-
Essay / Development History: The Amazon of Innovation
From its beginnings to its online bookstore, Amazon has continued to add new product categories since 1998. From purchasing school supplies to Searching for the right tire for your car or trying to find the perfect rug for your living room, Amazon is more than just a global online retailer. On Monday, November 26, 2012, also known as Cyber Monday, Amazon received 306 item orders per second, or 26.5 million total item orders worldwide. Trying to process every package and deliver it is part of Amazon's innovative use of information systems and a huge support infrastructure to deliver such massive quantities of orders efficiently and on time. Amazon has its flaws, however, because its infrastructure model is too massive for every other day of the year it doesn't distribute millions of product orders, resulting in huge money losses, and it works with very low margins, which means it has to fully utilize these high-selling holidays to create significant profits. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayAmazon would not be where it is today as an international organization without the collaborations and out-of-the-box thinking beaten to encourage customers to buy products via their platform. In 2011, the company sold 29 categories of goods and services; working in collaboration with various production companies to fulfill millions and millions of customer orders. Amazon now offers over 40 categories of a diverse range of products. The company's main categories are: clothing, shoes and jewelry, with a turnover of approximately 166.4 million, home and kitchen with a turnover of approximately 86.09 million, and finally books with a turnover of 53.38 million per year. In addition to continually collaborating with new products, Amazon Distribution Services and Amazon Web Services allow their competitors to make sales directly through their website using their online shopping platform and server capacity. In turn, Amazon figures the revenues of these different competitors using their platforms. Order fulfillment information can be cross-referenced directly on the web with Amazon's inventory, fulfillment, and shipping applications. Netflix, for example, got its own marketplace within Amazon's infrastructure, meaning it runs using Amazon servers. Amazon then directly generates revenue simply by allowing Netflix to use its service platforms. Amazon allows businesses to use their service methods, which is beneficial for businesses due to the massive customer traffic that passes through Amazon's website every day. This allows for a beneficial dual relationship between Amazon and these companies that use their platforms, as they get enormously more views and sales from customers, and Amazon can generate revenue from their sales. Experimenting and always trying to improve or become something like Amazon is key. In 2011, when Amazon launched its Amazon Kindle device, it allowed users to browse, purchase, download and read e-books, newspapers and other digital media via a wireless network to the Kindle store. Since Amazon's Kindle became so successful, Amazon began experimenting with its own currency. In 2013, Amazon launched Amazon Coins, a virtual currency allowing US customers to purchase apps, gamesand in-app items on the Kindle Fire. Using Amazon Coins provides an easy way to spend money on the Kindle Fire as well as more opportunities to drive traffic and downloads. “Failure and invention are inseparable twins, to invent you have to experiment,” CEO Jeff Bezos said in his letter to shareholders. Amazon is constantly trying to find new and innovative ways to fit into its business. Another experiment testing strategy is A/B. Tests that allow you to postpone decisions until after the idea is launched, only with an excellent strategy, innovative ideas and deep intuition for success, which Amazon has already mastered. As noted in the article, Amazon pushes its employees incredibly hard, claims the hours are long, the pressure is severe, and the workload is heavy. Amazon employees must be quick thinkers and excellent problem solvers when dealing with large fulfillment services. Knowing the technology and performance of the systems is ideal, especially when it comes to how packages are organized, where they're going, and how they're going to get there. Employees need to know every level of the systems in case something goes wrong. So they know where to go and do to resolve the problem. I believe there are very stressful and complex situations that can arise in all aspects of the fulfillment process, so employees need to know the process. There are five main symmetrical components in an information system: Hardware, software, data, procedures and people. On the external frame are the equipment and the people, these components are called actors; they can act. Amazon's order fulfillment hardware is the physical devices used in or with the machine to process the order. Examples would be their screen, their hard drive, their keyboards, and their processor for any commands they receive. For Amazon users, I think they are the most important. They virtually possess the power to indirectly manufacture new products and improve the quality of manufactured products through their knowledge, attitudes and overall demand. Moving on to software and procedures, it is basically a set of instructions. The Software, which must use at least one Hardware to function, is made up of a set of codes installed on the computer's hard drive. Software is instructions for hardware, and procedures are sets of instructions for people. The software for Amazon is first of all their current website. When purchasing a digital game, you can download and install what is part of the software. With order fulfillment, the entire process from finding your product on their website to clicking on shipping is completely associated with Software. Another set of instructions but intended for people, for procedures. Procedures are used to use, exploit and maintain information in a system. When talking about Amazon's order fulfillment procedures, procedures must be established to run a program, including who runs it, when to run it, and who has access to the output. Finally, data is the bridge between the computer side on the left and the human side on the right. Amazon obtains important insights by processing data from company inputs to generate information useful for managing its operations. To increase overall data efficiency, you can basically add more data to get more accurate information or use the information fromnew ways. Imagine the millions of amounts of different types of data stored on a single system. By moving from people to hardware, automation shifts work from the human side to the IT side, while by moving from hardware to people, it increases the difficulty of change. Amazon primarily creates and maintains its own hardware and software while manipulating data points to make procedures or processes easier for users. Amazon really took advantage of Moore's Law, an observation that the number of transistors in a dense integrated chip circuit doubles approximately every two years. In English, processor speed and overall processing power double. In 1997, Amazon launched its 1-Click Shopping. When you click on 1-Click on any product page, your order will automatically be charged to the payment method and shipped to the address associated with 1-Click. Moore's Law applies here because of the faster processing power the company has to complete this quick transaction. Year 2000, Amazon created Marketplace. Marketplace is a platform that allows anyone to sell directly to the end user or customer online. This is a collection of independent retailers and sellers who sell their products through the Amazon system. Moore's Law allows both Amazon Retail and Amazon Marketplace to be treated under a similar system. This helps both Amazon have a simple system that they know how to use and the Marketplace also has a simple, easy to understand way to sell their products. Amazon.com Associates Web Services was launched in 2004. This service was designed to give developers access to Amazon.com product data. Imagine how many products and how much data are generated in a single day, Moore's Law simply contributes to this through law. As it doubles almost every two years, it can store endless amounts of data that any developer can access quickly and easily. Along with a similar service, Amazon launched Amazon Echo-Alexa. This product exploded and found its way into millions of homes. In 2006, Alexa Web Information Service (AWIS) was launched. It is a subscription-based service that allows developers to access Alexa Web traffic data on their websites and apps, so users can easily review their past actions and the websites they have visited. Again, Moore's Law helps in maintaining and storing all data accounts in a single system. Finally, Amazon used Moore's Law for its Amazon Coins, launched in 2013. Again, this is a digital payment method created by Amazon solely for use on Kindle, Kindle Fire, and Android devices. Moore's Law helps Amazon understand what the customer can and cannot buy, as well as having all the data of each user and their quantity of coins available. It is able to keep everything the business would need on the same server as the data continues to grow. If I worked for an innovative company like Amazon and didn't know how to do something, I have a feeling my manager would do it. either find a way to help me learn it or work with me to know what I need to know. In all honesty, if I was hired at Amazon it would be because I am qualified and they think I will be successful at their company. When I encounter problems, I want to learn how to solve them and understand the situation. Managers are likely to encounter employees who are not as high-tech or as innovative as Amazon, so they probably have solutions for.