Information and Management Lab

Experiment 1
Worksheet 1

Name: Ankita Thakur

UID: 21MBA1623

To understand information systems, its uses and components

I have taken Amazon as the company under study.
This worksheet focuses on the following aspects:
a) What is an Information system?
b) What are its uses?
c) Components of Information System
d) A design of TPS, MIS, DSS, EIS of Amazon
Information System
An Information system is a combination of hardware and software and
telecommunication networks that people build to collect, create and
distribute useful data, typically in an organization.

Information systems (IS) is the study of complementary networks of

hardware and software that people and organizations use to collect,
filter, process, create, and distribute data.

The purpose of Information system is to convert raw data into useful

information so that it can be used for decision making in an
organization.

The main objective of an information system is to provide appropriate

information to the user, to gather the data, processing of the data and
communicate information to the user of the system.

AMAZON

Amazon is one of the leading

E-commerce multinational
serving customers worldwide. Amazon is a very good platform for
retailers and individuals to sell their products. Amazon utilizes
specialized information systems in its business processes to attain
competitive advantage through improved efficiency in the collection,
storage, and analytics of their customers’ personal information.
Information Systems used by Amazon
• Amazon operates a two-piece information management software
that comprises of the Simple Storage Service that is connected
to its integrated database and the Amazon Web Service that
promotes access to the E-commerce platform.
• The web service allows customers to creation of user accounts
and personalize their profiles for improved efficiency in the
processing of transactions.
• Amazon Web Service is made up of different systems with
different functionalities to promote efficiency in information
management and delivery of business processes.
• Amazon’s information system is based on Service Oriented
Architecture (SOA) which is a fully distributed and decentralized
service platform and enables Amazon’s information system to be
robust and scalable.
• The Customer Relation Management System (CRM) used by
Amazon helps to store customer information.
• The Smart Search Analysis (SAS) helps to detect and decrease
frauds.

Uses Of Information System

• Information system help to provide appropriate information to
the user, to gather the data, processing of the data and
communicate information to the user of the system.
• Information systems allow users to collect, store, organize and
distribute data, functions that can serve a variety of purposes for
companies.
• Information Systems can produce custom data to help with a
specific task or decision-making.
 • Information systems help to manage resources and improve
efficiency in an organization.
• Information systems can be used for both general or specialized
purposes. A general-purpose information system focuses more on
providing a general service for a range of uses. For example database
management system. It helps to organize and analyze general forms
of data.
• A specialized information system is built for a specific process of a
firm or organization. Thus, it performs only specific tasks. An example
of this can be expert systems, where the purpose of the system is to
solve complex problems.
Uses of Amazon’s Information Systems
Service Oriented Architecture (SOA) makes Amazon’s information
system robust and scalable. It concentrates in multiple application
rather than bigger process.

Amazon Web Service is made up of different systems with different

functionalities to promote efficiency in information management and
delivery of business processes.

The customer relation management system takes customer

information through their searching, data mining, wishlist, etc. Thus
providing adequate information about the customers.

The Smart Analysis Search detects and decreases frauds to serve

customers effectively.

Data mining facilitates intelligent recommendations to customers on

the basis of their previous search history.

Components of Information System

There are five components of an Information System. They are:
1)Hardware: Physical equipment used for input, output and processing
is known as hardware. The hardware structure depends upon the type
and size of the organization. It consists of input, an output device,
operating system, processor, and media devices. This also includes
computer peripheral devices.

2)Software: The programs/ application program used to control and

coordinate the hardware components is known as software. It is used
for analyzing and processing of the data. These programs include a set
of instruction used for processing information. Software is further
classified into 3 types:
• System Software such as operating system which control and
support the operations of a computer system.
• Application Software, performs specific tasks for the end user.
• Procedures are operating instructions for people who will use an
information system.

3)Data: The third component is data. Data are the raw facts and figures
that are unorganized that are and later processed to generate
information. Data as a collection of facts. Softwares are used for
organizing and serving data to the user, managing physical storage of
media and virtual resources. Data is intangible. Data are managed using
Database management system. Database software is used for efficient
access for required data, and to manage knowledge bases.

4)Network: Networks resources refer to the telecommunication

networks like the intranet, extranet and the internet. These resources
facilitate the flow of information in the organization. Networks consists
of both the physicals devises such as networks cards, routers, hubs and
cables and software such as operating systems, web servers, data
servers and application servers. The concept of Network resources
emphasizes that communications networks are a fundamental resource
component of all information systems. Network include:

• Communication media, Examples include twisted pair wire,

coaxial cable, fiber-optic cable, microwave systems, and
communication satellite systems.
• Network Support, This generic category includes all of the people,
hardware, software, and data resources that directly support the
operation and use of a communications network. Examples include
communications control software such as network operating
systems and Internet packages.

5)Human Resource: People are the end user of the information system,
End-users use information produced for their own purpose, the main
purpose of the information system is to benefit the end user. People
are required for the operation and development of information
systems. They include end users, systems analysts, computer
operators, programmers, and other clerical IS personnel, and
managerial techniques. Human resources include end users and IS
specialists.

• End users are people who use an information system or the

information it produces. They can be accountants, salespersons,
 engineers, clerks, customers, or managers. Most of us are
information system end users.
• IS Specialists are people who develop and operate information
systems. They include systems analysts, programmers, computer
operators, and other managerial technical, and clerical IS
personnel.

Components used by Amazon

Hardware: Amazon uses computers, Intel processors as their
hardware.

Software: The software used by Amazon is Simple Storage Service

which is connected to its integrated databases. The Amazon Web
Services promotes access to ecommerce platforms. It uses Amazon
Linux in its EC2 services.

Database: The database used by amazon is Amazon DynamoDB,

Amazon Aurora and Amazon RDS by MySQL.

Network: Amazon uses the content delivery network known as

Amazon CloudFront. It also uses Amazon Virtual Private Cloud.

Human Resource: The Human resource here is the technical

department of Amazon who provide technical support to the customers
facing any problem. Human resource also includes the customers who
use Amazon.
Types of Information Systems

1)Transaction Processing System: This

system is used to record day to day business
transactions of a business and is used at the
operational management level. For example,
payroll system, point of sale system, airline
reservation system, etc.

2)Management Information System: It is used to monitor the firms

current status by the tactical managers.
The TPS provides input for this system.
This system is used to analyze inputs,
compare and summarize the results to
produced reports that are used by tactical
managers to monitor, control and predict
future performance. Managers use MIS to
create reports that provide them with a
comprehensive overview of all the
information they need to make decisions. For example, sales
management system, human resource management system, budgeting
system.

3)Decision support System: This

system is used by senior managers
to make routine decisions. It uses
input from internal and external
systems. This system provides
solutions to problems. It analyzes
large amount of data and presents
the organization with the best
options available. This system
brings together data and knowledge from different areas and sources
to provide users with information beyond the usual reports and
summaries. For example, financial planning system, bank loan
management system, etc.

4)Executive Information System: This system facilitates and supports

senior executive information and decision-making needs. It provides
easy access to internal and external information relevant to
organizational goals. It emphasizes graphical displays and easy to use
interface. This system is a specialized form of DSS and allows users to
transform enterprise data into easily accessible and executive level
reports.

Design Of Information Systems

Amazon’s TPS
Amazon’s Transaction Processing System is a key component of
Business Information System as it allows customers to make purchases
securely and efficiently. Amazon uses TPS in to record the daily
transactions, orders placed, etc.

Every customer must have a profile on Amazon to order products. So

TPS is used to record such daily details of customers. Amazon provides
features like 1-click purchase, secure and encrypted credit card
payments, intelligent recommendations, etc. which make the
information management system very easy and reliable. The feature of
1-click purchase allows customers with previously activated
functionality to place an order by just clicking on one button without
having to fill the order form containing the address details, contact
number, etc. again. The Amazon server automatically provides
information of the registered customers.
The above figure is a diagram of Amazon’s Order Processing System
which is a Transaction Processing System. The Hardware here includes
the Customer’s computer and the secure computer which are used for
encrypted transactions. The Input in this system is the Customer search
words for the products they wish to buy and the Oracle database is
used for the deliver information to the customers. Amazon servers
connect these three components to facilitate smooth flow of
information. The Human resource in warehouses are used to deliver
the products to the customers.

Amazon’s MIS
Amazon uses MIS to steer growth and management. MIS aids the
decision making process at Amazon by providing required information
in an updated and accurate form needed in an up-to-date and accurate
system. Amazon uses MIS to manage the customer relationship
management. The sales management system is used to manage and
forecast sales. It helps Amazon to Predict and increase their sales.
 The Warehouse Management System is used to manage the
warehouse processes including inbound and outbound shipments,
item picking, sorting, packaging, and inventory storage. It uses machine
learning bases inventory management system which uses inputs like
the cost of goods sold, shipment time, and Amazon data to forecast
customer demand and set optimum inventory levels.

Amazon’s
DSS

Amazon uses DSS to

provide its customers
with a chance to
choose items from
the top selling list
added to the home
page of the website. It
is also used in the
service “Look Inside
the Book” which gives a choice to the customers to decide whether to
buy a book or not by looking at some random pages of the contents of
the book. DSS also creates effective frameworks and models for the
analysis of the underlying data through effective decision aid.

Amazon’s EIS
ESS is used by the
executives in handling the
queries and answering
questions of the
customers. Amazon uses
its own customized
database called Amazon
S3 i.e. Amazon Simple
Storage Service.