management information system case study of amazon com

Amazon’s Information Management System: Description and Analysis

Introduction.

The coordination of supply chains is essential for big corporations that provide goods for their customers. Large volumes of products that need to be supplied frequently require logistic planning. To satisfy consumers’ needs in the most efficient and timely manner, companies utilize information management systems (IMS) that help find the most efficient ways of achieving coordinated cooperation between the different departments. Amazon.com is one of the world’s largest online retailers that operate across the globe and serve millions of people. Apart from its operations within the realm of e-commerce, Amazon performs in the spheres of artificial intelligence and cloud computing. This direction allows the company to obtain a significant advantage in comparison with its competitors. According to Al Imran (2014), Amazon utilizes its information technologies to facilitate its supply chain coordination. Amazon Web Service (AWS) and Simple Storage Service (SS) are the main information systems, within which the company operates its databases (Al Imran, 2014). The IMS allows for effective coordination of all processes inside the company for a better consumer experience.

Recommendations for Competitive Advantage Improvement

The speed of information processing is key in delivering goods for the customers on time. For an e-commerce business like Amazon.com, the ability to deliver orders to consumers in the shortest period is the stepping stone of competitive advantage. On its official website, the company claims that it prioritizes continuous innovations for the improvement of supplies and customer experience (Amazon, 2020). Therefore, it is important to intensify the efforts aimed at research of the current problems with supply information processing and resolve them using the technological resources Amazon has.

The Contribution of IMS into the Coordination of Supply Chain Partners

The variety of services and goods provided by Amazon.com implies the necessity to partner with numerous suppliers in various parts of the world. To maintain its high level of order processing daily across the globe, Amazon partners with “Excellon for business-to-business integration system” (Al Imran, 2014, p. 3). Importantly, the ordering process from the company’s website is automated, which allows the processing of the delivery information in a timelier manner. The company utilizes a complex and highly effective enterprise resource management database that provides an opportunity for fast order delivery and coordination of the suppliers for a given order (Al Imran, 2014). The database runs all necessary data to facilitate the efficiency of order delivery depending on the distribution of suppliers, warehouses, and customers’ delivery destinations. In such a manner, the IMS significantly contributes to the automation of information processing and allows for eliminating business mistakes, as well as improving customer experience.

The Contribution of IMS into the Monitoring of Orders and Inventory Levels

With the help of the IMS, Amazon.com can facilitate the process of monitoring the orders depending on customers’ activity. Since the information systems utilized by the e-commerce organization collect and analyzes data about consumers’ activity, Amazon provides customized delivery and recommendation services (Demir, 2017). To monitor the status of orders, the data is analyzed and communicated between the departments to ensure fast and accurate delivery. Customers may purchase items from Amazon’s online shop and store their purchasing information for further use. Also, they can postpone the purchase by saving the information to the company database. All these processes, as well as the company’s monitoring operations, are run by the “Infomediary model of Management information systems” (Demir, 2017, p. 13). Thus, the availability of information contributes to effective order monitoring and better service for customers.

Similarly, IMS helps to manage inventory levels and distribute goods across the warehouses wherever necessary. A broad system of logistic decision-making systems is utilized to provide multiple shipping options for buyers (Demir, 2017). Once placed and attributed with a shipping method, an order is forwarded to the information processing system for integration with the logistics and delivery departments of Amazon.com. This information provided by the customer is “used by the logistics department of Amazon to ensure that the customer receives the products within the stipulated lead time” (Demir, 2017, p. 14). This highly technological process is conducted using internet technologies, “web service, middleware, groupware, and most importantly, networking” (Demir, 2017, p. 14). Indeed, networking is key to effective coordination of supply chains and inventory management. It allows for fast and efficient exchange of valuable information for better achievement of business goals.

Analysis of the Importance of Managing Information

When analyzing the IMS of Amazon.com, the high importance of information management has been identified. Since the company operates under the influence of the competitive e-commerce business environment and occupies a leading place, it must utilize up-to-date, useful technology to run all the steps of business operations. They include consumer search history and personal information, order placing, shipping method, delivery date, and time. Two aspects of Amazon’s business enforce its intensified utilization of IMS. Firstly, the company sells a wide range of goods, which requires a partnership with multiple suppliers. Secondly, Amazon partially specializes in computer technologies and data storage, which amplifies its competitive advantage in effective information management. Thus, IMS is the core of the successful business performance of a large e-commerce corporation like Amazon.com.

Amazon . (2020). Committed to a sustainable future. 

Al Imran, M. A. (2014). A study on Amazon: Information systems, business strategies and e-CRM. Web.

Demir, A. (2017). Management information system: Case study of Amazon.com . Journal of Research in Business and Management, 4 (11), 11-17.

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How Amazon Does It: Decision Making Inside The World’s Most Daring Digital Company

• Amazon , Jeff Bezos

Amazon’s Jeff Bezos focused on the oldest of old business principles—extraordinary customer obsession to the level that each customer is treated individually —and turned it into the ultimate business purpose of his company. As everyone knows, digitization was the engine that enabled the company to treat each one of its more than 100 million customers as if they were shopping at a corner store in a small town. But the true magic in how Amazon built this system isn’t just technological—it’s organizational. It’s all about making better decisions and making them fast . Here’s how they do it—and how you can, too.

High-Quality, High-Velocity Decision-Making

Five rules can guide you toward high-velocity decision-making:

1. Recognize there are two types of decisions.

To achieve high velocity, Bezos empowers his organization and categorizes all decisions into two types. Type 1 decisions “are consequential and irreversible or nearly irreversible—one-way doors… If you walk through and don’t like what you see on the other side, you can’t get back to where you were before,” Bezos wrote in a 2016 shareholder letter. Such decisions should go through a “heavyweight” process—being made slowly and methodically with great deliberations and consultation—to ensure a high-quality decision. Taking type 1 decisions too lightly is a potentially fatal mistake.

Type 2 decisions refer to those that “are changeable, reversible—they’re two-way doors. If you’ve made a suboptimal Type 2 decision, you don’t have to live with the consequences for that long. You can reopen the door and go back through,” wrote Bezos. These decisions “can and should be made quickly by high-judgment individuals or small groups.” As CEO, you should identify the Type 2 decisions and delegate.

The distinction between two different types of decisions and, thus, two different types of decision-making mechanisms must be crystal clear. It beats bureaucracy, analysis paralysis and improves, over time, people’s judgement in decision-making.

2. Don’t make all decisions by yourself.

No matter how hard-working you and your top team are, there are only 24 hours in a day. As your business continues to grow, if decision-making remains concentrated at the top, sooner or later, you and your top executives will become the biggest impediment to rapid growth.

3. Don’t wait for all the information.

As Bezos wrote in his 2016 shareholder letter, “most decisions should probably be made with somewhere around 70 percent of the information you wish you had. If you wait for 90 percent, in most cases, you’re probably being slow. Plus, either way, you need to be good at quickly recognizing and correcting bad decisions. If you’re good at course-correcting, being wrong may be less costly than you think, whereas being slow is going to be expensive for sure.”

4. Don’t require approvals that are lengthy and must go through large numbers of hierarchical layers.

When multiple functions actually need to be involved in approving a Type 2 decision, you can transform the traditional sequential process into a simultaneous dialogue for high-velocity, high-quality decision-making. For example, Amazon project teams are free to choose between internal services and external vendors. In the traditional sequential selection and approval process described earlier, this could take two to three months and often result in poor quality because distortion and information flow takes place.

Amazon is a continuous invention machine. It has developed the fastest invention process. It involves a clear, written definition of the product to be developed in excruciating detail both in terms of outputs and inputs. The senior people select a leader, and the leader selects an integrated cross-functional team—they call it a separable, single-threaded team—whose full-time job is to deliver the project. They do nothing else. They think and act on the project continuously until it is delivered and operational. I have personally observed putting this methodology in one, large company. They developed a new idea in eight weeks, and they changed the intensity of competition in their industry. This methodology has done wonders for velocity and shortening the cycle time of decision-making.

5. Don’t wait for everyone to agree.

Everyone has experienced postponed decision-making due to one or a few people’s objection or absence. In some cases, in a drive to have consensus, one person can exercise veto power. Sometimes a decision is made and then reopened in the third meeting, which is very frustrating, energy-draining and time-consuming—and the quality of decision, by definition, is poor.

To solve this deadlock, “disagree and commit.” Bezos did that when his team wanted to greenlight an Amazon Original show that he felt should be dropped, responding, “I disagree and commit and hope it becomes the most watched thing we’ve ever made.” Just imagine how long that call would have taken if the team had to educate, persuade and finally earn commitment from him.

After all the facts are considered and all thoughts are expressed, as Bezos wrote in a shareholder letter, “if you have a conviction on a particular direction even though there’s no consensus, it’s helpful to say, ‘Look, I know we disagree on this but will you gamble with me on it? Disagree and commit?’ By the time you’re at this point, no one can know the answer for sure, and you’ll probably get a quick yes.”

This is a two-way, rather than a one-way, approach. Leaders can use it for high-velocity decision-making, and leaders should also be prepared to practice this principle themselves, as Bezos did in greenlighting that Amazon Studios original program.

Controlling for Quality

Now that you’re making high-velocity decisions, how do you make sure they’re high-quality? 

1. Find the best truth.

In traditional companies, due to the inevitable delay, distortion and manipulation as information is relayed through layers from bottom to the top and the fact that data resides in silos, many decisions are made far from the truth, the whole truth and nothing but the truth. 

Rick Dalzell, former Amazon CIO and Bezos’ right-hand man, has written that Bezos “tries to find the best truth all the time.” This may sound self-evident, but it is a big challenge for traditional organizations usually characterized by strict hierarchy, managing by fear and a command-and-control modus operandi . As a devotee of customer service, he seems to have learned from Toyota’s culture of seeking the root cause of any defect. He actually recruited a high-level guy who was an expert at Toyota in making sure that everyone can detect any defect and take action.

At Amazon, each metric is owned by a human being. If the owner finds a significant anomaly, even if it comes from only one customer, the owner is required to search through to the root cause of that anomaly. That means looking all the way back to the beginning of the process through to the actual customer experience.

Bezos does this himself, personally looking at data, seeking out any defects, then asking people to diagnose the root cause, which could be a root cause across a system in the company. For example, when the topic of lengthy hold times for customer calls came up during an executive meeting, he picked up the phone and called customer service himself to demonstrate the discrepancy between what he was being told—that one-minute hold times were typical—and the reality—his hold time on that call was over four minutes.

2. Imagine the possible change.

In addition to the best truth in a static sense, Bezos takes it one step further, i.e., always using future-back perspective, thinking about how things will change going forward. For example, back in 2005, most Amazon executives were against Bezos regarding launching Prime, i.e., $79 membership per year to enjoy two-day shipping for free. The objection was well-founded. Given an $8 logistics cost per order, assuming 20 orders a year on average by each Prime member, shipping would cost $160 a year more than the $79 membership fee. Diego Piacentini, an ex-Apple executive, reported that “…every single financial analysis said we were completely crazy to give two-day shipping for free.”

What gave Bezos the unwavering conviction despite the siege from all?

The key factor was his undying devotion to customer obsession and having the conviction that it would be made fiscally prudent. Bezos took a future-back perspective, asking the obvious but commonly neglected question: How will the shipping cost change?

He believed it would drop. Why? Because when customers spend more, Amazon’s volume will increase, and that increased scale would help Amazon negotiate lower prices from shipping vendors and decrease the amount of fixed-cost allocation of each shipment. In addition, with continuous system upgrades, Amazon’s logistics system would continue to “drive down Amazon’s transportation costs by double-digit percentages each year.” In addition, the frequency of customer interaction will provide more data, and data is equity.

3. Combat group thinking.

Bezos places huge emphasis on fighting conformity, avoiding group thinking and resisting the conventional thinking that achieving harmony is desirable. He expects people to challenge him. He demands a quality discussion with people bringing in new ideas, different perspectives and, even better, disruptive thinking. He “believes that truth springs forth when ideas and perspectives are banged against each other, sometimes violently,” writes Stone.

Amazon’s Leadership Principles state that leaders are “obligated to respectfully challenge decisions when they disagree, even when doing so is uncomfortable or exhausting; they do not compromise for the sake of social cohesion.” Amazon employees well understand their obligation, not only to the company but also to the customer and to the shareholder. Also, as John Rossman, former director of enterprise services at Amazon, writes in The Amazon Way , employees have learned that disagreeing with senior executives is actually beneficial to their careers at Amazon.

I personally observed Ray Dalio, founder and co-chairman of the world’s largest hedge firm, Bridgewater Associates, in his meetings for one full year and saw him very effectively seek opposing viewpoints. Also, he made it easier for people to disagree with him when he often said, “Here is my view, and I could be wrong.” He developed a mobile app that he would use several times in a meeting to get honest input from participants anonymously. Each person in the meeting votes yes or no on a decision and explains why. Every word of the “why” is recorded. Later, all that information is analyzed.    

This process was implemented at the investment firm Matrix Capital. After Matrix founder and CEO David Goel implemented the dialogue process, I observed several sessions where the company’s executive team members logged their candid opinion about whether or not to approve a deal and the underlying detailed logic behind their decisions in the mobile app. The data collected during those sessions was analyzed on a longitudinal basis, which yielded biases analysis, conviction analysis, assumptions analysis and logic analysis, and the process improved the judgment quotient of the whole team.

4. Test through the experiment.

When people have genuine disagreements or when the future is murky, rather than endless debates, fuming arguments and efforts to persuade one another, Bezos opts for an experiment. Brad Stone, author of The Everything Store , vividly captured such a scenario back in 2001. “As usual, Bezos battled his marketing executives. They argued that Amazon had to be on the airwaves to reach new customers. As Amazon’s losses mounted, Bezos’s opposition hardened.”

How to make a decision when two viewpoints are so opposite? Bezos asked the marketing department to run TV commercials in two cities, Minneapolis and Portland, and then measure the additional local purchases they helped generate.

The test went on, the result came back, and the conclusion was clear, “not enough to justify the investment.” Based on this powerful test, Bezos decided not only to cancel all TV advertising, but also to make drastic changes to the marketing department. Today, by any measure, Amazon is the number-one brand in the world—and this was achieved through very little mass advertisement or traditional marketing effort. That is because having a customer experience on an individualized basis that is second to none earns customer admiration for the company.

Experimenting is a natural habit in Amazon. When they do their operating plan, they provide a narrative of learning from the previous year.

5. What if a decision goes wrong?

“We will make bold rather than timid investment decisions where we see a sufficient probability of gaining market leadership advantages,” Bezos stated in a 1997 shareholder letter. “Some of these investments will pay off, others will not, and we will have learned another valuable lesson in either case.”

What’s unique about Amazon’s way of learning? The secret weapon is mid-course adjustment. They ask questions such as what factors should have been considered but did not, what assumptions had been made and why some of them were not reasonable, what critical technology breakthrough was bet on and why it did not happen as expected, and the list could go on. Among all the inputs, the most important one is probably people. Even when you make the right decision in the business sense, if you put the wrong person in charge, the endeavor will probably fail.

Amazon management emphasizes and measures input metrics all the way through. The reason is that if the inputs are right in terms of timing, quality and quantity, the goals will be achieved. This is deep in the culture.

Scaling High-Velocity Decision-Making

In essence, decision-making is about making choices. Tough decisions force us to choose between two goods or weigh two evils. There is no perfect solution, and everything has two sides—the upside and the downside.

In a commencement speech at Princeton University, Bezos asked, “Will you choose a life of ease, or a life of service and adventure?”, “Will you wilt under criticism, or will you follow your convictions?” and “Will you be clear at the expense of others, or will you be kind?”

Of course, Bezos didn’t expect every audience member that day and every future reader of the speech to choose paths like service over ease and clarity over diplomacy, but for people in Amazon, he demands that everyone follow the same principles and methodologies that deliver good decision-making.

Now for the $1 billion question: How to scale high-velocity and high-quality decision-making as your company grows?

1. Crystalize the consistent principles.

In his first shareholder letter back in 1997, Bezos explicitly set forth the decision-making principles of Amazon (see sidebar, right):   Why go through what was surely an onerous and taxing effort? The obvious answer is so shareholders can make informed investment decisions regarding Amazon. It’s also so customers can be more willing to build a trust-based, long-term relationship with Amazon. But, much more importantly, it is for all current and future people working in Amazon, so that every single one of them can clearly understand the decision-making logic and is able to make the right choice when duty calls.

2. Specify the consistent methodology, standard operating procedure (SOP).

On June 9, 2004, we witnessed a brilliant innovation in human management practices. From that day on, Amazon embarked a crusade against PowerPoint presentations and bullet points, and a journey toward what evolved into “Six-Page Narratives.”

If you doubt this methodology’s significance, you are not alone. PowerPoint has become the second language of business. Some companies have a stand-alone functional department devoted entirely to producing PowerPoint presentations.

But Bezos’s was not a capricious whim, but a well-thought-through decision to embrace the value of narrative memos that were often time-intensive endeavors involv ing multiple iterations. Many Amazonians recalled this practice vividly even after they left the company. In The Amazon Way , Rossman wrote, “I can’t tell you how many of my weekends were consumed by this writing and editing process.”

In my teaching at Northwestern University, I required my students to write in two pages, clearly, concisely and to the point, their case analysis. The purpose was to train their brains to sort out what matters from what does not matter and to write that in a way that a teenager could understand it. And I read each paper and made comments.

Why the huge investment of people’s time and efforts? And why do Amazonians present and past revere it so highly?

As Bezos noted in a 2012 interview with Charlie Rose, “When you have to write your ideas out in complete sentences and complete paragraphs, it forces a deeper clarity of thinking.” Authors are forced to run complete analyses, distinguish between subtle nuances, articulate their logic, prioritize various ideas and take full accountability for specific proposals. There is no wiggle room, no hiding place or no safe haven. Everyone has skin in the game and is held accountable.

Another cultural shock for newcomers to Amazon is that nearly every meeting starts with attendees sitting in silence and reading the narratives for 15-30 minutes. This is because business meeting attendees typically begin interrupting presentations on the very first slide, without an understanding of the full picture the presenter has in mind, and the discussion begins to deteriote.

As Bezos noted in the same interview with Rose, “Executives are very good at interrupting….” So reading memos together is a very effective way to ensure that everyone is well-equipped for a high-quality discussion afterwards. As a result, Amazon’s meetings rarely end without clear decisions or specific actions. As ex-Amazonian Samir Lakhani put it, “Bezos has given all employees a standard SOP for ensuring the basics get done well.” 

3. Reinforce the consistent approach in every decision.

One of Bezos’s most conspicuous traits is consistency. He actually attached the 1997 shareholder letter to every single letter afterwards, probably both as a constant reminder to himself, and as a powerful proof to the customers, shareholders and all employees at Amazon.

In 2010, Bezos noted that “customers who browsed—but didn’t buy—in the lubricant section of Amazon’s sexual-wellness category were receiving personalized emails promoting a variety of gels and other intimacy facilitators.” He “believed the marketing department’s emails caused customers embarrassment and should not have been sent” and called for a meeting, reported Stone.

In the meeting, executives “argued that lubricants were available in grocery stores and drugstores and were not, technically, that embarrassing. They also pointed out that Amazon generated a significant volume of sales with such emails. Bezos didn’t care; no amount of revenue was worth jeopardizing customer trust. It was a revealing—and confirming—moment. He was willing to sacrifice a profitable aspect of his business rather than test Amazon’s bond with its customers.

It is such defining moments that convince others of what is important to you and how you will make decisions in tough situations. As Rossman wrote in The Amazon Way , Amazon’s “principles aren’t slogans printed on wall posters and coffee mugs. They are lived and breathed every day by Amazonians from the CEO on down.” We have cross-checked this with the employees and ex-employees who admire this practice.

I urge readers to reflect on each of the Amazon decision-making mechanisms described here as potential ways to improve your organizations for high-velocity, high-quality decision-making.

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Amazon. No, we’re not talking about the South American rainforest. But when it comes to sheer size, we might as well be. Amazon is an ecommerce goliath – a household name where you can buy almost anything you might want or need, and have it delivered the next day. So what’s been the secret behind its massive success?

Amazon’s world class Customer Relationship Management (CRM) strategy, of course.

Amazon is growing every year. In Q4 2022 alone, it reported a colossal $149.204 billion in revenue – a 9% increase from the same period in 2021. According to Bloomberg, Amazon’s founder Jeff Bezos’ net worth is currently $143 billion and he’s well on track to become a trillionaire by 2026  – although the company itself surpassed that particular milestone when it reached a market value of $1.32 trillion in June 2020. So just how did Amazon’s CRM take it from its humble roots as a garage-based online bookseller to unfettered digital dominance?

Developing its CRM strategy has helped Amazon retain customers, and tailor its service around the individual . And crucially, it’s helped it sell to its millions of loyal customers not once, but again and again, while fighting off swarms of competitors.

Salesforce is our top pick for email marketing and contact management. Learn more by visiting Salesforce's website.

The Amazon story

1994: Jeff Bezos founds company as an online bookseller

1997: Reaches one million customer accounts

1998: Expands into selling CDs and DVDs

2001: Makes first profit in final quarter of year

2005: Launches Amazon Prime

2007: Launches the Kindle e-reader

2017: Acquires supermarket chain Whole Foods Market

2020: In February, Amazon becomes just the fourth tech company in the world to reach a valuation of $1 trillion

2021: Purchases 11 aircraft from Delta Air Lines and WestJet Airlines to join ‘Amazon Air' – the ecommerce titan's burgeoning entry into the cargo network space.

2022: Receives awards in the Best Product and Design Team and Best Places to Work in Seattle categories at the Comparably Awards.

2023: Ends its charity donation program in February as a cost-cutting measure.

Bezos initially wanted to call Amazon ‘Cadabra,’ but it was abandoned for sounding too much like ‘cadaver.’ Fair enough… it was a pretty dead idea, anyway!

Amazon's CRM strategy: the secret to success

“We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.”

–  Jeff Bezos , founder and CEO of Amazon

A strong emphasis on the customer is the foundation of Amazon’s success – and it’s the company’s intelligent use of CRM that has enabled this. But it doesn’t use your typical CRM software such as Zoho or HubSpot. Developed in-house, Amazon’s CRM software captures customer data at the point of purchase, which it uses to instantly customise its users’ online experience and get a full view of the customer journey. It learns about customer habits, improves relationships from the first purchase, and reduces returns or even cart abandonment based on the customer’s ecommerce activities.

A conventional CRM will be able to get the job done well for the vast majority of businesses,  but Amazon has the resources to create and maintain its own CRM, which has specific features designed to work seamlessly with the Amazon platform. With its custom-built CRM, Amazon can be 101% sure that operations will run smoothly, workflow can be improved from top to bottom, and customers will be taken care of.

So why do customers keep coming back? Well, Amazon’s interface is simple and easy to use. You can view your own order history and how much you’ve been spending, and returns are handled swiftly through the system. Re-ordering is a breeze, and you can track your purchase through every stage of the delivery process.

All of this is down to how Amazon has managed to overcome common CRM problems, as well as the ecommerce giant's intuitive use of CRM software. Let’s take a look at how it works.

Are you interesting in using CRM software? Check out our guide to the best CRM systems for small businesses .

The top 5 ways Amazon uses CRM

When someone buys something on Amazon for the first time, Amazon asks them to set up an account. Why? Because it makes for a smoother and more personalised experience, as they’ll get recommendations based on their interests.

This allows Amazon to tap back into what its customers like and sell to them on an ongoing basis. Amazon’s CRM brings customers tailored offers and promotions based on their past purchases – a popular approach to CRM that's also well-utilised by the likes of Apple and Uber.

This is why a CRM system is an indispensable tool for carrying out your marketing strategy. It’s not just essential to customer service, but sales and marketing too. To execute the perfect marketing campaign, you must have a clear understanding of what your existing customers need, and a CRM software will be able to help you better analyse customer data so you can address those needs.

2. Personal data collection and storage

Amazon’s CRM stores its customers’ personal and payment details when they create an account to buy something. And no, it’s not for any sinister, shadowy purposes (we hope!) – it simply makes it that much easier for customers to purchase again. They can order with one click – knowing that their personal data is protected by Amazon Pay's industry-leading fraud prevention tools – and have their item arrive the next day.

Just remember that businesses must comply with the General Data Protection Policy (GDPR), an EU regulation on data privacy standards . When customers are confident that the companies they do business with are protecting their personal information, trust automatically grows. This is an essential layer to add to the client relationship you’ve been cultivating.

With that in mind, it’s not hard to see why Amazon is crushing the competition .

Another great thing about Amazon’s CRM? The recommended products feature. When customers are logged in, Amazon will recommend products that might interest them based on their past purchases. Customers can also check out what other people viewing an item also bought, and explore related products with ease. Offering these temptations without pressuring the customer is what’s helping Amazon turn over billions every year.

Likewise, your customer’s purchase history, which is archived in your CRM system, can be used to provide exceptional customer service. Through this information, you can anticipate your customers’ needs based on what they’ve purchased or viewed, which will result in getting your salespeople to sell more.

▶ Read more: The Best Cheap CRM Systems

The big one. Amazon customers can deal with almost every issue they might have through their account. The returns process is all dealt with online too. And if there’s something that does require them to speak with a customer service assistant? CRM to the rescue again. Any Amazon staff they speak to will have their details at the ready, meaning quick and efficient resolutions to all problems – and more satisfied customers.

Using your CRM system, you can program ready-to-use email templates. If a customer complaint comes in and you respond immediately, this allows the customer to relax more, confident that their issue is already being handled. Besides, a quick response is a sign of professionalism and, without a CRM software, you won’t be able to pacify your customers.

Amazon’s use of CRM has been influential in the growth of its services. Its dedication to its customers led to the invention of the Kindle, while Amazon’s online Kindle Marketplace offers a tailored experience with unique book suggestions.

Amazon Prime Video has also become one of the biggest streaming services out there. It offers hand-picked film and TV choices for each customer, which wouldn’t be possible without CRM.

CRM is at the forefront. CRM is at the backend. CRM provides you a 360-degree view of what your customers need. Whether it’s the addition of AI in the system or coming up with a better product to service and, of course, retain existing customers, CRM is a huge factor in helping you unlock business growth.

Next Steps: how to start using CRM

CRM might just be the most important tool in your customer communications arsenal, but you need to know which CRM software you should invest in. A good one can help you increase sales, manage your staff, create better marketing campaigns, analyse data, and nurture leads.

Discover how CRM is redefining the success of other major brands with our CRM case studies , or jump straight into choosing a CRM system for your business today:

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CRM Software and Systems

The 10 Best CRM Strategy Examples

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Big Brand CRM Case Studies

Common CRM Problems and Solutions

The 7 Best CRM Software for Marketing

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A STUDY ON AMAZON: INFORMATION SYSTEMS, BUSINESS STRATEGIES AND e-CRM

This is a academic level case study on information systems, business strategies and e-CRM system used by Amazon for their online activities. Amazon for their e-commerce activities uses number of information systems in order to gain competitive advantage over its competitors.This case study indicates some of the system used by Amazon.

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Zenodo (CERN European Organization for Nuclear Research)

SRINIVASA RAO KUNTE

muskan saxena

Amazon is the first large company that sells goods and services over the internet it was founded by jeff bezos in 1994. Amazon started out as an online book store then it grows quickly to add new items such as DVD’s, video games, electronics, clothing and more to the extent that the company logo symbolizes means that they sell all products from A to Z. Amazon.com try their best to get customer loyalty and trust. They offer state shipping service and they have many retail stores in different countries. It also purchases customer data and information to achieve customer needs and wants. Amazon is one of the first in the world to sell online and has many competitors like: ebay, rakuten and flipkart. Therefore, amazon has own over 40 subsidiaries includes: zappos, shopbop, IMDb, Amazon Prime, appstore, and amazon drive.

Adaeze Ezeanioma

Texila International Journal of Management

Texila International Journal , Chukwuka Ukeni

The success of any business is dependent on the strategy/strategies that are deployed in the operation of such a business. Strategy is a critical determinant of business success. Amazon.com is one of the most successful brands in the world; the company has been in business for over two decades and has recorded an unprecedented business success in human history. In this research work, the key strategy behind the success of Amazon will be extensively investigated. Given the unusual success rate of this organization over the past two decades and their high prospect for greater success, it becomes imperative to investigate the strategy behind this tremendous business success in-order to unveil and/or re-emphasize an established business principle that may not be obvious to many businesses. The purpose of this research is mainly to identify these strategies and extend further emphasis on the viability of such business strategies in order to strengthen existing research on the subject matter. Using the waterfall methodology, the history of the company will be reviewed, the financial reports, company memos, press releases, etc., will be analysed. The evolvement of the business from its inception as an online book retailer to its diversification into numerous other lines of businesses will be reviewed and analysed.

Information & Management

Electronic commerce or E-commerce allows consumers to electronically exchange goods and services with no barriers of time or distance. More customers moved from traditional purchase to e-commerce because it is often faster and cheaper. Besides, e-commerce offers more convenience and flexible for customization option of products and services.

Practical Guide to U.S. Transfer Pricing, 3rd Edition

Charles Edward Andrew Lincoln IV

Amazon is considered the preeminent online retailer in the world. It operates in varying areas from robotics, movie databases, web services, audio books, food markets, etc. Its expansive reach is a matter of e-commerce highly dependent on the logos and Amazon trademarks, such as the Amazon smiling face, the Amazon logo, etc. The E-commerce industry falls into the category of internet and software services according to S&P’s Industry Surveys on “Internet Software & Services.1 E-commerce can be categorized into two major segments on the internet: business-to-consumer (B2C) and business-to-business (B2B).2 Amazon.com falls into the B2C category, because Amazon’s main target is consumers. Amazon is the largest online retailer in the world. But it operates with a great deal of competitors. Below is a chart of the main competitors Amazon deals with in the economy. Amazon can also be viewed in light of Michael Porter’s Five Forces analysis in terms of value drivers as well. Amazon operates in the global marketplace as a web-based retail company, although it’s recent merger with or acquisition of Whole Foods suggests it sees a “brick-and-mortar” presence throughout the world as an integral part of its future in addition to the online market.6 However, Amazon still “mostly” operates online and sells products online. Amazon operates as an internet retailer company. It operates online and sells products online. According to the 10k filing Amazon provided with the Securities and Exchange Commission, Amazon engages in a large variety of products.7 It primarily operates as an online retailer through its algorithms to predict what users want to buy and the integrated search engine that enhances the user’s experience. This is a chapter in a book.

case study of amazon e-commerce business model

Alexandru Gavrila , Delia Babeanu , BOLDEANU DANA

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• Management and Governance

Management and Governance customer case studies

With AWS Management and Governance, customers can enable, provision, and operate their environment for both business agility and governance control.

A bank that “lives on your smartphone,” Monzo has already handled £1 billion worth of transactions for half a million customers in the UK. Monzo runs more than 400 core-banking microservices on AWS, using services including Amazon Elastic Compute Cloud (Amazon EC2), Amazon Elastic Block Store (Amazon EBS), and Amazon Simple Storage Service (Amazon S3). One of the initial reasons Monzo chose AWS was the need to comply with banking regulations. Monzo also segregates parts of its infrastructure using separate AWS accounts, so if one account is compromised, critical parts of the infrastructure in other accounts remain unaffected. The bank uses one account for production, one for non-production, and one for storing and managing users’ login information and roles within AWS. The privileges that are assigned in the user account then allow users to read or write to production and non-production accounts. Using AWS CloudTrail, Monzo logs activity to Amazon S3 buckets in another separate audit account. Nobody can log in to that account, so the records remain immutable. Amazon S3 is also used in a final backup account to store encrypted backups from the production account. It took Monzo a day to migrate from its old account to a multi-account setup. In the future, routine management will be even easier, says Simon Vans-Colina, an engineer at Monzo. This is because the company will administer its Terraform infrastructure management software with the AWS Organizations API.

“This level of protection helps me sleep at night.”

Simon Vans-Colina, Engineer - Monzo

GoDaddy is the company that empowers everyday entrepreneurs. With 19 million customers worldwide, GoDaddy is the place people come to name their ideas, build a professional website, attract customers, and manage their work. GoDaddy built a self-service portal for builders to automate GoDaddy as well as AWS processes, including AWS account creation and deploying an AWS Landing Zone with AWS Service Catalog products. AWS Service Catalog provides GoDaddy builders with standardized patterns and increased agility, while allowing them to maintain optimum security posture and standardization. Teams can rapidly build a library of pre-approved, battle-tested services published in Service Catalog, including Amazon Aurora, Amazon DynamoDB, Amazon EKS, Amazon API Gateway, and AWS Lambda.

“Service Catalog helps us meet our objective to enable builders to go from concept to cloud in under 6-hours, while raising the bar on engineering rigor. We have provided a developer first methodology that allows teams to move quickly, and helps us achieve self-service governance at scale.”

Demetrius Comes, VP of Engineering - GoDaddy

Intercom is a software company that builds a suite of messaging-first products that all modern internet businesses can use to accelerate growth across the customer lifecycle, including acquisition, engagement, and support. The company implemented AWS Management and Governance services to replace various manual or bespoke processes, allowing them to gain visibility and control of their AWS infrastructure.  

“Our use of AWS Systems Manager has saved hundreds of engineer hours per year by fully automating patch management and automatically fixing broken hosts. We use Amazon CloudWatch for day-to-day autoscaling, as well as resource utilization management and tracking. With AWS CloudTrail, we can audit logs for changes, allowing us to meet compliance requirements. Using AWS Config, we can easily visualize and navigate timelines of configuration changes in our environment. Overall, the Management and Governance services have allowed us to establish secure management at scale while saving costs.”

Brian Scanlan, Principal Systems Engineer - Intercom  

Experity Health

Experity Health is an organization devoted to the patient-centered healthcare revolution. Their complete suite of software and services empowers urgent care providers to deliver on the promise of people-first healthcare. Experity relies on AWS Management and Governance tools to deliver their managed service platforms for practice administration and medical record software. With Amazon CloudWatch, AWS CloudFormation, AWS CloudTrail, AWS Config, and AWS Systems Manager, Experity Health has been able to find a scalable solution for managing hundreds of instances without paying large licensing fees.

“Amazon CloudWatch Logs has dramatically decreased the amount of time we spend troubleshooting our services. Instead of having to monitor and check all of our resources for errors individually, we can query our CloudWatch Logs, which show all the activity across our AWS environment. We use CloudFormation to create consistent environments for our users. Instead of working for weeks to create servers, configure them, and document all the configurations, we use CloudFormation templates to define our infrastructure, which has saved a significant amount of time and allowed us to automate our deployments. With Systems Manager, we no longer have to spend time checking all our AWS services individually, but have a single user interface that allows us to view and perform tasks on multiple systems at once.”

Brian Olson, Cloud Architect, Experity Health

Deloitte is a network of independent firms providing audit and assurance, tax, legal, risk and financial advisory, and consulting services to a wide range of clients in 20 industry sectors. In the U.S., Deloitte LLP and Deloitte USA LLP serve more than 85 percent of the Fortune 500. Deloitte’s ConvergeHEALTH Miner solution is a suite of tools and services that help accelerate data gathering, analysis, and management across the healthcare research lifecycle, accelerating time-to-market for new therapies, reducing data analysis run times and operating costs, getting medicine to patients faster, and expanding its safety and effectiveness analysis to improve patient outcomes. Miner leverages a wide range of AWS services. They used AWS CloudFormation and AWS Service Catalog to get Miner to clients faster using infrastructure as code. Deloitte chose AWS CloudFormation templates to code the infrastructure, which it can then deploy in one click using AWS Service Catalog. AWS Service Catalog allows organizations to create and manage catalogs of IT services, including complete multi-tier application architectures. With this approach, Deloitte has greatly accelerated deployment times for Miner. In addition to faster deployment, using AWS Service Catalog helps clients cut costs.

“Building each environment from the ground up typically took two skilled engineers two to three weeks… Using AWS Service Catalog means we can deploy a full-featured Miner environment in about 45 minutes. It’s one-click simple. Each deployment has tested and proven security and networking configurations, so engineers don’t have to worry about those things.”

Jinlei Liu, Vice President of Product Development - Deloitte

“Customers can easily turn instances off when they are not being used and then turn them back on again instantly when they are needed… Simply by turning them off on nights and weekends can save clients about a third of associated cloud compute costs.”

Kristin Feeney, Senior Data Scientist - Deloitte

3M Health Information Systems

3M Health Information Systems (HIS), a division of the global science company 3M, helps providers, payers, and government agencies anticipate and navigate the changing healthcare landscape. 3M HIS decided to decrease its IT operational overhead so it could focus more intently on its core business— healthcare analytics. 3M HIS needed a solution that could help it eliminate the bottleneck created by manual provisioning of development pipelines while adhering to crucial governance and control requirements. The 3M project team used AWS Service Catalog and AWS CloudFormation templates to improve the autonomy of 3M HIS teams using the AWS CodePipeline and Jenkins-based CI/CD platform. Using AWS Service Catalog, 3M HIS creates, manages, and governs AWS CloudFormation templates that provision development pipelines in just a few clicks. These pipelines are preconfigured for specific teams and purposes, in compliance with the organization’s information security policies.

“By using AWS Service Catalog, I can have a new pipeline ready in 10 minutes, instead of needing days to build it manually.”

James Martin, Manager of Automation Engineering - 3M Health Information Systems

Copebit is a Swiss AWS Partner that implements cloud solutions for their customers. The company decided to use AWS Management and Governance tools for their own services and for clients. Using Amazon CloudWatch, AWS CloudFormation, AWS CloudTrail, AWS Config, AWS Service Catalog, and AWS Systems Manager, Copebit focuses on client projects related to DevOps, Containers, and Serverless Technologies.

“We use Cloud Formation and Service Catalog to automatically provision a number of resources, including Config, Systems Manager, AWS Budgets, and CloudWatch. As a result, every client we onboard is configured according to the well-architecture framework. With these services, we have found a way to achieve secure management at scale, establish end-to-end IT lifecycle management, and gain operational visibility. With CloudFormation, we can configure a set of standard templates based on best practices, which can be implemented for each client and each account. With CloudWatch and Budgets, we can easily visualize important metrics, which leads to reduced costs. We use Config and CloudWatch to continuously monitor workloads, which reduces operational overheard. We are relieved that our teams and our customers no longer have to pick between business agility and governance.”

Marco Kuendig, Senior Consultant - Copebit

Dbvisit develops, sells, and supports innovative software that protects data in Oracle Standard Edition databases. The solution Dbvisit Standby provides full Disaster Recovery capability for companies running Oracle Standard Edition databases, ensuring they can protect and access their critical data after unexpected outages, whether located in the cloud, hybrid or on-premises. Dbvisit uses Amazon CloudWatch, AWS CloudFormation, and AWS Service Catalog together to quickly provision and manage multiple AWS environments in order to test their product.

“Our product can be tested quickly with the correct environments, but creating and starting these environments can be time consuming. And catering for changes over time can also be challenging. Therefore, our goal has been to move towards an automated process of provisioning an AWS environment and deploying software on it, using infrastructure as a code. We implemented CloudFormation and Service Catalog so that the DevOps team can automate the creation of internal AWS environments for development and testing environments. We then use CloudWatch to get a better overview of what is happening in our configurations, which is of great importance. These services have helped us find a way to innovate faster while maintaining control over our AWS infrastructure.”

Anton Els, Chief Technology Officer, Dbvisit

Petco is a leading pet specialty retailer with more than 50 years of service to pet parents. The company operates petco.com and more than 1,500 Petco and Unleashed by Petco locations across the U.S., Mexico, and Puerto Rico. By using AWS X-Ray, Petco gained observability into application issues and improved application performance in a cost-effective manner.

“Our goal was to diagnose application performance issues in order to reduce our mean time to detect (MTTD) and mean time to resolution (MTTR). In addition to being cost-effective, X-Ray provides insight into unique AWS metrics such as throttles, concurrent executions, response code percentages, and gateway timeouts that provide quick and meaningful visibility into overall application health, as well as the ability to dive into problem zones. X-Ray has been instrumental in drastically reducing our MTTD and MTTR, advancing our business, and improving application performance in a cost-effective way.”

Brendten Eickstaedt, Petco VP of IT Innovation and Delivery

Netflix is one of the world's largest online media streaming providers, delivering videos to millions of customers globally. With hundreds of AWS accounts and resources distributed across multiple regions, Netflix needed a way to assess and evaluate the configurations of their AWS infrastructure. The company adopted AWS Config so that they can increase their visibility into their AWS resources to ensure that their inventory is timely and up to date.

“We need an infrastructure-wide inventory of our AWS resources to answer questions like ‘which resources do we have deployed?’, ‘where are they deployed?’, ‘how are they configured?’, ‘which changes were made?’, ‘when did the change occur?’, and ‘who made the change?’. Before AWS Config, we needed to manually develop tooling to collect the proper inventory of our AWS resources with change history. Now, using Config, we can meet our security requirements and eliminate the need to maintain our own tooling for this purpose. AWS is also committed to onboarding new and existing resource types to enable full resource visibility. As a result, we are certain that our asset inventory can scale to our existing and future infrastructure.”

Mike Grima, Cloud Infrastructure Security - Netflix

GE Appliances

GE Appliances, acquired by Haier in 2016, has been a leader in designing, building, and servicing appliances for 125 years. GE Appliances has been steadily building out their use of AWS Management Tools since the company adopted a ‘cloud first’ policy in 2016 for any new deployments. AWS CloudTrail helped GE Appliances gain visibility into API and non-API actions across AWS accounts, simplifying compliance and risk auditing and enabling automated monitoring and alerting. AWS Config added the ability to centrally define resource configurations and other company-defined best practices, with alerts generated when these are violated. GE Appliances also uses AWS Systems Manager to manage about 700 on-premises and Amazon EC2 instances. AWS Management Tools have given GE Appliances total visibility into their hybrid-cloud environment, and they allow GE Appliances to heighten their security by automatically enforcing rules and guardrails.

“Before we had access to AWS tools, we had to do lots of configuration and process logging and then absorb everything into a centralized platform to understand security events after the fact. By using AWS Systems Manager and the other AWS tools, we’ve gone from zero to 100 percent real-time visibility, a night-and-day contrast with our prior security posture.”

Rafael Garrido, DevSecOps leader - GE Appliances

Verisk Analytics

Verisk Analytics is a data-analytics provider that offers predictive analytics and decision-support solutions. Verisk Analytics uses AWS CloudFormation, AWS CloudTrail, and AWS OpsWorks for Chef Automate (each a service within AWS Management Tools), to automate and scale its operations. AWS CloudFormation is the core of Verisk’s automation framework. Verisk separates the foundational network infrastructure code from the application components, but built an abstraction layer that provides a convenient way for application owners to reference the underlying infrastructure. AWS OpsWorks for Chef Automate is a key part of automating stack deployments, and AWS CloudTrail is used to audit and troubleshoot in the company’s complex environment. AWS Management Tools enable Verisk’s small centralized team to automate more than 20 globally distributed businesses at scale.

“We wanted to ruthlessly automate everything. Since starting to use these tools, we are up to 64 accounts, 300 VPCs, and 20 Chef instances. We're able to move at a much faster pace than if all the businesses were rolling their own solutions into AWS.”

Eric Schneider, CTO - Verisk Analytics

CSS Corp is a global professional services company providing IT and technology support services driven by automation and analytics for enterprises. CSS Corp uses AWS Management Tools to meet their compliance requirements and facilitate their disaster recovery processes. With AWS Config, CSS is able to quickly detect changes in their AWS infrastructure and cross-reference these changes against AWS CloudTrail logs for security and risk auditing. The inventory of AWS resources recorded by Config allows them to identify important infrastructure components and maintain critical service maps. CSS also leverages AWS CloudFormation to rapidly provision resources in multiple AWS regions for their disaster recovery processes.

“Prior to using AWS Management Tools our compliance and disaster recovery processes required significant human effort. With Config, CloudTrail, and CloudFormation we were able to automate many of our processes and easily achieve our recovery and compliance audit requirements.”

Troy Lewis, IT Manager - CSS

Neurotech is a Brazilian company that develops data intelligence solutions regarding loans, risk, and fraud. Headquartered in Sao Paulo, the company has customers across various industries, including banks, major retailers, insurance companies, and educational institutions. Always investing in its customers, Neurotech uses AWS to create new products quickly, safely, and inexpensively.

“AWS Management and Governance tools are at the core of our security framework. With AWS Systems Manager, we have been able to improve visibility into the inventory of our AWS environment. Now, we know exactly which AWS resources are being consumed by the development and application teams across our organization. We also use Systems Manager to automate our patch deployment process, which has dramatically reduced the time that administrators spend on software updates. With Systems Manager, our teams and our customers can gain peace of mind.”

Marcelo Bronzatti, Head of Infrastructure, Security, & Deployment - Neurotech

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