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By PG08042 to PG08046
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.
IOS can be categorized into four phases, in terms of historical IS development:
One - Manual systems Phase Two - EDI systems Phase Three - ERP systems Phase Four - Internet-enabled systems
Phase One: Manual Systems
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.
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
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.
Interorganizational Information 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
market in which the goods of one business are used as raw materials or components in the production or sale process of another business
players in the market buy or sell the same products; they are in competition
Vertical information exchange market
of one organization used in processes of another ISs between vertically related organizations highly beneficial
Saves time and money Better serves customers
Vertical information interchange
Horizontal information exchange market
Horizontal Information Interchange
performing similar activities share information
Real estate agencies maintain multiple listing service Financial institutions share financial information Airlines share reservation systems
implications and risks similar to those
Horizontal information interchange
EDI Benefits and its process
Cost savings Speed & accuracy Security System integration Just in time support
How does it work?
1. 2. 3. 4.
5. 6. 7. 8.
Supplier’s proposal sent electronically to purchasing organization Electronic contract approved over network Supplier manufactures and packages goods, attaching shipping data recorded on a bar code Quantities shipped and prices entered in system and flowed to invoicing program; invoices transmitted to purchasing organization Manufacturer ships order Purchasing organization receives packages, scans bar code, and compares data to invoices actual items received Payment approval transferred electronically 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)
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 .
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 worldwide market. Businesses are seeking access to and involvement with the Internet as mandatory.
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
international Web participation
and shipping costs 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 nongovernmental 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
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
Non-uniform information infrastructures Executives concerned about hassle-factor Software can reduce confusion Non-uniform preferred payment method
Regulations and Tariffs
Differences in Payment Mechanisms
Translation delays Laws forbid foreign language accounting and other systems
Varying standards for date format, measurements, etc.
Incompatible data privacy laws in U.S. and Europe
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
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