unlocking & sharing business databases amazon, ebay and google case study

Unlocking & Sharing Business Databases– Amazon, Ebay and Google.

Prashanth.CSasikumar. SHallin Shano

Vaidehi. RAnne Helena. D

• Amazon Web Services.• Opened its Data Vaults in 2002.• Data available to 65,000 developers, businesses and other

entrepreneurs.• Transition from “Earth’s Biggest Bookstore” to “Big piece of

software available over web”.• 1/3rd of beneficiaries – developing software tools that help

800,000 Amazon’s sellers.• Examples – ScoutPal and SellerEngine• ScoutPal – service turns mobile phones into barcode

scanners.• SellerEngine – helps merchants on main site to upload their

inventory, check prices and automation of adding new listings.

• Opened access to some of its search result data.• Unlocked access to its desktop and paid search products.• Developers – access to 1000 search results for free.• Jan 2005, opened Adwords - paid search service.• Search service for outside applications.• Allowed marketers to automate their Google Ad campaigns.• Online businesses operate as open- ended software

platform.• Accommodate 1000s of other businesses – symbiotic

products and services.• Example – Google Adwords, Google Adsense.• Google Adsense – Revenue reports generated by

advertisers if user clicks on their ads or visit their website.

• 2003, $3 Billion company’s database was opened.• Technorati’s gained access to 33 Million weekly auction

items.• Data available to 15,000 registered developers, businesses

and other entrepreneurs.• Emergence of 1000 new applications.• Sites of Channel advisor, Marketworks and Vendio offer

auction listing software to Ebay.• Sellers using Ebay’s APIs became 50% more productive.• Example – SuperPawn.• SuperPawn – uses Ebay’s APIs to automatically upload its

items from its physical store to Ebay.

Question 1What are the business benefits to Amazon and eBay of

opening up some of their database to developers and entrepreneurs?

Do you agree with this strategy? Why or why not?

Business Benefits – Amazon & Ebay• Experimental R&D for free – no expense for company.• Expansion of company’s online footprint.• Felicitates building moneymaking websites.• New online shopping interface.• Innovative services for 1000s of Amazon, Ebay and

independent sellers.• Increased Sales for the company.• Development of software tools that help the company’s

customers.• Automation of links between online business and

applications.• Enhanced Market space for Sellers and buyers.

Agreement to this strategy?• It’s a big YES!

Reasons:

• Usage of Barcode scanners and ScoutPal by Amazon improved its business.

• Open source DB helps with Business R&D. Ex- Google Adwords and Google Adsense.

• Generated Profits and reduced costs for the companies.• Felicitated growth of other business.• Triggered innovation and improved productiveness among

developers.• Shift from direct buying-selling to E-Business. Ex- Ebay.

Question 2What business factors are causing Google to move

slowly in opening up its database? Do you agree with its go- slow strategy? Why or why

not?

Business Factors for Go-Slow Strategy of Google

• High risk involved in open sourcing of DB.• Possibility of competitors to takeover the market share of

Google.• Stage of assessing the potential market for open sourcing DB

resources.• Data integrity and data security issues.• Reduction of reputation or spoiling the brand image of Google.• Fear of compromising data and access to hackers.• Possibility of leakage of sensitive data.

Agreement to Go-Slow strategy of Google.

• It’s a Big Yes!

Reason:

• A low risk strategy.• Play safe strategy - Can go back to traditional strategy in

case of security and data issues.• Involves careful assessment of market potential before Go-

live.• Reputation of brand can be saved.• Ensuring sensitive data integrity.

Question 3Should other companies follow Amazon and eBay is lead and

open up some of their databases to developers and others? Defend your position with an example of the risks and

benefits to an actual company.

Open Sourcing & Unlocking of DB?

Yes, other companies should follow Amazon and eBay and open up some of their databases to developers and others.

Business Benefits:• R&D for free – no expense for company.• Increased Sales for the company.• Enhanced Market space for Sellers and buyers.• Expansion of company’s online footprint & E-Business

development.• Development of software tools and innovative services.

Business Risks:• Leakage of sensitive data.• Data integrity and data security issues.• compromising data and access to hackers.

Thank You