Case Study: Amazon and EBay

Case Study: Amazon and EBay
1)      In today’s world web oriented services are increasing day by day and internet giants like EBay and Amazon are adopting this methodology to strengthen up their business. The core purpose of web services is to enable machine to machine interaction within a network in such a way that it becomes easier for all the stakeholders to achieve their objectives. The element of information sharing is initiated in this scenario and organizations benefit a lot if this scenario of web services is implemented in a proper manner. The business value of web oriented services is enormous and organizations benefit a lot from this scenario in both the short and the long run. Therefore, it can be said that web service technologies provide a structure which is open in nature and through this new business opportunities are created.
2)      The benefits of web services to Amazon, EBay and their web partners are wide and varied and these organizations are benefitting a lot from this scenario. Amazon benefited a lot from this idea when they first launched their programmable web site and more than 50,000 programmers signed up. This open strategy is benefitting the organization as it results in boosting the sales of the organization. Similarly, EBay is also benefiting from this strategy and when EBay adopted this scenario more than 8000 members and organizations joined the network of EBay and more than 600 applications are developed by these programmers and organizations (O`Brien, 2006). On the other hand the developer partners are also benefiting through this strategy because they can have exposure and they can easily enhance their skills through these interfaces.

3)      There are certain challenges that are linked with the web service programs. The biggest challenge that organizations face is the cost of these programs and the cost of monitoring, altering and controlling is increased. Therefore, the business challenges are more towards cost and implementation of the programs.
O`Brien, J. (2006). Introduction to Information Systems . Mcgraw Hill.

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