New Information System for Amazon Australia

Introduction to Information System
New Information System for Amazon
Australia
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Introduction to Information System
Executive Summary
Amazon.com is a leading retailer selling wide range of products online through the
various distribution system. It is founded in 1994 by Jeff Bezos. The company also
provides various services other than the e-commerce like cloud computing, AWS, and
sell products under their private labels.
They also have a centralised information system, which aligns every activity related to
the business operations of the company. It integrates with the supply chain and logistics
of the company, which help them in regulating the value chain effectively.
In this report, the views and issues of various stakeholders are described with the
recommendation of a new information system to provide better customer experience. In
addition, various views have been explored related to the Human Activity System
(HAS).

Introduction to Information System
1. Introduction
Amazon is one of the leading e-commerce industry, which is also known for its
innovation and disruptive technology. The company strategic goal of diversification and
expansion can easily be seen with the help of their continued growth and vision and
their customer-centric strategy is one of the critical success point, which makes them
the leader in this industry.
In addition, Amazon can use the help of the Human Activity System (HAS) which will
help them in gaining their vision and mission more effectively. This system is just
theoretical, not exists in reality, and expresses some purposeful purpose human activity
(Aggarwal & Ryoo, 2011). This means that they are intellectual constructs and are not
integrate with actual real-world activity. Indeed, the human interaction will have a
straight influence on the performance of the system when an individual move from a
natural system to human natural system.
Amazon information system plays an important role in the business operations of the
company, which help them in providing better services to the customers. However, with
the integration of Human Activity System in their information system, there will be the
rise in the competitive advantage, which will help them to gain more customers.
In this report, the overall analysis of the operation of Amazon will be done including its
value chain, competitive strategy, information system and these are will be analysed
with the help of several management approaches and models.
2. Part 1
2.1 Part 1- question a
An electronic e-commerce company, Amazon was founded in 1994 by Jeff Bezos. It was
started as a bookstore making a presence online but later diversified through selling
various other products like cd, DVDs, video games, furniture, jewellery and other
electronic items. With the time, Amazon is able to accomplish its mission with their
dynamic strategies and innovation. It also becomes second largest online selling retailer
in terms of sales and the largest by market capitalization (Davis & Khazanchi, 2008).
For every other country, Amazon has a different domain name so that the customer can
get their product easily and their home currency prices (Hu, Liu, & Sambamurthy,
2011). The success of Amazon strategy lies in their long-term goals with the integration
of strong values and cultures. Their approach of being customer-centric organization
also helps in expanding worldwide. In the segment of product selection, they always

Introduction to Information System
sustain leadership as by offering many products and services. One of the major
strategies of Amazon is its positioning which includes finding a Niche market and
targeting that category. They also take advantage of the approach of customer
personalization.
Considering Amazon operations, they are various key decision areas, which the
company make focus - Designing of goods and services, Management of superior
quality, process and capacity design, location strategy, layout design and strategy,
human resource and job design, supply chain management and scheduling (Arnott &
Pervan, 2008).
Other than the online retail business, with the help of innovation and disruptive
technology, Amazon is also a leading presence in AWS (Amazon Web Services) which is
used by many big companies like Netflix, and they are also investing in drones to make
deliver a product with them in future. In addition, they have also had self-made branded
products including Kindle, fire stick, OS, Echo devices with a personal assistant and
many more (Newcombe, Rath, Zhang, Munteanu, Brooker & Deardeuff, 2015).
This shows that innovation with disruptive technology is a part of Amazon strategy,
which also makes them one of the leading e-commerce in the world.
2.2 Part 1- question b
In the management approach of Mintzberg, it is stated that different structures of the
organizations arise from the different characteristics that shape them. A leader in the
industry always finds the best and effective way to integrate the main internal and
external elements and redesign them for the purpose of continuous improvement.
There are different structures of Mintzberg’s Organization types, which includes
professional organization, divisional organisations, innovative organizations, machine
organizations and entrepreneurial organisation (Lunenburg, 2012).
The organization form Amazon Australia is a divisional organisation. The main reason
behind this statement is that the nature of divisional organization includes different
business units and product line and they are all controlled by the central headquarters.
The main advantage of this structure is that it helps line managers to make more
control over the operations and business decisions, unlike the machine structure.
Amazon.com headquarters is located in Seattle, Washington and their various sub-
branched are spread in different countries of the globe having a unique structure and

Introduction to Information System
all make their own decisions according to the local market segment (Cappos,
Beschastnikh, Krishnamurthy & Anderson, 2009).
2.3 Part 1- question c
Value chain analysis helps an organization in evaluating its primary and secondary activities
that add value to their products (Soosay, Fearne & Dent, 2012). It also helps organization in
finding out the best way to reduce cost and climate waste and thus increase profitability
by gaining an advantage over the competition.
Primary Activities of Amazon Australia –
Inbound
Logistic
s
Operations Outbound
Logistics
Marketing
and Sales Service
Firms Infrastructures Human Resources Technology
Development Procurement
Primary Activities Secondary Activities

Introduction to Information System
 Inbound Logistics – In this primary activity of value chain, Amazon Australia
takes full responsibility for logistics, customer service and the return of product
in any case. The orders, which are fulfilled by Amazon (FBA), are linked with this
inbound logistics aspect of their value chain. For example, if a person orders a
piece of furniture from Melbourne, Australia and that product delivers by FBA
instead of FBM (Fulfilled by Merchants), the customer can able to get the choice
of one day or two day delivery with free shipping and other benefits (Kawa,
2017). This will increase the efficiency of the whole value chain; however, the
process also depends on various other factors.
 Operations – In Melbourne Australia, Amazon.com have successfully opened
their 24,000 square metre centre and this fulfilment centre will be situated in
Pellicanos M2 Industry Park. In addition, Amazon’s head office will be located in
Sydney headed by Rocco Braeuniger (taking the role of country manager). The
AWS segment of Amazon will help the company in making a global presence over
the sales of online servers and database, cloud computing and other services for
the several agencies, universities and start-ups. Business organization whether
on large or scale find it beneficial as AWS offers more than 516 services and
features (Newcombe, Rath, Zhang, Munteanu, Brooker & Deardeuff, 2015).
 Outbound Logistics – Amazon Australia had made various agreements with the
agents for the purpose of distribution of goods. They will also rely upon various
other business organization for the fast delivery of the products such as FedEx,
UPS and TNT (Chesbrough, 2011). The aim of Amazon Australia here is to pull
more amount of customers by making their company different from the
competitors in terms of service and not only in the price. The outbound logistics
of Amazon also includes, - Fulfilment centres, digital delivery and physical stores.
 Marketing and Sales – Various vendors in Australia are using Amazon Marketing
Services in Australia as this is helping them in boosting their sales through
performance-based advertising. Amazon Marketing Services enables vendors to
sell their products to the right buyers with highly personalised targeting (Cyr,
Hassanein, Head & Ivanov, 2007). Amazon also consists of various solutions for
the rise in awareness and increase of the conversion rate in the marketplace.
This includes Sponsored products, headline Search Ads and Product Display Ads.
 Services – For every organization, an exceptional customer service is the major
source of value creation and in the case of the Amazon, it can easily be seen with
their vision statement stating that they want to be the Earth most customer-
centric company. One can easily find how well the Amazon is in terms of
customer service is. However, In Australia, Amazon also offers coaching
programs to the sellers, which help them in getting alert about the opportunities