Analysis of IT Governance Effectiveness in Amazon Business Strategy

This report examines the effectiveness of IT governance in Amazon's business strategy. It explores how Amazon, starting as a small online bookseller, leveraged technology and IT governance to become a global e-commerce leader. The report highlights Amazon's use of Big Data analysis for customer service, digital marketing strategies, and adherence to regulations like PCI and SOX to ensure transaction security and customer satisfaction. It emphasizes the impact of IT governance on Amazon's business expansion, customer-centric approach, and the importance of complying with IT regulations for sustained success. The analysis also delves into the relationship between IT governance, customer data utilization, and the company's commitment to innovation and customer-focused services.

Running head: Report On the effectiveness of IT governance in Amazon business strategy
REPORT
ON
THE EFFECTIVENESS OF IT GOVERNANCE
IN
AMAZON BUSINESS STRATEGY
Name of the student
Name of the University
Author note:

1IT Governance
Amazon’s IT governance:
From the year 1998 the business of Amazon has been accounted as an effective
service provider, at that time whose primary services were to sell the music and videos. Later,
the company has introduced their online book selling services. However, followed by the
years the services of the company has been expanded to by adding more products into their
services which includes the Video games, home appliances, game, software as well as the
electronic devices. Considering the overall business progress of Amazon it can be stated that
the journey from a small selling company to one of the largest international business holds
significant lessons to other company in order to expand their business following the digital
strategy. Followed by the mission to become one of the most customer centric company
Amazon has started their journey which has then star experimenting with different types of
customers with different fields. Since, the customers of Amazon has been increased from a
small number to a worldwide view it has been noticed that as the year passed and the
business has been increased it has included customers like developer, seller, consumer,
enterprises as well as the creators. Followed by the mentioned aspect the owner of Amazon,
Jeff Bezos has always expressed his interest towards to become more innovative, faster, and
easier as well as customer dominated company (Berman et al., 2018).
After analysing the nominated article which has discussed about the Amazon business
strategy several significant aspects have been identified which are described below:
Followed by the above-mentioned strategy it is visible that Amazon has successfully
incorporated leveraging technologies into their business structure. Since, Amazon has
initiated their online business they have also expressed their interest towards making it more
expandable. Followed by these aspects it has utilizes the technological capabilities in order to

2IT Governance
enhance their marketing as well as there cost leadership strategy of Amazon business process.
While discussing about the implementation of the technologies into the Amazon business
strategy there is a significant impact of IT governance has been noticed as IT governance
stands for a process by which the capabilities as well as the efficiency of information
technology will be utilized in such way that the it can meet the organizational objectives.
Along with the IT governance, IT demand governance is the process by which the
organization will provide the assurance that they are utilizing the IT resources as well as its
related resources in proper way to extract the business profit. From the nominated article it
has been identified that Amazon used the Big data analysis tool in order to analyse the user
data which has helped them to provide more customize services to their customers. Along
with providing more customize services, digital marketing is also one of the strongest
business aspects of Amazon. Considering these aspects, it has been also noticed that the
mentioned company has thoroughly followed the regulations related to the utilization of
information technology which has helped to address their strategic mission (Conaway et al.,
2018). According to the PCI (Payment Card Industry) standards it has mentioned that an
organization or a service provider must be aware of the card fraud cases and needs to reduce
the card fraud cases with highest priority. Along with reducing the fraud cases it must
increase the protection to the financial card transactions. An organization such as Amazon
must follow this regulation as it has been observed from the business scenario of Amazon
that the organization holds several stakeholders who are cardholders. This regulation also
states that in case of any merchant it is also their responsibility to maintain the security
standards with all its related stakeholders. Along with the PCI standards SOX (Sarbanes
Oxley act) is also one of the impactful regulations of the financial transactions with respect to
the public reliable companies. Since, it is mentioned above that Amazon is a customer centric

3IT Governance
organization whose fundamental motive is to satisfy its customers thus it has been observed
from their business success strategy they have successfully followed by the IT regulations by
which it has been noticed that they have not utilizes the customer information for their
organizational purpose without concerning with that person.
Hence, it can be state from the investigation of the nominated article that Amazon has
followed by the strategic path of satisfying the customers by which they have successfully
expanded their business. Along with that they have maintained the regulations related to the
product safety and the transaction security of all the stakeholders. Thus, it can be concluded
that in the business success of the Amazon IT governance holds a significant impact on it.

4IT Governance
Reference:
Berman, S., & Dalzell-Payne, P. (2018). The interaction of strategy and technology in an era
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Chang, J., Van Witteloostuijn, A., Eden, L., Eden, L., Miller, S., Hitt, M., ... & Lau, C. M.
(2018). Strategy in emerging economies. In International Business in the Information
and Digital Age (Vol. 41, No. 2, pp. i-xiv). Amsterdam, The Netherlands: Elsevier.
Conaway, R. N., Regester, K., Martin, S., Nixon, C., & Senior, B. (2018). Amazon Whole
Foods: When E-Commerce Met Brick-and-Mortar and Saved the Brand of
Conscientious Capitalism. Journal of Marketing Development and
Competitiveness, 12(3).
Nolder, C., & Palmrose, Z. V. (2018). Economic analysis of proposed PCAOB standards:
Finding a path forward. Accounting Horizons, 32(2), 183-200.
Wilson, D., Roman, E., & Beierly, I. (2018). PCI DSS and card brands: Standards,
compliance and enforcement. Cyber Security: A Peer-Reviewed Journal, 2(1), 73-82.