INFORMATION SYSTEMS FOR MANAGEMENT

TRIMESTER-1 PROJECT

Submitted By:
Peuli Das B029
Sanjana Bisht B038
Veer Jain B053
Vikram Jaswal B054
Saurabh Pratap Singh B040
Information Systems

TABLE OF CONTENTS
Serial No. Topic Page No.
1 INTRODUCTION 2

2 AMAZON CRM SYSTEM 3

3 HOW AMAZON USES CRM SYSTEMS 3-4

a) Customer Selection
b) Customer Acquisition
c) Customer Retention
d) Customer Extension

4 CRM USES BY AMAZON 4-5

5 RECOMMENDATION FOR AMAZON.COM 5-6

6 AMAZON INVENTORY MANAGEMENT 6

7 TYPES OF INVENTORY MANAGEMENT SYSTEM 6-7

8 ORACLE ERP 7

9 CONCLUSION 8

10 BIBLIOGRAPHY 8

1
Information Systems

INTRODUCTION
Amazon.com, the Seattle-based multinational e-commerce company, is the largest retailing online company
with over tens of millions active customers and approximately three times the revenue against the closer
competitor in the Internet sales, as of 2010. “Earth’s biggest selection and to be Earth’s most customer centric
company” is the vision of the company.
It has been founded by Jeff Bezos and has been gone online in 1995 by selling books. Jeff Bezos had thought
that the ease in searching and browsing of hundreds of thousands of book titles in a short time could have been
offered by only the Internet. The company soon has widened its selling by music industry products, electronics
and technology industry products, appliances, automotive electronics, movie industry products, jewellery,
watches, health care items, beauty products, clothing, furniture, food, toys and so on. The company has
expanded its e-commerce platform by establishing separate websites in UK, Canada, Italy, Japan, France,
Germany, and China, which the countries use internet widely. It has also provided international fulfilment to
some countries for some of products.
The company has designed an e-business strategy such that the many technological innovations provide to
offer hundreds of thousands of products at lower prices, in a single sitting shopping and in a short shipping
time. The company`s e-business model has not only based on selling products but collaborating with its
business partners and servicing its customers. In 2000s, the company has offered its e-commerce platform to
individuals and the other retailers by launching “Marketplace” and “Advantage” programs that enable its
partners to promote and sell their products directly onAmazon.com. It has provided the company to widening
its product range and leveraging its power by world class retail brands. On the other hand, the company has
improved its integrated system via internet by managing information system and has maintained technical and
application system. By giving the opportunity to customers of less prices, widely selection and ease in, the
company has had the success of gaining its popularity and becoming the world`s largest online retailer.
It can be said that the secret of the company`s success lies under the operation of gathering and keeping the
customers` information, and making the right decisions by analysing these data and information. The company
has developed an information system to collect and keep vast amounts of intimate information which has been
voluntarily disclosed by its millions of customers. The voluntarily shared data allows Amazon.com the larger
detailed profile of customers than any other retailers. Business and Information Systems at
Amazon.comAmazon.com uses two main systems which have been developed for its e-business strategy to
manage vast number of products and tens of millions of active customers. They have been mainly used for
renting space on its e-platform to others. AWS (Amazon Web Service) and S3 (Simple Storage Service), has
allowed the partner retailers, the individual sellers and the developers to advertise their products through the
Amazon.com web site by building their web-based applications in a reliable, scalable, and low-cost way and
gathering their data.

2
Information Systems

AMAZON CRM SYSTEM

Amazon is now the largest internet retailer in the world as measured by revenue and market capitalization.
And a lot of this success can be attributed to their dynamic CRM system. Short for Customer Relationship
Management, a CRM software is the key to managing and synchronising your business communication and
information. In today’s world, CRM is no longer considered a trend, but rather as a standard requirement for
most businesses. While CRM has been around since the 1990s, it has gone through a massive development
over the recent years. Today’s CRM systems can synchronise and group your external contacts, give
employees up to date information about the customers, and ensure that the client has the best possible
experience when dealing with the company.
In order to gain customer satisfaction and loyalty Amazon uses Customer Relationship Management system
(CRM). CRM system follows the following application to collect information of the customer. All personal
information of customers their credit card record, transaction record, order record, profile, their past purchase
history is collected in the database. The order processing system takes care of the transaction record with
secured transaction method and it delivers instruction to the delivery system for the execution of shipment.
Through customer feedback, customer interest, wish list, product reviews web page system collects customer
information. Automated communication is ensured with customers through e-mail and massage systems and
order information systems. With the CRM system amazon successfully integrates customer sales, services and
communication.

How amazon uses CRM system

Amazon has extensive implementation of customer relationship management. Each and every customer are
taken in account in amazon.com.

Customer Selection:

Customer selection part through Amazon.com website has given Amazon an extra benefit in order to boost
their business. Amazon uses numerous methods to select customer by knowing their customer behavior.
Amazon’s early target was people who love books. But days its target market is vast and challenging. Amazon
through their website, PR strategy target people to motivate them to use amazon.com.

Customer Acquisition:

 Customer account:

Every customer buying through amazon.com has his/her profile in amazon website. Amazon.com creates a
database to store the account, information of the customer, credit/debit account. Through the customer account
amazon knows about the customer, their personality and last of all can satisfy them.

 Wish List, review system:

Amazon always encourage customer to add favorite items to the wish list. This helps amazon to know better
about the customer. Product review by customer not only be help customers to find and select product but also
acts as direct marketing event for amazon.com. Amazon allows making connection in between the customer,
3
Information Systems

communicating and viewing their interest help to amazon to gain customer trust and initiate world of mouth.
In the first three months of 2000, Amazon acquired 3 million new customers without any investment. To
satisfy customer Amazon uses information acquired through customer account, wish list etc. Amazon brought
number of systems to satisfy customer. 1-click ordering has been an excellent system innovated by amazon
which revenue less than 20 sec to enable purchase.

Customer Retention:

Amazon.com emphasizes customer retention over just acquisition. An analysis shows 40% of amazon’s
customers are frequent users. This indicates customer always come back to purchase product in amazon.com.
Amazon does retain customer very smartly and sincerely by satisfying its best buyer through good service and
effective communication. Amazon founder Jeffry P. Bezos said “The optimal to do is to spend 70% of your
time, energy, focus and dollars building great customer analysis and 30% shouting about it. Integrating lean
advertising, service and selling amazon acquires customer and through great customer experience it retains
the customer.

Customer Extension:

The market place is very competitive even for amazon.com with competitor like e-Bay, BestBuy breathing
very behind amazon. Customers now days get every single distraction through other competitor’s service and
brand value. It is very challenging to every retain customers. But even though Amazon’s better customer
service, trust factor, brand value initiates them rapid and growing customer popularity. About 70% of
Amazon’s customer trust amazon and recommend amazon to their friend. Amazon integrated communication
in between customers. This helped amazon to retain even extends their customers. Customer’s reviews of
products trusted by other customer and motivate them to buy.

CRM USES BY AMAZON

Collection of Data

All customers shopping from Amazon needs to create an account which makes it easier for them to make
future purchases. These accounts also provide Amazon an opportunity for target marketing i.e. customers can
be emailed with offers and promotion based upon their past purchases.

Personal Data Storage

When a customer makes an account all its personal details, account information, address and contact details
are stored for easy and quick future purchases. This benefits the customers with the ease of shopping.

Recommendations

Amazon is the pioneer or giving recommended product features. When a user is logged in his account, Amazon
recommends a number of products to the customer in which he might be interested. This recommendation is
based on the assessment of the past buying behaviour of the customer. It has also introduced a ‘customer who
bought this’ feature and other features which are very promising in boosting sales without pressurising the
customers.

4
Information Systems

Customer Support

The return policy of Amazon is totally online. In case of any issue with the product the customer calls the
customer, service operator who has complete access to the information of the customers purchase history etc.
This helps and makes the return policy easy and all issues are dealt with efficiently and quickly.

Kindle Marketplace

With all the details about personal accounts, storage, payments and recommendations, the kindle products and
experience are not the same without CRM.

RECOMMENDATION FOR AMAZON.COM

Amazon.com is the ultimate online retailer around the world. Its nearest but not even close
competitors are e-bay and best buy. But the competition is growing day by day.

Competing in the market:

Like past, amazon in future will have to come up with special something. The global market is changing day
by day. Business competitors are investing large to take amazon down. There is no room for relaxation. It is
very challenging and has to be consistent in the market to be number one retailer shop.

Innovation of new Product:

It is essential for amazon to think out of the box and bring new products to satisfy and retain
customer to be loyal to amazon.com. Amazon always offered its customer better quality and
better service. But in future it may not be the same. People in today’s world ask for more.
Amazon has to be smart enough to understand the customer need before even customers know about it.

Integration of New Technology:

Technology is making progress like the spread of light. Company like Amazon needs to be
adaptive and technology friendly to retain its domination in the market. Amazon’s new technology of Drone
delivery system indicates it is planning and investing significant amount of money in technology for near
future.

Customer Loyalty:

For a upward revenue stream customer loyalty is essential. Amazon’s most of the buyers are its repeat
customers who are loyal to amazon. But growing competition can be a risk to amazon’s loyal customer.

Global Expansion:

Amazon is expanding its business around the world. But this may cause significant strain in
number of sectors like management, inventory, supply system and more over to Amazon’s market place.
International market is very challenging because of political and economic conditions. Upgrading e-CRM and

5
Information Systems

investing more towards customer information for better understanding the customer needs and behavior is
essential.

AMAZON INVENTORY MANAGEMENT

Amazon has a number of factors that go into serving up the right product to the right customer. While Amazon
inventory management can drive one factor in the search results, there are many factors to be considered.
From a high level, there are two inventory options. First is Fulfillment by Amazon (FBA), where Amazon
tells the merchant where to send the product, then manages distribution throughout their fulfillment locations
based on sales. Second is self-fulfillment, where the merchant manages their own supply chain and fulfillment.

Types of Inventory Management System

Restock Pro

RestockPro is an easy to use cloud-based platform that streamlines FBA business and helps to grow profits. It
has one dashboard for all inventory data, provides actionable decision support; automation tools that save
time. First, RestockPro captures your FBA data and transforms it into inventory intelligence, enabling you to
monitor sales velocity, competitive listings, expected margins and more. Then it becomes your in-house
supply-chain counsel, making recommendations and sending out alerts on when and how much to reorder.
Once you’ve finalized your decisions, RestockPro can drive process automation. It creates POs for your
suppliers and inbound shipments to Amazon, captures and organizes shipment plans, and provides visibility
into Amazon FBA inbound shipment receiving.

Appath

Appath provides online multichannel inventory management in a simplified central solution. Product
inventory quantities are updated across all of your selling channels as an order is received – making sure items
stock are in sync so no overselling. Features include inventory sync, drop shipping, bundling/kitting, multi-
warehousing and much more. Appath is connected with ecommerce solutions and major online sales channels
of Amazon, Ebay, Shopify, Big commerce, Magento and Magento 2, Newegg, Sears and others.

Teikametrics

This app specializes in FBA (Fulfillment by Amazon) and it helps Amazon sellers in developing and executing
smart inventory systems. Their features include re-pricing strategies to compete smarter, valuable sales
velocity and sales ranks insights, as well as product scouting to grow your inventory. Teikametrics also sorts
out restocking opportunities based on expected profits to achieve smarter restocking, reduce stock-outs and
increase profits.

Shopkeeper

This application enables the business owners to track their profits margins including taxes and other expenses.
Thereby helping in inventory forecasting taking seasonality in account. It has widgets with important metrics,
growth curve and overall profit margin.

6
Information Systems

Inventory Lab
It has tools stratify and scoutify. With Stratisy one can research product, list and manage inventory, track
expenses, analyse profitability. Scoutify application gives a powerful advantage when sourcing profitable
inventory for business using mobile device.

Orderhive
Orderhive is a SaaS-based inventory management software for multichannel online sellers, conceptualized
and developed by OpenXcell Technolabs Pvt Ltd. Orderhive, as the name suggests, simply allows sellers to
manage multiple channels from a single integrated backend system. Openxcell with its hands-on experience
in serving the retail & eCommerce industry had closely witnessed the necessity of a dedicated centralized
inventory software that can automatically import products (with their inventory), sales orders, and customers
from channels.

ORACLE ERP
Businesses of all sizes are running Oracle Applications in the cloud to simplify infrastructure management,
improve time-to-market, and lower costs. Amazon Web Services offers a reliable and secure cloud
infrastructure platform that enables businesses to quickly launch entire enterprise software stacks from Oracle
in the cloud. Oracle customers can also use their existing software licenses on the AWS cloud with no
additional licensing fees.
Alluvia is designed for business managers; platform includes dozens of pre-built integration templates and
easy to use drag and drop mapping wizard.

Business Value of ERP

Enterprise resource planning (ERP) systems integrate the primary applications in an organization. A typical
ERP system provides applications for accounting and controlling, production and materials management,
quality management and plant maintenance, sales and distribution, human resource management, and project
management.

CONCLUSION
Information System has helped in shaping the business model of Amazon and also can analyse needs of
customer tastes preferences.
AWS, Amazon Lex etc. are the products which has helped local businesses in forecasting theor sales and
inventory and has helped in CRM.
Tools like sellics, orderhive, appath etc. improves inventory management of different businesses.
Through these business models Amazon has emerged as a pioneer and a giant player in cloud-based software
technology and solutions company.

7
Information Systems

BIBLIOGRAPHY

https://www.researchgate.net/publication/261440748_A_STUDY_ON_AMAZON_INFORMATION_SYST
EMS_BUSINESS_STRATEGIES_AND_e-CRM
https://phdessay.com/the-business-value-of-information-systems-case-study-amazon-com/
https://aws.amazon.com/enterprise-applications/oracle/
http://blog.inventorylab.com/
https://www.medicineword.com/value-of-erp-system/
https://alluviaplatform.com/product/integrations/amazon/amazon-2/
https://www.orderhive.com/
https://shopkeeper.com/