CHAPTER 8 INTERORGANIZATIONAL AND GLOBAL INFORMATION SYSTEMS

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CHAPTER 8INTERORGANIZATIONALAND
GLOBALINFORMATION SYSTEMS
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Definition of Interorganizational Information
System

• Supports information flows between two or more
  organizations
• Strategic impact of IOSs
• Networks
• Private (VANs)
• Publicly accessed

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Characteristics of IOSs

• Sponsor participant relationships
• Forms of participation
• Submit request receive output
• Access to data storage and processing resources
• Use capabilities of IOS

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IOS Response to Business Pressures

• reduce the costs of routine business
  transactions
• improve the quality of the information flow by
  reducing or eliminating errors
• compress cycle time in the fulfilment of business
  transactions, regardless of geographical distance
• eliminate paper processing and its associated
  inefficiencies and costs
• make the transfer and processing of information
  easy for users

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Types of Interorganizational Systems

• Global systems
• Electronic data interchange (EDI)
• Electronic funds transfer (EFT)
• Extranets
• Shared databases
• Integrated messaging

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Global Information System

• Who Uses Global Systems?
• Multinational Companies
• International Companies
• Virtual Global Corporations
• Core business activities depends on
• Goals
• Basic strategies

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Goals for International Activities

• International sales
• International production and sales
• International product development, production,
  and sales

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Basic Strategies

• Multinational
• Global
• International
• Transnational

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Information Architecture for IOSs
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Virtual Global Corporations

• Each partner brings its core competence
• Full utilization of resources
• Opportunism
• Spanning boundaries between organizations
• IT support

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Benefits ofGlobal Information System

• Effective communication at a reasonable cost
• Effective collaboration with groupware software,
  Group DSS, extranets, and teleconferencing devices

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Security and Technical Issues

• Technical Issues
• Technical standards
• Software
• Hardware.
• Documents
• Data accuracy

• Security
• National
• Organizational
• Personal

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Sovereignty

• National (use domestics products)
• Economic (data to be processed within a country)
• Cultural

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Electronic Data Interchange (EDI)

• Components of EDI
• Data formatting standards
• EDI translators
• Networks
• VANs
• Internet

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Order-delivery CycleWith and Without EDI
Without EDI
With EDI
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Benefits and Limitations of EDI

• Benefits
• Speed and volume
• Accuracy
• Collaboration with business partners
• Profit
• Disadvantages
• Cost
• Customization of standards

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Electronic Funds Transfer (EFT)

• transfer of money to and from financial
  institutions using telecommunication networks
• may be considered as an IOS, or a global system
• fast - reduces delays associated with sending
  hard-copy documents and it eliminates returned
  checks
• security issues

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Extranet

• A network that links business partners to one
  another over the Internet by providing access to
  certain areas of each others corporate intranets

• Components
• Intranets of business partners
• Internet as communications links

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Extranet infrastructure

• Telecommunication systems (VPNs)
• TCP/IP Protocols
• Internet Services
• Intranets infrastructure

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Communications options for Extranets

• Long-distance dial-up access
• Internet access to intranet with security
• Internet access to an external server that
  duplicates part of the intranet data
• Internet access to an external server to forward
  database queries to internal servers

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Types of Extranet

• A company and its dealers, customers, or
  suppliers
• centered around one company
• An industrys extranet (Trading Network)
• teamed up and created by the major players in an
  industry (e.g. the automotive industry)
• Joint ventures and other business partnerships
• used as a vehicle for communications and
  collaboration among several companies partnering
  in a joint venture

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Benefits of Extranets

• Reduce the number help-desk and data-entry
  employees
• Improved quality of data and information exchange
  
• Faster processes and information flow
• Reduce paperwork
• Improved order entry and customer service
• Better communication

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Implementing Interorganizational Information
System

• Security
• protection mechanisms firewalls and VPNs
• Ethical and Societal Issues
• takes a great risk for its trade secrets, the
  privacy of the employees and the controlling of
  some processes
• Planning
• complex IT planning when involving several
  organizations
• several IT planning teams should be created and
  supported by e-mail, extranets,and groupware