An Analysis of Information Systems in US Online Retail Businesses

This research project delves into the significant impact of information systems on the retail sector, specifically analyzing their influence on large online retail businesses within the USA, such as Amazon, Walmart, and Best Buy. The project's core objectives include assessing the impact of information systems on the operations of these businesses, determining how these systems affect customer service relations, and evaluating the role of management information systems in promoting effective customer relations within Small and Medium Enterprises (SMEs). The project explores the rationale behind the increasing adoption of IT for competitive advantage, the significance of customer relationship management, and the benefits that SMEs can derive from implementing information systems. The methodology involves an interpretivism research philosophy and a deductive research approach, focusing on secondary data analysis. The project also covers theoretical perspectives like bureaucratic and administrative management theories and offers recommendations for businesses to leverage information systems effectively.

Research Project

Table of Contents
CHAPTER ONE: PROJECT PROPOSAL......................................................................................4
1.1 Topic.....................................................................................................................................4
1.2 Title of the research...............................................................................................................4
1.3 Background of the research...................................................................................................4
1.4 Rationale of research.............................................................................................................5
1.5 Significance or importance of research.................................................................................6
1.6 Aim of research.....................................................................................................................6
1.7 Objectives of the research.....................................................................................................6
1.8 Theory overview cust rel management theories....................................................................6
1.9 Method of analysis................................................................................................................7
1.9.1 Evidence..................................................................................................................................9
CHAPTER TWO: LITERATURE REVIEW................................................................................10
2.2 Impact that Information systems have on the operations of large online retail businesses
within the USA..........................................................................................................................10
2.3 Usage of information systems highly affects the customer service relations.....................12
2.4 Role of management information system in order to encourage effective customer relation
in SME's....................................................................................................................................14
CHAPTER 3: METHOD OF ANALYSIS....................................................................................16
3.1 Type of investigation...........................................................................................................16
3.2 Research philosophy...........................................................................................................16
3.3 Research Approaches..........................................................................................................17
3.4 Data collection....................................................................................................................17
3.5 Ethical considerations.........................................................................................................17
CHAPTER 4: DISCUSSION, RECOMMENDATION AND CONCLUSION............................18
4.1 Discussion...........................................................................................................................18
4.2 Recommendations...............................................................................................................19
4.3 Conclusion...........................................................................................................................20
REFERENCES..............................................................................................................................22

CHAPTER ONE: PROJECT PROPOSAL
1.1 Topic
The impact of information systems in retail business within USA.
1.2 Title of the research
An analysis of the impact of information systems used for processing data in large online
retail businesses such as amazon.com, bestbuy.com and WalMart.com within the USA, and its
effects on their Management of Customer Relations.
1.3 Background of the research
Information technology mainly called as IT refers to the consumption of computers in order to
retrieve, store, manipulate, transmit information and data. IT is commonly used in reference to
business operations which is just opposite to the personal as well as entertainment technologies.
It has also been said that IT considered as the subset of information & communications
technology. In addition to this, an information technology system refers to the information
system, communications system and a company system which consist of software, hardware as
well as peripheral equipment which is operated by only specific group of users (Logan, 2020). In
this report, Walmart is the organization chosen by the researcher which is an American
international retail corporation which usually operates the range of hypermarkets, grocery stores,
discount department stores. Its headquartered in located in Bentonville, Arkansas and was
founded in the year 1962 by Sam Walton & was incorporated in October 31, 1969. According to
April 30, 2020, it has been identified that Walmart has around 11,484 stores as well as clubs in
the almost 27 countries where they operate with around 56 different names. Another organisation
which is chosen in this research is Amazon, which is an American multinational technology
organization mainly based in Seattle which emphasize on cloud computing, e-commerce, digital
streaming, AI or artificial intelligence. This organization was founded by Jeff Bezos in the year
1994 which is considered as one of the biggest technology companies (Lee, 2017). Apart from
this, Best Buy Co., Inc. Is also chosen as the base entity which is also an American international
consumer electronics retailer business entity. The headquartered of Best Buy is based in
Richfield, Minnesota. The company was basically founded by Richard M. Schulze & James
Wheeler in the year 1966 which was known as Sound of Music. In this
context,higherauthoritiesof the business entity planned to conduct a research on this topic so their

knowledge related to information technology system will be increased. The investigation will
also assist in examining the ways with the help of which they can easily maintain positive
relationship with their customers at the market place of USA. For this, aim and objectives related
to the topic are framed by the researcher in an effective and appropriate manner. Along with this,
the present research includes all the information based on secondary method which is quite
effective and efficient method (Wamba and et. al., 2017).
1.4 Rationale of research
Presently, information technology capabilities have changed from their traditional roles
in the business sector and have been transformed as a means to create competitive advantages
and increase market share, (Alavitalab, 2017).
Large retail companies that have an online presence have been able to use their
information systems to store customer data and have used that information to help other
customers and have noticeably profited more than SMEs in both their IT-enabled improved sale
and costs saving because the SME’s rate of adopting IT systems have remain relatively low.
SME’s that do not implement Information systems into their operations have failed to realize
maximum benefits and profitability from investment in personnel, equipment, and business
processes. SME’s account for a major part of a country’s workforce, but their limited resources
and lack of managerial foresight usually prevents them from implementing such systems
(Ghobakhloo, 2011).
Additionally, the profitability and benefits of having adequate Customer management
relationship in businesses not only depends on the use of quality information systems but also on
service orientation and service processes. This is an area which large online businesses have
effectively made use of, but SME’s are still lacking in (Ku, 2010).
Hence the rationale of this study is to investigate the impact that Information Systems
technology have on large online retail businesses and identify how their approaches can help
SME’s to realize maximum benefits such as better management of customer relations and
increased profits from the investment and use of information systems. This study will also help
future researchers to under the intricacies of Information systems as well as small to medium
enterprises managers to enhance their knowledge and understanding of how the administration of
their business using information systems will be improved in an effective manner (Jha and et. al.,
2020).

1.5 Significance or importance of research
The current investigation provide detail knowledge about the concept of information
technology systems and its impact on managing customer relationship effectively. All these will
assist in performing each and every activity related to processing data in the large onlinebusiness
sector (Abbasi, Sarker and Chiang, 2016). This is the research which is quite significant for
student’s as well as for the organization and for other Scholar’s who are going to conduct the
investigation in near future. If talking about company, by conducting this research their overall
performance and profitability will be increased in the competitive market place.
1.6 Aim of research
The research aim for current study is “To analysis the influence of information systems
used intheprocessing data in large online retail businesses within USA as well as its effects on
their Management of Customer Relations.”
1.7 Objectives of the research
 To conduct an analysis of the impact that Information systems have on the operations of
large online retail businesses within the USA.
 To determine how the use of these systems affects customer service relations
 To analyse the role of management information system in order to encourage effective
customer relation in SME's.
1.8 Theory overview
The present investigation is based on the topic To analysis the influence of information
systems used in the processing data in large online retail businesses within USA as well as its
effects on their Management of Customer Relations.” This is the research for which aim and
objectives are developed by investigators on the basis of which whole investigation are going to
be conducted. For this information from various different secondary sources are gathered by
researchers related to the topic which assist in drawing valid conclusion in an effective and
appropriate manner (Grover and et. al., 2018). The first objective is to examine the impact of
information technology systems on the business operations of large scale business enterprise.
According to an analysis in the present competitive environment where technology is growing on
fastest manner and it becomes essential to adopt upgraded technologies and equipment for
maintaining the level of competition. Use of information technology systems have their own

positive and negative impact on the business performance at the marketplace of USA. Another
objective framed by researcher is how these systems are going to be used by investigator for
maintaining positive and strong relationship with their customers at the market. There are some
methods with the help of retailing sector can implement information technology systems within
their organization in an effective manner and can develop positive relationship with their
customers in an efficient manner (Akter And et. al., 2016). According to the last objective,
recommendations are given to the small and medium business entity about how these systems are
going to be useful for them while doing their business functions at the marketplace of USA.
There are various customer relationship as well as management theories that can provide
an overview of the topic of this research. Technology is advancing at an increasing rate and it has
become essential for companies to implement the latest technology in their workplace. This is
because it helps in managing the large amount of data in an effective manner. As per the
bureaucratic theory of management, it is important to have a particular structure for the business
and there should be rules and regulations that are presented in the form of a hierarchy. Apart
from this, principles of administrative management explain the different principles that managers
within an organisation have six important roles. The roles include organising, commanding,
controlling, coordinating, planning and forecasting.
Therefore, if information systems are implemented within the respective company, the
managers will have the responsibility of planning and over looking the complete process. This
will help it in making effective decisions and the company will be able to implement the systems
effectively. Thus, it will also allow the company to form long-term relations with the customers
and retain the loyal ones for a greater period of time. This will further lead to the company
attracting a greater number of potential customers and connect with them. As a result, the
company will gain customer loyalty and the overall revenue of the firm will also increase.
1.9 Method of analysis
In the present investigation, researcher is going to adopt various methods and techniques
with the help of which they can easily gather relevant information and data related to the specific
topic. It is the strategy which includes various sort of elements such as research approaches,
research philosophies, research strategy, sampling, time horizon, techniques, methods of data
collection, procedure and many more (DeLone and McLean,2016). The most essential as well as
significant elements which needs to be consider by the researcher while conducting an

investigation. The most common factors are going to be discussed as follows. Research
Philosophy is the main element which is define as the belief based on which information is being
gathered, examined and evaluated for producing positive outcomes. It has also been said that
there are two main types of research philosophy which includes positivism as well as
interpretivism. In reference to the present investigation, researcher adopts interpretivism
philosophy for developing positive outcome on the basis of information gathered from human
being. The overview of the research philosophy says that primary data is mainly generated with
the help of interpretivism is usually linked with relatively high level of the authenticity as well as
validity. Implementing interpretivism form of research philosophy will help the researcher in
understanding the reason of the particular research problem. Apart from this, another advantage
of this type of research philosophy is that it can provide a good understanding of different social
processes.
Another element which needs to be consider by the investigator is Research Approach. It
has been said that there are commonly two main approaches which includes inductive as well as
deductive. In reference to deductive approach, researcher adopt this method as it is based on
quantitative method which includes all the facts, figures and numerical data. This is the approach
which is quite helpful in order to draw valid outcome on the basis of deductive research
approach. Therefore, researcher adopt inductive research approach for conducting the whole
investigation in a proper and systematic manner. The overview of this research is that
investigator mainly adopt inductive approach so the whole effectiveness as well as efficiency of
the investigation will be managed and controlled in an effective manner. This is also because it
will ensure the efficiency for a longer period of time. Inductive approach will help the researcher
in conducting the research in a flexible manner. Inductive approach is primarily concerned with
the generation of a new theory which is based on the data.
Research Method is the another element which requires to be consider by the researcher
before gathering data as well as information which consist of two types of method. These are the
methods commonly used by investigator so that they can develop authentic as well as accurate
outcome based on the information collected by researchers. These methods are quantitative as
well as qualitative research method. In reference to quantitative research all the information
gathered by researchers are in the form of numerical whereas in term of qualitative research
method all the information which are not including facts, figures, graphs are comes under this

(Soto-Acosta, Popa and Palacios-Marqués, 2016). The scope of this research is that qualitative
method is the used by researcher where every information gathered by them are in detailed
manner. It will provide a depth and detail about the attitudes as well as behaviours of the
respondents. Also, it will help the researcher in being more specific, sampling as well as
concentrated. As a result, the overall process of decision making will be more informed and
effective.
Data collection is the most essential as well as crucial method used by researchers where
they select primary and secondary methods for collecting data and information. In case of
primary method all the information are gather for the first time and for this researcher use
questionnaires, survey, online polls and many other methods. Whereas in case secondary method
all the information gathered by investigator are available on various online platforms, books,
journals and many other publications. In this research, investigators use only secondary research
methodology which is cost as well as time effective. This is because secondary data collection
methods will not only be a relatively faster way of collecting information, but also the researcher
will be able to tailor the large amount of data that is available. As a result, all the information are
being gathered by the researcher on the specific topic with the help of online websites,
newspaper, books, articles, journals and many more. Different advantages include ease of access,
can help in clarifying a particular research question and ensure that reliable, accurate and valid
results are available to the readers.
1.9.1 Evidence
It has been said that data gathered for the present investigation is in the form of qualitative
secondary method of data collection which assist in providing guarantee for the validity of
research. In the present research, data was collected by researchers with the assistance of
different databases like Goggle Scholar, journals, peer-reviewed articles, books and journals
related to information system which assist in maintaining positive relationship with customers in
the field of retail sector (Brynjolfsson, Mcafee, 2017). At first total number of 20-30 articles has
been reviewed which assist the investigator in order to gather information which are authentic
and accurate needed to conclude the whole investigation. Apart from this, it has also been said
that all the article’s which has been gathered and reviewed are not more than 10 years so that
they can ensure the validity of research.

CHAPTER TWO: LITERATURE REVIEW
The second sector is literature review analysis which is mainly divided into three parts
where main focus is on the impact of information system on processing data as well as its affect
on the managing customer relationship within online retailing sectors which aimed to understand
the whole topic in an effective and appropriate manner (DeLone and McLean, 2016). The main
focus is based onamazon.com, bestbuy.com and WalMart.com as these are the largest online
business sector. It is said that Amazon, BestBuy and Walmart are the three biggest online
business which deals on online platform and satisfy the requirements of customers in an efficient
and effective manner. It is a section which consist of gathered information from various online
articles, google scholar, journals and many more which assist in collecting information and data
related to the topic (Randall, Goel and Abujamra, 2017).
2.2 Impact that Information systems have on the operations of large online retail businesses
within the USA.
As per the opinion of Salehan& Kim, (2016), information systems define as the tools which are
both hardware as well as software which assist retailers in order to attain success and growth at
the competitive marketplace or in a dynamic business environment. It has also been identified
that they mainly serve various functions consist of planning, managing budgets, and controlling
inventory along with sales goals. In order to produce and distribute desired information, business
information systems consist of collections of integrated processes that Use infrastructure in a
company. These systems were designed to assist company-associated decision-making in the
achievement of its goals. Data systems can minimize an organization's levels through the
provision of information to managers to track greater amount of jobs, and provision of decision-
making powers to lower-level staff (Iberahim and et. al., 2016). Incorporating information
systems have consequences for work plans, procedures and employees. Information systems
apply safeguards on staff processes to ensure that all activities can be completed only by users
with the necessary rights. In addition, information systems reduce repetitive activities and boost
reliability so that workers can focus on even more high-level operations (Pruzan, 2016).
After analysing various articles and view point of different authors regarding information
systems, it has been concluded that by adopting information technology overall level within the

business organization can be reduced whereby giving information to the higher authorities
related to how they can manage huge amount of workforce as well as by giving rights to them
related to taking decisions. Therefore, it can easily be understood that information system help in
reducing excessive layers from the workplace which increases the overall profitability and
revenue of the company at the competitive environment. Apart from this, it has it has also been
said that implementing information system at workplace has its own consequences associated to
the task arrangements, people or workforce, structures and many more. From last few years it has
been faced that communication and computing is the field which faces high revolution as well as
each and every business entity use these technologies at their workplace for grabbing
opportunities at the competitive world (Morimura and Sakagawa, 2018). Apart from this,
because of modifications in technology system not only lives of individuals but the way business
organisation perform their operations have also been changed in a fastest manner. It has also
been said that adopting information technology system in the functionality of a business,
organisations possess the potential or capability to reach huge number of customers, will be able
to introduce new and innovative products as well as services in a quick manner, collaborate with
various business partners and suppliers across the whole wide world. If we talk about online
retailing business sector, it becomes necessary for them to implement information system in their
functions as it highly affects their profitability as well as performance of the business entity in a
positive and effective way. The retail sector is a major part of supply chain (Soto-Acosta, Popa
and Palacios-Marqués, 2016). Retail is place for selling products to end users. Retailer buys
large-scale goods and products from manufacturers and markets them in lower amounts to
customers. In managing complex retail operations, IT plays a vital role. The secret to achieving
competitive advantages in the retail sector in the collection and analysis of consumer data is
business awareness along with data and information management. The biggest impact which is
gain by online retail business entities is that implementing information systems help in the
growth and development of organisation which leads towards the rise in customer base. This also
help in satisfying requirements of customers in an effective manner as the main reason behind
this is that they provides high quality service to them as the level of working reduces in an
effective manner from the online business entity.
On the basis of view point of Koong, Liu and Liu, 2020, it has been said that after
examining and considering the level of increased competition in the present environment,

business organisation ensure that they will be able to gain competitive advantages at the
marketplace, increase their productivity, performance, customer base as well as economic
indicators, reduce costs with the help of implementation of integrated information systems. All
these things are related to information technology system which highly affects the profitability
and performance of online retail businesses working within the USA market in both positive and
negative way (Libicki, 2016). If talking about Amazon, it has been said that this is one of the
largest online retailing business entity trade across the whole wide world and have huge market
share which makes them more stable and competitive at the marketplace. More positive changes
to Amazon IT system can make an excellent e-strategy and can evaluate the flexible changes in
customer request and requirements. This method allows them to be doing better than the market
and to get far more attention from customers. But for maintaining the same level as well as for
grabbing new and innovative opportunities available at the marketplace, it is required by the
higher authorities of such business entity to implement information system innovatively and
effectively so that they can easily improve their overall profitability and revenue (Madon and
Krishna, 2018). According to an analysis in the present competitive environment where
technology is growing on fastest manner and it becomes essential to adopt upgraded technologies
and equipment for maintaining the level of competition. Use of information technology systems
has their own positive and negative impact on the business performance at the marketplace of
USA (Grover and et. al., 2018).
It has also been said that the higher authorities need to implement information system
within their organization in an effective manner so that they can easily produce positive impact
and grab attention of large number of customers towards them. Due to the increase in level of
competition in the retailing sectors within online business at the market place of USA, there must
be implementation of information system in an effective and appropriate manner so that they can
develop positive results which leads towards the growth and development of the company like
Amazon, Walmart, BestBuy (Suyono and et. al., 2017).
2.3 Usage of information systems highly affects the customer service relations
As per the thought of Choshin and Ghaffari (2017), it is said that the overall value of a
customer shows on the benefit as well as on the cost which arise in both present and future. It
becomes very difficult to satisfy the requirements of customers as the needs and wants of
customers are dynamic in nature which always changes. This needs to be analysed by the