Amazon Analysis Essay

825 Words Oct 10th, 2012 4 Pages
In the first years, Amazon intentionally kept its website systems separate from its order-fulfillment system. The separation was partly due to the fact that they did not have the technical ability to connect them, and partly because the company wanted to improve security by keeping the order systems off the Web. By 1997, Amazon‘s sales had reached $148 million for the year. Their databases were being run on servers while applications were being written in house. By early 2000, the company had over 100 separate database instances running on a variety of servers. These servers were handing terabytes of data. In 2000, Amazon decided to overhaul its entire system. The company spent $200 million on new applications, including analysis …show more content…
Amazon is currently working on software updates that will handle everything from scheduling Christmas overtime to re-routing trucking routes in a snow storm. The second IT update that Amazon is currently looking to install will solve their most complicated problem: how to keep inventory levels at a minimum while ensuring product availability. At the corporate level, some officials think Amazon should increase their holdings of best-selling items while stop holding slow-selling ones. Once a customer orders a slow-selling item, Amazon will order the product and ship it to them. This is causing a problem because Amazon’s strength is getting products to the customers as fast as possible. If Amazon cannot accomplish this, they fear they may lose business because people will no longer order certain products online; they will end up purchasing from stores or someone else. The third way Amazon uses information systems to improve business communications and improve relations with their customers is by updating inventory levels in real time. Prior to 2001, the main issue Amazon was faced with was on their merchant website. The problem was inventory levels were only being updated every eight hours. Consequently, customers were being told items were available but in reality have been sold out for several hours. To fix this problem,

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