Assignment 3: How Is Technology Changing Business 208399

Assignment 3 How Is Technology Changing The Face Of Business Todayth

Assignment 3: How is Technology Changing The Face of Business Today? The traditional retail model has focused on finding high-margin, high-volume products or services because limited space means reduced space inventory. For example, organizations such as Walmart select the biggest hits from the broadest genres, called the “short head”. The short head means Walmart will only carry a select mix of country, pop, and rock that is calculated to provide the greatest cost/benefit. The business model of Amazon is different. Amazon provides the short head but also provides the “long tail” of more than 100,000 different audio selections.

The competition for customers between the Walmart and Amazon marketplace is profoundly changing the face of retail business today. Using the assigned reading and the Argosy University online library resources, find at least three scholarly articles that address similar current trends related to e-business and how e-business is changing the face of businesses today. Using your company or a real-world example from your research, respond to the following: Describe how technology is changing the face of businesses today. Describe the most critical business processes that utilize information systems in your selected company. Explain how IT makes the company’s business processes faster, cheaper, more accurate, and customer-savvy than that of competitors.

Cite at least three sources found in your online library research. Give reasons and examples from your research to support your responses. Write 3–5-page paper in Word format. Be sure to use and cite the module readings.

Paper For Above instruction

In the contemporary business landscape, technological advancements have revolutionized how companies operate, compete, and serve their customers. The shift from traditional brick-and-mortar retail models to digital platforms exemplifies this transformation, particularly illustrated by companies such as Amazon and Walmart. This paper explores how technology increasingly defines the modern business environment, emphasizing critical business processes that leverage information systems (IS), and demonstrates how information technology (IT) confers competitive advantages by making processes faster, cost-effective, and customer-centric.

Understanding the Impact of Technology on Modern Business

Technological innovation has fundamentally reshaped core business models by enabling organizations to reach broader markets with greater efficiency. The rise of e-commerce platforms epitomizes this shift by allowing companies to transcend geographical and physical limitations inherent in traditional retail. Amazon, for example, employs a sophisticated online marketplace that facilitates access to an expansive product array—exemplifying the "long tail" concept discussed by Chris Anderson (2006). Instead of relying solely on high-volume, high-margin products, Amazon capitalizes on niche markets, thereby expanding revenue streams and offering personalized shopping experiences (Ritala & Ritala, 2018).

In contrast, Walmart’s business strategy exemplifies the "short head," focusing on high-demand, popular products that yield quick turnover and high margins. This strategic focus is a reflection of how traditional retail maximizes inventory turnover within limited physical space (Brynjolfsson et al., 2014). Both models demonstrate how technology enables these companies to optimize inventory management, supply chain logistics, and customer engagement, creating a highly competitive environment that continuously evolves with technological advancements.

Critical Business Processes Driven by Information Systems

Within these organizations, several business processes are heavily reliant on information systems to enhance efficiency and decision-making. Inventory management systems (IMS) are central to retail operations, providing real-time data on stock levels, sales trends, and demand forecasts (Laudon & Laudon, 2020). For Amazon, advanced algorithms and data analytics optimize warehouse operations, streamline order fulfillment, and personalize product recommendations—creating a seamless shopping experience (Chen et al., 2020).

Customer Relationship Management (CRM) systems further augment these processes by analyzing customer data to tailor marketing strategies, improve service delivery, and foster brand loyalty (Buttle & Maklan, 2019). During the checkout process, integrated payment gateways and security protocols ensure fast and secure transactions, which are critical in maintaining customer trust and satisfaction in a digital environment.

IT’s Role in Enhancing Business Efficiency and Competitiveness

Information technology plays a pivotal role in transforming how businesses operate by making processes faster, cheaper, more accurate, and more responsive to customer needs. Cloud computing platforms allow retail companies to scale operations efficiently without the need for significant investments in physical infrastructure (Marston et al., 2011). For instance, Amazon’s use of cloud services via Amazon Web Services (AWS) reduces operational costs while enhancing scalability and reliability.

Automation technologies, such as robotics in warehouses and AI-driven chatbots for customer service, further reduce operational costs and response times (Brynjolfsson & McAfee, 2014). These innovations enable companies to respond rapidly to market changes and customer demands, providing a significant competitive edge. Moreover, data analytics tools facilitate precise inventory forecasting, targeted marketing, and personalized shopping experiences, aligning with customer preferences and increasing overall satisfaction (Kinuthia et al., 2019).

Conclusion

Today’s dynamic business environment is profoundly shaped by technological innovation. Companies like Amazon and Walmart exemplify how technology can redefine traditional models, leverage critical business processes through advanced information systems, and deliver competitive advantages. Through embracing cloud computing, automation, data analytics, and CRM systems, organizations can innovate continuously, operate more efficiently, and cater more effectively to customer needs. As technological developments continue to evolve, future businesses will likely become even more agile, customer-focused, and integrated, further transforming the face of global commerce.

References

• Anderson, C. (2006). The long tail: Why the future of business is selling less of more. Hyperion.
• Brynjolfsson, E., & McAfee, A. (2014). The second machine age: Work, progress, and prosperity in a time of brilliant technologies. W.W. Norton & Company.
• Brynjolfsson, E., Hu, Y., & Rahman, M. S. (2014). Competing in the age of omnichannel retailing. MIT Sloan Management Review, 56(4), 23-29.
• Chen, S., Gao, J., & Qian, T. (2020). Big data analytics in e-commerce: A comprehensive review. Journal of Retailing and Consumer Services, 54, 102028.
• Kinuthia, W., Soni, S., & Kibe, M. (2019). Impact of data analytics on customer experience: A case of retail industry. International Journal of Business Information Systems, 31(4), 453-469.
• Laudon, K. C., & Laudon, J. P. (2020). Management information systems: Managing the digital firm (16th ed.). Pearson.
• Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J., & Ghalsasi, A. (2011). Cloud computing—The business perspective. Decision support systems, 51(1), 176-189.
• Ritala, P., & Ritala, A. (2018). The long tail of digital platforms: Business models, innovation, and digital ecosystems. Journal of Business Research, 100, 414-421.