Report: How Information Technology Influences Amazon's Business

This report investigates the pivotal role of information technology in Amazon's success, analyzing its impact on the e-commerce giant's productivity and efficiency. A literature review examines the significance of IT, highlighting its advantages such as enhanced sales, reduced costs, and improved customer reach through advanced communication and tracking technologies. The report also addresses challenges, including security risks and negative feedback, while emphasizing the importance of networking technologies like WLAN and WAN for data communication and customer satisfaction. Ultimately, the study concludes that IT, when effectively implemented, can significantly enhance Amazon's market presence and decision-making capabilities, contributing to its growth in the competitive e-commerce landscape. Desklib provides access to this and other solved assignments for students.

INFORMATION TECHNOLOGY
0
Information Technology

INFORMATION TECHNOLOGY
1
Table of Contents
Introduction...........................................................................................................................................2
Literature review...................................................................................................................................2
Analysis and discussion..........................................................................................................................5
Findings.................................................................................................................................................6
Conclusion.............................................................................................................................................7
References.............................................................................................................................................8

INFORMATION TECHNOLOGY
2
Introduction
Information technology is defined as the business sector which deals with the
computers, software, hardware, telecommunication and many more. Generally,
information technology is the utilization of the computer system to store and maintains
the human data or information (Anderson, 2007). Amazon is one of the best examples of
information technology which uses numbers of information technologies such as
communication system, wireless networks, and computer devices and servers. With the
help of all these information technologies, Amazon increases their performance and
productivity every year. The aim of this report is to discuss the importance of
information technology in the success or failure of the Amazon and various kinds of
networking technologies used by the Amazon. Information technology plays a
significant role in the Amazon and other e-commerce organizations that have the
potential to control and manage the productivity of the business. This report is divided
into main three parts such as literature review, analysis and discussion, and findings.
The literature review will help readers to analyze the significance of the information
technology in the Amazon and it also collects the opinions of the other researchers and
experts.
Literature review
In this modern ear, the use of information technology is growing rapidly and many
business industries like Amazon, Wal-Mart, and many more uses such type of
technology in their business. Amazon is one of the biggest e-commerce organizations
that use information technology for growing their business and the productivity of their
services. There are many authors and individuals provided their views on this topic and
it is a very common topic for the investigation but they did not provide an in-depth
analysis. This literature review reduces the research gaps and analysis the opinions of
the other researcher to enhance the effectiveness of the investigation. According to the
Awazu, et al., (2009) the use of information technology in the e-commerce industry has
1increased by 55% in the year 20 6 and this rate is increasing day by day due to their
benefits such as very easy low cost and more efficient.

INFORMATION TECHNOLOGY
3
The researcher also evaluated the challenges or issues faced by the Amazon by using
information technologies. Moreover, Amazon is completely depended on the
information technology due to which sometimes they reduced their market and several
failed cases are also observed because of security-related issues. Gungor 11, et al., (20 )
observed that the information technology has the ability to control and handle the
performance of Amazon products and mainly they use the information technology for
communication purpose (Kizza, 2007). The importance of the information technology
varies with the time and today Amazon is very largest business industries that
increased their success by adopting the information technologies and information
systems.
The author conducted a survey and collected the views of the individuals about
information technology and they analyzed that information technology play a major
role in the Amazon for data communication, marketing, online services and many more.
According to 1Piotrowicz, and Cuthbertson, (20 4) in this generation information
technology involves various kinds of activities in the Amazon organization such as
business to business, business to government, customer to customer, business to
customer and mobile technologies. Moreover, the researcher estimated that the rate of
1 1information technology has increased by 35% in between 20 5 and 20 6 and by using
1 1this technology Amazon has increased their business by 40% between 20 5 and 20 7.
Business to a business system is defined as the e-commerce which interacts between
two or more organizations and Amazon uses this concept to communicate with their
competitors. It also uses the business to customer activities where amazon
communicates with their clients and users with the help of information technology.
Porcel 8, et al., (200 ) evaluated that Amazon uses this technology for improving their
business and values and by using this technique users can make purchasing decision
over the networks and they also provide the feedback process which can reduce or
increase their business. In which authors conducted a literature review to enhance the
effectiveness of their investigation and they collected the related data or information
from the interview and previous investigation. Recent investigation observed that
8around 0% of the e-commerce companies including Amazon are completely based on
the business to business and business to consumers.

INFORMATION TECHNOLOGY
4
Today, it is very easy to enhance the productivity of business because information
technology provides numerous advanced technologies such as wireless networks,
communication system and computer devices for storing data. According to Rajão, and
Hayes, (2009) the information technology is one of the advanced technologies that
provide a platform to the Amazon and other service industries to increase their
business and performance. by using this approach consumers, suppliers, stakeholders,
partners, and investors can communicate from any location and they can also share
their feedback with the company. 1Ramamurthy, (20 2) investigated that information
technology is an open source platform which allows for new channels, relationships of
doing business and earns more money.
They also reduced their product cost and time by changing path or way and the value of
manufactures are depended on contemporary technology. The researcher also
suggested that Amazon can adopt the advanced security networks and techniques for
improving security and privacy of their business and data because information
technology uses the internet connectivity by which hackers can enter into their servers
( 8Turban, et al., 200 ). It is observed that the Amazon has led to enhanced which depend
on the internet connectivity along with the traditional methods for increasing their
business value. Vance 8, et al., (200 ) evaluated that security is one of the biggest issue
faced by information technology and Amazon is also facing such kind of issue because
they use the internet connectivity and wireless networks. The researcher observed that
the ethics are the principle of the right and wrong consumers and there are several
ethical and social issues occur in the information technologies which are described by
the author.
The recent survey evaluated that there are major five ethical and social issues occurred
in the information technology, for example, information right and obligations,
accountability and control, system quality, quality of life and property right and
obligation. The main ethical issue of information technology is that employees and
companies can lose their personal data or information due to a lack of security and Data
breaches related issues. Such kind of problem occurs due to use of unauthentic servers
and networks. Information technologies foster innovation in the business and service
sectors and the outcomes in the smarter application enhanced data storage and wider
information distribution system. 1Yoo, Henfridsson, and Lyytinen, (20 0) observed that

INFORMATION TECHNOLOGY
5
the innovation with the help of information technologies have created the many radical
changes in the Amazon and other e-commerce industries such as online shopping is
more easy and efficient rather than offline, digital marketing is very easy, social
networking also helps for improving their business, and cloud computing is more
effective as compared to the private computer system.
1Yoo, Henfridsson, and Lyytinen, (20 0) discussed the numerous kinds of networks
technologies used in the business industries for improving the efficiency and
performance of the system. In the last three years the use of networking technologies
has increased by 45% because of their several advantages such as easy to understand,
low cost, more secure and so on. Researcher highlighted that PAN, WAN, LAN, and MAN
all these are very advanced and common networking technology which are used by the
Amazon during data communication. PAN is defined as the personal area network
which is produced by using modems and computer networks that can be used for
generation of building networks. LAN is used in the local areas that have the potential to
connect to more computer networks with each other.
Mainly, Amazon uses the wireless local area networks to share and receive any kind of
information from employees to consumers. Other types of networks like MAN and WAN
are used for the large distance communications purpose but WAN and MAN are more
complex as compared to the other LAN and PAN networks due to which Amazon uses
only WLAN networks. 1Yoo, Henfridsson, and Lyytinen, (20 0) evaluated that the WLAN
network is more secure rather than others because they are more efficient and uses the
encoding and decoding process during the communication process. The LAN is used to
connect a group of computers but WAN is used to connect the huge amount of computer
servers. The bandwidth of the LAN is very high but in the case of WAN it is very low for
data sharing and receiving. In terms of cost, LAN is very low cost as compared to the
WAN due to which many business industries uses the LAN rather than WAN. Amazon
organization uses such kinds of networking technologies to communicate with their
clients and consumers and they also developed their own web services such as AWB
and cloud computing for storing data or information.

INFORMATION TECHNOLOGY
6
Analysis and discussion
It is analyzed that information technology plays a crucial role in the increment in the
productivity and efficiency of the business. In this paper, a literature review is
conducted that discussed the significance of information technology and how Amazon
uses this type of innovation in their business. From this section, it is observed that the
use of information technology is one of the best strategies that have the capability to
enhance the business of Amazon in the sector of e-commerce. From the previous
research it is observed that there are numerous advantages of the information
technology in the Amazon organization such as enhance sales and reduce the cost of the
goods, more accurate and effective, advertising on the website can help the company to
increase the rate of consumers, and provides the users a large range of choices rather
than other ( 8Walters, et al., 200 ). With the help of all these benefits, Amazon and other
organizations can expand their businesses and they can easily monitor the efficiency of
their servers or networks. Recently, information technology developed the high-level
communication systems and tracking technologies which are adopted by the Amazon
for consumers and users satisfaction. But it also impacts on the productivity of their
business because they provided the feedback system by which users can give negative
feedback if they do not satisfy with the Amazon services. There are several
disadvantages of information technology used in the Amazon such as foods, antiques,
and jewelry all these can never turn to the electronic commerce because it is not
possible to inspect them from removing location, very difficult to design and implement
the networks technologies, frauds and spams are not eliminated in the Amazon and
security risks are also associated with the information technologies.
Findings
It is founded that information technology can change the productivity of the Amazon
organization in both a positive and negative manner. If they provide better services to
their consumers and use information technology in an effective manner then they can
improve their productivity. In the literature review, the different kinds of networks
technologies are discussed in which WLAN and WAN both are the best networking
techniques which are used by Amazon. They mainly use these technologies for
communication purpose, data or information sharing, and customer satisfaction. It is
also founded the information technology has given Amazon and other business the tools

INFORMATION TECHNOLOGY
7
to resolve the more complex situation by improving the performance of the hardware
and computer networks. Such kind of technology also allows Amazon to make a better
and good decision that can be done by collecting the views of consumers on social
media and survey. Above literature observed that information technology has the ability
to enhance the market of Amazon with the help of advertising methods. Therefore, the
researcher analyzed that information technology is the very biggest change in the field
of e-commerce and Amazon uses this approach for growing their value in the business
industries by enhancing the consumer’s satisfaction.
Conclusion
This report is completely based on information technology and readers can expand
their skills and experience in the sector of information technology. This report
described the importance of information technology in the Amazon with ethical and
social issues and various kinds of networking technologies used by the Amazon during
communication. A literature review is also conducted to understand the benefits and
drawbacks of the information technology and views of other researchers on this topic.
Amazon should ensure that they use the high-level security tools and techniques like
cryptography and encryption to reduce the ethical and social issues and security risks
associated with the information technology.

INFORMATION TECHNOLOGY
8
References
Anderson, J.G., (2007) Social, ethical and legal barriers to e-health.
International journal
of medical informatics, 76 8 8(5-6), pp.4 0-4 3.
Awazu, Y., Baloh, P., Desouza, K.C., Wecht, C.H., Kim, J. and Jha, S., (2009) Information–
communication technologies open up innovation.
Research-Technology
Management, 52 1 1 8( ), pp.5 -5 .
11Gungor, V.C., Sahin, D., Kocak, T., Ergut, S., Buccella, C., Cecati, C. and Hancke, G.P., (20 )
Smart grid technologies: Communication technologies and standards.
IEEE Transactions
on Industrial informatics, 7(4), pp.529-539.
Kizza, J.M., (2007)
Ethical and social issues in the information age (Vol. 999). Springer.
1Piotrowicz, W. and Cuthbertson, R., (20 4) Introduction to the special issue information
technology in retail: Toward omnichannel retailing.
International Journal of Electronic
Commerce, 18 1(4), pp.5- 6.
8Porcel, C., LÓPEZ-HERRERA, A.G. and Herrera-Viedma, E., (200 ) A recommender
system to promote collaborative research groups in an academic context.
In
Computational Intelligence In Decision And Control 1 8 8, 2(2), pp. 47- 52).
Rajão, R. and Hayes, N., (2009) Conceptions of control and IT artifacts: an institutional
account of the Amazon rainforest monitoring system.
Journal of Information
Technology, 24 1(4), pp.320-33 .
1Ramamurthy, B., (20 2)
Design of optical WDM networks: LAN, MAN and WAN
architectures (Vol. 603). Springer Science & Business Media.
8Turban, E., Leidner, D., McLean, E. and Wetherbe, J., (200 )
INFORMATION
TECHNOLOGY FOR MANAGEMENT, (With CD). John Wiley & Sons.
8Vance, A., Elie-Dit-Cosaque, C. and Straub, D.W., (200 ) Examining trust in information
technology artifacts: the effects of system quality and culture.
Journal of management
information systems, 24 1(4), pp.73- 00.

INFORMATION TECHNOLOGY
9
8Walters, J.P., Chaudhary, V., Cha, M., Guercio Jr, S. and Gallo, S., (200 ) A comparison of
virtualization technologies for HPC. In
Advanced Information Networking and
8
8
Applications, 200 . AINA 200 . 22nd International Conference on 1 8 1 8 8, 0(4), pp. 6 - 6 .
1Yoo, Y., Henfridsson, O. and Lyytinen, K., (20 0) Research commentary—the new
organizing logic of digital innovation: an agenda for information systems
research.
Information systems research, 12 (4), pp.724-735.