Ministry of Higher Education & Scientific Research

Erbil Polytechnic University

Erbil Administrative Technical College

Department: Technical Business Management

Stage: 4 - B

Managerial Information System

Case Study of eBay Management

Information System

Supervisor:
Mr. Sahd Hadi

Prepare:
Sarwar Saman

2022-2023

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 Table of Contents
Introduction..................................................................................................1

Ebay’s Management Information System (MIS)........................................2

Ebay's Strategy Information System............................................................3

Properties ebay information system............................................................4

Case Study eBay Information System Management..................................4

Information System Concept Study Case eBay.........................................5

Web based Information Systems: eBay Advantage.....................................6

Requirements Hardware & Software...........................................................6

Recommendations for Improving the System.............................................7

Conclusion....................................................................................................7

References....................................................................................................8

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 Introduction
Information systems within an organization in business play a crucial role in the

achievement of set goals and gaining of competitive advantage . 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 .

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 . 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.

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 Ebay’s Management Information System (MIS)
Technology changes over time. E-commerce, also known as E-business, is one of the main
form of purchasing goods and services, other than traditionally walking into a store and purchasing
an item with physical cash. The term is used for describing the process of buying and selling goods
and services on the internet using a portable laptop, desktop, tablet or a smartphone. In other words,
E-commerce creates online business with the availability of information and communication
technologies (ICT) and other internet resources. This form of business has been in works 1991 with
the internet open a space for commercial use. The combination of company’s services and products
is establish with e-commerce when the seller, retailer or manufacturer makes their business
available to the public or to customers for purchase. Businesses are basically providing products
and/or services in return for monetary gain.

Ebay is one of the largest, if not the largest online international marketplace. It was found by Pierre
Omidyar in 1995, currently runs by Devin Wenig, an American business expert, and president and
CEO of eBay. The e-commerce giant and auction leader’s headquarter is located in San Jose,
California and has over 12,000 employees globally. This put eBay Inc at a market place value of
$42.33 billion, which was made through consumer-to-consumer (C2C) and business-to-consumer
(B2B) online sales. Being that big and successful brings no surprise, it has been confirmed that
eBay sees more than 2 billion transactions per day.

As for eBay’s server, the company took on a virtual flash-based approach with over 100
terabytes of flash memory over a VMware virtual server. This flash storage provide support for
eBay’s Internet Small Computer System Interface (iSCSI) and use over 10Gbit Ethernet for
transmitting Ethernet frames. Ebay do use Java for it’s server-side infrastructure, along with an
Oracle Database.

On the client-side, sellers and buyers may use just about any network enabled device to connect
with eBay. That include tablets, smartphones, laptops and desktops. And the Ebay user interface can
be viewed on all operating systems (OS) -Android, iOS, Windows, Linux and Mac OS. The user
experience varies from devices as on the mobile application, buyers are alerted when an item is near
ending, when you’re outbid, when you won at item, and whenever the seller accept an offer. Buyers
are also notified when an item is shipped and incoming messages from sellers. On the other end,
sellers are alerted when an offer is made, every bid that is made, if the buyer paid and every time an
item is purchased. Ebay monitor all financial transactions, dialogues and listed item from behind the
scenes.

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After a buyer locate a specific item they’re interesting in, they are provided with several
options:

1. Watch the item, then come back later to “Buy it Now” or watch as the item ends so they can
“Place a Bid”

2. Place a bid and oversee whether or not another bidder will outbid you. If this option is available,
then the seller is willing to let the bidders decide what the final price of an item, but at times, there
might be a restriction attached. The Reserve price policy states that the amount of your reserve price
isn't shown to your bidders, but they will see that your listing has a reserve price that has not been
met. The reserve price isn’t met and time ran out, then the seller doesn’t have to sell the item and
will relisted it by a process called “Second Chance Offer". Ebay also charge a extra fee to use the
reserve feature.

3. Buy it Now by adding the item to the online shopping cart. At fixed price, which is the “Buy it
Now” price the seller may be willing to accept an offer if the buyer offers a price lower than the
“Buy it Now” price.

4. Make an Offer -not all sellers offer a space for negotiation.

Ebay's Strategy Information System

Strategic Information Systems (SIS) combine the ideas for making potentially winning business
decisions and ideas for controlling Information Technology (IT) to execute the decisions. Ebay’s
success demonstrates the strategic advantage of the first mover, which is an organization that is the
first to offer a new product or service. Basically, an mobile-based system that give a company
competitive advantage is a Strategic Information System. One example that is considered a
Strategic advantage of the first mover is Superior Brand Name. This enables the company with the
competitive advantage to potential be the leader in a specific industry or a combination of many. In
order for an information system to be an strategic information, one of the conditions is that the
information system must serve an organizational goal rather than simply provide information.

Ebay developed a unique auction system that runs in conjunction with their Information System.
The main purpose of auction is for buyers to enter bids, as well as making offers to the sellers. The
item up for sale states the highest price the buyer is willing to pay for a particular item and the
lowest price is what the seller is willing to take for that item. An example of an auction is the sale of
a FiiO Q1 Portable headphone amplifier & Native DSD DAC Mark II to the highest bidder. With
the presence of the internet, buyers all around the world can simply sell their products and gain a

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 customer base with the click or tap of a button. On Ebay, sellers can list used, new, refurbished and
non-working products. I you to get rid of something that might be useful to someone, then list the
item(s) on eBay. A small fee will be applied when the item do get purchased. What also makes this
online e-commerce business different from traditionally stores is that there is no inventory cost.
Furthermore, it is the first mover in online auction that creates a competitive advantage on the
market.

Properties ebay information system

eBay's information system has several important properties that enable it to function effectively:

1. Scalability: eBay's system must be able to handle large volumes of traffic and data as it is one of
the largest e-commerce platforms in the world. The system is designed to scale up or down
quickly based on demand.
2. Security: eBay's system must be secure to protect user data and transactions. It uses encryption,
firewalls, and other security measures to keep user information safe.
3. Reliability: eBay's system must be reliable to ensure that transactions can be completed without
any interruptions. The system is designed to be highly available and has redundancy built-in to
ensure that data is not lost.
4. Flexibility: eBay's system must be flexible to accommodate changes in the marketplace and user
needs. The system is designed to be modular so that it can be easily updated and modified as
needed.
5. User-friendly: eBay's system must be easy to use for both buyers and sellers. The system is
designed to be intuitive and user-friendly, with features that are easy to navigate and understand.
6. Analytics: eBay's system uses analytics to provide valuable insights into buyer and seller behavior,
market trends, and more. This data is used to improve the platform and provide better experiences
for users.

Case Study eBay Information System Management

eBay is an online marketplace that connects buyers and sellers worldwide. The company was
founded in 1995 and has since become one of the world's largest e-commerce platforms, with over
185 million active buyers and 20 million active sellers. eBay's success is largely attributed to its
efficient and effective information system management.

eBay's information system is based on a highly scalable, service-oriented architecture that enables it
to handle large volumes of data and transactions. The company uses a combination of in-house and
third-party software solutions to manage its operations, including customer relationship
management (CRM), inventory management, payment processing, and fraud detection.
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 One of the key features of eBay's information system is its search engine, which allows buyers to
quickly and easily find the items they are looking for. The search engine uses a complex algorithm
to rank items based on their relevance to the search query, taking into account factors such as the
item's title, description, price, and seller rating. Another important component of eBay's information
system is its feedback system, which allows buyers and sellers to rate each other based on their
experiences. This system helps to build trust between buyers and sellers, and it also provides
valuable data that eBay can use to improve its services.

eBay also uses a range of analytics tools to monitor its operations and identify areas for
improvement. For example, the company uses data analytics to track customer behavior and
preferences, allowing it to make personalized recommendations and offer targeted promotions.

In addition to its online marketplace, eBay has also expanded into other areas, such as ticketing,
classifieds, and shipping. To manage these operations, the company has developed specialized
information systems tailored to each business area.

Overall, eBay's information system management has been critical to its success as an e-commerce
platform. By leveraging technology to optimize its operations, eBay has been able to provide a
seamless and efficient buying and selling experience for its users, while also achieving impressive
growth and profitability.

Information System Concept Study Case eBay

1. What are the advantages of eBay’s hybrid shopping experience vision for the customer?

Nowadays there’s a lot of people who buy product from online vendors or online shop via their
smartphone. Maybe because its easier, cheaper and offer a great selection of goods. John Donahoe,
eBay’s new CEO realized that the increased use of mobile devices was blurring the lines between
online and offline shopping so he created eBay’s hybrid shopping experience. With this, eBay’s
provide it’s customers with the ability to shop wherever they want, however they want, for the best
price, and with the greatest convenience. Furthermore, the company’s customers have more choices
than ever before, and many of those choices are relevant to the customer’s location. We can scan
bar codes, QR codes, etc to just automatically put the goods into our wishlist or show us the detail
information of that product. We can get special offer from our local shop that detect our location if
we’re close with that shop. We can find nearest and suggested place to shop based on our locations
or past deals.

2. What are potential disadvantages of eBay’s hybrid shopping experience vision for the customer?

Sometimes people have a problem with the internet connection (or the gadget problem), so they’re
not able to feel the convenience of shopping online. In some case, eBay’s hybrid shopping
experience can also add on extra cost on the product by having to pay for shipping. We won't be
able to compare products in person, even though there’s a comment or rates or reviews of the
product, it still feel unsatisfy if we cannot look or touch or feel the products by ourself, sometimes
it's always best to make comparisons in the store.

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 Web based Information Systems: eBay Advantage
An information system can be defined as a software system that captures, transmits, stores,
retrieves, manipulates, or displays information, thereby assisting people, companies and
organizations or other software systems. Information systems have been supportive to banks when
they are processing payments, governments in collecting taxes, supermarkets in stocking their
shelves and the list continues to various sectors. Companies and organizations offer goods and
services to customers to make money. In the process of offering products, most organizations
accumulate huge volumes of data. Therefore, these data must be stored, managed and processed
since it plays a vital role in the organizations. Web-based information system uses Internet web
technology for conveying information and services to its users. It is a software system and is used to
publish and maintain data by hypertext principle. Web-based information system is the combination
of one or more web applications, and specific functionality-oriented components. Basically, in this
type of information system, web browser is used as a front end and all the databases are used as a
back end. In this case, eBay forms the bases of this discussion.

eBay is the worldwide web-based online marketing site where buyers and sellers come together to
trade. It starts with the seller posting the item they are selling on eBay. Online auction is done, the
bidding process opens at a price the seller specifies. Bids are then placed by the buyers on the item
until the listing ends and the buyer with the highest bid wins. Also, there is an option of buy it now
listing, where the first buyer willing to make a purchase according to the seller specified price gets
the item . eBay is an web based information system where buyers and sellers interact to do trade.

Requirements Hardware & Software

Server-Side Hardware Requirements
Hardware is vital to the server-side to ensure that the information system is functioning
properly and always updated according to the current technological dispensation. For eBay system,
the Server-side must have hardware like a computer system for maintenance and update of the
system. Other hardware may include devices for internet connection to enhance communication
between employees of the company and customers. Power backups are also necessary to avoid
power breakdown which could cause inconvenience.

Server-Side Software Requirements

The software used on eBay’s server farms varies. This is because eBay is huge and offers a
lot of services which has enabled it to accommodate a wide range of software needs. Concerning

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the operating systems, any of their servers is configured to run any version of Windows server. For
web server software, there are many different options that could fit it .

Client-Side Hardware Requirements

Here, the device required is not much or complicated since it only need to have a capability
to run the popular web browsers. Therefore eBay can be accessed from devices like a desktop or
laptop computer, tablets, and Smartphones. The most recommended is a device that has a minimum
of an Intel Core Duo Processor or equivalent to be able to access eBay. Also for streaming, eBay
recommends an internet connection speed of more than 900Kbits/sec to stream a video.

Client-Side Software Requirements

eBay can be accessed through most of the browsers available as long as they have the
capability to stream a video. eBay recommends a browser that supports HTML5, such as the latest
version of Internet Explorer, Chrome, Microsoft Edge or Opera. As for operating systems, eBay
recommends Windows 7 or Mac OS 10.7 and their newer versions .

Recommendations for Improving the System

The following recommendations for improvement can be incorporated in the eBay information
system.

First, eBay needs to improve by paying attention to the design and layout of its site. This is because
the site pages are cluttered, confusing, and idle. This improvement could improve the experience of
everyone shopping on the site.

Second, eBay needs to look into the labeling, categorizing, and photographing of the products
posted. Most of the products are poorly labeled, categorized, and photographed, hence making it
difficult for buyers to find the product needed since they need to search longer to find it.

Conclusion
overview of eBay's Management Information System (MIS) and Strategic Information
System (SIS). It explains how eBay's e-commerce platform operates, with a virtual
flash-based approach, Java for server-side infrastructure, and an Oracle database. The
text also describes how eBay's auction system runs in conjunction with its Information
System, allowing buyers from around the world to purchase new, used, refurbished,
and non-working products. Additionally, the text highlights eBay's success,
demonstrating the strategic advantage of the first mover, as well as the importance of

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 an information system serving an organizational goal to be a strategic information
system.

References

PDF

1. Daniel Marshall and Chukwunwika Okonta, (Ebay’s Management Information System (MIS))
Available At: https://www.studocu.com/row/document/saudi-electronic-university/principles-of-
management/ebay-management-information-system-mis/11078950 ) Accessed On ( 16/4/2023 )

2. charista keiko, (Information System Concept Study Case eBay) Available At:
https://www.academia.edu/9487417/Information_System_Concept_Study_Case_eBay ) Accessed
On ( 16/4/2023 )

Website [Accessed On ( 16/4/2023 ) ]

1. https://studyresearchpapers.com/web-based-information-systems-ebay-overview-and-comparative/

2. https://edubirdie.com/examples/analysis-essay-on-ebay-as-an-information-system/

3. https://www.ivoryresearch.com/samples/information-systems-strategy-analysis-of-ebay-company/