Amazon the internet, and the potential for a business

            Amazon was
founded by a man named Jeffrey Bezos in 1994. Bezos is a summa cum laude
graduate from Princeton University, where he earned a degree in computer
science and electrical engineering (Jeff
Bezos). Following his graduation, Bezos worked for several firms on Wall
Street, including Fitel, Bankers Trust and D.E. Shaw (Jeff Bezos). In the late
90’s Bezos began to see the innovation of the internet, and the potential for a
business opportunity. Bezos quit his job on Wall Street in 1994, and moved to
Seattle Washington where he, and a few programmers he hired, began to develop
software in his home garage with a Sun MicroStation’s. This was the initial
office for Bezos and his team developed a test site and asked 300
friends to beta test the site. On July 5, 1994 Bezos opened The
founders vision was to build a virtual shopping place for book lovers. Amazon would
bring the world largest book store to every individual door step of people
around the world. All buyers had to do was search for the desired book and buy it.
The shipping took 30 days to deliver the books to customers in all 50 states
and 45 countries. was a huge success in nineties and became a large
platform for retailers and individuals.

            When amazon began
in 1995, it used two different systems, the website system and the order
fulfillment system. Purposefully keeping the two systems separated for two
reasons, partly because they did not have the technical capacity to join them,
and partly because the company wanted to keep the order systems secure by
keeping them offline. As sales at Amazon kept climbing higher and higher so did
the data in their information systems. By 1997, sales had reached to nearly $150
million for that year alone. During this time, the company had more than 100
separate database’s handling terabytes of data that were running on a many
different servers. In 2000, Amazon decided to remodel the entire server system.
The company spent $200 million dollars on new applications, such as analysis
software from Epiphany (previously known as E.piphany), logistics software from
Manugistics and a new Database Management System (DBMS) from Oracle.
also signed deals with SAS for data mining and analysis (Collett 2002). However,
one their biggest deals was with Excelon for business-to-business integration
systems. This system delivers a direct connection to Amazon’s ERP system either
through programming connections or through a Web browser (Konicki 2000). Around
the same time, Amazon also secured a contract with HP to supply new servers and
IT services (Goodridge and Nelson 2000). These new systems ran the open-source
Linux operating system which allows Amazon to inspect, modify, and enhance
software. Upon completing the software upgrades, amazon reported that they were
able to reduce the company’s IT costs by 24% in comparison to a year previous (Collett

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            When a customer purchases
good(s) on, the purchasing data goes into an information system, a
set of interrelated systems that retrieve, collect, process, store and
distribute information to support decision making and control in an
organization. One of the interrelated systems is the customer relationship
management system. Customer Relationship Management (CRM) is a strategy used by
businesses to learn more about their customers’ needs, wants and behaviors so
they can build a stronger relationship with them. Over the past 20 years, Amazon has continually shown they can
administer a world-class CRM strategy. As a result, the business has created
loyal customers. Bezos company is the most favored and trusted online shopping
portal including millions of customers. Amazon has been able to successfully achieved
relationships with millions of his customers without ever meeting them

            Many benefits
that come from a CRM system. A CRM enables cross selling which means offering
customers products that complement the item they are currently purchasing. Amazon
has become a global platform for both, individuals, and retailers to sell their
products online. Every second thousands of customers are searching and ordering
products on amazon’s website, therefore they must have fast, reliable and
secure information systems. The company has become wildly popular because it
does three things very well: provides the convenience of a one-stop shop from
the comfort of your home; remembers what you bought and when you bought it; and
recommends other products you might like, based on your shopping history. The CRM
is constantly obtaining data and tracking customer information though their searching,
wish list data mining. Through this, Amazon obtained a patent and created “anticipatory
shipping”, a system that uses the collected data on each individual customer to
predict what they will buy, and then ship the products automatically.

            Amazon created
their own CRM software in-house, it is personalized to their exact needs. In
addition, the CRM also deals with most of their customer queries before they
reach the stage where human customer service is needed. For example, Amazon
customers can review their order history, which allows them to see if the order
has been received, processed and if it has been shipped yet. Their returns
policy is similarly automated. Nonetheless, if the customer does need
assistance or have questions, they can call customer service. There, the
customer service agent can access the necessary purchase information to help
resolve any issues. With the help of their own technology and commercially
available, licensed technologies, Amazon has set up many site management,
search, customer interaction, recommendation, transaction-processing, and
fulfillment. Typically, the company will only buy software and other technology
from companies when it is not in an area they specialize in. Amazon likes to focus
their developments on designing and improving the software that is exclusively their
own. Amazon uses a couple of different applications for accepting and processing
orders, managing inventory and ensuring the proper shipment is people prepared for
the customer. The Company’s transaction- processing systems (TPS) can handle
millions of items with different quantities, gift-wrapping options and different
delivery options as well as accepting and charging customer credit cards and gift

            Amazon is the
pioneer for online product recommendations. One of the most successful
technologies Amazon introduced is the ‘recommended items list’. Whether you are
browsing products or adding an item to ther cart, Amazon will show you
recommendations such as “Customers who bought this item also bought…” and “Customers
who viewed this item also viewed…”. The system uses basic data mining and
statistical tools to quickly run correlations and display the suggested
products. When a user is logs into their account, Amazon has a list of
recommend products they might be interested based on their browsing history.

            Amazon also uses a
management information systems (MIS) to help ease management decisions at both,
the strategic and operational levels. This company reflects a successful link between
the information systems at, Inc. and the overall goals of the
organization. The MIS has helped turn the e business into a global company.

            The enterprise
resource management systems have been crucial in the process of collecting and
integrating data with appropriate functions within the organization. The individuality
of ERP systems lies in its ability to integrate the external and the internal
information influencing the management functions within an organization. Arising
as an American multinational E commerce company, Amazon has grown to become the
leading online retailer company. There are two technologies driving Amazon, the
Customer relationship management and Information management. Linux has been a
core strength behind the technology of Amazon. The IT infrastructure of the
organization was built so that millions of operations, queries and issues of
more than half of the volume of sellers could be handled.

            A Transaction
Processing System (TPS) is an organized collection of people, procedures,
databases, hardware and software to record completed business transactions. For
most organizations, the TPS is the basis of the day-to-day activities that
occur in the normal course of business, adding value to its products or
services. E-Commerce websites collect pieces of personal information during the
order placing and purchasing process, being no different. However,
the technology they use to secure this information has evolved to attract not
only the everyday consumers, but also large enterprises.

            The internet has
had a great impact on the strategic information systems that Bezos uses to
compete in the market. When developing and running an e-commerce business, it
is vital to understand the information systems. Bezos started out using website
systems and other fulfillment systems independently to guide security measures,
but as technology advanced Bezos continued to upgrade his information systems
(Imran, 2014). This is very important for Amazon to stay successful, the
systems used needs to be secure and fast, so customers will have trust in Amazon.
A great system that Amazon uses is called Smart Analysis Search (SAS), this
system allows them to analysis behavioral patterns and in return helps them
detect fraud (Imran, 2014). Amazon uses the technology advances to benefit
their security measures, and they constantly monitor the website for fraudulent
activity. Amazon also has a good grasp on the Information and Communication
Technology Strategy it uses. Since Amazon must be able to run effectively 24
hours a day every day, it is very important for Amazon to use a reliable form
of ICT. One of the major forms of ICT that a lot of successful e-commerce
businesses us is called Amazon Web Services (AWS). AWS is a service that allows
for its clients, like Amazon, to grow as much as they like by constructing the
appropriate computer power as part of the software they write (Hilder, 2013).
This service is available through the internet and anyone can use it, they just
pay as they go. The service is a cloud based service and it allows access to
servers, storage, databases, and application services over the internet, and a
company or person only pays for what they use (What is Cloud Computing?, 2016).
Amazon also AWS as its EC security system. Amazon has constructed its own very
successful ICT services and they even share it with the rest of the world.
Amazon is proven to be a very successful e-commerce business therefore they
must have established some great e-commerce strategies to accomplish this. One
e-commerce strategy the