Information Management Proposal of Amazon-Free-Samples for Students

Question: Discuss about the Information Management Proposal of Amazon. Answer: Introduction Information Management Proposal (IMP) is a document created for the organization to follow to make their company a better one. The IMP provides information regarding the use of hardware, software and costs which are included in the working of the organization. The organization selected for the report is Amazon (Amazon 2015), which is one of the largest growing ecommerce industry in the world. The report further discusses about the history of the organization, the major business processes that the company follows, analyzing warehousing as a part of information system, the different components of an Information System and an Information Management Proposal has been made for the organization to follow. History Jeff Bezos founded Amazon in the year 1994. He founded the company because of the regret, which he faced during the internet boom in 1994. He was formerly working for a Wall Street company, which he left eventually to draw up the plan for a business, which would become the Amazon Inc. He founded the company in1994 under the name of Cadabra Inc. Due to a mishearing of the name the company as cadaver, thus the name Amazon came into being. Later Jeff Bezos bought a URL of the name Relentless.com and wanted to change the name again (Aladwani 2001). His friends persuaded him to no to change it and Amazon retained its name. The company officially went online in 1995. The company logo was generalized in 2000, which added an arrow from the A to Z. This was to show the world that the company had everything from A to Z. Jeff Bezos read a report on the outburst on online web commerce growth to become 2,300% in the future. This pushed Jeff to produce a list of 20 items that he would market online. He then reduced the list to the top most five items that would face a huge demand on the market: computer hardware, compact discs, videos, computer software and books. Due to the high demand of literature around the globe, Jeff decided to sell books in the beginning (Zhu, Sarkis and Lai 2012). The low price tag of the books and the huge selection of titles from the market he decided that books would be the best option to start their business. The company was found in Jeff Bezoss garage in Washington. Amazon began as an online bookstore with a partnership with Ingram Books. They procured books at a wholesale price. During the first two months, they sold to over 50 states and 45 countries in USA (Bizer et al. 2012). They had the capability to carry more than 200,000 book titles compared to an offline store. Amazon had not thought that it would make a profit before four to five years. When the dot com bubble burst happened in the 21st century, many ecommerce websites were destroyed (Calvert 2017). Amazon survived the burst and become one of the largest player in the ecommerce game. In the fourth quarter of 2001 made the first profit of more than $1 billion. However, the margin was small but the investors were sure that the plan of Jeff Bezos would work out. Over the years, Amazon faced a lot of criticism. In 1997, Barnes Noble sued the organization after Amazon claimed to be the largest bookstore in the world to which Barnes Noble replied that they were merely a book broker. The c ase was dismissed and Amazon continued to use the tagline. Later in 1998, Walmart issued a case on Amazon for stealing its marketing strategy by hiring Walmart employees. The case was settled out of the courtroom and the company assigned internal restrictions for the Walmart employees. In 2016, the company setup a new roadside store for the people of the organization. They can buy food from the store and charges the products using a set of sensors as soon as the customer goes out of the store (Chau and Xu 2012). This removed the delay in the queues during checkout. Currently the company provides employment to 306,800 people worldwide. In June 2017, the organization declared that they would acquire the supermarket chain named Whole Foods to give competition to Walmart. The deal is still pending approval from the shareholders. Related major business processes Warehousing: For such a big organization there needs to a proper management of warehouse stocks. A warehouse refers to a planned storage space for handling goods and materials for an organization. A global warehousing concept has gained recent popularity for keeping large stocks during emergencies and during peak seasons. The workers are well trained to handle large incoming stocks (Choi et al. 2013). In Amazon to ensure smooth movement of all orders placed on their system they follow a variety of data processing and collecting tools to make sure that the goods move through the warehouse in a smooth manner. Amazon keeps their warehouses well stocked up for the busiest shopping day on the calendar. The flow of all the stocks coming into the warehouse are tracked as follows. The items are scanned and sorted into specific categories. Within the first 12 hours of the arrival of the item, the barcode has to be scanned and stored in their database. There are 50 different receiving areas in the warehouse, where the item are send for further sorting. It is again sorted and finally stored. If a product is of high demand then they are not even stored on the shelf. They are dumped into a heap mass land where all items are ready to be shipped. The items are never stored with their similar counterparts. They can store a movie DVD with a moisturizer and a jar of pickles. There is no algorithm to store but a barcode scanner stores the place where the product is stored and in which shelf it is (Chou and Hong 2013). When an order comes in the list is transferred to a worker on a handheld device and an algorithm shows him the best route to follow for finding all the items on his invoice list. This makes the outgoing invoice fast. After this, there is also an algorithm, which is followed to deliver the items to the person who had placed the order. In 2011, Amazon delivered 99.9% of all the Christmas orders on time. The most innovative aspect of the Amazons warehouse is the usage of the barcode scanner for all the workers on the warehouse ground (Cunningham-Parmeter 2016). The system helps the workers to process shipments at the rate of a truck leaving the warehouse every 105 seconds. Payment Procedure: Every order placed on the Amazon website has to be paid for on receiving it. The users to customize their payment options can use simple options provided by company. Special sales and discount coupons can be applied to the payment options to provide easy discounts (Davis 2014). Customers can pay by not disclosing their personal details and with the addition of the Amazon A-Z guarantee information is safe from theft. The basic requirements to buy on the website consists of a business name, phone number, address, and a bank account. The procedures has vast options. The organization offers payment through the following means: Payment using debit or credit card all valid card payment options can be used to pay for the item bought by the user. Checking account a deposit account held by a bank, which is accessible by the use of checks, ATM and electronic debit options. Gift card a gift card from amazon is similar to a cash voucher, which is of different denomination amount containing a secret code that can be redeemed by the user on the amazon website for purchase of products (Elbashir, Collier and Davern, 2008). Amazon Pay this service helps the user to use the already active payment methods on the amazon website in addition to the websites, which accept the payment through the amazon pay gateway. Secure purchase can be done from non-amazon websites with the help of amazon pay without disclosing any of the users bank or financial details. Cash On Delivery upon selecting this option the user can pay for the item he/she has purchased once the item comes to him. He can pay the delivery with cash and the delivery agent has to accept it. This is not always available for all types of products on the website. It differs from product to product and from the logistics that will be, delivering the product to the seller that is using amazon as a mode of ecommerce website to sell his products (Ernst et al. 2011). Amazon currency convertor this helps the users who are buying the products from an amazon website of a different domain. An Australian person when buying some item from any other domain then the currency convertor will show the user the local currency to be paid for purchasing the product. The same exchange rate will be applied when the user returns the item back. Shop with points the reward points earned by using someones credit or debit card on other websites and shops can be used on amazon to buy items on the amazon website. Marketing strategy: Amazons marketing services helps in making your product stand out in the crowd (Giddens, Gonzalez and Leidner 2016). The service provides three ways to make the products more appealing to the site visitors. Headline search Ads: these show up on the top of the results page. The ads are powered by keyword optimization. The products are connected with keywords, which helps them to appear on the top when a user types in the key words in the search bar (Zeng, Li and Duan 2012). The user who has assigned the keywords on the advertisement can send the statistics to any website they want. Custom texts or messages can be added to this type of advertisements. The minimum cost for ach click is $.3. Sponsored Product Ads: this type of advertisements are also targeted by the use of keywords. They can be both targeted and automatic. Automatic assignment is relied fully upon the Amazon algorithm to show when a target customer is asking for the specific product. With this type of advertisements, the ads can show up on any position: on the search result page or on the product details page. On the desktop search process, the advertisements appear on the right hand side of the search result page or on the bottom of any page. Cost per click on a sponsored product is $0.02 with a minimum of $0.05. Product Display Ads: these are the most general type of advertisements available on the amazon website. They can appear on any place of the website. From the bottom of a different product page to the end of the search page. These advertisements are not keyword driven which makes non-relatable product ads to appear anytime during surfing the website (Wang and Feng 2012). Though a few customizations can be made as if a user is searching for a camera, a user can make a book on digital photography to appear on the same page for the user to view the product. Reportable metrics from the advertisement clicks can be send to pages connected to the website. Other than that Amazon on its own, store a detailed campaign on its server. Analysis of warehousing as a part of Information System From the three topics discussed above the following report will be discussed on the warehousing procedure of Amazon. This topic has been chosen for the discussion as the organization is a huge business with lots of different items to sell, it will need the best kind of warehouse management system it can find to deploy in its workplace (Glowalla and Sunyaev 2013). Warehouse management system (WMS) is the process of management of the warehouse using a certain software, which targets such working. The most basic kinds of WMSs can be a standalone software or can be integrated into an enterprise resource planning (ERP) system. However, complex the system may be the main goal of the WMS is to provide the workers with the correct information about the materials inside the warehouse at all time (Golfarelli and Rizzi 2013). During the first year of its working in 1995, Amazon used to do the website system and the order fulfillment system as two separate entity. This was done to provide data security. Amazon renovated its old database in 2000 to install a new system from Epiphany, Manugistics and Oracle. Excelon sealed a deal with Amazon to provide business-to-business system. Amazon then created two system to support all its work: Amazon Web Services (AWS) and the Simple Storage Services (SS). Vast number of products and millions of customers now became easy to be handled. Millions of customers access all data stored in the servers at the same time (Gowland 2015). A CRM has to endure all the requests at the same time from providing information to showing the users wish list. System are made smart enough to analyze all the requests and produce new requests for the CRM to manage. For tracking the fraudsters on the web amazon uses the smart analysis search to pick out frauds by using behavioral pattern in their search techniques. Components of an Information System Components of information system Definitions Data The data given to the system to produce the required information. Hardware A computer system and its peripheral equipments. Software A series of instruction that is provided to the computer on how to take input, how to store and how to process the information and finally to display the output. Telecommunications A combination of hardware and software that coordinates together to exchange informations in the form of electronic signals. People Professionals who analyses information, design and construct systems, maintain hardware and write software programs for the organization. Procedures Rules and procedures to achieve the secure processing of data and dispensing of software applications and security protocols. Data: Data in the form of alphanumeric data describing business transactions, textual data containing data from conversations, image data including graphics, shapes and figures and audio data in the form of human voice recordings constitute the important parts of data resources. For the selected organization, the warehouse procedure has huge amount of data to be stored. It has already been discussed that the organization has a unique way of keeping the items at the warehouse (Grant, Hwang and Tu 2013). Thus, the corresponding items information with the place it is kept inside the warehouse has to be kept. Moreover a similar item has more than one shelf number due to the fact that amazon stores its items all over the place in a distributed manner. Hardware: Machines and computer system constitute the main hardware of the organization. Data is saved on the machines and computer systems are used to do complex analysis of the information for the organization. Handheld barcode scanner is provided to every worker on the warehouse ground. The scanners are synchronized with the main data base system to show the best route for the worker to travel so that he or she gets all the order items in a less amount of time (Hoejmose, Brammer and Millington 2013). Software: The set of instructions which connect the hardwares to work in a synchronized manner to produce output related to the information input by the user is known as a software. Operating systems, application softwares and procedures all fall under the category of softwares to be used in an organization. The warehouse has a different softwares integrated into their systems, which has the specifications to synchronize all data among every hardware in the warehouse (Horkoff et al. 2012). Telecommunications: Communication network like internet, intranets and extranets all constitute an essential part of a successful business organization. The network consists of computers, processors and other devices, which are connected by communication network and controlled by a communication system. The workers in the warehouse are connected to the intranet by the use of a wireless connection. Such is required for the collection of information in real time (Jaffee and Bensman 2016). People: People resources comprises of end users and the information system specialists. The end users comprises of the end users and the clients of the organization. The peoples who are actually in charge of the information system working as an analysts, programmers, computer operators, testers include the people resource of the organization (Varia and Mathew 2014). The workers and the record keepers on the warehouse ground works in accordance to the information sent to them from the order details. Procedures: The set of rules, which govern the working of the organization, are known as procedures. An organization not following rules will suffer huge loss in terms of client as well as profit. The workers follow the rule s and regulations of the warehouse. They also has to follow the route provided by the system computers to collect all the order items provided to them (Jain and Sharma 2017). Information Management Proposal The aim of this Information Management Proposal (IMP) is to provide an overview of the working of Amazon in the field of warehousing and supply chain management (Kimball and Ross 2013). The following report aims to provide the following objectives: To provide specifications in the field of hardware, software and telecom specification. To prepare an entity relationship diagram. To prepare a dynamic cost incurred by Amazon To assess the different project management issues To assess the information for the migration of data To choose the best acquisition methods. The security and the ethical issues of Amazon The detailed definition of the above provided objectives be as follows: As the organization taken for the report is Amazon, the basic requirements of the organization pertain to the field of hardware, software and telecommunication devices and connections (Linstedt and Olschimke 2015). For the organization the report further discusses the preferred computer specifications that can be used by the organization: ITEM WORKSTATION Computer (networked to server) SERVER Computer ( 5 workstations) Terminal Services Application Server Processor: i7, 2.5 Ghz or greater Octa Core, 2.5 Ghz or greater Dual (or Quad) Core, 2.8 Ghz or greater RAM: 4 Gigabytes 8 Gigabytes 8 Gigabytes Monitor: 22 inch LCD monitor with resolution of 1600x1200 17 inch monitor of resolution least 1600x1200 17 inch monitor of resolution least 1600x1200 Graphics card: Graphics card with minimum 512Mb SVGA graphics card SVGA graphics card Hard Disk: 750 GB or greater 750 GB or greater 750 GB or greater CD/DVD Optional Optional Optional Ports: 3 USB ports 3 USB ports 3 USB ports ADDITIONAL: Laser Printer: Hewlett Packard printer Network printer is recommended Network printer is recommended Label Printer: Dymo Label Writer 400 Not recommended Not recommended Modem: Not required 56k External modem 56k External modem Internet: 512Mb or faster, access to LAN Broadband 512Mb or faster Broadband 1024Kb or faster UPS: Not recommended Required Required OTHER SOFTWARE: Operating Systems: Windows 8.1 Professional Windows Server 2012R2 (64 bit) Windows Terminal Server 2008 .NET Framework: Version 4.0 or higher Version 4.0 or higher Version 4.0 or higher Remote Control: VPN or TeamViewer Microsoft Terminal Server Microsoft Terminal Server Backup software: Backup on Server Veritas Backup Exec Not required Database: Database on Server MS SQL Server 2014 Not required Anti-virus: Avira Health Link Health Link Entity relation (ER) diagram gives the relation between the entity sets stored in the databases. Entity is defined as the context with respect to which data is stored in a database. ER diagrams shows the logical structural definition of the databases. The ER diagram might look like a flow chart but the diagram does not represent the flow of data (Liptak 2014). The following ER diagram has been developed for Amazon: Figure 1: ER diagram of Amazon A dynamic cost sheet has been prepared for Amazon as follows: Period Ending: 12/31/2016 Current Assets Cash and Cash Equivalents $182,240,000 Short-Term Investments $65,940,000 Net Receivables $84,290,000 Inventory $164,250,000 Other Current Assets $15,230 Total Current Assets $496,735,230 Long-Term Assets Long-Term Investments $15,680 Fixed Assets $294,850,000 Goodwill $39,440,000 Intangible Assets $8,560 Other Assets $45,910,000 Deferred Asset Charges $1,520 Total Assets $876,960,990 Current Liabilities Accounts Payable $39,984,000 Short-Term Debt / Current Portion of Long-Term Debt $126 Other Current Liabilities $4,964,000 Total Current Liabilities $44,948,126 Long-Term Debt $7,942,000 Other Liabilities $12,628,000 Deferred Liability Charges $125 Misc. Stocks $943 Minority Interest $249 Total Liabilities $65,519,443 Stock Holders Equity Common Stocks $5,052 Capital Surplus $17,196,400 Retained Earnings $4,919,200 Treasury Stock ($1,834,800) Other Equity ($989,400) Total Equity $19,296,452 Total Liabilities Equity $84,815,895 From the above cost sheet, Return of Investment (ROI) is calculated as follows: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Assets $876,960,990 876960990 876960990 876960990 876960990 876960990 Total Liabilities $65,519,443 65519443 65519443 65519443 65519443 65519443 Total Liabilities Equity $84,815,895 84815895 84815895 84815895 84815895 84815895 Net income $726,625,652 726625652 726625652 726625652 726625652 726625652 After discounting factor @10 % 726625652 799288217 879217039 967138743 1063852617 1170237879 Cumulative inflow 726625652 1525913869 2405130908 3372269651 4436122268 5606360147 Development costs 5000 5000 5000 5000 5000 5000 5000 Cumulative cash flow 726620652 1525908869 2405125908 3372264651 4436117268 5606355147 NPV 5606350147 ROI 1121270.03 Most of the software project failures happen not due to the lack of technological support but due to the lack of poor management of such projects. According to a survey, more than 50 percent of all IT projects fail due to the lack of poor management compared to only 3 percent of failures due to technology (Mathew and Varia 2014). The reasons behind such failures are discussed below Poorly defined target The most common problem in both IT projects and data projects is the undefined target. The organization wants to meet full customer satisfaction. This is very hard to reach. The customer on its own does not know what the full satisfaction is (Su and Yang 2010). Lack of leadership Often all technology projects are deemed as IT projects and is transferred to the IT department. This makes the lack of leadership and management among them. If a project does not get good management done then the project automatically becomes a failure. Lack of explanation When the project is transferred to the IT department the management people does not know what is going on. This lack in communication causes unaccountability of process of development. This lack can easily make the project get derailed (Sarkis 2012). No time management IT projects need time to be managed effectively. Project management has the main criteria of getting time management done correctly so that deadlines can be easily met during production. Lack of testing Overconfidence often leads to the failure of project. Thinking that a project has no errors is not always good. Debugging should be done extensively. At the end, customer feedback is also important. Being a large organization Amazon should always have a backup plan in case any casualties happen. Backup plan in this type of organizations can use the data migration method to have insurance. Data migration is the process of moving forward in the advancement of technology on a regular basis (Newcombe et al. 2015). Data migration works have failed in history but to do data migration is a crucial task. There are certain steps to follow to have a smooth flow of data migration. The system source of the data needs to be analyzed and checked thoroughly which allows the company to know the amount of information it has to transfer for the new technologies. Next, the logical phase comes into play. The organization has to assess the quality of the information it has. Any redundant data needs to be removed and checked before transferring it to the new system. Data is analyzed and stored in separate data profiles. After making the profiles, the design phase of the migration system needs to be c reated. For the designing of the system, the organization should not have just enough memory space for the data. They should consider having enough memory space so support extra information that might get included in the later phase (Nguyen and Mutum 2012). Once the system is ready, the organization can execute the data migration phase. In a certain case of zero downtime migration the updates come at the same time, the information is being transferred. For such models, the systems should be robust enough to support the parallel processes without failure. For the last stage of the process, the old system is analyzed and a retirement report for the old system is created. This is done to compare the result with the new system (Romano et al. 2017). The organization has always been come to be known as one of the top five richest organizations. To uphold such reputation Amazon should buy the best equipments for its workplace and warehouse. Softwares should be bought genuine and with proper license keys. Using pirate softwares can lead to the issue of data security of the servers (OConnor 2013). Amazon is one of the largest seller in terms of books but they have now started to provide cloud service by the name Amazon Web Services. The problems comes in the domain of security, control and the act from hackers. The company claims that they use proven cryptographic methods to have authentication for anyone who are trying to access the cloud servers. For cloud computing domain, security is a major concern for the company (Pacheco-Comer and Gonzlez-Castolo 2012). They always try to make innovative idea to make controlling of the data access, to check if there is a data breach from the servers and how the company will be able to keep such vast amount of data in perfect security. To prevent hacking of the data servers the company has to provide access specific information to all the users. This would reduce the data breach attacks. Apart from this, there should be encryption methods applied to the data stored on the server. If the server is hacked then the hacker gets extra power a s he can now access and use the cloud as a means of vulnerability option (Roelofs and Wegman 2014). Any organization accessing Amazons cloud servers should have legal consultations with the company. It is also advisable to not to upload any sensitive information on the web. The organization has to follow ethics in its workplace environment against its workers and staffs. Many workers have complained that the organization does not pay them well for the overtime work that they do at the warehouse. It has also come to be known that the company provides an unpaid lunch break. Such ethics should not be followed by an organization as big as Amazon. Conclusion To conclude this report, it can be said that Amazon with all the criticism and flaws has still survived the market competition. With different all the different competitors in the market the company still has time to ensure that they turn out to be the best in the long run. As the organization has to deal with a large amount of stackable products, the main aspect, which needs to be taken care of, is the process of warehousing. Warehousing is a concept, which has been taken care of, is a procedural manner. 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