Blog Entry: Interorganizational Systems

Article: Why iStockphoto embraced Google Gears

iStockphoto.com runs solely through the business of e-commerce. E-commerce is a type of interorganizational system because it links parties that buy goods and services with parties that sell goods and services (Gemino, Kroenke and Tingling, 2009, p. 217).  According to Gemino, Kroenke and Tingling (2009), there are three types of e-commerce companies: business-to-consumer, business-to-business and business-to-government (p. 217). iStockphoto sells stock photography, vectors, logos and audio tracks to both consumers and other businesses. However, iStockphoto uses the B2C (business-to-consumer) model of selling, i.e. a web storefront.  The system of e-commerce provides a competitive advantage to both parties involved in the transaction. By adopting Google Gears, iStockphoto has not only lowered their own operating costs, but also benefited the end-user—a win-win situation for both parties. Google Gears essentially has made their web storefront even faster, something that a consumer appreciates in an online store.

In a very assertive/decisive move on iStock’s end, they have announced that as of 2010, that they will no longer support Internet Explorer 6—however Kelly Thompson, (iStockphoto’s Chief Operating Officer) recognizes that as of 2010, IE6 will still be used and won’t go ahead with this.  On the iStock website, there are message boards to which users can post. This function allows iStock to keep in touch directly with their consumers and their contributors while maintaining and fostering the iStock community. If anyone has any problems—such as the announcement of IE6 support disappearing in 2010, iStock users can post on the message board. Direct interaction with customers/consumers/users in real time is an important function to have when operating an interorganizational system such e-commerce. If you use IE6, I highly suggest upgrading to Firefox or IE8 when it is released in March.