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Company profile is the largest retailing online company with 35 millions customers

and nearly $5 billion in sales. In the beginning, the CEO e!! "ezos started in #$$5 by selling boo%s because o! the uni&ue customer e'perience the
(eb could o!!er !or boo% lo)ers. "ezos belie)ed that only the Internet could o!!er
customers the con)enience o! browsing a selection o! millions o! boo% titles in a
single sitting. *he design o! the business model is such that technological inno)ation
dri)es the growth o! to o!!er more types o! products at signi!icantly
lower prices. Among its many technological inno)ations !or customers,
o!!ers a personalized shopping e'perience !or each customer, boo% disco)ery through
+earch Inside*he "oo%, con)enient chec%out using #,Clic% +hopping, and se)eral
community !eatures li%e -istmania and (ish -ist that help customers disco)er new
products and ma%e in!ormed buying decisions. +ince #$$5, has
signi!icantly e'panded its product o!!ering, international sites, and worldwide
networ% o! !ul!illment and customer ser)ice centers. *oday, o!!ers
e)erything, literally, !rom tennis rac%ets to li)e .aine lobsters to diamond /ewelry,
and operates sites !or the 0nited 1ingdom, 2ermany, apan, 3rance, Canada, and
In 6777, began to o!!er its best,o!,breed e,commerce plat!orm to
other retailers and to indi)idual sellers. *oday, hundreds o! thousands o! world,class
retail brands and indi)idual sellers increase their sales and reach new customers by
le)eraging the power o! the e,commerce plat!orm. *hrough programs
such as .ar%etplace, Ad)antage, and by wor%ing with subsidiary
Amazon +er)ices, sellers o! all shapes and sizes o!!er their wide array o! selection to customers by using )arious components o! the e,commerce plat!orm.
3urthermore, has success!ully implemented their integrated system
through internet by managing the in!ormation system as well as maintaining their
technical and application system. *he resounding success o! this then, one o! its %ind
online retail company, has pro)ed that, by gi)ing customers more o! what they want ,
low prices, )ast selection, and con)enience , will be able to continue to
gain popularity, grow and e)ol)e as a world,class e,commerce plat!orm.
Management Information System in
One o! the strength that Amazon possess as an online retailer is that they can
manage their in!ormation systems i.e. data, in!ormation, transaction and logistics
processes in an e!!ecti)e manner. Amazon belie)es in creating in)estments in their
in!ormation systems in order to create )alue and increase pro!itability. .ore than that,
Amazon has built their in!ormation systems not /ust as an impending technological
impro)ement but as a management solution to business challenges that arise !rom the
radical business en)ironment. *he main !ramewor% o! in!ormation
systems is de)eloped based on a +er)ice Oriented Architecture 4+OA5. *he system
technology has been dri)en to enable this continuing growth, to be ultra,scalable
while maintaining a)ailability and per!ormance. *his system pro)ides the le)el o!
isolation that allows company to build many so!tware components rapidly and
independently. In terms o! data, the system encapsulates the in!ormation with the
business logic that operates on the data, with the only access a)ailable is through a
published ser)ice inter!ace. *hey ha)e in place, a high a)ailability system and the
management scalable enterprise system, !ocused on ma%ing the bac%,end database
scale to hold more items, more customers, and more orders to support international
sites. +OA as a base architecture o! ser)ices is based on the premise that so!tware
components operate as modular components 4building bloc%s5 o! a larger,
immediately e'ecuting transaction 4unit o! wor%5. +er)ices are designed to per!orm
reusable partial processes on behal! o! a bigger transaction. +OA is attracti)e because
it enables the reuse o! logic and data in multiple conte'ts.
Analysis of Management Information System in
*he Ad)antages 8
o +OA system could change business models and modes o! engineering and
deli)ery !rom highly custom one,to,one ser)ices to a one,to,many
4domain speci!ic5 or many,to,many ser)ice model 4!ramewor%,centric
deployments5, its ma%e bene!it !or It is comprehensi)ely, a
!ully distributed and decentralized ser)ice plat!orm that ser)es multiple
o In +OA system client can be competent enough as the time needed !or the
de)elopment is considerably reduced because o! the reuse. It allows an
organization to le)erage e'isting assets, rather than building a new product
!rom scratch without ma%ing use o! e'isting ones.
o *his also reduces the so!tware de)elopment cycle and cost in)ol)ed, thus
a !aster time,to,mar%et is made possible.
o +OA architectural solutions promises organizations to interoperate the
)arious businesses e'posed as web ser)ices that will allow the
organizations to interoperate as in a web ser)ice to get customer details
can be used by other departments, say 9ome loan line o! credit, can issue a
re&uest to the customer details. +imilarly the Credit online system may use
the same web ser)ice to get the customer details.
o +OA allows you to de)elop a comple' product by integrating di!!erent
products !rom di!!erent )endors independent o! the plat!orm and
*he :isad)antages 8
o +tand alone, non distributed applications that do not necessitate application
or component integration; that would include, !or instance, a word
processing application that does not re&uire re&uest and response based
o +hort li)ed applications or applications that are in any way limited in
scope. *his would include, !or instance, an application that has been built
as an interim solution that is not intended to pro)ide !ull !unctionality or
reuse !or !uture applications.
o Applications in which one way asynchronous communication is necessary,
and where loose coupling is considered undesirable and unnecessary.
o 9omogenous application en)ironments, li%e, !or instance, an en)ironment
wherein all applications were built utilizing 6EE components. In these
instances, it is not a good idea to introduce <.- o)er 9**= !or inter,
component communications rather than utilizing a)a remote method
o Applications that need 20I based !unctionality. -i%e, !or instance, a map
manipulation application that has lots o! geographical data manipulation.
+uch an application is not suited !or hea)y data e'change that is ser)ice
(ith use the +OA 4+er)ice Oriented Architecture5 system, can
accept more ad)antages to their company. *he e!!ecti)e use o! in!ormation systems
has allowed to impro)e the e!!iciency o! its distribution channels, to
pro)ide cost e!!ecti)e con)enient products to its customers and to achie)e the highest
le)els o! customer retention and loyalty within the e,retail industry, which ultimately
has helped Amazon to increase pro!itability and to achie)e a solid !inancial position.
In addition, in!ormation systems ha)e pro)ided the company with notorious
competiti)e ad)antage o)er their competitors since it has been able to better adapt its
business model to the changes that the retail industry has e'perienced during the past
decade, such as the shi!t towards online shopping due to a more widespread use o!
Internet. .oreo)er should !ind system that can sol)ed the problem o!
+OA Architecture that would not be suitable !or applications with 20I !unctionalities,
because those applications would become more comple' i! they use +OA architecture
which re&uires hea)y data e'change. .aybe Amazon can de)elop +OA system to be
better and reduce the wea%ness o! +OA program. I! can sol)ed that
problem I thin% can accept more pro!it and get e!!ecti)eness !rom that
Management Information
Created by8
Hanny Purnama Sari !"#$%"&'
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