The Secret Of Using Internet

Published Date: 02 Nov 2017

INTRODUCTION

The chosen entrepreneur that has successfully applying IT into his business which is Amazon.com is Jeffrey Preston Jorgensen or known as Jeff Bezos. Bezos founded Amazon.com in 1994 after making cross-country drive from New York to Seattle and writing up Amazon business plan on the way. He left his good paid job in New York City and set up his company when he realized about rapid growth in internet use. Added more, Bezos also know that online retailers don’t have to pay sales taxes in state because of lack in physical presence. [1] 

Amazon.com is an American multinational electronic commerce company with headquater in Seattle, Washington. Amazon.com started as an online bookstore, but soon diversified, selling DVDs, CDs, MP3 downloads, software, video games, electronics, apparel, furniture, food, toys and jewelry. [2] Amazon.com are fully operated online and don’t have any physical stores but they have software development centers, call centers, fulfillment and warehousing nationwide included Europe, Asia and North America.

There are few factors that Jeff Bezos done to create competitive advantage on his business, those factors are using human forces instead of robots, fully utilize the warehouse storage, providing good customers services and the main key to success is the ability of Jeff Bezos to structured a good business model in unconventional way. [3] (Parker,George. 2012 )

OBJECTIVES

There are few objectives that can be identifying from this question. The first is we can get to know the great person backgrounds from what he have achieved now and what inspired him to leave good pay job to start his own online business, Amazon.com.

The second objective is to study how Jeff Bezos able to success in the industries compared to other companies that offering same products and services in the region like dot com.

The third objective is also to know how Amazon.com works on the internet and warehousing structure which are able to cover Asia, North America and Europe countries without using machinery.

The fourth is how IT helps Jeff Bezos in smooth out the business flow in everyday transactions and operations. Plus, how can IT helps Amazon.com to be accepted by customers and retailers as the first company that offers complete online store-front type of business.

BODY OF ARTICLES

The background and Inspiration

The Harvard Business Review recently published its list of the 100 Best Performing CEOs.  This list is better than most because it looks at long-term performance of the CEO during his or her time in the job – with many on the list in service more than a decade.

#1 was Steve Jobs.  #2 is Jeff Bezos– making him the greatest living CEO. [4] (Hartung, Adam. 2013)

Bezos founded Amazon.com in 1994 after making a cross-country drive from New York to Seattle, writing up the Amazon business plan on the way. He initially set up the company in his garage. He had left his "well-paying job" at a New York City hedge fund when he "learned about the rapid growth in Internet use", which coincided with a "then-new U.S. Supreme Court ruling [that] online retailers don't have to collect sales taxes in states where they lack a physical presence"; [5] Â 

"..his 1994 cross-country drive from New York to Seattle to start Amazon—typing the business plan as he went and picking up $300,000 from his parents in Fort Worth…" [6] 

Bezos: Boy. I’ve been asked to make tough predictions before. That one’s very tough. But that’s not what this is about. If I wanted to buy tourist trips to fly to the International Space Station and Soyuz and those things, there’s nothing wrong with that. But that’s $35 million. I want to lower the cost of access to space. [7] (Levy, Steven. 2011)

Bezos success in the industries

Jeff Bezos, the founder and chief executive of Amazon, owes much of his success to his ability to look beyond the short-term view of things.  It might seem like a risky bet, but the same was said of many of Amazon's unusual moves in the past. Successful firms, he says, tend to be the ones that are willing to explore uncharted territories.

His next move could be into smartphones or a video-streaming service that competes with Netflix, but it is just as likely to be something entirely unexpected. By being unusually patient, he hopes to create businesses that rivals will find harder to assail. [8] (Technology Quarterly)

"Every time a customer contacts us, we see it as a defect. I’ve been saying for many, many years, people should talk to their friends, not their merchants. And so we use all of our customer service information to find the root cause of any customer contact. What went wrong? Why did that person have to call? Why aren’t they spending that time talking to their family instead of talking to us? How do we fix it? [9] 

The secret of using internet and managing warehouse structure

These multi-football arena sized premises take care of sourcing, organizing, packing and shipping millions of orders a day… And surprisingly, they do it with a vast number of workers who use simple barcode scanners to find, and expedite on its way, any item in the warehouse. There isn’t a single robot in the place.

The seemingly counter-productive thing about Amazon’s warehousing system is that it relies on something described as "Chaotic Storage" where products are shelved at random, and because items are stored randomly rather than categorically there’s a more efficient use of shelf space.

If there are changes in product ranges, Amazon needn’t plan for extra room for incoming merchandise if it’s being stored at random. This ensures a consistent flow of merchandise. By relying on humans, rather than robots, Amazon can be more efficient, responsive, and yes, profitable, just one more example of Bezos’s unconventional approach to business. [10] (Parker,George. 2012 )

IT helps business to run smoothly

"as the company next launched Kindle Fire – which at remarkably low cost gives people a tablet already set up for doing retail shopping at Amazon." [11] (Hartung, Adam. 2013)

"Fire is an emblem of a post-web world, in which our devices are simply a means for us to directly connect with the goodies in someone’s data center. The gadget comes preloaded with customers’ Amazon account information, and anyone who signs up for Amazon Prime, the company’s $79-a-year shipping service, will be able to access more than 12,000 (and counting) movies and TV shows on the Fire at no extra charge. Fire users can store up to 20 GB of music for free on the company’s servers (or an unlimited amount of music bought from Amazon). They can then stream it freely, along with more than 100,000 videos. Over the past eight years, the company has capitalized on its data center expertise to build a vast cloud computing platform, which hosts web operations for some of the world’s largest Internet companies" [12] 

DISCUSSION

Objective 1: Jeff Bezos Inspiration and personal background

From many of the articles that I have read through, it shows that Jeff Bezos is a very humble where he only take fixed salary for himself and a very kind person. This is one of the key on how Amazon.com success because they are practicing the good culture in the company. There are also available of few prove that shows Jeff Bezos is a person with unique mind set and available of powerful ideas to be implemented in the bsuniess. Either than that, Jeff Bezos also an unconventional person because as we been told that he created Amazon.com business plan while he was travelling and set the business in his garage. He also a person that wanted to know everything that happened in his company based in portfolio.com.

Objective 2: Key to Success in the industry.

There are many of Amazon.com success keys and all of it came from the idea of Jeff Bezos himself. When he see the widely use of the internet, he creating online bookstore and until now Amazon.com have varieties of products offered to the customers with simply standard price compared to physical bookstore prices. Amazon.com is a fully utilize its internet usage and also provide cloud application which is allocation of capacity to deal with mountains of data. Besides that, Amazon.com also concern about its customers complaint, which they wish that no customers will wasting their time calling service center. They also didn’t charge customers if there are broken on the products, according to Parker, George "five years ago I bought one of the first Kindles, after enjoying it for a week; I dropped it on the floor and stood on it. Don’t ask why.I called Amazon and explained what had happened. They said they would ship me a new Kindle that day and I should return the old one in their pre-paid package. I asked how much this would cost. Nothing, they said. Voila, I became a customer for life, not to mention an enthusiastic promoter of all things Amazon." This situation clearly describe how Amazon.com treating their customers. Other than that, Jeff Bezos has created a company that strong and hard for new entrance to compete with which also contributed to their success.

Objective 3: Managing warehouse and internet

Currently Amazon.com have huge warehouse that been operated with vast number of workers without using machines. I can say that Jeff Bezos have give the working opportunity to every people that wanted to work. Amazon.com applying Chaotic Storage where they did not arrange the products according to the types instead of just using barcode scanning technology for workers to find the products in the warehouse. It can be analyzed that Bezos have ready to add up more products into his company and they won’t face space problems for new products because each space in the warehouse are fully utilized.

Objective 4: IT helps Amazon.com to operate smoothly

This objective to overview what IT has greatly help Amazon.com to be successful until now? Discussing on IT, as we know that Amazon.com is using fully Information Technology advantages in their company, started as online bookstore, providing call center for customers, providing Kindle at lower price but high speed of accessing to internet and automatically been directed to amazon.com for e-books and other services. That Kindle tablet also provided with cloud application whereby customers that registered with Amazon Prime can enjoy 20GB capacity of storage to store music provided by Amazon.com and can watch 12,000 free movies. As we see that I have mention above, it shows that IT are fully used and these helps created success to the company. Amazon.com using barcode scanning system consider as MIS. Amazon.com really understand what IT meant for them and Jeff Bezos coming soon will create smartphones and video-streaming which will embossed competitiveness in the technology industries.

CONCLUSION

Overall it can conclude that Jeffrey Preston is an eye opener to all technopreneurs that will born in future, he will be the history that will be thought to generations by generations because of his different kind of thinking and humbleness even he has success now. Jeff Bezos really see the opportunities that Information Technology created and act to take actions even he doesn’t have proper business plans yet because the ways he see things and an innovative person that inspired him to be this successful until now. Information Technology have helped him a lot in his business operations that mainly using internets. There are still many things that generated the profits to his company like merchant investors, advertiser and etc. This situation is best describe a situation with existence of right people with right information create success to business.