Ebays Strategy Information System

Ebays dodging Information SystemEvery time, the digital technology is evolution. Electronic business (e-business) is unmatched of digital economic that grows up. The term used to describe the information placements and activitys that mount and drive business processes, most often using web technologies (The National B2B total Limited, unk forthwithn date). E-business has been implementation on Internet and the society since m all years. It is a novel way for companies and quite a little do business to daylight. The integration of a ships companys activities is seduce with e-business including products, procedures, service. It exist many business model on the Web as e-mall, portal, auctioneers, communities of interest or rate chain service provider (McKeown, 2003, rogue 220).The dissolve of this article will descriptive and analyse the realising the benefits of Strategy Information System (SIS) through an on-line business as eBay Inc. In 1995, Pierre Omidyar has created auction on-line for node-to-customer and business-to-consumer (Hsiao, unheard-of date). Today, the worldwide is auction leader. There is a hundreds of millions of spoilers and sellers that connect every day. The undertaking is going from strength to strength. In 2009, the revenue of organization exceeds more 8 one thousand million dollars (Jain, 2009, page 5). The article concludes with the examining of impact of goernment policy it.Strategy Information System (SIS)SIS adoptingSIS as a strategic IS/IT or matched information systems, represents a fundamental refocusing of the IS activities away from the previous back room attitudes towards the market place in which the organisation works (Pritam, 2010,Chapiter 2).The quarry of SIS provide increase efficiency the process automate existing information flows and operations that constitutes a sustainable and signifi piece of asst competitive edge (PEPPARD, 1993, page 13).Why they adopting SIS?Companies use SIS in order to try to do change the industry structure and on that pointby to disturb the competitive forces in a market. It enables to give a proud quality service, creates new product and saving cost thereby to obtain business competitive reinforcement oer their competition (PEPPARD, 1993, page 13).SIS for competitive advantageThe competitive advantage helps the company to maintain their efficiency and strategic position thereby decrease a competitive disadvantage and meet other strategic enterprise objectives (Phillips, 2005). Porter defined competitive advantage as growing fundamentally out of the value a firm is able to create for its buyers (Peppard, 1993, Chapter 3, page 54).Innovation strategyImplement electronic commerce is need strategies to counter these threats for companies. They should emphasize innovation, because innovation is the cardinal thing that is most difficult for other companies to imitate (McKeown, 2003, page 235). It is a new service including a new way to do business buy and sell real-time.EBay develop unique auction markets with the assistance of IS, it is a disruptive technology for shop locally.Auction of principle is the buyers enter competitive bids and sellers enter competitive asserts at the same time. The price a stock is traded represents the highest price that a buyer is impulsive to pay and the lowest price that a seller is willing to sell(Investopedia, unknown date).With Internet, the buyers can to introduce and sell more easily their product and capture large customer contrary auction classic. The sellers can know the modish news and information from all around the world in just a blink of time by access to internet (MengHan, 2007).People can start a business or to get rid of thing through eBays web localize. Internet constitutes a gain time. One of benefit of SIS is the eBay bringnt got neckcloth and saving cost. Moreover, it is the first on-line auction that constitutes an advantage on market.Differentiation through better servicesI n 2002, revenues of company decreased following an happening that loss of confidence between buyers and sellers. To remedy this eBay created a system that enables customers to rate their sellers. This step helped to improve consumer comfort, which is a key factor in e-procurement strategies (Troy, 2010).The system of eBay is strong, company use Greenplum to manage one kind of data (DBMS, 2009).EBay develop many services, softw be and tools for customers need and delivering value and solution to problemSkype an Internet communication offering, allowing people everywhere to make unlimited voice and video communication for free between the users of Skype software (eBay, unknown date).PayPal it is system that facilitates the transaction and security. EBay acquires an acquisition price of $1.5 billion. It is enables any individual or business with an email address to securely, easily and chop-chop send and receive payments online. PayPals service builds on the existing financial infras tructure of jargon aims and credit cards and uses the worlds most advanced proprietary fraud prevention systems to create a safe payment solution. (eBay, unknown date)Software Developer Kit (SDK) is an operation for the eBay API.Application Programmers Interface (API) is an active member of the eBay Developers program, offers eBay certified solutions to automate listing lifecycle processes. (Intechnic company, unknown date)The benefits of eBay Integration is integration of the eBay API will increase your revenue while lessen operating expenses, improving the efficiency and cost effectiveness of your eBay operations in all phases of the listing lifecycle. Furthermore, eBay API integration can also be used to quickly retrieve large amounts of information about other listings on eBay which can be automatically processed, analyzed, and presented to you in a report from which you can use to determine income opportunities. There is a multitude of additional applications and advantage s of eBay API Integration and Intechnic Corporation can create a modular, scalable solution tailored to your companys needs and goals. (Intechnic company, unknown date)EBay Tools as solutions to improve the use of eBay developing with Java and J2EE which simplify the buying and selling process by providing functionality for listing multiple items, creating templates for repeated use, inventory management, sales and account management, email tools, and financial reporting. (Chen, 2005)Solution for buyers via eBays website that are payment as e-learning (figure 2).Community around customer services as show Illustration 2. eBay strives to provide high quality customer service, with the help of many different technologies to provide online support, such as chat rooms, discussion boards, and frequently asked questions. (Chen, 2005)Every year, eBay improve the quality and customer service in developing or design tools and computer architecture. This notion links other strategy that is cu stomer-orientation strategy. The benefits are a available all time to support customers and a detailed customer service information can cut down on phone calls to the company.Cost leadership strategyThe firm offer the services at the lowest cost in the industry. Indeed, eBay offer to buyers and sellers to doing business on Internet with a bodily presence in the exchange is now no longer necessary. They dont pay to be present or transport. So, eBay provides virtual space and software tools and reduce their cost for people. (Hemmatfar, 2010)About eBay, there are not inventory since its customers supply the product thereby reducing their cost without logistics and supply.Growth strategy externalisation and accessibleThe base of business is founded by technology that have a lot of advantage and successful as Internet connecting all the people of the world very closely (MengHan, 2007), so technology facilitates the function of auction market.EBay Marketplace has a powerful online platfo rm for the sale of peachys and services and offers localized sites in the following markets as Asia Pacific, Europe, North America and Latin America (eBay, unknown date).In addition, the eBays pages are translated many languages as English, French, Spanish or Chinese that allows to be externalisation and accessible for many countries.Appropriate strategic alliancesThe firm establishes new business linkages and alliances with suppliers, customer, other companies or competitors for develop and perform their high software and services.Higher architectureThe eBay infrastructure is compound a fifteen thousand servers. This purlieu is a software-as-a-service. New features are deployed every two weeks to both(prenominal) core and international platforms. Starting with C++ and moving to Java, XML, and HTML, in half an hour and deploy it automatically to QA or stage it to production. Strong hopes to accelerate development to a monthly, rather than quarterly, cadence. Managing a rapidly-ev olving infrastructure to minimize the latency of process that end users, both buyers and sellers, experience is an everyday reality (MacFarland, 1996).For example, with the design a new architectural with Java technology and MSXML eBay have many benefits are a new architecture expected to handle growth in transaction volumes and increased number of registered users over the next 5 years and beyond-learning to eBay become a $3 billion dollar company. More than 25% architectural framework and design reuse helping to significantly speed development cycle. Moreover, perceptible improvement in application performance-faster, more efficient page loads and responses. (Marshak, 2003)EBays keeping the site up and running. In 1999, eBay was galvanized when a catastrophic systems failure blacked out the entire auction site for 22 hours. The company lost millions in transaction fees and billions in market value as investors dumped shares. Two results of the Big Crash remain paramount to this da y first, eBays realization that remaining up on a 24/7 basis is a mission-critical business imperative and second, the hiring of Maynard Webb as CIO. Every analyst consulted for this humbug acknowledged Webbs crucial business office in eBays evolution. (Hill, 2003)E-business strategies for value chainInternet value chain helps eBay to how use Internet in a company strategically (Figure 3)Impact of government policyIt is a set of responsibilities and practices exercised by the board and executive management with the primary purpose of providing strategic intent, or direction, ensuring that corporate objectives are achieved, ascertaining that risks are managed appropriately and verifying that the enterprises resources are used responsibly. This provides a degree of protection to the organization, its customers, suppliers and stakeholders (Chita, 2010)The company has developed a set of community policy in order to consistent and safe trading in the Internet based market. Every year, eBay constantly conducts reviews of its policies and user agreement and makes changes and adjustments. Some of the updates are routine and around of them are necessary due to information system issues. For example, in 2001, when the company had discovered a bug in its registration procedure, it reset the personalized settings for over 6 million of its customers. (Chen, 2005)In terms of consumer protection, eBay say we treat your information as an asset that must be protected and we use numerous tools (encryption, passwords, physical security, etc.) to protect your personal information against unauthorized access and disclosure. However, as you probably know, third parties may unlawfully intercept or access transmissions or backstage communications, and other users may abuse or misuse your personal information that they collect from the Site. Therefore, although we work very hard to protect your privacy, we do not promise, and you should not expect, that your personal information o r private communications will always remain private (eBay, 2007). For example, eBay changed its policies about some JavaScript functions used in online auctions for security purposes and has PayPal acquire as discussed above. (Chen, 2005)Moreover, eBay requires that all users be at least 18 years of age. The reason behind this policy is that in the past underage bidders have set bids on items that they never intended to purchase, and as minors they cannot be held legally responsible. (Chen, 2005)Much investment to avoid a financial loss of data if there is disaster. The system must be strong, reliable and efficient. For example, a security incident would reveal PayPal accounts from users. The firm must to use a methodology as underwrite Objectives for Information and related Technology (COBIT). It is a good year framework strategy to help organization Maintain and Develop a standard system of IT governance (GOESSLER, unknown date).The model is centered on the client. The structur e of employees is dedicated to customer service. The company is headed by the sellers and buyers. They are involved in the transaction. EBay plays a role as an informant and must have to find solutions to meet customer needs, adapting to customers. For example, eBay created a system to evaluate the actors to help sellers and buyers achieve recognition as good sellers those who deliver within the agreed-upon time frame or good buyers those Who Pay for Their order (Zara, 2008). Furthermore, it allows knowing the status and other details as you can listen in Figure 4. This system reassures them whether it is a buyer or seller or not reliable. The notation is made from the two previous players of the transactions.ConclusionStrategy information system gives to companies an opportunity to have a gain advantage and other benefits that improve their system, process and services as eBay case. The creating a competitive advantage results comes alignment strategy organizational information sy stems. Indeed, IS are inevitably associated with government policy, because they have an influence on access to a key resource information. The fancy comes in. The government companies must comply. eBay has tried to avoid policing its site for activities that violate local rules and instead has chosen to issue disclaimers and rely exclusively on its sellers to abide by local rules (Daniel, unknown date).Company must to assurer security of system en permanence as authenticating users, authorizing access, and enforcing security features or security process payment. In this eBays case, is in developing and improving software and digital infrastructure tools that lead to the creation of a safe, secure, information-rich on-line trading community. The companys strategy is to allow users to innovate using the tools that it provides, no matter of what they are buying or selling or where they are buying or selling it (Daniel, unknown date). So, good strategies ISs have contributed to eBay s long lasting, success and levy the position of leader in the global market.