November 17, 2010
When we speak of information systems and how they are forever changing the waycompanies do business,Amazon.comrepresents a perfect example of how a company can adapt to constant change within a competitive market place. This flexibility allows them to stay in the game with large companies like Wal-Mart, Microsoft, and Google. Amazon is always growing and is continuously evolving within the market. Their strategy is to diversify as the market and capabilities of information technology change.
Amazon.comwas only using 10% of its infrastructure for its online retail business. The company has developed a strategy to use the other 90% of its $2 billion infrastructure as a service provider to other companies. Amazon.comis definitely moving away from being an online retailer. Rather than trying to compete with companies like Google, Microsoft, and Wal-Mart in the online shopping market, they are using their large and reliable system to process data. They are allowing companies and individuals access to their infrastructure to help them run the technical and logistical parts of their businesses for a fee.
Amazon.com is competing with Google and Microsoft because they have the infrastructure to build a web-based, global computing platform. So far, it seems to be a wise strategy, thousands of companies are using Amazon??™s services. Companies like Webmail, Powerset, Efficient Frontier, and Casting Word are taking advantage of Amazon??™s available computing power. Time will tell if it is a wise strategy or not but developing the system should give Amazon the edge they need to grow in this market.
Google has developed the GooglePlex platform, which allows Google to do four things. First, it lets them remain a search company and continue to refine its search algorithms and targeted advertising. Second, it would also allow them to become a portal like Yahoo or Microsoft Network (MSN). Third, it developed its role in electronic commerce and services. Fourth, it can develop products to compete with Microsoft Office. Amazon.com is competing directly with Google, Microsoft, and other large companies to build a Web-based, global computing platform.
???Three of these services are the Simple Storage Service (S3), the Elastic Compute Cloud (EC2), and the Mechanical Turk (Rainer & Turban, 2005)???. Amazon uses these three services that help run their storage database. Amazon rents their database and applications to other businesses or individuals.The companyprovides businesses and individuals??™ space on their webpage to post products that consumers can buy. This type of information that Amazon provides is online storage that business can use when they do not have to go through the trouble of setting up their website to sell their products. The knowledge that Amazon has in their EC2 system gives their consumers a sort of server that allows information and data to be stored or restored when needed.
A possible data management issue would be keeping the consumer??™s personal information confidential. Businesses and individuals who sell on Amazon must ask for personal information. This information can include addresses, credit card account information and bank account information when completing a purchase. Even though Amazon has a Mechanical Turk service that filters through what people may post to sale on Amazon it still may not be enough to protect private information.
As a large Internet retailer, Amazonuses business-to-business as their main source of revenue by using e-procurement to sell electronic services. Such examples can be computing, storage, and infrastructure space. Amazonis selling this extra computing power as a relationship builder and a way to take market share from their competitors.In addition, with the business-to-consumer side of Amazon??™s organization there is a large diversity of technology. This is very involved and requires constant monitoring to keep up with consumer needs. The electronic retailing is an efficient way of dealing with consumers by building an electronic storefront and creating a preference page to help the consumer find and possibly purchase the items that are preferred (Rainer & Turbin, 2008).
Byusing its large reliable data system, Amazon is moving away from online retailing,so they are not in direct competition with Google and Microsoft. The company has shifted its focus to a web based, global computing platform. This will allow them to markettoother major corporations productssuch as simple storage service, likeComputer Cloud and Mechanical Turk. This will allow Amazonto be successful and to compete with otherindustrygiants and still maintain its position within the World Wide Web.
Rainer, R. K., & Turban, E. (2008). Introduction to Information Systems. John Wiley & Sons.