Chapter 9 Interorganizational and Global Information Systems Information

Chapter 9 Interorganizational and Global Information Systems Information Technology For Management 6 th Edition Turban, Leidner, Mc. Lean, Wetherbe Lecture Slides by L. Beaubien, Providence College John Wiley & Sons, Inc. Chapter 9 1

Learning Objectives Define and Classify Interorganizational and virtual organizations information systems l Describe interorgnizational activities, particularly order fulfillment l Define and classify global information systems l Present the major issues surrounding global information systems l Chapter 9 2

Learning Objectives (Continued) l l l Describe Demand-driven networks and RFID as supply chain factors Describe B 2 B exchanges, hubs, and directories Describe Interorganizational integration issues Describe EDI and EDI/Internet Describe extranets, XML and Web services Chapter 9 3

Inter. Organizational Systems (IOS) Functions: l Involves 2 or more organizations l Cooperative information flows l Facilitates efficient processing of transactions Chapter 9 4

Types of IOS l B 2 B trading l B 2 B support systems l Global Systems l EFT l Groupware/Shared Databases Chapter 9 5

IOS activities l On-demand enterprise l On-Demand/Real-time Activities ¡ Buying and Selling ¡ Joint Ventures ¡ Collaboration ¡ Other Chapter 9 6

IOS and Order Fulfillment l Step 1: Making sure the customer will pay l Step 2: Checking for availability l Step 3: Arranging Shipments l Step 4: Insurance l Step 5: Replenishment l Step 6: In-house production l Step 7: Use suppliers l Step 8: Customer contacts l Step 9: Returns Chapter 9 7

IOS Problems l Delays and transportation l Human errors / misunderstanding l Over / Under Inventories l Misdirected Shipments l Late / Incorrect delivery reporting Chapter 9 8

IOS Problems (Continued) l Slow / Incorrect Billing l Difficult / Complex Production l Incompatibility of systems (communication) l High cost of expenditures / shipments Chapter 9 9

Order Fulfillment and Logistics Chapter 9 10

Benefits of Global IS l Effective Communication at reasonable cost l Collaboration: overcoming distance, time, language l Access to larger volumes of data Chapter 9 11

Localization l Branding and Formats l Merchandise and Pricing l Promotions l Vendor, Operating, and Management Policies l Store and Vendor Service levels Chapter 9 12

IOS and the Global audience l Personal and Personnel issues l Language and Culture l Law, Politics, and Convention l Offshoring/Outsourcing and the organization Chapter 9 13

IOS: Demand Driven l Drive the products to market l The bullwhip effect - shifts and information l Demand-driven supply (networks) ¡ The DDSN Chapter 9 14

IOS: Demand DDSN Benefits l Agility l Adaptability l Alignment Chapter 9 15

IOS: Using the RFID Advantage Chapter 9 16

IOS: Using the RFID Advantage (Continued) Chapter 9 17

Integrating Information l l l Establish IT leadership Lowest integration risk possible Customer facing - a priority over back-office Retain personnel ($$$) Keep morale high ($$$) Maintain as rich communication as possible Chapter 9 18

Managerial Issues l l l Selecting a system Partners Collaboration New infrastructure Globalization Using Exchanges, hubs, and other services Partner and supplier relationship management Chapter 9 19

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