Strategy information system (sis) of ebay

Pages: 12 (2965 mots) Publié le: 24 mars 2011

Every time, the digital technology is evolution. Electronic business (e-business) is one of digital economic that grows up. “The term used to describe the information systems and applications that support and drive business processes, most often using web technologies” (The National B2B Centre Limited, unknown date). E-business has been implementation on Internet and the societysince many years. It is a new way for companies and people do business today. The integration of a company's activities is establish with e-business including products, procedures, service. It exist many business model on the Web as e-mall, portal, auctions, communities of interest or value chain service provider (McKeown, 2003, page 220).

The purpose of this article will descriptive andanalyse 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 customer-to-customer and business-to-consumer (Hsiao, unknown date). Today, the worldwide is auction leader. There is a hundreds of millions of buyers and sellers that connect every day. The undertaking is going from strength tostrength. In 2009, the revenue of organization exceeds more 8 billion dollars (Jain, 2009, page 5). The article concludes with the examining of impact of government policy it.

1. SIS adopting

SIS as a strategic IS/IT or competitive information systems, “represents a fundamental refocusing of the IS activities away from the previous back room attitudes towards the market place in which theorganisation works“ (Pritam, 2010,Chapiter 2).
The objective of SIS provide increase efficiency the process automate existing information flows and operations that constitutes a sustainable and significant competitive edge (PEPPARD, 1993, page 13).

Why they adopting SIS?

Companies use SIS in order to try to do change the industry structure and thereby to disturb the competitive forces in a market.It enables to give a high quality service, creates new product and saving cost thereby to obtain business competitive advantage over their competition (PEPPARD, 1993, page 13).

2. SIS for competitive advantage

The competitive advantage helps the company to maintain their efficiency and strategic position thereby decrease a competitive disadvantage and meet other strategic enterpriseobjectives (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 strategy:

Implement electronic commerce is need strategies to counter these threats for companies. So, innovate their structure system is necessary in order to will be difficult to imitate by otherfirms (McKeown, 2003, page 235).
EBay is the first on-line auction that constitutes an advantage on market. It is a new service in market that is a disruptive technology for physical shop. Auction of principle is “the buyers enter competitive bids and sellers enter competitive offers at the same time. The price a stock is traded represents the highest price that a buyer is willing to pay and thelowest price that a seller is willing to sell“(Investopedia, unknown date).
With on-line support as eBay, buyers can to introduce, sell more easily their product and present to the all world contrary auction classic. Concerning, sellers “can know the latest news and information from all around the world in just a blink of time by access to internet” (MengHan, 2007). Moreover, household can starta business or to get rid of thing through eBay‘s website.
So, eBay is new way to do business: buy and sell real-time.

Differentiation through better services and tools

In 2002, revenues of company decreased following an incident 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...
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