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)
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.
INTRODUCTION
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
Integrating ISs 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 order6. Purchasing organization receives packages, scans bar code, and
compares data to invoices actual items received7. Payment approval transferred electronically8. Bank transfers funds from purchaser to supplier’s account using
electronic fund transfer (EFT)
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..
Internet Inter-organizational Information Systems and Partner
Relations
Lack of System Standards Resistance from other business partner Resistance from customer Financial Costs Technical maturity of company Technical maturity of trading partner
Significant Barriers for Advanced IOS Model Development
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