Overview of Chapter 9 Section 2

This section highlights Interorganizational Information Systems and Virtual Corporations.

Intergorganizational Information systems (IOS) – involves information flow among two or more organizations. Its Major objectives are efficient processing of transactions, such as transmitting orders, bills, and payments, and to support collaboration and communication.

- Can be Local or Global

- Can be Dedicated to only one activity or intended to support several activities

- Interorganizational systems have developed in direct response to two business pressures:
- the desire to reduce costs
- and the need to improve the effectiveness and timeliness of business partners.

- When IOS’s use telecommunications companies for communication, they may employ Value Added Networks (VANs)
- Value-Added Networks – are private, third-party networks that can be tailored to specific business needs.

Virtual Corporation (VC) – is an organization composed of two or more business partners, in different locations, sharing costs and resources for the purpose of producing a product or service.
- Can be temporary, with one time purpose, or permanent
- The modern VC can be viewed as a network of creative people, resources, and ideas connected via online services and/or the Internet.

Types of Interorganizational Information Systems:

- B2B Trading Systems – These systems are designed to facilitate trading between business partners. The partners can be in the same or different countries.

- B2B Support Systems – These are nontrading systems such as hubs, directories, and other services.

- Global Systems – Global information systems connect two or more companies in two or more countries. The airline reservations system SABRE is an example of a huge global system.

- Electronic funds transfer (EFT) – Telecommunications networks transfer money among financial institutions.

- Groupware – Groupware technologies facilitate communication and collaboration between and among organizations. These include transmission system that can be used to deliver electronic mail and fax documents between organizations.

- Shared databases – Trading partners sometimes share databases and other information in order to reduce time in communicating information between parties and to arrange cooperative activities.

Four Major IOS Infrastructure Technologies:

- Electronic data Interchange (EDI) – The electronic movement of business documents between business partners. EDI runs on VANs, but can be Internet-based, in which case it is known as EDI/Internet.

- Extranets – Extended intranets that link business partners.

- XML – An emerging B2B standard, promoted as a companion or even a replacement for EDI systems

- Web Services – The emerging technology for integrating B2B and intrabusiness applications.