BMSW 5106 Report: Knowledge and Information Management at Amazon.com

This report provides a comprehensive analysis of knowledge and information management (KM) practices at Amazon.com. It begins with an introduction to Amazon's background and highlights the importance of KM for the organization, emphasizing its role in customer satisfaction and achieving competitive advantage. The report then evaluates various KM models and theories, including Nonaka's tacit and explicit conversion model, to illustrate how knowledge is embedded in products and services and how it's shared within the organization. Furthermore, the report investigates the KM techniques employed by Amazon.com, focusing on the impact of standard operating procedures (SOPs) and identifying areas for future improvement to overcome challenges. The findings are summarized, and recommendations are provided to enhance Amazon's KM strategies. The report concludes by summarizing key findings, offering valuable insights into Amazon's KM practices.

Individual Report on-
Knowledge and Information
Management of Amazon.com
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1: Knowledge and Information Management.......................................................................3
Company Background:................................................................................................................3
What is KM?...............................................................................................................................4
Why KM is so important for any organisation including Amazon.com.....................................5
How Knowledge management helps the organisation in satisfying customers and achieving
competitive advantage.................................................................................................................6
TASK 2: Evaluation of knowledge and information management models/theories, showing of
awareness by evaluation:.................................................................................................................7
How knowledge is embedded in products and the service concept in the tacit knowledge of
individuals...................................................................................................................................7
How knowledge management represents a systematic approach in sharing and exchanging an
organisational knowledge base...................................................................................................8
Use of Nonaka's tacit and explicit conversion and decision making model or any other models
to illustrate the points..................................................................................................................9
TASK 3: Investigating of knowledge management techniques used by Amazon.com.................11
How knowledge has become increasingly important in Amazon.com's SOP (Standard
Operating Procedures)...............................................................................................................11
What are the main outcomes that Amazon.com has been achieving with the use of these
procedures?...............................................................................................................................12
What are the areas Amazon.com can still improve in the future in order to overcome the
challenges?................................................................................................................................13
RECOMMENDATIONS...............................................................................................................14
CONCLUSION..............................................................................................................................14
SUMMARY OF FINDINGS.........................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Amazon.com is a international e-commerce giant which is having diversified business as
they are selling from clothing to various electronic gadgets on their e-commerce portal.
Amazon.com was founded by Jeff Bezos in the year 1994 and in current time this website has
become the first place for shoppers to shop as the company is involved in selling 564 million
products on their website. Amazon.com is market leader in terms of innovation and market
growth due to which various strategic options are inhaled by Amazon.com. The company has
incorporated data analysis into their decision making due to which they are able to understand
needs of their customers in direct manner. In the year of 2020 the company earned revenue of
US$386.064 billion (About Amazon.com. 2021). Amazon.com is having 1298000 employees in
their business and those are continuously putting their prominent efforts for inhaling high edge
success for the business. In this report key management theories are elaborated which are
primarily emphasised over organisational structures and rendering cultural diversity within
organisation. Knowledge management is a series of steps that include identifying, collecting,
storing, and sharing explicit, implicit, and tacit information to individuals throughout an
organization (Hayes, 2018). Organisational KM theory is focused over organisational structure
in which processes of knowledge are being managed within an organisation along with managing
culture and hierarchy. On the other hand Ecological KM theory is focused over people and
relationships and communities so that to provide knowledge to people existing internal and
external environment. At last Techno-centric theory is emphasised over over technology so that
redesigning of technology so that to enable knowledge and storage information within business
(Teece, 2019). These knowledge management theories are helpful in sharing knowledge in such
a manner that theories and various practices can be deployed in appropriate manner.
TASK 1: Knowledge and Information Management
Company Background:
Amazon.com is a global retail online business company which offers various products
and services across globe via its online platform such as mobile application or through its
websites. The company is being founded in 1994-95 by Jeff Bezos in the areas of Washington,
United States. It is a global technological firm that has major focus upon digital streaming of
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films or web series, e-commerce, artificial intelligence, cloud computing, etc. Amazon.com has
stood among the top five multinational giants in U.S. The initial business of Amazon.com was
online selling and home delivery of books later expanded to selling of electronic items, video
games, various software's, furniture, jewellery, apparels and toys (Adeinat and Abdulfatah,
2019). The company has an acquisition with Whole food market worth $13.4 billion amount.
Amazon.com in terms of market capitalization and revenue generation stands at highest position
in world in terms of its cloud computing, artificial intelligence, e-commerce, online streaming,
and by various other services along with a valuation of brand as world's highest multinational
brand company in market. The company has several partnerships with great businesses in
industry such as with Toys “R” US, Borders group, DC Comics, US Portal services, Nike,
Booths, JV Appario retail and also with Apple Inc. It is on the other hand carries a bunch of
subsidiaries companies under its brand name that comprises of A9.com, Amazon.com Maritime,
Annapurna Labs, Audible.com, Beijing century Joyo Courier services, Brilliance Audio,
ComiXology, createSpace, Goodreads, Whole Foods Market, Souq, Shelfari, Ring, Lab126,
Kuiper Systems, Junglee and Health navigator. Amazon.com in order to have smooth and hurdle
free delivery of its orders has setup more than 75 fulfilment with 25 sortation hubs across globe
being managed by more than 125000 workforce. The company has also developed robotics
warehouses which are automated to the partial and some parts are managed by employees.
Amazon.com faces tough competition within an industry from other e-commerce giants such as
Myntra, Flip-kart and other similar firms.
What is KM?
The concept of knowledge management or KM is a sequential procedure of recognising,
collecting, retaining, measuring and allowing access to concern parties regarding all the
necessary information of the organisation which is being developed during daily course of
business. It is a specific mechanism which is being implemented by large multinational
companies in order to have support in organising their questions being frequently asked,
documents or various different informations so to have easy access by external as well as internal
customers of the company (Ali and et. al., 2020). A business organisation can assist its
management by maintaining an updated record of all its documents, providing support to
customers in searching answers for their queries along with effective management of various
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knowledge and permission access within a group. The tool of knowledge management can be
applied by both multinational giant as well as small operating business firms which requires to
share their knowledge with large audience in market. This assists Amazon.com in enhancing its
services which is being provided to its customers through offering quick answers to their
questions as no customer wishes to stay in queue or explaining their queries to customer service
agent instead they wishes to have online search for their issues, get answer to all those and
resolves the concern by themselves. This reduces the waiting time of customers, enables them to
get answers by their own and offers much detailed help compared to via different mode to the
potential buyers. The knowledge management system carries certain essential features such as
rich editing of multimedia as well as text, maintaining control over languages, having proper
analytics and reporting, collected feedback in proper manner and keeps control over various
kinds of permissions.
Why KM is so important for any organisation including Amazon.com.
The importance of knowledge management for any organisation including Amazon.com
are mentioned below:
 The concept of Knowledge management assists other companies and Amazon.com in
having high efficiency in context to decision making process.
 It helps in building up of smart force of employees through providing access to all
relevant information to all employees in an organisation in order to have quick and
complete decisions which brings several benefits to company including Amazon.com.
 In order to bring innovation such as implementation of artificial intelligence or any other
new technology, it is very helpful that knowledge management increases innovation rate
and scope which any organisation including Amazon.com can bring and adopt to gain
competitive advantage over other firms.
 This is relevant in terms of having effective communication and enhanced process of
business within due course through solving of customers quickly and sharing of
knowledge with expertise (Barros and et. al., 2020).
 Another importance of knowledge management is that it enhances business
collaborations in market which is always backed by success and growth of the firm in
domestic as well as in international market.
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 The concept plays a crucial role in having decisions, making forecasts, designing,
diagnosing, evaluating, analysing, planning or having judgement on several aspects in
intuitive manner (Bashir and Farooq, 2019).
 Knowledge management permits organisations including Amazon.com in development of
certain capabilities that is helpful in determining various ability for completion of task or
achievement of objectives.
How Knowledge management helps the organisation in satisfying customers and achieving
competitive advantage.
The concept of knowledge management plays a very crucial role in satisfying customers
through development of strong relations with them. Knowledge management is categories as
essential or vital form of customer relationships management. Customer can be satisfied through
tracking of emails, calls or queries that were been enquired and solved including the issue which
is mostly asked (Campanella, Derhy and Gangi, 2019). This will allow firm to analyse the
interaction of customers with company's product or services with certain opportunities that are
open for company in order to have enhancement in its process. Another reason in support of
knowledge management which helps companies in having customer satisfaction is through
offering self service option to customers. When Amazon.com develops FAQs page that describes
some common issue with ways of resolution customers finds their solution quickly and does not
requires to wait for customer service agent to answer their calls collecting online responses in a
form of survey or feedbacks from customers can be placed on company's website or can be sent
via email to registered customers, this allows customers to share their opinions or views with
others and also can read others views which ultimately makes them feel connected with
organisation.
Knowledge management helps the organisation in achieving competitive advantage by a
way of acquiring right data of right people at correct time which assists companies in getting
quick rate of consumer expectations along with a landscape of changes within industry,
justifying correct information, correct person with support of correct time which can be little
tricky (Di Vaio and et. al., 2021). Effective use of knowledge management supports
organisations in creation, applying or sharing various information, improving usage of precious
data and breaking down of silos. Knowledge management always creates an impact upon
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company's efficiency, productivity as well as creativity along with a bottom line on their
statement of profit and loss. The application of knowledge management within an organisation
helps Amazon.com in investing less time and making its process standardised that offers best
services to company's employees as well as customers brings competitive advantage for them
through commitment of less mistakes by the company.
TASK 2: Evaluation of knowledge and information management
models/theories, showing of awareness by evaluation:
How knowledge is embedded in products and the service concept in the tacit knowledge of
individuals.
The concept of embedded knowledge in products or services refers to a form or
knowledge that is being locked in certain process, culture or products. This knowledge is either
embedded in a form of formal structure like certain initiatives taken by companies management
in order to formalise some routine that is in benefit of organisation or in informal manner unlike
tactic or explicit form of knowledge (Ferraris and et. al., 2019). The challenge in maintaining
embedded form of knowledge in products or services differs in great deal along with difference
form tacit knowledge. This can be helpful in mapping of areas of organisational knowledge in a
form of tool that assists in engineering of company's product in reverse or in forward manner.
Application of formal routine in Amazon.com's product or services can be easy part in order to
implement and have effective management that can sincerely try to embed the results from
learned lessons directly into the production process or routine of manufacturing product or
services. If the knowledge is used in improper manner or in informal manner by Amazon.com,
than this can have a negative influence in products or services which may not be accepted by
customers.
Tacit knowledge comprises of certain skills, knowledge or abilities which an individual
attains from his experiences that is being difficult to express in words or through communication.
This form of knowledge is also refers as tribal knowledge or Experiential Knowledge or
sometimes even know-how knowledge. The concept of tacit knowledge of individuals refers to
an organisational knowledge that is being possess by an individual employee of a company in
respect to their products or services which they offers, or are needs by customers along with
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macro level impact will bring high productivity and success to the company (Hartono and et. al.,
2019). The knowledge which is being carried by an individual can be easily and frequently
communicated or documented by a firm. It involves ability of identifying the actual moment
when a customer is ready to listen the sales talk by company's employees. An individual in this
regard is asked to use correct words in order to engage and attract more and more customers
within a specific part of content that is being delivered to company's customers according to their
requirements. Tacit knowledge is an implication of implicit form of knowledge which is specific
to Amazon.com. The tacit knowledge of Amazon.com is truly indulged in its commitment,
involvement or action. The effective use of tacit knowledge in Amazon.com can be seen through
regular communication, one-to-one contact or through development of trust.
How knowledge management represents a systematic approach in sharing and exchanging an
organisational knowledge base.
The representation of knowledge management in sharing and exchanging an
organisational knowledge base can be done by communicating tacit and explicit knowledge with
other employees of an organisation. The concept of knowledge sharing is refers as wilful
interpretation of certain ideas, solutions, insights, experiences of an individual to another through
intermediary like via computer systems or even can be in direct form (Hislop, Bosua and Helms,
2018). There are some firms which do not considers knowledge or information to be shared
instead treated as a weapon for competition among individuals which is required to be hold
privately. The various approaches of knowledge management is the practice, the process and the
best practice which are discussed below:
The Practice Approach:
The approach of practice involves substantial deal in respect to knowledge of
organisation that is having nature of tacit in which is not justifiable for transmitting formal
processes, technologies and controls instead of creating formal system for managing of
knowledge (Johannessen, 2018). The approach focuses upon developing environment socially or
with different communities which is necessary in sharing of tacit understandability. This
involves a community known as “community of practice” where individuals who are having
mutual interest in profession works together by informal means. Under the community sharing of
knowledge or experience is done by collaborative efforts of individuals who even teaches each
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other. In respect to Amazon.com this is applied when company offers personalised solutions to
the distinctive issues of customers. Amazon.com in this case to have effective practice approach
in real, invests huge amount of capital in developing customers network and interactions through
technology like teleconferencing, emails or sharing of knowledge.
The Process Approach:
This approach of knowledge management tries to attempt organisational knowledge by a
way of technologies, controls or process in a well formal manner. Amazon.comin this case can
apply explicit form of policies which governs a way to gather, retain or disseminate knowledge
within the whole organisation (Khosravi and Nilashi, 2018). This comprises of using technology
in order to up-grade speed and quality of knowledge development along with its distribution in
company. This may comprise of Amazon.com's warehousing of data, tools for supporting
decisions or even groupware.
The Best Practice Approach:
This comprises of such methods or activities that are being highly effective to company
such as Amazon.com which is utilized in order to have operation and management of different
functions. This includes for various levels which recognises the best practice of an organisation
that is a good idea which presents sense of intuitive nature, a good practice which enhances
results of company, a local best practice that analysed tough data and an industry best practice
which uses industry's hard data (Kianto and et. al., 2019).
Use of Nonaka's tacit and explicit conversion and decision making model or any other models to
illustrate the points.
Nonaka tacit is also refers ad SECI model which stands for Socialization, Externalisation,
Combination and Internalization. This tacit has proven a corner stone for creation of knowledge
along with a theory of transferability. This form illustrates four different methods in which
knowledge can be collaborated ad converted (Masuin, Latief and Zagloel, 2018). This shows
creation and sharing of knowledge within an organisation. The term socialization refers to a
phenomenon of “Tacit-to-tacit” which means a knowledge is shared with the help of imitation,
practice, observation or even with guidance. Externalisation comprises of “Tacit to explicit”
phenomenon that includes a codification of tacit knowledge into manuals or documents in order
to have sharing of knowledge throughout the organisation in easy manner. The next element of
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Nonaka is Combination which is backed by “Explicit-to-explicit” phenomenon in which new
form of knowledge is being developed with the help of coded information. Internalization
comprises of a phenomenon “Explicit-to-Tacit” where sources from explicit data is being utilised
and knowledge is being internalized by modification of current knowledge pertaining to tacit.
The another model is Karl Wiigs knowledge management model which encompasses the
process of knowledge management in a perfect manner along with reasonable form that makes
information valuable and useful which should be properly organised. The organisation of
knowledge should be done in a way which depends upon its usage. The model includes certain
dimensions such as Completeness, Connectedness, Congruency and purpose or perspective.
Completeness refers to an extent of knowledge relevance that is being available from existing
source (Mizintseva and Gerbina, 2018). Connectedness comprises of properly defined and
understood relation among various objects of knowledge. Almost each object of knowledge is
inter connected with each where the knowledge which is highly connected is set as a base and
comprises highest value. Congruency covers some concepts, judgements, relation, values or
facts which links consistency and object to each other. The last dimension in this model is
purpose or perspective that defines a set phenomenon which is helpful in identifying a specific
point or a purpose. A dual dimension of purpose or perspective is being organised in order to
utilise knowledge.
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Illustration 1: Nonaka model

TASK 3: Investigating of knowledge management techniques used by
Amazon.com
How knowledge has become increasingly important in Amazon.com's SOP (Standard Operating
Procedures).
Standard Operating procedure of knowledge management involves a set procedure that is
utilised in describing organisation's operations or activities which are necessary in order to
accomplish task by following laws and regulations of related industry. This enlists certain
practices which are being expected in business where maintaining quality standards are
necessary (Ngulube, 2019). They acts as a procedure, policies or standards which are helpful in
disciplines of marketing, administration and operations inside the organisation in order to
achieve success. This gives birth to high profitability and efficiency, reliability and consistency
within products or services, generating no or less mistakes throughout the process. Standard
operating procedure is a way to solve various conflicts between employees or management and
helps in generation of safe and healthy environment. This always adds some value into the
business and ultimately in the products or services which an organisation is offering to
customers.
In relation to Amazon.com the standard operating procedure of knowledge is important in
order to bringing efficiency, quality along with uniformity in performance during minimising
chances of miscommunication or any kind of failure within organisation by following all
regulations pertaining to the industry. Amazon.com maintains a single standard throughout its
process or supply chain in order to deliver quality product or services to their customers. The
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Illustration 2: Wiig Model

Standard operating procedures helps company in creating and developing a blueprint for
upcoming tasks which carries repetitive nature within organisation. It is very important for
Amazon.com while outlining and launching or certain plans or procedures along with assigning
and automating the routine activities in order to have standardised operations. Amazon.com by
applying standard operating procedures facilitates quality control and assurance in respect to
management and evaluation of process with a regular improvement in regular job. On the other
hand in order to enhance communication level or holding company's employees answerable for
their work done it is necessary to have standard operating procedures that presents a clear
presentation like a birds view to the management. When developing a safe working environment
within Amazon.com organisation it is important to follow procedures of standard operations
especially at the time when all employees are performing common activity but with different
methods or ways because this can bring inconsistency along with inefficiency in results that can
cause a chance of liability to Amazon.com. This also acts as a guide map in order to resolve
organisational conflicts along with troubleshoot removal from emotions which allows a focus to
resolve such problem.
What are the main outcomes that Amazon.com has been achieving with the use of these
procedures?
As already discussed that the specified procedure is playing an important role in
Amazon.com. It is beneficial for both employees and employer as well. Below mentioned are the
various outcomes of Standard Operating Procedure of knowledge management: Systematic Work- This procedure provide a complete instructions in a specific way of
doing things to employees in written form so that every employee should be clear about
their task, that what they have to do and how they have to perform the assigned tasks
which helps the organisation in achieving their desired objectives by improving work
performance of employees (North and Kumta, 2018). Basically it boost the confidence of
employees that they can do simple task easily and they have to do concentration on
complex tasks. Along with this, it allow the employees of Amazon.com to make
concentration on the complex tasks for improving their personal skills which is beneficial
for organisation as well.
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