What Is Amazon’s Business Model?

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Amazon Redshift

Fast, fully-managed, petabyte scale data warehouse service that makes it simple and cost-effective to analyze all data efficiently

Supply Chain Optimization

Amazon was certified as the global leader in supply chain operations by Gartner.

http://www.gartner.com/newsroom/id/3053118

Amazon maintains real-time uplinks with retailers, which expands its supply without forcing it to expand its storing facilities and also allows it to deliver goods to customers more quickly. Amazon maintains these real time connections with thousands of suppliers through continuous big data analytics. Amazon tracks purchasing and supply patterns. Not just the numbers but also the frequency and timing e.g. how long it takes to resupply. This is what allows amazon to predict how long you will need to wait for your purchases to be ready for shipping. It also allows amazon to display exactly what number of a certain good is still available for purchase. This is true, even when amazon is not storing the good itself but the item is kept at one of its retailers.

Amazon uses big data systems to select data warehouses based on the proximity of vendors balanced against the proximity of customers to cut down on the distribution costs. The big data systems helps Amazon predict the number of data warehouses needed and the capacity each warehouse should have. Amazon uses graph theory to minimize the delivery costs by choosing optimal schedules, routes and product groupings.[3]

Failed Project?

Q1 2014: Anticipatory Shipping: anticipating consumers’ needs, even before they do themselves

Much hype about this 2 years ago. Creative idea for use of data analytics that failed. [a]

Amazon’s advantages

- One-stop shopping experience

- Remembers type and time of purchase

- Recommends related products

- All allow amazon to collect huge data

New Response: Anticipatory shippingStarting delivery of the product before the customer has purchased it

Minimizing delivery time

Delight, Discount, Deals, all amplified by Anticipatory shipping

WAS NOT IMPLEMENTED

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Cemex:

Challenge of synchronizing its data across its various subsidiaries, especially if it continues acquiring other companies in the future

Lessons from Amazon:

- Use Big data to benefit not just yourself, but also your customer. Be personable

- Test the usability of your new implementations in specific markets before adopting them internationally

- Data analytics lets you know your customers needs and wants, even predict them on an unprecedented scale

Sources

How Amazon uses its own cloud to process vast, multidimensional datasetshttps://dzone.com/articles/big-data-analytics-delivering-business-value-at-am

Deloitte: Industry 4.0 – Challenges and solutions for the digital transformation and use of exponential technologies

Big Data Analytics Options on Amazon Web Services https://d0.awsstatic.com/whitepapers/Big_Data_Analytics_Options_on_AWS.pdf

Big Data on AWS https://aws.amazon.com/big-data/

Amazon knows what you want before you buy it http://www.predictiveanalyticsworld.com/patimes/amazon-knows-what-you-want-before-you-buy-it/3185/

Amazon Machine Learning https://aws.amazon.com/machine-learning/

Amazon: Using Big Data Analytics to read your mindhttp://www.smartdatacollective.com/bernardmarr/182796/amazon-using-big-data-analytics-read-your-mind

Amazon super powers web services with Data analytics http://www.cnbc.com/2015/10/07/amazon-super-powers-web-services-with-data-analytics.html

Amazon Web Services gets serious about big data analytics with bevy of new serviceshttp://www.zdnet.com/article/amazon-web-services-big-data-analytics-enterprise-datacenters/

How companies like Amazon use big data to make you love them http://www.fastcodesign.com/1669551/how-companies-like-amazon-use-big-data-to-make-you-love-them

How Amazon tools are solving Big Data Problems with Big Data Analytics http://www.theserverside.com/feature/How-Amazon-tools-are-solving-Big-Data-problems-with-Big-Data-Analytics

Amazon.com, Inc. – Financial and Strategic Analysis Review

American Customer Service Satisfaction index

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