Information System Analysis: Amazon Functional Areas Report

This report delves into the application of information systems within organizations, using Amazon.com as a case study. It explores the needs of various functional areas like marketing and customer service, highlighting the issues they face and the role of systems like CRM and MIS in addressing these challenges. The report compares and contrasts different information systems, examining their use in different functional areas and how they support management decision-making at both middle and top levels. It also identifies the key technical details of these systems and considers relevant business factors. Finally, the report addresses social and ethical issues associated with information system implementation, providing a comprehensive overview of the topic.

Information system
in Organization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
1. Explain the needs of information in the functional areas along with some issues which they
face...............................................................................................................................................3
2. Compare and contrast the information system and use in well manner..................................5
TASK 2............................................................................................................................................7
1. Identify and explain the information system which used in functional area and produce
management information at middle or top level of the business.................................................7
2. Key technical details of the information system and business considerations........................8
TASK 3............................................................................................................................................8
1. Identify the social or ethical issues which linked with the information system of the business
......................................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Information system is the technology which is very popular in the organizations and it is
implemented in their operations in order to maximise their efficiency as well as effectiveness.
Technology help the people to interact or support the business process which make them able to
enhance individual performance as well as productivity. Main purpose of information system is
to make raw data in useful manner which help the management to make strategies on the basis of
it (Beckford, 2019). These information used by the analyst which make capable to formulate
strategic decisions in respect of the organization. For the better understanding of this concept,
this project report based on Amazon.com which is American based multinational E-commerce
company. This project report various topics such as functional areas which use the information
system in order to enhance their operational output. Compare & contrast the information systems
which used in functional and identify the ethical or social issues that linked business operations.
MAIN BODY
Overview of the company:
Amazon.com is an multinational technology based company which founded in 1994 by
Jeff Bezos. It is American based company which deals in e-commerce, could computing, digital
streaming, artificial intelligence etc. These services provided to the consumers in the worldwide
network or it make organization able to expand their business globally. In addition, Amazon
provide more services and products to expand their market share as well as customer base. It
includes Amazon Fire, Amazon Kinda, Amazon Prime, Amazon Music etc. Jeff Bezos mainly
focus on customer satisfactions and it will be possible through analysis their needs & desires.
Company use the customer relation management system in order to engage with them or identify
their expectation which Amazon able to find opportunity from it.
TASK 1
1. Explain the needs of information in the functional areas along with some issues which they
face
Information system is the set of various components which include the collection of data,
storage, knowledge., digital products etc. Organization use information system to manage their
business operations and ensure that it will perform effectiveness which make firm able to

maximise productivity as well as profitability. In context of Amazon.com, they use Management
information system (MIS) or Customer relation management system (CRM) in order to improve
the efficiency of their functional areas (Functional areas, 2019). In Amazon, there are different
functional areas which required to perform in order to gain success and some of them mentioned
below:
Marketing & Advertising: Generate awareness regarding their products & services
organization have to done marketing or build various promotional strategies in order top gain
customers (Beynon-Davies, 2016). Managers have to build effective marketing or advertisement
strategies. Effective promotion will leads to generate demand among the consumers such as
Amazon mostly focus on digital promotion which maximise the demand as well as revenue.
Overall goal of the Amazon company is to identify, attract or win potential customers. They also
use the various technology to organize, automate & adjust business processes for sales,
marketing, customer service
and technical support. But company also face various issues at the time of business operations
regarding requirement of inputs, generating output and processing other business activities. In
order to build marketing strategy they have to collect information which gather through market
research, survey, feedback from existing customers. Amazon face the issues at the time of
collecting data as well as it create difficulties to converted into output. It is very important to use
data in effective way or make business strategy accordingly. With the help of technology,
Amazon able to collect information and use in appropriate way which provide valuable output
that further helps in maximising productivity as well as profitability.
Customer service: This functional area is most important for service sector organizations
because they have to focus on customers needs & expectation. In the current scenario, every
organization make a separate department for the consumers where they resolve their queries,
issues or any problem which they face at the time of consuming products & services. Primary
focus of organization is to build strong relation with their customers and make sure that they are
satisfy with each and every services of the business. Customer satisfaction is most important
which helps in maximising demand of their products & services which automatically increase the
productivity as well as profitability (Blokdijk, 2014). In context of Amazon, which technology
based E-commerce company and provide services to the worldwide customers. Company set a
separate customer service department in order to build effective relationship of business with

public. It will be done, in order to generate, maintain or retain consumers for longer period. To
offer quality product is not enough to satisfy their clients, they have to provide pre or post sale
services. For example: Amazon provide customer equity number where any person can contact
or or resolve their query regarding any product or services. It is the opportunity for the company
to convert this potential customer into real which increase the sales. If consumer buy that product
or services then Amazon have to ensure that delivered goods are performing well or not through
taking feedback. Along with this, company provide facility to contact them if they face any issue
regarding or organization have to resolve accordingly.
Every functional area need the information system which help them to perform their task
accordingly. Marketing as well as customer services use client's information regarding their taste,
preference, desires etc. Amazon is technology based company which provide various services so
they have to develop market knowledge and make strong relation with consumers through
satisfy their needs and provide after sales services which is most important in order to retain
people for longer time or make them loyal one for the company.
2. Compare and contrast the information system and use in well manner
In the organizations, there are various information used by the organizations in order to
manage their work as well as maximise the productivity or profitability. Information system in
organization enhance the communication where they use messaging, email, calls or etc. which is
cheaper one to share information as well as more efficient ( Cooper, 2015) It also beneficial for
the organization to globalize their business and reduce the cultural gap. In context of Amazon,
they follow various information systems in order to maximise their operational activities which
further increase the productivity as well as profitability. Customer relationship management
(CRM) system or Marketing information system (MIS) both are used by the Amazon company
to manage information of their different functional area and it discussed below:
Basis Customer Relationship
Management (CRM) system
Marketing Information System
(MIS)
Marketing &
Advertising
CRM system is the technology which
is used by the organization in order to
maintain their relation as well as
interaction with customer. In the
MIS is one of the technology which
used by the organization in order to
perform their task effectively. With
the help of MIS, business able to

marketing functions, it is used to
identify the behaviour consumer
regarding their purchases and it
further help the marketing manager to
build their strategies accordingly.
For example: Amazon company
follow this system where they
regularly take feedbacks from
consumers or their after purchase
experience regarding goods &
services. Managers analysis their
suggestions in order to improve their
services or implement in order to
maximise productivity as well as
profitability. If company know that
their consumers are digital so they
use digital platform to promote their
products & services.
collect different types of data,
people, equipment, process which
is beneficial in making decisions.
For example: Marketing manager
of Amazon company, in order to
build promotional strategy they
required information which make
them able to understand the product
and what kind of marketing suitable
for that (Feistel,Beckford and et.
al., 2017). At the time of making
strategy they have to know about
product such as Amazon Prime
Videos. Marketing managers have
to know about which kind of videos
they are going to show because
child videos promotions are
different from others.
Customer Service In the customer service department,
company use the CRM system in
order to maximise their efficiency to
collect informational. With the help
of CRM system, business able to find
new customers which can be
converted into their regular customers
(Riedl and et.al. 2018). This system
store the data which is used to
analyse that either customers are
satisfied with products & services or
not. It helps in growing their business
more faster. Amazon company follow
With the help of marketing
information system, business able
to resolve the issues or problems in
the marketing of firm's product.
MIS include the combination of
inputs as well as outputs which is
related to database. It also used in
analysing customers needs and
improve marketing efficiency. Data
can be collected for internal as well
as external sources which help the
managers to build strategies in
order to satisfy their consumers or

this system which build strong
relation with their consumers. They
set up various customer service centre
in order to assist consumer and make
sure every one is satisfy and able to
find solutions for their problem.
provide valuable services which
maximise the productivity as well
as profit margin.
TASK 2
1. Identify and explain the information system which used in functional area and produce
management information at middle or top level of the business
Use of technology allow the business to perform more faster, accurate reporting, helps in
better decisions etc. Information system also beneficial in visualising that easy to understand by
others (Griffith, Stephenson and Watson, 2014). It further helps the organization to use these
information in the functional area which further beneficial for middle as well as senior level
management. Further discussion mentioned below:
Marketing & Advertising: With the help of various information system such as
marketing information system (MIS) and customer relationship management system (CRM).
Both help the Amazon company to perform their operational activities in well manner. With the
help of information, managers able to get required information in order to build strategies for the
Amazon's products (Laurini, 2014). In the marketing department, managers have to analyse that
how they can increase their sales or maximise product demand among the consumers with the
help of effective promotions. All these information beneficial for the middle or senior level
management where top level management build strategies through analysing all the factors
which can positively as well as negatively impact the productivity or profitability.
Each and every decisions or strategies will have to followed by the middle level
management where managers have to implement in the operations in order to maximise the
productivity as well profitability. With the help of CRM system, manager able to identify that
what are the common problems they face so further they ensure that same mistake does not
happen. Both information system beneficial for the marketing functions which help them to
make marketing or promotion strategies in order to attract more customers towards their products

& services. Amazon provide better customer services which enhance the relationship of
customers with the organization. It will further maximise the customer revenue, attract potential
customers, employees retaliation as well as maximise the sales. If organization wanted to
maximise their operational efficiency as well as effectiveness, they have to implement
information system in well manner to achieve organizational goals & objectives.
2. Key technical details of the information system and business considerations
Information system is the technology which is used in the organization at different level
or they perform their task accordingly. In context of Amazon company, how senior or middle
level management use the information system in order to maximise their operational efficiency
as well as productivity or profitability. Further discussion mentioned below:
Middle level management: This level include the overall management of the
organizational activities. Here managers of the company monitor, control, make decisions, build
strategies and other administration activities. These functions will be perform by the middle level
managers, in order to perform their task accurately business follow the information system which
helps completing task (Krimpmann, 2015). In order to make any decisions, business required
information which collected with the help of technology or presented in understandable form.
Senior level management: It is also called strategic level system where to top
management build various strategies or resolve the issues regarding operations, products,
marketing etc. Senior management also evaluate the internal as well as external factors through
collecting data by using information system. It will further helps in making plans which requited
to implement by the middle management and ensure that work will be done in well manner.
Information system serve the major business functions such as marketing, customers
service, operations, finance etc. Every organization have to perform or complete their work
through passing three levels such as operational, management or strategic level (Romero and
Vernadat, 2016). In context of Amazon, sales functions have sales system in order to records
operational records on daily basis, management level track the sales on monthly basis to evaluate
the results. In the last, strategic level use the information system to forecast the data that how
many sales possibilities company have ion next year.

TASK 3
1. Identify the social or ethical issues which linked with the information system of the business
There are various issues in information system which Amazon company face and it will
further impact the overall productivity or profitability. Some of them mentioned below:
Tax Avoidance: Organizations avoid to pay tax in order to maximise their profit margin
but this is unethical which affect the company. In context of Amazon, they avoid to pay tax and
it will identify that when company got the first place in selling online products. Amazon do not
pay sales tax even they sell their products online which have each and every record. This ethical
issues impact the business.
Warehouse Abuse: Amazon company have many warehouses where number of workers
employed and they give wages which is lower than the average wage. Average wage of workers
are $ 40000 annually. But Amazon provide $ 24300 annually which is very low which indicate
the warehouse abuse (Rubik and Frankl, 2017). In 2018, they finally raise the wage of
warehouse workers where they pick or pack the products for delivery. It is the another ethical
issues which Amazon face and it will impact the brand image of the company.
Change in climate: It is one the social issue which faced by the Amazon company
because company haver many business which affected due to change in climate. Web service
server went down which affect the business, extremely cold temperatures in Minnesota forced
the Amazon to close one of their centre for multiple days. Amazon company is fully work on
technology or network, climate change will impact the server which reduce their productivity or
profitability.
Vision: Vision of Amazon is to become customer centric company where people can find
anything to satisfy their needs regarding any product.
Mission: Is to primary focus on their online customers through taking leadership
decisions.
Value statement: It to satisfy consumer's need to retain them or increase their loyalty as
well as attract new customers as well.
Corporate social responsibility: It is the business model which encourage the
organization to contribute some part of profit in the society for the social development. It is
mandatory for the organization to contribute which provide various benefits to the business as
well as society (Thiebes, Lins and Basten, 2014). In context of Amazon company, they also

take part on the CSR activities which influence the customers and it will positively impact the
business or helps in maximising productivity as well as profitability. Some of the CSR activities
of Amazon company mentioned below:
 In 2016, Amazon launch Feeding America where they donate the excess food to the
people who requited.
 More than 1,000 volunteers, retail vendors, service providers and customers participated
in Local Love event. Amazon also donated more than 1,600 volunteer hours and USD
65,000 in products to non- profits.
 Amazon Contract Centre allow the customer care employees to work from home.
 E-commerce giant has pledged to host the solar energy systems at 50 centres by 2020.
CONCLUSION
From the above discussion it has been concluded that, Customer relationship
management system is beneficial for the service sector organizations. Those organizations which
is customer centric have to follow CRM system. Along with this, use of information system in
different functional area will the business operations which impact the production as well as
profitability. CSR policies also beneficial for the organization to attract large number of
customers. Information system also useful for senior level as well as middle level management
because they have to build strategies or implement in the operations in order or maximise the
sales as well as revenue of the company. In order to performer their task, initially they have to
build vision, mission or value statements and further build their strategies to accomplish their
gaols.

REFERENCES
Books & Journals
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Beynon-Davies, P., 2016. Information Systems Development: an introduction to information
systems engineering. Macmillan International Higher Education.
Blokdijk, A., 2014. Planning and design of information systems. Academic Press.
Cooper, R., 2015. Information, communication and organisation: a post-structural revision. In
For Robert Cooper(pp. 124-148). Routledge.
Feistel,Beckford, J. and et. al., 2017. Self-organisation of symbolic information. The European
Physical Journal Special Topics,. 226(2). pp.207-228.
Griffith, A., Stephenson, P. and Watson, P., 2014. Management systems for construction.
Routledge.
Krimpmann, D., 2015. IT/IS organisation design in the digital age–a literature review.
International Journal of Computer and Information Engineering,. 9(4). pp.1208-1218.
Laurini, R., 2014. Information systems for urban planning: a hypermedia cooperative approach.
CRC Press.
Riedl, R. and et.al. 2018. Neuroscience in information systems research. Lecture Notes in
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Romero, D. and Vernadat, F., 2016. Enterprise information systems state of the art: Past, present
and future trends. Computers in Industry, 79, pp.3-13.
Rubik, F. and Frankl, P., 2017. The future of eco-labelling: Making environmental product
information systems effective. Routledge.
Thiebes, S., Lins, S. and Basten, D., 2014. Gamifying information systems-a synthesis of
gamification mechanics and dynamics.
Online
Functional areas. 2019. [Online]. Available Through:
<http://www.biznas.co.uk/business/functional-areas-of-business-explained/>