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Managment Information System - Case Study Example

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Amazon started out as retailer of books but has expanded in to almost every category of retail business such as music, video, auctions, electronics, toys, home improvements, software, advertising, commercial printing and so on. As a result, the company has many direct and…
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Managment Information System
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Managment Information System

Download file to see previous pages... The retailers on the Amazon system are directly affiliated with the company which ensures the customers that the products that they will receive will be the same which they might get from original stores. When customer purchases any item, the Amazon system is designed in a way that it recommends similar items purchased by other customers widening the choice and availability of products to customers. The system also remembers customers’ every purchase and reminds them of the items they have already purchased making virtual shopping hassle free. In addition to this, the shipping procedure of Amazon also makes its stand out among the competitor. Any order that is placed by the customer is connected to the Amazon distribution centers that determine the best and cheapest way to ship the product. This data is calculated by the automatic system and the customer receives the full shipping information under two minutes. For a service such as the Amazons’ customers are willing to shop here even if they can find better prices elsewhere.
The company wanted the entire system to be automatic from online ordering to coordination of distribution to the concept of almost-in-time inventory control applications. Since Amazon was new entering the cyber-world with a new conceptual idea, it had to build its technology from scratch as no such technology had been built previously. In addition, the data systems from stores, retailers, and merchants had to be connected to Amazon’s servers in real-time to provide current information to the customers. As the company kept growing, it introduced more ideas into its website for customers that required building and integrating new technology to the existing systems. To cater these needs, Amazon built its system from scratch. Besides this, Amazon wanted to have an advantage in the e-business by developing homemade applications and not relying on any legacy systems.
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