. How will drones impact the supply chain?
These days so many technology that can surely help our community in our daily life, not only for
community also for the economy system. For example, people started to create a technology like
eVOLTs or also known as an electric Vertical Take-Off and landing aircraft. These technology capable
of flying without pilot and can prevent the vehicles from running into others aircraft because it was built
on blockchain technology that will make sure these technology is not going to bump with others aircraft
since there is no pilot who will control them. These eVOLTs have a range of 550 miles and can carry
up to 900 lbs because it was powered by artificial intelligence.
There are so many other example that they have used to help them for their daily basis and recently,
some business has tried using drones to drop off packages because it would be good for the buyer.
Back in 2013, Amazon revealed that they are start planning to delivery packages via flying drones
through Prime Air. Jeremy Clarkson has witnessed the entire process from ordering to delivery the
packages. Also, Amazon revealed that the drones can reach a height of about 400 feet in vertical mode
and then switches to horizontal mode to travel up to 15 miles away from the warehouse.
Based on the experience that the Amazon had tried before, it would be great if seller started using
drones as their one of technology in the process of delivering packages. People might wonder how
drones will impact to supply chain management? Supply chain management involves the management
of information flows and there will be stages by stages to supply packages in the same time trying to
maximize total supply and profitability. Supply chain management that includes supply chain logistic as
one of the component, drones will help to delivery the packages process. For example, store did not
need any vehicles like lorry that always stuck with jam because they have drones to delivery their
packages to their customers.
More than that, the impact to supply chain management when they are starting to use drone, it will
help to delivery the packages on time. Recently, because of Covid19, there are so many packages
were delivery late and some customers started to throw hate comments to their seller. Using the drones
will help the delivery process to be on time because drones use air to delivery than lorry who probably
stuck in the middle of road when they are trying to delivery packages.
From the Amazon researches, we can say that using drones will give impact on the supply chain
management where in they need to endure a high cost because they need a very professional people
to observe the drones. Drones that need to be used for delivery process also need a blockchain
technology that will prevent the drones from running to others aircraft. The impact of using drones based
on Amazon, we can tell that drones will give a huge impact to their profit because mostly they spend

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their profit to upgrade drone or the professional workers that help to observe the drone in their delivery
process.
Drone can give impact to supply chain management because it could be dangerous in the entire
process. As we know, when it comes to supply chain management, they need a partner throughout the
supply chain that deliver finished product, if ever one business using drone and they faced a huge
losses, no one wanted to be partnership with them because it will be effect to them too and end up
bankrupt as they need to responsible to their drone if it ever running to other aircraft.
There are so many impact that drone will effect to the entire process of supply chain management.
That is why, some of business still did not use the drones as their one of the vehicles to delivery the
packages because they need a whole strategic plan when it comes to drone. Clearly that drone will
give bad or good impact to the supply chain management.
2. Why are big retailers racing to be the first to market with drone home delivery?
Have you ever asked yourselves on why retailers love to be the one who will introduce new things
in the market? Have you ever wondered what is the reason and why this cycle of competitiveness will
always continue? Have you ever felt like the retailers does not need to be competitive in introducing
new products or services because they will also have them eventually later? Well, all of these questions
will be answered right here, right now. The reason why big retailers compete and race each other to be
the first to market with drone home delivery is because they want to be the one who first introduced the
drone home delivery. There are so many benefits for the retailers when they are known as the first to
market drone home delivery.
One of the benefits being known as the first to introduce something is customers are more likely to
choose the company based on who actually produced the products or use the services first. The retailer
who will market the drone home delivery will be the main option for the customer when they want to
use the drone home delivery because this retailer will be known as “The retailer who markets drone
home delivery service first” instead of “A retailer who have the drone home delivery servive”.Since this
retailer have the former title instead of the later, customer will choose this retailer for the drone home
service because it has been ingrained in the customers mind that since this retailer is the first one to
do the service, this retailer can surely be trusted and this is the main retailer to use the service. For
example, when a website like Amazon is the first website to have online shopping, it will be the main
website that people will mainly use to shop online. The rest of online shopping website that will come
out after Amazon will not have that much user since the customer will still use Amazon.
The other benefit being the first to market the drone home delivery service is the retailer will have
a big impact in the market causing the retailer to have a big number of customer and profits even though

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the retailer is still new. New products or new services will naturally attracts a lot of customers.
Customers have the tendency to buy new products or to use new services. The customers does not
even know if the products and services but they still want to use and buy them because it is new and
they want to experience the services. This is why the retailers are racing to have the drone home service
first in the market because they know the mentality and tendency of the customers. The retailer have
massive number of customers coming towards them just because the customers want to experience
the feeling of using the drone home delivery service. For example, when iPod came out, the Apple
company gained a lot of profit because a huge number of customers wanted to buy the iPod. The iPod
gained a lot of attention because it is unique during the time it came out and thus, attracted the
customers into buying one.
3. How can a CRM system help communicate issues in the supply chain between customers
and drones?
The delivery drone will fly automatically without the need for anyone to steer it. Each drone needs
to have the ability to send and receive information to control air traffic on a regular basis and because
these drones use what Amazon calls “feel and avoid technology”, these drones will know which parts
of the air to avoid. To do that, Amazon drones likely use Wi-Fi and cellular connections. With the use
of Wi-Fi and cellular connectivity, it can use CRM systems in helping to communicate problems in the
supply chain between customers and drone.
CRM (Customer Relationship Management) involves the management of all aspects of a
customer’s relationship with the organization to increase customer loyalty and retention and profitability
of the organization. CRM allows organizations to gain insights into customers shopping and buying
behaviors to develop and implement enterprise-wide strategies. CRM allows customers to contact the
organization through various means and this helps CRM to contact problems in the supply chain as a
single customer can access the organization multiple times through many different channels.
Data and information from an effective CRM inform supply chain decisions such as supplier choice,
delivery, supplies whose demand is higher/lower, and how customers use products through their life
cycle. Supply can meet customer demands in a more efficient way when working directly with customer
information from CRM. CRM analysis refers to how an organization uses relevant data and turns that
data into action. Supply chains can use this valuable insight about customers to meet their business
objectives.
The CRM system tracks every communication between the customer and the organization and
provides access to CRM information in different systems from accounting to order fulfillment. Since
CRM provides access to CRM information in different databases, it will make it easier for the

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organization to differentiate each customer and at the same time be able to avoid problems between
the drone and the customer such as drones mistakenly delivering customer goods.
Other than that, with a CRM system like this, it will provide data on delivery time. This is because
CRM stores information in different databases. This will help the supply chain decide when it is time to
ship the goods and at the same time can increase customer satisfaction as the goods will arrive on
time. In addition, there is also access to data that can also decipher differences or problems between
the customer and the drone which will simplify the customization process and improve it for the better.
CRM systems allow easier management for customers to receive their goods and potentially increase
customer loyalty, retention, and organizational profitability. The use of a CRM system will identify quality
problems in the supply chain and in turn enable the organization to improve its quality. If the CRM
system is managed properly, it can be detailed to identify product problems specific to suppliers.
Finally, a well-executed CRM can lead to strategic partnerships between the organization and its
suppliers. This is because, CRM systems help provide information to these organizations facilitating
strategic running smoothly between organizations and suppliers.
4. How could BPR help uncover issues in a company’s supply chain that uses drones?
Before we answer this question, what is BPR stands for and what is the use of BPR. The
abbreviation of BPR stands for Business process reengineering. It is the analysis and the redesign of
workflow in or between companies or enterprises. The reason that BPR exist is to make all the
processes in businesses are in the best condition or making the processes the best when compare to
other companies. New information technology or the abilities for the people throughout the supply chain
to communicate and the ability to control and monitor the supply chain, is often the driver of process
engineering in the organization. When the organization reengineers workflow better quality control in
the production process, companies will have an easy time and avoid difficulties during the discovery or
searchings of issues in the supply chain at their source. With the discoveries of issues in the supply
chain through breaking down processes of the bussiness and organize based on outcomes, companies
can find and remove the inefficiencies in their processes.
The answer for the question on how BPR will help with discovering the issues in a company’s supply
chain that uses drones is, the BPR will help the company to identify how long the drones take to deliver
goods. With this issue uncovered, the company can find several ways to reduce the time taken for a
delivery. Other than that, the company will also question that if the net used for delivery is suitable or is
it strong enough. This will help the company on whether the net needed to be strengthened or the cost
of building the safety net. BPR can also help the company to discover the cost of using drones compare
to human delivery. This will help the company to make decisions on whether they will be a company

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heavy focused on using drone delivery or they will be a mixed company where they use human and
drone for delivery.
5. What are the pros and cons of using a drone to delivery packages?
Unmanned Aerial Vehicle or Delivery Drone are used to deliver packages, medical supplies, food
or other goods to the local community. Most drones are used by logistics companies and retail outlets.
In 2013, Amazon conducted a study on the use of drones in shipping goods that could save time by
taking only 30 minutes or less. At the same time, Wal-Mart has also embarked on steps in testing the
use of drones to deliver goods to their customers. However, this proposal provoked many reactions to
the pros and cons of using drones in delivering packages.
To start with the positive impact of Drone delivery, one of the advantages of using a drone in
delivering goods is that it can save time. By using Drone delivery, companies can use human resources
towards more creative and innovative. Employees will have more time to run the company’s operations,
which contributes to better quality and service to customers. For example, drones can be used to deliver
goods to suburban areas or hard to reach areas that usually take longer. This makes shipping costs
more expensive than usual.
Second of all, the drone can promote us more safety. Drones can physically prevent accidents,
especially for e-commercial shippers like Amazon. Usually, employees will bear risks such as road
accidents, running out of fuel, etc. when delivering goods to customers. In addition, at the time of covid-
19, it can be seen that employees can be exposed to the transmission of the disease when sending it
to the customer's home. According to UNICEF, as many as eight countries started using drones as a
delivery market to prevent transmission during delivery. With the drone's speed, without road
congestion and limited physical contact, this drone can guarantee fast delivery and ensure human
safety.
Another advantage of Delivery Drone is High level of efficiency or accuracy. Delivery Drone can
deliver goods more efficiently when delivering goods to customers. This is due to the GPS technology
when a customer purchases goods online. Drone Delivery will navigate to a specific address
automatically. This makes drones have higher accuracy than humans, although some houses or
buildings are not mapped accurately in the GPS, but this problem will be overcome based on
technological developments in the future. Meanwhile, Amazon has used Visual Simultaneous
Localization and Mapping (VSLAM) technology in their drones. The program can help a drone develop
a map of its current surroundings, even without prior location information or GPS information.
On the other hand, Delivery Drone can be kind of a downturn as well. The major cons of Delivery
Drone are Require a technical familiarity with the product. Amazon is basically trying to create a

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technology where programmers can replace human operators. This is because buying a drone
automatically is cheaper compared to training a drone pilot who can follow the flight plan more
accurately. The operator must read the device manually and learn the procedure and spend time
learning how to fly the drone properly. This will take time and effort before this drone service can run
smoothly.
The second is a privacy breach. When Unmanned Aerial Vehicle delivers goods, they will also
record the location, property and actual people without their consent while passing through the airspace
of their home. For example, Amazon delivery drone allows the drone to get a view of its surrounding.
According to Federal Aviation Administration (FAA) Regulation says “most drone delivery testing can
only happen in rural areas, away from large population centres and airports”. That means companies
such as Amazon and Wal-Mart need to overcome some of these rules if they want to use Delivery
Drone on a large scale.
Lastly, Delivery Drone can easily be stolen. Due to the delivery drone flying through the residential
area, there is a possibility that the drone will be exposed to theft, hackers, jammers and human
attackers. Based on a study conducted by A new IMechE poll only 23% of adults support drone delivery.
This is because they are afraid of package theft and accident. Therefore, some legislation and safety
should be put in place to cover this risk, such as insurance, black box safety, etc.
In closing, the use of drones today can bring pros and cons and increase machine manpower
without affecting human labour. The use of drones should be used as an example to encourage the
development of a new era that is more modern compared to today's economic development. There is
no denying that there are unavoidable side effects in the use of drones. However, the long-term effects
will be safer and more effective if we adopt the use of these drones in our daily transmission use.
CONCLUSION
In conclusion, drone delivery services are among the technologies that humans must develop today
to drive more efficient and rapidly growing economic activities. The use of drones it not to applied in
one sector only. But, other sectors such as agriculture, business, and information technology. Human
can also use drones as one of the new mechanisms in solving any difficulties in the future. It can be
seen that the use of drones can increase efficiency and reduce the costs incurred for manpower. Further,
opening up employment opportunities in various fields.

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REFERENCES
1. Riley Panko (2020) Drone delivery: Benefits and Challenges. Retrieved from
https://clutch.co/logistics/resources/drone-delivery-statistics-benefits-challenges
2. Alfred den Bensten (2019) Optimization is all around: The impact of drones on the supply chain.
Retrieved from https://icrontech.com/blog_item/optimization-is-all-around-the-impact-of-drones-on-
the-supply-chain/
3. Frederic Lardinois (2019) A first look at Amazon’s new delivery drone. Retrieved from
https://techcrunch.com/2019/06/05/a-first-look-at-amazons-new-delivery-drone/
4. Grind Drone (2021) Pros and Cons of delivery drone. Retrieved from
https://grinddrone.com/info/pros-cons-delivery-drones
5. Bruce Takefman (2021) How covid 19 has increased the need for the drone delivery market.
Retrieved from https://researchfdi.com/drone-delivery-market-covid-19/