Information Systems in Amazon: A Comprehensive Analysis

Information System in Amazon

Contents
Introduction................................................................................................................................3
LO1 Understanding information needs within different functional areas of the organization.. 4
A.C1.1 Evaluate the information needs of at least four functional areas of your chosen
organization............................................................................................................................4
LO2 be able to compare Information Systems.........................................................................10
A.C.2.1 Describe a minimum of five different types of Information Systems used in your
chosen organizations in task 1 and give examples of each..................................................10
A.C.2.2 Investigate the current trend in using Information System applications to solve
business problems in your chosen organization in Task 1...................................................17
A.C.2.3 Evaluate the suitability of Information Systems for different functional areas of
your chosen organization in Task 1.....................................................................................19
LO3 Use Information Systems to produce management information.....................................21
A.C3.1 Use an information system to generate valid, accurate and useful information for
any given problem of your selected organization................................................................21
A.C3.2 Evaluate alternative methods of solving the problem identified in 3.1...................23
Conclusion................................................................................................................................30
References................................................................................................................................31

Introduction
Amazon is an electronic or e-commerce as well as cloud computing based company of
America. It is used to sell goods always which are out from its own warehouses. The platform
of Amazon is being utilised by both individual sellers and retailers in order to sell their
goods. The company initially started with the selling of book and now it’s selling almost
everything from A to Z. Working of such a big organisation requires the implementation of
Information system for enhancement of its business and working.
The report provided below contains the implementation of information system in Amazon
Company so as to manage the working of amazon more effectively by its adoption. The
report contains the information needs of Amazon by determining 4 functional areas of
Amazon Company. The report compares about different information systems that are being
used by the Amazon along with its requirements and applications. The report contains the
usage of an information system in order to generate some accurate, valid and information that
is useful for all generated problem of Amazon Company.

LO1 Understanding information needs within different functional areas of the
organization.
A.C1.1 Evaluate the information needs of at least four functional areas of your chosen
organization.
Introduction
Amazon is an electronic or e-commerce as well as cloud computing based company of
America that was founded 23 years ago on July 5, 1994 by Jeff Bezos. Amazon.com used to
sell goods always which are out from its own warehouses. The company initially started as a
seller of book, simple and pure but in last few decades it has branded itself into all additional
based areas of products along with the sale in the third party which overall represents its
revenue in good chunk. The platform of Amazon is being utilised by both individual sellers
and retailers in order to sell their goods.
The company initially started with the selling of book and now it’s selling almost everything
from A to Z. Working of such a big organisation requires the implementation of Information
system for enhancement of its business and working. As a growing company Amazon use to
think a lot ahead of its going time. It has focused its eyes on even more balls in comparison to
an average E-commerce based company.
Functional Areas of Amazon
A functional area proves to be a crucial part of Amazon Company as it desires to achieve all
its decided aims and objectives. The functional areas must be completive enough for
organization betterment. A certain functional area used to support a certain type of developed
aims or objectives.

Figure 1: Basic Functional Areas of Amazon
Several functional areas defined are:
 Functional area of operation and production department
The management of production and operations is defined as the crucial parts of
Amazon Company as they grant business related services to various customers that
are being offered by an organisation. It is a desired system that offers various services
and goods to its customers according to their desired needs and requirements. The
operational function proves to be beneficial for Amazon Company and the main aim
to have operational functions are:
o It helps in maintaining as well as organizing all desired resources that are both
efficient and effective.
o It helps in earning necessary resources that provides various services regarding
the goods production and sale so as to track the working in a business.

Figure 2: Functional area of operation and production department
 Functional area of marketing department
The marketing function even play a vital role in Amazon Company as it is used to
promote the goods as well as services to several customers that are being offered
Amazon Company. The promotion of goods is done in order to aware customers
about the services a company grants to all of its customers.
o Depending on the requirements of the customer, the company used to produce
several products.
o A lot of market based research is being conducted in order to determine the
current requirements of the customer.
o Various promotional activities are being carried out like advertising and
publicity for spreading awareness regarding the developed products within the
customers (Stair and Reynolds, 2017).

Figure 3: Functional area of marketing department
 Functional area of finance department
Amazon Company manages all its finance related issues by finance related
department. This department of finance deals with subjects like budgeting of Amazon
Company. It even accounts about the payments made with the company and even
manages all account books. Finance department manages the records and relations of
investors and simultaneously monitors and manages the usage of money in the
company itself. It carries out the auditing along with the maintenance of departmental
records regarding all financial transactions and later use to analyze them all. Finance
department used to play a vital role in Amazon Company as it can’t be run without the
money.

Figure 4: Functional area of finance department
 Functional area of Research and Development department
The Research and Development even plays a crucial role in Amazon Company as it
monitors every product and goods lifecycle. R&D department is very much separated
from rest of the departments like operations, finance and marketing. R&D department
helps Amazon Company to compete well with its opponents and make a stand in this
world just by coming up with entire new things and attracting the crowd towards
itself. The department is even responsible for determining the recent technology and
updating the qualities of the product. The R&D department even verifies the product
quality that is developed by Amazon Company (Kim and Solomon, 2013).