In: Operations Management
which tools for collaboration and teamwork are used in Amazon?
Solution-
Collaboration is one of the most important tools used within an organization. Without collaboration, a business would not survive. The fundamental breakdown of this term is teamwork. It means working together as a group to achieve a common goal using repetition and feedback efficiently and effectively. Amazon uses this every day from the time a product is ordered, all the way up to after that product is delivered.
Amazon is an open system. They are continually interacting with the environment whether it’s with employees, customers, or even other businesses. The only way Amazon is capable of such high collaboration is through e-communication. Amazon uses the internet to facilitate every aspect of running their business. Amazon is strictly an online retail business, so they use e-commerce which is the electronics of buying and selling of goods over computer networks. Customers are able to go online and purchase whatever they are looking for. Amazon then gets the order where employees manage the production and delivery of the products. Once the product is delivered, Amazon gives customers the opportunity to go online and provide their feedback. The information about the reaction to the products or services gives Amazon the feedback they need to either continue what they are doing, or change it up.
Amazon also uses their own algorithms called Item-to-Item Collaborative Filtering. This recommendations link on their website matches others products based on the customers shopping cart and purchases. This helps narrow down each customer’s specific interests. Through experimentation, Amazon determined that “recommendation algorithms provide an effective form of targeted marketing by creating a personalized shopping experience for each customer” (Linden et al. 79). The Item-to-Item filtering is a great form of customer collaboration.
A third way Amazon shows evidence of collaboration is through their order fulfillment services. This service gives other businesses and even competitors the opportunity to use Amazon’s warehouses to store and ship their own inventory. So instead of Amazon communicating directly with customers, they communicate with other businesses to insure that their products are being stored and delivered in a timely fashion. This FBA service saves time and allows other businesses to grow. Amazon is simply all about being a customer-centered business.