Technological Changes in Organization

The dynamic nature of technology has been manifested at eBay since its inception in 1995. The organization as a pioneer of online an online auction and shopping was founded during the bubble. Since then, many changes have been witnessed in the technology. However, the pioneer giant online auctioning website has kept up with the changes that have occurred in technology. This has enabled the organization to operate in over thirty countries around the world (Bunnell, 2000, p. 2). This paper discusses the technological changes that have occurred at eBay since its inception by highlighting how eBay has utilized new and emerging changes to be able to stand out as the all time best online auctioneer.

Technologies used in Organization

The nature of online business demands that the operator keeps updated on the new development in the technology world (Preece, 2003, p. 15). EBay has enhanced the use of technology in its operations especially because the website deals with exchange of money through the internet. With its main subsidiary PayPal, EBay uses a number of technological applications that it has been changing as much as the technology itself changes. For instance, in the area of internet money transfer, eBay uses the most sophisticated technology tools to transfer money between the seller and the bidder through its famous subsidiary PayPal. EBay and PayPal's fraud management systems have hastened the development of improved fraud detection tools (Sinclair, 2007, p. 13).

The story of the is that of the curiosity of a one person who wanted to see if the internet could be used to create a perfect market (Cohen, 2003, p. 3). One of the notable achievements of eBay is that it has managed to distinguish itself as a market leader when it comes to using the internet to sell products and services. The technology behind the online auction has transformed the way businesses are done. Before the beginning of the internet era, selling a commodity to a person located hundreds of miles was very difficult. The costs related to such a transaction would sometimes exceed the actual proceeds that the seller anticipated from the transaction (Joyner, 2005, p. 43). However, with technology, it has become easy to sell the smallest item to a person located thousands of miles away. EBay has utilized the changes in technology to its advantage to the level where the organization has become a worldwide leader in online auctioning. The technology used at the organization allow sellers to list the items that they want to sell on the website and this information is seen by the potential buyers from wherever location they may be  (Simon, 2010, p. 32).

According to Nazario (2004), technological change is among the modern practices in computing that concerns the securing of the browsers, applications, and the network against attacks of any kind. As such, technological changes are mainly concerned with establishing mechanisms and protocols to ensure that other people who are using the same system do not harm or impede the transfer of information in a malicious manner. Additionally, technological changes are concerned with the provision of harmony on the matters that pertain to securing internet-based systems by raising the practice standards while focusing on security and privacy of the system (Blossom, 2011, p. 7).  Similarly, technological changes involve processes, activities, and mechanisms that work together to ensure that all the activities and transactions that are done through a system of networks maintain their integrity status and they are neither modified nor accessed without the authorization of their owners.

Because of the fraud that can occur in online auctioning, eBay has embraced the technology that allows the organization to verify the authenticity of the bidder and the seller using online auctioning software (Holden, 2006, p. 19). This came in the wake of increasing case of fraud where fraudulent people could place an item on the website as both the seller and the bidder, allowing the prices of the items to escalate beyond the normal price.

The issue of identifying the authenticity of items that are listed on the EBay website has drawn legal concern from the law enforcers (McLaughlin, 1999, p. 22). A number of stolen and illegal items could be sold through the website because of the anonymity of the seller and the buyer. EBay uses software that analyses all the items that are listed on the website at any one time to determine those items that have been labeled as stolen and stop the selling transaction through the website. Initially, the organization used a list or an inventory of stolen items that it had received from the authorities to check using a computer application to determine whether an item was genuine or stolen. Nevertheless, with the increasing number of items that are auctioned through the website, the organization moved to the online auction website that automatically checks the authenticity of item immediately it is placed on the auction (Peragine, 2009, p. 67).

To prevent people from changing the items that were sold through the website, the organization has teamed up with PayPal to offer online money transfer that is safe and convenient to both the seller and the buyer (Lucas, 2008, p. 11). The system allows for withholding the money into account until the bidder verifies that the item that he or she received was the exactly that was placed on the website. This technology has enabled the organization to reduce significantly the number of cases involving fraudulent sales where bidders were given fake items or even received no item at all after paying for it.  

According to Khosrowpour (2002, p. 9), the changes in technology provides numerous opportunities for organizations to communicate with their clients around the world. Nowadays most activities including marketing, advertisement, storage, and transfer of information among and between companies and individuals are done over the internet.  The internet can be described as a network of computers that constantly communicate messages from texts to photos and moving pictures as well as sound. However, the use of the technology to facilitate the transfer of confidential information such as online money transfer is under scrutiny because of phishing and hacking cases (Pfleeger & Pfleeger, 2011). As technology changes continue to inculcate in the activities of many organizations that do business online, more cases of insecurity to the information communicated through the medium are reported.  To this end, eBay has taken steps to ensure that the security of its systems is guaranteed through acquisition of new and secure technologies to manage its activities.

The use of the online transactions has evolved in many auctioneering companies, thanks to the changing technologies (Lorenzi and Riley, 2004, p. 30). At eBay, the buyer and the seller have technology tools and software that enable coordination of private online auctions. The sale of products through private auction is important to the growth at the organization since it allows for direct soliciting of bids from the sellers. The use of this technology has enabled EBay to cut down on the costs associated with online transactions by 10% to 20%. This is done together with other technologies that hasten the process of online private bidding such as the first-price sealed-bid auction form.

Auction Software

As a way of controlling the kind of transactions that eBay handles, the company uses auction software tools to manage online auctions. This is in line with the number of transactions that the organization handles daily.  As noted by Sinclair (2007, p. 24)), the auction software enables eBay to automate tasks such as, “image hosting, advertising, page design, bulk repeatable listings, feedback tracking and management, report tracking, and e-mail management.”  EBay is able to have attractive formats for its pages and manage thousands of auctions with the help of auction software. The technological changes have enabled the organization to remain a market leader in the business amid growing competition from other businesses that offer similar services.


The changes in technology have seen organizations move from one platform to the other. At EBay, some of the moves have been a result of the kind and nature of business that the organizations do. With the possibility of attacks and denial of service, eBay has always upgraded its system to new technologies to ensure the security of their systems. In addition, technological changes at eBay are aimed at strengthening the capacity of the organization to handle more transactions as the number of customers continues to increase. However, fraudsters are still able to find a way to circumvent the security technologies that are used at the eBay so that it is not so safer to assume that the kind of technology used is free from penetration.

However, this has remained the focus of the organization in its endeavor to provide efficient and effective services in the online auction. The processes of technological change are necessitated by new challenges and new technologies.  These changes are predominantly difficult to forecast and assess over time because new opportunities come out and the playing field keeps changing. Therefore, the process of technological changes must be incessantly adjusted to suit the manner in which things unfold.  Any technological change in the organization as big as eBay must therefore be well-thought and timely if the business is going to tap into the benefits of the emerging technologies.

Order now

Related essays