Holmes Institute: IT Impact on Amazon Business Report - HC1041

This report analyzes the critical role of Information Technology (IT) in Amazon's business operations, focusing on the e-commerce giant's implementation of IT systems. It explores the necessity of IT for Amazon's survival in the competitive market and the specific IT technologies employed, including ERP (Oracle), CRM, and cloud computing. The report highlights the advantages of IT implementation, such as sustainable competitive advantages, improved customer satisfaction, and flexible user interfaces. It also identifies potential risks associated with IT, such as data theft, server breakdowns, and social disruption. Furthermore, the report discusses the importance of maintaining and monitoring IT services to mitigate risks and ensure smooth business operations. The report concludes by emphasizing the significance of IT in Amazon's business strategies and overall success, providing a comprehensive overview of IT's impact within the organization.

Running head: NEED FOR IT IN AMAZON
NEED FOR IT IN AMAZON
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Abstract
The main purpose of this assignment is to deal with the Information System usage by the
organization that s Amazon. This company provides a number of services to the
customers on a global platform. The organization uses major technologies within the
Information System architecture for providing effective and enhanced services to the
customers. The major aspect of this assignment is to put focus on the requirement of the
information system within their organization as well as the benefits that could be adhered
by the organization for the usage of this Information Systems. Moreover, the associated
risks that could be identified regarding the implementation of the Information systems are
also discussed within this assignment. Thus, it can be depicted that this assignment will
put an enhanced reflection on the stated organization regarding its Information System
implementation and this study will also provide a clear assessment of the overall IS
functionalities within the stated organization.

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Table of Contents
1. Introduction.....................................................................................................................................3
2. Need of IT at Amazon...................................................................................................................3
3. Necessity of IT for surviving in business...................................................................................3
4. Requirement for implementing IT within Amazon....................................................................4
5. IT technologies adhered by Amazon.........................................................................................4
6. Advantages of IT implementation at Amazon...........................................................................5
7. Risks identified with the implementation of the IT services....................................................5
8. Maintaining and Monitoring the IT services of the organization............................................6
9. Conclusion......................................................................................................................................6
10. References...................................................................................................................................7

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1. Introduction
The main aspect of this report is to deal with the importance of information
technology and its related features in the environment of the multinational company
Amazon Inc. of America. This will put a clear assessment on the functional areas
regarding the businesses that are carried out by this organization for the overall execution
of the business (Heeks, 2017). The concerned areas in which this report will be dealing
with are the factors that is adhered by this organization for the proper application of the
information technology. The concept of the information technology within the functional
areas of Amazon Company, the potential advantages that the organization can face with
the implementation if the information technology and the maintenance of this technology
within the organization and many other constraints are provided in the accompanying
report.
Amazon Inc. is a multinational company, which is based in Seattle of Washington,
America (Amazon, 2015). The business fields that the company focuses on are
incorporated as cloud computing, artificial intelligence, e-commerce and digital streaming.
The competitors of this international brand are Apple, Google as well as Facebook. The
company has established their business in the stated fields. The organization is very
popular regarding their e-commerce site Amazon.com and the organization provides
services of cloud computing that is very beneficial to individuals as well as for the
organizations that are availing services from this company.
2. Need of IT at Amazon
The organization of Amazon focuses on the E-commerce services that is provided
to the consumers for the efficient as well as enhanced products, which are offered to the
users of the organization. The platform of Amazon can be depicted as an important
identified business, where the IT services can be implemented for the betterment of the
services as provided by the organization. The organization carries out their business in two
fields that are business to consumers as well as business-to-business. The
implementation of the IT services within the organization is said to put an enhanced focus
on the businesses that are provided by the organization (Mignerat and Rivard, 2015). The
IT services that are being implemented within the organization of Amazon is believed to
enhance the business of the organization with the effective productivity as well as cost-
effective services to the customers associated with the organization. The IT services are
said to provide effective customer facilities that can amplify the growth of the organization
as well as build a strong customer base thus reflecting a positive effect in the business
strategies of the organization.
In accordance to the growth of business in the organization as well as the growing
internet users, the organization tends to improve their services by implementing IT
technology within their business areas of the organization. This is identified as an
approach that is significant for the processing of businesses for Amazon and similar e-
commerce industries. The e-commerce website of Amazon faces a traffic of customers
that are trying to adhere facilities from the organization for which proper and enhanced
techniques of the implementation of IT services are necessary (Chen et al., 2016). This it
can be depicted that the organization of Amazon needs the implementation of the IT
services within their organization for providing better services as well as achieving
sustainable growth within the market of e-commerce industries.
3. Necessity of IT for surviving in business
With the growth of the information technology in modern times, the e-commerce
industries like Amazon started to implement the innovations for amplifying their business
skills and strategies. The strategies as set by the organization is said to be effectively

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maintained and achieved by the implication of the Information Technology innovations.
Moreover, the efficiency of the facilities that are provided to the customers are also said to
get improvised that will attract more customers to get associated within the organization
(Winn, 2016).
The most enhanced facilities that are identified with the implementation of the
information technology is depicted as the customer satisfactions regarding the shopping
site of Amazon as well as the entertainment features that is provided to the customers with
the Amazon Prime Video services. This entertainment site is one of the most popular
among the customer as they can enjoy excellent streaming quality of various movies and
web series, thus enhancing the providing services of the customers. The organization uses
various technologies regarding the IT technologies, which will be described in the section 5
of this report.
4. Requirement for implementing IT within Amazon
The main requirements that are identified within amazon for implementing IT
innovation are provided as follows:
Enhanced Planning: Amazon firstly needs to identify the changes that they want to
implement within their organization. Then they need to plan the structure of implementing
the changes that can effectively put a positive impact within the organization (Berman,
2016). This planning is to be structured by the management of the organization as well as
its employees for the enhanced improvement in the services of the organization.
Management Support: The technological implication that are suggested by the enhanced
planning committee of the organization should be backed up the top level managerial
support as without them the implementation could not be successful (Laudon and Laudon,
2016).
Implementation cost: The cost regarding the implementation of the IT technology within
the organization must be effectively used in accordance to the planning committee as well
as the managers of the organization. The budget for the implementation of the IT
technologies is to be planned effectively before the implementation as the overall
implementation procedure can fail afterwards.
Device Installation: The devices or the implementation of the necessary hardware and
software associated with the necessary IT innovations in the environment of Amazon. The
team associated with the implementation as well as installation of the devices that will put
an impact in the organizational change should adhere all the possibilities regarding the
device implementations for providing better results.
5. IT technologies adhered by Amazon
Various IT technology changes were implemented by the organization for the
smooth functioning of the overall system will be discussed in this section (Alessia et al.,
2015). The technologies are significant, by which the effective as well as enhanced
technology changes are to be provided to the users of this organization. The description of
the IT technologies are as follows.
ERP Implementation: The organization already possess a strong customer base that is to
be well organized or structured for providing enhanced services. Thus, a huge database is
necessary regarding the storage of this information (Polacco and Backes, 2018). In this
case, Amazon uses the ERP systems of Oracle to maintain the huge database of the
customers for future enhancement of the users.

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CRM implementation: For attaining the satisfaction as well as loyalty of the customers
associated with Amazon, the organization intends to implement the customer relationship
management for maintain the database of the customers with the records of credit card,
order records, transaction records and the personal information that can enhance the
customer satisfaction in future.
Cloud Computing implementation: The customers information as well as the product
that are being provided to the customers are all stored in the cloud environment of the
organization so that they can be accessed from any part of the server locally present in the
network environment of the organization (Attaran, 2017). The database of the overall
organization is stored within the network server environment of the organization that is
duly accessed by the customers as well as management of the organization for enhanced
services in the overall business process.
Moreover, the organization is also thriving towards the implementation of the more
new technological innovations so that the organization can enhance its position within the
global market aspect (Ferreira and Moreira, 2015). The next section will be dealing with
the advantages of the IT implementation within this organization.
6. Advantages of IT implementation at Amazon
As stated above the technologies are implemented for the technological innovation
within the organization, the depicted advantages are stated below:
Sustainable Competitive Advantage: With the successful implementation of the
technological innovations, the organization is set to gain a potential competitive advantage
among the various stakeholders present within the organization (Lehmann and Joseph,
2015). This is said to enhance the supply chain management system of the organization of
Amazon thus gaining a competitive advantage in the global markets.
Better satisfaction to customers: The organization is set to provide enhanced services
to the customers with the implementation of the IT services. The customers thus will be
facilitated with the IT services, which will provide great satisfaction to the customers further
leading to the attraction new customers (Amrollahi, 2016). This will enhance the
organization to build strong customer base.
Flexible user interface: The user interface of both the shopping site as well as the
amazon entertainment site are developed in such an ease of access manner that it
facilitates the user in a smooth manner. Thus the flexible user interface is determined as a
criteria which will provide great satisfaction to the users of the organization.
7. Risks identified with the implementation of the IT services
Various potential risks are identified by the organization with the implementation of
the IT services. These are explained below:
Theft of Data: As the overall data of the customers are stored within the network server of
the organization, it is quite possible for the theft of data (Rittinghouse and Ransome,
2016). Thus, the data of the trusted customers are set to vulnerabilities if the server
environment is affected by the potential threats that can emerge in the server environment
of Amazon.
Server Breakdown: The malware or the virus attacks that can occur in the server
environment of the network can also lead to the breakdown of the overall server thus
resulting in the disruption of the whole infrastructure of the organization.
Social Disruption: The ineffectiveness of the supply chain system of the organization can
put an adverse effect within the potential customers associated with the organization. This

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can lead an enhanced disruption in the field of customer satisfaction thus diminishing the
customer base, which will further lead to the failure of the organizational success.
8. Maintaining and Monitoring the IT services of the organization
Due to the identified potential threats regarding the organization of Amazon as
stated above the software, maintenance team must analyse the overall business
procedure of the organization for any kind of threats or vulnerabilities that might occur in
the server environment of the organization (Madon and Krishna, 2018). These potential
threats are to be monitored as well as maintained by the software maintenance team so
that the necessary data of the customers is not hampered. The enhanced team of
development must take the matter in proper concern regarding the maintenance of the
software, which will effectively tend to provide services to the customers present within the
organization.
9. Conclusion
Thus, the above report puts a clear reflection on the implementation of the IT
services within the organization of Amazon. The potential and important aspects regarding
the implementation are well justified within the overall report. The effective advantages that
the implementation provides are well explained along with the identified threats of the
organization. Thus, it can be concluded that the organization of Amazon tends to
implement more innovated IT services within the organization that will amplify the growth
of the business thus providing enhanced satisfaction to the customers.

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10. References
Alessia, D., Ferri, F., Grifoni, P. and Guzzo, T., 2015. Approaches, tools and applications
for sentiment analysis implementation. International Journal of Computer Applications,
125(3).
Amazon, E. C. 2015. Amazon web services. Available in: http://aws. amazon.
com/es/ec2/(November 2012).
Amrollahi, A. 2016. A process model for crowdsourcing: insights from the literature on
implementation. arXiv preprint arXiv:1605.04695.
Attaran, M. 2017. Cloud computing technology: leveraging the power of the internet to
improve business performance. Journal of International Technology and Information
Management, 26(1), 112-137.
Berman, B. 2016. Planning and implementing effective mobile marketing programs.
Business Horizons, 59(4), 431-439.
Chen, H. M., Schütz, R., Kazman, R., and Matthes, F. 2016, January. Amazon in the air:
Innovating with big data at Lufthansa. In 2016 49th Hawaii International Conference on
System Sciences (HICSS) (pp. 5096-5105). IEEE.
Ferreira, O., and Moreira, F. 2015. Cloud computing implementation level in Portuguese
companies. In Improving Organizational Effectiveness with Enterprise Information
Systems (pp. 51-71). IGI Global.
Heeks, R. 2017. Information and communication technology for development (ICT4D).
Routledge.
Laudon, K. C., and Laudon, J. P. 2016. Management information system. Pearson
Education India.
Lehmann, J., and Joseph, S. (Eds.). 2015. Biochar for environmental management:
science, technology and implementation. Routledge.
Madon, S., and Krishna, S. 201). The Digital Challenge: Information Technology in the
Development Context: Information Technology in the Development Context. Routledge.
Mignerat, M., and Rivard, S. 2015. Positioning the institutional perspective in information
systems research. In Formulating Research Methods for Information Systems (pp. 79-
126). Palgrave Macmillan, London.
Polacco, A., and Backes, K. 2018. The amazon go concept: Implications, applications, and
sustainability. Journal of Business and Management, 24(1).
Rittinghouse, J. W., and Ransome, J. F. 2016. Cloud computing: implementation,
management, and security. CRC press.
Winn, J. K. 2016. The secession of the successful: The rise of Amazon as private global
consumer protection regulator. Ariz. L. Rev., 58, i.