Comprehensive project plan- Amazon Information systems
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Executive Summary
With a 38.7% market share of retail e-commerce sales in 2020, Amazon will be the
largest e-commerce platform in the world. Due to the Covid-19 epidemic, the organization's sales
have significantly increased, reaching $280.5 billion in 2019—a 20% rise over 2018. Everyone
can conduct business on Amazon because of its business model, and third-party sellers account
for most of the site's sales. Small and medium-sized enterprises are thriving thanks to their
creative approaches. Amazon is managed by Fulfillment, which has a variety of enterprises,
including corporations, partnerships, limited liability companies (LLCs), and sole
proprietorships. With a large and global demographic segmentation, Amazon targets customers
worldwide.
This project aims to build Amazon.com, a global central information system allowing it
to expand and diversify in new markets. The suggested approach will help Amazon acquire a
competitive edge by storing data and information from various markets. The enhanced
information system will aid in cost savings, a smooth transition to new markets, and a reduction
in project failure.
Business Objectives
The e-commerce business wants to enhance customer satisfaction, cut expenses, and
boost overall effectiveness by improving its inventory management system. The company’s main
objective is to boost income by streamlining and improving the inventory management
procedure. E-commerce services are in high demand, according to a market survey, and this
trend is anticipated to last. Because of the fierce rivalry in the industry, the business must use
creative strategies to stay on top (Correa, Van der Hoff & Rajão,2019). The inventory
management system must meet technical specifications, including solid hardware and software
architecture, a secure network, and an intuitive user interface. It should be possible for the
system to handle large amounts of data and transactions.
Comprehensive project plan- Amazon Information systems
Amazon, a leading worldwide e-commerce platform, has completely transformed how
people conduct business and shop. The company has been a pioneer in the e-commerce industry
and is well renowned for its ability to sell goods online through its store. The detailed project
plan below highlights Amazon's business model, target market, demographics, and operational
strategy. The program aims to convince investors to adopt the suggested course of action and
ensure that the chosen data is presented logically and persuasively as it moves from part to
section. The initiative aims to establish a global central information system to facilitate growth
and diversification into new markets. Data and information on customers, inventory, suppliers,
and staff will be stored in the upgraded information system, giving the business an advantage
over rivals by better enabling it to comprehend clients worldwide.
Functional and non-functional requirements of the system
Implementing specific applications, sites, process re-engineering, modification,
interfaces, conversion, testing, funding, training, and education are part of the project's functional
business needs and scope control. To develop a better information system, the project team will
assess the current sites and identify areas for improvement (Fisher et al.,2020). They will also
involve technicians in process re-engineering, create a marketing strategy for the reward system
to attract more customers, and integrate the interfaces with the current information system. The
team will also include Amazon employees to aid in their understanding of the new system. They
will have timely access to the data for enhanced analysis and decision-making.
To guarantee the project's success, adhering to the non-functional business requirements
relating to governance, risk, and compliance is crucial. Regarding power, the project team will
ensure that the information system is consistent with regional particulars, such as the law,
culture, and currencies utilized in the implementation's local context (Fisher et al.,2020). In
addition, Amazon.com will follow international laws and regulations, establish and enforce data
protection policies, uphold users’ rights of the new information system, and improve security
protocols to guard against cyber-attacks.
By identifying the areas that could fail and creating procedures for risk mitigation, the
team will reduce the risks of project failure about risk. The project will also need enough
resources to ensure that Amazon.com succeeds in international markets, invest the necessary
funds, and integrate the existing information system with the new features of the planned
information system (Cortner et al.,2019). Lastly, Amazon.com must adhere to all applicable
rules, laws, policies, and regulations in international markets as part of the non-functional
business needs connected to compliance. The information system and the company will comply
with all applicable laws and regulations, and the corporation will establish a compliance
department to oversee that compliance regularly.
Product or service
Every business owner is qualified to start selling on Amazon because of the distinctive
way Amazon runs its many enterprises. Third-party sellers generate the majority of Amazon
sales. In 2018, small business owners selling their goods on Amazon accounted for 58% of all
retail transactions. Fulfillment oversees Amazon's laws and regulations for conducting business
on its platform (Markova et al.,2019). All merchants can use the podium thanks to Amazon
(FBA), which allows.
To ensure that customer goods are delivered according to the allotted time frame without
sacrificing the quality of the product, FBA is essential. Being a flexible platform, it has a variety
of companies that fall under the following categories: corporations, limited liability companies
(LLCs), partnerships, and sole proprietorships (Markova et al.,2019). sole proprietorship implies
that the owner is the only one selling the company's goods on Amazon. The only requirements
are that a business is named, has an operating license, and pays taxes on time.
Customers
With a large and global demographic segmentation, Amazon targets customers
worldwide. Over 80% of customers said fast and free shipping is why they prefer buying things
from Amazon. According to analysis, adults between the ages of 18 and 60 make up Amazon's
age demographics, with the majority falling between the ages of 34 and 49. Since it serves
singles, young and old couples, families with children, and even retirees, e-commerce has no
particular preference for gender (Cortner et al.,2019). The demographics of Amazon customers
are changing, especially in the United States, where most of them are located.
Demographic Data
Almost 60% of the online traffic to Amazon's applications and websites comes from the
USA, even though it is a worldwide e-commerce platform serving over 100 nations. Its market
segmentation and marketing plans focus on opportunistic and frequent platform users. By
exceeding all of Amazon's rivals by a more significant margin, Amazon's retail e-commerce
sales shares for 2020 reached the most significant levels ever observed, totaling 38.7%. The
leader in e-commerce in the US at the moment is Amazon, which is now at the top of the list.
Hardware and software components of the system
To support the company's e-commerce operations, Amazon's information systems
infrastructure comprises various technologies, including servers, databases, network hardware,
and software applications. A massive network of servers and data centers equipped with highperformance multi-core processors, lots of RAM, and storage make up the hardware that makes
up Amazon's infrastructure (van der Aalst, Hinz & Weinhardt,2019). The architecture uses load
balancers, cache servers, backup servers, and disaster recovery systems to manage the heavy
traffic volume and provide high availability. Furthermore, it largely depends on a robust and
dependable network infrastructure that combines wired and wireless networks and a range of
networking hardware like routers, switches, and firewalls.
Infrastructure Hardware Components of Amazon
An extensive network of servers and data centers forms the foundation of Amazon's
information systems infrastructure. These servers contain high-performance multi-core
processors, lots of RAM, and storage to manage the heavy traffic flow and guarantee high
availability. Load balancers and cache servers are also deployed to maintain a high availability
and control traffic volume (van der Aalst, Hinz & Weinhardt,2019). Amazon's network combines
wired and wireless networks with various routers, switches, and firewalls to safeguard data flow
between the infrastructure's numerous components.
Cloud computing services like Amazon Web Services (AWS) offer scalability and
flexibility. Thanks to AWS, Amazon can store and process data in many locations worldwide,
leading to quicker client access times (van der Aalst, Hinz & Weinhardt,2019). To store and
handle data, Amazon's information systems infrastructure also contains several databases,
including relational databases like MySQL and NoSQL databases like MongoDB and Cassandra.
Amazon's infrastructure's software components
Amazon's information systems architecture heavily relies on various software programs
to support its operations. E-commerce platforms like Magento and Shopify are among them, as
well as solutions for workflow automation and management, customer relationship management
systems, enterprise resource planning systems, analytics, and business intelligence (Zeng et
al.,2020). Recommendation engines, chatbots, and natural language processing (NLP) systems,
which automate a variety of tasks, such as pricing optimization, inventory management, and
fraud detection, are just a few examples of the artificial intelligence and machine learning
technologies used to give customers a personalized and seamless shopping experience.
Viewpoint on Size, Scale, Type, and Interoperability Standards
High scalability, flexibility, and availability levels are needed for Amazon's e-commerce
business; these qualities are given via a combination of proprietary and open-source solutions. A
distributed design with a sizable number of servers for database storage, numerous proxy servers
for load balancing, and a range of network devices to handle traffic volume and enhance
performance are all included in Amazon's infrastructure (Zeng et al.,2020). Amazon's
infrastructure implements industry-standard protocols and technologies to guarantee system
compatibility and smooth communication between its many parts.
The importance of Amazon's information systems infrastructure
The backbone of Amazon's information systems is essential to the company's ability to
offer customers a stable and compelling shopping experience. It ensures that the company's web
platform runs without a hitch, manages the massive amount of daily data and transactions, and
offers scalability, flexibility, and high availability to satisfy the expectations of the continually
expanding customer base of the company (Sharma, Nigam & Sharma,2020). Amazon's
information systems infrastructure also enables the company to store and process data in various
locations worldwide, resulting in quicker customer access times. It aids in automating numerous
processes, including fraud detection, inventory management, and pricing optimization.
System Implementation Plan document
Essential elements of the infrastructure
An e-commerce company's information systems and success depend on where specific
infrastructural components are located. Two basic types of connectivity must be considered:
internal connectivity, which refers to connections within the company's network, and external
connectivity, which refers to links to the Internet. A crucial element, the Firewall, is a barrier
between the internal network and the Internet, guarding it against external threats like viruses
and hacking attempts (Sharma, Nigam & Sharma,2020). To ensure that all incoming and
outgoing traffic is monitored and managed, the Firewall should be situated in a strategic area
adjacent to the Internet connection. Another essential element is the Local Area Network (LAN),
which connects the company's PCs, servers, and other networking hardware to the internal
network.
Technique and Procedure
Some phases involve the technique and process for designing, providing, and installing
the inventory management system. These procedures include performing a thorough analysis of
the business's needs, consulting with vendors and service providers, developing a thorough
implementation plan, obtaining and testing the hardware, software, and networking components,
installing and configuring the components, and creating a maintenance strategy to guarantee
ongoing support and maintenance.
Engineering:
Engineering is the stage where the systems and tools needed to build the e-commerce
platform are designed and developed (Tamarin et al.,2019)/ The best hardware and software are
chosen when the system’s requirements are determined. A diagram indicates the location of
switches, routers, firewalls, and other network equipment, and the network is made trustworthy
and secure.
Furnishing:
The systems and equipment required for the e-commerce platform are bought and
delivered to the site during the furnishing stage. The procurement process is carefully regulated
to guarantee that the right things are ordered, received, and stored correctly. The equipment is
tested to ensure it is in good working order and complies with the requirements.
Installation:
The engineering and installation teams must carefully coordinate during the installation
phase to guarantee that all equipment is installed according to specifications. The installation
team must be conversant with the network diagram and the technical requirements for the
equipment (Tamarin et al.,2019). Inspecting and verifying the networking, hardware, and
software components before purchase are essential to ensure they meet the procurement
contract's requirements.
Deployment:
The e-commerce platform is set up and made accessible to users during deployment. To
guarantee that the deployment is adequate and that the system is accessible to users when
needed, this stage calls for meticulous preparation and coordination (Tamarin et al.,2019).
Installing physical hardware elements like servers, storage arrays, switches, and firewalls and
setting up software elements like databases, web servers, and e-commerce platforms may be
necessary.
Conclusion
In conclusion, the project aims to create a global central information system that will
assist Amazon in enhancing its inventory management system, lowering costs, and increasing
overall effectiveness. The suggested method will save data and information from different
markets, providing the company an edge over rivals by better enabling it to understand
customers worldwide. To attract more customers, the project will establish a marketing plan for
the reward system, identify areas for improvement, involve technicians in process reengineering, and integrate interfaces with the existing information system. In summary, the
proposed project will aid Amazon in expanding into other markets, spending the required capital,
and following all relevant rules, laws, policies, and regulations.
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