Individual Assignment Report: E-Business Applications and Amazon AI

This report examines Amazon's e-commerce operations and the integral role of artificial intelligence in its success. It begins with an introduction to Amazon and its core principles, followed by an analysis of its current e-commerce operations, including inventory management, supplier involvement, and market strategies. The report then highlights the importance of artificial intelligence for business survival, discussing machine learning, deep learning, and their impact on marketing, customer service, and competitive advantage. A significant portion of the report is dedicated to Amazon's specific use of AI, including the Flywheel management strategy, product recommendations, and the application of AI in areas like Amazon Go and Alexa. The conclusion summarizes the key findings and offers recommendations, such as improving electronic messaging and utilizing chatbots and live chat for enhanced customer service and effective time management. The report references several academic sources to support its analysis.

Running Head: E-BUSINESS 0
Management

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Contents
Amazon operations and artificial Intelligence.......................................................................................2
Introduction...........................................................................................................................................2
Current operation of Amazon E-Commerce..........................................................................................3
Importance of artificial intelligence for business survival......................................................................4
Use of artificial intelligence by Amazon.................................................................................................5
Conclusion and recommendations........................................................................................................6
References.............................................................................................................................................7

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Amazon operations and artificial Intelligence
Introduction
Amazon is one of the fast growing businesses that serve millions of customers in more than
190 countries. By its unique services, it is also reshaping the global enterprises. Jeff Bezos
have founded this e-commerce giant in the year 1994. Amazon believes in the four principles
such as customers focus instead of competition focused, passion, long-term thinking, and its
commitment to the operational excellence. Due to this, it brings the innovative services for its
customers time to time. the concept of online selling is the most effective step taken by the
Amazon. The services of Amazon are attracting more and more customers towards it. In spite
of this, it also works effectively by making use of the artificial intelligence in recent time.
The revenue of Amazon has also increased in the recent year due to expansion of its channel.
It has also boosted its marketing efforts as compare the fast few years. It is continuously
increasing its offering for the Australian customers by creating new opportunities for the
thousands of customers.
In the report, discussion has started with the current operations of the Amazon. Afterwards,
artificial intelligence discussion has done the uses of artificial intelligence for the survival of
the business. By taking into consideration the Amazon, artificial intelligence use in the
company has been done.
Current operation of Amazon E-Commerce
It is found that Amazon has finally launched the full online retailing service in Australia.
Amazon designing of the organization output is covered in the operation of Amazon. Amazon
address these kind of concern with the help of technology. For instance, Amazon also uses
communication and advanced information technologies in order to ensure that the retailing
services are convenient and efficient for the customers. These kinds of technologies tend to
support the efficiency of the retailing business of Amazon. The proper accessibility of the
market and resources is also the significant decision making part of the operation. For
example- Amazon tends to maintain the warehouse near the higher number of customers of
the online retaining business. Amazon operation also uses the combination of in house

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employment processes. In this way, Amazon hiring and recruitment process is directly linked
with the human resource needs and organisational growth. It is true that Amazon starts just as
an idea that proved to be the invention for serving customers. After the moving of its device
from concept to the operation, production, and supply chain management, it has expanded the
manufacturing (Song, Yang, Huang and Huang, 2019). Operation of Amazon is critical to the
supplier selection, planning, logistics, manufacturing and many more that ensures the devices
of Amazon is successfully manufactured as well as shipped by ensuring the high quality to its
customers across the globe. After the launching of amazon in Australian retailing industry,
several positive influences has been seen in the online marketing. With the support of the
third part seller, amazon has launched the in-house marketplace and retail.
In the inventory management, Amazon give emphasis on maintaining the inventory holding
and ordering. For ensuring the proper inventory holding and ordering, employees working in
the warehouse are given training to increase the speed of order fulfilment with the help of
mobile computer that is linked to the database or central computers. As per the current e-
commerce survey, it is seen that eBay has outperformed the Amazon in its online purchase
volume in Australia. For all these activities of the operations, operations managers of
Amazon consider the short-term and intermediate schedules for satisfying the market needs.
In this area, Amazon tends to rely on the suppliers involvement for the online retailing
business. For instance- It is found that the suppliers tends to access the website of the
company in determining the demand level and further implement the delivery and shipping
schedules. From the retailing perspective, Amazon is now undercutting the dominant
supermarket chain. It has opened the online storefront with more than aorubnd 150 fashion
brands. The new online stores include several brands such as Finders Keepers, Lorna jane,
Sol Sana, Cooper St, Tony Bianco, Oroton and many more. The current operation of Amazon
has taken the decision to cut off its access to US and start shipping to Australia. due to this,
not only retailers will be challenged by the Amazon (Brynjolfsson and Mcafee, 2017).
Importance of artificial intelligence for business survival
Artificial intelligence is said to be the field of computer science that tends to solve the
significant problem associated with problem solving, learning as well as pattern recognition.
Due to several advances in the network computation, machine learning and deep learning has
been derived from the discipline of the artificial intelligence. Machine learning is also one

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such essential form of the artificial intelligence that is sued by Amazon internal process for
improving the efficiency.
It is true that artificial intelligence has already offered several benefits by completely
changing the way we operate as consumers, businesses, as well as marketers. Artificial
intelligence also offers several benefits in bringing the improvement in marketing strategies
and thereby business performance. It provide several significant resources for several
business function aspect such as customer service, virtual assistant, repetitive task and
automating machine. It is also most valuable tool for several complex undertaking such as
reporting and analysing the consumer behaviour, collating as well as other significant
business data. The information that is bring generated from the artificial intelligence are
critical for the organisations to make significant decisions (Lu, Li, Chen, Kim and Serikawa,
2018). With the help of best and superior logistics and distribution system, it is able to fulfil
the demand of customers in effective way. It also helps the Amazon to get various
competitive advantages as compare to its rivals. In terms of competitive environment, it is
able maintain its unique position in the market.
As consumers are also becoming more comfortable and familiar with the applications of
artificial intelligence, their attitude has also changed from hesitation to acceptance and
confidence. Advancement in voice research is also one such great example of how the
artificial intelligence technology is changing the way business tends to things. Chatbots
proved to be the most significant way for the consumers to interact with the business units
anytime and from anywhere. With the use of chatbots, consumers and businesses are
interacting seamlessly all hours of the night and day. In this way, artificial intelligence is
quickly becoming critical business tool, with the specific benefits and applications that vary
from industry to industry (Yank, 2018).
Use of artificial intelligence by Amazon
It is seen that Amazon uses an AI Management strategy known as Flywheel. This technique
of Amazon tends to keep the artificial innovation that also encourages knowledge and energy
to spread to some other areas of company. The flywheel approach of Amazon means the
innovation around machine learning on one area that further fuels the efforts of team. As a
result, those teams tends to sue technology for driving their products that further impacts the

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innovation throughout whole organisation. Amazon has also proved to be the first one to
make use of this technology for driving its product suggestions. As machine learning and
artificial intelligence grow, the approach of flywheel has also become a keystone for the
amazon business. it is found that artificial intelligence is not only located at one office of
Amazon rather than its information has been spread throughout every department (Chen,
2017). Machine learning technology is also one technology used by the team of product
recommendation that tends to improve its product forecasting. When Amazon has started its
operation in Australia, customers are not required to pay any international shipping charges.
By the starting of online platform, Australia has got the big news for Australian customers. It
has helped the customers to get convenient services at their door step (Sun, Sun and Strang,
2018).
In addition to this, cahier less Amazon Go has also taken the benefit of the wealth data to
track the trends of customer shopping. Data from the smartphone cameras of customers not
only helps the Amazon Go but also the data is shared with the team of machine learning.
There is no doubt that the future of Amazon logistics network will definitely involve the
robotics and artificial intelligence. It is because robot is able to perform several tasks at a
time. Robot can also help manufacturer to do such tasks that is no being handle by the
human. However, Amazon uses small robots called drives in order to deliver the large stack
of products to the human workers by following a way around the warehouse (Corea, 2017).
Amazon also has virtual assistant known as Alexa that is emerged and the most significant
voices in the commerce. BY using Alexa, the customers of Amazon can discover the local
gigs for the coming weekend with the help of StubHub. The home assistance known as Alexa
is also providing the modern shopping experience to the customers. Amazon has also started
to apply artificial intelligence for the widely known issues such as natural language
understanding, speech recognition as well as question answering. Amazon is also tackling the
issues related to questions answer with the help of artificial intelligence In addition to this,
recommendation process is also increasingly practices by the E-commerce retailer in order to
help the customers for finding best solution. For instance: Amazon makes the suggestions to
users depending on the activities (Ng, 2016).

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Conclusion and recommendations
In the limelight of above discussion, it can be concluded that Amazon is one of the best
company by satisfying the demand of e-commerce customers. It serves millions of customers
by its innovative services. IN the recent time, artificial intelligence has taken place in the
survival of business. Due to this, businesses are required to give their emphasis on the
effective use of artificial intelligence techniques. With the effective use of artificial
techniques, it tends to share the data with the concerned team. In addition to this, it is also
effectively bringing the technological changes in the organisation by giving its major
emphasis on the technological advancements. In this way, E-commerce businesses such as
Amazon are effectively using the several technologies to offer the effective services to its
customers. The significant investment of the Amazon in these kinds of technologies is
helping it in strengthening the business success.
It is true that several changes are being seen in the today’s business environment due to the
changing customer expectations and technological advancements. Due to this, it is
recommended to the Amazon for making most effective use of the electronic messaging.
There are times, due to the wrong number, company is not able to effectively deliver the
urgent messages. An effective team can be appointed that will help the company in delivering
the urgent messages of the customers. This will also improve the customer service by
delivering the message instantly to the customers. Besides this, it is also recommended to
Amazon for using chatbots and live chat. Chat bots will prove to be the most significant
marketing tool. An effective person can be hired that will be capable of handling numerous
conversations at one time. This will also ensure the effective time management at the same
time make use of the internet technologies. Live chat will also ensure the support team to
communication with customers with the help of chat. Delay in chats definitely affects the
customer relationship management. Due to this, internet technologies have enabled the
organisation to bring best for the customers.

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References
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Brynjolfsson, E. and Mcafee, A.N.D.R.E.W., 2017. The business of artificial
intelligence. Harvard Business Review.
Chen, M.H., 2017. The analysis of model for electronic commerce–artificial
intelligent. Journal of Asian Business Strategy, 7(2), pp.39-43.
Corea, F., 2017. Artificial intelligence and exponential technologies: business models
evolution and new investment opportunities. Springer.
Heizer, J., Render, B. and Munson, C., 2017. Operations management. Pearson Education
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Lu, H., Li, Y., Chen, M., Kim, H. and Serikawa, S., 2018. Brain intelligence: go beyond
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Ng, A., 2016. What artificial intelligence can and can’t do right now. Harvard Business
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Terdiman, D. 2018. How AI is helping Amazon become a trillion-dollar Company. [online]
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