Project Paper
1-Introduction
By Toaa Abdullah
This
report examines how Amazon leverages information systems to improve its dynamic
and structured business processes. It highlights the company's strategic use of
advanced technologies to increase operational efficiency, enhance
competitiveness, and deliver a superior customer experience. The analysis also
identifies current challenges and proposes practical recommendations to further
enhance Amazon's performance.
Founded
in 1994 by Jeff Bezos as an online bookstore, Amazon has evolved into one of
the world's largest and most influential technology companies. The company
operates in multiple sectors, including e-commerce, logistics, cloud computing
(through Amazon Web Services), and digital content. With the launch of Amazon
Prime in 2005 and Amazon Web Services in 2006, the company revolutionized the
online retail experience and established itself as a leader in cloud infrastructure.
Amazon's global reach spans more than 20 countries, and its products are
shipped to more than 100 countries worldwide. As of 2024, the company employs
more than 1.5 million people worldwide. Its customer base includes millions of
consumers, businesses, developers, and public institutions. The company is
widely known for its innovations in artificial intelligence, cloud services,
and supply chain automation.
This
report focuses on the company's use of information systems in its highly
structured, technology-driven logistics and order fulfillment operations. It
aims to evaluate how management information systems can enhance performance,
identify areas for improvement, and propose solutions that align with Amazon's
strategic objectives.
2-Business Strategy
By Nora Abdelsadek
Amazon's business strategy is based on a
combination of cost leadership, technological innovation, and customer focus.
Its success stems from its ability to scale its operations efficiently while
continuing to invest in digital infrastructure, automation, and data-driven
decision-making.
Porter's Five Forces Analysis:
Competition—High: Amazon faces intense competition
from Walmart, Alibaba, Microsoft (via Azure), and Google Cloud. The rapid pace
of innovation increases risks in both the retail and cloud computing sectors.
Threat of New Entrants—Moderate: High entry costs
and technological barriers protect Amazon, but niche competitors continue to
emerge in areas such as last-mile delivery and streaming.
Buyer Bargaining Power—High: Customers can easily
compare prices and switch providers, putting pressure on Amazon to maintain low
prices and excellent service.
Supplier Negotiating Power—Medium: Due to its size
and control of data, Amazon often has stronger negotiating power, but it relies
on global suppliers for logistics, cloud computing hardware, and content.
Threat of Substitutes—Medium to High: Substitutes
include local online retailers, streaming competitors, and enterprise cloud
computing providers.
Competitive Strategy and Business Operations:
Amazon's competitive strategy focuses on
Amazon's competitive strategy centers on achieving
cost leadership through automation, robotics, and predictive inventory
management.
Differentiation through Amazon Prime (fast
shipping, streaming), Alexa's AI integration, and its global Amazon Web
Services (AWS) infrastructure.
Its business operations—particularly logistics,
warehousing, and customer service—are designed for speed, scalability, and
personalization. From intelligent recommendation engines to AI-powered
inventory routing, Amazon deeply integrates its Management Information Systems
(MIS) into its core operations.
How IT Systems Support Strategy:
Cloud computing (AWS) supports internal and
external services, providing scalability and cost-effectiveness.
Artificial intelligence and machine learning
support product recommendations, fraud detection, and supply chain forecasting.
Enterprise resource planning (ERP) systems
integrate inventory, billing, human resources, and logistics across global
operations.
Customer relationship management (CRM) tools track
user behavior and preferences to improve engagement.
These systems support Amazon's strategy by
streamlining operations, personalizing the user experience, and reducing costs,
strengthening its position as a technology-driven market leader.
By Moaz Maher.
An overview of the technique
Amazon's order fulfillment system is one of the
world's most complex and
comprehensive. Orders from clients are received and processed, items are
selected and packed, orders are sent, and real-time delivery tracking is
provided. This system is supported by a network of transportation hubs,
fulfillment facilities, and last-mile delivery services, the majority of which
are automated or semi-automated.
Data, Software, and Hardware Associated
The approach uses a
combination of
l
Smart shelves, barcode scanners, portable scanners, conveyor belts, and
Kiva robots are all pieces of hardware.
l
Artificial intelligence-powered algorithms, predictive analytics tools,
Amazon's proprietary order management system (OMS), and warehouse management
systems (WMS) are all examples of software.
l
Information includes consumer purchases in the past, regional information,
current inventory levels, shipment predictions, and the performance of
third-party logistics.
Amazon Web Services (AWS), which provides cloud infrastructure for
real-time data processing and analysis, brings all of this together.
Important Processes and Individuals
Amazon divides their
fulfillment process into many phases:
l Receiving: Smart
algorithms are utilized to scan the items and store them in the most optimal
shelf places.
l Picking: Human personnel
select items from shelves that robots deliver.
l Packing: The software
advises the optimal box sizes, and orders are either automatically or manually
packaged.
l Shipping: The algorithm
determines the best shipping route and carrier (Amazon Logistics, UPS, etc.).
l Feedback and Tracking:
Customers get real-time tracking information. AI algorithms track delivery
efficiency.
Key persons include IT engineers, logistics planners, warehouse workers,
and customer support agents who interface with the system.
Problems Found with Regional Warehouses' System-Siloed Data
l Even when AWS systems
are linked, the localization of some warehouse-specific data has an influence on
global optimization.
l Workplace Stress and
Ergonomics
Even with automation, repetitive tasks generate physical exhaustion in human
workers, showing that tech-human interaction has to be addressed.
l High reliance on
delivery in the final mile
Despite the system's predicted forecasts, delivery is routinely delayed in
congested urban areas owing to traffic and weather.
l Privacy and Security
Issues
Because of the large quantities of client data involved, any compromise might
cause considerable financial and reputational impact.
l
Scalability issues in emerging markets
Because of a lack of local partners and infrastructure, Amazon's fulfillment
strategy is ineffective in developing countries.
Is this system inter-organizational or enterprise?
Amazon's fulfillment system combines:
l Enterprise Systems (ES)
combine internal processes like as staffing, billing, and inventory utilizing
ERP systems.
l Inter-Organizational
Systems: It communicates with cloud users, logistics partners, and third-party
vendors via APIs and digital platforms.
l Dynamic adaptation is
feasible with this hybrid structure, although cooperation is required.
The Future of Cloud Computing
Cloud computing (via Amazon
Web Services) is a crucial component of the fulfillment process. All real-time
dashboards, order routing algorithms, customer data, and prediction models are
cloud-based.
Possible enhancements:
l Deeper AI forecasting
integration.
l Edge computing enables
faster local decisions.
l Blockchain allows for
tamper-proof tracking.
By: Youssef Hagag
Recommendations
Even though Amazon's information systems are highly advanced and
internationally integrated, several issues prevent them from operating at their
best. The challenges of data silos, ergonomic strain, inefficient last-mile
distribution, security threats, and scalability in emerging countries are all
intended to be addressed by these proposals. In order to address
inefficiencies, boost productivity, and increase capabilities, this section
lists potential solutions, assesses them, and suggests workable plans.
A. Addressing Siloed Data Across Regional Warehouses
Alternative
Solutions:
- Centralized Data Lake Architecture.
- Federated Data Sharing using Cloud-Based APIs.
- Implementing Data Mesh principles for cross-warehouse
collaboration.
Evaluation:
Centralized Data Lakes facilitate
real-time decision-making and accessibility, but they can also create
bottlenecks when traffic volume is excessive.
Federated Data Sharing maintains local
autonomy but necessitates strong governance.
Data Mesh distributes accountability to
teams at the warehouse level, promoting local optimisation and data ownership.
Recommendation:
Use a hybrid approach that blends decentralised access through APIs
with centralised analytics. This allows for more flexible inventory forecasting
and lowers systemic inefficiencies by striking a compromise between the demand
for real-time data and warehouse autonomy.
B. Improving Workplace Ergonomics and Reducing Human Strain
Alternative
Solutions:
- Expand robotic process automation (RPA) to include lifting,
packing, and transporting.
- Introduce rotating task schedules for human workers.
- Deploy wearable health-monitoring devices for early fatigue
detection.
Evaluation:
RPA expansion eases stress but
necessitates a large financial outlay.
Rotating tasks are economical and boost spirits, but they might impede
specialisation.
Wearable tech raises privacy concerns
yet offers real-time monitoring.
Recommendation:
In physically demanding roles, use selective RPA deployment in
conjunction with rotating ergonomic task scheduling. Use this in conjunction
with optional, private health-tracking wearables to promote wellbeing. This
hybrid strategy preserves worker well-being while increasing productivity.
C. Optimizing Last-Mile Delivery in Urban Areas
Alternative
Solutions:
- Use AI-based route optimization with real-time traffic/weather
input.
- Partner with local gig-economy couriers (Uber).
- Deploy micro-distribution hubs in dense urban zones.
Evaluation:
AI route optimization speeds up
delivery, however it depends on the correctness of the data.
Gig partners provide flexibility but less control over services.
Urban hubs shorten travel times, but real estate investment is necessary.
Recommendation:
In high-density
locations, combine micro-distribution hubs with AI route optimisation. Try gig
collaborations in the near future when demand is at its highest (holidays, for
example). This multi-layered approach improves last-mile efficiency, preserves
brand continuity, and boosts flexibility.
D. Strengthening Data Security and Privacy
Alternative
Solutions:
- Transition to end-to-end encryption for customer data.
- Use blockchain for order tracking and data integrity.
- Conduct bi-annual ethical hacking and vulnerability
assessments.
Evaluation:
Encryption enhances security but could
cause delay.
Blockchain is difficult to scale but
transparent and unchangeable.
Ethical hacking is useful for finding
flaws in systems, but it cannot stop breaches in real time.
Recommendation:
All client data touchpoints should be encrypted from beginning to
end. For sensitive or valuable packages, blockchain-based tracking should be
used. To prevent vulnerabilities, include ethical hacking and frequent security
audits. These actions safeguard Amazon's reputation as well as its customers.
Without sacrificing security or customer confidence, Amazon can
greatly increase operational effectiveness, employee satisfaction, delivery
performance, and global scalability with these focused and assessed
recommendations. These enhancements will be implemented in stages to guarantee
long-term, sustainable growth with the least amount of disturbance.
Without sacrificing security or customer confidence, Amazon can
greatly increase operational effectiveness, employee satisfaction, delivery
performance, and global scalability with these focused and assessed
recommendations. These enhancements will be implemented in stages to guarantee
long-term, sustainable growth with the least amount of disturbance.
By Abdelrhman Abdelkhalik
ReplyDeleteConclusion:
For this project, we closely examined how Amazon's business model, operations, and customer experience are supported and strengthened by the use of management information systems (MIS). By seeing how it uses technologies like cloud computing, artificial intelligence, ERP systems, and robotic automation, we were able to find the depth and breadth of its digital backbone. We were also able to find some of the biggest roadblocks to Amazon's fulfillment process, such as data silos, worker burnout, last-mile delivery, and data privacy and security issues.
Despite being the global leader in electronic technology, in our research we discovered that the information systems of Amazon, like those of most other large companies, had problems that had to be tackled effectively. Through collaboration on research, systems analysis, and application of MIS concepts, we were able to develop thorough and thoughtful solutions to problems.
Major takeaways for students:
Toaa Abdullah's biography was key to deciding the topic of study from her short biography, and this set the topic of Amazon's digitalisation, environment, and goals. Her suggestions also set the general direction and the path of the study.
Nora Abdelsadek provided a concise summary of Amazon's business model via Porter's Five Forces and illustrated how the company uses efficiency, innovation, and technology to maintain competitiveness. It was also easy to connect MIS to strategic business results through her slide presentation.
Moaz Maher provided us with a step-by-step walkthrough of Amazon's infrastructure and logistics. He showed us how Amazon's technologies are converging upon each other, including predictive analytics and smart shelves. He also pointed out inefficiencies in the systems and inter-organizational issues.
Youssef Hagag resolved Amazon's operational problems with astute and pragmatic solutions. He came with a solution package for each problem and traded cost, efficiency, and scalability to present his proposals as options for consideration.
Abdelrhman Abdelkhalik concluded the paper by highlighting the overall effect of MIS upon the future and existing operations of Amazon, and by summing up all the findings. By highlighting solo inputs and summarizing the major ideas, I made the report conclude strongly, logically, and as a team.
Team Learning Outcomes: We all better understood the ways in which integrated information systems keep a firm bonded together, particularly in a large firm such as Amazon. Through the vehicle of an analysis of cloud services, logistics, and customer experience models, we came to appreciate the value of bringing conceptual MIS principles from paper to practice. Our group process showed how useful it was to differentiate work and maintain communication lines so that the product was logical, coherent, and presented well.
In short, it is through investment in those information systems that enable automation, insight, and scale that Amazon is able to command world markets. By regularly updating such systems as far as threats and opportunities are concerned, Amazon is able to continue to lead and map the digital economy. We have been building ourselves theoretically and practically by way of this project, as well as positioning ourselves to criticize and enhance real-world systems in our working lives to come.