Table of Contents

Executive Summary

The report is focused on strategic information systems and the impact of the same on business operations. In a bid to gain a deeper understanding of the topic of discussion, the research resolved to use eBay as an online market place with strategic information systems. In the report, an insight into the impact of information systems strategy on decision making is given, especially for multinational organizations. The report starts by introducing the organization, describing its strategic alignment, and relating its business strategy and the IS. Equally, the report has captured important information on how the business strategy is aligned with resources, structure, and skills available. The study mentions important literature on the information systems strategy to gain a competitive advantage. To gain competitive advantage requires that a firm operates in accordance with its capabilities. Information systems strategy helps firms link their resources, capabilities, and strengths to business strategy. The report is informative on possible ways that eBay can promote sales and increase its market share.

Introduction

Information systems within an organization in business play a crucial role in the achievement of set goals and gaining of competitive advantage (Stair and Reynolds, 2015). Information systems enable an organization to collect information that is useful in strategic decision making. The alignment of business strategy and its IS results in the formation of an information systems strategy. The primary purpose of such systems is to offer support to management, especially when making critical decisions that affect business (Luftman, 2000). Companies that have established information systems strategies do relatively well in the market as compared to their counterparts. It is crucial to examine an organization in business and describe its information systems strategy. Equally, a critical evaluation of strategic alignment and how it affects the specific organization is necessary. An analysis of the alignment that exists between the chosen organization’s business strategy and information systems strategy can prove crucial (Pearlson and Saunders, 2013). There is a need to give a justification of recommendations that can help change the face of the information systems strategy for the company. In essence, the research will focus on the information systems strategy of eBay Inc. and how they can be improved for better service delivery.

Organization Overview and its IS Strategy

EBay is an online market place where an individual can purchase or sell items remotely. The company was started in the year 1995 by Pierre Omidyar and has since turned out to be a notable success in the e-commerce world. Operations of the company are heavily reliant on IT and hence the need for a comprehensive approach to the handling of data. The website is among the top sellers in the United Kingdom, indicating how crucial its strategy has been in gaining a competitive advantage (Pearlson and Saunders, 2013). It’s IT infrastructure supports customer-to-customer transactions as well as business to customer operations. As such, the platform is an invention that will stay, especially with increased use of the internet globally. It is crucial to note that eBay has a high number of customers with approximate traffic of over 25 million users per day. An appropriate information systems strategy can see an organization rise to glory within a short period. Inappropriate information systems can be misleading to managers and consumers, which leads to wrongful decision making (Luftman, 2000). Information on existing company products and other offers is important to customers within the market. The need for information necessitates the company to adopt strategic information systems.

The information system of the company is characterized by a centralized customer relationship management tool. The tool captures important data about suppliers and consumers that exist in the market. Through such initiatives, it is easier for the company to facilitate transactions from one end to another (Peppard and Ward, 2016). The customer relationship management tool is cloud-based, making it convenient for the company in many cases. People have resolved to use of the internet to conduct shopping on online platforms. One of the companies that have benefited from the initiative is eBay, whose sales have continuously grown in the recent past. Information storage is crucial for any business as it ensures proper record keeping for future reference (Friedman and McNeill, 2013). Customers in the market require a safe and trustworthy platform that can guarantee information security. EBay is well known for its strong capacity in ensuring data protection for all its clients. The fact that they are secure and convenient when it comes to shopping makes it have an upper-hand in the market. EBay has an advanced information system, which has projected the company above its competitors in the financial market (Pearlson and Saunders, 2013). The infrastructure that is in place to support e-commerce activities requires a huge amount of capital to set up. Such constraints within the market have also given eBay an advantage as compared to competitors.

EBay has hired staff that works online to ensure that issues that are raised by customers are worked upon. The company has captured attention of many customers globally to the extent of rising to the top, especially in the United Kingdom. Its IS system is well structured to promote the company’s operations. EBay applies the collected information to conduct an analysis of the consumer market and determine basic characteristics (Peppard and Ward, 2016). Data collected in the market is a resource that can influence decision making for the prosperity of the company and its operations. Online support for customers is also n advancement that has been captured in the strategic plan of the company. Such services convince and make customers loyal to a specific site. EBay is one platform that has managed to lure many customers transact on the site. The report explores the approaches that the company uses to align itself strategically in the e-commerce business. The company’s business strategy is geared towards becoming the best retailer online for various products (Teubner, 2013). EBay is appropriate for this research as it has a comprehensive information systems strategy that has helped it gain a competitive advantage in the market. Decisions within the company are made considering analysis from the information that has been collected through the company’s system.

Strategic Alignment

Strategic alignment refers to the manner that an organization is structured and linked to its strategy and business environment. In the event of developing strategic approaches, organizations are advised to come up with comprehensive ways that can relate the plan to business strategy. Failure to link the two can lead to failure in business, a matter that most originations want to evade (Trevor, 2018). Every policy or strategy being implemented within the business context must align its objectives with those of the business strategy. For instance, when a firm wants to implement a specific information system program, it has to consider cost constraints that are associated. This is because resources are limited, leaving the management with no option than to utilize the already existing ones. EBay has done relatively well in balancing between company resources and information system infrastructure for the company. Failure to align the structure and resources to the business strategy can lead to failure (Peppard and Ward, 2016). EBay is among the top companies that have ensured strategic alignment in its operations, with a view for promoting its market share (Trevor, 2018). Alignment is crucial as it helps an organization familiarize and utilize available resources, even though they are limited.

Strategic alignment incorporates the environment of the business, resources, and the structure of governance that is applied in day to day operations. There is a need for every business to conduct a strategic alignment analysis to establish whether operations are in accordance with the set objectives. In business planning processes, strategic alignment is essential as it saves time (Trevor, 2018). Time is an important resource in the business world, and the faster one can make a decision, the better it is for the operations of the company. As such, strategic alignment ensures that no time is wasted changing plans as a result of improper planning. Every step of the business must be subjected to review to ascertain its alignment to organizational values, resources, and objectives. EBay has its operations aligned with company values, mission, and vision statement. Equally, the company has employed a rigorous information system strategy that well fits the industry. In the event, the company has managed to save time on its operations globally. A strategic alignment plan promotes team spirit and the desire to achieve better results (Venkatraman, Henderson and Oldach, 1993). When a team is aware of the objectives, resources, and requirements of each member, there is a likelihood that they can get motivated and deliver their best. As a result, eBay has gained a competitive advantage in the market by ensuring that its employees are motivated through a comprehensive information systems strategy.

Strategic alignment can be sued during the business planning process to ensure the creation of goals and objectives for the business. A business must establish goals that its employees will work towards (Trevor, 2018). Failure to incorporate objectivity in goal creation will lead to automatic failure. Information systems play a crucial role in the process of goal creation. From the data that is collected, a business can analyze various attributes of the consumer market. In the event, one obtains essential information that influences the decision-making process. For instance, if the company notes a possible increase in sales of particular products, it is vital to understand the reason behind the increment. Big data is a phenomenon that has risen recently to help multinational companies plan their future. An organization such as eBay uses big data information to make decisions on companies to partner with for improved operations. Strategic alignment helps the management devise appropriate communication measures that can be used. Failure to strategically align the company strategy with its resources and objectives can lead to misappropriation of investment funds (Venkatraman, Henderson and Oldach, 1993). The execution process of any activity requires the strategic alignment of the available resources. For instance, one cannot execute a project without the necessary funds for the same. As such, the execution must be done in accordance with the set agreement or plan.

Information Systems Strategy and Business Strategy

EBay enjoys a wide share of the market, and there is a need to analyze the alignment between the business strategy and its information systems strategy. The company has a number of strategies that can be linked to its information systems strategy. The first strategy that the company applies is product-based shopping to lure many globally (Aummontha, 2017). In such a case, the website concentrates on marketing those products that are selling high on other online platforms. Sellers should also match their listing according to requirements by the online market place. The strategy aligns with the business strategy of making it easier for customers to locate products (Stern, 2014). The second strategy that the company has implemented is eBay guaranteed delivery. The online marketplace has been pushing to have its delivery system that guarantees the safety of products purchased by customers (Aummontha, 2017). It is through its information systems strategy that the company has managed to establish successful business strategies. For instance, a company is only listed as a seller on eBay if it can offer one day or same-day handling in case of anything. Equally, the organization or seller must offer quality shipping channels, which can guarantee the customer safety of the product. Sellers on eBay should have a formidable track record of handling various items on shipment. Such strategies have ensured that its business operations are in accordance with the resources and capabilities of the organization. Equally, the company’s growing emphasis on promoted listings has played an important factor in promoting its activities (Aummontha, 2017). Products that are advertised on the platform are given an upper-hand to sell, indicating the will of the site to promote more business through an integrated information systems strategy.

The strategies adopted by eBay are aligned to its business objectives, resources, and structure. For instance, the strong financial background for the company gives it a competitive advantage as it can run the costs comfortably (Bajgoric, 2018). The company eliminated the 14 day return period to one day or same-day return to help meet the expectations of the customers. As such, eBay employs strategic measures that are in line with company values and objectives. In essence, information systems strategies help organizations assess the relevance of the steps that are taken in decision making (Bajgoric, 2018). Decision making within multinational organizations should be based on merit and ethical standards to promote proper and meaningful relationships. The company’s operations are well aligned with resources, skills, and the environment. A business cannot plan for more resources than it can gather as it will lead to stalling or collapsing of the project. As such, company values, skills, resources, and environment must be in line with the business strategy laid. One of the most significant factors in business is to avail products for the online market that is growing daily (Bajgoric, 2018). EBay’s ability to establish an infrastructure that supports an online market place is an indication of alignment to business strategy.

Recommendations

The first recommendation that is necessary for eBay in its operations is to increase funding for information systems. With enough resources, the company can obtain infrastructure essential in promoting its business activities (Powell, 2018). The company operates in an industry that is reliant heavily on technology, which is usually capital intensive. When an organization allocates inadequate resources for the same, there is a likelihood that the company will be conservative, which can compromise the quality of services. Industries that are dependent on heavy technology require a lot of capital to acquire the infrastructure. EBay should consider increasing funding to information systems strategies that facilitate the improvement of technology that supports the online marketplace. On the other hand, enough finances to the IS can guarantee the company of proper goal creation and communication. Communication plays an important part in the operations of any organization (Schiborr, 2016). As such, investing in the right information systems strategy can prove a useful approach for the company to realize expansion. EBay Inc. is a multinational company with the ability to apply appropriate strategies to communicate globally (Powell, 2018). The capability can further be advanced by funding advanced technology in the organization. The extra funds can be used to improve and acquire new infrastructure that supports the online market place.

The second recommendation for the company is to promote innovation in a bid to match the changes in technology that can be notable in the market. Digital technology is prone to change or advance from time to time, which makes it necessary to improve the existing information systems strategy (Powell, 2018). In the process, the company should find ways that it can avoid imitation of products sold on its platform. Imitation makes it difficult for a client to determine the original product. Such situations make the customer contemplate purchasing an item for fear that it can be counterfeit. Innovation can help solve the problem of counterfeit products and imitations. This is because the company can devise a strategic way to brand its products for easier identification (Powell, 2018). The rapid rate of innovation required in the industry can address the issues of technological advancements within the information systems context. It is through uniqueness that the site can gain more popularity in the market. As such, it is proper for the company to employ advanced approaches in a bid to gain a competitive advantage (Powell, 2018). EBay should consider employing staff that are innovative and creative. In the event, the company can come up with differentiated approaches to glory in the industry.

EBay should consider using an integrated customer relationship management tool. The tool will enable them to store important information on their suppliers and customers globally. With such a pool of information, it is easier for the company to handle their customers in whatever part of the world (Neto, Bloemhof and Corbett, 2016). The systems should be improved to guarantee efficiency and convenience whenever required. A cloud-based CRM will prove helpful in the handling of the company’s information systems. Past records on sales can be traced with the application of a cloud-based CRM (Hasker and Sickles, 2010). The tool enables an organization to store data on sales, suppliers, employees, workers, and even shareholders. The data stored can prove helpful in the decision-making process within the organization. Some aspects need a through consumer market analysis before implementation. The aim is to gain a competitive advantage within the market and command a larger share of the market. Information stored in the CRM can be used to analyze consumer behavior in the online market (Neto, Bloemhof and Corbett, 2016). Such an analysis an help the company plan for its future and predict what is expected in the market. An advanced and efficient RCM is necessary for eBay to achieve international status in its e-commerce practices.

The concept of big data can prove helpful for eBay in its attempt to become a top online retailer. Big data involves techniques that are meant to analyze and interpret large sums of data. The data in question can be qualitative or descriptive, depending on how and where it has been collected (Schiborr, 2016). The aim of collecting such data is to analyze the characteristics that are notable among online users. Big data can be used by eBay to predict the future or analyze sellers that are doing well in the market. Equally, the application of the big data concept in an organization guarantees the management of systematic and organized storage of information. Such information can be used for future reference or during the decision making process. Security of information stored or collected during such transactions is a matter that has raised concerns in the recent past. Data theft can cost an organization its reputation (Schiborr, 2016). If a competitor company lands on big data information on eBay, there is a likelihood that it can use the data to gain a competitive advantage. In essence, eBay should apply the concept of big data to gain a competitive advantage in the market over the rest.

Conclusion

To sum it up, it is important to understand the role of information systems strategy in promoting operations of a company. The report focuses on eBay as an e-commerce platform that has embraced strategic measures to business operations. EBay is an online market place that allows sellers to list their products for consumers who purchase them remotely. It is important to note that information systems that a company uses are important in the decision-making process within the organization. Objectives that are set for the organization must be attainable and must be in accordance with the resources, skills, and personnel available. Strategic alignment in business helps ensure proper use of resources and save time. EBay can improve its operations and information systems strategy by embracing a more customer-oriented approach. Equally, more funding to the information systems can prove helpful in the event. EBay should always ensure strategic alignment in its operations for an increased market share.

References

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