INTER ORGANIZATIONAL

AND GLOBAL INFORMATION

SYSTEM.

By PG08042 to
PG08046
 OVERVIEW
 Inter-organizational information system (IOS)
 Introduction.
 IOS development affecting partnership relations.
 Significant Barriers for Advanced IOS Model Development.

 Global Information System (GIS)

 Introduction.
 Internet as Global information System.
 Implementation of GIS.
 Challenges to Global Information Systems.
INTER-ORGANIZATIONAL
INFORMATION SYSTEM
(IOS)
 INTRODUCTION
 An IOS is a collection of IT resources, including
communications networks, hardware, IT applications,
standards for data transmission, and human skills and
experiences.
 It provides a framework for electronic cooperation
between businesses by allowing the processing, sharing
and communication of information.
 IOS are also known as extranets.

 They allow electronic processing of business

transactions and documents, as well as the transfer of
information with minimal effort and makes it quickly
available.
 INTRODUCTION
 IOS can be categorized into four phases, in terms of
historical IS development:
 Phase One - Manual systems
 Phase Two - EDI systems
 Phase Three - ERP systems
 Phase Four - Internet-enabled systems

 Phase One: Manual Systems

 This phase includes paper copies of documents such as
purchase orders, bills and invoices. The information is
processed manually and therefore information
technology and telecommunications do not contribute to
this system.
 INTRODUCTION
 Phase Two: Electronic Data Interchange Systems
 The next phase involved the development of EDI technology in
the 1980’s and this had a dramatic effect on the automation of
heavy data flows and the elimination of many labor intensive
key business processes. Paper documents such as purchase
orders, invoices, bills of lading and shipping slips were replaced
by electronic transmission of the information between
computers

 What is EDI?
 Exchange of electronic data using Interorganizational information
systems
 Set of hardware, software, and standards that accommodate the
EDI process
 INTRODUCTION
 Phase Three: Enterprise Resource Planning Systems
 This phase describes a more integrated information systems
approach. This approach is being taken by companies who view
the integration of systems and information flows as being
essential in providing improved customer satisfaction and cut
operational costs in an increasingly competitive market-place

 Phase Four: Internet-enabled Systems

 The Internet is a worldwide web of computer networks. The
development of the protocol, Transmission Control
Protocol/Internet Protocol (TCP/IP), allows separate networks of
different architectures to work together through open network
architecture.
Contd.,
 Interorganizational Information Systems

 Systems shared by two or more

organizations

 Built and owned by one organization

 Increases efficiency and effectiveness

 Organizations use similar systems to

serve international sites
Sharing of information systems
 Vertical market

A market in which the goods of one business

are used as raw materials or components in
the production or sale process of another
business

 Horizontal market

 All
players in the market buy or sell the
same products; they are in competition
Vertical information exchange market
 Vertically related

 Output of one organization used in

processes of another

 IntegratingISs between vertically related

organizations highly beneficial
 Saves time and money

 Better serves customers

Vertical information interchange
Horizontal information exchange
market
 Horizontal Information Interchange
 Organizations performing similar activities
share information
 Real estate agencies maintain multiple listing
service
 Financial institutions share financial information
 Airlines share reservation systems

 Legal implications and risks similar to those

of EDI
Horizontal information interchange
EDI Benefits and its process
 Cost savings
 Speed & accuracy
 Security
 System integration
 Just in time support

How does it work?

1. Supplier’s proposal sent electronically to purchasing organization
2. Electronic contract approved over network
3. Supplier manufactures and packages goods, attaching shipping data
recorded on a bar code
4. Quantities shipped and prices entered in system and flowed to
invoicing program; invoices transmitted to purchasing organization
5. Manufacturer ships order
6. Purchasing organization receives packages, scans bar code, and
compares data to invoices actual items received
7. Payment approval transferred electronically
8. Bank transfers funds from purchaser to supplier’s account using
electronic fund transfer (EFT)
 Internet Inter-organizational
Information Systems and Partner
Relations

 The Internet can be used to provide a platform for

partnerships in all areas of the supply chain,
whether it is procurement, purchasing, negotiation,
coordination or just information exchange. The
Internet allows two-way communications, unlike EDI
technology, and therefore has much more impact on
partner relations and partnerships..
 Significant Barriers for Advanced IOS Model
Development

 Lack of System Standards

 Resistance from other business partner

 Resistance from customer

 Financial Costs

 Technical maturity of company

 Technical maturity of trading partner

GLOBAL INFORMATION SYSTEM
(GIS)
 Introduction

AN ORGANIZED COLLECTION OF
COMPUTER HARDWARE, COMMUNICATION
EQUIPMENT, SOFTWARE, DATA, AND
PERSONNEL DESIGNED TO CAPTURE,
STORE, UPDATE, MANIPULATE, ANALYZE,
AND IMMEDIATELY DISPLAY INFORMATION
ABOUT WORLDWIDE BUSINESS
ACTIVITIES.
Internet as Global information System
 Today, the Internet is rapidly becoming a global
information system in which all kinds of information
can be accessed from virtually anywhere.
 The increase in Internet use has been influenced by
the commercialization of the Internet, the level of
media coverage, the low cost of access, and easier
interfaces.
 The Internet is considered to be at the leading-edge
technology. There is a growing acceptance that if a
business does not join the Internet very soon, it may
be out of business .
GIS
 The Internet usage is growing at 20% a
month. It provides a new service that has not
previously been available.
 Almost instantaneous communication is
made anywhere in the world and access to a
world-wide information base and a world-
wide market. Businesses are seeking access
to and involvement with the Internet as
mandatory.
Business uses
 Internet Support Services-Building Complete Internet
Solutions. From basic Web Sites to integral database
managment, ISS provides comprehensive Internet solutions
for business
 Sales of Goods and Services – most organization like
amazon ,ebay are preferring online sales to reduce the cost
 Marketing -Internet marketing, also referred to as online
marketing, Internet advertising, or e-marketing, is the
marketing of products or services over the Internet. When
applied to the subset of website-based advertisement
placements, Internet marketing is commonly referred to as
Web advertising (also Webadvertising) and Web marketing .
 Internet marketing is relatively inexpensive when compared
to the ratio of cost against the reach of the target audience.
Companies can reach a wide audience for a small fraction of
traditional advertising budgets. The nature of the medium
allows consumers to research and purchase products and
services at their own convenience. Therefore, businesses
have the advantage of appealing to consumers in a medium
that can bring results quickly.
International Web Commerce Benefits
 Increased revenues
 Increased international Web participation
 Potential Web participation
 Cost savings
 Printing and shipping costs
 Customer service costs
Using the Web for
International Commerce
 The Web is important for both B2B and B2C
commerce

 Opportunities for businesses all over the

world

 Organizations must be sensitive to local

audiences (globalization)
Implementation of GIS
 The Global Information System (GIS) is a
global-coverage, core current strategic
intelligence service for use only by
governments. It is not available to non-
governmental subscribers. GIS represents a
base of more than 150,000 pages of data and
images on 246 countries and territories,
updated daily, along with a constantly-growing
database of special reports on a wide range of
specialist topics and regional studies.
 GIS includes the Defense & Foreign Affairs
Daily intelligence briefing, which is issued five
days a week, and covers current strategic
intelligence issues
Contd.,
 GIS is accessible only through password entry or
computer IP recognition, to ensure maximum privacy. The
system is fully on-line through the Internet, and keyword
searchable.
 .The System is designed to provide a comprehensive
global data system both for governments without
extensive global collection and analysis systems as well
as for analysts in industrialized states seeking
independent, finished intelligence on literally every
country and territory in the world.
 The Global Information System is timely, current —
updated daily throughout the year — strategic
intelligence on literally every country and territory in the
world. The country or territory aspect of the GIS system is
divided into country-specific chapters, each of which
include the following sub-sections
Challenges to Global Information
Systems

 Technological Challenges
 Non-uniform information infrastructures
 Regulations and Tariffs
 Executives concerned about hassle-factor
 Software can reduce confusion
 Differences in Payment Mechanisms
 Non-uniform preferred payment method

 Language Differences

 Translation delays

 Laws forbid foreign language accounting and other systems

Contd.,
 Cultural Differences

 Cultural imperialism

 Different Standards

 Varying standards for date format, measurements,

etc.

 Legal Barriers

 Incompatible data privacy laws in U.S. and Europe

Contd.,

 Conflicting Economic, Scientific, and Security Interests

 Government restriction on sharing sensitive
information
 Varying treatment of trade secrets, patents, and
copyrights

 Political Challenges
 Fear that access to information threatens
sovereignty
 Government pressure to buy only national software