Digital Transformation Challenges: An Amazon AI Report Analysis

This report examines the significant challenges Amazon faces in its digital transformation journey, particularly concerning the integration of artificial intelligence. It highlights the critical issues of privacy versus personalization, where the need for personalized customer experiences clashes with data privacy concerns. The report also addresses the fear factor associated with AI implementation, including the potential for financial losses and the uncertainty of product success. Furthermore, it delves into the problem of data bias, emphasizing the importance of accurate data for effective AI-driven recommendations. The report also discusses the complexities of edge computing versus cloud computing, exploring the strategic decisions Amazon must make to balance data storage, privacy, and computing resources. The conclusion underscores the importance of addressing these challenges for successful digital transformation.

DIGITAL FUTURE

TABLES OF CONTENT
• Introduction
• Main body
• Conclusion
• References

INTRODUCTION
• Digital transformation is very important for any organization in order to make sure that they are
competitive in the market. Transformation is important in any business in order to survive in the
market. Amazon being a small mail order bookstore in 1994 to a global online platform in 2021 with
$38 billion as revenue. The company used latest digital technology and artificial intelligence in order
to improve their own processes.

MAIN BODY
• The major challenges faced by the company in order to involve artificial intelligence in their
company’s management are as follows:

PRIVACY V/S PERSONALIZATION:
• In today’s world everyone needs personalized experience but personalized experience comes at
the cost of privacy. Every app which is giving personalized experience are using to private data of
the customer at a certain level (Flyverbom, M., 2018.). Privacy is a big issue as no one wants any
interference in their privacy. In a research it is analyzed that around 55 percent of people are
fearful that criminals or frauds are using their personal data without them knowing. Increasing
concern about the data security forced government to make a separate law about data protection
known as General Data Protection Regulation that restrict from using data without permission.

FEAR
• Their is a massive factor of fear I front of the company as it might be possible that the artificial
intelligence that they are investing in does not perform up to the expectations of the company. In that
case the company might have to face massive losses and may also restrict their growth (Hazas, M. and
Nathan, L.P. eds., 2018). As the company is incorporating artificial intelligence in the management of
the company and thinking about launching some products in the market on the basis of that technology
their is a high risk factor involved in the process as it is not 100 percent sure that the product will do
good in the market.

DATA BIAS
• It is important for the company to make sure that their products are not biased ad they pick up the right
information which is required in order to do work with efficiency and effectiveness. The data that the
product of the company stores are the one which enables to company to give personalized experience
to the customers (McQuillan, H., 2020.). If the data that is stored in the product is wrong then their will
be wrong recommendations for the customers which will make the company loose their customers.

EDGE COMPUTER V/S CLOUD
• Amazon uses both cloud computing and edge computing but the challenge is where to use which
computing. From these methods one is close to customer where as another is close to end points
and make sure that right system is assigned to right task is the biggest challenge in front of the
company (Radio, E., 2018, September.). While edge computing is a great in keeping privacy and
immediacy it would be better for the organizations to keep their data on edge computing fro the
point of view of customers and privacy. But in order to make sure that the company can store
bigger datasets and massive computing resources which is another essential factor for any
organization.

CONCLUSION
• From the above report it is concluded that in
order to digitally transform any company the
management must make sure that they are ready
for the challenges that are going to come in the
way of transformation journey.

REFERENCES
• Flyverbom, M., 2018. Anticipation by Data? Socio-Material Entanglements in Datafied Efforts to See,
Know and Govern Futures. In Digital Cultures: Knowledge/Culture/Technology: Conference Program
and Book of Abstracts (pp. 132-133). Leuphana University of Lüneburg.
• Hazas, M. and Nathan, L.P. eds., 2018. Digital Technology and Sustainability: Engaging the Paradox.
Routledge.
• Lothian, A., 2018. Old futures: Speculative fiction and queer possibility (Vol. 10). NYU Press.
• McQuillan, H., 2020. Weaving Futures: Adopting alternative postures to develop new methods for the
construction of textile-forms in the context of micro-manufacturing. Making Futures.
• Radio, E., 2018, September. Metadata as content: navigating the intersection of repositories,
documentation and legacy futures. In Proceedings of the 2018 International Conference on Dublin
Core and Metadata Applications (pp. 45-46).