Assignment – Management Information System Benefit of MIS on Amazon

Benefit of Management Information System on

Amazon: a Study Case Analysis on Advantages
that Management Information System Brought
(1) Jason Dwi Rendrahadi Putra Astono
1
Faculty of Social and Political Sciences, Universitas Diponegoro, Semarang, Indonesia
Student Number
1
14030121190053

Abstract

The influence of Management Information Systems (MIS) on Amazon's operational supremacy has been profound,
facilitating unparalleled efficiency, decision-making, and customer service advancements. In this essay, we scrutinize Amazon's
deployment of MIS and its consequential benefits that have solidified the corporation's status as an e-commerce powerhouse
and cloud computing juggernaut. We discuss how MIS propels Amazon's process automation, bolstering order processing and
inventory handling capabilities. Furthermore, we examine the company's data-driven strategies that allow for real-time
customer behavior analytics, enabling tailored product offerings and promotions. We acknowledge challenges inherent to MIS,
including data quality and the necessary investment in skilled personnel and technology. Despite such challenges, our findings
illustrate that Amazon has optimized the benefits of MIS to foster enhanced effectiveness and efficiency, reduce operational
costs, and boost profitability, underscoring the system's integral role in Amazon's continuing success and industry innovation.

Keywords: Management Information Systems, Efficiency, Decision-Making, Customer Service, and E-Commerce,

impacts of MIS on Amazon's ability to adapt, grow, and

Introduction
In the age of digital transformation and e-commerce
ascendancy, Amazon stands as a colossus, weaving together
vast networks of suppliers, customers, and innovative
technologies to maintain its position at the forefront of the
global market. Central to Amazon's relentless progress and
adaptive strategies is the beating heart of its operation:
Management Information Systems (MIS). These sophisticated
systems serve as the nerve center, orchestrating the flow of
information across the company's extensive landscape, driving
decision-making, enhancing operational efficiencies, and
fueling customer-focused innovations.
This essay aims to dissect the critical role that MIS
plays in Amazon's ecosystem, examining how the integration
of robust information processing tools and real-time data
analytics underpins every aspect of the company's operations.
From improving supply chain logistics to personalizing
customer experiences, we will explore the multifaceted
redefine the standards of e-commerce on a global scale. As we
delve into this analysis, we unravel the symbiotic relationship
between sophisticated information management and corporate
success, illuminating how Amazon's mastery of information
systems has not only accelerated its own trajectory but also
reshaped the competitive landscape of the digital economy.
By charting the evolution of MIS within Amazon and
its resultant effects on internal processes, market positioning,
and consumer engagement, this essay will present a
comprehensive overview of the transformative power of data
and technology when managed with acuity and vision. As we
proceed, we will uncover the lessons that can be learned from
Amazon's utilizes of MIS, shedding light on the ways in which
effective management of information resources can catalyze a
company's journey from market participant to industry titan.
The Advantages of Implementing Management
Information System

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Assignment – Management Information System
The Management Information System (MIS) is a
vital tool for organizations to collect, process, and manage
data to support decision-making processes. In the case of
Amazon, MIS has been a key factor in the company's success
as a leading online retailer and cloud computing services
provider. This report will discuss the benefits of using MIS in
the case of Amazon, including increased efficiency, improved
decision-making, and enhanced customer service (Demir,
2017).
One of the primary benefits of using MIS in the case
of Amazon is increased efficiency. MIS enables Amazon to
automate many of its processes, reducing the need for manual
intervention and streamlining operations (Demir, 2017). For
example, Amazon's IT infrastructure has been built in such a
way that it can handle more than millions of operations and
also handles queries and issues of more than half of the
volume of sellers. This automation has allowed Amazon to
process orders more quickly and accurately, reducing the time
it takes to get products to customers. Additionally, MIS has
enabled Amazon to optimize its supply chain management,
ensuring that products are delivered to customers in the most
efficient way possible.
Another benefit of using MIS in the case of Amazon
is improved decision-making. MIS provides Amazon with
real-time data on customer behavior, sales trends, and
inventory levels, allowing the company to make informed
decisions about pricing, promotions, and product offerings.
For example, Amazon uses data analytics to analyze customer
behavior and preferences, allowing the company to
personalize recommendations and promotions for individual
customers. This data-driven approach has enabled Amazon to
stay ahead of its competitors by anticipating customer needs
and preferences.
MIS has also enabled Amazon to enhance its
customer service. By collecting and analyzing data on
customer behavior and preferences, Amazon can provide
personalized recommendations and promotions to individual
customers. Additionally, MIS has enabled Amazon to improve
its order fulfillment process, ensuring that products are
delivered to customers quickly and accurately. For example,
Amazon uses a sophisticated logistics network to ensure that
products are delivered to customers in the most efficient way
possible (Demir, 2017). This has helped Amazon to build a
reputation for fast and reliable delivery, which has been a key
factor in the company's success.
In addition to these benefits, MIS has also enabled
Amazon to reduce costs and increase profitability. By
automating many of its processes and optimizing its supply
chain management, Amazon has been able to reduce its
operating costs and increase its profit margins. Additionally,
Management Infromation System
Benefit of MIS on Amazon
MIS has enabled Amazon to identify areas where it can reduce
costs and improve efficiency, such as by optimizing its
warehouse operations and reducing inventory levels.
Management Information System has been a vital
tool for Amazon in achieving its success as a leading online
retailer and cloud computing services provider. MIS has
enabled Amazon to increase efficiency, improve decision-
making, enhance customer service, reduce costs, and increase
profitability. By collecting and analyzing data on customer
behavior and preferences, Amazon has been able to stay ahead
of its competitors by anticipating customer needs and
preferences. Additionally, MIS has enabled Amazon to
optimize its supply chain management, ensuring that products
are delivered to customers in the most efficient way possible
(Demir, 2017). Overall, MIS has been a key factor in
Amazon's success and will continue to be a vital tool for the
company in the future.
Effectiveness and Efficiency from Amazon through
Implementation of Management Information System
MIS has enabled Amazon to increase efficiency,
improve decision-making, enhance customer service, reduce
costs, and increase profitability. However, the question
remains whether Amazon has reached its optimal
effectiveness and efficiency rate through MIS. This report will
discuss the extent to which Amazon has reached its optimal
effectiveness and efficiency rate through MIS, including the
challenges and limitations of using MIS.
One of the primary benefits of using MIS in the case
of Amazon is increased efficiency. MIS enables Amazon to
automate many of its processes, reducing the need for manual
intervention and streamlining operations. For example,
Amazon's IT infrastructure has been built in such a way that it
can handle more than millions of operations and also handles
queries and issues of more than half of the volume of sellers.
This automation has allowed Amazon to process orders more
quickly and accurately, reducing the time it takes to get
products to customers. Additionally, MIS has enabled
Amazon to optimize its supply chain management, ensuring
that products are delivered to customers in the most efficient
way possible.
However, there are limitations to the effectiveness
and efficiency of MIS. One of the challenges of using MIS is
the quality of data. MIS relies on accurate and timely data to
make informed decisions. If the data is inaccurate or
incomplete, the decisions made based on that data may be
flawed. Additionally, MIS requires significant investment in
technology and infrastructure, which can be costly (Demir,
2017). Amazon has invested heavily in its IT infrastructure to
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Assignment – Management Information System Benefit of MIS on Amazon

support its MIS, but this investment may not be feasible for all optimal effectiveness and efficiency in the e-commerce
organizations. industry.

Conclusion
Another limitation of using MIS is the need for
In conclusion, while recognizing the inherent limitations that
skilled personnel to manage and analyze the data. MIS
accompany any technological system, it is undeniable that
generates large amounts of data, which must be analyzed and
Management Information Systems (MIS) have significantly
interpreted to make informed decisions. This requires skilled
enhanced Amazon's operational capabilities. The utilization of
personnel who are trained in data analysis and management
MIS has been instrumental in Amazon's achievement of
(Demir, 2017). Amazon has a team of data scientists and
superior efficiency and effectiveness, facilitating
analysts who are responsible for managing and analyzing the
advancements in decision-making processes, customer
data generated by its MIS. However, not all organizations may
service, cost reductions, and profitability enhancements. The
have the resources to hire and train such personnel.
strategic aggregation and analysis of customer behavior and
Despite these limitations, Amazon has been able to preference data have endowed Amazon with a competitive
achieve a high level of effectiveness and efficiency through its edge, enabling the corporation to preemptively cater to market
MIS. For example, Amazon uses data analytics to analyze demands. Moreover, MIS has been a cornerstone in the
customer behavior and preferences, allowing the company to refinement of Amazon's supply chain management, ensuring
personalize recommendations and promotions for individual the swift and efficient delivery of goods to its global customer
customers (Demir, 2017). This data-driven approach has base. Amazon's adept application of MIS underscores the
enabled Amazon to stay ahead of its competitors by immense potential these systems hold in achieving heightened
anticipating customer needs and preferences. Additionally, business performance. Although the pursuit of perfection is a
MIS has enabled Amazon to improve its order fulfillment perpetual journey, Amazon's experience confirms that the
process, ensuring that products are delivered to customers adept application of MIS can be a formidable lever in
quickly and accurately. For example, Amazon uses a propelling a company towards operational excellence.
sophisticated logistics network to ensure that products are
delivered to customers in the most efficient way possible. This
has helped Amazon to build a reputation for fast and reliable
delivery, which has been a key factor in the company's
References
success. [1] Demir, A. (2017). Management Information System: Case
Study of Amazon.Com. Journal of Research in Business and
Furthermore, Amazon has continued to invest in its Management, 1-7.
MIS to improve its effectiveness and efficiency. For example,
Amazon has developed new technologies such as Amazon Go,
a cashierless store that uses advanced sensors and cameras to
track customer behavior and preferences (Demir, 2017). This
technology has enabled Amazon to further personalize the
shopping experience for customers and improve its efficiency
in managing inventory and sales.

While there are limitations to the effectiveness and

efficiency of MIS, Amazon has been able to achieve a high
level of effectiveness and efficiency through its MIS. MIS has
enabled Amazon to increase efficiency, improve decision-
making, enhance customer service, reduce costs, and increase
profitability. By collecting and analyzing data on customer
behavior and preferences, Amazon has been able to stay ahead
of its competitors by anticipating customer needs and
preferences. Additionally, MIS has enabled Amazon to
optimize its supply chain management, ensuring that products
are delivered to customers in the most efficient way possible.
While there is always room for improvement, Amazon has
demonstrated that MIS can be a powerful tool for achieving

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Assignment – Management Information System Benefit of MIS on Amazon

Original Article

Quest Journals
Journal of Research in Business and Management
Volume 4 ~ Issue 11 (2017) pp: 11-17
ISSN(Online) : 2347-3002
www.questjournals.org

Research Paper

Management Information System: Case Study of Amazon.Com

Miss. Ayse Demir (MBA)
University of Wales

Received 29 Dec, 2016; Accepted 13 Jan, 2017© The author(s) 2017. Published with open access at
www.questjournals.org

ABSTRACT: Organizations under E commerce industry seek to attain core competence by creating and
sustaining a unique process to collect personal information about customers and their purchasing trends. The
report critically evaluates the how service based organization -Amazon use Management information systems as
a vibrant tool in attaining competitive advantage through efficient management and acquisition of information.
The study involves assessment of the best MIS practices in place for Amazon throughout its value chain
activities. Uniqueness of MIS is being highlighted in the report through assessment of technology, process and
the systems that Amazon use right from the initiation of the end user with the website till the payment and
delivery mode is being selected. The last part of the report involves discussions on recommendations and
suggestions for Amazon in order to enhance its existing MIS systems in place. The recommendations are based
on the assessment of qualitative information and the extent of feasibility in implementing the proposed
strategies.
Keywords: E commerce, Management Information System, Amazon

I. INTRODUCTION
Organizations under E commerce industry seek to attain core competence by creating and sustaining a
unique process to collect personal information about customers and their purchasing trends. The report
critically evaluates the how service based organization -Amazon use Management information systems as a
vibrant tool in attaining competitive advantage through efficient management and acquisition of information.
The study involves assessment of the best MIS practices in place for Amazon throughout its value chain
activities. Uniqueness of MIS is being highlighted in the report through assessment of technology, process and
the systems that Amazon use right from the initiation of the end user with the website till the payment and
delivery mode is being selected. The last part of the report involves discussions on recommendations and
suggestions for Amazon in order to enhance its existing MIS systems in place. The recommendations are based
on the assessment of qualitative information and the extent of feasibility in implementing the proposed
strategies.
Management information systems aids organization and its system to integrate in an effective and
efficient manner to bring out the synergy between the interactions of the people and information systems. MIS
facilitates management decisions at the strategic and operational levels of an organization. The case of Amazon
reflects the successful alignment of information systems with the overall strategic goals of the organization.
Amazon has been fine tuning its E strategy by means of keeping its website systems unique and separate from
that of its order systems. MIS has played a crucial role in the development of the company on global context
(Weber, 2010). Amazon has used MIS as a vibrant tool to streamlines its management activities and that at the
same time has ensured that the customers are offered with diversified services through its MIS (Cao, 2011).
In the process of collecting and integrating data with appropriate functions of an organization the role
of enterprise resource management systems has been crucial. The uniqueness of ERP systems lies in its ability
to integrate the external and the internal information influencing the management of functions within an
organization. E commerce organizations lay a strong foundation towards integrating the internal and external
process of an organization with that of the expectations of the stakeholders.
Increasing number of software’s used by E commerce organization has been subjected to up gradations
and changes due to the factors influencing the expectation and outcomes of the use of software. Software
configuration management has been considered as an essential tool to control the entire evolution and life cycle
of the software projects (Bajaj, 2011).
Customer relationship management has turned to be the buzz word amongst growing E commerce
organizations. CRM aids the organization in streamlining its information towards marketing, technical
*Corresponding Author: Miss. Ayse Demir1 11 | Page
University of Wales

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