One of the challenges that PayPal faces now that it has managed to overcome the polylingual obstacles is finding the best way to put this functionality in the hands of the business, so that they do not have to go through IT each time. How do you balance this need for responsiveness and flexibility versus IT's need to keep some degree of control to make sure everything keeps working with everything else? Provide some recommendations to managers who find themselves in this situation.
PayPal opted to deviate from industry standards and built its own custom technology that would better suit its needs. When is it a good idea for companies to take this alternative? What issues factor into that decision. Provide a discussion and some examples.
Although the new system has been quite successful, PayPal has chosen not to license this technology to others, forgoing a potentially important revenue stream given the lack of good solutions to this problem. Why do you think PayPal chose not to sell this technology? Do you really think this can be made into a strategic advantage over their competitors? How easy would it be for their competitor to imitate this accomplishment?
1. How to balance the need for responsiveness and flexibility versus IT's need to keep some degree of control to make sure everything keeps working with everything.
In order to ensure this balancing, an integrative internal control system would need to be designed, in which the user interface and process designed are designed to be automated supporting interactions and feedback systems thereby putting functionality in the hands of the business instead of having to go through IT each time (O'Brien & Marakas, 2009).
Some recommendations for managers finding themselves in this situation include developing strong internal control systems and feedback systems, or redesigning their software to incorporate faster efficient and effective polylingual functionality that does not require going through IT.
2. When it is a good idea for companies to deviate from industry standards and ...
The expert examines management information systems for PayPal. The industry standards in custom technology are determined.