The Business Value of Information Systems. Case Study: Amazon.Com

4017 Words Dec 24th, 2011 17 Pages
THE BUSINESS VALUE OF INFORMATION SYSTEMS
CASE STUDY: AMAZON

Isabel Maria Arroyo Moreno
Business Information Technology Module

BSc Business Management with HR
Greenwich School of Management, University of Plymouth (London)
Submission date: 8th December 2011
Word count: 2.776

Table of Contents
Executive Summary 4
The Business Value of Information Systems 5
Introduction 5
Business Value of Information 5
Business Information Management through Information Systems 6
The Value of Information Systems 6
Customer Relationship Management (CRM) Systems 6
Enterprise Resource Planning (ERP) Systems 7
Supply Chain Management (SCM) Systems 8
Information Systems and the Changing Business Environment 8
Amazon.com Information
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According to Marchand (2000) information can create value for organisations by:
• Adding value to products and services through a better understanding of customer characteristics and needs, as customer activities are monitored to develop competitive strategies.
• Reducing costs and making business processes and operations more efficient, as information enables organisations to use fewer resources and to improve communication.
• Supporting organisational strategic decisions and helping with risk management assessment
• Enabling innovations and new product and service developments (Chaffey, 2004; Oestreich, 2010)

Business Information Management through Information Systems
Business information management involves the use of information systems (IS) which, according to the UK Academy for IS, are “the means by which organisations and people, using information technologies resources, gather, process, store, use and disseminate information”. (www.ukais.org; Chaffey, 2004) Therefore, IS are computer based systems that collect, process and stores data, making possible its conversion into useful management information –data mining process- to be used by decision makers within organisations. (Davis & Olson, 1985; Lucas, 1990; McLeod, 1995 cited by Ramesh, 1997).

The Value of Information Systems
During the 1990s, there was a great argument about the real

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