Information Systems for Business

CODE: IMM-205

Section A

1. Amazon's Use of MIS to Streamline Management

Activities:

Amazon has strategically leveraged Management Information

Systems (MIS) as a dynamic tool to enhance and streamline
its management activities. The integration of MIS is evident
throughout Amazon's value chain, contributing to its
competitive advantage. The MIS at Amazon plays a vital role
in the entire process, from the initiation of end-users on the
website to the selection of payment and delivery modes.

One notable aspect is the alignment of information systems

with the overall strategic goals of the organization. MIS
facilitates decision-making at both strategic and operational
levels, allowing Amazon to fine-tune its E-commerce strategy.
The company has effectively utilized MIS in maintaining a
unique and separate system for website operations and order
systems, showcasing its commitment to efficiency and
customer satisfaction. The successful implementation of MIS
is reflected in Amazon's global development, emphasizing the
crucial role technology, processes, and systems play in the
company's success (Weber, 2010).

Additionally, MIS has been instrumental in integrating data

throughout the organization, particularly through Enterprise
Resource Planning (ERP) systems. The ability to collect and
integrate internal and external information has strengthened
Amazon's foundation for meeting stakeholder expectations
and optimizing organizational processes. The use of various
software, including ERP systems and software configuration
management tools, attests to Amazon's commitment to staying
abreast of technological advancements in the E-commerce
industry.

Furthermore, Customer Relationship Management (CRM) has

become a focal point for Amazon, streamlining information
towards marketing, technical assistance, and customer service.
The success of CRM implementation is evident in the
effectiveness and efficiency of the organization in utilizing
customer interaction data to maximize benefits.

2. Business and Technical Challenges Faced by Amazon

in MIS Implementation:

Amazon, like any other organization, faced a set of business

and technical challenges during the implementation of its
Management Information Systems (MIS).

o Security Concerns: Given the nature of E-

commerce, Amazon had to address significant
security challenges, particularly concerning the
storage and protection of sensitive customer
information, such as credit card details. The threat
of storing and securing information from thousands
 of daily transactions required robust security
measures, such as the utilization of Netscape Secure
Commerce Server with secure socket layer
encryption (Jordon, 2008).

o Phishing Issues: Technical challenges included

combating phishing issues that posed a threat to
customer accounts and account information. The
need for robust anti-phishing interventions was
crucial to maintain customer trust and protect their
account information (Allen, 2009).

o Technology Integration: Implementing and

integrating various technologies, including Linux,
web services, middleware, groupware, and
networking, presented technical challenges.
Ensuring seamless integration between different
elements of the MIS architecture required careful
planning and execution (Bajaj, 2011).

o Scalability and Performance: With millions of

operations and a vast volume of seller queries,
Amazon needed to ensure that its IT infrastructure
could handle the scale and performance demands.
Scalability challenges were addressed through
technologies like Elastic Cloud Computing (EC2)
(Janice, 2011).

o Customer Interaction and Satisfaction: Balancing

the transition from a single-level sales strategy to a
multi-level E-commerce strategy required
addressing challenges related to customer
interaction and satisfaction. The exclusion of
 retailers and prioritizing customer reviews
necessitated a careful realignment of the business
model (Jordon, 2008).

3. Features Focused on for Developing MIS:

Amazon's Management Information Systems (MIS)

development focused on several key features across its value
chain activities.

o Elastic Cloud Computing (EC2): Amazon utilized

EC2 as a vibrant web service, offering complete
control over computing actions to end-users. EC2's
pay-as-you-go model and the ability to customize
applications contributed to efficiency and cost-
effectiveness (Janice, 2011).

o Amazon Machine Image (AMI): The creation of

AMIs by end-users to utilize EC2 services
showcased the flexibility and customization options
within the MIS. This feature allowed users to pay
only for actual usage and isolate common failure
scenarios (Janice, 2011).

o Search Agent and Data Mining: The use of a

search agent and data mining techniques in the
browsing and product selection stages demonstrated
Amazon's emphasis on providing personalized and
 relevant results to customers. The retrieval of
information from a central database facilitated
efficient product recommendations (Janice, 2011).

o Infomediary Model: The implementation of the

Infomediary model involved collecting consumer
purchase and personal information for analysis and
initiation of marketing campaigns. This model
played a crucial role in offering recommendations
based on customer preferences and areas of interest
(Allen, 2009).

o Customer Relationship Management (CRM):

Integration of CRM modules under Enterprise
Resource Management (ERP) allowed Amazon to
store personalized information and purchasing
trends. This integration extended to marketing and
advertising campaigns, enhancing the overall
customer experience (Jordon, 2008).

o Virtual Storefronts and Auction Brokers: The use

of virtual storefronts and auction brokers reflected
Amazon's commitment to enhancing customer
retention and engagement. These interfaces
provided a platform for business-to-business and
consumer-to-consumer transactions (Kalb, 2009).
 4. Recommendations for Enhancing Amazon's Existing
MIS Systems:

Amazon can further enhance its Management Information

Systems (MIS) for continued success and growth.

o Enhance Sorting and Anti-Phishing Measures:

Amazon should offer customers more options for
sorting products based on recent products, reviews,
and rankings. Additionally, the company should
implement more robust anti-phishing interventions
to address security concerns and promote awareness
among customers (Allen, 2009).

o Integration with Social Networking: To capitalize

on the growing presence of customers in social
spaces, Amazon should integrate its entire platform
with social networking websites. This integration
can provide a more personalized and interactive
shopping experience, promoting products and
services to users' close networks (Anderson, 2011).

o Strengthen Customer Relationship Management

(CRM): Amazon should focus on expanding CRM
interventions across its business operations. This
involves allocating more resources to customer
relationship marketing, analyzing customer
purchasing trends for market expansion, and
offering customized language preferences to diverse
user backgrounds (Bryce, 2009).
 o Implement Artificial Intelligence (AI) Systems:
Amazon can benefit from implementing AI systems
and intelligent virtual agents to enhance customer
interactions. These systems can provide human-like
personalized interactions, improve response times,
and reduce reliance on traditional customer service
centers, leading to cost savings (Shanahan, 2011).

o Customize Marketing Campaigns: To further

tailor its marketing campaigns, Amazon should use
data to offer newsletters customized to specific
customer communities. This personalized approach
can strengthen customer loyalty and increase the
effectiveness of marketing strategies (Jenkins,
2011).

o Resolve Marketing and Sales Gap: Amazon

should focus on resolving the existing gap between
marketing and sales activities by standardizing MIS
systems. This involves integrating knowledge
management with existing information systems to
streamline processes and improve offline customer
service (Klaus, 2010).

In conclusion, Amazon's MIS has been instrumental in its

success, but continuous improvement and adaptation to
technological advancements are necessary for sustained
growth in the dynamic E-commerce industry. The
recommendations provided aim to address current challenges
and further optimize Amazon's MIS for enhanced customer
satisfaction and market expansion.
Section B

ANSWER – 1

I can certainly describe the structure of an Entity Relationship

Diagram (ERD) based on the information you provided.
However, please note that creating a visual diagram is better
done with specialized tools.

In your UPS system, you have several entities:

1. Shipped Item Entity:

o Attributes: itemNumber (unique), weight,

dimensions, insuranceAmount, destination,

finalDeliveryDate.

2. Retail Centre Entity:

o Attributes: uniqueID, type, address.

3. Transportation Event Entity:

o Attributes: scheduleNumber (unique), type (e.g.,

flight, truck), deliveryRoute.

Now, let's establish the relationships between these entities:

 Shipped Item is associated with Retail Centre through a

relationship called "Received into."
o This is because items are received into the UPS

system at a single retail centre.

  Shipped Item is associated with Transportation Event
through a relationship called "Transported via."
o This is because shipped items make their way to

their destination via one or more standard UPS

transportation events.

Now, the diagram would look something like this:

Shipped Item
itemNumber (PK) Retail Centre
weight uniqueID (PK)
dimensions type
insuranceAmount address
destination
finalDeliveryDate

Transportation Event
scheduleNumber (PK)
type
deliveryRoute

In this representation:
 "PK" denotes a primary key.

 The lines connecting the entities represent relationships.

 The crow's feet on the lines indicate the "one-to-many"

relationship direction.
ANSWER – 2

SDLC stands for Software Development Life Cycle. It is a

systematic process used by software developers to design,
develop, test, and deploy software applications. SDLC
provides a structured framework for creating high-quality
software that meets the needs and expectations of
stakeholders. The approach typically consists of several
phases and activities, each of which plays a crucial role in the
software development process. Here's an explanation of the
SDLC approach:

1. Planning: This initial phase involves defining the scope

of the project, setting objectives, and understanding the
requirements of the software. Project managers and
stakeholders work together to create a detailed project
plan, outlining the budget, timeline, and available
resources.

2. Analysis: During this phase, the development team

conducts a comprehensive analysis of the requirements.
They gather and document the functional and non-
functional requirements, which serve as the basis for the
software's design and development.

3. Design: In the design phase, the system architecture is

developed, including the software's structure, data flow,
and user interface. This phase aims to create a blueprint
for the software's construction, ensuring that it meets the
specified requirements and objectives.

4. Implementation (Coding): This is the stage where the

actual coding and development of the software take
 place. Developers write the code based on the design
specifications, using programming languages and tools.
It's essential to follow coding standards and best
practices to ensure the software's quality.

5. Testing: Quality assurance is a critical aspect of SDLC.

In the testing phase, the software is rigorously tested to
identify and fix defects, errors, and issues. Various
testing methods, such as unit testing, integration testing,
system testing, and user acceptance testing, are
performed to ensure the software functions correctly and
meets user expectations.

6. Deployment: Once the software is thoroughly tested and

validated, it is ready for deployment. This phase involves
releasing the software to end-users, whether it's within an
organization or for public use. Deployment may require
data migration, user training, and ongoing support.

7. Maintenance and Support: The final phase involves

ongoing maintenance and support for the software. This
includes addressing bug fixes, adding new features, and
ensuring the software remains compatible with evolving
technologies and requirements. Regular updates and
improvements are made to keep the software relevant
and functional.

SDLC is not a linear process, and it can be adapted to various

methodologies, such as Waterfall, Agile, or DevOps,
depending on the project's needs and constraints. Each
approach has its unique set of principles and practices, but
they all share the fundamental goal of delivering high-quality
software that satisfies user needs and business objectives.
ANSWER – 3

a. Practical Implementation of Customer Relationship

Management (CRM) System:
Customer Relationship Management (CRM) systems are
essential tools for businesses to manage and enhance their
interactions with customers. Implementing a CRM system
involves several key steps:

1. Needs Assessment: Begin by identifying your specific

business needs and objectives for implementing a CRM
system. Determine the goals you want to achieve,
whether it's improving customer service, increasing sales,
or streamlining communication.

2. Select the Right CRM Software: Choose a CRM

software that aligns with your business requirements.
Consider factors such as scalability, customization
options, integration capabilities, and budget.

3. Data Gathering and Integration: Collect and

consolidate customer data from various sources, such as
sales, marketing, and customer support. Integrate this
data into the CRM system to create a unified customer
database.

4. User Training: Train your employees on how to use the

CRM system effectively. Ensure they understand its
features and benefits to maximize its potential.

5. Customization and Workflow Design: Tailor the CRM

system to your specific business processes and
 requirements. Create workflows that reflect your
customer interaction and sales processes.

6. Data Migration: If you are transitioning from an

existing system or manual processes, ensure a smooth
data migration to the CRM system, so no critical
information is lost.

7. Testing and Quality Assurance: Conduct thorough

testing to identify and rectify any issues or bugs in the
system before it goes live. This ensures a smooth user
experience.

8. Rollout and Adoption: Gradually introduce the CRM

system to your team, encouraging its adoption and usage.
Provide ongoing support to address any questions or
concerns.

9. Monitor and Measure: Continuously monitor the

performance of the CRM system and measure its impact
on your business goals. Make adjustments as needed to
optimize its effectiveness.

10. Customer Engagement: Use the CRM system to

actively engage with customers, track their interactions, and
provide personalized experiences. This will help in building
and maintaining strong customer relationships.
b. Practical Implementation of Supply Chain Management
(SCM) System:
Supply Chain Management (SCM) systems play a crucial role
in optimizing the flow of goods and information across a
company's supply chain. Here's how to practically implement
an SCM system:

1. Assess Your Supply Chain: Start by evaluating your

current supply chain processes, identifying pain points,
and setting clear objectives for improvement, such as
reducing lead times, managing inventory efficiently, and
enhancing supplier collaboration.

2. Software Selection: Choose an SCM software that

aligns with your supply chain needs. Consider factors
like scalability, compatibility with your existing systems,
and the ability to integrate with suppliers and logistics
partners.

3. Data Integration: Integrate data from various sources,

including suppliers, manufacturers, distributors, and
retailers, into the SCM system. This ensures real-time
visibility and collaboration across the entire supply
chain.

4. Employee Training: Provide training to your supply

chain team on using the SCM software effectively.
Ensure that they understand how to navigate the system
and leverage its features to optimize processes.

5. Process Mapping and Redesign: Map out your existing

supply chain processes and redesign them to align with
the capabilities of the SCM system. This may involve
 streamlining workflows, automating tasks, and
improving decision-making.

6. Supplier Integration: Collaborate with suppliers to

ensure they are also using the system or integrating their
own systems with yours. This enhances communication
and coordination, reducing lead times and inventory
holding costs.

7. Testing and Simulation: Before fully implementing the

SCM system, conduct thorough testing and simulations
to identify any issues or bottlenecks. Make necessary
adjustments to ensure the system works smoothly.

8. Rollout and Adoption: Gradually introduce the SCM

system across your supply chain. Encourage all
stakeholders to adopt the system, emphasizing its
benefits in terms of efficiency, cost savings, and
visibility.

9. Performance Monitoring: Continuously monitor key

performance indicators (KPIs) related to your supply
chain, such as on-time delivery, inventory turnover, and
order fulfilment. Use the SCM system to generate reports
and analytics for better decision-making.

10. Continuous Improvement: Regularly assess the

performance of the SCM system and look for opportunities to
make further improvements. Adapt to changing market
conditions, technological advancements, and customer
demands to keep your supply chain agile and efficient.
Effective implementation of both CRM and SCM systems can
significantly enhance a company's ability to serve its
customers and manage its supply chain more efficiently.
These systems should be viewed as ongoing initiatives, with a
focus on continuous improvement to stay competitive in the
market.

THANK YOU

ABHISHEK SINGH
VAAYU
021-111-302.