Amazon Business Intelligence

First of all, Business intelligence (BI) defined a technology-driven

process for analyzing data and presenting actionable information to
help corporate executives, business managers and other end users
make more informed business decisions. BI encompasses a variety of
tools, applications and methodologies that enable organizations to
collect data from internal systems and external sources, prepare it for
analysis, develop and run queries against the data, and create reports,
dashboards and data visualizations to make the analytical results
available to corporate decision makers as well as operational workers.
Most of the organizations such as Amazon Company emphasizes on
data collection and its analysis as a cardinal activity for long term
strategic planning. Large companies like Amazon endeavor to gain a
competitive advantage over their competition, they use information
management system to analyze their data and these activities have
evolved to what is now known as business intelligence of BI.
Besides that, there is some business intelligence Process such as:
1. Extracting information from the necessary source systems such as
ERP, CRM, POS, ATM and different file systems
2. Captured information extract, transformed and load into a repository
such as a data mart or data warehouse.
3. From data ware house, user enable to get answers of specific types
of business questions.
Amazon and intelligence system
Amazon uses information system in collecting data in 3 ways:
1

1. Operational data- The company collects this data from automated

programs that are built into the web site. The inbuilt programs gather
information such as conversion rates, number of clicks per visitor,
profit per converted visitor and every other move a consumer makes
on the website. (Chaffey et al, 2006). And using predictive analysis
Amazon offers recommendation for its potential buyers.
2. Tactical data -Amazon.com uses this type of data and automates
customer channel preferences, the way the web is displayed to
different users as well as merchandising and recommendations. It also
uses this data for its key features such as "your recommendation" and
its personalized e-mail program, which manage and keep track of emails sent to specific groups of customers. (Chaffey et al. 2006). These
activities carried out by using predictive analytic model incorporating
with tactical data.
3. Strategic data- Using this data Amazon determine which products
are profitable and which products needs to be discounted. It also uses
this data for its free shipping campaign.
Moreover, the potential benefits of business intelligence programs that
implemented in Amazon company are including accelerating and
improving decision making; optimizing internal business processes;
increasing operational efficiency; driving new revenues; and gaining
competitive advantages over business rivals. BI systems can also help
Amazon company to identify market trends and spot business
problems that need to be addressed.
It is very important to indicate that Amazon choose the business
intelligence solution in line with their business strategy on the market
today.

Amazon is recommended before it's used in BI applications, raw data

from different source systems must be integrated, consolidated and
cleansed using data integration and data quality tools to ensure that
users are analyzing accurate and consistent information.

References
Darrow, B. (2015). AWS takes on business intelligence with QuickSight.
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Fortune.

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http://fortune.com/2015/10/07/aws-

quicksight-business-intell/ [Accessed 20 Oct. 2016].

John, F. (2016). How Has Amazon Used Technology. [online] Topics,
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Free.

Available

at:

http://studymoose.com/how-has-amazon-used-technology-essay
[Accessed 20 Oct. 2016].
Rouse, M. (2016). What is business intelligence (BI)? - Definition from
WhatIs.com.

[online]

SearchDataManagement.

Available

at:

http://searchdatamanagement.techtarget.com/definition/businessintelligence [Accessed 20 Oct. 2016].

Venkatesh, R. (2016). Forbes Welcome. [online] Forbes.com. Available
at: http://www.forbes.com/sites/venkateshrao/2011/12/14/the-amazonplaybook/#dbf4c2f3378e [Accessed 20 Oct. 2016].