3. Online store - 1995 International market - 1998 Music & Video stores- 1997 Expand to toy, kitchen, home stores -1999 Partner with Toys R Us- 2000 Kindle - 2007 Online music- 2003 Amazon web service- 2006 Amazon cloud computing - 2008 Amazon Cloud streaming- 2010
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7. IT principles IT architecture IT infrastructure Business App. Needs IT investment Inp. Dec. Inp. Dec. Inp. Dec. Inp. Dec. Inp. Dec. Business Monarchy IT Monarchy Feudal Federal IT Duopoly
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Editor's Notes
Business Modularity (standard interface and business componentization) – eg. Service Oriented Architecture (SOA) -Amazon has gained momentum as soon as it entered the online commerce market. They have grown from being business Silos to Standardized technology to Business - Year 2000, Amazon saw a decline in revenue due to dot com bust and two of its main vendors declared bankrupt. The Senior Mgmt team immediately identified that they needs to quickly leverage its capabilities, fill excess capacity and deal with competition from traditional retailers. It closed down its online toy store and partenered with ToysRus. Amazon utilized its retailing technology to build host the ToysRus Online store while also providing customer service, inventory mgmt, fulfillment and logistics services thru their state of art distribution centres. This was an advent of their journey where they could see this Infrastructre Services business model as new line of revenue. Amazon collected revenue from ToysRus on basis of total revenue earned thru their online services under shipping fees, Credit card fee and transaction fees